TONG REN TANG<08069> - Results Announcement (Q2, 2004, Summary) Tong Ren Tang Technologies Co. Ltd. announced on 03/08/2004: (stock code: 08069 ) Year end date :31/12/2004 Currency :RMB Auditors' report :N/A 2nd 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 30/06/2004 to 30/06/2003 RMB'000 RMB'000 Turnover : 612,100 531,812 Profit/(Loss) from Operations : 128,074 99,627 Finance cost : 1,400 (1,156) 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 : 116,167 92,979 % Change Over the Last Period : +24.94% EPS / (LPS) Basic (in dollar) : RMB 0.635 RMB 0.509 Diluted (in dollar) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit (Loss) after ETD Items : 116,167 92,979 2nd Quarter Dividends per Share : NIL NIL (specify if with other options) : N/A N/A B/C Dates for 2nd 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 : 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 Group has prepared the accompanying unaudited results in accordance with the International Accounting Standard 34 "Interim Financial Reporting". 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 six months ended 30 June 2004 2003 RMB'000 RMB'000 Sales of medicine: Domestic 589,880 505,196 Overseas 22,195 21,829 Agency fee income - domestic 25 4,787 --------- --------- 612,100 531,812 ========= ========= 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 June 2004, the Company renewed its HTE certification granted by Beijing Science Technology Committee for the next two years. 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 30 June 2004, an amount equal to the 7.5% EIT exempted amounting to approximately RMB9,371,000 (2003: RMB7,492,000) was transferred to the tax reserve. The reconciliation of the tax expense of the Group is as follows: For the six months ended 30 June 2004 2003 RMB'000 RMB'000 Accounting profit 126,674 100,783 --------- --------- Tax rate 14.89% 14.04% EIT at tax rate 18,865 14,154 Effect of tax benefits of being a HTE (9,371) (7,492) --------- --------- Tax expense 9,494 6,662 ========= ========= 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 30 June 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 six months ended 30 June 2004 was based on the net profit of approximately RMB116,167,000 (2003: RMB92,979,000) 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 dilutive potential shares for the six months ended 30 June 2004 (2003: Nil). |