TONG REN TANG<08069> - Results Announcement (Q3, 2004, Summary)
Tong Ren Tang Technologies Co. Ltd. announced on 21/10/2004:
(stock code: 08069 )
Year end date :31/12/2004
Currency :RMB
Auditors' report :N/A
3rd 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 30/09/2004 to 30/09/2003
RMB'000 RMB'000
Turnover : 820,275 711,178
Profit/(Loss) from Operations : 178,528 143,232
Finance cost : 2,553 (2,569)
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 : 161,744 133,835
% Change Over the Last Period : +20.85%
EPS / (LPS)
Basic (in dollar) : RMB 0.885 RMB 0.732
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 161,744 133,835
3rd Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 3rd 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 accompanying unaudited 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 nine months
ended 30 September
2004 2003
RMB'000 RMB'000
Sales of medicine:
Domestic 791,629 675,862
Overseas 28,621 29,189
Agency fee income - domestic 25 6,127
--------- ---------
820,275 711,178
========= =========
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 September 2004, an amount equal to
the 7.5% EIT exempted amounting to approximately RMB13,084,000
(2003: RMB10,782,000) was transferred to the tax reserve.
The reconciliation of the tax expense of the Group is as
follows:
For the nine months
ended 30 September
2004 2003
RMB'000 RMB'000
Accounting profit 175,975 145,801
--------- ---------
Tax rate 15.02% 14.36%
EIT at tax rate 26,434 20,934
Effect of tax benefits of being
a HTE (13,084) (10,782)
--------- ---------
Tax expense 13,350 10,152
========= =========
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 September 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
nine months ended 30 September 2004 was based on the net
profit of approximately RMB161,744,000 (2003: RMB133,835,000)
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 nine
months ended 30 September 2004 (2003: Nil).
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