TONG REN TANG<08069> - Results Announcement (Final, 2003, Summary)
Tong Ren Tang Technologies Co. Ltd. announced on 27/02/2004:
(stock code: 08069 )
Year end date :31/12/2003
Currency :RMB
Auditors' report :Unqualified
Interim Report Reviewed by :N/A
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 01/01/2003 from 01/01/2002
to 31/12/2003 to 31/12/2002
RMB'000 RMB'000
Turnover : 864,976 662,891
Profit/(Loss) from Operations : 190,594 144,891
Finance cost : (3,241) (4,218)
Share of Profit/(Loss) of Associates : (421) (477)
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : 174,343 147,234
% Change Over the Last Period : +18.41%
EPS / (LPS)
Basic (in dollar) : RMB 0.95 RMB 0.81
Diluted (in dollar) : RMB 0.95 RMB 0.81
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 174,343 147,234
Final Dividends per Share : RMB0.43 RMB0.39
(specify if with other options) : N/A N/A
B/C Dates for Final Dividends :18/04/2004 to 18/05/2004 bdi.
Payable Date : 31/08/2004
B/C Dates for (-) General Meeting :18/04/2004 to 18/05/2004 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
to the Information and undertake to indemnify the Exchange against all
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.
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 audited financial statements are prepared in accordance
with 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 revenue is as follows:
2003 2002
RMB'000 RMB'000
Sales of medicine:
Domestic 820,243 631,809
Overseas 35,743 23,324
Agency fee income - domestic 8,954 7,731
Others 36 27
--------- ---------
864,976 662,891
========= =========
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 year ended 31 December 2003, an amount equal to the 7.5%
EIT exempted amounting to approximately RMB13,159,000
(2002: RMB28,390,000) was transferred to the tax reserve.
Details of taxation during the year are as follows:
2003 2002
RMB'000 RMB'000
Current income tax expense 12,950 2,786
Deferred tax debit/(credit) 3,543 (3,739)
--------- ---------
16,493 (953)
========= =========
The reconciliation of the taxation of the Group is as follows:
2003 2002
RMB'000 RMB'000
Accounting profit 193,414 148,632
--------- ---------
Tax at the statutory tax rate
of the Company of 33% 63,827 49,049
Non-deductible permanent
differences 3,839 1,876
Effect of different applicable
EIT rates upon expected reversal
of temporary difference 710 10,581
Effect of tax benefits of being
a HTE (48,622) (62,459)
Effect of different tax rates and
tax refund for consolidated
subsidiaries and joint ventures (3,261) -
--------- ---------
Taxation 16,493 (953)
========= =========
The provision for PRC current income tax is based on the
statutory rate of 33% of the assessable income of each of
the companies and enterprises now comprising the Group as
determined in accordance with the relevant PRC income tax
rules and regulations for the years ended 31 December 2003
and 2002, except for Beijing Tong Ren Tang Hebei Chinese
Medicinal Raw Materials Technologies Co., Limited which is
taxed at rate of 2.31% of total revenue. Beijing Tong Ren
Tang Zheijiang Chinese Medicinal Raw Materials Co., Limited
and Beijing Tong Ren Tang Nanyang Shanzhuyu Co., Limited
recognized tax refund from local tax bureaus in current year,
amounting to approximately RMB2.4 million.
Foreign entities are subject to income tax as required by tax
laws of countries where those entities operate, respectively,
at rates ranging from 2.00% to 39.96%
4. Earnings per share
The calculation of basic earnings per share is based on
the net profit for the year attributable to ordinary
shareholders of approximately RMB174,343,000 (2002: RMB147,234,000)
divided by the weighted average number of shares during
the year 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 year.
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