20th Jun 2008 07:00
HaiKe Chemical Group Ltd.
UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED
31 MARCH 2008
HaiKe Chemical Group Ltd ("HaiKe" or the "Company"), the AIM quoted (AIM: HAIK) petrochemical, speciality chemical and biochemical business based in China, is pleased to announce its unaudited results for the first quarter (or three months) ended 31 March 2008 ("2008Q1").
The results for the first quarter ended 31 March 2007 ("2007Q1"), which are set out below for comparative purposes, are those of the Company and its subsidiaries.
First Quarter 2008 Highlights
Total revenue increased 92% to US$ ("$") 141.7m (2007Q1: $73.9m)
Petrochemical revenues increased 108% to $116.8 m (2007Q1: $56.1m)
Speciality chemical* revenues increased 40% to $24.9m (2007Q1: $17.8m)
Gross profit margin lower at 5.0% (2007Q1: 12.1%)
Profit after tax decreased 74% to $1m (2007Q1: $3.9m)
Loss after minority interests of $0.1m (2007Q1: profit of $2.6m)
Construction of the speciality chemical facilities remains on schedule
* including biochemical
Mr. Yang Xiaohong, Executive Chairman, said:
"I am pleased to present our results for the first quarter ended 31 March 2008. The results reflect the current challenging market conditions being experienced by the Group within the petrochemical sector. However, I would like to highlight the particularly strong performance of the chemical side of the business over the period, which generated a pre tax profit of $3.7m, up 70% on the comparable period last year.
"Recognising its potential, and with the adverse market conditions currently being experienced in the petrochemical sector, our focus going forward will be on the development of our speciality chemical facilities and improving the flexibility and scale of our petrochemical activities. This will ensure the Company continues to increase its speciality chemical sales and increase the Company's production
of high-margin products, which will only prove beneficial to overall margins and profit."
For further information please contact:
|
HaiKe |
Johnson Lau, Chief Finance Officer |
+86 (0) 546 8289173 +852 37520631 |
|
Evolution Securities Limited (Nominated adviser) |
Stuart Andrews / Tim Worlledge |
+44 (0) 20 7071 4300 |
|
Evolution Securities China Limited (Financial adviser and broker) |
Barry Saint / Esther Lee |
+44 (0) 20 7220 4850 |
|
Cardew Group |
Rupert Pittman / Shan Shan Willenbrock / Emma Consett |
+44 (0) 20 7930 0777 |
First Quarter 2008 Results
Financial Review
During the first quarter ended 31 March 2008, total revenue increased 92% to $141.7m from $73.9m in 2007Q1. On a segmental basis, sales of petrochemical products increased 108% to $116.8m in 2008Q1 from $56.1m in 2007Q1, as a result of the increased sales price and volume of petrochemical products. The sales of speciality chemicals (excluding biochemical) grew 43% to $24.3m in 2008Q1 from $17.0m in 2007Q1, due to increased market demand. Biochemical revenue decreased 25% to $0.6m in 2008Q1 from $0.8m in 2007Q1 due to the temporary restriction on the export of heparin-based products imposed by the Chinese government in February 2008.
Cost of sales increased 107% to $134.7m in 2008Q1 from $65.0m in 2007Q1, due to the increased sales volume and the significant increase in material costs. The incremental selling prices of the petrochemical products were lower than the increases in material costs for the petrochemical sector and this contributed to the lower gross margin and fall in profit in the first quarter. Conversely however, the shift towards the higher-margin speciality chemical and biochemical products resulted in an improved gross margin and profit for the chemical side of the business, with profit before tax for the speciality and biochemical businesses increasing 68% to $3.7m (2007Q1: $2.2m) and gross margin for these divisions increasing from 18% to 22%. Nonetheless, the reduction in the petrochemical margins still outweighed the increases in speciality and biochemical margins and the overall gross margin declined to 5.0% in 2008Q1 from 12.1% in 2007Q1.
Sales and distribution expenses increased 117% to $1.3m in 2008Q1 from $0.6m in 2007Q1 as a result of the increased freight charges and promotion costs resulting from the significant increase in sales of the speciality chemical products compared to the prior period. Non-recurring AIM admission expenses contributed $1.8m of administrative expenses in 2007Q1. Other administrative expenses increased slightly from $1.7m in 2007Q1 to $1.9m in 2008Q1 as a result of additional personnel costs. Finance costs increased 133% from $1.2m in 2007Q1 to $2.8m in 2008Q1 due to the increase of the average loan balance and increase of prime rate in China during the period. As a result of the above, operating profit decreased by $1.1m to $4.1m in 2008Q1 from $5.2m in 2007Q1. The profit before income tax also dropped by $2.6m from $4.0m in 2007Q1 to $1.4m in 2008Q1.
The two-year full income tax exemptions granted to three operating subsidiaries, Hi-Tech Chemical, Hi-Tech Spring and Hi-Tech Shengli, expired in January 2008. These three operating subsidiaries now remain entitled to a three-year 50% income tax exemption from January 2008 to December 2010. This change in tax exemptions resulted in an income tax increase to $0.4m in 2008Q1 from $0.1m in 2007Q1.
Profit (after minority interests) attributable to equity holders of HaiKe decreased $2.7m to a loss of $0.1m in 2008Q1, from a profit of $2.6m in 2007Q1.
Basic and diluted earnings per share changed to a loss per share of US 0.3 cents in 2008Q1 from earnings per share of US 8 cents in 2007Q1.
Operational Review
During the first quarter of 2008, the petrochemical sector continued to experience challenging market conditions, with crude oil prices continuing to rise across the globe. The ongoing rise in oil prices continued to put pressure on the Company's residual oil and petrolatum oil feedstock and had a direct negative impact on overall petrochemical margins and profit. Unfortunately, in the first quarter, these reductions were not offset by increases in the selling prices of diesel products.
However, despite this current imbalance, the Board believes that, the Company will benefit from anticipated
changes in the Chinese government's domestic oil pricing policy. It is expected that these changes, as and when they occur, will allow the Company to sell certain refined products at higher prices, which will help to offset the reduction in margins and profit. At the present time, downstream petrochemical companies in China purchase crude oil at world market prices and sell certain refined products at domestic market prices set by the Chinese government.
As a result of the ongoing challenging market conditions within the petrochemical sector, the Company is
increasing its focus on the speciality chemical sector. Despite the petrochemical business being the largest contributor to group revenue, the speciality chemical business is now the largest contributor to group profit. The focus for the Company going forward is therefore, to increase speciality chemical production with selective production of petrochemical products, mainly focusing on more high-margin products to enhance profit.
As previously announced, the construction phases of the dimethyl carbonate and caustic soda expansion projects have been completed and it is expected that the testing phases would be finished by July 2008. These facilities are expected to increase the percentage of sales coming from the speciality chemical business and increase the proportion of sales coming from high-margin products. It is anticipated therefore that these new facilities will generate significant revenue and profit growth for HaiKe.
The biochemical business still remains the Company's smallest contributor to group revenue and profit, and although its results do not have a significant impact on the Group's overall results, the biochemical market is still a market where good gross margins can be achieved. Despite contributing to the improved profit and gross margin of the chemical side of the business, biochemical revenues decreased 25% during the period. In February 2008, there were several fatalities resulting from contaminated heparin-based products, which were being exported from China to the United States and Germany. Consequently, the Chinese government imposed a temporary restriction on the export of heparin-based products for the entire biochemical industry,
which resulted in our lower than expected biochemical sales for 2008Q1. The temporary restriction applied to all exporters, even though our products did not breach any safety standards. The Company subsequently passed all quality assurance testing and the restriction was lifted in April 2008.
Despite this temporary restriction, demand for our biochemical products remains strong and this has been demonstrated by several new orders won since May 2008.
The Company has decided that it will be moving to half yearly reporting with effect from the interim results for the six months ended 30 June 2008.
Outlook
Market conditions for the petrochemical sector remain tough but demand for our products continues to increase. The speciality chemical business is showing strong improvements on the comparable period last year and, again, we are continuing to experience increasing demand for our products.
The focus for 2008 is to continue the expansion of the dimethyl carbonate and caustic soda production facilities whereby the testing of the new facilities is expected to be completed by July 2008. We continue to explore a number of other capacity expansion projects, in particular within the speciality chemical sector, together with other potential applications and revenue streams both in our existing and related new markets.
We are confident of achieving further growth in both revenues and gross profits for the remainder of 2008 despite the high oil price. We anticipate that this growth will be driven by our existing areas of business, but primarily by the speciality chemical business, and will be supported by increased domestic demand for all our products.
CONSOLIDATED INCOME STATEMENT
For the three months ended 31 March 2008
|
Three months ended 31 Mar |
||||
|
2008 |
2007 |
|||
|
US$'000 |
US$'000 |
|||
|
(Restated) |
||||
|
Unaudited |
Unaudited |
|||
|
Revenue |
141,704 |
73,870 |
||
|
Cost of sales |
(134,680) |
(64,965) |
||
|
Gross profit |
7,024 |
8,905 |
||
|
Other operating income |
244 |
346 |
||
|
Selling and distribution expenses |
(1,292) |
(592) |
||
|
AIM admission expenses |
- |
(1,772) |
||
|
Other administrative expenses |
(1,898) |
(1,722) |
||
|
Total administrative expenses |
(1,898) |
(3,494) |
||
|
Profit from operations |
4,078 |
5,165 |
||
|
Finance income |
193 |
40 |
||
|
Finance costs |
(2,752) |
(1,219) |
||
|
Share of results of associates |
(111) |
- |
||
|
Profit before income tax |
1,408 |
3,986 |
||
|
Income tax expense |
(410) |
(42) |
||
|
Profit for the period |
998 |
3,944 |
||
|
Attributable to: |
||||
|
Equity holders of the parent |
(118) |
2,588 |
||
|
Minority interest |
1,116 |
1,356 |
||
|
998 |
3,944 |
|||
|
(Loss) / Earnings per share ($) |
||||
|
Basic |
(0.003) |
0.082 |
||
|
Diluted |
(0.003) |
0.081 |
||
CONSOLIDATED BALANCE SHEET
For the three months ended 31 March 2008
|
31 Mar 2008 |
31 Mar 2007 |
31 Dec 2007 |
||||
|
US$'000 |
US$'000 |
US$'000 |
||||
|
(Restated) |
||||||
|
Unaudited |
Unaudited |
Audited |
||||
|
ASSETS |
||||||
|
Non-current assets |
||||||
|
Property, plant and equipment |
107,149 |
55,047 |
105,162 |
|||
|
Intangible assets |
4,343 |
1,835 |
3,099 |
|||
|
Investments in equity-accounted associates |
256 |
190 |
354 |
|||
|
Available-for-sale investments |
532 |
634 |
496 |
|||
|
Deferred tax assets |
719 |
1,043 |
661 |
|||
|
112,999 |
58,749 |
109,772 |
||||
|
Current assets |
||||||
|
Inventories |
59,004 |
20,202 |
44,858 |
|||
|
Trade and other receivables |
30,410 |
30,428 |
30,169 |
|||
|
Amounts due from related parties |
- |
7,020 |
- |
|||
|
Financial assets at fair value through profit or loss |
285 |
1,293 |
274 |
|||
|
Cash and cash equivalents |
34,402 |
29,393 |
24,319 |
|||
|
124,101 |
88,336 |
99,620 |
||||
|
Total assets |
237,100 |
147,085 |
209,392 |
|||
|
LIABILITIES |
||||||
|
Current liabilities |
||||||
|
Short-term loan |
100,479 |
61,954 |
86,093 |
|||
|
Trade and other payables |
52,667 |
38,727 |
56,763 |
|||
|
Deferred income |
142 |
129 |
185 |
|||
|
Income tax payable |
2,142 |
3,108 |
1,630 |
|||
|
Amounts due to related parties |
18,170 |
191 |
7,223 |
|||
|
173,600 |
104,109 |
151,894 |
||||
|
Non-current liabilities |
||||||
|
Long-term loan |
2,849 |
2,663 |
- |
|||
|
Deferred income |
1,271 |
1,024 |
1,412 |
|||
|
4,120 |
3,687 |
1,412 |
||||
|
Total liabilities |
177,720 |
107,796 |
153,306 |
CONSOLIDATED BALANCE SHEET - continued
For the three months ended 31 March 2008
|
31 Mar 2008 |
31 Mar 2007 |
31 Dec 2007 |
||||
|
US$'000 |
US$'000 |
US$'000 |
||||
|
(Restated) |
||||||
|
Unaudited |
Unaudited |
Audited |
||||
|
CAPITAL AND RESERVES |
||||||
|
Share capital |
77 |
77 |
77 |
|||
|
Share premium |
18,338 |
18,338 |
18,338 |
|||
|
Other reserves |
4,510 |
4,510 |
4,510 |
|||
|
Statutory reserve |
3,996 |
2,351 |
3,996 |
|||
|
Foreign currency translation reserve |
4,785 |
547 |
2,911 |
|||
|
Retained earnings |
16,078 |
7,693 |
16,196 |
|||
|
Equity attributable to equity holders of the parent |
47,784 |
33,516 |
46,028 |
|||
|
Minority interest |
11,596 |
5,773 |
10,058 |
|||
|
Total equity |
59,380 |
39,289 |
56,086 |
|||
|
Total liabilities and equity |
237,100 |
147,085 |
209,392 |
|||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
||||||||||||||||||
|
Share capital |
|
Share premium |
|
Other reserves |
|
Statutory reserve |
|
Retained earnings |
|
Foreign currency translation reserve |
Total |
|
Minority interests |
|
Total equity |
|||
|
(Restated) |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
|||||||||
|
Unaudited |
||||||||||||||||||
|
Balance as at 1 January 2007 (Audited) |
50 |
- |
4,259 |
2,351 |
5,105 |
433 |
12,198 |
4,358 |
16,556 |
|||||||||
|
Foreign currency translation |
- |
- |
- |
- |
- |
114 |
114 |
59 |
173 |
|||||||||
|
Net income recognised directly in equity |
- |
- |
- |
- |
- |
114 |
114 |
59 |
173 |
|||||||||
|
Net profit for the financial period as restated |
- |
- |
- |
- |
2,588 |
- |
2,588 |
1,356 |
3,944 |
|||||||||
|
Total recognised income and expense for the financial period |
- |
- |
- |
- |
2,588 |
114 |
2,702 |
1,415 |
4,117 |
|||||||||
|
Issue of share capital |
27 |
20,154 |
- |
- |
- |
- |
20,181 |
- |
20,181 |
|||||||||
|
Share issue costs |
- |
(1,816) |
- |
- |
- |
- |
(1,816) |
- |
(1,816) |
|||||||||
|
Expenses of floatation |
- |
- |
251 |
- |
- |
- |
251 |
- |
251 |
|||||||||
|
Balance as at 31 March 2007 (unaudited ) |
77 |
18,338 |
4,510 |
2,351 |
7,693 |
547 |
33,516 |
5,773 |
39,289 |
|||||||||
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - continued
|
||||||||||||||||||
|
Share capital |
|
Share premium |
|
Other reserves |
|
Statutory reserve |
|
Retained earnings |
|
Foreign currency translation reserve |
Total |
|
Minority interests |
|
Total equity |
|||
|
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
US$'000 |
||||||||||
|
Unaudited |
||||||||||||||||||
|
Balance as at 1 January 2008 |
77 |
18,338 |
4,510 |
3,996 |
16,196 |
2,911 |
46,028 |
10,058 |
56,086 |
|||||||||
|
Foreign currency translation |
- |
- |
- |
- |
- |
1,874 |
1,874 |
422 |
2,296 |
|||||||||
|
Net income recognised directly in equity |
- |
- |
- |
- |
- |
1,874 |
1,874 |
422 |
2,296 |
|||||||||
|
Net loss for the financial period |
- |
- |
- |
- |
(118) |
- |
(118) |
1,116 |
998 |
|||||||||
|
Total recognised income and expense for the financial period |
- |
- |
- |
- |
(118) |
1,874 |
1,756 |
1,538 |
3,294 |
|||||||||
|
Balance as at 31 March 2008 (unaudited) |
77 |
18,338 |
4,510 |
3,996 |
16,078 |
4,785 |
47,784 |
11,596 |
59,380 |
|||||||||
Other reserves comprise the consolidation reserves and the options issued. CONSOLIDATED CASH FLOW STATEMENTS
For the three months ended 31 March 2008
|
Note |
Three months ended 31 Mar |
||||
|
2008 |
2007 |
||||
|
US$'000 |
US$'000 |
||||
|
(Restated) |
|||||
|
Unaudited |
Unaudited |
||||
|
Cash flow from operating activities |
a |
13,421 |
5,636 |
||
|
Cash flow from investing activities |
|||||
|
Purchase of property, plant and equipment |
(14,110) |
(6,341) |
|||
|
Purchase of intangible assets |
(1,139) |
- |
|||
|
Purchase of available-for-sale investments |
- |
(1,290) |
|||
|
Proceeds from disposal of property, plant and equipment |
- |
58 |
|||
|
Cash flow used in investing activities |
(15,249) |
(7,573) |
|||
|
Cash flow from financing activities |
|||||
|
Issuance of ordinary shares for public offering |
- |
20,181 |
|||
|
Share issue expenses |
- |
(1,816) |
|||
|
Increase in long-term loan |
2,849 |
- |
|||
|
Increase in short-term loan |
40,762 |
27,030 |
|||
|
Repayment of short-term loan |
(30,013) |
(15,429) |
|||
|
Interest paid |
(2,752) |
(1,219) |
|||
|
Cash flow from financing activities |
10,846 |
28,747 |
|||
|
Net increase in cash and cash equivalents |
9,018 |
26,810 |
|||
|
Cash at beginning of period |
24,319 |
2,528 |
|||
|
Foreign currency translation differences |
1,065 |
55 |
|||
|
Cash at end of period |
34,402 |
29,393 |
|||
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENTS
(a) Cash from operating activities
|
Three months ended 31 Mar |
|||||
|
2008 |
2007 |
||||
|
US$'000 |
US$'000 |
||||
|
(Restated) |
|||||
|
Unaudited |
Unaudited |
||||
|
Profit before income tax |
1,408 |
3,986 |
|||
|
Adjustments for: |
|||||
|
Amortisation of intangible assets |
53 |
69 |
|||
|
Provisions for doubtful debts |
82 |
39 |
|||
|
Allowance for non-trade debts |
40 |
(300) |
|||
|
Depreciation of property, plant and equipment |
2,658 |
1,802 |
|||
|
Loss on disposal of property, plant and equipment |
- |
31 |
|||
|
Amortisation of deferred capital grants |
(36) |
(32) |
|||
|
Share-based payment |
- |
439 |
|||
|
Share of result of associates |
111 |
- |
|||
|
Finance income |
(193) |
(40) |
|||
|
Finance expense |
2,752 |
1,219 |
|||
|
Operating cash flows before working capital changes |
6,875 |
7,213 |
|||
|
Working capital changes: |
|||||
|
(Increase)/decrease in: |
|||||
|
Inventories |
(12,172) |
(3,006) |
|||
|
Trade and other receivables |
2,673 |
(5,680) |
|||
|
Amounts due from related parties |
- |
(6,106) |
|||
|
Increase/(decrease) in: |
|||||
|
Trade and other payables |
5,325 |
13,175 |
|||
|
Amounts due to related parties |
10,527 |
- |
|||
|
Cash generated from operations |
13,228 |
5,596 |
|||
|
Interest received |
193 |
40 |
|||
|
Income tax paid |
- |
- |
|||
|
Net cash generated from operating activities |
13,421 |
5,636 |
|||
NOTES TO THE CONSOLIDATED FINANCIAL INFORMATION
BACKGROUND AND BASIS OF PREPARATION
The financial information comprises the unaudited consolidated results for the three month periods ended 31 March 2008 and 2007 and the consolidated balance sheets at 31 March 2008 (unaudited) and 31 December 2007 (audited). The Company's published financial statements for the year ended 31 December 2007 have been reported on by the Company's auditors. The auditors' report on those financial statements was unqualified.
The financial information has been prepared in accordance with the basis of preparation and accounting policies set out in the full financial statements for the year ended 31 December 2007. Full details of the basis of preparation and accounting policies are available in our annual report issued on 20 May 2008.
The AIM admission expenses and other administrative expenses of $1,772,000 and $108,000, respectively, were incorrectly recorded into the Company's share premium and other reserves accounts. The financial information for the three months ended 31 March 2007 has been restated to correct this error. The effect of the restatement on the financial information is summarised below. There is no effect on the three months ended 31 March 2008 and the year ended 31 December 2007.
US$'000
(Increase) in AIM admission expenses (1,772)
(Increase) in other admission expenses (108)
(Decrease) in profit (1,880)
Increase in share premium 1,757
Increase in other reserves 123
(Decrease) in retained earnings (1,880)
Increase in equity -
2. TAXATION
Major components of income tax expense
The major components of income tax expense are as follows:
|
Three months ended 31 Mar |
||||
|
2008 |
2007 |
|||
|
US$'000 |
US$'000 |
|||
|
(Restated) |
||||
|
Unaudited |
Unaudited |
|||
|
Current income tax |
440 |
- |
||
|
Deferred income tax: |
||||
|
Origination and reversal of temporary differences |
(30) |
42 |
||
|
Income tax recognised in income statement |
410 |
42 |
||
Relationship between tax expense and accounting profit
A reconciliation between tax expense and the accounting profit multiplied by the applicable corporate tax rate is as follows:
|
Three months ended 31 Mar |
||||
|
2008 |
2007 |
|||
|
US$'000 |
US$'000 |
|||
|
(Restated) |
||||
|
Unaudited |
Unaudited |
|||
|
Accounting profit before income tax |
1,408 |
3,986 |
||
|
Tax at respective companies' domestic income tax rate |
360 |
1,459 |
||
|
Effect of partial tax exemption |
(440) |
(1,398) |
||
|
Unrecognised tax loss |
506 |
- |
||
|
Utilisation of previously unrecognised tax loss |
(16) |
(19) |
||
|
Income tax expense recognised in income statement |
410 |
42 |
||
Deferred tax assets
Deferred income tax assets relates to the following:
|
31 Mar 2008 |
31 Mar 2007 |
31 Dec 2007 |
||||
|
US$'000 |
US$'000 |
US$'000 |
||||
|
Unaudited |
Unaudited |
Audited |
||||
|
Provision for doubtful debts |
690 |
1,016 |
632 |
|||
|
Allowance for long-term investment |
29 |
22 |
29 |
|||
|
Pre-trading expenses |
- |
5 |
- |
|||
|
719 |
1,043 |
661 |
Unrecognised tax losses
As at 31 March 2008, the Group has tax losses of approximately $1,581,000 (31 March 2007: $1,058,000; 31 December 2007: $1,425,000) that are available to offset against future taxable profits of the companies in which the losses arose and for which no deferred tax asset is recognised due to uncertainty of its recoverability. The use of these tax losses is subject to the agreement of the tax authorities and compliance with certain provisions of the tax legislation of the country in which the companies operate.
3. SEGMENTAL ANALYSIS
(a) Business segments
The following table presents information about the Company's revenues and results by business segment for the three months ended 31 March 2008 and 2007, respectively.
|
Three months ended 31 Mar |
||||
|
2008 |
2007 |
|||
|
US$'000 |
US$'000 |
|||
|
(Restated) |
||||
|
Unaudited |
Unaudited |
|||
|
Sales to external customers |
||||
|
Petrochemical |
116,785 |
56,077 |
||
|
Chemical products |
24,919 |
17,793 |
||
|
141,704 |
73,870 |
|||
|
(Loss) / profit for the period |
||||
|
Petrochemical |
(1,996) |
3,892 |
||
|
Share of results of associates |
(111) |
- |
||
|
(2,107) |
3,892 |
|||
|
Chemical products |
3,666 |
2,154 |
||
|
Unallocated expenses |
(151) |
(2,060) |
||
|
Profit before income tax |
1,408 |
3,986 |
||
|
Income tax expense |
(410) |
(42) |
||
|
Profit for the period |
998 |
3,944 |
||
|
31 Mar 2008 |
31 Mar 2007 |
31 Dec 2007 |
||||
|
US$'000 |
US$'000 |
US$'000 |
||||
|
Unaudited |
Unaudited |
Audited |
||||
|
Segment assets |
||||||
|
Petrochemical |
192,988 |
93,390 |
163,205 |
|||
|
Investment in associate |
256 |
190 |
179 |
|||
|
193,244 |
93,580 |
163,384 |
||||
|
Chemical products |
75,298 |
58,781 |
81,368 |
|||
|
Unallocated assets |
296 |
6,553 |
1,206 |
|||
|
Less: Intragroup balance |
(31,738) |
(11,829) |
(36,566) |
|||
|
237,100 |
147,085 |
209,392 |
|
Segment liabilities |
||||||
|
Petrochemical |
153,855 |
70,497 |
133,981 |
|||
|
Chemical products |
51,863 |
49,128 |
52,322 |
|||
|
Unallocated liabilities |
3,740 |
- |
3,569 |
|||
|
Less: Intragroup balance |
(31,738) |
(11,829) |
(36,566) |
|||
|
177,720 |
107,796 |
153,306 |
|
Three months ended 31 Mar |
||||
|
2008 |
2007 |
|||
|
US$'000 |
US$'000 |
|||
|
(Restated) |
||||
|
Unaudited |
Unaudited |
|||
|
Other segment information |
||||
|
Capital expenditure on property, plant and equipment and intangible assets |
||||
|
Petrochemical |
132 |
861 |
||
|
Chemical products |
1,560 |
1,592 |
||
|
1,692 |
2,453 |
|||
|
Depreciation and amortisation |
||||
|
Petrochemical |
1,652 |
633 |
||
|
Chemical products |
1,059 |
1,238 |
||
|
2,711 |
1,871 |
|||
(b) Geographical segments
The following table provides an analysis of the Company's sales by geographical market.
|
Three months ended 31 Mar |
||||
|
2008 |
2007 |
|||
|
US$'000 |
US$'000 |
|||
|
(Restated) |
||||
|
Unaudited |
Unaudited |
|||
|
Sales to external customers |
||||
|
People's Republic of China |
139,929 |
71,037 |
||
|
Exports |
1,775 |
2,833 |
||
|
141,704 |
73,870 |
|||
4. (LOSS) EARNING PER SHARE
(Loss) / earning per share has been calculated on the basis of the net (loss) / profit for the period attributable to equity holders of the parent of $(118,000) (three months ended 31 March 2007: $2,588,000).
The weighted average number of ordinary shares used in the calculation of (loss) / earnings per share has been derived as follows:
|
Three months ended 31 Mar |
||||
|
2008 |
2007 |
|||
|
Unaudited |
Unaudited |
|||
|
Weighted average number of ordinary shares - basic |
38,353,571 |
31,751,806 |
||
|
Dilutive effect of share options |
- |
285,351 |
||
|
Weighted average number of ordinary shares - diluted |
38,353,571 |
32,037,157 |
||
Share options that could potentially dilute basic EPS in the future amount to 174,907 share options (2007: nil), and were not included in this period's calculation of diluted EPS, because they were anti-dilutive for the period presented.
5. CONTINGENCIES
As at 31 March 2008, as a warrantor, the Group has guaranteed the bank loans of third parties to an aggregate amount of $51,034,000 (31 March 2007: $23,959,000; 31 December 2007: $33,580,000). It is unlikely that any significant liability will arise because the financial statements of the warrantees indicate that the debtors are able to pay their debts as they mature.
Related Shares:
Haike Chemical Group