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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Yinggao Hldgs | LSE:YGH | London | Ordinary Share | GB0003754743 | ORD 0.5P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.75 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMYGH
RNS Number : 5574O
Yinggao Holdings PLC
20 September 2011
20 September 2011
Correction
The following clarifies the "Interim Results" announcement released on 20 September 2011 at 07:00 under RNS number 5326O.
In the Chairman's Statement, where earnings per share are stated as being $HK1.01 in H1 2011 and $HK0.51 in H1 2010, this should actually read as HK$ 1.01cents in H1 2011 and HK$ 0.51cents in H1 2010.
There are no other changes.
The full amended announcement is set out below.
Yinggao Holdings plc
("Yinggao" or the "Company")
Interim Results
The Board of Yinggao announces the unaudited interim results of the Company for the period from 1 January 2011 to 30 June 2011. A copy of these financial statements will also be available on the Company's website www.yinggaoholdings.com.
Enquiries:
Angela Leung Tel: +852 2219 9999 Yinggao Holdings plc www.yinggaoholdings.com Paul Shackleton Tel: +44 (0) 207 776 6550 Daniel Stewart & Company Plc www.danielstewart.co.uk
CHAIRMAN'S STATEMENT
Introduction
I am delighted to report that the Group's performance during the six months to 30 June 2011 has resulted in profits significantly higher than during the same period of prior year. We have deployed our resources to achieve greater efficiency in our core operations including the continuing capital investment in the upgrade of the facilities at our container terminal and in the lease of new barges that will drive the future profitability of the Group. The performance is particularly encouraging given the economic slowdown both in the USA and Europe.
Results
Record revenues for a six month period in the first half of 2011 of HK$276 million, up 76% on the corresponding period in 2010, have resulted in an EBITDA of HK$34 million (H1 2010: HK$21 million). Profit before taxation totalled HK$28 million (H1 2010: HK$14 million) and earnings per share totalled HK$ 1.01cents (H1 2010: HK$ 0.51cents), representing growth of 100% and 98% respectively.
The Group's gross profit increased by 31% to HK$39 million in H1 2011 from HK$30 million in H1 2010. However, the gross profit margin fell to 14% in the first half of 2011 from 19% in the corresponding period in 2010, due to 54% of group revenue being generated from trading of non-ferrous metal, up from 39%. In non-ferrous metal trading, the gross profit margin fell from 5.2% to 1.6%.
The container terminal segment delivered a gross profit margin of 28% compared to 29% in the previous period. The barging services segment's gross profit margin increased from 30% to 34% year-on-year, largely due to increased handling capacity of the barges, coupled with increased income generated from container leasing.
The Group's cash balances stood at HK$ 24 million as at 30 June 2011, compared to HK$6 million as at 30 June 2010. The Group made HK$102 million prepaid lease payments during the first six months of 2011(H1 2010: HK$ nil) which was paid to the owner of our new barges as a deposit payment so as to secure a long term lease as well as a competitive chartering fee. These substantial lease payments resulted in the net cash generated from operation activities of minus HK$3.5 million. However, management took the view that this is a one off expenditure which the board does not consider a long term working capital hurdle to the Group.
Operating Review
Operationally, the Group has performed well in the first half of the year. It has made good progress with its strategy to increase its revenue year on year across all three business segments.
The container terminal reported an increase in the half year both in revenue and throughput of 17% and 19% respectively, compared to the corresponding period last year. We are very pleased to have expanded our customer base in domestic trade, which has alleviated the effect of the slowdown in export trade in China. Despite the continuous growth in revenue of the container terminal, we do not expect its profit margin will grow in parallel as the depreciation cost will increase incrementally due to the installation of the new machinery and equipment.
It was particularly pleasing to see the strong performance of the barging service business during this period. Its revenue continued to grow with an increase of 57% to HK$58 million from HK$37 million in the first half year which accounted for 21% (H1 2010: 24%) of the Group's total revenue. Not only has the operating profit of this business segment itself increased (H1 2011 : HK$16 million vs H1 2010: HK$6.4 million), but its contribution to Group profit increased from 44% to 56% compared to the same period last year. This has provided an incentive to the management to accelerate the strategy of expanding the barging services business so as to maximize shareholders' returns. We are in fact benefiting from the planned operational synergies as the container leasing business provides auxiliary service to our customers in shipping.
During the first six months of 2011, approximately 54% of the Group's revenues were derived from trading of non-ferrous metal. Whilst its profit margin is only 1.3%, its operating profit of HK$1.9 million represented 7% of the total operating profit of the Group. Though management recognises the trading profit margin is relatively low compared to the other two core businesses, the trading platform has proven to be a stimulus to the barging services business as some metal trading customers use our barges for shipment as well.
Prospects
We now place the delivery of strong operating performance at the heart of our strategy for the business, as demonstrated again by these results. Looking into the second half of 2011, the Group will continue to build its business and focus on Yinggao's strengths to achieve its ultimate goal of becoming the industry leader in the barging service business sector in the Pearl River Delta. The size of our "228 TEU" barges has proved to be far more cost effective compared to the common size of "120 TEU" barges used by our competitors in the region. We will continue expanding our fleet with an aim to increase our overall carrying capacity.
As for the Keen Chance Terminal, the board is optimistic on the outlook for growth of the throughput for the years to come. The deployment of the advanced new cargo handling equipment and machinery, coupled with the facility upgrade project, has not only increased the cargo turnover efficiency but also increased the stacking capacity by approximately 20%. In addition, we will adopt a cautious approach by diversifying the customer base so as to address the changing global economy.
The Board would again like to thank all our staff for the commitment, professionalism and loyalty that they have shown during the last six-months of progress. We are looking forward to the future with confidence.
Angela Leung
Chairman
19 September 2011
FINANCIAL HIGHLIGHTS
For the six months ended 30 June 2011
(Expressed in Hong Kong dollars)
(Audited) (Unaudited) Year ended Six months ended 30 June 31 December 2011 2010 2010 HK$'000 HK$'000 HK$'000 Revenue 275,801 156,651 482,016 EBITDA * 33,986 20,947 56,099 Profit for the period/year 23,118 13,085 37,646 Total equity 382,368 321,478 355,620 ======== ======== ===========
*Earnings attributable to owners of the parent before interest, tax, depreciation and amortisation
Condensed consolidated income statement
For the six months ended 30 June 2011
(Expressed in Hong Kong dollars)
(Unaudited) (Audited) Six months ended Year ended 30 June 31 December 2011 2010 2010 Note HK$'000 HK$'000 HK$'000 Revenue 3 275,801 156,651 482,016 Cost of sales (236,705) (126,787) (416,284) ----------- ---------- ------------ Gross profit 39,096 29,864 65,732 Other income 2,590 67 3,290 Administrative expenses (13,089) (15,450) (24,313) ----------- ---------- ------------ Profit from operations 28,597 14,481 44,709 Finance costs (547) (7) (283) ----------- ---------- ------------ Profit before taxation 4 28,050 14,474 44,426 Taxation 5 (4,932) (1,389) (6,780) ----------- ---------- ------------ Profit for the period/year 23,118 13,085 37,646 =========== ========== ============ Attributable to: Owners of the parent 20,052 10,129 29,339 Non-controlling interests 3,066 2,956 8,307 ----------- ---------- ------------ 23,118 13,085 37,646 =========== ========== ============ HK cents HK cents HK cents Earnings per share attributable to owners of the company for the period/year - Basic and diluted 6 1.01 0.51 1.48 =========== ========== ============
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2011
(Expressed in Hong Kong dollars)
(Unaudited) (Audited) Year ended Six months ended 31 30 June December 2011 2010 2010 HK$'000 HK$'000 HK$'000 Profit for the period/year 23,118 13,085 37,646 Other comprehensive income for the period/year Exchange differences arising on translation of foreign operations 3,630 1,458 11,039 ----------- ---------- ----------- Total comprehensive income for the period/year 26,748 14,543 48,685 =========== ========== =========== Attributable to: Owners of the parent 22,252 11,327 36,531 Non-controlling interests 4,496 3,216 12,154 ----------- ---------- ----------- 26,748 14,543 48,685 =========== ========== ===========
Condensed consolidated balance sheet
As at 30 June 2011
(Expressed in Hong Kong dollars)
(Audited) (Unaudited) As at As at 30 June 31 December 2011 2010 2010 Note HK$'000 HK$'000 HK$'000 NON-CURRENT ASSETS Goodwill 14,168 14,168 14,168 Prepaid lease payments 8 95,134 - - Property, plant and equipment 9 310,195 295,105 292,308 ---------- --------- ------------ 419,497 309,273 306,476 ---------- --------- ------------ CURRENT ASSETS Prepaid lease payments 8 7,020 - - Inventories 2,540 1,282 2,078 Trade and other receivables 142,654 99,400 105,761 Cash and cash equivalents 23,943 6,163 32,563 ---------- --------- ------------ 176,157 106,845 140,402 ---------- --------- ------------ CURRENT LIABILITIES Trade and other payables 167,414 71,545 67,361 Obligations under finance leases 8,422 6,758 4,476 Taxation 10,760 8,905 8,051 ---------- --------- ------------ 186,596 87,208 79,888 ---------- --------- ------------ NET CURRENT (LIABILITIES)/ASSETS (10,439) 19,637 60,514 ---------- --------- ------------ TOTAL ASSETS LESS CURRENT LIABILITIES 409,058 328,910 366,990 ---------- --------- ------------ NON-CURRENT LIABILITIES Obligations under finance leases 16,505 1,366 1,289 Loans from fellow investors in subsidiaries 7,050 5,544 6,946 Deferred tax liabilities 3,135 522 3,135 ---------- --------- ------------ 26,690 7,432 11,370 ---------- --------- ------------ NET ASSETS 382,368 321,478 355,620 CAPITAL AND RESERVES Share capital 11 115,224 115,224 115,224 Reserves 172,710 125,254 150,458 ---------- --------- ------------ Total equity attributable to owners of the parent 287,934 240,478 265,682 Non-controlling interests 94,434 81,000 89,938 ---------- --------- ------------ TOTAL EQUITY 382,368 321,478 355,620
Condensed consolidated statement of changes in equity
For the period ended 30 June 2011
(Expressed in Hong Kong dollars)
Attributable to owners of the parent --------------------------------------------------------------------------- (note i) (note Statutory ii) Non- Share Share surplus Merger Exchange Accumulated controlling Total capital premium reserve reserve reserve losses Total interests equity HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Balance at 1 January 2011 (Audited) 115,224 120,942 5,770 201,104 59,448 (236,806) 265,682 89,938 355,620 Comprehensive income Profit for the period - - - - - 20,052 20,052 3,066 23,118 Other comprehensive income Exchange differences arising on translation of foreign operations - - - - 2,200 - 2,200 1,430 3,630 -------- -------- ---------- -------- --------- ------------ -------- ------------ -------- Total comprehensive income for the period - - - - 2,200 20,052 22,252 4,496 26,748 -------- -------- ---------- -------- --------- ------------ -------- ------------ -------- Balance at 30 June 2011 (Unaudited) 115,224 120,942 5,770 201,104 61,648 (216,754) 287,934 94,434 382,368 ======== ======== ========== ======== ========= ============ ======== ============ ======== Balance at 1 January 2010 (Audited) 115,224 120,942 4,349 201,104 52,256 (264,724) 229,151 77,784 306,935 Comprehensive income Profit for the period - - - - - 10,129 10,129 2,956 13,085 Other comprehensive income Exchange differences arising on translation of foreign operations - - - - 1,198 - 1,198 260 1,458 -------- -------- ---------- -------- --------- ------------ -------- ------------ -------- Total comprehensive income for the period - - - - 1,198 10,129 11,327 3,216 14,543 -------- -------- ---------- -------- --------- ------------ -------- ------------ -------- Balance at 30 June 2010 (Unaudited) 115,224 120,942 4,349 201,104 53,454 (254,595) 240,478 81,000 321,478 ======== ======== ========== ======== ========= ============ ======== ============ ======== Attributable to owners of the parent --------------------------------------------------------------------------- (note i) (note Statutory ii) Non- Share Share surplus Merger Exchange Accumulated controlling Total capital premium reserve reserve reserve losses Total interests equity HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Balance at 1 January 2010 (Audited) 115,224 120,942 4,349 201,104 52,256 (264,724) 229,151 77,784 306,935 Comprehensive income Profit for the year - - - - - 29,339 29,339 8,307 37,646 Other comprehensive income Exchange differences arising on translation of foreign operations - - - - 7,192 - 7,192 3,847 11,039 -------- -------- ---------- -------- --------- ------------ -------- ------------ -------- Total comprehensive income for the year - - - - 7,192 29,339 36,531 12,154 48,685 -------- -------- ---------- -------- --------- ------------ -------- ------------ -------- Transactions with owners Transfer of statutory surplus reserve - - 1,421 - - (1,421) - - - -------- -------- ---------- -------- --------- ------------ -------- ------------ -------- Balance at 31 December 2010 (Audited) 115,224 120,942 5,770 201,104 59,448 (236,806) 265,682 89,938 355,620 ======== ======== ========== ======== ========= ============ ======== ============ ========
Notes:
(i) Statutory surplus reserve:
In accordance with the laws of the People's Republic of China (the "PRC") and the Articles of Association of certain of the Company's subsidiaries, directors of these subsidiaries may at their discretion make appropriations to a statutory surplus reserve equivalent to 10% of the subsidiaries' net profits until the balance reached 50% of the registered capital of that subsidiary. Distribution of profits to shareholders can only be made after such appropriations.
The statutory surplus reserve may be used to reduce any losses incurred or be capitalised as paid up capital. The statutory public welfare reserve is not available for distribution.
(ii) The merger reserve represents the difference between the nominal value of shares of the subsidiary company acquired, and the nominal value of the Company's shares issued in exchange in 2002.
Yinggao Holdings plc
Condensed consolidated cash flow statement
For the period ended 30 June 2011
(Expressed in Hong Kong dollars)
(Unaudited) (Audited) Six months ended Year ended 30 June 31 December 2011 2010 2010 HK$'000 HK$'000 HK$'000 Cash flow from operating activities Profit before taxation 28,050 14,474 44,426 Adjustments for : Finance costs 547 7 283 Impairment loss of property, plant and equipment - - 4,588 Depreciation 8,455 9,422 19,697 Loss/(gain) on disposals of property, plant and equipment 705 - (546) Exchange difference (2,574) - (3,744) Operating cash flow before working capital changes 35,183 23,903 64,704 Increase in prepaid lease payments for rentals of vessels (102,154) - - Increase in inventories (462) (82) (878) Increase in trade and other receivables (31,435) (35,757) (35,556) Increase in trade and other payables 97,542 29,095 25,430 ------------- ---------- ----------- Net cash flow (used in)/generated from operations (1,326) 17,159 53,700 Income tax (paid)/refunded (2,223) 439 (3,193) ------------- ---------- ----------- Net cash (used in)/generated from operating activities (3,549) 17,598 50,507 ------------- ---------- ----------- Cash flows from Investing a c tivities Purchases of property, plant and equipment (24,185) (26,305) (40,274) Proceeds from disposals of property, plant and equipment 23,893 - 14,686 ------------- ---------- ----------- Net cash used in investing activities (292) (26,305) (25,588) ------------- ---------- ----------- Cash flows from financing activities Repayments on obligations under finance leases (4,345) (1,849) (9,041) Interest paid (547) (7) (283) ------------- ---------- ----------- Net cash used in financing activities (4,892) (1,856) (9,324) ------------- ---------- ----------- Net (decrease)/ i ncrease in cash and cash equivalents (8,733) (10,563) 15,595 Cash and cash equivalents at the beginning of the period /year 32,563 16,726 16,726 Effect of foreign exchange rate changes 113 - 242 ------------- ---------- ----------- Cash and cash equivalents at the end of the period /year 23,943 6,163 32,563 ============= ========== ===========
Yinggao Holdings plc
Notes to the condensed interim financial statements
For the period ended 30 June 2011
(Expressed in Hong Kong dollars)
1 General information
The Company is a public limited company incorporated and domiciled in the United Kingdom. The registered office of the company is located at 25 Farringdon Street, London, EC4A 4AB. Its principal place of business are in Hong Kong and the People's Republic of China ("PRC").
The principal activities of the Company and its subsidiaries (hereinafter collectively referred to as the "Group") are provision of terminal services, barging services and non-ferrous metal trading.
The Company's shares were admitted to trading on the AIM Market of the London Stock Exchange. These condensed consolidated interim financial statements are presented in Hong Kong dollars ("HK$"), unless otherwise stated, and were reviewed by the Audit Committee and approved for issue by the Board of Directors on 19 September 2011.
2 Summary of significant accounting policies
(a) Basis of preparation and statement of compliance
The Company has a financial year end date of 31 December. These condensed consolidated interim financial statements for the six months ended 30 June 2011 have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting". These condensed consolidated interim financial statements should be read in conjunction with the annual audited financial statements of the Group for the year ended 31 December 2010, which have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted for use in the European Union ("EU").
EU-endorsed IFRSs may differ from IFRSs, as issued by the International Accounting Standards' Board("IASB") if, at any point in time, new or amended IFRSs have not been endorsed by the EU. At 30 June 2011, there were no unendorsed standards effective for the period ended 30 June 2011 affecting these condensed consolidated interim financial statements, and there was no difference between IFRSs endorsed by the EU and IFRSs issued by the IASB in terms of their application to YinggaoHoldings plc.
(b) Impact of recently issued IFRSs
The IASB has issued a number of amendments to IFRSs, new standards and interpretations that are first effective for the current accounting period of the Group. Of these, the following developments are relevant to the Group's financial statements:
-- Revised IAS 24, Related Party Disclosures
-- Improvements to HKFRSs (2010)
The above amendments to IFRSs have had no material impact on the Group's results of operations and financial position, and do not contain any additional disclosure requirements specifically applicable to the interim financial statements.
Up to the date of issue of this interim financial statements, the IASB has issued a number of amendments, new standards and Interpretations that are not yet effective for the period ending 30 June 2011 and that have not been early adopted in the interim financial statements. Of these developments, the followings may be relevant to the Group's financial statements:
Effective for accounting periods beginning on or after -- IAS 27 (2011), Separate Financial Statements 1 January 2013 (as amended in 2011) -- Amendments to IAS 1, Presentation of Items 1 July 2012 of Other Comprehensive Income -- Amendments to IAS 12, Deferred Tax: Recovery 1 January 2012 of Underlying Assets -- IFRS 9, Financial Instruments 1 January 2013 -- IFRS 10, Consolidated Financial Statements 1 January 2013 -- IFRS 13, Fair Value Measurement 1 January 2013
The Group is in the process of assessing the impact of these amendments, new standards and interpretations in the period of initial application, but is not yet in a position to determine whether the adoption will have any significant impact on the Group's results of operations and financial position.
(c) Use of estimates and assumptions
The preparation of financial statements requires the use of estimates and assumptions about future conditions. The use of available information and the application of judgement are inherent in the formation of estimates. Actual results in the future may differ from those reported as a result of the use of estimates and assumptions about future conditions. Management believes that the company's critical accounting estimates involving a higher degree of judgement or complexity with those assumptions and estimates mainly relate to the impairment of loans and advances, the goodwill impairment and the valuation of financial instruments.
(d) Consolidation
The condensed consolidated interim financial statements of Yinggao Holdings plc comprise the financial statements of the Company and its subsidiaries.
3 Revenue and segment reporting
The principal activities of the Group are provision of terminal services, barging services and non-ferrous metal trading together with other related services including sea freight forwarding and barge hire.
The Group determines its operating segments based on information reported to the chief operating decision maker, which is focused on the category of customer for each type of goods and services. The principal categories of customers for these goods and services are terminal services, barging services and non-ferrous metal trading.
Information regarding the above segments is reported below:
Non-ferrous metal Terminal Services Barging Services trading Other trading Unallocated Total For the six months ended 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 (Unaudited) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Revenue from external customers 68,595 58,729 58,306 37,088 148,900 60,834 - - - - 275,801 156,651 ============ ========== ============ ========== ============ ============ ============ ========== ============ ============ ============ ========== Reportable segment revenue 68,595 58,729 58,306 37,088 148,900 60,834 - - - - 275,801 156,651 ============ ========== ============ ========== ============ ============ ============ ========== ============ ============ ============ ========== Reportable segment profit/(loss) 13,259 11,740 15,934 6,375 1,941 3,168 (607) (492) (1,930) (6,310) 28,597 14,481 Finance costs (545) - (2) (7) - - - - - - (547) (7) Taxation (1,882) (1,389) (2,341) - (320) - - - (389) - (4,932) (1,389) ------------ ---------- ------------ ---------- ------------ ------------ ------------ ---------- ------------ ------------ ------------ ---------- 10,832 10,351 13,591 6,368 1,621 3,168 (607) (492) (2,319) (6,310) 23,118 13,085 ============ ========== ============ ========== ============ ============ ============ ========== ============ ============ ============ ========== (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited) 31 31 31 31 30 June December 30 June December 30 June 31 December 30 June December 30 June 31 December 30 June December As at the period/year ended 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Reportable segment assets 392,350 354,812 139,598 58,041 56,506 22,090 363 448 6,837 11,487 595,654 446,8788 ============ ========== ============ ========== ============ ============ ============ ========== ============ ============ ============ ==========
4 Profit before taxation
Profit before taxation is stated after charging/(crediting):
(Unaudited) (Audited) Six months ended Year ended 30 June 31 December 2011 2010 2010 HK$'000 HK$'000 HK$'000 Depreciation on property, plant and equipment 8,455 9,422 19,697 Impairment loss of property, plant and equipment - - 4,588 Loss/(gain) on disposal of property, plant and equipment 705 - (546) ============ =========== ===========
5 Taxation
The amount of income tax expense charged to the consolidated income statement represents:
(Unaudited) (Audited) Six months ended Year ended 30 June 31 December 2011 2010 2010 HK$'000 HK$'000 HK$'000 Current tax: - Hong Kong profits tax 3,050 - 691 - Overseas tax for the period/year 1,882 1,389 3,476 ----------- ---------- ----------- 4,932 1,389 4,167 ----------- ---------- ----------- Deferred tax: - current year - - 2,386 - pervious years - - 227 ----------- ---------- ----------- - - 2,613 ----------- ---------- ----------- 4,932 1,389 6,780 =========== ========== ===========
In respect of subsidiaries operating in Hong Kong, the provision for Hong Kong profits tax is calculated at 16.5% of the estimated assessable profit for the period/year less allowable losses brought forward.
Subsidiaries operating in the PRC are subject to Enterprise Income Tax ("EIT") at a rate of 25%. However, the Company's subsidiary in Guangzhou is now subject to a preferential tax rate of 24% as described below. Others had tax losses brought forward from previous years.
On 16 March 2007, the National People's Congress passed the Corporate Income Tax Law of the PRC (the "Tax Law"). Under the Tax Law, the EIT tax rate applicable to the Company's subsidiary in Guangzhou is increased from 15% to 25% progressively within five years from 1 January 2008 (2008: 18%; 2009: 20% 2010: 22%; 2011: 24%; 2012: 25%). The Tax Law has been applied when measuring the Group's current tax payable as at 30 June 2011.
6 Earnings per share
Basic and diluted earnings per share are calculated by dividing the earnings attributable to owners of the parent by the weighted average number of ordinary shares in issue during the period/year ended 30 June 2011, 30 June 2010 and 31 December 2010, respectively.
(Unaudited) (Audited) Six months ended Year ended 30 June 31 December 2011 2010 2010 Profit attributable to owners of the parent (HK$'000) 20,052 10,129 29,339 Weighted average number of shares in issue 1,978,895,139 1,978,895,139 1,978,895,139 Earnings per share - Basic and diluted (HK cents) 1.01 0.51 1.48 ============= ============= =============
7 Dividend
The directors do not recommend the payment of any dividend.(six months ended 30 June 2010: HK$Nil)
8 Prepaid lease payments
Prepaid lease payments represented a lump sum operating lease prepayments for a number of vessels used by the Group for barging services in the coming 15 years.
9 Property, plant and equipment
During the period, the Group purchased property, plant and equipment amounted to HK$47,605,000 (six months ended 30 June 2010: HK$26,305,000), in which HK$23,420,000 (six months ended 30 June 2010: HK$Nil) was acquired under finance leases.
In addition, the Group disposed of certain property, plant and equipment with carrying value of HK$24,598,000 (six months ended 30 June 2010: HK$Nil) for cash proceeds of HK$23,893,000 (six months ended 30 June 2010: HK$Nil).
10 Investments in subsidiaries
At 30 June 2011, the Company held 100% of the ordinary shares of Yinggao Investments Limited, a company incorporated in the British Virgin Islands ("BVI"), whose principal activity was that of, an investment holding company. Yinggao Investments Limited had the following subsidiaries' undertakings:
Equity interests attributable Place of Name to the Group Principal activities incorporation 2011 2010 Yinggao Providing Consultants management Limited * 100% 100% services BVI Yinggao International Investment Limited 100% 100% holding BVI Sub-letting of Sanko Mineral yachts, ships Limited 100% 100% and vessels BVI Providing Yinggao Shipping logistics and (H.K.) Limited 100% 100% related services Hong Kong Providing Yinggao Shipping logistics and Limited * 100% 100% related services Hong Kong Yinggao Ship Chartering Barge hiring and Limited 100% 100% agency services Hong Kong Trading of Yinggao Resources non-ferrous Limited 100% 100% metal Hong Kong Yinggao Petro Trading of gas Limited 100% 100% oil for vessels Hong Kong Yinggao Ship Investments Limited 100% 100% Dormant Hong Kong Arko Terminal Republic Limited ("ATL") Investment of * 100% 100% holding Seychelles Investing in and operation of a Keen Chance terminal and Terminal (GZ) providing Company Limited logistics ("KCT") 40% 40% services PRC Fujian Sanko Mining Limited 70% 70% Dormant PRC
* Directly held by Yinggao Investments Limited. All other subsidiaries are indirectly held.
The 40% equity interest in KCT previously held by Keen Lloyd Energy Limited ("KLEL"), a subsidiary of Keen Lloyd Holdings Limited ("KLHL"), has been transferred to ATL. The transfer had been submitted for registration to the relevant PRC authorities.
Pursuant to an agreement dated 5 April 2002 entered into between KLEL and Miaotou Economic Development (GZ) Company Limited ("MEDCL"), (a shareholder of KCT which held a 30% equity interest in KCT), MEDCL agreed to vote in accordance with the instructions of KLEL at board meetings in view of its indebtedness to KLEL, for an approximate sum of RMB78 million (equivalent to HK$72.6 million at that time), and KLEL intended to convert the outstanding loan into registered capital of KCT.
On 22 April 2003, KLEL entered into a shareholder agreement with MEDCL and Harbour Economic Development Company Limited ("HEDCL"), another shareholder in KCT, whereby all parties agreed that MEDCL has unconditionally transferred the authority empowered to its directors representative (including their rights and obligations) to KLEL until KLEL transferred the 40% equity interests in KCT to ATL to reiterate the aforesaid agreement dated 5 April 2002.
On 16 May 2003, a supplemental agreement was entered into between ATL, KLEL, MEDCL and HEDCL by which all parties agreed that the above authority transferred to KLEL would be vested in ATL after KLEL completed the transfer of equity interests in KCT to ATL.
In accordance with the terms and conditions set out in the above agreements, KLEL effectively controls the board of KCT and this arrangement has been confirmed by the shareholders of KCT. In 2002, a Hong Kong lawyer expressed his view that KCT is a subsidiary of KLEL under Hong Kong Company Law. Control of KLEL has been transferred to ATL and therefore in the opinion of the directors, KCT is a subsidiary of ATL under the Companies Act 2006.
KCT will be a legal subsidiary of ATL immediately upon the registration of the transfer of the 40% of equity in KCT from KLEL to ATL.
11 Share capital
Number GBP'000 Authorised: Ordinary shares of 0.5p each At 30 June 2011, 30 June 2010 and 31 December 2010 30,000,000,000 150,000 ============== ========= HK$'000 Equivalent to: 2,049,315 ========= HK$'000 Allotted, called up and fully paid: Ordinary shares of 0.5p each At 30 June 2011, 30 June 2010 and 31 December 2010 1,978,895,139 115,224 ============== =========
12 Operating lease commitments
At 30 June 2011, the Group's total future minimum lease payments under non-cancellable operating leases are repayable as follows:
(Unaudited) (Audited) As at As at 30 June 31 December 2011 2010 2010 HK$'000 HK$'000 HK$'000 Leases which expire: - in the next year 5,163 4,078 1,714 - in the second to fifth years 37,683 2,321 1,393 - over five years 69,695 - - --------- --------- ----------- 112,541 6,399 3,107 ========= ========= ===========
The Group is the leasee in respect of a number of properties and vessels held under operating leases. The leases typically run for an initial period of 1 to 15 years, at the end of which period all terms are renegotiated. None of the leases includes contingent rentals.
13 Capital commitments
The Group's capital commitments outstanding at 30 June 2011 in respect of the acquisition of property, plant and equipment in the interim financial statements are as follows:
(Unaudited) (Audited) As at As at 30 June 31 December 2011 2010 2010 HK$'000 HK$'000 HK$'000 Contracted, but not provided for 38,719 14,640 61,751 ========= ========= ===========
14 Contingent liabilities
On 9 November 1999, KCT gave a guarantee for RMB18 million (equivalent to approximately HK$16.2 million at that time) in favour of Nangang Rural Credit Co-operation Bank for banking facilities granted to MEDCL, a fellow investor in KCT, secured over its equity interests in KCT. MEDCL was unable to repay the outstanding loan.
On 27 September 2001, the Guangzhou Law Court delivered an order and notice that the guarantee above was invalid and MEDCL's equity interest in KCT was frozen.
Based on legal advice, the equity interests had no material impact on the operations of KCT and the directors consider that no provision is required.
KCT maintains that the guarantee given was invalid on the following grounds:
(i) such guarantee did not have approval from the board of directors of KCT; and
(ii) in accordance with the law of the People's Republic of China , the board of directors and the management of KCT cannot give KCT's properties for guarantee to its shareholder.
Furthermore, KLHL, the Company's parent company, has indemnified the Group against any loss KCT will suffer should the guarantee be enforceable.
Accordingly, the directors are of the opinion that no provision should be made in the financial statements for any possible claim from the bank in respect of the litigation.
Save as disclosed above, the Group does not have any material contingent liabilities as at balance sheet date.
15 Related party transactions
The Group had the following material transactions which are carried out in ordinary course of business activities with related parties during the period/year:
(Unaudited) (Audited) Six months ended Year ended 30 June 31 December 2011 2010 2010 Nature HK$'000 HK$'000 HK$'000 Purchase of goods by the Group - - 148,488 Forwarding services income received by the Group 6,939 - 2,499 Lifting charges received by the Group 600 - 1,200 Handling fee received by the Group 2 - -
16 Financial statements
This statement does not comprise full financial statements within the meaning of Section 434 of the Companies Act 2006.
17 Financial risk management
All aspects of the Group's financial risk management objectives and policies are consistent with those disclosed in the annual financial statement for the year ended 31 December 2010.
This information is provided by RNS
The company news service from the London Stock Exchange
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