i-CABLE
COMMUNICATIONS LIMITED
Stock Code: 1097
2006 Final Results Announcement
Results
Highlights - Turnover rose amidst intense competition
-
Turnover increased by 4%
to HK$2,548 million (2005: HK$2,441 million).
-
Profit before taxation
decreased by 26% to HK$210 million (2005: HK$282 million).
-
Net reversal of HK$28 million
deferred tax credit for the year (2005: HK$305 million deferred tax
credit recorded).
-
Profit after taxation decreased
by 69% to HK$181 million (2005: HK$582 million).
-
Earnings per share decreased
by 69% to 9.0 cents (2005: 28.8 cents).
-
Capital expenditure declined
by 29% to HK$200 million (2005: HK$282 million).
-
Free cashflow before dividends
increased by 2% to HK$407 million (2005: HK$399 million).
-
Final dividend of 5 cents
per share to increase full year dividends per share to 8.5 cents (2005:
8.5 cents).
Pay
TV - Subscriber number increase sustained by investment in content differentiation
-
Subscribers increased by
7% to 786,000 (2005: 738,000).
-
ARPU decreased by 4% to
HK$203 (2005: HK$212).
-
Turnover increased by 1%
to HK$1,895 million (2005: HK$1,884 million).
-
Operating profit decreased
by 26% to HK$248 million (2005: HK$337 million).
Internet
& Multimedia - Record operating profit in a maturing market
-
Broadband subscribers increased
by 2% to 328,000 (2005: 320,000).
-
Wholesale voice lines increased
by 40% to 168,000 (2005: 120,000).
-
ARPU decreased by 2% to
HK$136 (2005: HK$139).
-
Turnover increased by 7%
to HK$596 million (2005: HK$558 million).
-
Operating profit increased
by 66% to HK$129 million (2005: HK$78 million).
GROUP
RESULTS
Group
profit attributable to Shareholders for the year ended December 31, 2006
amounted to HK$182 million (2005: HK$582 million). Basic and diluted earnings
per share were both 9.0 cents (2005: 28.8 cents).
DIVIDENDS
An
interim dividend in respect of the year ended December 31, 2006 of 3.5
cents (2005: 3.5 cents) per share was paid on October 9, 2006, absorbing
a total amount of HK$71 million (2005: HK$71 million). Directors have
recommended for adoption at the Annual General Meeting to be held on May
17, 2007 the payment on May 23, 2007 to Shareholders registered on May
17, 2007 of a final dividend in respect of the year ended December 31,
2006 of 5 cents (2005: 5 cents) per share, absorbing a total amount of
HK$101 million (2005: HK$101 million). If this recommendation is approved,
the total dividend for the year 2006 would amount to 8.5 cents (2005:
8.5 cents) per share.
MANAGEMENT
DISCUSSION AND ANALYSIS
A.
Review of 2006 Results
The Group continued to grow
its Pay TV and Broadband subscriber bases with enhanced programme and
innovative bundling and other marketing strategies, notwithstanding intense
competition particularly in the Pay TV market.
Consolidated turnover increased
by HK$107 million or 4% to HK$2,548 million with increases across Pay
TV, Internet & Multimedia and new businesses.
Operating costs before depreciation
increased by 14% to HK$1,921 million as programming costs increased by
16% to HK$1,005 million due primarily to the carriage of 2006 FIFA World
Cup, enhancement of the movie platform with the launch of "HMC"
at the beginning of the year and the capturing of film production cost
of Sundream's movie projects released this year. Network and other operating
costs increased by 13% to HK$451 million due mainly to increase in customer
fulfillment costs, cost of sales and restructuring costs pertaining to
network team restructuring during the year. Selling, general and administrative
expenses increased by 11% to HK$465 million due primarily to higher marketing
and sales spending.
Earnings before interest, tax,
depreciation and amortisation or EBITDA decreased by 18% to HK$627 million.
Depreciation decreased by 11%
to HK$428 million due to lower depreciation charges on cable modems, leasehold
improvement and network assets following the expiry of their depreciation
cycle.
Profit from operations decreased
by HK$81 million or 29% to HK$198 million.
After the net reversal of HK$28
million of deferred tax credit for the year (compared to a credit of HK$305
million in 2005), net profit attributable to shareholders decreased by
69% or HK$400 million to HK$182 million.
Basic and diluted earnings
per share were 9.0 cents as compared to 28.8 cents in 2005.
B.
Segmental Information
Pay
Television
Subscribers
increased by 48,000 or 7% year-on-year to 786,000 notwithstanding intense
competition. ARPU decreased by 4% to HK$203, primarily due to the rollout
of mini packages and selective packages in response to changing market
conditions. Turnover increased by HK$11 million to HK$1,895 million. Operating
costs after depreciation increased by 6% to HK$1,647 million primarily
due to the aforementioned increase in programming, network operations
related and marketing costs. Operating profit decreased by 26% to HK$248
million.
Internet
& Multimedia
Broadband
subscribers increased by 8,000 or 2% year-on-year to 328,000 in a maturing
market with service enhancement through network upgrade, bundling strategies
and the continued introduction of value-added services. ARPU decreased
slightly by 2% to HK$136. There were 168,000 voice lines in service at
the end of 2006 as compared to 120,000 a year ago. Turnover increased
by 7% to HK$596 million. Operating costs after depreciation decreased
by 3% to HK$467 million due primarily to savings achieved in depreciation.
Operating profit reported a record high HK$129 million as compared to
HK$78 million a year ago.
C.
Liquidity and Financial Resources
Net cash inflow reached HK$234
million. After dividend payment of HK$172 million. Net cash increased
to HK$586 million at December 31, 2006, as compared to HK$352 million
a year ago.
The consolidated net asset
value of the Group as at December 31, 2006 was HK$2,262 million or HK$1.1
per share. As at December 31, 2006, the Group had property, plant and
equipment of net book value of approximately HK$848,000 (December 31,
2005: Nil) held under finance lease contract.
The Group's assets, liabilities,
revenues and expenses were mainly denominated in Hong Kong dollars or
U.S. dollars and the exchange rate between these two currencies has remained
pegged.
Capital expenditure during
the period amounted to HK$200 million as compared to HK$282 million last
year. Major items included further network upgrade and expansion, electronic
data processing equipment, TV production facilities and buildings.
The Group is comfortable with
its present financial and liquidity position. Further capital expenditure
and new business development will be funded by cash to be generated from
operations and, if needed, bank borrowings or other external sources of
funds. The Group also had total short-term bank credit facilities of approximately
HK$509 million which remained unutilized as of December 31, 2006.
D.
Contingent Liabilities
At
December 31, 2006, there were contingent liabilities in respect of guarantees,
indemnities and letters of awareness given by the Company on behalf of
subsidiaries relating to overdraft and guarantee facilities of banks up
to HK$616 million, of which only HK$107 million had been utilised by the
subsidiaries.
E.
Human Resources
The Group had a total of 3,016
employees at the end of 2006 (2005: 3,275). Total gross amount of salaries
and related costs incurred in the corresponding period amounted to HK$828
million (2005: HK$793 million).
The Group attracts, retains and motivates the best people by promoting
a pay for performance culture, linking remuneration and reward to Group
performance.
Being a caring employer, the
Group continued to participate in social welfare activities through donations
to non-profit organisations and social welfare agencies as well as encouraging
employees to participate in volunteer services.
F.
Operating Environment and Competition
The Group continued to maintain
its leading positions in both the Pay TV and Broadband markets irrespective
of fierce competition.
PCCW's now Broadband TV continued
to be aggressive in the Pay TV market. During the period under review,
not only did it pull out all stops to acquire customers, it has also been
aggressive in content acquisition to erode the Group's programming platform.
Instead of engaging in endless bidding wars for overpriced acquired contents,
the Group has chosen to develop further its production and its already
well established news and entertainment platforms as well as to pursue
more balanced development of its sports platform to maintain its leading
position.
Our marketing and pricing initiatives
appeared to have mitigated the negative effect of now's aggression so
far to report a healthy growth of Pay TV customers at the end of the year
with only marginal erosion of ARPU.
Meanwhile, the broadband Internet
market continued to mature and the Group is able to capitalise on its
investment on network enhancement to generate a healthy increase in revenue
and profitability. Coupled with our triple-play bundling offers, our Broadband
service subscription continued to grow.
G.
Outlook
The intensification of competition,
where competitive behaviour at times defies near term market economics
in attempts to unsettle the Group's market position, did not come as a
surprise to us.
For the past several years and in anticipation of changing market conditions,
the Group has been undergoing regeneration. As a result, our different
operation units, spanning from content productions and distribution, service
provision, marketing and sales, to customer service and network operations,
have been sharpened, each with clear business objectives. They have responded
to the changes swiftly and effectively.
Our decision to readjust programming
investment to move away from relying on a single programming genre will
see further enhancement on our own-produced news and entertainment platforms
in the first half of 2007. The Group is confident that its programming
offers remain competitive in the market place.
The Group's various new market
ventures are progressing well on track. Our content distribution beyond
Hong Kong are beginning to gain a foothold in the Mainland as well as
in other overseas markets and our movie production projects have been
a success at the box office as well as at industry forums around the world.
Tougher times are lying ahead
as competition further intensifies but the Group is well prepared to take
the challenges head on.
CODE ON CORPORATE GOVERNANCE
PRACTICES
During the financial year under
review, all the code provisions set out in the Code on Corporate Governance
Practices contained in Appendix 14 of the Rules Governing the Listing
of Securities on The Stock Exchange of Hong Kong Limited were met by the
Company, except in respect of one code provision providing for the roles
of chairman and chief executive officer to be performed by different individuals.
The deviation is deemed necessary as, given the nature and size of the
Company's business, it is at this stage considered to be more efficient
to have one single person to hold both positions. The Board of Directors
believes that the balance of power and authority is adequately ensured
by the operations of the Board which comprises experienced and high calibre
individuals with a substantial number thereof being independent Non-executive
Directors.
CONSOLIDATED
PROFIT AND LOSS ACCOUNT
For the year ended December 31, 2006
|
|
2006
|
|
2005
|
|
Note
|
HK$'000
|
|
HK$'000
|
|
|
|
|
|
Turnover
|
(3,4)
|
2,547,595
|
|
2,440,732
|
|
Programming
costs |
|
(1,005,273)
|
|
(863,714)
|
|
Network
and other operating expenses |
|
(450,889)
|
|
(397,550)
|
|
Selling,
general and administrative expenses |
|
(464,855)
|
|
(419,328)
|
Profit
from operations before depreciation
|
|
626,578
|
|
760,140
|
|
Depreciation |
(5)
|
(428,121)
|
|
(480,589)
|
Profit
from operations
|
|
198,457
|
|
279,551
|
|
Interest
income |
|
11,640
|
|
3,335
|
Finance
costs, net |
|
(7)
|
(134)
|
|
Impairment
loss on investment |
|
-
|
|
(1,500)
|
|
Non-operating
(expenses)/income |
(5)
|
(322)
|
|
804
|
Profit
before taxation
|
(5)
|
209,768
|
|
282,056
|
Income tax |
(6)
|
(28,649)
|
|
300,398
|
Profit
after taxation |
(6) |
181,119 |
582,454
|
Attributable
to:
|
|
|
|
582,454
|
|
Equity
shareholders of the Company |
182,115 |
|
Minority
interests |
|
(996)
|
|
-
|
Profit
after taxation |
181,119 |
582,484
|
Dividends
payable to equity shareholders attributable to the year |
|
70,673
|
|
70,673
|
|
Interim
dividend of 3.5 cents (2005: 3.5cents) per share declared and paid
during the year |
|
Final dividend of 5 cents (2005: 5 cents) per share proposed after
the balance sheet date |
|
100,962
|
|
100, 962
|
|
|
|
171,635
|
|
171,635
|
|
Earnings
per share |
(7)
|
|
|
|
|
Basic |
|
9.0
cents
|
|
28.8 cents
|
|
Diluted |
|
9.0
cents
|
|
28.8 cents
|
CONSOLIDATED
BALANCE SHEET
At December 31, 2005
|
|
2006
|
|
2005
|
|
Note
|
HK$'000
|
|
HK$'000
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property,
plant and equipment |
|
1,591,353
|
|
1,838.336
|
|
Programming
library |
|
185,702
|
|
142,856
|
|
Other
intangible assets |
|
12,775
|
|
4,006
|
|
Deferred
tax assets |
|
388,266
|
|
434,266
|
Other
non-current assets |
|
51,079
|
|
53,643 |
|
|
2,229,175
|
|
2,473,107
|
Current
assets |
|
|
|
|
|
Inventories |
|
1,111
|
|
9,794
|
|
Accounts
receivable from trade debtors |
(8) |
85,585
|
|
84,150
|
|
Deposits,
prepayments and other receivables |
|
64,445
|
|
105,271
|
|
Amounts
due from fellow subsidiaries |
|
56,361
|
|
4,842
|
|
Cash
and cash equivalents |
|
586,197
|
|
351,892
|
|
|
|
793,699
|
|
555,949
|
Current
liabilities
|
|
|
|
|
|
Amounts
due to trade creditors |
(9)
|
42,675
|
|
70,466
|
|
Accrued
expenses and other payables |
|
395,698
|
|
392,951
|
|
Receipts
in advance and customers' deposits |
|
107,527
|
|
70,075
|
Obligations
under finance leases |
|
705
|
|
-
|
Current
taxation |
|
49
|
|
51
|
Amounts
due to fellow subsidiaries |
|
43,735
|
|
39,936
|
|
Amount
due to immediate holding company |
|
989
|
|
83
|
|
|
|
591,378
|
|
573,562
|
Net current
assets/(liabilities)
|
|
202,321
|
|
(17,613)
|
Total
assets less current liabilities
|
|
2,431,496
|
|
2,455,494
|
Non-current
liabilities |
|
|
|
|
|
Deferred
tax liabilities |
|
115,061
|
|
129,201
|
Obligations
under finance leases |
|
72
|
-
|
Other
non-current liabilities |
|
53,970
|
77,926
|
|
|
169,103
|
207,127
|
NET ASSETS
|
|
2,262,393
|
|
2,248,367
|
Capital
and reserves |
|
|
|
|
|
Share
capital |
|
2,019,234
|
|
2,019,234
|
|
Reserves |
|
239,719
|
|
229,133
|
|
Total
equity attributable to equity shareholders of the Company |
|
2,258,953
|
|
2,248,367
|
|
Minority
interests |
|
3,440
|
|
-
|
TOTAL
EQUITY |
|
2,262,393
|
|
2,248,367
|
CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY
For the year ended December 31, 2006
Attributable
to equity shareholders of the Company
|
Share
capital
|
Share
premium
|
Special
capital
reserve
|
Exchange
reserve
|
Revenue
reserve
|
Total
reserves
|
Total
|
Minority
interests
|
Total
equity
|
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
Balance
at January 1, 2005*
|
2,019,234
|
4,838,365
|
3,345
|
-
|
(5,033,305)
|
(191,595)
|
1,827,639
|
-
|
1,827,639
|
Profit
for the year
|
-
|
-
|
-
|
-
|
582,454
|
582,454
|
582,454
|
-
|
582,454
|
Dividend
approved in respect of the previous year
|
-
|
-
|
-
|
-
|
(90,866)
|
(90,866)
|
(90,866)
|
-
|
(90,866)
|
Dividend
declared in respect of the current year
|
-
|
-
|
-
|
-
|
(70,673)
|
(70,673)
|
(70,673)
|
-
|
(70,673)
|
Translation
of foreign subsidiaries' financial statements
|
-
|
-
|
-
|
(187)
|
-
|
(187)
|
(187)
|
-
|
(187)
|
Transfer
to special capital reserve
|
-
|
-
|
4,579
|
-
|
(4,579)
|
-
|
-
|
-
|
-
|
Balance
at December 31, 2005*
|
2,019,234
|
4,838,365
|
7,924
|
(187)
|
(4,616,969)
|
229,133
|
2,248,367
|
-
|
2,248,367
|
CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY
For the year ended December 31, 2006
Attributable
to equity shareholders of the Company
|
Share
capital
|
Share
premium
|
Special
capital
reserve
|
Exchange
reserve
|
Revenue
reserve
|
Total
reserves
|
Total
|
Minority
interests
|
Total
equity
|
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
Balance
at January 1, 2006*
|
2,019,234
|
4,838,365
|
7,924
|
(187)
|
(4,616,969)
|
229,133
|
2,248,367
|
-
|
2,248,367
|
Profit
for the year
|
-
|
-
|
-
|
-
|
182,115
|
182,115
|
182,115
|
(996)
|
181,119
|
Dividend
approved in respect of the previous year
|
-
|
-
|
-
|
-
|
(100,962)
|
(100,962)
|
(100,962)
|
-
|
(100,962)
|
Dividend
declared in respect of the current year
|
-
|
-
|
-
|
-
|
(70,673)
|
(70,673)
|
(70,673)
|
-
|
(70,673)
|
Translation
of foreign subsidiaries' financial statements
|
-
|
-
|
-
|
106
|
-
|
106
|
106
|
51
|
157
|
Acquisition
of subsidiary |
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4,385
|
4,385
|
Transfer
to special capital reserve
|
-
|
-
|
5,847
|
-
|
(5,847)
|
-
|
-
|
-
|
-
|
Balance
at December 31, 2006*
|
2,019,234
|
4,838,365
|
13,771
|
(81)
|
(4,612,336)
|
239,719
|
2,258,953
|
3,440
|
2,262,393
|
*
Included in the Group's revenue reserve is positive goodwill written off
against reserves in prior years amounting to HK$197,785,000.
NOTES TO THE FINANCIAL STATEMENTS
- Basis of preparation
The financial statements for the year ended December 31, 2006 have been
prepared in accordance with all applicable Hong Kong Financial Reporting
Standards ("HKFRS") which collective term includes all applicable
individual Hong Kong Financial Reporting Standards, Hong Kong Accounting
Standards ("HKAS") and Interpretations issued by the Hong
Kong Institute of Certified Public Accountants ("HKICPA"),
accounting principles generally accepted in Hong Kong and the requirements
of the Hong Kong Companies Ordinance. They also comply with the applicable
disclosure provisions of the Rules Governing the Listing of Securities
on The Stock Exchange of Hong Kong Limited.
- Impact of new and
revised Hong Kong Financial Reporting Standards
The HKICPA has issued certain new and revised HKFRSs that are first
effective or available for early adoption for the current accounting
period of the Group.
In 2006, the Group has adopted all new HKFRSs that are first effective
for accounting periods beginning on or after January 1, 2006. The adoption
of these new HKFRSs did not result in substantive changes to the Group's
accounting policies.
The following sets out information on significant changes in accounting
policies for the current and prior accounting periods reflected in these
financial statements:
The adoption of Amendments to HKAS 39, Financial instruments: Recognition
and measurement has resulted in a change in the Group's accounting policy
for financial guarantees issued. All financial guarantees issued are
accounted for as financial liabilities under HKAS 39 and measured initially
at fair value, where the fair value can be reliably measured.
- Turnover
Turnover comprises principally subscription and related fees for Pay
television and Internet services, Internet protocol point wholesale
services and advertising income net of agency deductions.
- Segment information
Substantially all of the activities of the Group are based in Hong Kong
and below is an analysis of the Group's revenue and result by principal
activities:
|
|
Segment
Revenue
|
|
Segment
Result
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
HK$'000
|
|
HK$'000
|
|
HK$'000
|
|
HK$'000
|
|
|
|
|
|
|
|
|
|
Pay
television
|
|
1,895,221
|
|
1,884,379
|
|
248,224
|
|
336,797
|
Internet and multimedia
|
|
596,013
|
|
558,084
|
|
128,961
|
|
77,676
|
|
|
|
|
|
|
377,185
|
|
414,473
|
Unallocated
|
|
74,167
|
|
13,311
|
|
(178,437)
|
|
(134,922)
|
Inter-segment
elimination |
(17,806)
|
(15,042)
|
(291)
|
-
|
|
|
2,547,595
|
|
2,440,732
|
|
198,457
|
|
279,551
|
Profit
from operations |
|
|
|
|
|
198,457
|
|
279,551
|
Interest
income |
11,640
|
3,335
|
Finance
costs, net |
(7)
|
(134)
|
Impairment
loss on investment |
-
|
(1,500)
|
Non-operating
(expenses)/ income |
(322)
|
804
|
Income
tax (expense)/benefit |
(28,649)
|
300,398
|
Profit
after taxation |
181,119
|
582,454
|
|
|
Segment
assets
|
|
Segment
liabilities
|
|
|
2006
|
|
2005
|
|
2006
|
|
2005
|
|
|
HK$'000
|
|
HK$'000
|
|
HK$'000
|
|
HK$'000
|
|
|
|
|
|
|
|
|
|
Pay
television
|
|
1,242,902
|
|
1,508,250
|
|
383,812
|
|
477,618
|
Internet and multimedia
|
|
631,237
|
|
696,152
|
|
132,665
|
|
124,521
|
|
|
1,874,139
|
|
2,204,402
|
|
516,477
|
|
602,139
|
Unallocated
assets/liabilities |
|
1,148,735
|
|
824,654
|
|
244,004
|
|
178,550
|
|
|
3,022,874
|
|
3,029,056
|
|
760,481
|
|
780,689
|
|
Additions
to property, plant and equipment
|
Additions
to programming library
|
Depreciation
|
Amortisation
|
Impairment
loss on property, plant and equipment
|
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
HK$'000
|
Pay
television |
129,343
|
174,033
|
108,719
|
67,484
|
235,516
|
259,977
|
84,394
|
73,549
|
6,617
|
4,353
|
Internet
and
multimedia |
63,802
|
103,591
|
-
|
-
|
188,223
|
214,479
|
-
|
-
|
1,459
|
2,232
|
Unallocated |
7,070
|
4,572
|
35,244
|
27,685
|
4,382
|
6,133
|
19,646
|
6,075
|
3,565
|
-
|
|
200,215
|
282,196
|
143,963
|
95,169
|
428,121
|
480,589
|
104,040
|
79,624
|
11,641
|
6,585
|
- Profit before taxation
Profit before taxation is stated after charging / (crediting):
|
|
2006
|
|
2005
|
|
|
HK$'000
|
|
HK$'000
|
|
Depreciation |
|
|
|
|
|
|
-
assets held for use under operating leases |
|
39,492
|
|
48,704
|
|
|
-
other assets |
|
388,629
|
|
431,885
|
|
428,121
|
480,589
|
|
|
|
|
Amortisation
of programming library* |
|
101,117
|
|
79,624
|
Amortisation
of other intangible assets** |
|
2,923
|
-
|
|
Staff
costs |
|
769,770
|
|
716,751
|
|
Contributions
to defined contribution retirement plans |
|
30,541
|
|
28,423
|
|
Cost
of inventories used |
|
12,999
|
|
18,499
|
|
Dividend
income from investment in equity securities |
|
(1,872)
|
|
(3,833) |
|
Auditors'
remuneration |
|
3,137
|
|
3,300
|
|
|
|
|
|
|
|
Non-operating
expenses/(income) |
|
|
|
|
|
Net
loss/(gain) on disposal of property, plant and equipment |
|
322
|
|
(804)
|
* Amortisation of programming
library is included within programming costs in the consolidated results
of the Group.
**Amortisation of other intangible assets is included within network
and other operating expenses in the consolidated results of the Group.
- Income tax
The provision for Hong Kong Profits Tax is calculated at 17.5% (2005:
17.5%). Taxation for overseas subsidiaries is charged at the appropriate
current rate of taxation ruling in the relevant country. The taxation
charge for the year ended December 31 represents:
|
2006
|
|
2005
|
|
HK$'000
|
|
HK$'000
|
|
|
|
|
Current provision
for Hong Kong Profits Tax
|
75
|
|
4,512
|
Current
provision for oversea Tax |
222
|
|
153
|
Under
provision for overseas tax in respect of prior year |
-
|
|
2
|
Net
deferred tax expense/(credit) |
28,352
|
|
(305,065)
|
Income
tax expense/(benefit) |
28,649
|
|
(300,398)
|
- Earnings per share
The calculation of basic earnings per share is based on the profit attributable
to equity shareholders of the Company of HK$182 million (2005: HK$582
million) and the weighted average number of ordinary shares outstanding
during the year of 2,019,234,400 (2005: 2,019,234,400).
The calculation of
diluted earnings per share is based on the profit attributable to equity
shareholders of the Company of HK$182 million (2005: HK$582 million)
and the weighted average number of ordinary shares of 2,019,234,400
(2005: 2,019,234,400) after adjusting for the effects of all dilutive
potential ordinary shares.
- Accounts receivable
from trade debtors
An ageing
analysis of accounts receivable from trade debtors (net of impairment
losses for bad and doubtful accounts) is set out as follows:
|
2006
|
|
2005
|
|
HK$'000
|
|
HK$'000
|
|
|
|
|
0 to 30 days
|
24,819
|
|
24,019
|
31
to 60 days |
24,428
|
|
24,153
|
61
to 90 days |
16,869
|
|
15,681
|
Over 90 days
|
19,469
|
|
20,297
|
|
85,585
|
|
84,150
|
The Group has a defined credit
policy. The general credit terms allowed range from 0 to 60 days.
- Amounts due to trade
creditors
An
ageing analysis of amounts due to trade creditors is set out as follows:
|
2006
|
|
2005
|
|
HK$'000
|
|
HK$'000
|
|
|
|
|
0 to 30 days
|
3,806
|
|
5,345
|
31
to 60 days |
3,916
|
|
9,020
|
61
to 90 days |
6,537
|
|
18,257
|
Over 90 days
|
28,416
|
|
37,844
|
|
42,675
|
|
70,466
|
- Review of Financial statements
The financial results for the year ended December 31, 2006 have been
reviewed with no disagreement by the Audit Committee of the Company.
This preliminary results announcement has also been agreed with the
Company's Auditors.
PURCHASE, SALE OR REDEMPTION
OF SHARES
Neither the Company nor any of its subsidiaries has purchased, sold or
redeemed any listed securities of the Company during the year under review.
BOOK CLOSURE
The Register of Members of the
Company will be closed from Thursday, May 10, 2007 to Thursday, May 17,
2007, both days inclusive, for the purpose of determining shareholders'
entitlements to the proposed final dividend. In order to qualify for the
final dividend, all transfers, accompanied by the relevant share certificates,
must be lodged with the Company's Registrars, Tengis Limited, at 26th
Floor, Tesbury Centre, 28 Queen's Road East, Wanchai, Hong Kong, not later
than 4.30 p.m. on Wednesday, May 9, 2007.
By Order of the Board
Wilson W. S. Chan
Secretary
Hong Kong, March 5, 2007
As at the date of this announcement,
the Board of Directors of the Company comprises Mr. Stephen T. H. Ng,
Mr. William J. H. Kwan and Mr. Peter S. O. Mak, together with four independent
non-executive Directors, namely, Mr. F. K. Hu, Dr. Dennis T. L. Sun, Sir
Gordon Y. S. Wu and Mr. Anthony K. K. Yeung.
|