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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 |
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TIDMYGH
RNS Number : 2956T
Yinggao Holdings PLC
24 September 2010
YINGGAO HOLDINGS PLC
("the Company" or "Yinggao")
INTERIM RESULTS
The Board of Yinggao announces the unaudited interim results of the Company for
the period from 1 January 2010 to 30 June 2010. A copy of these financial
statements will also be available on the Company's website
www.yinggaoholdings.com.
The financial results of the Group have been presented for the first time in
Hong Kong dollars ("HK$"), following the change in the Group's presentation
currency as of 1 January 2010 (see Note 2 (b) to the attached unaudited
financial statements). The comparative figures have been restated to HK$ in the
financial statements at rates prevailing in the six month period to 30 June
2009.
For further information:
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
FINANCIAL HIGHLIGHTS
Turnover
For the six months period ended 30 June 2010, the Group reported revenues of
HK$157 million representing an increase of 138% as compared to HK$66 million in
the same period last year. The rise in revenues was due to an increase in
turnover across the Group's business segments and in particular new trading
activities in metal which commenced business in the second quarter of the year
and whose turnover amounted to 39% of the total revenues.
Gross Profit
Gross profit during the first half of 2010 was HK$29.9 million, as increase of
43.7% as compared to HK$20.8 million in the same period in 2009. Despite this
increase, the Group's gross profit margin had actually decreased from 31% to 19%
mainly due to the low profit margin generated from trading activities. The
gross profit margin of terminal operation sector decreased by 4.3% from 33.7% to
29.4% against the increase of gross profit margin of barging services sector by
12.7% from 12.7% to 25.4%.
Profit before taxation
Profit before taxation achieved for the period was HK$14.5 million, an increase
of 61% as compared to HK$9.0 million during the same period in 2009. Profit
before tax for the period ended 30 June 2010 was approximately 9.2% of total
revenues compared with 13.5% for the period ended 30 June 2009.
Total equity of the Group
Total equity of the Group increased by 21% to HK$321 million compared to the
same period of last year. The most significant contribution to this increase was
increase in asset of property, plant and equipment as well as the overall
receivables.
Earnings per share increased to 0.51 HK cents (June 2009: 0.20 HK cents)
SUMMARY AND OUTLOOK
Overall the Group has performed significantly better in the first 6 months of
the year compared to the same period last year.
In my statement to shareholders last year I mentioned that a substantial part of
turnovers in that year had arisen because of the increase of the number of
container vessels in our fleet as well as its utilization. During the period
under review, additional vessels commenced operation in which two are series
"32" with carrying capacity of 228TEU and others with smaller capacities are
chartered from non related third parties. The increase in profit margin by 12.7%
to 25.4% during the first half year compared to the same period of last year
proves that the size of these newly-designed vessels is cost effective.
The results for the container terminal for the first half of the year are
slightly below our expectations. Although the turnover has increased by 9%
compared to the same period of last year, it was offset by the increase of
operation costs of 16% which resulted in the profit margin dropping to 29% for
the period. We consider the outcome of performance is reasonable as the increase
in operation costs is derived from costs incurred in capital investments in
plant and machinery such as depreciation cost, expenses on machinery and
equipment repair, diesel for trucks and parts replacement etc. There is no
significant increase in operation cost or in administrative cost that I would
draw to your attention.
The Board is conscious that expectations of a steady increase in throughput in
the container terminal in this year has not been fully met but the continuing
success of our barging services operations, coupled with an encouraging start to
the year from our trading activities, lead us to expect a marked improvement in
the Group's performance in the current year. The Board expects the year end
results for the year ending 31 December 2010 to reflect this improvement.
As a matter of fact, competitive pressures remain and the overall margin in
terminal operation in the second half is unlikely to reach last year's 32%. The
throughput for the year will mostly depend on the extent of a return to growth
of world production and consumption, in particular the export activities in
China, which for the first two months of the second half have shown only a small
increase by 0.3% compared to the same period of last year.
On the other hand, looking into the second half year of 2010, the Board is
confident that Yinggao Shipping will continue expanding its market share and
focus on its strengths to achieve its targets in cost control and
increasing reputation amongst the industry peers. Yinggao fleet will continue
to seek market entry into other regions within the Peal River Delta, other than
the corridor between Huangpu and Hong Kong. Yinggao Shipping continues to be
optimistic on the outlook of the industry, in particular the huge potential
market in the PRC.
On behalf of your Board I should like to thank all staff for their continuing
efforts and enthusiasm, who have worked so hard and so effectively to bring the
Company to this excellent performance during the period. I am very hopeful that
we will see a faster pace develop over the coming year.
Angela Leung
Chairman
24 September 2010
FINANCIAL HIGHLIGHTS
For the six months ended 30 June 2010
(Expressed in Hong Kong dollars)
+------------------------------------+---------+-+------------+-+-+-------------+----+
| | | | | (Audited) | |
+------------------------------------+------------------------+-+-+-------------+----+
| | (Unaudited) | | | Year | |
| | | | | ended | |
+------------------------------------+------------------------+-+-+-------------+----+
| | Six months ended | | | 31 December | |
| | 30 June | | | | |
+------------------------------------+------------------------+-+-+-------------+----+
| | 2010 | | 2009 | | | 2009 | |
| | | | (Restated) | | | (Restated) | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| | HK$'000 | | HK$'000 | | | HK$'000 | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| | | | | | | | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| Revenue | 156,651 | | 66,331 | | | 182,363 | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| | | | | | | | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| EBITDA * | 20,947 | | 12,753 | | | 84,904 | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| | | | | | | | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| Profit for the period/year | 13,085 | | 7,469 | | | 74,068 | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| | | | | | | | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| Total equity | 321,478 | | 265,793 | | | 306,935 | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
| | | | | | | | |
+------------------------------------+---------+-+------------+-+-+-------------+----+
*Earnings attributable to owners of the parent before interest, tax,
depreciation and amortisation.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2010
(Expressed in Hong Kong dollars)
+---------------------------------+------+-----------+-+------------+----------+------+----------+-------------+--+
| | | (Unaudited) | | | (Audited) | |
+---------------------------------+------+--------------------------+----------+-----------------+-------------+--+
| | | Six months ended | | | Year | |
| | | | | | ended | |
| | | 30 June | | | 31 December | |
+---------------------------------+------+--------------------------+----------+-----------------+-------------+--+
| | | 2010 | | 2009 | | | 2009 | |
| | | | | (Restated) | | | (Restated) | |
+---------------------------------+------+-----------+-+------------+----------+-----------------+-------------+--+
| |Note | HK$'000 | | HK$'000 | | | HK$'000 | |
+---------------------------------+------+-----------+-+------------+----------+-----------------+-------------+--+
| | | | | | | | | |
+---------------------------------+------+-----------+-+------------+----------+-----------------+-------------+--+
| Revenue | 3 | 156,651 | | 66,331 | | | 182,363 | |
+---------------------------------+------+-----------+-+------------+----------+-----------------+-------------+--+
| | | | | | | | | |
+---------------------------------+------+-----------+-+------------+----------+-----------------+-------------+--+
| Cost of sales | | (126,787) | | (45,555) | | | (127,909) | |
+---------------------------------+------+-----------+-+------------+----------+-----------------+-------------+--+
| | | | | | | | | |
+---------------------------------+------+-----------+-+------------+----------+-----------------+-------------+--+
| Gross profit | | 29,864 | | 20,776 | | | 54,454 | |
+---------------------------------+------+-----------+-+------------+----------+-----------------+-------------+--+
| | | | | | | | | |
+---------------------------------+------+-----------+-+------------+----------+-----------------+-------------+--+
| Other income | | 67 | | 15 | | | 3,087 | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| Gain on disposals of | | - | | - | | | 51,119 | |
| subsidiaries | | | | | | | | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| Administrative expenses | | (15,450) | | (11,817) | | | (30,750) | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| | | | | | | | |
+----------------------------------------+-----------+-+------------+-----------------+----------+-------------+--+
| Profit from operations | 14,481 | | 8,974 | | | 77,910 | |
| | | | | | | | |
+----------------------------------------+-----------+-+------------+-----------------+----------+-------------+--+
| Finance costs | (7) | | (8) | | | (622) | |
+----------------------------------------+-----------+-+------------+-----------------+----------+-------------+--+
| | | | | | | | | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| Profit before taxation | 4 | 14,474 | | 8,966 | | | 77,288 | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| | | | | | | | | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| Taxation | 5 | (1,389) | | (1,497) | | | (3,220) | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| | | | | | | | |
+----------------------------------------+-----------+-+------------+-----------------+----------+-------------+--+
| Profit for the period/year | | 13,085 | | 7,469 | | | 74,068 | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| | | | | | | | |
+----------------------------------------+-----------+-+------------+-----------------+----------+-------------+--+
| Attributable to: | | | | | | | |
+----------------------------------------+-----------+-+------------+-----------------+----------+-------------+--+
| Owners of the parent | 10,129 | | 3,959 | | | 67,646 | |
+----------------------------------------+-----------+-+------------+-----------------+----------+-------------+--+
| Non-controlling interests | | 2,956 | | 3,510 | | | 6,422 | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| | | 13,085 | | 7,469 | | | 74,068 | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| | | | | | | | | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| | | HK | | HK | | | HK cents | |
| | | cents | | cents | | | | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| Earnings per share - Basic and | 6 | 0.51 | | 0.20 | | | 3.43 | |
| diluted | | | | | | | | |
+---------------------------------+------+-----------+-+------------+-----------------+----------+-------------+--+
| | | | | | | | | |
+---------------------------------+------+-----------+-+------------+----------+------+----------+-------------+--+
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2010
(Expressed in Hong Kong dollars)
+----------------------------------+----+---------+-+------------+----------+-+-+-------------+---+
| | | (Unaudited) | | | (Audited) | |
+----------------------------------+----+------------------------+------------+-+-------------+---+
| | | Six months ended | | | Year | |
| | | 30 June | | | ended | |
| | | | | | 31 December | |
+----------------------------------+----+------------------------+------------+-+-------------+---+
| | | 2010 | | 2009 | | | 2009 | |
| | | | | (Restated) | | | (Restated) | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| | | HK$'000 | | HK$'000 | | | HK$'000 | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| Profit for the period/year | | 13,085 | | 7,469 | | | 74,068 | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| Other comprehensive income for | | | | | | | | |
| the | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| period/year | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| Exchange differences arising on | | 1,458 | | (558) | | | (23) | |
| translation of | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| foreign operations | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| Total comprehensive income for | | 14,543 | | 6,911 | | | 74,045 | |
| the period/year | | | | | | | | |
+----------------------------------+----+---------+-+------------+----------+---+-------------+---+
| | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| Attributable to: | | | | | | | | |
+----------------------------------+----+---------+-+------------+------------+-+-------------+---+
| Owners of the parent | 11,327 | | 3,394 | | | 67,623 | |
+---------------------------------------+---------+-+------------+------------+-+-------------+---+
| Non-controlling interests | 3,216 | | 3,517 | | | 6,422 | |
+---------------------------------------+---------+-+------------+------------+-+-------------+---+
| Total comprehensive income for the | 14,543 | | 6,911 | | | 74,045 | |
| period/year | | | | | | | |
+---------------------------------------+---------+-+------------+------------+-+-------------+---+
| | | | | | | | |
+----------------------------------+----+---------+-+------------+----------+-+-+-------------+---+
CONDENSED CONSOLIDATED BALANCE SHEET
As at 30 June 2010
(Expressed in Hong Kong dollars)
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | | | (Audited) | |
+-------------------------------+------+------------------------+--+------------+--+
| | | (Unaudited) | | As at | |
+-------------------------------+------+------------------------+--+------------+--+
| | | As at 30 June | | 31 | |
| | | | | December | |
+-------------------------------+------+------------------------+--+------------+--+
| |Note | 2010 | | 2009 | | 2009 | |
| | | | | (Restated) | | (Restated) | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | HK$'000 | | HK$'000 | | HK$'000 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| NON-CURRENT ASSETS | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Goodwill | | 14,168 | | 14,168 | | 14,168 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Property, plant and | 8 | 295,105 | | 236,819 | | 275,571 | |
| equipment | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Available-for-sale | | - | | 93 | | - | |
| investment | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | 309,273 | | 251,080 | | 289,739 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| CURRENT ASSETS | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Inventories | | 1,282 | | 1,079 | | 1,200 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Trade and other receivables | | 99,400 | | 74,397 | | 63,343 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Cash and cash equivalents | | 6,163 | | 2,396 | | 16,726 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | 106,845 | | 77,872 | | 81,269 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| CURRENT LIABILITIES | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Trade and other payables | | 71,545 | | 29,745 | | 41,061 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Obligations under finance | | 6,758 | | 4,394 | | 6,714 | |
| leases | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Taxation | | 8,905 | | 7,250 | | 7,077 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | 87,208 | | 41,389 | | 54,852 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| NET CURRENT ASSETS | | 19,637 | | 36,483 | | 26,417 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| TOTAL ASSETS LESS | | | | | | | |
| CURRENT LIABILITIES | | 328,910 | | 287,563 | | 316,156 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| NON-CURRENT LIABILITIES | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Bank loan | | - | | 14,847 | | - | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Obligations under finance | | 1,366 | | 825 | | 3,155 | |
| leases | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Loans from fellow investors | | 5,544 | | 6,098 | | 5,544 | |
| in subsidiaries | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Deferred tax liabilities | | 522 | | - | | 522 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | 7,432 | | 21,770 | | 9,221 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| NET ASSETS | | 321,478 | | 265,793 | | 306,935 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| CAPITAL AND RESERVES | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Share capital | 10 | 115,224 | | 115,224 | | 115,224 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Reserves | | 125,254 | | 46,069 | | 113,927 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Total equity attributable | | 240,478 | | 161,293 | | 229,151 | |
| to owners of the | | | | | | | |
| parent | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| Non-controlling interests | | 81,000 | | 104,500 | | 77,784 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| TOTAL EQUITY | | 321,478 | | 265,793 | | 306,935 | |
+-------------------------------+------+---------+-+------------+--+------------+--+
| | | | | | | | |
+-------------------------------+------+---------+-+------------+--+------------+--+
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the period ended 30 June 2010
(Expressed in Hong Kong dollars)
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| | Attributable to owners of the parent | | |
+--------------------------+-----------------------------------------------------------------------------+-----------------+---------+
| | | | (note | | | | | | |
| | | | i) | (note | | | | Non-controlling | |
| | Share | Share | Statutory | ii) | Exchange | Accumulated | | interests | Total |
| | capital | premium | surplus | Merger | reserve | losses | Total | | equity |
| | | | reserve | reserve | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Balance at 1 January | 115,224 | 120,942 | 11,953 | 201,104 | 48,650 | (339,974) | 157,899 | 100,983 | 258,882 |
| 2009 (Restated) | | | | | | | | | |
| (note iii) | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Comprehensive income | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Profit for the period | - | - | - | - | - | 3,959 | 3,959 | 3,510 | 7,469 |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Other comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Exchange differences | - | - | - | - | (565) | - | (565) | 7 | (558) |
| arising on translation | | | | | | | | | |
| of foreign operations | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Total comprehensive | - | - | - | - | (565) | 3,959 | 3,394 | 3,517 | 6,911 |
| income for the | | | | | | | | | |
| period | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Transactions with owners | - | - | - | - | - | - | - | - | - |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Overprovision in | - | - | (448) | - | - | 448 | - | - | - |
| statutory surplus | | | | | | | | | |
| reserve | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Balance at 30 June 2009 | 115,224 | 120,942 | 11,505 | 201,104 | 48,085 | (335,567) | 161,293 | 104,500 | 265,793 |
| (Unaudited) | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Balance at 1 January | 115,224 | 120,942 | 4,349 | 201,104 | 52,256 | (264,724) | 229,151 | 77,784 | 306,935 |
| 2010 | | | | | | | | | |
| (Audited and restated) | | | | | | | | | |
| (note iii) | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Comprehensive income | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Profit for the period | - | - | - | - | - | 10,129 | 10,129 | 2,956 | 13,085 |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Other comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Exchange differences | - | - | - | - | 1,198 | - | 1,198 | 260 | 1,458 |
| arising on translation | | | | | | | | | |
| of foreign operations | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Total comprehensive | - | - | - | - | 1,198 | 10,129 | 11,327 | 3,216 | 14,543 |
| income for the | | | | | | | | | |
| period | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Transactions with owners | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Transfer of statutory | - | - | - | - | - | - | - | - | - |
| surplus reserve | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| Balance at 30 June 2010 | 115,224 | 120,942 | 4,349 | 201,104 | 53,454 | (254,595) | 240,478 | 81,000 | 321,478 |
| (Unaudited) | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
| | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+---------+
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| | Attributable to owners of the parent | | |
+--------------------------+-----------------------------------------------------------------------------+-----------------+----------+
| | | | (note | | | | | | |
| | | | i) | (note | | | | Non-controlling | |
| | Share | Share | Statutory | ii) | Exchange | Accumulated | | interests | Total |
| | capital | premium | surplus | Merger | reserve | losses | Total | | equity |
| | | | reserve | reserve | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Balance at 1 January | 115,224 | 120,942 | 11,953 | 201,104 | 48,650 | (339,974) | 157,899 | 100,983 | 258,882 |
| 2009 (Restated) | | | | | | | | | |
| (note iii) | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Comprehensive income | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Profit for the year | - | - | - | - | - | 67,646 | 67,646 | 6,422 | 74,068 |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Other comprehensive | | | | | | | | | |
| income | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Exchange differences | - | - | - | - | (23) | - | (23) | - | (23) |
| arising on translation | | | | | | | | | |
| of foreign operations | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Disposals of | - | - | (8,516) | - | 3,629 | 8,516 | 3,629 | (29,621) | (25,992) |
| subsidiaries | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Total other | - | - | (8,516) | - | 3,606 | 8,516 | 3,606 | (29,621) | (26,015) |
| comprehensive income for | | | | | | | | | |
| the year | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Total comprehensive | - | - | (8,516) | - | 3,606 | 76,162 | 71,252 | (23,199) | 48,053 |
| income for the year | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Transactions with owners | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Transfer of statutory | - | - | 912 | - | - | (912) | - | - | - |
| surplus reserve | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| Balance at 31 December | | | | | | | | | |
| 2009 | 115,224 | 120,942 | 4,349 | 201,104 | 52,256 | (264,724) | 229,151 | 77,784 | 306,935 |
| (Audited and restated) | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
| | | | | | | | | | |
+--------------------------+---------+---------+-----------+---------+----------+-------------+----------+-----------------+----------+
Notes:
(i) Statutory surplus reserve:
In accordance with the law 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.
Appropriations may also be made to statutory public welfare reserve equivalent
to 5 to 10% of the net profits of these operating subsidiaries. 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 use of the statutory public welfare reserve
is restricted to capital expenditure incurred for staff welfare facilities. 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 2002.
(iii) Balances at 1 January 2010 and 2009 have been restated due to the
change in the Group's presentation currency.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30 June 2010
(Expressed in Hong Kong dollars)
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | (Unaudited) | | (Audited) | |
+----------------------------------------+-------------------------+----------+-------------+----+
| | Six months | | Year | |
| | ended | | ended | |
+----------------------------------------+-------------------------+----------+-------------+----+
| | 30 June | | 31 December | |
+----------------------------------------+-------------------------+----------+-------------+----+
| | 2010 | | 2009 | | 2009 | |
| | | | (Restated) | | (Restated) | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | HK$'000 | | HK$'000 | | HK$'000 | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Cash flow from operating activities | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Profit before taxation | 14,474 | | 8,966 | | 77,288 | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Adjustments for : | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Interest income | - | | (8) | | (8) | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Gain on disposal of subsidiaries | - | | - | | (51,119) | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Depreciation | 9,422 | | 7,289 | | 13,416 | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Finance costs | 7 | | 8 | | 622 | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Loss on disposal of property, plant | - | | 1,115 | | 1,115 | |
| and equipment | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Exchange differences | - | | (653) | | 2,632 | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Operating profit before working | 23,903 | | 16,717 | | 43,946 | |
| capital changes | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Increase in inventories | (82) | | (21) | | (142) | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Increase in trade and other | (35,757) | | (11,737) | | (2,656) | |
| receivables | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Increase / (decrease) in trade and | 29,095 | | (425) | | 19,266 | |
| other payables | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Net cash flow generated from | 17,159 | | 4,534 | | 60,414 | |
| operations | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Income tax refunded / (paid) | 439 | | 383 | | (984) | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Net cash generated from operating | 17,598 | | 4,917 | | 59,430 | |
| activities | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Cash flows from investing activities | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Purchase of property, plant and | (26,305) | | (6,602) | | (44,247) | |
| equipments | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Sales proceeds from disposals of | - | | - | | 2,510 | |
| property, plant and equipment | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Sales proceeds from disposal of | - | | - | | 93 | |
| available-for-sale investment | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Disposals of subsidiaries | - | | 8 | | (15) | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Interest income | - | | 8 | | 8 | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Net cash used in investing activities | (26,305) | | (6,586) | | (41,651) | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Cash flows from financing activities | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Repayment on obligations under | (1,849) | | (1,951) | | (6,463) | |
| finance leases | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Interest on finance leases | (7) | | (8) | | (622) | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Net cash used in financing activities | (1,856) | | (1,959) | | (7,085) | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Net (decrease) / increase in cash and | (10,563) | | (3,628) | | 10,694 | |
| cash equivalents | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Cash and cash equivalents at the | 16,726 | | 6,024 | | 6,024 | |
| beginning of the period/year | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Effect of foreign exchange rate | - | | - | | 8 | |
| changes | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| Cash and cash equivalents at the end | 6,163 | | 2,396 | | 16,726 | |
| of the period/year | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
| | | | | | | |
+----------------------------------------+----------+-+------------+----------+-------------+----+
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
For the period ended 30 June 2010
(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 2 Bloomsbury Street,
London WC1B 3ST. Its principal place of business is 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 terminal operation and barging
services provision.
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 24 September 2010.
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 2010
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 financial statements of
the group for the year ended 31 December 2009, 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 2010, there were no
unendorsed standards effective for the period ended 30 June 2010 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 Yinggao Holdings plc.
(b) Change in the Group's presentation currency
The Group has historically presented its consolidated financial statements in
United States dollars. However, since a significant portion of the Group's
operations are carried out in Hong Kong, the directors have decided it is
appropriate to change the Group's presentation currency to the HKD. This
change in accounting policy will eliminate many of the foreign exchange
differences in reported numbers from period to period. The Company's functional
currency continues to be sterling and so is different to the presentation
currency of the Group.
The effect of the change in this accounting policy has been that all comparative
numbers in the consolidated condensed financial statements are described as "
Restated".
(c) Impact of recently issued IFRSs
The IASB have issued certain new and revised IFRSs and new IFRICs that are first
effective or available for early adoption for the current accounting period of
the Group.
The Group applies IFRS 3 (Revised) "Business Combinations" prospectively to
business combinations for which the acquisition date is on or after 1 January
2010. The requirements in IAS 27 (Revised) "Consolidated and Separate Financial
Statements" in relation to accounting for changes in ownership interests in a
subsidiary after control is obtained and for loss of control of a subsidiary are
also applied prospectively by the Group on or after 1 January 2010.
As there was no transaction during the current interim period in which IFRS 3
(Revised) and IAS 27 (Revised) are applicable, the application of IFRS 3
(Revised), IAS 27 (Revised) and the consequential amendments to other HKFRSs had
no effect on the condensed consolidated financial statements of the Group for
the current or prior accounting periods.
Results of the Group in future periods may be affected by future transactions
for which IFRS 3 (Revised), IAS 27 (Revised) and the consequential amendments to
the other IFRSs are applicable.
The application of the other new and revised IFRSs had no effect on the
condensed consolidated financial statements of the Group for the current or
prior accounting periods.
The Group has not early applied the following new and revised standards,
amendments or interpretations that have been issued but are not yet effective.
+------------------------+-----------------------------------------+
| IFRSs (Amendments) | Improvements to IFRSs 20101 |
+------------------------+-----------------------------------------+
| IAS 24 (Revised) | Related Party Disclosures4 |
+------------------------+-----------------------------------------+
| IAS 32 (Amendment) | Classification of Rights Issues2 |
+------------------------+-----------------------------------------+
| IFRS 1 (Amendment) | Limited Exemptions from Comparataive |
| | IFRS 7 |
| | Disclosures for First-time Adopters3 |
+------------------------+-----------------------------------------+
| IFRS 9 | Financial Instruments5 |
+------------------------+-----------------------------------------+
| IFRIC 14 (Amendment) | Prepayments of a Minimum Funding |
| | Requirement4 |
+------------------------+-----------------------------------------+
| IFRIC 19 | Extinguishing Financial Liabilities |
| | with Equity Instruments3 |
+------------------------+-----------------------------------------+
1 Effective for annual periods beginning on or after 1 July 2010 and 1
January 2011, as
appropriate.
2Effective for annual periods beginning on or after 1 February 2010
3Effective for annual periods beginning on or after 1 July 2010
4Effective for annual periods beginning on or after 1 January 2011
5Effective for annual periods beginning on or after 1 January 2013
IFRS 9 "Financial Instruments" introduces new requirements for the
classification and measurement of financial assets and will be effective from 1
January 2013, with earlier application permitted. The Standard requires all
recognised financial assets that are within the scope of IAS 39 "Financial
Instruments: Recognition and Measurement" to be measured at either amortised
cost or fair value. Specifically, debt investments that (i) are held within a
business model whose objective is to collect the contractual cash flows and (ii)
have contractual cash flows that are solely payments of principal and interest
on the principal outstanding are generally measured at amortised cost. All
other debt investments and equity investments are measured at fair value. The
application of IFRS 9 might affect the classification and measurement of the
Group's financial assets.
The directors of the Company anticipate that the application of the other new
and revised standards, amendments or interpretations will have no material
impact on the results or financial position of the Group for the current or
prior accounting periods.
(d) Use of estimates and assumptions
The preparation of financial information 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.
(e) 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 the provision of logistics and
terminal operation together with other related services including sea freight
forwarding and barge hire.
The Group's operating segments based on information reported to the chief
operating decision maker for the purposes of resource allocation and performance
assessment are terminal services, barging services, trading and others and
mining. Information regarding these segments is reported below.
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| | | | | | |
| | Terminal | Barging | Trading and | Mining | Total |
| | Services | Services | others | | |
+---------------------+---------------------------+---------------------------+---------------------------+---------------------------+---------------------------+
| For the six months | 2010 | | 2010 | | 2010 | | 2010 | | 2010 | |
| ended (Unaudited) | | 2009 | | 2009 | | 2009 | | 2009 | | 2009 |
| | | (Restated) | | (Restated) | | (Restated) | | (Restated) | | (Restated) |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| Revenue from | 58,729 | 53,562 | 37,088 | 12,769 | 60,834 | - | - | - | 156,651 | 66,331 |
| external customers | | | | | | | | | | |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| | | | | | | | | | | |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| Reportable segment | 58,729 | 53,562 | 37,088 | 12,769 | 60,834 | - | - | - | 156,651 | 66,331 |
| revenue | | | | | | | | | | |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| | | | | | | | | | | |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| Reportable segment | 3,898 | 6,133 | 6,375 | 2,841 | 4,700 | - | (492) | - | 14,481 | 8,974 |
| profit / (loss) | | | | | | | | | | |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| Finance costs | - | - | (7) | (8) | - | - | - | - | (7) | (8) |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| Taxation | (1,389) | (1,497) | - | - | - | - | - | - | (1,389) | (1,497) |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| | 2,509 | 4,636 | 6,368 | 2,833 | 4,700 | - | (492) | - | 13,085 | 7,469 |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| | (Unaudited) | (Audited) | (Unaudited) | (Audited) | (Unaudited) | (Audited) | (Unaudited) | (Audited) | (Unaudited) | (Audited) |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| | 30 | | 30 | | 30 | | 30 | | 30 | |
| As at the period / | June | 31 | June | 31 | June | 31 | June | 31 | June | 31 |
| year ended | 2010 | December | 2010 | December | 2010 | December | 2010 | December | 2010 | December |
| | | 2009 | | 2009 | | 2009 | | 2009 | | 2009 |
| | | (Restated) | | (Restated) | | (Restated) | | (Restated) | | (Restated) |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 | HK$'000 |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
| Reportable segment | 347,027 | 317,386 | 63,759 | 30,124 | 5,326 | 23,259 | 6 | 239 | 416,118 | 371,008 |
| assets | | | | | | | | | | |
+---------------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+-------------+
4. Profit before taxation
Profit before taxation is stated after charging :
+---------------------------+----------+-+------------+-+------------+----+
| | (Unaudited) | | (Audited) | |
+---------------------------+-------------------------+-+------------+----+
| | Six months ended | | Year | |
| | 30 June | | ended | |
| | | | 31 | |
| | | | December | |
+---------------------------+-------------------------+-+------------+----+
| | 2010 | | 2009 | | 2009 | |
| | | | (Restated) | | (Restated) | |
+---------------------------+----------+-+------------+-+------------+----+
| | HK$'000 | | HK$'000 | | HK$'000 | |
+---------------------------+----------+-+------------+-+------------+----+
| Depreciation on property, | | | | | | |
| plant and | 9,422 | | 7,289 | | 13,416 | |
| equipment | | | | | | |
+---------------------------+----------+-+------------+-+------------+----+
| Loss on disposal of | | | | | | |
| property, plant and | - | | 1,115 | | 1,115 | |
| equipment | | | | | | |
+---------------------------+----------+-+------------+-+------------+----+
5. Taxation
+----------------------------------+---------+-+------------+-+-+------------+---+
| | | | | (Restated) | |
+----------------------------------+------------------------+-+-+------------+---+
| | (Unaudited) | | | (Audited) | |
+----------------------------------+------------------------+-+-+------------+---+
| | Six months | | | Year | |
| | ended | | | ended | |
| | 30 June | | | 31 | |
| | | | | December | |
+----------------------------------+------------------------+-+-+------------+---+
| | 2010 | | 2009 | | | 2009 | |
| | | | (Restated) | | | (Restated) | |
+----------------------------------+---------+-+------------+-+-+------------+---+
| | HK$'000 | | HK$'000 | | | HK$'000 | |
+----------------------------------+---------+-+------------+-+-+------------+---+
| Current tax : | | | | | | | |
+----------------------------------+---------+-+------------+-+-+------------+---+
| - overseas tax for the | 1,389 | | 1,497 | | | 2,698 | |
| period/year | | | | | | | |
+----------------------------------+---------+-+------------+-+-+------------+---+
| | | | | | | | |
+----------------------------------+---------+-+------------+-+-+------------+---+
| Deferred tax : | | | | | | | |
+----------------------------------+---------+-+------------+-+-+------------+---+
| - current year | - | | - | | | 522 | |
+----------------------------------+---------+-+------------+-+-+------------+---+
| | 1,389 | | 1,497 | | | 3,220 | |
+----------------------------------+---------+-+------------+-+-+------------+---+
In respect of subsidiaries operating in Hong Kong, no provision for Hong Kong
profits tax are provided as there are sufficient tax losses brought forward to
set off against current period'sassessable profit.
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 22% 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 "new Tax Law"). Under the new 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 2010.
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 periods/year ended 30 June 2010, 30 June 2009 and 31
December 2009, respectively.
+---------------------------+---------------+-+---------------+-+---------------+--+
| | (Unaudited) | | (Audited) | |
+---------------------------+---------------------------------+-+---------------+--+
| | Six months ended | | Year ended | |
| | 30 June | | | |
| | | | 31 | |
| | | | December | |
+---------------------------+---------------------------------+-+---------------+--+
| | 2010 | | 2009 | | 2009 | |
| | | | (Restated) | | (Restated) | |
+---------------------------+---------------+-+---------------+-+---------------+--+
| Profit attributable to | | | | | | |
| owners of the parent (HK$ | 10,129 | | 3,959 | | 67,646 | |
| '000) | | | | | | |
+---------------------------+---------------+-+---------------+-+---------------+--+
| | | | | | | |
+---------------------------+---------------+-+---------------+-+---------------+--+
| Weighted average number | | | | | | |
| of shares in | 1,978,895,139 | | 1,978,895,139 | | 1,978,895,139 | |
| issue | | | | | | |
+---------------------------+---------------+-+---------------+-+---------------+--+
| | | | | | | |
+---------------------------+---------------+-+---------------+-+---------------+--+
| Earnings per share | | | | | | |
| (Basic and diluted) | 0.51 | | 0.20 | | 3.43 | |
| (HK cents) | | | | | | |
+---------------------------+---------------+-+---------------+-+---------------+--+
| | | | | | | |
+---------------------------+---------------+-+---------------+-+---------------+--+
7. Dividend
The directors do not recommend the payment of any dividend.
8. Property, plant and equipment
During the period, the Group spent approximately HK$26,305,000 in acquiring
property, plant and equipment (Six months ended 30 June 2009: HK$6,602,000).
During last period, the Group demolished its oil storage tanks, which served in
the terminal and barging services segment in PRC, with a carrying amount of
HK$1,115,000. There are no sales proceeds for this demolishment.
9. Investments in subsidiaries
At 30 June 2010, 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 | | Place of |
| Name | attributable | Principal | incorporation |
| | to the Group | activities | |
+--------------------------+---------------+----------------+---------------+
| | 2010 | 2009 | | |
+--------------------------+-------+-------+----------------+---------------+
| Yinggao Consultants | 100% | 100% | Providing | BVI |
| Limited * | | | management | |
| | | | services | |
+--------------------------+-------+-------+----------------+---------------+
| Yinggao International | 100% | 100% | Investment | BVI |
| Limited # | | | holding | |
+--------------------------+-------+-------+----------------+---------------+
| Sanko Mineral Limited | 100% | 100% | Sub-letting of | BVI |
| | | | yachts, | |
| | | | ships and | |
| | | | vessels | |
+--------------------------+-------+-------+----------------+---------------+
| Yinggao Shipping (H.K.) | 100% | 100% | Providing | Hong Kong |
| Limited | | | logistics | |
| | | | and related | |
| | | | services | |
+--------------------------+-------+-------+----------------+---------------+
| Yinggao Shipping Limited | 100% | 100% | Providing | Hong Kong |
| * | | | logistics | |
| | | | and related | |
| | | | services | |
+--------------------------+-------+-------+----------------+---------------+
| Yinggao Ship Chartering | 100% | 100% | Barge hiring | Hong Kong |
| Limited | | | and | |
| | | | agency | |
| | | | services | |
+--------------------------+-------+-------+----------------+---------------+
| Arko Terminal Limited | 100% | 100% | Investment | Republic of |
| ("ATL") * | | | holding | Seychelles |
+--------------------------+-------+-------+----------------+---------------+
| Yinggao Resources | 100% | - | Trading | HK |
| Ltd. | | | | |
+--------------------------+-------+-------+----------------+---------------+
| Keen Chance Terminal | 40% | 40% | Investing in | PRC |
| | | | and operation | |
| Limited("KCT") | | | of a terminal | |
| | | | and providing | |
| | | | logistics | |
| | | | services | |
+--------------------------+-------+-------+----------------+---------------+
| Fujian Sanko Mining | 70% | 70% | Dormant | PRC |
| Limited | | | | |
+--------------------------+-------+-------+----------------+---------------+
* Directly held by Yinggao Investments Limited. All other subsidiaries are
indirectly held.
# During the period, the group has changed the name of this subsidiary from
Yinggao Pacific Limited to Yinggao International Limited on 17 March 2010.
Details of a subsidiary disposed of during the period are set out in note 14.
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 who 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),
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.
+--------------------------------------------+----------------+------------+
| 10. Share capital | |
+--------------------------------------------+-----------------------------+
| | Number | GBP'000 |
+--------------------------------------------+----------------+------------+
| Authorised: |
| Ordinary shares of 0.5p each |
+--------------------------------------------------------------------------+
| At 30 June 2010, 31 December 2009 and 30 | 30,000,000,000 | 150,000 |
| June 2009 | | |
+--------------------------------------------+----------------+------------+
| | | |
+--------------------------------------------+----------------+------------+
| | | (Restated) |
| | | HK$'000 |
+--------------------------------------------+----------------+------------+
| Equivalent to: | | 2,049,380 |
+--------------------------------------------+----------------+------------+
| | | |
+--------------------------------------------+----------------+------------+
| Allotted, called up and fully paid: | | (Restated) |
| Ordinary shares of 0.5p each | | HK$'000 |
+--------------------------------------------+----------------+------------+
| At 30 June 2010, 31 December 2009 and 30 | 1,978,895,139 | 115,224 |
| June 2009 | | |
+--------------------------------------------+----------------+------------+
| | | |
+--------------------------------------------+----------------+------------+
11. Operating lease commitments
At 30 June 2010, the Group's total future minimum lease payments under
non-cancellable operating leases are repayable as follows :
+------------------------------+----------+-+------------+-+-------------+----------+
| | (Unaudited) | | (Audited) | |
+------------------------------+-------------------------+-+-------------+----------+
| | Six months ended | | Year ended | |
| | 30 June | | 31 December | |
+------------------------------+-------------------------+-+-------------+----------+
| | 2010 | | 2009 | | 2009 | |
| | | | (Restated) | | (Restated) | |
+------------------------------+----------+-+------------+-+-------------+----------+
| | HK$'000 | | HK$'000 | | HK$'000 | |
+------------------------------+----------+-+------------+-+-------------+----------+
| Leases which expire: | | | | | | |
+------------------------------+----------+-+------------+-+-------------+----------+
| - in the next year | 4,078 | | 3,130 | | 1,399 | |
+------------------------------+----------+-+------------+-+-------------+----------+
| - in the second to fifth | 2,321 | | 3,598 | | 3,018 | |
| years | | | | | | |
+------------------------------+----------+-+------------+-+-------------+----------+
| | 6,399 | | 6,728 | | 4,417 | |
+------------------------------+----------+-+------------+-+-------------+----------+
| | | | | | | |
+------------------------------+----------+-+------------+-+-------------+----------+
The Group is the leasee in respect of a number of properties held under
operating leases. The leases typically run for an initial period of 1 to 5
years, at the end of which period all terms are renegotiated. None of the leases
includes contingent rentals.
12. Capital commitments
The Group's capital commitments outstanding at 30 June 2010 in respect of the
acquisition of property, plant and equipment in the financial statements are as
follows:
+------------------------------+----------+-+------------+-+-------------+----------+
| | (Unaudited) | | (Audited) | |
+------------------------------+-------------------------+-+-------------+----------+
| | Six months ended | | Year ended | |
| | 30 June | | 31 December | |
+------------------------------+-------------------------+-+-------------+----------+
| | 2010 | | 2009 | | 2009 | |
| | | | (Restated) | | (Restated) | |
+------------------------------+----------+-+------------+-+-------------+----------+
| | HK$'000 | | HK$'000 | | HK$'000 | |
+------------------------------+----------+-+------------+-+-------------+----------+
| Contracted but not provided | 14,640 | | 9,475 | | 6,201 | |
| for | | | | | | |
+------------------------------+----------+-+------------+-+-------------+----------+
| | | | | | | |
+------------------------------+----------+-+------------+-+-------------+----------+
13. Contingent liabilities
On 23 July 1998, a subsidiary of the Company, KCT, gave a guarantee for RMB50
million (equivalent to approximately HK$45.5 million) in favour of the Huangpu
Branch of the Industry and Commercial Bank of China for banking facilities
granted to HEDCL, a fellow investor in KCT and its ultimate controlling party,
Guangzhou Huangpu Foreign Trade Group Company Limited and secured over their
equity interests in KCT. HEDCL was unable to repay the loans due to the bank.
The bank took action against KCT to enforce the guarantee for the outstanding
loan.
On 9 November 1999, KCT gave a guarantee for RMB18 million (equivalent to
approximately HK$16.2 million) 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 guarantees above were 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 guarantees given were invalid on the following grounds:
(i) such guarantees did not have approval from the board of directors of
KCT;
(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
guarantees to its shareholder; and
(iii) the controlling party of HEDCL has not held a valid business licence
since 1998 and ceased operations in 1999. In accordance with the banking
regulations of the People's Republic of China, the bank cannot lend money to
enterprises which do not have a valid business licence.
The legal proceedings are finalised on November 2009. The jurisdiction said that
the loan agreement was void because it was illegal and accordingly, the
guarantees contract were also invalid.
Furthermore, KLHL, the Company's parent company, has indemnified the Group
against any loss KCT will suffer should the guarantees 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.
14. Disposal of a subsidiary
On 28 June 2010, the group disposed of its 100% interest in Yinggao Energy
Limited to Winko Foundation Limited ("WFL"), a wholly owned subsidiary of KLHL,
at a consideration of HK$1. Gain on disposal of HK$1 is recognised in profit or
loss during the period.
15. Related party transactions
The Group had the following material transactions which were carried out on an
arm's length basis with related parties during the period/year:
+-------+-+--------------------+--------------+--------+--------------------+------+------------+
| | (Unaudited) | | (Audited) |
+ +--------------------------------------------+------+------------+
| | Six months ended | | Year |
| | 30th June | | ended |
| | | | 31st |
| | | | December |
+ +--------------------------------------------+------+------------+
| | 2010 | | 2009 | | 2009 |
| | | | (Restated) | | (Restated) |
+------------------------------+--------------+--------+--------------------+------+------------+
| Notes | | Nature | HK$000 | | HK$000 | | HK$000 |
+-------+-+--------------------+--------------+--------+--------------------+------+------------+
| | | | | | | | |
+-------+-+--------------------+--------------+--------+--------------------+------+------------+
| (i) | | Agency charge paid | -- | | 340 | | 509 |
| | | by the Group | | | | | |
+-------+-+--------------------+--------------+--------+--------------------+------+------------+
| | | Barging services | -- | | --- | | 24,296 |
| | | cost paid by | | | | | |
| | | theGroup | | | | | |
+-------+-+--------------------+--------------+--------+--------------------+------+------------+
| | | Barging services | -- | | --- | | 28,832 |
| | | income received | | | | | |
| | | by the Group | | | | | |
+-------+-+--------------------+--------------+--------+--------------------+------+------------+
| | | Disposals of | -- | | --- | | 2,500 |
| | | Property, plant | | | | | |
| | | and equipment | | | | | |
+-------+-+--------------------+--------------+--------+--------------------+------+------------+
| (ii) | | Gain on disposal | - | | - | | |
| | | of subsidiaries | | | | | 51,007 |
+-------+-+--------------------+--------------+--------+--------------------+------+------------+
Notes:
(i) Services provided by companies with significant influence. These
ceased to be related parties of the Group on 18 September 2009.
(ii) Details of the disposal of a subsidiary to WFL during the period are
set out in note 14.
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 2009.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZZLFLBKFLBBF
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