irasia.com


LERADO GROUP (HOLDING) COMPANY LIMITED
(Incorporated in Bermuda with limited liability)
Website: http://www.irasia.com/listco/hk/lerado

ANNUAL RESULTS ANNOUNCEMENT
FOR THE YEAR ENDED 31ST DECEMBER, 1999

Financial Highlights
  • Turnover: HK$1,066.7 million, increased by 11.1%

  • Profit attributable to shareholders: HK$125.1 million, increased by 24.0%

  • Final dividend: HK6 cents per share

  • Net profit margin: 11.7% (1998: 10.5%)

  • Return on average capital employed: 28.0%

Financial Summary
Turnover Trend



Net Profit Trend



Breakdown of Turnover by
Geographical Areas in 1999


FINANCIAL RESULTS

The Board of Directors of Lerado Group (Holding) Company Limited (the "Company") is pleased to present the audited consolidated results of the Company and its subsidiaries (collectively the "Group") for the year ended 31st December, 1999, together with the comparative figures for the year ended 31st December, 1998 as follows:

                                                  1999           1998
                                   Notes       HK$'000        HK$'000

Turnover                                     1,066,666        959,710
Cost of sales                                 (763,739)      (695,740)
                                           -----------    -----------
Gross profit                                   302,927        263,970
Other revenue                                   16,570         14,035
Distribution costs                            (107,070)       (91,433)
Administrative expenses                        (89,993)       (81,438)
                                           -----------    -----------
Profit from operations                         122,434        105,134
Finance costs                                   (1,556)        (4,649)
Investment income                               11,656          4,193
                                           -----------    -----------
Profit from ordinary activities
  before taxation                              132,534        104,678
Income tax expense                   2           7,389          3,790
                                           -----------    -----------
Profit before minority interest                125,145        100,888
Minority interest                                   (1)            --
                                           -----------    -----------
Profit attributable to shareholders  3         125,146        100,888
                                           ===========    ===========
Dividends                            4          65,391         37,456
                                           ===========    ===========
EARNINGS PER SHARE                   5
Basic                                      17.33 cents    18.71 cents
                                           ===========    ===========
Diluted                                    17.26 cents            N/A
                                           ===========    ===========

Notes:

1. Basis of Presentation

The Company is an exempted company with limited liability in Bermuda under The Companies Act 1981 of Bermuda (as amended) and its shares have been listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

The companies in the Group underwent a group reorganisation in preparation for the listing of the Company's shares on the Stock Exchange in December 1998. Details of the group reorganisation are set out in the prospectus of the Company dated 8th December, 1998. The comparative financial statements of the Group for the year ended 31st December, 1998 were prepared on the basis as if the Company had always been the ultimate holding company of the Group. In the opinion of the directors of the Company, the financial statements, prepared on this basis, present fairly the state of affairs and the results of the Group as a whole.

2. Income Tax Expense

                                            1999       1998
                                         HK$'000    HK$'000

The charge comprises:

Hong Kong Profits Tax
  Current year                               300        620
  Overprovision in prior years (note)       (198)    (3,300)
                                         -------    -------
                                             102     (2,680)
                                         -------    -------
Overseas taxation
  Other regions in the People's Republic
    of China (the "PRC")                   6,345      5,417
  Other jurisdications                       942      1,013
                                         -------    -------
                                           7,287      6,430
                                         -------    -------
Deferred taxation
  Current year                                --         45
  Attributable to a change in tax rate        --         (5)
                                         -------    -------
                                              --         40
                                         -------    -------
                                           7,389      3,790
                                         =======    =======

Note: The overprovision of Hong Kong Profits Tax for the year ended 31st December, 1998 represented a reverse of tax provision made in previous years in respect of an offshore claim which was finalised in that year.

Hong Kong Profits Tax is calculated at 16% of the estimated assessable profit for the year.

Overseas taxation is calculated at the rates prevailing in the relevant jurisdictions.

3. Profit attributable to shareholders

Of the Group's profit attributable to shareholders of approximately HK$125,146,000 (1998: HK$100,888,000), a profit of approximately HK$65,310,000 (1998: HK$1,143,000) has been dealt with in the financial statements of the Company.

4. Dividends

                                                         1999       1998
                                                      HK$'000    HK$'000

Interim dividend of HK3 cents per ordinary share       21,786         --
Proposed final dividend in cash form equivalent
  to HK6 cents per share, with a scrip option          43,605         --
Dividends paid by a subsidiary of the Company to its
  then shareholders prior to the Group reorganisation
  referred to in note 1                                    --     37,456
                                                      -------    -------
                                                       65,391     37,456
                                                      =======    =======

5. Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

                                                      1999            1998

Profit attributable to shareholders
  and earnings for the purposes of the basic
  and diluted earnings per share            HK$125,146,000  HK$100,888,000
                                            ==============  ==============
Weighted average number of ordinary shares for
  the purposes of basic earnings per share     721,959,671     539,337,120
Effect of dilutive potential ordinary shares
  in respect of share options                    3,286,784             N/A
                                            --------------  --------------
Weighted average number of ordinary shares for
  the purposes of diluted earnings per share   725,246,455             N/A
                                            ==============  ==============

6. Transfer to/from reserves

During the year, HK$4,653,000 was transferred from the profit and loss account to the statutory surplus reserve fund.

DIVIDEND

The Board of Directors will recommend to pay a final dividend of HK6 cents per share. Together with an interim dividend of HK3 cents per share, the total dividend of the year under review will amount to HK9 cents. The final dividend will be satisfied by way of cash with an option to elect scrip dividend of shares, payable to the shareholders whose names appear in the register of members of the Company on 29th May, 2000. Dividend warrants are expected to be sent out before 30th June, 2000. Further details will be announced in due course.

BUSINESS REVIEW

Sales and Marketing

Major Achievements

Join forces with Step2

Commenced production of battery operated ride-on cars

Market Opportunities

FUTURE PLANS

YEAR 2000 ISSUE

The Group's compliance program regarding Year 2000 compliance efforts has been disclosed previously in the 1999 Annual Report. The program was completed on schedule with all the critical system of the Group being Year 2000 compliant. The Group has successfully passed through the millennium rollover, with smooth transition on the major critical dates of 31st December, 1999 and 29th February, 2000. The Group does not expect any significant problem which may arise from the Year 2000 Issue.

The Group has, within our budget for the Year 2000 Issue, incurred approximately HK$1,900,000. This comprised mainly acquisitions of new computer hardware and software, which are treated as capital expenditure and are amortised over their expected useful lives. The Group has no further material commitment relating to this issue.

CLOSURE OF REGISTER OF MEMBERS

The Register of Members of the Company will be closed from 25th to 29th May, 2000, both days inclusive, during which period no transfer of shares will be registered. In order to qualify for the final dividend, all transfers accompanied by the relevant share certificates must be lodged with the Company's Registrar, Secretaries Limited, 5th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong, not later than 4:00 p.m. on 24th May, 2000.

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 year.

GRATITUDE

On behalf of the Board of Directors, I wish to extend our gratitude to all customers and business associates for putting their trust in our capabilities. May I also take this opportunity to express my heartiest thanks to all our employees for their hard work and loyalty.


By Order of the Board
Huang Ying Yuan
Chairman

Hong Kong, 18th April, 2000


Source: Lerado Group (Holding) Company Limited
  • Annual Reports
  • Company's Index
  • irasia.com

  • © 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.