TONG REN TANG<08069> - Results Announcement (Final, 2004, Summary)
Tong Ren Tang Technologies Co. Ltd. announced on 09/03/2005:
(stock code: 08069 )
Year end date :31/12/2004
Currency :RMB
Auditors' report :Unqualified
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 01/01/2004 from 01/01/2003
to 31/12/2004 to 31/12/2003
RMB'000 RMB'000
Turnover : 983,249 864,976
Profit/(Loss) from Operations : 229,008 190,594
Finance cost : (3,242) 3,241
Share of Profit/(Loss) of Associates : (344) (421)
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : 205,607 174,343
% Change Over the Last Period : +17.93%
EPS / (LPS)
Basic (in dollar) : RMB 1.12 RMB 0.95
Diluted (in dollar) : RMB 1.12 RMB 0.95
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 205,607 174,343
Final Dividends per Share : RMB 0.46 RMB 0.43
(specify if with other options) : N/A N/A
B/C Dates for Final Dividends : to be announced
Payable Date : to be announced
B/C Dates for Annual General Meeting : to be announced
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 : CHAN NGAI CHI
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:
a) Basis of Presentation
The Company was incorporated as a joint stock company with
limited liability in the People's Republic of China (the ˇ§PRCˇ¨)
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.
b) Revenue
An analysis of the Group's revenue is as follows:
2004 2003
RMBˇ¦000 RMBˇ¦000
Sales of medicine:
Domestic 942,268 820,243
Overseas 40,457 35,743
Agency fee income ˇV 8,954
Others 524 36
--------- ----------
983,249 864,976
======= ======
c) Profit before taxation
Profit before taxation was arrived at after (crediting) and
and charging the following:
2004 2003
RMBˇ¦000 RMBˇ¦000
Interest income (1,463) (3,200)
Agency fee income ˇV (8,954)
Exchange loss/(gain), net 181 (1,298)
Provision/(reversal) of provision
for doubtful debts 4,859 (1,136)
Cost of inventories sold 370,831 343,507
Staff costs
ˇV Salary and wages 94,121 86,507
ˇV Staff welfare 13,039 10,344
ˇV Contribution to retirement
benefits 13,354 10,260
Depreciation of property, plant and
equipment 25,110 21,767
Amortization of land use rights 906 610
Amortization of other long-term
assets 845 618
Operating lease rentals 11,016 11,987
Auditorsˇ¦ remuneration 1,100 1,100
Research and development
expenses 3,830 4,128
Advertising expenses 34,463 40,163
Loss on disposal of property, plant
and equipment 325 528
d) 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 (ˇ§EITˇ¨) 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 the 15% tax
rate has to be appropriated to a non-distributable tax reserve.
In June 2004, the Company renewed its HTE certification granted
by Beijing Science-Technology Committee for the years of 2004
and 2005. The Company was registered in the BETDZ and has
obtained an approval from the BETDZ Local Tax Bureau
(ˇ§BETDZ LTBˇ¨) (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.
Moreover, BETDZ LTB has also verbally confirmed to the
Company that the above EIT preferences should be available to
the Company as long as the Companyˇ¦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 as Beijing Administration of Taxation issued a circular
in October 2002, 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. Should the
EIT exemption not be available to the Company, an additional EIT
liability for this year is approximately RMB60,334,000 (2003:
RMB48,622,000, 2002: RMB62,459,000, 2001: RMB39,611,000).
Management believes that the possibility of such liabilities arising
are unlikely.
For the year ended 31 December 2004, an amount equal to the
7.5% (2003: 7.5%) EIT exempted amounting to approximately
RMB17,745,000 (2003: RMB13,159,000) was transferred to the
tax reserve.
Details of taxation during the year are as follows:
2004 2003
RMBˇ¦000 RMBˇ¦000
Current income tax expense 18,035 12,950
Deferred tax 127 3,543
------- -------
18,162 16,493
===== =====
The reconciliation of the statutory tax rate to the effective tax rate
is as follows:-
2004 2003
RMBˇ¦000 RMBˇ¦000
Accounting profit 225,422 193,414
Tax at the statutory tax rate
of the Company of 33% 74,389 63,827
Non-deductible permanent
differences 3,976 3,839
Effect of different applicable EIT
rates upon expected reversal of
temporary difference 784 710
Effect of tax benefits of being a
HTE (60,334) (48,622)
Effect of different tax rates and tax
refund for consolidated subsidiaries
and joint ventures (653) (3,261)
------- -------
Taxation 18,162 16,493
===== =====
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 2004 and 2003,
except for TRT Hebei which is taxed at rate of 2.31% of total
revenue. TRT Nanyang recognized tax refund from local tax
bureau in current year, amounting to approximately RMB465,000.
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%.
e) Earnings per share
The calculation of basic earnings per share is based on the net
profit for the period attributable to ordinary shareholders of
approximately RMB205,607,000 (2003: RMB174,343,000)
divided by the weighted average number of shares during the
period of 182,800,000 shares (2003: 182,800,000 shares).
The Company had no potential dilutive shares for the year
2004 and 2003.
f) Segment information
No segment information is presented as the Group operates
primarily in one industry and geographical segment.
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