TONG REN TANG<08069> - Results Announcement (Final, 2002, Summary)
Tong Ren Tang Technologies Co. Ltd. announced on 12/03/2003:
(stock code :08069)
Year end date :31/12/2002
Currency :RMB
Auditors' report :Unqualified
Review of Quarterly Report by :Audit Committee & Auditors
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
(Audited) (Audited)
Current Last
Corresponding
Period Period
from 01/01/2002 from 01/01/2001
to 31/12/2002 to 31/12/2001
RMB'000 RMB'000
Turnover : 662,891 497,373
Profit/(Loss) from Operations : 144,891 85,327
Finance cost : (4,218) (7,614)
Share of Profit/(Loss) of Associates : (477) (173)
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : 147,234 99,798
% Change Over the Last Period : +47.53 %
EPS / (LPS)
Basic (in dollar) : RMB 0.81 RMB 0.55
Diluted (in dollar) : RMB 0.81 RMB 0.55
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 147,234 99,798
Final Dividends per Share : RMB0.39 RMB0.30
(specify if with other options) : N/A N/A
B/C Dates for Final Dividends : 18/04/2003 to 19/05/2003 bdi.
Payable Date : 31/08/2003
B/C Dates for Annual General Meeting : 18/04/2003 to 19/05/2003 bdi.
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 audited results are prepared in accordance with
the International Financial Reporting Standards as published by
the International Accounting Standards Board.
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:
2002 2001
RMB'000 RMB'000
Sales of medicine
Domestic 631,809 472,322
Overseas 23,324 16,707
Agency fee income - domestic 7,731 8,344
Others 27 -
--------- ---------
662,891 497,373
========= =========
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 year 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 (ref.
Jingguoshuihan [2002] 632], stating that a HTE can enjoy the
tax preference only if both the registration and operation are
in designated area. 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.
However, the preferential tax treatment the entities comprising
the Group obtained, including the EIT exemption as mentioned in
the preceding paragraph, may be subject to review by higher
authorities. Should the EIT exemption not be available to the
Company, an additional EIT liability of approximately
RMB62,459,000 (2001: RMB39,611,000) may arise. Management
believes that the possibility of such a liability is unlikely.
For the year ended 31 December 2002, an amount equal to the 15%
EIT exempted amounting to approximately RMB28,390,000
(2001: RMB18,766,000) was transferred to the tax reserve.
Details of taxation credited during the year are as follows:
2002 2001
RMB'000 RMB'000
Current income tax expense(credit) 2,786 (6,680)
Deferred tax credit (3,739) (230)
--------- ---------
(953) (6,910)
========= =========
The reconciliation of the taxation of the Group is as
follows:
2002 2001
RMB'000 RMB'000
Accounting profit 148,632 92,768
--------- ---------
Tax at the statutory rate
of the Company of 33% 49,049 30,613
Non-deuctible permanent
differences 1,876 7,290
Temporary difference for which
no deferred taxation is
recognized - 1,708
Effect of different applicable
EIT rates upon expected reversal
of temporary difference 10,581 531
Effect of tax benefits of being
a HTE (62,459) (40,372)
Application of the Parent Company's
tax rate in 2000 prior to issuance
of income tax registration
certificate and refund in 2001 - (6,680)
--------- ---------
Taxation (953) (6,910)
========= =========
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 year, no income tax provision
was made.
4. Earnings per share
The calculation of the basic earnings per share is based on
the net profit for the year attributable to ordinary
shareholders of approximately RMB147,234,000
(2001: RMB99,798,000) divided by the weighted average number
of shares during the year 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 year.
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