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ANNOUNCEMENT OF INTERIM RESULTS
SIX MONTHS ENDED 30TH SEPTEMBER, 1997
Financial Highlights
| Growth | |
| * Turnover - HK$332m | 18% |
| * Profit after taxation but before minority interest - HK$69m | 26% |
| * Profit attributable to shareholders - HK$54m | 0% |
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, 1997 as follows:
Notes:
(1) Taxation
Hong Kong Profits Tax is calculated at the rate of 16.5% (1996: 16.5%) of the estimated assessable profit for the period. There was no significant unprovided deferred taxation for the period.
(2) Dividends
(3) Earnings Per Share
The calculation of earnings per share is based on the Group's unaudited profit attributable to shareholders of HK$54,181,000 (1996: HK$54,177,000) and on the weighted average number of 375,579,406 shares in issue after the one-for-four bonus issue of shares alloted in August 1997 (the "Bonus Share Issue") during the period. Calculation of the earnings per share for 1996 was based on 368,665,044 shares in issue after the adjustment for the Bonus Share Issue.
No fully diluted earnings per share is shown as the exercise of subscription rights attached to the share options would not have a significant diluting effect on earnings.
INTERIM DIVIDEND
The Directors have declared an interim dividend of 6 cents (1996: 4.8 cents after adjusted for the Bonus Share Issue) per share in respect of the six months ended 30th September, 1997 to be payable on 30th December, 1997 to shareholders whose names are on the Register of Members on 29th December, 1997.
BUSINESS REVIEW AND PROSPECTS
The Group enjoyed continuous success for the first half year by showing continued growth in both turnover and profit within the period. For the six months ended 30th September, 1997, the Group has achieved a turnover amounting to HK$332 million, representing a growth of 18 per cent., as compared with HK$281 million for the same period in the previous year. Profit after taxation but before minority interest for the six months ended 30th September, 1997 amounted to HK$69 million, representing a growth of 26 per cent. as compared with HK$54 million for the same period in the previous year. Due to the dilution effect of the spin-off of mould base business, the profit attributable to shareholders maintained the last year level.
The Group's mould base business continues to grow, due mainly to the improved production efficiency in the Dongguan, People's Republic of China ("PRC") plant. This enhanced the quality and value added of the products.
The Group's another core business, mould steel trading, also continued to grow. The increased varieties of mould steel products will bring the steady contribution to the Group in future.
The new Shanghai (PRC) factory is undergoing trial production. It will become the production base for the Eastern China market when it reaches smooth operation. The construction of the Guangzhou (PRC) plant is in it's final stage. When completed by early next year, it will become the main factory for the development of the export market.
The rented factory in Malaysia maintained its production output and managed to fulfil the customer demand. The restructuring of the Japanese joint venture has been completed and this will contribute to the Group in future.
The restructuring of the machinery business has been completed. Due to the import duty on machinery adopted by the China government, the customer demand for machineries acquisition will decrease. It is expected that the performance of the machinery business will be ordinary. However, it does not affect much on the Group's overall business.
In order to increase the Group's production capacity, the Group plans to build another plant in the PRC. It will produce mould bases and is projected to be completed within two years.
The recent Asia financial turmoil has a negative effect on the Asian economy. It is generally expected that the economy will be slow down. However, the Group's core businesses are less affected by economic slow down. It is still expected that the Group will have steady growth and its market leader position in the mould industry will be unchanged.
CLOSURE OF REGISTER OF MEMBERS
The Register of Members of the Company will be closed from 22nd December, 1997 to 29th December, 1997, both days inclusive, during which period no share transfers will be effected.
In order to qualify for the above mentioned dividend, all share certificates accompanied by the completed transfer forms either overleaf or separate, 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 19th December, 1997.
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, 1997.
On behalf of the Board
Siu Tit Lung
Chairman
Hong Kong, 5th December, 1997
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