irasia.com - Wing Shan International Limited

WING SHAN INTERNATIONAL LIMITED
(Incorporated in Hong Kong under the Companies Ordinance)

ANNOUNCEMENT OF INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 1999

Summary of Results

The Directors of Wing Shan International Limited (the "Company") are pleased to announce that the unaudited consolidated interim results of the Company and its subsidiaries (together as the "Group") for the six months ended 30 June 1999 together with comparative figures for the previous corresponding period are as follows:

                                Six months ended 30 June
                                     1999        1998
                        Notes     HK$'000     HK$'000

Turnover                          341,083     224,502
                                =========   =========
Operating profit before
  exceptional item                 58,669      37,701
Exceptional item          1             -       3,420
                                ---------   ---------
Profit before taxation             58,669      41,121
Taxation                  2        (6,423)     (5,358)
                                ---------   ---------
Profit after taxation              52,246      35,763
Minority interests                (14,509)     (8,552)
                                ---------   ---------
Profit attributable to 
  shareholders                     37,737      27,211
                                =========   =========
Interim dividend                   12,435      12,435
                                =========   =========
Earnings per share        3     4.6 cents   4.2 cents
                                =========   =========

Notes:

1. Exceptional item

Exceptional item represented gain on disposal of subsidiaries.

2. Taxation

No provision has been made for Hong Kong profits tax as the Group sustained losses for taxation purposes during the period. The tax charge represents provision for the People's Republic of China income tax at 7.5% on the estimated assessable profits of (Foshan Shakou Power Plant Co., Ltd.) ("Shakou JV") for the period.

3. Earnings per share

The calculation of earnings per share is based on the profit attributable to shareholders of HK$37,737,000 (1998: HK$27,211,000) and on the weighted average number of 829,018,244 (1998: 648,023,769) shares in issue during the period.

Interim Dividend

The Directors have declared an interim dividend of 1.5 cents (1998: 1.5 cents) per share for the six months ended 30 June 1999 payable on or about 29 October 1999 to shareholders whose names appear on the Register of Members on 8 October 1999.

Closure of Register of Members

The Register of Members of the Company will be closed from 5 October 1999 to 8 October 1999, both days inclusive, during which period no transfer of shares will be effected. In order to qualify for the interim dividend, all duly completed transfer forms accompanied by the relevant share certificates must be lodged with the Company's Registrars, Central Registration Hong Kong Limited, at Shops 1712-6, 17th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong for registration not later than 4:00 p.m. on 4 October 1999.

Interim Results

The Group's turnover increased markedly by 51.9% to HK$341.1 million (1998: HK$224.5 million). Profit attributable to shareholders increased by 38.7% to HK$37.7 million (1998: HK$27.2 million which included an HK$3.4 million exceptional item of profit on disposal of subsidiaries). Earnings per share improved by 9.5% to 4.6 cents (1998: 4.2 cents).

Business Review

The Group increased its electricity sales by 52.5% to 709 million kilowatt-hours ("kwh") (1998: 465 million kwh), mainly due to the less than three months post-acquisition contribution of Shakou JV the previous corresponding period.
On a full six months basis, Shakou JV's electricity sales grew by 18% mainly due to the electricity consumption growth of Foshan City and the market share expansion of Shakou JV.
Average plant utilization rate of Shakou JV was approximately 53% (1998: 46%).
Shakou JV's operating profit margin improved mainly as a result of lower fuel cost.
Despite the increased (1) interest expenses of HK$40.3 million (1998: HK$22.5 million); (2) depreciation charges of HK$36.4 million (1998: HK$23.2 million); and (3) goodwill amortization of HK$15.8 million (1998: HK$6.6 million), the Group's operating profit margin before exceptional item and taxation was sustained at approximately 17%.

Prospects

Looking into the second half of the year, operating environment is expected to remain challenging. The Directors will endeavour their best efforts to further promote the Group's business.

Year 2000 ( "Y2K") Computer Problem

The Company has reported details of its Y2K program in its 1998 interim report and annual report. The Y2K issue will have no significant impact on the Group's major production and operation systems although there may be problems with certain computer-based control and information systems. In respect of the total aggregate cost of the Group's Y2K program, as at 30 June 1999, the Group has incurred approximately HK$0.6 million which has been provided for in its financial statements. Up to the present, the Group has already completed final modification and testing of all its major computer-based systems except for certain minor issues final completion of which is expected to be September 1999. As at 30 June 1999, in respect of the Y2K modification cost, there was no commitment which has been authorized by the Directors and contracted for but has not been provided for in the financial statements. There was also no commitment which has been authorized by the Directors but not yet contracted for.

Purchase, Sale or Redemption of Company's Listed Securities

During the period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities.

By Order of the Board
Yip Siu Chun
Chairman

Hong Kong, 2 September 1999

Source:Wing Shan International Limited

Interim Reports

Company's Index

irasia.com

DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any information provided on this website. Under no circumstances shall irasia.com Ltd be liable for damages resulting from the use of the information provided on this website.
TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited.
TERMS OF USE: Please read the Terms of Use governing the use of our website.