(Six months ended 30th June, 2000)
SALES PERFORMANCE AND PROJECT PROGRESSES
|THE GROUP'S SALES PERFORMANCE|
The breakdown of property sales for the period under review is as follows:
Sales/ Contracted sales Pre-sale GFA (RMB million) ('000 sq.m.) Gallopade Park 255 45 Regal Court 181 22 Huajing New City 90 16 Fairview Garden 55 10 Others 1 1 Total 582 94
The Board of Directors of Hopson Development Holdings Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30th June, 2000 with comparative figures for the corresponding period last year as set out below:
For the six months ended 30th June 2000 1999 Notes HK$'000 HK$'000 Note (4) Turnover (1) 519,770 625,997 Cost of sales (329,077) (340,094) --------- --------- Gross profit 190,693 285,903 Other revenue 1,096 716 Selling and distribution expenses (33,568) (29,299) General and administrative expenses (16,273) (15,668) --------- --------- Profit from operations 141,948 241,652 Finance income, net 3,638 4,358 --------- --------- Profit before taxation 145,586 246,010 Taxation (2) (51,562) (122,974) --------- --------- Profit after taxation 94,024 123,036 Minority interests (4,060) (4,926) --------- --------- Profit attributable to shareholders 89,964 118,110 ========= ========= Earnings per share (3) -Basic 9 cents 12 cents -Diluted 9 cents 12 cents
Turnover comprised (1) pre-sale of properties under development for sale, which is recognised over the entire period of construction in respect of properties under development for sale, the pre-sale activities and construction work of which have progressed to a stage when the ultimate realisation of profit can be reasonably determined. Business taxes are levied at 5% of gross turnover and the turnover figure shown on the consolidated income statement is presented net of business taxes. The total estimated profit is apportioned over the entire period of construction to reflect the progress of the development. On this basis, profit recognised on the pre-sold portion of the properties is calculated by reference to the proportion of construction costs incurred at the end of the period to the estimated total construction costs on completion with due allowance for contingencies. The profit so recognised is restricted to the amount of instalments received; (2) sale of completed properties held for sale which is recognised upon completion of sale and purchase agreement. The profit recognised is restricted to the amount of instalments received; (3) rental income which is recognised when rental is received or receivable; and (4) property management income which is recognised when services are rendered.
Taxation comprised (i) provisions for Hong Kong profits tax at the rate of 16% (1999:16%) and overseas taxation at the applicable rates prevailing in the countries of operation on the profits of companies within the Group for financial reporting purposes, adjusted for income and expenses items which are not assessable or deductible for taxation purposes, (ii) provision for deferred taxation, at the current tax rate, in respect of significant timing differences arising from the use of different bases of recognition of revenues and expenses for financial reporting and tax purposes, and (iii) land appreciation tax is levied at progressive rates ranging from 30% to 60% on the balance of the proceeds received on transfer of real properties after deducting certain deductible items including consideration paid for acquisition of land use rights, land development costs incurred, construction costs spent for new buildings and facilities on the land or the assessed value of old buildings and facilities on the land and taxes paid in relation to the transfer of real properties. In December, 1999, the National Tax Bureau granted a tax ruling to the Group to extend the land appreciation tax exemption period up to 31st December, 2000 regarding development projects registered before 1st January, 1994.
(3) Earnings per share
The calculation of the basic earnings per share was based on the unaudited consolidated profit attributable to shareholders for the six months ended 30th June, 2000 of approximately HK$89,964,000 (1999: profit of HK$118,110,000) and the weighted average number of 1,000,000,000 shares (1999: 1,000,000,000 shares) in issue during the period.
The calculation of the diluted earnings per share was based on the unaudited consolidated profit attributable to shareholders for the six months ended 30th June, 2000 of approximately HK$89,964,000 (1999: profit of HK$118,110,000) and the diluted weighted average number of approximately 1,000,629,941 shares (1999: 1,000,153,776 shares) during the period. It has been calculated after taking into account of outstanding share options as of 30th June, 2000. The effect of the dilutive potential ordinary shares resulting from the outstanding share options on the weighted average number of shares in issue during the period was 629,941 shares (1999: 153,776 shares), which were deemed to be issued at no consideration if all outstanding share options have been exercised, on the date when the options were granted.
(4) Comparative figures
Certain of the 1999 comparative figures have been reclassified to conform to the current period's presentation. In particular, the comparative figures have been adjusted or expanded to take into account Statement 2.101 of Statement of Standard Accounting Practice "Presentation of Financial Statements" issued by the Hong Kong Society of Accountants, which became effective during the second half of the year ended 31st December, 1999.
The Board of Directors has declared an interim dividend of HK$0.01 per share for the six months ended 30th June, 2000 to be paid to shareholders whose names appear on the register of members of the Company at the close of business on 27th October, 2000. The relevant dividend warrants will be despatched to shareholders on 22nd November, 2000.
CLOSURE OF REGISTER OF MEMBERS
The register of members of the Company will be closed from 20th October, 2000 to 27th October, 2000, both days inclusive, during which period no transfer of shares will be registered. In order to qualify for the interim dividend, all transfer documents accompanied by the relevant share certificates must be lodged with the Company's Hong Kong share registrars, Central Registration Hong Kong Limited, Shops 1712-1716, Hopewell Centre, 183 Queen's Road East, Hong Kong not later than 4:00 p.m. on 19th October, 2000.
The Company's Audit Committee consisting all of the three Independent Non-executive Directors has reviewed with management the accounting principles and practices adopted by the Group and internal control and financial reporting matters, including review of the unaudited financial statements for the six months ended 30th June, 2000.
YEAR 2000 ISSUE
The Group's computer systems entered into the new millennium satisfactorily. The Directors believe that the year 2000 related problems will have no material impact on the operations of the Group.
CODE OF BEST PRACTICE
None of the Directors is aware of any information which would reasonably indicate that the Company is not, or was not for any part of the six months ended 30th June, 2000, in compliance with the Code of Best Practice as set out in Appendix 14 of The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited except that the Independent Non-executive Directors are not appointed for a specific term. However, all Directors save the Chairman, Deputy Chairmen, and Managing Director are subject to retirement by rotation and re-election at annual general meeting in accordance with the Bye-Laws of the Company.
PURCHASE, REDEMPTION AND SALE OF THE COMPANY'S LISTED SECURITIES
Neither the Company nor any of its subsidiaries has purchased, redeemed or sold any of the Company's listed securities during the six months ended 30th June, 2000.
By Order of the Board
Chu Mang Yee
Hong Kong, 25th September, 2000
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