TIDMYGH
RNS Number : 3703Z
Yinggao Holdings PLC
21 September 2009
?
Yinggao Holdings plc
("the Company")
Interim Results
The Company is pleased to announce its results for the 6 month period ended 30
June 2009.
FINANCIAL HIGHLIGHTS
The group made a profit after tax of US$965,000 during the six months to 30 June
2009 on total revenues of US$8.5 million. Total revenues increased by 35% for
the first six months of 2009 compared to the first six months of 2008 (H1 2008:
US$6.3 million). Gross profit for the period was US$2.7 million, an increase of
16.6% compared to the first six months of 2008 (H1 2008: US$2.3 million).
Administrative expenses increased by a modest 7% to US$1.5 million (H12008:
US$1.4 million). This increase is relatively insignificant in the context of the
group's increased level of activity, and was also partly a result of the
depreciation cost amounting to US$0.94 million compared to US$0.11 million in
the same period last year.
Earnings per share increased to US$0.03 (H1 2008: US$0.01).
BUSINESS REVIEW
Review of Container Terminal Business
For the six months ended 30 June 2009, Keen Chance Terminal reported total
revenues of US$6.9 million compared to US$5.5 million for H1 2008, an increase
of 25%. This was achieved despite the continuing difficult economic climate in
our business, and reflects the conservative expectations of management.
Nevertheless, despite an increase in overall throughput, the profit margin
decreased by 0.9%, due to an increase in turnover of 18% offset by an increase
in operating cost and general and administrative expenses of 20% and 26%
respectively. Excluding the loan interest paid to Arko Terminal Limited, there
was an increase of 27% in profit compared to the same period of last year
generated from the container terminal operation.The Keen Chance businesses
generated a period end cash balance of US$0.26 million, amounting to a 63%
increase compared with the H1 2008 period end cash balance of US$0.16 million.
Overall, the Board is very encouraged by the results from the terminal
operation.
Review of Barging Service Business
During the six months ended 30 June 2009, the company through its subsidiary,
Yinggao Shipping (H.K.) Limited., operated seven river trade vessels which
contributed revenue of US$1.7million (H1 2008: US$0.9 million) to the group,
representing a 89% increase compared to the same period of last year. The
operating margin has increased from 6.5% in H1 2008 to 12.7% in H1 2009 as a
result of an improvement in the carrying capacity of the vessels driving
operational efficiency.
DISPOSAL OF EQUITY INTEREST IN LONG PROSPERITY INDUSTRIAL LIMITED
An announcement was made on 9 September 2009 by the company in relation to the
disposal of its equity interest in Long Prosperity Industrial Limited ("LPIL"),
a wholly owned subsidiary of the company, which owns a 59.2% stake in Changzhou
Power Development Company Limited ("CZPD"), which operated the now-closed
coal-fired power plant in Hubei province, China. This sale was to a related
company, Winko Foundation Limited ("WFL"). It was reported to the shareholders
that the result of the sale of the shares in LPIL to WFL is that the liabilities
that currently sit in LPIL and its subsidiary CZPD will thereafter be outside
the group and the group's consolidated accounts will have significant
liabilities removed from them.
OUTLOOK
The group results for the first half of the year are in line with the
management's expectations. Although the increased cost in wages was offset by
operating efficiencies and other cost savings, we shall endeavour to further
reduce operating costs so as to increase our profit margin by the end of the
year.
During the second half of 2009, the group will continue building its business
and focus on its strengths to achieve its targets in cost control and
increasing competitiveness of its fleet and terminal operation. The extension of
the adjacent quay is near to completion and we expect to start operation by the
end of the year, which should coincide with the commencement of operation of
the brand new 45 tonne quayside container crane. The Board is confident that the
growth rate in the annual throughput will be satisfactory and the container
terminal business will continue playing an important role in the group's revenue
streams.
The weaker economic situation, however, has impacted our barging service
business. Despite a growth in turnover of Yinggao Shipping (H.K.) Limited in the
first half year of 2009, income per vessel has reduced. Insufficiency of
carrying cargo per vessel will no doubt increase the operating costs and result
in a decrease in profit margin.
As the recent recovery in global markets remains fragile it is difficult to
predict the timing and extent of a return to growth in trade, on which our
business depends. Nevertheless, having reviewed the forecast we made at the
beginning of the year, we regard the group performance in the first half of the
year to be satisfactory. The Board, therefore, remains optimistic about the
group's prospects for the full year.
RETIREMENT OF THE CHAIRMAN
Last but not least I would like to thank our shareholders, business partners,
customers, directors and employees for their continuing support to Yinggao.
Since the group has now reached a stable stage and its business has maintained
steady growth over the past few years, I have decided to step down from the
board and retire upon the publication of these interim results. I wish the
group continued success in the second half of 2009 and I believe Angela Leung,
one of our executive directors, will prove a very capable successor as Chairman.
Qin Shun Chao
Chairman
For further information:
Angela Leung Tel: + 852 2219 9999
Yinggao Holdings plc
www.yinggaoholdings.com
Paul Shackleton
Daniel Stewart & Company plc Tel: + 44 (0) 207 776 6550
www.danielstewart.co.uk
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| | | | | (Audited) | |
+-----------------------------------------+-----------------------+-+-+--------------+--+
| | (Unaudited) | | | Year ended | |
+-----------------------------------------+-----------------------+-+-+--------------+--+
| | Six months ended | | | 31 December | |
| | 30 June | | | | |
+-----------------------------------------+-----------------------+-+-+--------------+--+
| | 2009 | | 2008 | | | 2008 | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| | US$'000 | | US$'000 | | | US$'000 | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| | | | | | | | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| Turnover | 8,540 | | 6,330 | | | 14,300 | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| | | | | | | | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| EBITDA * - Continuing operations | 1,644 | | 572 | | | 2,531 | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| | | | | | | | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| Profit for the period | 965 | | 592 | | | 1,068 | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| | | | | | | | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| Shareholders' equity and minority | 30,850 | | 28,931 | | | 30,009 | |
| interest | | | | | | | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
| | | | | | | | |
+-----------------------------------------+----------+--+---------+-+-+--------------+--+
*Earnings attributable to equity holders before interest, tax, depreciation and
goodwill impairment on continuing operations
CONDENSED CONSOLIDATED INCOME STATEMENT
For the six months ended 30 June 2009
+--------------------------------------+------+---------+--+---------+-+-+-+-------------+--+
| | | (Unaudited) | | | (Audited) | |
+--------------------------------------+------+----------------------+-+---+-------------+--+
| | | Six months ended | | | Year ended | |
| | | 30 June | | | 31 December | |
+--------------------------------------+------+----------------------+-+---+-------------+--+
| | | 2009 | | 2008 | | | 2008 | |
+--------------------------------------+------+---------+--+---------+-+---+-------------+--+
| |Note | US$'000 | | US$'000 | | | US$'000 | |
+--------------------------------------+------+---------+--+---------+-+---+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+-+---+-------------+--+
| Revenue | 3 | 8,540 | | 6,330 | | | 14,300 | |
+--------------------------------------+------+---------+--+---------+-+---+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+-+---+-------------+--+
| Cost of sales | | (5,863) | | (4,035) | | | (9,850) | |
+--------------------------------------+------+---------+--+---------+-+---+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+-+---+-------------+--+
| Gross profit | | 2,677 | | 2,295 | | | 4,450 | |
+--------------------------------------+------+---------+--+---------+-+---+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+-+---+-------------+--+
| Other income | | 2 | | 62 | | | 155 | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| Administrative Expenses | | (1,521) | | (1,420) | | | (3,114) | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| | | | | | | | |
+---------------------------------------------+---------+--+---------+---+-+-------------+--+
| Profit from operations | 1,158 | | 937 | | | 1,491 | |
+---------------------------------------------+---------+--+---------+---+-+-------------+--+
| Finance Costs | (1) | | - | | | (176) | |
+---------------------------------------------+---------+--+---------+---+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| Profit before taxation | | 1,157 | | 937 | | | 1,315 | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| Taxation | 4 | (192) | | (345) | | | (247) | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| | | | | | | | |
+---------------------------------------------+---------+--+---------+---+-+-------------+--+
| Profit for the period from continuing | 965 | | 592 | | | 1,068 | |
| operations | | | | | | | |
+---------------------------------------------+---------+--+---------+---+-+-------------+--+
| Profit for the period | | 965 | | 592 | | | 1,068 | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| | | | | | | | |
+---------------------------------------------+---------+--+---------+---+-+-------------+--+
| Attributable to : | | | | | | | |
+---------------------------------------------+---------+--+---------+---+-+-------------+--+
| Equity holders of the parent Company | 510 | | 117 | | | 360 | |
+---------------------------------------------+---------+--+---------+---+-+-------------+--+
| Minority interest - continuing | | 455 | | 475 | | | 708 | |
| operations | | | | | | | | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| | | 965 | | 592 | | | 1,068 | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| Earnings per share - Basic and fully | 5 | | | | | | | |
| diluted | | | | | | | | |
| (US cents): | | | | | | | | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| Continuing operations | | 0.03 | | 0.01 | | | 0.02 | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| Continuing and discontinued | | 0.03 | | 0.01 | | | 0.02 | |
| operations | | | | | | | | |
+--------------------------------------+------+---------+--+---------+---+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+---------+-+-+-+-------------+--+
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2009
+--------------------------------------+------+---------+--+----------+----------+----------+-+-------------+--+
| | | (Unaudited) | | | (Audited) | |
+--------------------------------------+------+-----------------------+---------------------+-+-------------+--+
| | | Six months ended | | | Year ended | |
| | | 30 June | | | 31 December | |
+--------------------------------------+------+-----------------------+---------------------+-+-------------+--+
| | | 2009 | | 2008 | | | 2008 | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| |Note | US$'000 | | US$'000 | | | US$'000 | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| Profit for the period | 7 | 965 | | 592 | | | 1,068 | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| Other comprehensive income for the | | | | | | | | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| period | | | | | | | | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| Currency translation difference | | (124) | | 695 | | | 1,297 | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| | | (124) | | 695 | | | 1,297 | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| Total comprehensive income for the | | 841 | | 1,287 | | | 2,365 | |
| period | | | | | | | | |
+--------------------------------------+------+---------+--+----------+----------+------------+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| | | | | | | | | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| Attributable to: | | | | | | | | |
+--------------------------------------+------+---------+--+----------+---------------------+-+-------------+--+
| Equity shareholders of the company | 385 | | 868 | | | 1,323 | |
+---------------------------------------------+---------+--+----------+---------------------+-+-------------+--+
| Minority interests | 456 | | 419 | | | 1,042 | |
+---------------------------------------------+---------+--+----------+---------------------+-+-------------+--+
| Total comprehensive income for the period | 841 | | 1,287 | | | 2,365 | |
+---------------------------------------------+---------+--+----------+---------------------+-+-------------+--+
| | | | | | | | |
+--------------------------------------+------+---------+--+----------+----------+----------+-+-------------+--+
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | | | (Audited) | |
+-----------------------------------+------+------------------------+--+--------------+----------+
| | | (Unaudited) | | As at | |
+-----------------------------------+------+------------------------+--+--------------+----------+
| | | As at 30 June | | 31 December | |
+-----------------------------------+------+------------------------+--+--------------+----------+
| |Note | 2009 | | 2008 | | 2008 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | US$'000 | | US$'000 | | US$'000 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| NON-CURRENT ASSETS | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Goodwill | | 1,835 | | 1,834 | | 1,835 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Property, plant and equipment | 8 | 27,099 | | 25,640 | | 27,375 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Available-for-sale investment | | 12 | | 12 | | 12 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | 28,946 | | 27,486 | | 29,222 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| CURRENT ASSETS | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Inventories | | 140 | | 138 | | 137 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Trade and other receivables | | 9,623 | | 9,235 | | 8,103 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Cash and cash equivalents | | 310 | | 189 | | 780 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | 10,073 | | 9,562 | | 9,020 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| CURRENT LIABILITIES | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Trade and other payables | | 3,852 | | 4,036 | | 3,907 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Obligations under finance | | 569 | | - | | 599 | |
| leases | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Taxation | 4 | 939 | | 1,370 | | 695 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | 5,360 | | 5,406 | | 5,201 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| NET CURRENT ASSETS | | 4,713 | | 4,156 | | 3,819 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| TOTAL ASSETS LESS | | 33,659 | | 31,642 | | 33,041 | |
| CURRENT LIABILITIES | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| NON-CURRENT LIABILITIES | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Bank loan | | 1,915 | | 1,915 | | 1,915 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Obligations under finance | | 107 | | 9 | | 330 | |
| leases | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Loans from fellow investors in | | 787 | | 787 | | 787 | |
| subsidiaries | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | 2,809 | | 2,711 | | 3,032 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| NET ASSETS | | 30,850 | | 28,931 | | 30,009 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| CAPITAL AND RESERVES | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Share capital | 10 | 14,922 | | 14,922 | | 14,922 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Share premium | | 15,662 | | 15,662 | | 15,662 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Merger reserve | | 26,043 | | 26,043 | | 26,043 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Exchange reserve | | 2,252 | | 1,940 | | 2,377 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Accumulated losses | | (43,053) | | (43,771) | | (43,621) | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Statutory surplus reserve | | 1,491 | | 1,681 | | 1,549 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Total equity attributable to | | 17,317 | | 16,477 | | 16,932 | |
| equity holders of | | | | | | | |
| the Company | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| Minority Interest | | 13,533 | | 12,454 | | 13,077 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| TOTAL EQUITY | | 30,850 | | 28,931 | | 30,009 | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
| | | | | | | | |
+-----------------------------------+------+----------+--+----------+--+--------------+----------+
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Group | Share | Share | (note | (note | Exchange | Accumulated | Total | Minority | Total |
| | capital | premium | i) | ii) | reserve | losses | attributable | interest | |
| | | | Statutory | Merger | | | to equity | | |
| | | | surplus | reserve | | | holders | | |
| | | | reserve | | | | of the | | |
| | | | | | | | parent | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| | US$'00 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Balance at 1 January | 14,922 | 15,662 | 1,681 | 26,043 | 1,440 | (44,139) | 15,609 | 12,035 | 27,644 |
| 2008 | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Profit for the period | - | - | - | - | - | 117 | 117 | 475 | 592 |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Other comprehensive | - | - | - | - | 500 | 251 | 751 | (56) | 695 |
| income | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Total | - | - | - | - | 500 | 368 | 868 | 419 | 1,287 |
| comprehensive | | | | | | | | | |
| income for | | | | | | | | | |
| the period | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Balance at 30 June | 14,922 | 15,662 | 1,681 | 26,043 | 1,940 | (43,771) | 16,477 | 12,454 | 28,931 |
| 2008 (Unaudited) | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Balance at 1 January | 14,922 | 15,662 | 1,549 | 26,043 | 2,377 | (43,621) | 16,932 | 13,077 | 30,009 |
| 2009 | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Profit for the period | - | - | - | - | - | 510 | 510 | 455 | 965 |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Overprovision in | - | - | (58) | - | - | 58 | - | - | - |
| statutory surplus | | | | | | | | | |
| reserve | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Other comprehensive | - | - | - | - | (125) | - | (125) | 1 | (124) |
| income | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Total | - | - | (58) | - | (125) | 568 | 385 | 456 | 841 |
| comprehensive | | | | | | | | | |
| income for | | | | | | | | | |
| the period | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Balance at 30 June 2009 | 14,922 | 15,662 | 1,491 | 26,043 | 2,252 | (43,053) | 17,317 | 13,533 | 30,850 |
| (Unaudited) | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Balance at 1 January | 14,922 | 15,662 | 1,681 | 26,043 | 1,440 | (44,139) | 15,609 | 12,035 | 27,644 |
| 2008 | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Profit for the year | - | - | - | - | - | 360 | 360 | 708 | 1,068 |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Overprovision in | - | - | (158) | - | - | 158 | - | - | - |
| statutory surplus | | | | | | | | | |
| reserve | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Other comprehensive | - | - | 26 | - | 937 | - | 963 | 334 | 1,297 |
| income | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Total | - | - | (132) | - | 937 | 518 | 1,323 | 1,042 | 2,365 |
| comprehensive | | | | | | | | | |
| income for | | | | | | | | | |
| the period | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
| Balance at 31 December | 14,922 | 15,662 | 1,549 | 26,043 | 2,377 | (43,621) | 16,932 | 13,077 | 30,009 |
| 2008 (Audited) | | | | | | | | | |
+-------------------------------+---------+---------+-----------+---------+----------+-------------+--------------+------------+----------+
Notes:
(i) Statutory surplus reserve:
In accordance with the law of the People's Republic of China (the "PRC") and the
articles of association of certain of the Company's subsidiaries, directors of
these subsidiaries may at their discretion make appropriations to a statutory
surplus reserve equivalent to 10% of the subsidiaries' net profits.
Appropriations may also be made to statutory public welfare reserve equivalent
to 5 to 10% of the net profits of these operating subsidiaries. Distribution of
profits to shareholders can only be made after such appropriations.
The statutory surplus reserve may be used to reduce any losses incurred or be
capitalised as paid up capital. The use of the statutory public welfare reserve
is restricted to capital expenditure incurred for staff welfare facilities. The
statutory public welfare reserve is not available for distribution.
(ii) The merger reserve represents the difference between the nominal value
of shares of the subsidiary company acquired, and the nominal value of the
Company's shares issued in 2002.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the year ended 30 June 2009
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | (Unaudited) | | (Audited) | |
+----------------------------------------------+---------------------+----------+-------------+--+
| | Six months ended | | Year ended | |
+----------------------------------------------+---------------------+----------+-------------+--+
| | 30 June | | 31 December | |
+----------------------------------------------+---------------------+----------+-------------+--+
| | 2009 | | 2008 | | 2008 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | US$'000 | | US$'000 | | US$'000 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Cash flow from operating activities | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Profit before taxation | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| - Continuing operations | 1,157 | | 937 | | 1,315 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | 1,157 | | 937 | | 1,315 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Adjustments for : | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Interest on finance leases | 1 | | - | | 43 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Interest on bank loan | - | | - | | 133 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Interest income | (1) | | - | | (1) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Depreciation | 941 | | 110 | | 1,748 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Gain on disposal of a subsidiary | (1) | | - | | - | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Loss on disposal of property, plant and | 144 | | 2 | | 3 | |
| equipment | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Loss on written off of investment in a | 1 | | - | | - | |
| subsidiary | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Exchange adjustments | (79) | | 2,211 | | (291) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Operating profit before working capital | 2,163 | | 3,260 | | 2,950 | |
| changes | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Increase in inventories | (3) | | (14) | | (13) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| (Increase) / decrease in trade and other | (1,520) | | (923) | | 209 | |
| receivables | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| (Decrease) / increase in trade and other | (55) | | 430 | | 301 | |
| payables | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Net cash flow generated from operations | 585 | | 2,753 | | 3,447 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Interest paid | - | | - | | - | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Taxes paid | 52 | | (108) | | (686) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Net cash generated from operating activities | 637 | | 2,645 | | 2,761 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Investing activities | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Purchase of property, plant and equipments | (855) | | (2,884) | | (1,959) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Sales proceeds on disposal of a subsidiary | 1 | | - | | - | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Interest Income | 1 | | - | | 1 | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Net cash used in investing activities | (853) | | (2,884) | | (1,958) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Financing activities | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Repayment on finance lease obligations | (253) | | - | | (275) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Interest on finance leases | (1) | | - | | (43) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Interest on bank loan | - | | - | | (133) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Net cash used in financing activities | (254) | | - | | (451) | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Net (decrease) / increase in cash and cash | (470) | | (239) | | 352 | |
| equivalents | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Cash and cash equivalents at the beginning | 780 | | 428 | | 428 | |
| of the period/year | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| Cash and cash equivalents at the end of the | 310 | | 189 | | 780 | |
| period/year | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
| | | | | | | |
+----------------------------------------------+---------+-+---------+----------+-------------+--+
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the period ended 30 June 2009
1.GENERAL INFORMATION
The company is a public limited company incorporated and domiciled in the United
Kingdom. The registered office of the company is located at 2 Bloomsbury Street,
London WC1B 3ST. Its principal place of business is in Hong Kong and the
People's Republic of China ("PRC").
The principal activities of the company and its subsidiaries (hereinafter
collectively referred to as the "group") are terminal operation and barging
services provision.
The company's shares were admitted to trading on the AIM Market of the London
Stock Exchange. These condensed consolidated interim financial statements are
presented in United States Dollars, unless otherwise stated, and were reviewed
by the Audit Committee and approved for issue by the Board of Directors on
18 September 2009.
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation and statement of compliance
The company has a financial year end date of 31 December. These condensed
consolidated interim financial statements for the six months ended 30 June 2009
have been prepared in accordance with International Accounting Standard 34,
"Interim Financial Reporting". These condensed consolidated interim financial
statements should be read in conjunction with the annual financial statements of
the group for the year ended 31 December 2008, which have been prepared in
accordance with International Financial Reporting Standards ("IFRSs") as adopted
for use in the European Union ("EU").
EU-endorsed IFRSs may differ from IFRSs, as issued by the International
Accounting Standards' Board ("IASB") if, at any point in time, new or amended
IFRSs have not been endorsed by the EU. At 30 June 2009, there were no
unendorsed standards effective for the period ended 30 June 2009 affecting these
condensed consolidated interim financial statements, and there was no difference
between IFRSs endorsed by the EU and IFRSs issued by the IASB in terms of their
application to Yinggao Holdings Plc.
(b) Significant accounting policies
The condensed consolidated interim financial statements have been prepared under
the historical cost convention except for certain financial assets and
liabilities which are stated at fair values.
The accounting policies and methods of computation used in the preparation of
these condensed consolidated financial statements are consistent with those used
in the annual financial statements for the year ended 31 December 2008 except
for the adoption of standards, amendments and interpretations issued by the IASB
mandatory for annual financial year beginning 1 January 2009.
For the period ended 30 June 2009, the group have adopted the following new and
revised standards, amendment, or interpretations that have been issued.
+-----------------------+-----------------------+----------------------+
| | | Effective for |
| | | accounting |
| | | periods beginning |
| | | on or after |
+-----------------------+-----------------------+----------------------+
| IFRS 8 | Operating segments | 1 January 2009 |
+-----------------------+-----------------------+----------------------+
| | | |
+-----------------------+-----------------------+----------------------+
| IAS 1 (revised 2007) | Presentation of | 1 January 2009 |
| | financial | |
| | statements | |
+-----------------------+-----------------------+----------------------+
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the period ended 30 June 2009
(b) Significant accounting policies (Continued)
IFRS8 "Operating segments" (see note 3) is a disclosure standard that has
resulted in a redesignation of the group's reportable segments, but has had no
impact on the reported results or financial position of the group.
IAS1 "Presentation of financial statements (revised 2007)" has introduced a
number of terminology changes (including revised titles for the condensed
consolidated financial statements) and has resulted in a number of changes in
presentation and disclosure. However, IAS1 (revised 2007) has had no impact on
the reported results or financial position of the group.
(c) Possible impact of amendments, new standards and
interpretations issued but not yet effective for the six months
ended 30 June 2009
The group has not early adopted the following new and revised standards,
amendment, or interpretations that have been issued but are not yet effective
for current accounting period.
The group is in the process of making an assessment of what the impact of these
amendments, new standards and new interpretations is expected to be in the
period of initial application. The directors anticipate that the adoption of
these Standards and Interpretations as appropriate in future periods will have
no material impact on the financial statements of the group when the relevant
standards come into effect for periods commencing on or after 1 July
2009.
· IFRS 1 Revised IFRS 1 First-time adoption of IFRS
· IFRS 2 Share-based payments - Amendment, vesting conditions and
cancellations
· IFRS 3 Business combinations - Comprehensive revision on applying the
acquisition method
· IFRS 5 Non-current Assets Held for Sales and Discontinued Operations -
amendments
· IFRS 7 Financial Instruments: Disclosures - Amendment; Reclassification of
Financial Assets
· IAS 23 Borrowing Costs - Comprehensive revision to prohibit immediate
expensing
· IAS 27 Consolidated and Separate Financial Statements - Amendments arising
from IFRS3
· IAS 27 Consolidated and Separate Financial Statements - Amendment; Cost of
an investment in a subsidiary, jointly controlled entity or associate
(d) Use of estimates and assumptions
The preparation of financial information requires the use of estimates and
assumptions about future conditions. The use of available information and the
application of judgement are inherent in the formation of estimates. Actual
results in the future may differ from those reported as a result of the use of
estimates and assumptions about future conditions. Management believes that the
Company's critical accounting estimates involving a higher degree of judgement
or complexity with those assumptions and estimates mainly relate to the
impairment of loans and advances, the goodwill impairment and the valuation of
financial instruments.
(e) Consolidation
The condensed consolidated interim financial statements of Yinggao Holdings Plc
comprise the financial statements of Yinggao Holdings Plc. and its subsidiaries.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
For the period ended 30 June 2009
3.SEGMENT REPORTING
The group manages its businesses by type of services provided and also by
geographical division. It is similar to 2008 except the terminal and barging
services were separated into 2 reportable segments by geographical divisions.
It is the first time the group adopted of IFRS 8, Operating segments and in a
manner consistent with the way in which information is reported internally to
the group's most senior executive management for the purposes of resource
allocation and performance assessment. The group has identified the following
five reportable segments. Revenue and expenses are allocated to the reportable
segments based on the type of services and sub-divided into geographical
location.
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| | Continuing operations | Discontinuing | Total |
| | | operations | |
+-------------------------+-------------------------------------------------------------------------------------------------------+-------------------------+-------------------------+
| | Terminal and barging services | Trading and | Mining | Power plant | |
| | | others | | | |
+-------------------------+---------------------------------------------------+ + + + +
| | Hong Kong | | | | | Mainland China |
+-------------------------+-------------------------+-------------------------+-------------------------+-------------------------+-------------------------+-------------------------+
| For the six months | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
| ended (Unaudited) | | | | | | | | | | | | |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| Revenue from | 1,644 | 851 | 6,896 | 5,479 | - | - | - | - | - | - | 8,540 | 6,330 |
| external customers | | | | | | | | | | | | |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| Inter-segment | - | - | - | - | - | - | - | - | - | - | - | - |
| revenue | | | | | | | | | | | | |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| Reportable segment | 1,644 | 851 | 6,896 | 5,479 | - | - | - | - | - | - | 8,540 | 6,330 |
| revenue | | | | | | | | | | | | |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| | | | | | | | | | | | | |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| Reportable segment | 366 | (141) | 599 | 733 | - | - | - | - | - | - | 965 | 592 |
| profit / (loss) | | | | | | | | | | | | |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| | | | | | | | | | | | | |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| As at the period / | 30 | 31 | 30 | 31 | 30 | 31 | 30 | 31 | 30 June | 31 | 30 | 31 |
| year ended | June | December | June | December | June | December | June | December | 2009 | December | June | December |
| | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | (Unaudited) | 2008 | 2009 | 2008 |
| | (Unaudited) | (Audited) | (Unaudited) | (Audited) | (Unaudited) | (Audited) | (Unaudited) | (Audited) | | (Audited) | (Unaudited) | (Audited) |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| Reportable | 2,203 | 861 | 34,766 | 34,154 | 2,046 | 3,224 | - | - | 4 | 3 | 39,019 | 38,242 |
| segment assets | | | | | | | | | | | | |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
| | | | | | | | | | | | | |
+-------------------------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+-------------+-----------+
4.TAXATION
+---------------------------------------+---------+--+---------+-+-+------------+----+----+
| | (Unaudited) | | | (Audited) |
+---------------------------------------+----------------------+-+-+-----------------+
| | Six months ended | | | Year ended |
| | 30 June | | | 31 December |
+---------------------------------------+----------------------+-+-+-----------------+
| | 2009 | | 2008 | | | 2008 | |
+---------------------------------------+---------+--+---------+-+-+------------+---------+
| | US$'000 | | US$'000 | | | US$'000 | |
+---------------------------------------+---------+--+---------+-+-+------------+---------+
| PRC Enterprise Income Tax for the | 192 | | 345 | | | 247 | |
| period | | | | | | | |
+---------------------------------------+---------+--+---------+-+-+------------+----+----+
In respect of subsidiaries operating in Hong Kong, no provision for Hong Kong
profits tax are provided as there are tax losses brought forward to set off
against current period's assessable profit. (2008 : Nil)
Subsidiaries operating in the PRC are subject to Enterprise Income Tax ('EIT')
at a rate of 18%. However, certain subsidiaries are subject to tax holidays from
the local tax authorities under income tax law. Others had tax losses brought
forward from previous years.
On 16 March 2007, the National People's Congress passed the Corporate Income Tax
Law of the PRC (the "new tax law"). Under the new tax law, the statutory income
tax rate applicable to the company's subsidiaries in Guangzhou is changed from
15% to 25% progressively within five years from 1 January 2008 (2008: 18%; 2009:
20%; 2010: 22%; 2011: 25%). The new tax law has been applied when measuring the
group's current tax payable as at 30 June 2009..
No deferred tax is recognised on the unremitted earnings of the overseas
subsidiaries, as no dividend payments due to UK parent company are expected to
be made in the foreseeable future.
5. EARNINGS PER SHARE
Basic and diluted earnings per share are calculated by dividing the earnings
attributable to equity holders of the parent by the weighted average number of
ordinary shares in issue during the periods/year ended 30 June 2009, 30 June
2008 and 31 December 2008.
+------------------------------+---------------+--+---------------+--+---------------+--+
| | (Unaudited) | | (Audited) |
+------------------------------+----------------------------------+--+---------------+
| | Six months ended | | Year ended |
| | 30 June | | 31 December |
+------------------------------+----------------------------------+--+---------------+
| | 2009 | | 2008 | | 2008 | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| Continuing operations: | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| Profit attributable to | 510 | | 117 | | 360 | |
| equity | | | | | | |
| holders of the parent (US$ | | | | | | |
| '000) | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| Weighted average number of | 1,978,895,139 | | 1,978,895,139 | | 1,978,895,139 | |
| shares in | | | | | | |
| issue | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| Earnings per share | 0.03 | | 0.01 | | 0.02 | |
| (Basic and diluted) (US | | | | | | |
| cents) | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| Continuing and discontinued | | | | | | |
| operations: | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| Profit attributable to | 510 | | 117 | | 360 | |
| equity | | | | | | |
| holders of the parent (US$ | | | | | | |
| '000) | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| Weighted average number of | 1,978,895,139 | | 1,978,895,139 | | 1,978,895,139 | |
| shares in | | | | | | |
| issue | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
| Earnings per share | 0.03 | | 0.01 | | 0.02 | |
| (Basic and diluted) (US | | | | | | |
| cents) | | | | | | |
+------------------------------+---------------+--+---------------+--+---------------+--+
6. DIVIDEND
The directors do not recommend the payment of any dividend.
7.PROFIT FOR THE PERIOD IS ARRIVED AFTER CHARGING THE FOLLOWING :-
+------------------------------+------------+--+------------+--+--------------+--+
| | (Unaudited) | | (Audited) |
+------------------------------+----------------------------+--+--------------+
| | Six months ended | | Year ended |
| | 30 June | | 31 December |
+------------------------------+----------------------------+--+--------------+
| | 2009 | | 2008 | | 2008 | |
+------------------------------+------------+--+------------+--+--------------+--+
| | USD'000 | | USD'000 | | USD'000 | |
+------------------------------+------------+--+------------+--+--------------+--+
| Depreciation on property, | 941 | | 110 | | 1,748 | |
| plant and | | | | | | |
| equipment | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+
| Gain on disposal of a | (1) | | - | | - | |
| subsidiary | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+
| Loss on written of | 1 | | - | | - | |
| investment in a | | | | | | |
| subsidiary | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+
| Loss on disposal of | 144 | | 2 | | 3 | |
| property, plant and | | | | | | |
| Equipment | | | | | | |
+------------------------------+------------+--+------------+--+--------------+--+
8. PROPERTY, PLANT AND EQUIPMENT
During the period, the group spent approximately US$855,000 in acquiring
property, plant and equipment (Six months ended 30 June 2008: US$2,884,000).
During the period, the group demolished its oil storage tanks, which served in
the terminal and barging services segment in PRC, with a carrying amount of
USD160,000. There are no sales proceeds for this demolishment. The group also
disposed a vessel with a carrying amount of USD308,000 for sales proceeds of
USD324,000.
9. INVESTMENTS IN SUBSIDIARIES
At 30 June 2009, the Company held 100% of the ordinary shares of Yinggao
Investments Limited (Formerly known as Arko Offshore Holdings Ltd.), a company
incorporated in the British Virgin Islands ("BVI"), whose principal activity was
that of an investment holding company. Yinggao Investments Limited had the
following subsidiaries' undertakings:
+-------------------------------+--------------+-------------------------------------+-----------------+
| | Equity | | |
| | interests | | |
+-------------------------------+--------------+-------------------------------------+-----------------+
| |attributable | | Place of |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Name | to the | Principal | incorporation |
| | group | activities | |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Yinggao Energy Limited * # | 100% | Investment holding | BVI |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Yinggao Ship Chartering | 100% | Sub-letting of | Hong Kong |
| Limited * | | vessels | |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Yinggao Consultants Limited * | 100% | Providing | BVI |
| # | | management services | |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Yinggao Pacific Limited * # | 100% | Investment holding | BVI |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Long Prosperity Industrial | 100% | Investment holding | Republic of |
| Limited. ## | | | Seychelles |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Sanko Mineral Limited | 100% | Sub-letting | BVI |
| | | of yachts, | |
| | | ships and | |
| | | vessels | |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Yinggao Shipping (H.K.) | 100% | Providing | Hong Kong |
| Limited. # | | logistics | |
| | | and | |
| | | related | |
| | | services | |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Arko Terminal Limited | 100% | Investment holding | Republic of |
| ("ATL") # | | | Seychelles |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Changzhou Power | 59.2% | Inactive | PRC |
| Development company Limited | | | |
| ## | | | |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Keen Chance Terminal (GZ) | 40% | Investing | PRC |
| Company Limited ("KCT") | | in and | |
| | | operation | |
| | | of a | |
| | | terminal | |
| | | and | |
| | | providing | |
| | | logistics | |
| | | services | |
+-------------------------------+--------------+-------------------------------------+-----------------+
| Fujian Sanko Mining Limited. | 70% | Dormant | PRC |
+-------------------------------+--------------+-------------------------------------+-----------------+
+-----+----+------------------------+---------------------------+-------------------+
| * Directly held by Yinggao Investments Limited. |
| All other subsidiaries are indirectly held. |
+-----------------------------------------------------------------------------------+
| #During the period, the group has changed the name |
| of certain of its subsidiaries as listed below by |
| passing relevant board resolutions in each of the |
| group companies to match their core businesses with |
| present operating activities in terminal operation |
| and barging service operation in the PRC: |
| |
+-----------------------------------------------------------------------------------+
| | | Present names | Previous names | Effective Date |
+-----+----+------------------------+---------------------------+-------------------+
| | 1. | Yinggao Investments | Arko Offshore Holdings | 09 June 2009 |
| | | Limited | Limited | |
+-----+----+------------------------+---------------------------+-------------------+
| | 2. | Yinggao Energy Limited | Arko Energy Limited | 11 June 2009 |
+-----+----+------------------------+---------------------------+-------------------+
| | 3. | Yinggao Consultants | Arko Consultants Limited | 09 June 2009 |
| | | Limited | | |
+-----+----+------------------------+---------------------------+-------------------+
| | 4. | Yinggao Pacific | Arko Pacific Limited | 09 June 2009 |
| | | Limited | | |
+-----+----+------------------------+---------------------------+-------------------+
| | 5. | Yinggao Shipping | Arko Shipping Limited | 12 June 2009 |
| | | (H.K.) Limited | | |
+-----+----+------------------------+---------------------------+-------------------+
| | | | |
+-----+-----------------------------+---------------------------+-------------------+
| |
+-----------------------------------------------------------------------------------+
| ## Subsequently disposed of on 9 September 2009 |
+-----+----+------------------------+---------------------------+-------------------+
9. INVESTMENTS IN SUBSIDIARIES (CONTINUED)
The 40% equity interest in Keen Chance Terminal (GZ) company Limited ("KCT")
previously held by Keen Lloyd Energy Limited ("KLEL"), a subsidiary of Keen
Lloyd Holdings Limited ("KLHL"), has been transferred to ATL. The transfer has
been submitted for registration to the relevant PRC authorities.
Pursuant to an agreement dated 5 April 2002 entered into between KLEL and
Miaotou Economic Development company Limited ("MEDCL"), (a shareholder of KCT
who held a 30% equity interest in KCT), MEDCL agreed to vote in accordance with
the instructions of KLEL at board meetings in view of its indebtedness to KLEL,
for an approximate sum of RMB78 million (equivalent to US$9.4 million), and KLEL
intended to convert the outstanding loan into registered capital of KCT.
On 22 April 2003, KLEL entered into a shareholder agreement with MEDCL and
Harbour Economic Development company Limited ("HEDCL"), another shareholder in
KCT, whereby all parties agreed that MEDCL has unconditionally transferred the
authority empowered to its directors representative (including their rights and
obligations) to KLEL until KLEL transferred the 40% equity interests in KCL to
ATL to reiterate the aforesaid agreement dated 5 April 2002.
On 16 May 2003, a supplemental agreement was entered into between ATL, KLEL,
MEDCL and HEDCL by which all parties agreed that the above authority transferred
to KLEL would be vested in ATL after KLEL completed the transfer of equity
interests in KCT to ATL.
In accordance with the terms and conditions set out in the above agreements,
KLEL effectively controls the board of KCT and this arrangement has been
confirmed by the shareholders of KCT. In 2002, a Hong Kong lawyer expressed his
view that KCT is a subsidiary of KLEL under Hong Kong company Law. Control of
KLEL has been transferred to ATL and therefore in the opinion of the directors,
KCT is a subsidiary of ATL under the Companies Act 1985.
KCT will be a legal subsidiary of ATL immediately upon the registration of the
transfer of the 40% of equity in KCT from KLEL to ATL.
During the second half of 2007, pursuant to an agreement signed with the Hubei
Provincial Economic Committee Bureau, Suizhou City Government and the Hubei
Provincial Electricity Co., Ltd. on 30 June 2007, the power plant factory of
Changzhou Power Development Company Limited has been ordered to close down its
operation from July 2007 onwards owing to the macroeconomic and administrative
measures imposed by the order of State Council to clear off those ineffective
coal-fired power plants in Hubei Province.
+--------------------------------------------------+----------------+-------------+
| 10.share capital | |
+--------------------------------------------------+------------------------------+
| | Number | GBP |
+--------------------------------------------------+----------------+-------------+
| Authorised: |
| Ordinary shares of 0.5p each |
+---------------------------------------------------------------------------------+
| At 30 June 2009, 31 December 2008 and 30 June | 30,000,000,000 | 150,000,000 |
| 2008 | | |
+--------------------------------------------------+----------------+-------------+
| | | |
+--------------------------------------------------+----------------+-------------+
| Equivalent to: | | US$ |
| | | 265,395,280 |
+--------------------------------------------------+----------------+-------------+
| | | |
+--------------------------------------------------+----------------+-------------+
| Allotted, called up and fully paid: |
| Ordinary shares of 0.5p each |
+---------------------------------------------------------------------------------+
| At 30 June 2009, 31 December 2008 and 30 June | 1,978,895,139 | US$ |
| 2008 | | 14,921,520 |
+--------------------------------------------------+----------------+-------------+
11.OPERATING LEASE COMMITMENTS
At 30 June 2009, the group had total commitments in respect of land and building
and berth charge under operating leases:
+--------------------------------------------+------------+--+------------+--+--------------+----------+
| | (Unaudited) | | (Audited) |
+--------------------------------------------+----------------------------+--+--------------+
| | Six months ended | | Year ended |
| | 30 June | | 31 December |
+--------------------------------------------+----------------------------+--+--------------+
| | 2009 | | 2008 | | 2008 | |
+--------------------------------------------+------------+--+------------+--+--------------+----------+
| | USD'000 | | USD'000 | | USD'000 | |
+--------------------------------------------+------------+--+------------+--+--------------+----------+
| Leases | | | | | | |
| which | | | | | | |
| expire: | | | | | | |
+--------------------------------------------+------------+--+------------+--+--------------+----------+
| - | 405 | | 181 | | 354 | |
| in | | | | | | |
| the | | | | | | |
| next | | | | | | |
| year | | | | | | |
+--------------------------------------------+------------+--+------------+--+--------------+----------+
| - | 466 | | 299 | | 1,089 | |
| in | | | | | | |
| the | | | | | | |
| second | | | | | | |
| to | | | | | | |
| fifth | | | | | | |
| years | | | | | | |
+--------------------------------------------+------------+--+------------+--+--------------+----------+
| | 871 | | 480 | | 1,443 | |
+--------------------------------------------+------------+--+------------+--+--------------+----------+
| | | | | | - | |
+--------------------------------------------+------------+--+------------+--+--------------+----------+
12. CAPITAL COMMITMENTS
Capital commitments outstanding at 30 June 2009 in respect of the acquisition of
a set of quayside container crane from a non-related supplier in the financial
statements were as follows:
+-------------------------------------------------+------------+--+------------+--+--------------+----------+
| | (Unaudited) | | (Audited) |
+-------------------------------------------------+----------------------------+--+--------------+
| | Six months ended | | Year ended |
| | 30 June | | 31 December |
+-------------------------------------------------+----------------------------+--+--------------+
| | 2009 | | 2008 | | 2008 | |
+-------------------------------------------------+------------+--+------------+--+--------------+----------+
| | USD'000 | | USD'000 | | USD'000 | |
+-------------------------------------------------+------------+--+------------+--+--------------+----------+
| Contracted, | 1,227 | | 6,898 | | 740 | |
| but not | | | | | | |
| provided | | | | | | |
| for | | | | | | |
+-------------------------------------------------+------------+--+------------+--+--------------+----------+
| | | | | | - | |
+-------------------------------------------------+------------+--+------------+--+--------------+----------+
13.CONTINGENT LIABILITIES
(a) On 23 July 1998, a subsidiary of the company, Keen Chance Terminal (GZ)
Company Limited ("KCT"), gave a guarantee for RMB50 million (equivalent to
approximately US$5.9 million) in favour of the Huangpu Branch of the Industry
and Commercial Bank of China for banking facilities granted to Harbour Economic
Development Company Limited ("HEDCL"), a fellow investor in KCT and its ultimate
controlling party, Guangzhou Huangpu Foreign Trade group Company Limited and
secured over their equity interests in KCT. HEDCL was unable to repay the loans
due to the bank. The bank took action against KCT to enforce the guarantee for
the outstanding loan.
(b) On 9 November 1999, KCT gave a guarantee for RMB18 million
(equivalent to approximately US$2.1 million) in favour of Nangang Rural Credit
Co-operation Bank for banking facilities granted to Miaotou Economic Development
Company Limited ("MEDCL"), a fellow investor in KCT, secured over its equity
interests in KCT. MEDCL was unable to repay the outstanding loan.
On 27 September 2001, the Guangzhou Law Court delivered an order and notice that
the guarantees above were invalid and MEDCL's equity interest in KCT was frozen.
Based on legal advice, the equity interests had no material impact on the
operations of KCT and the directors consider that no provision is required.
KCT maintains that the guarantee given was invalid on the following
grounds:
(1) such guarantee did not have approval from the board of directors of KCT;
(2) in accordance with the law of the Peoples Republic of China, the board of
directors and the management of KCT cannot give KCT's properties for guarantee
to its shareholder; and
(3) the controlling party of HEDCL has not held a valid business licence since
1998 and ceased operations in 1999. In accordance with the banking regulations
of the Peoples Republic of China, the bank cannot lend money to enterprises
which do not have a valid business licence.
The legal proceedings are still in progress. Based on legal advice, the
directors are of the opinion that, the loan agreement was void because it was
illegal and accordingly, the guarantee contract was also invalid.
Furthermore, Keen Lloyd Holdings Limited, the company's parent company, has
indemnified the group against any loss KCT will suffer should the guarantee be
enforceable.
Accordingly, the directors are of the opinion that no provision should be made
in the financial statements for any possible claim from the bank in respect of
the litigation.
(c)Following the closure of the power plant on 30 June 2007, the group may be
required to incur decommissioning costs of approximately Great British Pound
300,000, in respect of the power plant site held under Changzhou Power
Development Company Limited ("CZPD"), if it is not sold before the end of
2010 (the date at which the plant is required to be demolished). After the
period end, on September 9, 2009, Yinggao Energy Limited ("YEL") sold 100% of
its equity interest in Long Prosperity Industrial Limited ("LPIL") and its
subsidiary CZPD to Winko Foundation Limited ("WFL"). The result of the sale of
the shares is that the liabilities and issues that currently sit in LPIL and its
subsidiary CZPD will thereafter be outside the group's consolidated accounts.
Since LPIL and CZPD were subsequently disposed of, it is not probable that an
outflow of economic resources will be required and accordingly no provision is
made in respect of these costs in these condensed consolidated interim financial
statements.
14. DISPOSAL OF A SUBSIDIARY
On 23 March 2009, the group disposed 100% of its interest in Arko Satellite
Limited. The proceeds on disposal of HK$10,000 were recorded as receivable by
the group.
15. WRITTEN OFF INVESTMENT IN A SUBSIDIARY
In March 2009, the registered licences of Arko Silicon (Hubei) Limited was
de-registered by the PRC Business Bureau. The 100% of its interest in Arko
Silicon (Hubei) Limited was written off by the group.
16. POST BALANCE SHEET EVENTS
a) Change name of the company
Subsequent to balance sheet date, the company's name was changed from "Arko
Holdings plc" to "Yinggao Holdings plc" on 24 August 2009.
b) Disposal of Equity Interest in Long Prosperity Industrial Limited
The company announced on September 9, 2009 that a wholly owned subsidiary of the
company, Yinggao Energy Limited ("YEL") has agreed to sell the 100 per cent.
equity interest it owns in Long Prosperity Industrial Limited ("LPIL") to a
related company, Winko Foundation Limited ("WFL"), whose sole shareholder, Keen
Lloyd Holdings Limited, is also the major shareholder of the company, holding
92.06 per cent. of the company's issued share capital.
The only asset owned by LPIL is a 59.2 per cent stake in Changzhou Power
Development Company Limited ("CZPD"), a subsidiary operating a coal-fired power
plant in Hubei , China. The power plant ceased operation in the third quarter of
2007 and has shut down following an agreement signed with the local government
in June 2007.
An announcement was made on 4 June 2008 by the company detailing that the value
of the property, plant and equipment at the power plant in Hubei was wholly
written off. As a result, the power plant now carries no value in the balance
sheet of the consolidated accounts of the company and no longer makes any
contributions to the company.
In terms of liabilities, CZPD is the borrower in respect of the US$1.9 million
loan from Industrial and Commercial Bank of China Limited. This was the disputed
loan which lead to the qualification in the audit report for the year ended 31
December 2008. In addition, CZPD may incur decommissioning costs of
approximately Great British Pound 300,000 in respect of the power plant if it is
not sold prior to 2010. The result of the sale of the shares in LPIL to WFL is
that the liabilities and issues that currently sit in either LPIL or its
subsidiary CZPD will thereafter be outside the group's consolidated accounts
will have significant uncertainties removed from them.
Under the sale and purchase agreement of YEL, it will dispose of the 5,000
ordinary shares it owns in LPIL to WFL for a nominal consideration of HK$1.00.
In addition, the agreement states that YEL will be paid 50 per cent. of any
amount recoverable by LPIL as a result of the legal proceedings in which LPIL is
currently engaged as co-plaintiff with Global Assets Limited and
b)Disposal of Equity Interest in Long Prosperity Industrial Limited (Continued)
Walton Enterprises Limited against Sun Hung Kai Securities Limited for breach of
contract in relation to the sale of equity in CZPD.
The independent directors of the company, having consulted with Daniel Stewart &
Company plc, the company's nominated adviser, consider that the disposal of
YEL's equity interest in LPIL is in the best interests of the company and that
the terms of the transaction as fair and reasonable insofar as shareholders are
concerned.
17. RELATED PARTY TRANSACTIONS
Other than transactions otherwise disclosed in the financial statements, the
group and the Company had the following material transactions which were carried
out on an arm's length basis with related parties during the year:
+---------------+--+---------+--+--------------+--+---------------+--+---------+--+--------------+--------+--+
| | (Unaudited) | | (Audited) |
+ +----------------------------+--+-----------------------+
| | Six months ended | | Year ended |
| | 30th June | | 31st December |
+ +----------------------------+--+-----------------------+
| | 2009 | | 2008 | | 2008 | |
+-------------------------------------------------+---------------+--+---------+--+--------------+-----------+
| Name of | | Note | | Nature | | US$'000 | | US$'000 | | US$'000 | |
| company | | | | | | | | | | | |
+---------------+--+---------+--+--------------+--+---------------+--+---------+--+--------------+-----------+
| Guangzhou | | (a) | | Agency | | 44 | | 41 | | 82 | |
| Tung | | | | Charges | | | | | | | |
| Lloyd | | | | | | | | | | | |
| Shipping | | | | | | | | | | | |
| Agency | | | | | | | | | | | |
| Limited | | | | | | | | | | | |
+---------------+--+---------+--+--------------+--+---------------+--+---------+--+--------------+--------+--+
Notes:
* A company in which the Chairman, Mr Qin Shun Chao, is a director.
18. FINANCIAL STATEMENTS
This statement does not comprise full financial statements within the meaning of
Section 434 of the Companies Act 2006.
19. COMPARATIVE FIGURES
Certain comparative figures have been reclassified to confirm with the current
period's presentation.
20. FINANCIAL RISK MANAGEMENT
All aspects of the group's financial risk management objectives and policies are
consistent with those disclosed in the annual financial statement for the year
ended 31 December 2008.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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