TONG REN TANG<08069> - Results Announcement (Q1, 2003, Summary)
Tong Ren Tang Technologies Co. Ltd. announced on 23/04/2003
(stock codes: Ord: 08069 & War: Nil )
Year end date :31/12/2003
Currency :RMB
Auditors' report :N/A
Review of 1st 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 01/01/2003 from 01/01/2002
to 31/03/2003 to 31/03/2002
RMB'000 RMB'000
Turnover : 271,629 193,802
Profit/(Loss) from Operations : 50,793 35,206
Finance cost : (579) (739)
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 : 48,345 35,645
% Change Over the Last Period : +35.63%
EPS / (LPS)
Basic (in dollar) : RMB 0.26 RMB 0.19
Diluted (in dollar) : RMB 0.26 RMB 0.19
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 48,345 35,645
1st Quarterly Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 1st 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.
Remarks:
1. Basis of presentation
The Company was incorporated as a joint stock company with
limited liability in the People's Republic of China (the "PRC")
on 22 March 2000 and, upon the placing of its H shares, was
listed on the GEM on 31 October 2000. Its ultimate holding
company is China Beijing Tong Ren Tang Group Co. Ltd.,
incorporated in Beijing, the PRC.
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 2002.
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 three months
ended 31 March
2003 2002
RMB'000 RMB'000
Sales of medicine
Domestic 258,336 183,525
Overseas 10,976 7,301
Agency fee income - domestic 2,317 2,976
--------- ---------
271,629 193,802
========= =========
3. Taxation
Pursuant to the relevant regulations of 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 March 2002, the Company renewed its HTE certification granted
by Beijing Science Technology Committee for the years of 2002
and 2003. The Company was registered in the BETDZ and has
obtained an approval from the BETDZ Local Tax Bureau
("BETDZ LTB") (Document Jingdishuikaijianmianfa [2000] No.23)
to enjoy an EIT exemption for three years commencing from 2000
and a 50% reduction in EIT for the three years thereafter. In
October 2002, Beijing Administration of Taxation issued a
circular, namely Jingguoshuihan [2002] No. 632, stating that a
HTE can enjoy the preferential tax treatment only if both the
registration and operation are in the designated area. However,
BETDZ LTB has also verbally confirmed to the Company that the
above EIT preferences should be available to the Company as
long as the Company's registered address is in BETDZ and it
remains as a HTE.
For the period ended 31 March 2003, an amount equal to the 7.5%
EIT exempted amounting to approximately RMB3,949,000
(2002: RMB5,420,000) was transferred to the tax reserve.
The reconciliation of the tax expense of the Group is as
follows:
For the three months
ended 31 March
2003 2002
RMB'000 RMB'000
Accounting profit 51,372 35,945
--------- ---------
Tax rate 13.36% 15.71%
EIT at tax rate 6,861 5,648
Effect of tax benefits of being
a HTE (3,949) (5,420)
--------- ---------
Tax expense 2,912 228
========= =========
Under PRC income tax law, the Company's subsidiaries and
joint ventures within PRC are generally subject to EIT at
a rate of 33% on the taxable income. Foreign entities are
subject to income tax as required by tax laws of countries
where those entities operate, respectively. However, as
these foreign entities had no material operating activities
nor taxable profits for the period, no income tax provision
was made.
4. Earnings per share
The calculation of the basic earnings per share for the
three months ended 31 March 2003 was based on the net
profit of approximately RMB48,345,000 (2002: RMB35,645,000)
divided by the weighted average number of shares issued
during the period of 182,800,000 shares (2002: 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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