TONG REN TANG<08069> - Results Announcement (Q3, 2002, Summary)
Tong Ren Tang Technologies Co. Ltd.<08069> - 3rd Quarterly Results Announcement
Tong Ren Tang Technologies Co. Ltd. announced on 25/10/2002
(stock code: 08069)
Year end date :31/12/2002
Currency :RMB
Auditors' report :N/A
Review of 3rd Quarterly Report by :Audit Committee
Important Note :
This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com
(Unaudited) (Unaudited)
Current Last Corresponding
Period Period
from 01/01/2002 from 01/01/2001
to 30/09/2002 to 30/09/2001
RMB'000 RMB'000
Turnover : 551,480 364,021
Profit/(Loss) from Operations : 110,579 60,099
Finance cost : (2,659) (5,472)
Share of Profit/(Loss) of Associates : N/A N/A
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : 109,520 65,571
% Change Over the Last Period : +67.03%
EPS / (LPS)
Basic (in dollar) : RMB 0.599 RMB 0.359
Diluted (in dollar) : RMB 0.599 RMB 0.359
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 109,520 65,571
3rd Quarterly Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 3rd Quarterly Dividends : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A
(bdi: both days inclusive)
For and on behalf of
Tong Ren Tang Technologies Co. Ltd.
Signature :
Name : Edward Choi
Title :Company Secretary
Responsibility statement
The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for the
accuracy of the information contained in this results announcement form
(the "Information") and confirm, having made all reasonable inquiries,
that to the best of their knowledge and belief the Information are
accurate and complete in all material respects and not misleading and
that there are no other matters the omission of which would make the
Information herein inaccurate or misleading. The Directors acknowledge
that the Stock Exchange has no responsibility whatsoever with regard
to the Information and undertake to indemnify the Exchange against all
liability incurred and all losses suffered by the Exchange in connection
with or relating to the Information.
Remark:
1. Basis of presentation
The accompanying unaudited results are prepared in accordance with
the International Financial Reporting Standards as published by the
International Accounting Standards Board. The accounting policies
adopted are consistent with those followed in the preparation of the
Group's annual financial statements for the year ended
31 December 2001.
2. Turnover
The Group's turnover is derived principally from the sales of Chinese
Patent Medicine.
An analysis of the Group's turnover by geographical regions is as
follows:
For the nine months
ended 30 September
2002 2001
RMB'000 RMB'000
Sales of Medicine
Domestic 526,774 340,760
Overseas 18,043 15,493
Agency fee income - domestic 6,663 7,768
--------- ---------
551,480 364,021
========= =========
3. Taxation
Pursuant to the relevant income taxation regulations of the People's
Republic of China (the "PRC"), a high-technology enterprise ("HTE")
located in a designated area of Beijing Economic and Technological
Development Zone ("BETDZ") is subject to Enterprise Income Tax
("EIT") at a rate of 15%. Moreover, upon approval by the relevant
local tax bureau, such a HTE is entitled to an exemption from EIT
for the first three years from its commencement of operations and a
50% reduction for the three years thereafter. The certification as a
HTE is subject to an annual review by the relevant government bodies.
In addition, an amount equal to the EIT exemption or reduction from
15% has to be appropriated to a non-distributable tax reserve.
In August 2001, the Company renewed the HTE certification granted by
Zhongguancun Hi-Tech District Committee for the year of 2001. The
Company was registered in the BETDZ and has obtained an approval from
the BETDZ Local Tax Bureau to enjoy an EIT exemption for three years
commencing from 2000 and a 50% reduction in EIT for the three years
thereafter.
For the period ended 30 September 2002, an amount equal to the 15%
EIT exempted amounting to approximately RMB16,320,,000
(2001: RMB12,388,000) was transferred to the tax reserve.
The reconciliation of the tax expense of the Group is as follows:
For the nine months
ended 30 September
2002 2001
RMB'000 RMB'000
Accounting profit 113,238 65,571
--------- ---------
Tax rate 15.9% 15.0%
EIT at tax rate 18,049 9,836
Adjustment on EIT - 2,552
Effect on tax benefit of being
a HTE (16,320) (12,388)
--------- ---------
Tax expense 1,729 -
========= =========
For the period ended 30 September 2002, the tax expense of the Group
represented the EIT payable by two subsidiaries of the Company. Both
subsidiaries are subject to EIT at a rate of 33%. Other than these,
the Company's other subsidiaries and joint venture had no material
operating activities nor taxable profits for the period and
therefore no EIT provision was made.
4. Earnings per share
The calculation of the basic earnings per share for the nine months
ended 30 September 2002 was based on the net profit of approximately
RMB109,520,000 (2001: RMB65,571,000) divided by the weighted average
number of shares issued during the period of 182,800,000 shares
(2001: 182,800,000 shares).
Diluted earnings per share equal basic earnings per share because
there were no potential dilutive ordinary shares outstanding during
the period.
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