CAPITAL ESTATE<00193> - Results Announcement
Capital Estate Limited announced on 25/04/2006:
(stock code: 00193 )
Year end date: 31/07/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/08/2005 from 01/08/2004
to 31/01/2006 to 31/01/2005
Note ('000 ) ('000 )
Turnover : 47,744 12,431
Profit/(Loss) from Operations : (1,274) 14,000
Finance cost : (283) (244)
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 : (1,582) 13,646
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0018) 0.0806
-Diluted (in dollars) : (0.0018) 0.0779
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (1,582) 13,646
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. 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 on the historical
cost basis except for certain properties and financial instruments, which
are measured at revalued amounts or fair values, as appropriate.
The 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 31st July, 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 1st January, 2005.
The application of the new HKFRSs has resulted in a change in the
presentation of the consolidated income statement, consolidated balance
sheet and the consolidated statement of changes in equity. In particular,
the presentation of minority interests has been changed. The changes in
presentation have been applied retrospectively. 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 or
prior accounting periods are prepared and presented:
(i) HIKFRS 3 "Business Combinations"
(ii) HKAS 32 "Financial Instruments : Disclosure and Presentation"
(iii) HKAS 39 "Financial Instruments : Recognition and Measurement"
(iv) HKFRS 2 "Share-based Payment"
(v) HKAS 40 "Investment Property"
(vi) HKAS Interpretation 21 "Income Taxes - Recovery of Revalued Non-
Depreciable Assets"
2A. SUMMARY OF THE EFFECTS OF THE CHANGES IN ACCOUNTING POLICIES
The effect of changes in the accounting polices described above on the
results for the current and prior period are as follows:
Six months ended
31st January
2006 2005
HK$'000 HK$'000
Decrease in amortisation of goodwill 113 -
Increase in interest on the liability
component of convertible notes (27) (51)
--------- ---------
Decrease in loss (profit) for the
period 86 (51)
========= =========
The cumulative effects of the application of the new HKFRSs as at 31st
July, 2005 and 1st August, 2005 are summarised below:
As at As at
31st July, As at 1st
2005 31st July, August,
(originally 2005 2005
stated) Adjustment (restated) Adjustment (restated)
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Balance sheet items
Impact of HKAS 32
and HKAS 39
Investment in securities
32,986 - 32,986 (32,986) -
Certificate of deposits
- - - 8,932 8,932
Investments held for trading
- - - 24,054 24,054
Convertible note payables
(3,220) 119 (3,101) - (3,101)
------------------------------------------------------------------------
Total effects on assets and liabilities
29,766 119 29,885 - 29,885
========================================================================
Accumulated losses
(116,722) 517 (116,205) - (116,205)
Share premium
52,356 (490) 51,866 - 51,866
Convertible notes equity reserve
- 92 92 - 92
Minority interests
- 1,126 1,126 - 1,126
--------------------------------------------------------------------------
Total effects on equity
(64,366) 1,245 (63,121) - (63,121)
==========================================================================
Minority interests
1,126 (1,126) - - -
==========================================================================
The financial effects of the application of the new HKFRSs to the Group's
equity on 1st August, 2004 are summarised below:
As originally
stated Adjustments As restated
HK$'000 HK$'000 HK$'000
Accumulated losses (122,624) 21 (122,603)
Convertible notes
equity reserve - 166 166
Share premium 19,258 (48) 19,210
Minority interests - 885 885
-------------------------------------------
Total effects in equity (103,366) 1,024 (102,342)
===========================================
Minority interests 885 (885) -
===========================================
3. SEGMENT INFORMATION
Business Segments
An analysis of the Group's turnover and contribution to operating results
by business segments is as follows:
For the six months ended 31st January, 2006
Property Financial Property Estate
rental investment sale agency Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
TURNOVER
External sales
210 44,923 - 2,611 47,744
=================================================================
SEGMENT RESULT
(2,790) 3,833 (5) 74 1,112
=====================================================
Unallocated corporate income 719
Unallocated corporate expenses (3,105)
Finance costs (283)
---------
Loss before taxation (1,557)
=========
For the six months ended 31st January, 2005
Property Financial Property Estate
rental investment sale agency Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
TURNOVER
External sales
234 - 10,050 2,147 12,431
===================================================================
SEGMENT RESULT
(274) 11,550 2,093 323 13,692
======================================================
Unallocated corporate income 469
Unallocated corporate expenses (161)
Finance costs (244)
------------
Profit before taxation 13,756
============
4. (LOSS) EARNINGS PER SHARE
The calculation of the basic and diluted (loss) earnings per share is
based on the following data:
Six months ended
31st January,
2006 2005
HK$'000 HK$'000
(restated)
(Loss) earnings for the purposes
of basic (loss) earnings per share (1,582) 13,646
Effect of dilutive potential ordinary
shares:
Interest on convertible notes 43 63
---------- ---------
(Loss) earnings for the purposes of
diluted (loss) earnings per share (1,539) 13,709
========== =========
Number Number
of shares of shares
Weighted average number of ordinary
shares for the purposes of basic
(loss) earnings per share 866,280,953 169,354,217
Effect of dilutive potential ordinary
shares:
Convertible notes 5,649,411 6,666,844
------------ -------------
Weighted average number of ordinary
shares for the purposes of diluted
(loss) earnings per share 871,930,364 176,021,061
============ ==============
The following table summarises the impact on both basic and diluted
earnings per share as a result of:
Impact on basic (loss) Impact on diluted (loss)
earnings per share earnings per share
Six months ended Six months ended
31st January, 31st January,
2006 2005 2006 2005
HK cents HK cents HK cents HK cents
Figures before
adjustments (0.19) 8.09 (0.19) 7.82
Adjustments
arising from
changes in
accounting
policies
(see note 2) 0.01 (0.03) 0.01 (0.03)
--------------------------------------------------------
Reported/
restated (0.18) 8.06 (0.18) 7.79
========================================================
For the purpose of calculating the basic and diluted (loss) earnings per
share, the weighted average number of ordinary shares for the six months
ended 31st January, 2005 had been adjusted to reflect the share
consolidation in September 2005, the rights issue in October 2005 and the
share subdivision in December 2005.
The computation of diluted (loss) earnings per share did not assume the
exercise of the Company's outstanding share options as the exercise price
of those options was, higher than the average market price of shares
during the six months ended 31st January, 2006 and 2005.
5. INTERIM DIVIDEND
The Board of Directors has resolved not to declare an interim dividend for
the six months ended 31st January, 2006 (six months ended 31st January,
2005: Nil).
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