TONG REN TANG<08069> - Results Announcement (Q1, 2005, Summary)
Tong Ren Tang Technologies Co. Ltd. announced on 04/05/2005:
(stock code: 08069 )
Year end date :31/12/2005
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 01/01/2005 from 01/01/2004
to 31/03/2005 to 31/03/2004
RMB'000 RMB'000
Turnover : 303,862 314,165
Profit/(Loss) from Operations : 66,897 65,511
Finance cost : (1,201) (1,007)
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 : 61,378 58,950
% Change Over the Last Period : +4.12%
EPS / (LPS)
Basic (in dollar) : RMB 0.34 RMB 0.32
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 61,378 58,950
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
(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:
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.
2. Principal accounting policies
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 2004.
3. 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
2005 2004
RMB'000 RMB'000
Sales of medicine:
Domestic 300,914 304,999
Overseas 2,948 9,141
Agency fee income - 25
--------- ---------
303,862 314,165
========= =========
4. Finance (cost) income, net
For the three months
ended 31 March
2005 2004
RMB'000 RMB'000
Interest expenses on
bank loans repayable within 5 years (1,089) (669)
Interest income 188 259
Exchange (loss)/gain, net (297) (583)
Others (3) (14)
--------- ---------
(1,201) (1,007)
========= =========
5. Profit before taxation
Profit before taxation was determined after charging the following:
For the three months
ended 31 March
2005 2004
RMB'000 RMB'000
Depreciation of property,
plant and equipment 6,591 6,002
========= =========
6. 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 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 ("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. 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 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 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 period
would arise. Management believes that the possibility of
such liabilities arising is unlikely.
For the three months ended 31 March 2005, an amount equal to the
7.5% (2004: 7.5%) EIT exempted amounting to approximately
RMB4,962,000 (2004: RMB4,733,000) 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
2005 2004
RMB'000 RMB'000
Accounting profit 65,696 64,504
--------- ---------
Tax rate 14.08% 14.73%
EIT at tax rate 9,249 9,503
Effect of tax benefits of being
a HTE (4,962) (4,733)
--------- ---------
Tax expense 4,770 2,912
========= =========
The provision for PRC current income tax is based on the statutory
rate of 33% (2004: 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 2005 and 2004, 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%.
7. Earnings per share
The calculation of the basic earnings per share for the three months
ended 31 March 2005 was based on the net profit of approximately
RMB61,378,000 (2004: RMB58,950,000) divided by the weighted
average number of shares issued during the period of 182,800,000
shares (2004: 182,800,000 shares).
The Company had no potential dilutive shares for the three months
ended 31 March 2005 (2004: Nil).
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