irasia.com


Lung Kee (Bermuda) Holdings Limited

INTERIM RESULTS

The directors (the "Directors") of Lung Kee (Bermuda) Holdings Limited (the "Company") are pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30th September, 1999 as follows:


                                                         Six months ended
                                                           30th September,
                                                         1999         1998
                                           Notes      HK$'000      HK$'000

Turnover                                              404,136      344,163
                                                     ========     ========


Operating profit                                       76,713       45,519
Share of result of
   a jointly controlled entity                            168          108
Share of result of an associated company                    -         (332)
                                                     --------     --------

Profit before taxation                                 76,881       45,295
Hong Kong Taxation                          (1)        (9,046)      (6,918)
Taxation in jurisdictions outside Hong Kong (1)        (4,000)           -
                                                     --------     --------

Profit before minority interests                       63,835       38,377
Minority interests                                    (13,150)      (7,158)
                                                     --------     --------

Profit attributable to shareholders                    50,685       31,219
                                                     ========     ========

Dividends                                   (2)        22,923       11,387
                                                     ========     ========
Earnings per share                          (3)
  Basic                                           13.35 cents   8.23 cents
                                                  ===========   ==========

  Diluted                                         13.10 cents   8.19 cents
                                                  ===========   ==========

Notes:

(1) Taxation

Hong Kong Profits Tax is calculated at the rate of 16% (1998: 16%) of the estimated assessable profit for the period. There was no significant unprovided deferred taxation for the period. Taxation in jurisdictions outside Hong Kong is calculated based on the applicable rates in those jurisdictions.

(2) Dividends


                                                      Six months ended
                                                       30th September,
                                                      1999         1998
                                                   HK$'000      HK$'000

Interim dividend declared by the Company -
HK$6 cents per share
(1998: HK$3 cents per share)                        22,923       11,387
                                                 =========    =========

(3) Earnings Per Share

The calculation of the basic and diluted earnings per share for the six months ended 30th September, 1999 is based on the following data:

                                                         Six months ended
                                                          30th September,
                                                         1999         1998
                                                      HK$'000      HK$'000

Earnings

Earnings for the purpose of
   basic earnings per share                            50,685       31,219

Effect of dilutive potential ordinary shares:
   Adjustment to the share of result
   of subsidiary based on
   dilution of its earnings per share                    (555)         (60)
                                                  -----------  -----------
Earnings for the purpose
   of diluted earnings per share                       50,130       31,159
                                                  ===========  ===========

Number of shares

Weighted average number of ordinary shares
   for the purpose of basic earnings per share    379,559,375  379,559,375

Effect of dilutive potential ordinary shares;
  options                                           3,024,211      721,171
                                                  -----------  -----------
Weighted average number of ordinary shares
   for the prupose of diluted earnings per share  382,583,586  380,280,546
                                                  ===========  ===========

INTERIM DIVIDEND

The Directors have declared an interim dividend of 6 cents (1998: 3 cents) per share in respect of the six months ended 30th September, 1999 to be payable on 22nd December, 1999 to shareholders whose names are on the Register of Members on 21st December, 1999.

BUSINESS REVIEW AND PROSPECTS

The Group enjoyed continuous growth in turnover and profit for the first half year. For the six months ended 30th September, 1999, the Group has achieved a turnover amounting to HK$404 million, representing a growth of 17.43 per cent as compared with HK$344 million for the same period in previous year. Profit attributable to shareholders for the six months ended 30th September, 1999 amounted to HK$51 million, representing a growth of 62.35 per cent as compared with HK$31 million for the same period in the previous year.

The sales and profit of the Group had gradually returned to normal in the wake of the stabilization of the overall economy. As prices had started to stabilize, profit also increased accordingly.

The Group's business of mould base kept growing. The plants in Hong Kong, Dongguan and Shanghai in the People's Republic of China ("PRC") continued to produce quality mould base for the Group.

The new plant in Heyuan, PRC was successfully put into operation. With the gradual decrease in the cost of production, it will make positive contribution to the profit of the Group in the future. The plant in Dongguan, PRC has started to increase production of high value-added products. As for the plant in Guangzhou, PRC, the export of high quality products continued to increase by virtue of its smooth production. The business in Shanghai, PRC, Malaysia, Singapore and Japan also increased steadily.

The Group's business of mould steel trading continued to maintain steady growth. Prices are steady and the varieties of products have been extended to include, for example, the Alcoa aluminium alloy products from the United States. The Group will continue to upgrade its services and provide comprehensive technical support with a view to increasing market share.

The extension project of the plant in Heyuan, PRC will commence construction next year. It is expected that the extension part will be put into use one year thereafter, by which time the productivity will be further enhanced.

Having stood the severe test of the recent financial turmoil and with the concerted effort of all staff, the Group has succeeded in saving costs, controlling credit, improving inventory level and reducing financial expenses so that its profit can return to the former level.

The Group will continue to be a market leader in the mould industry and its business will have a more steady development.

YEAR 2000 COMPLIANCE

The Group recognizes the Year 2000 problem as a global problem and places the highest priority towards the task of ensuring conformity. The Directors not only have a keen interest in the project but also play an active role in its development.

The Group's conformity guidelines follows the British Standards Institutes DISC PD2000-1 definition and only gives compliance rating to systems which conform to the rules specified by the above standard. The primary goal of the Year 2000 task force is to ensure that all the Group's core business system will perform date related calculations and comparisons without errors, before, on and after 1st January, 2000.

The project started in January 1998 and headed by the MIS manager leading a group of Systems analyst, Programmers and Technical support staff. This task force has conducted testing of not just computers hardware and software but also all other affected equipment which uses dates including embedded microchip systems, telecommunications equipment, time card systems and alarm systems. The Group has also ensured all products it supply to its customers are Year 2000 compliant.

The MIS department has already allocated over 40% of its resources towards the Year 2000 project and expensed HK$450,000. The majority of the cost is derived from human resources with a small percentage for the replacement, upgrade and modification of all non-compliant equipment (most equipment was found to be compliant).

The Group completed the upgrade of its entire core business systems, and removal of non-compliant equipment. To ensure smooth operation during the affected periods, the Group is monitoring the operation performance of all its new systems.

The Group has formulated risk assessment based on their questionnaire replies from its financial partners, suppliers, customers and other business associates. Contingency plans for all its core systems have also been designed and tested; these plans include the use of backup systems and substitute systems, all of which have been tested.

With regards to external influence, the Group does not outsource its development, nor does it rely on external data processing facilities, impact from this category can be considered as minimal. However taking into consideration of public facilities and their compliance conformity, the Group takes a passive role and relies on the assurances from the organization in some form of official statement.

All the Group's critical business systems are Year 2000 compliance and it is currently in the monitoring stage; the amount of resources allocated has been reduced to about 10% and an estimated budget of HK$100,000.

In the current and previous financial years, the Group has spent insignificant amounts on new equipment and software, and therefore have all been charged to the respective year's profit and loss accounts, in respect of Year 2000 costs. Such method has been made in accordance with the generally accepted accounting standards.

The Group will ensure that the Year 2000 will cause minimum to no impact on its business and its business partners, and continue to provide the quality it always has both in service and the products it manufacture.

CLOSURE OF REGISTER OF MEMBERS

The Register of Members of the Company will be closed from 20th December, 1999 to 21st December, 1999, both days inclusive, during which period no share transfers will be effected.

In order to qualify for the abovementioned dividend, all share certificates accompanied by the completed transfer forms either overleaf or separate or Standard Transfer Form, must be lodged with the Hong Kong Branch Registrars of the Company, Central Registration Hong Kong Limited of 17th Floor, 183 Queen's Road East, Hong Kong for registration not later than 4:00 p.m. on 17th December, 1999.

DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS IN SHARES

As at 30th September, 1999, the interests of the directors, chief executives and their associates in the share capital of the Company and its associated corporations recorded in the register kept by the Company pursuant to section 29 of the Securities (Disclosure of Interests) Ordinance (the "SDI Ordinance") were as follows:

Name of Direct            Personal      Family       Corporate      Other 
                         interests   interests       interesrs  interests

Siu Tit Lung             8,904,875         ---     196,875,000        ---
(Notes 1, 2 & 4)
Siu Yuk Lung             8,904,875         ---     196,875,000        ---
(Notes 1, 3 & 4)
Mak Koon Chi             2,000,000         ---             ---        ---
Wai Lung Shing           2,000,000         ---             ---        ---
Fung Wai Hing              312,500         ---             ---        ---

Notes:

(1) Messrs. Siu Tit Lung and Siu Yuk Lung jointly held 7,342,375 shares in the Company and each owned a further 1,562,500 shares in the Company registered in their own name.

(2) Rickdee Investments Limited, which is wholly-owned by a discretionary trust of which Mr. Siu Tit Lung and his family members are beneficiaries, held 37,500,000 shares in the Company.

(3) Robin Hill Investments Limited, which is wholly-owned by a discretionary trust of which Mr. Siu Yuk Lung and his family members are beneficiaries, held 37,500,000 shares in the Company.

(4) Pan Island Investments Limited, which is wholly-owned by a discretionary trust of which Messrs. Siu Tit Lung and Siu Yuk Lung and certain members of their families are beneficiaries, held 159,375,000 shares in the Company.

As at 30th September, 1999, in addition to the interests stated above, certain directors also held share options granted to them under the Employees' Share Option Scheme of the Company and its subsidiary entitling them to subscribe for the following number of shares of the Company and its subsidiary:

Directors                                  Subscription price  Number of
                                                    per share     shares
The Company                                               HK$

Siu Tit Lung                                            1.865   300,000
                                                        1.205   300,000
                                                         0.55   300,000
                                                        0.725   400,000

Siu Yuk Lung                                            1.865   300,000
                                                        1.205   300,000
                                                         0.55   300,000
                                                        0.725   400,000

Mak Koon Chi                                            1.865   300,000
                                                        1.205   300,000
                                                         0.55   300,000
                                                        0.725   400,000

Wai Lung Shing                                          1.865   300,000
                                                        1.205   300,000
                                                         0.55   300,000
                                                        0.725   400,000

Fung Wai Hing                                           1.865   300,000
                                                        1.205   300,000
                                                         0.55   300,000
                                                        0.725   400,000

The subsidiary of the Company, Lung Kee Metal Holdings Limited

                                                           US$
Mak Koon Chi                                              0.42    450,000
                                                          0.13    450,000

Wai Lung Shing                                            0.42    450,000
                                                          0.13    450,000

Save as disclosed above and other than certain nominee shares in subsidiaries held in trust for the Group, none of the directors, chief executives or their associates have any other interests in the share capital of the Company or any of its associated corporations (as defined in the SDI Ordinance).

SUBSTANTIAL SHAREHOLDERS

As at 30th September, 1999 according to the register required to be kept under section 16(1) of the SDI Ordinance, the shareholders who were interested in 10% or more of the issued share capital of the Company were as follows:

                                                     Number of shares held
Pan Island Investments Limited                                  159,375,00
Rickdee Investments Limited                                     37,500,000
Robin Hill Investments Limited                                  37,500,000

Save as disclosed above, no other person is recorded in the register as having an interest of 10% or more of the issued share capital of the Company.

CODE OF BEST PRACTICE

During the six months ended 30th September, 1999, the directors are not aware of any information that would indicate that the Company was not in compliance with the "Code of Best Practice" as set out in the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

PURCHASE, SALE OR REDEMPTION OF SECURITIES

There was no purchase, sale or redemption of shares or other securities of the Company by the Company or any of its subsidiaries during the six months ended 30th September, 1999.

On behalf of the Board
Siu Yuk Lung
Managing Director

Hong Kong, 3rd December, 1999


Source: Lung Kee (Bermuda) Holdings Limited
  • Interim Reports
  • Company's Index
  • irasia.com

  • © Copyright 1996-2024 irasia.com Ltd. All rights reserved.
    DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any information provided on this website. Under no circumstances shall irasia.com Ltd be liable for damages resulting from the use of the information provided on this website.
    TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited.
    TERMS OF USE: Please read the Terms of Use governing the use of our website.