The Stock Exchange of Hong Kong Limited takes no responsibility for the contents
of this announcement, makes no representation as to its accuracy or completeness
and expressly disclaims any liability whatsoever for any loss howsoever arising
from or in reliance upon the whole or any part of the contents of this
announcement.
HANG FUNG GOLD TECHNOLOGY LIMITED
(Incorporated in Bermuda with limited liability)
UNAUDITED FINANCIAL RESULTS
FOR THE NINE MONTHS ENDED 31ST DECEMBER, 2002
In view of the fact that Hang Fung Gold Technology Limited (the "Company") is an
associate of S.W. Lam, Inc. which is quoted on the National Association of
Securities Dealers, Inc. Electronic Bulletin Board, the quarterly and annual
results of the Company and S.W. Lam, Inc. are accordingly required to be
simultaneously disseminated in Hong Kong and the United States.
The Directors of the Company is pleased to announce the unaudited consolidated
income statements of the Company, its subsidiaries and associates (collectively
the "Group") for the three months and nine months ended 31st December, 2002
together with comparative figures for the corresponding periods in 2001 as
follows:
(Unaudited) (Unaudited)
Three months ended Nine months ended
31st December, 31st December,
Note 2002 2001 2002 2001
------ ------ ------ ------ ------
HK$'000 HK$'000 HK$'000 HK$'000
Turnover (2) 420,246 350,322 1,290,506 968,475
Cost of sales (317,717) (298,651) (1,035,923) (825,641)
----------- ---------- ---------- -----------
Gross profit 102,529 51,671 254,583 142,834
Selling, distribution and
marketing expenses (40,132) (10,789) (97,669) (22,438)
General and administrative expenses (33,495) (22,768) (83,442) (59,195)
----------- ---------- ---------- -----------
Profit from operations 28,902 18,114 73,472 61,201
Interest income 262 1,402 3,218 6,027
Interest expense (5,952) (7,803) (17,852) (25,079)
Share of losses of associates and
provision against advance to
an associate (1,865) (2,869) (8,726) (8,500)
----------- ---------- ---------- -----------
Profit before taxation 21,347 8,844 50,112 33,649
Taxation (3) (1,360) (972) (4,560) (3,372)
----------- ---------- ---------- -----------
Profit attributable to shareholders 19,987 7,872 45,552 30,277
=========== ========== ========== ===========
Dividend - interim - -
========== ===========
Earnings per share (4)
- Basic 0.847cent 0.568cent
========== ===========
- Diluted N/A 0.565cent
========== ===========
Notes:
(1) Principal accounting policies
The unaudited consolidated income statements
have been prepared in accordance with the principal accounting policies set
out in the Company's annual accounts for the year ended 31st March, 2002.
(2) Turnover
Analysis of the Group's turnover by geographical location is as follows:
Nine months ended
31st December,
2002 2001
Turnover Turnover
HK$'000 HK$'000
By geographical location
Hong Kong/Mainland China 1,046,649 658,560
Southeast Asia 121,791 125,925
The United States of America 61,504 78,466
Europe 56,206 58,068
Others 4,356 47,456
----------- -----------
1,290,506 968,475
=========== ===========
Turnover by geographical location is determined on the basis of the
destination of shipment of merchandise.
(3) Taxation
Taxation in the consolidated income statements consisted of:
Nine months ended
31st December,
2002 2001
HK$'000 HK$'000
Hong Kong profits tax 4,560 3,372
The Company is exempted from taxation in Bermuda until 2016. Hong Kong
profits tax has been provided at the rate of 16% (2001: 16%) on the
estimated assessable profit arising in or derived from Hong Kong. No
Mainland China tax has been provided as the Group had no taxable profit
subject to such tax during the period.
There was no significant unprovided deferred taxation as at 31st December,
2002.
(4) Earnings per share
The calculation of basic earnings per share is based on the consolidated
profit attributable to shareholders of approximately HK$45,552,000 (2001:
HK$30,277,000) and on the weighted average number of approximately
5,380,016,727 shares (2001: 5,332,000,000 shares) in issue during the
period.
Diluted earnings per share for the nine months ended 31st December, 2002
is not presented as there is no dilutive potential shares in existence
during the period. The calculation of diluted earnings per share for the
nine months ended 31st December, 2001 is based on the consolidated profit
attributable to shareholders of approximately HK$30,277,000 and on the
weighted average number of approximately 5,362,577,396 shares in issue,
after adjusting for the effects of all dilutive potential shares.
Results
Turnover for the nine months ended 31st December, 2002 amounted to
HK$1,290,506,000, representing an increase of 33.3% over the corresponding
period in 2001. The increase in turnover was mainly due to the contribution from
the 3D-GOLD Tourism Exhibition Hall and the growth of business in Mainland China
and Hong Kong.
Profit margin increased to 19.7% in the current period from 14.7% in the prior
fiscal year period, largely contributed from increase of sales in retail
business which is of higher profit margin.
Selling, distribution and marketing expenses increased from HK$22,438,000 in
2001 to HK$97,669,000 in the 2002 period as a result of the expansion of retail
business and the increase in promotion costs for the "3D-GOLD" and "La Milky
Way" products and brands for the period.
Profit attributable to shareholders was HK$45,552,000 (2001: HK$30,277,000),
attaining a growth of 50.5%.
Interim Dividend
The Directors do not recommend the payment of an interim dividend in respect
of the nine months ended 31st December, 2002 (2001: Nil).
Purchase, sale and redemption of the Company's listed securities
In July 2002, the Company repurchased 1,560,000 of its own ordinary shares on
The Stock Exchange of Hong Kong Limited at a cash consideration of HK$178,380.
The lowest and highest prices paid for the above repurchases were respectively
HK$0.113 and HK$0.116 per share. The repurchased shares were cancelled and an
amount of HK$15,600, equivalent to the nominal value of these shares, was
transferred from contributed surplus to capital redemption reserve.
Save as disclosed above, neither the Company nor any of its subsidiaries
purchased, sold or redeemed any of the Company's listed securities during the
nine months ended 31st December, 2002.
This announcement is made pursuant to paragraph 2 of the Listing Agreement.
By Order of the Board
Lam Sai Wing
Chairman
Hong Kong, 19th February, 2003