EX-99.H 3 ex991_8k21903.txt The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. HANG FUNG GOLD TECHNOLOGY LIMITED (Incorporated in Bermuda with limited liability) UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED 31ST DECEMBER, 2002 In view of the fact that Hang Fung Gold Technology Limited (the "Company") is an associate of S.W. Lam, Inc. which is quoted on the National Association of Securities Dealers, Inc. Electronic Bulletin Board, the quarterly and annual results of the Company and S.W. Lam, Inc. are accordingly required to be simultaneously disseminated in Hong Kong and the United States. The Directors of the Company is pleased to announce the unaudited consolidated income statements of the Company, its subsidiaries and associates (collectively the "Group") for the three months and nine months ended 31st December, 2002 together with comparative figures for the corresponding periods in 2001 as follows: (Unaudited) (Unaudited) Three months ended Nine months ended 31st December, 31st December, Note 2002 2001 2002 2001 ------ ------ ------ ------ ------ HK$'000 HK$'000 HK$'000 HK$'000 Turnover (2) 420,246 350,322 1,290,506 968,475 Cost of sales (317,717) (298,651) (1,035,923) (825,641) ----------- ---------- ---------- ----------- Gross profit 102,529 51,671 254,583 142,834 Selling, distribution and marketing expenses (40,132) (10,789) (97,669) (22,438) General and administrative expenses (33,495) (22,768) (83,442) (59,195) ----------- ---------- ---------- ----------- Profit from operations 28,902 18,114 73,472 61,201 Interest income 262 1,402 3,218 6,027 Interest expense (5,952) (7,803) (17,852) (25,079) Share of losses of associates and provision against advance to an associate (1,865) (2,869) (8,726) (8,500) ----------- ---------- ---------- ----------- Profit before taxation 21,347 8,844 50,112 33,649 Taxation (3) (1,360) (972) (4,560) (3,372) ----------- ---------- ---------- ----------- Profit attributable to shareholders 19,987 7,872 45,552 30,277 =========== ========== ========== =========== Dividend - interim - - ========== =========== Earnings per share (4) - Basic 0.847cent 0.568cent ========== =========== - Diluted N/A 0.565cent ========== ===========
Notes: (1) Principal accounting policies The unaudited consolidated income statements have been prepared in accordance with the principal accounting policies set out in the Company's annual accounts for the year ended 31st March, 2002. (2) Turnover Analysis of the Group's turnover by geographical location is as follows: Nine months ended 31st December, 2002 2001 Turnover Turnover HK$'000 HK$'000 By geographical location Hong Kong/Mainland China 1,046,649 658,560 Southeast Asia 121,791 125,925 The United States of America 61,504 78,466 Europe 56,206 58,068 Others 4,356 47,456 ----------- ----------- 1,290,506 968,475 =========== =========== Turnover by geographical location is determined on the basis of the destination of shipment of merchandise. (3) Taxation Taxation in the consolidated income statements consisted of: Nine months ended 31st December, 2002 2001 HK$'000 HK$'000 Hong Kong profits tax 4,560 3,372 The Company is exempted from taxation in Bermuda until 2016. Hong Kong profits tax has been provided at the rate of 16% (2001: 16%) on the estimated assessable profit arising in or derived from Hong Kong. No Mainland China tax has been provided as the Group had no taxable profit subject to such tax during the period. There was no significant unprovided deferred taxation as at 31st December, 2002. (4) Earnings per share The calculation of basic earnings per share is based on the consolidated profit attributable to shareholders of approximately HK$45,552,000 (2001: HK$30,277,000) and on the weighted average number of approximately 5,380,016,727 shares (2001: 5,332,000,000 shares) in issue during the period. Diluted earnings per share for the nine months ended 31st December, 2002 is not presented as there is no dilutive potential shares in existence during the period. The calculation of diluted earnings per share for the nine months ended 31st December, 2001 is based on the consolidated profit attributable to shareholders of approximately HK$30,277,000 and on the weighted average number of approximately 5,362,577,396 shares in issue, after adjusting for the effects of all dilutive potential shares. Results Turnover for the nine months ended 31st December, 2002 amounted to HK$1,290,506,000, representing an increase of 33.3% over the corresponding period in 2001. The increase in turnover was mainly due to the contribution from the 3D-GOLD Tourism Exhibition Hall and the growth of business in Mainland China and Hong Kong. Profit margin increased to 19.7% in the current period from 14.7% in the prior fiscal year period, largely contributed from increase of sales in retail business which is of higher profit margin. Selling, distribution and marketing expenses increased from HK$22,438,000 in 2001 to HK$97,669,000 in the 2002 period as a result of the expansion of retail business and the increase in promotion costs for the "3D-GOLD" and "La Milky Way" products and brands for the period. Profit attributable to shareholders was HK$45,552,000 (2001: HK$30,277,000), attaining a growth of 50.5%. Interim Dividend The Directors do not recommend the payment of an interim dividend in respect of the nine months ended 31st December, 2002 (2001: Nil). Purchase, sale and redemption of the Company's listed securities In July 2002, the Company repurchased 1,560,000 of its own ordinary shares on The Stock Exchange of Hong Kong Limited at a cash consideration of HK$178,380. The lowest and highest prices paid for the above repurchases were respectively HK$0.113 and HK$0.116 per share. The repurchased shares were cancelled and an amount of HK$15,600, equivalent to the nominal value of these shares, was transferred from contributed surplus to capital redemption reserve. Save as disclosed above, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities during the nine months ended 31st December, 2002. This announcement is made pursuant to paragraph 2 of the Listing Agreement. By Order of the Board Lam Sai Wing Chairman Hong Kong, 19th February, 2003