INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1999
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 1999
HIGHLIGHTS
| Turnover was HK$2,713 million, up 32.9%.
Profit attributable to shareholders was HK$230 million, up 26.1%. Earnings per share were HK$0.88, up 25.6%. Interim dividend per share was HK$0.55, up 37.5%. The Construction Division achieved strong profit growth due to increased turnover and effective cost control. Construction works of the Private Sector Participation Scheme project in Tseung Kwan O was progressing ahead of schedule. Public sale of the housing units of this project is expected to be launched by the Housing Authority in the near future. The gross and outstanding values of construction contracts on hand at 31 October 1999 reached record levels of HK$16.2 billion and HK$10.5 billion respectively. Steady demand for concrete, aggregates and cement of the Construction Materials Division was maintained amid an increasingly competitive market environment with declining prices and volume. The second 300,000-tonne rotary kiln at the cement plant in Chongqing, when completed in December 1999, will lift the annual production capacity to one million tonnes. Continued healthy profit growth is anticipated for the second half of the year. |
RESULTS
The Directors of Shui On Construction and Materials Limited (the "Company") are pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 September 1999.
Six months ended 30 September
1999 1998
HK$million HK$million
Turnover 2,712.8 2,041.9
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Operating profit 264.9 202.9
Share of results of jointly
controlled entities 18.1 18.7
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Profit before taxation 283.0 221.6
Taxation (Note 1) (46.3) (36.2)
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Profit after taxation 236.7 185.4
Minority interests (6.5) (2.8)
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Profit attributable to shareholders 230.2 182.6
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Interim dividend 144.0 104.0
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Earnings per share (Note 2)
Basic / Diluted HK$0.88 HK$0.70
Interim dividend per share HK$0.55 HK$0.40
Notes:
1. Taxation
Six months ended 30 September
1999 1998
HK$million HK$million
The charge comprises:
Company and subsidiaries
Hong Kong profits tax 43.6 32.8
Income tax of other regions in
the People's Republic of China 0.1 -
Jointly controlled entities
Hong Kong profits tax 2.6 3.4
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Total 46.3 36.2
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Hong Kong profits tax has been provided at the rate of 16% (1998: 16%) on the estimated assessable profits for the period.
2. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
Six months ended 30 September
1999 1998
HK$million HK$million
Earnings for the purposes of basic and
diluted earnings per share 230.2 182.6
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million million
Weighted average number of ordinary shares
for the purposes of basic earnings per share 260.9 260.0
Effect of dilutive potential ordinary shares:
Share options 1.8 0.2
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Weighted average number of ordinary shares
for the purposes of diluted earnings per share 262.7 260.2
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3. Comparative figures
Certain comparative figures have been re-classified to conform with current period's presentation.
INTERIM DIVIDEND
The Directors have declared an interim dividend of HK$0.55 (1998: HK$0.40) per share to shareholders whose names appear on the Company's register of members on Wednesday, 1 December 1999. The interim dividend will be paid on Wednesday, 8 December 1999.
CLOSURE OF REGISTER OF MEMBERS
The register of members of the Company will be closed from Friday, 26 November 1999 to Wednesday, 1 December 1999, both days inclusive, during which period no transfer of shares will be effected.
In order to qualify for the interim dividend, all share transfers accompanied by the relevant share certificates must be lodged with the Company's branch share registrar in Hong Kong, Standard Registrars Limited, 5th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong not later than 4:00 p.m. on Thursday, 25 November 1999.
PURCHASE, SALE OR REDEMPTION OF SHARES
Neither the Company nor any of its subsidiaries has purchased, sold or redeemed any of the Company's shares during the six months ended 30 September 1999.
YEAR 2000 COMPLIANCE
Systems upgrade and modification work of the Group's Year 2000 compliance project has been completed. It is anticipated that the Year 2000 issue will not cause any significant operational problems to the Group. Moreover, contingency plans have been formulated to deal with any unforeseen problems that may possibly arise during the millennium crossover.
The total cost of the compliance project is approximately HK$3.8 million, mainly for replacement of computer hardware and system software with upgraded versions and most of which have been capitalised in the accounts. Any further cost to be incurred in relation to contingency planning is expected to be immaterial.
By Order of the Board
Lo Hong Sui, Vincent
Chairman
Hong Kong, 9 November 1999
