The Board of Directors (the "Directors") of Yau Lee Holdings Limited (the "Company") is pleased to announce that the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31st March, 2000 together with comparative figures for the year ended 31st March, 1999 are as follows:-
2000 1999
HK$'000 HK$'000
Turnover 2,041,948 1,875,177
Cost of construction and cost of sales (1,888,646) (1,838,159)
------------- ------------
Gross profit 153,302 37,018
General and administrative expenses (114,724) (77,273)
Loss on sale of investment properties (1,920) (3,880)
Provision for reduction in
market value of value of
investment properties - (8,425)
Provision for contract retention
receivable - (6,844)
Other revenue, net 9,186 12,724
------------- ------------
Operating profit/(loss) 45,844 (46,680)
Finance cost (6,225) (13,459)
------------- ------------
Profit/(Loss) before share of profit of
associated companies and taxation 39,619 (60,139)
Share of profit of associated
companies 438 6,867
------------- ------------
Profit/(Loss) before taxation 40,057 (53,272)
Taxation (Note 1)
Company and subsidiaries (8,482) 6,006
Associated companies (604) (1,122)
------------- ------------
(9,086) 4,884
------------- ------------
Profit/(Loss) after taxation 30,971 (48,388)
Minority interests (646) (293)
------------- ------------
Profit/(Loss) attributable to
shareholders 30,325 (48,681)
------------- ------------
Retained profit, beginning of year 74,595 118,678
Prior year adjustment (Note 2) (4,598) -
------------- ------------
Retained profit, beginning of year,
as restated 69,997 118,678
Dividends (12,397) -
------------- ------------
Retained profit, end of year 87,925 69,997
============= ============
Earnings/(Loss) per share (Note 3) 2.28 cents (4.95 cents)
============= ============
Notes:
1. Taxation in the consolidated profit and loss account represents:
2000 1999
$'000 $'000
Company and subsidiaries
Provision for Hong Kong profits
tax in respect of the estimated
assessable profit for the year
at 16% (1999:16%) (5,089) (525)
Special rebate by the Government
of Hong Kong Special
Administrative Region ("HKSAR") - 747
Over/ (Under) provision of prior
year profits tax 392 (1,039)
(Provision for) reversal of deferred
taxation (3,785) 6,823
---------- ---------
(8,482) 6,006
Associated companies (604) (1,122)
---------- ---------
(9,086) 4,884
========== =========
2. Prior year adjustments
In prior years, pre-operating expenditure, representing costs incurred during the start-up period to set up the semi-precast factory in Shenzhen, mainland China and was amortised on a straightline basis over a period of 5 years upon commencement of commercial operations. Because of application of the revised Statement of Standard Accounting Practice Number 1 "Presentation of financial statements" issued by the Hong Kong Society of Accountants, pre-operating expenditure is expensed as incurred starting from 1st January 1999. This change in accounting policy has been applied retrespectively. As a result of the adoption of the new accounting policy, the Group expensed all its pre-operating expenditure as incurred for the year ended 31st March 2000. The opening retained profit for the year ended 31st March 2000 was decreased by approximately $4,598,000 which is the amount of the adjustment in respect of the unamortised pre-operating expenditure brought forward from 1999. Comparative figures as at 31st March 1999 and for the year then ended have been restated to reflect the change in accounting policy.
2000 1999
$'000 $'000
Write-off of the pre-operating
expenditure capitalised (5,016) -
Reversal of amortization of
pre-operating expenditure 418 -
--------- --------
Cumulative adjustment to beginning
balance of retained profit
at beginning of year (4,598) -
========= ========
3. The earnings per share has been calculated using the audited consolidated profit attributable to shareholders for the year of HK$30,325,000 (1999: Loss of HK$48,681,000) and the weighted average number of 1,331,068,642 shares (1999: 983,763,775 shares) in issue during the year. The 1999 earnings per share have been restated to reflect the effect of the rights issue during the year. No diluted earnings/ loss per share is disclosed as the outstanding option at 31st March, 2000 and 31st March, 1999 are anti-dilutive.
FINAL DIVIDEND
The Board of Directors recommend the payment of a final dividend of HK0.7 cent per share for the year ended 31st March 2000 (1999: Nil).
Subject to shareholder's approval at the forthcoming Annual General Meeting, the final dividend will be payable on or about 18th September 2000 to the shareholders whose names appear the register of members at the close of business on 18th August 2000.
CLOSURE OF REGISTER OF MEMBER
The register of member of the Company will be closed from 14th August 2000 to 18th August 2000, both days inclusive, during which period no transfer of shares will be effected.
In order to qualify for the proposed final dividend, all share transfers accompanied by the relevant share certificates must be lodged with the Company's branch share registrar in Hong Kong, Central Registration Hong Kong Limited at 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong, no later than 4:00 p.m. on 11th August 2000.
BUSINESS REVIEW
The Company and its subsidiaries (collectively the "Group") recorded a turnover of HK$2,042 Million for the year ended 31st March, 2000, as compared to last year's HK$1,875 Million and successfully improved performance from last year's loss of HK$49 Million to record a profit of HK$30 Million.
Regardless of upward and downward swings in the economy, the provision of adequate and affordable housing to the masses has continued to be the main focus of the HKSAR government. This is evident by the record amount of tenders for public housing estates, HOS buildings and infrastructural support projects being issued over the past three years.
The Group has been able to attain higher profitability through extensive cost control measures and savings in interest expenses as a result of significantly reduced bank borrowings. With the extensive use of precasting techniques in public construction, the Group's precast products factory, Yau Lee Wah Concrete Precast Products Co., Ltd. ("Yau Lee Wah") proved to be a timely success. It is located in Shenzhen, on a 56,000 square meters factory site with 18 production lines.
Yau Lee Wah's extensive scale of production, advanced equipment, experienced management, professional design and production team, enabled the Group to provide consistently high standard quality precast products to customers at a competitive price. Since its commencement of operation in the year under review, it has been operating at its full production capacity.
During the year, the Group was able to maintain a healthy financial position through effective cashflow management. The Group's gearing ratio was further decreased from last year's 0.35 to zero. The Group has net cash in hand of HK$133.6 Million as at 31st March, 2000 compared with a net cash borrowings of HK$176.6 Million at 31st March, 1999.
As at 31st March 2000, total value of contracts in hand amounted to HK$3,778 Million. Projects of Homantin South Phase 1, Ma Sang Village Phase 2, Fanling Area 49A Phase 1 and Maintenance and Repair Works at Sha Kok Estate were completed during the year under review. New contracts awarded during the year were Design and Construction of Fanling Government Quarters and the Development of Chinese Cusine Institute Phase 1 with a total contract sum of HK$474 Million.
Quality and safety have always been the Group's principle philosophy. The Group has therefore, continuously devoted tremendous efforts to enhance these commitments. In view of the committed and intensive efforts, the Group was encouraged by the winning of several awards during the year under review, namely the 12th International Construction Award, the Considerate Contractors Site Award, Award of Merit for Building Sites and Safety Team Awards. To further uphold the Group's high quality and safety standard, a training center was set up in June 2000 to maintain and upgrade the knowledge of building techniques and safety for its staff.
PROSPECTS
In view of the current business environment where technological advancement has become a crucial competitive element in all industries, the Group has partnered with technology experts to develop new technology applications in the construction industry to enhance the Group's competitiveness. VHSoft Technologies Co., Ltd. ("VHSoft"), a wholly-owned subsidiary of the Group, is mainly engaged in the research, development and marketing of advanced construction technologies. Products will range from software applications instrumental to automating various construction processes, patent pending technologies that are set to significantly improve the efficiency of the construction industry and a construction project hosting website designed to monitor and exchange crucial information flow between various parties involved in building projects. VHSoft's websites which include VHCome.com, an e-marketplace for construction materials, VHSoft.com, an application services provider focusing on the construction industry and VHBuild.com, a project hosting website are set to launch in July 2000.
In order to continue the success in the Group's precast products business, the Group will diversify its market and product ranges by moving into private sector and the development of new products such as prefabricated bathroom.
The Group believes that an unblemished track record is essential in the long-term existence of its core business and is cautious in the submission of tenders. With the increasing concern over the quality of construction, the Group is confident that it is well positioned to take on challenges ahead. The Group will continuously seek for positive business opportunities through remaining active in tendering for construction contracts, in order to bring encouraging results to its shareholders.
CODE OF BEST PRACTICE
In the opinion of the Directors, the Company has complied with the code of best practice as set out in Appendix 14 of the Listing Rules of the Stock Exchange of Hong Kong Limited throughout the year under review.
An audit committee comprises of the three independent non-executive directors of the Company was set up in April 1999.
PURCHASE, SALE OR REDEMPTION OF SHARES
There was no purchase, sale or redemption of the Company's shares by the Company
By order of the Board
Wong Ip Kuen
Chairman
Hong Kong, 5th July, 2000
| © 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. |