TONG REN TANG<08069> - Results Announcement (Q1, 2004, Summary)
Tong Ren Tang Technologies Co. Ltd. announced on 26/04/2004:
(stock code: 08069)
Year end date :31/12/2004
Currency :RMB
Auditors' report :N/A
1st Quarterly Report Reviewed 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 01/01/2004 from 01/01/2003
to 31/03/2004 to 31/03/2003
RMB'000 RMB'000
Turnover : 314,165 271,629
Profit/(Loss) from Operations : 65,511 50,793
Finance cost : 1,007 (579)
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 : 58,950 48,345
% Change Over the Last Period : +21.94%
EPS / (LPS)
Basic (in dollar) : RMB 0.32 RMB 0.26
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 58,950 48,345
1st Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 1st Quarter 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
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 consolidated 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 2003.
2. Turnover
The Group's turnover is derived principally from the sales of
Chinese Patent Medicine.
An analysis of the Group's turnover is as follows:
For the three months
ended 31 March
2004 2003
RMB'000 RMB'000
Sales of medicine:
Domestic 304,999 258,336
Overseas 9,141 10,976
Agency fee income - domestic 25 2,317
--------- ---------
314,165 271,629
========= =========
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
to 2004. 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 2004, an amount equal to the 7.5%
EIT exempted amounting to approximately RMB4,733,000
(2003: RMB3,949,000) 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
2004 2003
RMB'000 RMB'000
Accounting profit 64,504 51,372
--------- ---------
Tax rate 14.73% 13.36%
EIT at tax rate 9,503 6,861
Effect of tax benefits of being
a HTE (4,733) (3,949)
--------- ---------
Tax expense 4,770 2,912
========= =========
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 periods ended 31 March 2004
and 2003, 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.
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 the basic earnings per share for the
three months ended 31 March 2004 was based on the net
profit of approximately RMB58,950,000 (2003: RMB48,345,000)
divided by the weighted average number of shares issued
during the period of 182,800,000 shares (2003: 182,800,000
shares).
The Company had no potential diluted shares for the three
months ended 31 March 2004 (2003: Nil).
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