ASIA ALLIANCE<00616> - Results Announcement
Asia Alliance Holdings Limited announced on 01/12/2005:
(stock code: 00616 )
Year end date: 31/03/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/04/2005 from 01/04/2004
to 30/09/2005 to 30/09/2004
Note ('000 ) ('000 )
Turnover 3 : 26,858 21,981
Profit/(Loss) from Operations 3,4 : (17,623) (2,678)
Finance cost : (1,253) (138)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (18,876) 6,226
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) 5 : (0.37) 0.18
-Diluted (in dollars) 5 : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (18,876) 6,226
Interim Dividend : NIL NIL
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. GENERAL AND BASIS OF PREPARATION
The condensed financial statements have been prepared in accordance with
the applicable disclosure requirements of Appendix 16 to the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited and with Hong Kong Accounting Standard 34 "Interim Financial
Reporting" issued by the Hong Kong Institute of Certified Public
Accountants (the "HKICPA").
2. PRINCIPAL ACCOUNTING POLICIES
The condensed financial statements have been prepared under the historical
cost convention.
The principal accounting policies used in the condensed financial
statements are consistent with those followed in the preparation of the
Group's annual financial statements for the year ended 31 March 2005
except as described below.
In the current period, the Group has applied, for the first time, a number
of new Hong Kong Financial Reporting Standards ("HKFRS(s)"), Hong Kong
Accounting Standards ("HKAS(s)") and Interpretations (hereinafter
collectively referred to as "new HKFRSs") issued by the HKICPA that are
effective for accounting periods beginning on or after 1 January 2005
except for HKFRS 3 "Business Combinations", which is applicable for
business combinations for which the agreement date is on or after 1
January 2005. The adoption of the new HKFRSs has resulted in changes to
the Group's accounting policies in the following areas that have an effect
on how the results for the current accounting period are prepared and
presented.
Business combinations
In the current period, the Group has applied the transitional provisions
of HKFRS 3 "Business Combinations" to goodwill arising on business
combinations for which the agreement date was before 1 January 2005. The
principal effects of the application of the transitional provisions of
HKFRS 3 to the Group are summarised below:
Goodwill
In previous periods, goodwill arising on business combinations for which
the agreement date was before 1 January 2005 was capitalised and amortised
over its estimated useful life. With respect to goodwill arising on
business combinations for which the agreement date was before 1 January
2005 and previously capitalised on the balance sheet, the Group has
discontinued amortising such goodwill from 1 April 2005 onwards and
goodwill will be tested for impairment at least annually. Goodwill
arising on business combinations for which the agreement date is on or
after 1 January 2005 is measured at cost less accumulated impairment
losses (if any) after initial recognition. As a result of this change in
accounting policy, no amortisation of goodwill has been charged in the
current period. This change in accounting policy has resulted in a
decrease in loss for the current period of approximately HK$1,152,000
other than the impairment loss recognised in respect of goodwill of
approximately HK$12,445,000. Comparative figures for 2004 have not been
restated.
Share-based payments
In the current period, the Group has applied HKFRS 2 "Share-based Payment
", which requires an expense to be recognised where the Group buys goods
or obtains services in exchange for shares or rights over shares ("equity
-settled transactions"), or in exchange for other assets equivalent in
value to a given number of shares or rights over shares ("cash-settled
transactions"). The principal impact of HKFRS 2 on the Group is in
relation to the expensing of the fair value of directors' and employees'
share options of the Company determined at the date of grant of the share
options over the vesting period. Prior to the application of HKFRS 2, the
Group did not recognise the financial effect of these share options until
they were exercised. As all share options of the Group were granted
before 7 November 2002 and the Group did not have share options granted
after 7 November 2002, there is no financial effect on the loss or profit
for the current or prior accounting periods.
Owner-occupied leasehold interests in land
In the current period, the Group has applied HKAS 17 "Leases". Under HKAS
17, the leasehold interests in land are reclassified to prepaid lease
payments under operating leases, which are carried at cost and amortised
over the lease term on a straight line basis.
3. SEGMENT INFORMATION
The Group's primary format for reporting segment information is business
segments. For management purposes, the Group is currently organised into
two main operating divisions - bleaching and dyeing and knitting. These
divisions are the bases on which the Group reports its primary segment
information. The divisions of wireless communication business and
communication solutions consultancy services were discontinued by the
management in view of the inactiveness of the relevant businesses during
the period. The discontinued operations during the period did not have
any significant impact on the results of the Group for the current and
prior accounting periods.
For the six months ended 30 September 2005
Bleaching
and
dyeing Knitting Eliminations Consolidated
HK$'000 HK$'000 HK$'000 HK$'000
Turnover
External 26,707 151 - 26,858
Inter-segment - 2,157 (2,157) -
--------------------------------------------------------------------
Total 26,707 2,308 (2,157) 26,858
======================================================================
Segment result (487) (1,091) - (1,578)
================================================
Interest income 90
Impairment loss recognised in respect
of goodwill (12,445) (12,445)
Unallocated corporate expenses (3,690)
---------
Loss from operations (17,623)
==========
For the six months ended 30 September 2004
Continuing operations Discontinued operations
----------------------- -------------------------------
Communication
Bleaching Wireless solutions
and communication consultancy
dyeing Knitting business services Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Turnover
20,892 1,089 - - 21,981
========================================================================
Segment result
1,176 (2,169) 70 (11) (934)
=====================================================
Interest income 3
Unallocated corporate
expenses (1,747)
---------
Loss from operations (2,678)
==========
4. LOSS FROM OPERATIONS including the following:
1.4.2005 1.4.2004
to to
30.9.2005 30.9.2004
HK$'000 HK$'000
Impairment loss recognised in respect of
goodwill (12,445) -
-----------------------
5. BASIC (LOSS) EARNINGS PER SHARE
The calculation of the basic (loss) earnings per share is based on the
following data:
1.4.2005 1.4.2004
to to
30.9.2005 30.9.2004
HK$'000 HK$'000
(Loss) profit for the purposes of basic (loss) earnings
per share (18,876) 6,226
==========================
1.4.2005 1.4.2004
to to
30.9.2005 30.9.2004
Number of shares
Weighted average number of shares for the
purposes of basic (loss) earnings per share
50,529,148 34,886,708
============================
The denominator for the purposes of calculating basic earnings per share
for the six months ended 30 September 2004 has been adjusted to reflect
the consolidation of shares on the basis that ten shares were consolidated
into one share and the rights issue of shares in September 2005.
No diluted loss per share has been presented for the six months ended 30
September 2005 as the exercise of the Company's outstanding share options
would reduce the loss per share for the period.
No diluted earnings per share was presented for the six months ended 30
September 2004 as the exercise prices of the Company's outstanding share
options were higher than the average market price for that period.
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