Listed Company Information
 

GUANGDONG TANN<01058> - Results Announcement

Guangdong Tannery Limited announced on  10/9/2004:
(stock code: 01058 )
Year end date: 31/12/2004
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Auditors

                                                        (Unaudited )
                                     (Unaudited )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 1/1/2004      from 1/1/2003  
                                     to 30/6/2004       to 30/6/2003  
                               Note  ('000      )       ('000      )
Turnover                           : 162,836            142,380           
Profit/(Loss) from Operations      : 5,711              (79)              
Finance cost                       : (3,104)            (2,589)           
Share of Profit/(Loss) of 
  Associates                       : N/A                N/A               
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 2,607              (2,382)           
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : 0.005              (0.0045)          
         -Diluted (in dollars)     : N/A                N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 2,607              (2,382)           
Interim Dividend                   : NIL                NIL               
  per Share                                                               
(Specify if with other             : N/A                N/A               
  options)                                                                
                                                                          
B/C Dates for 
  Interim Dividend                 : N/A          
Payable Date                       : N/A       
B/C Dates for (-)            
  General Meeting                  : N/A          
Other Distribution for             : N/A           
  Current Period                     
                                     
B/C Dates for Other 
  Distribution                     : N/A          

Remarks:

1.      SUMMARY OF INDEPENDENT AUDITORS' REVIEW REPORT

An extract from the independent auditors' review report of the Company for 
the six months ended 30 June 2004 is as follows:

Fundamental uncertainty - Contingent liabilities

In arriving at our review conclusion, we have considered the adequacy of 
the disclosures made in note 21 to the condensed consolidated financial 
statements concerning the irregularities involving certain former 
executives of a former subsidiary of the Company in the previous year and 
the related provision of HK$69,600,000 for the tax claim and tax penalty 
made by the Group as at 30 June 2004.  As the actions taken by the PRC 
authorities have not yet been concluded, it is not possible to ascertain 
with any degree of reasonable certainty the amount of any tax penalty 
which may finally be imposed by the PRC authorities and the other 
consequential actions that may be taken by the PRC authorities for the 
apparent breaches of certain PRC laws and regulations, or the existence or 
otherwise of any other penalties and claims as a result of the aforesaid 
irregularities.  As of the date of this report, no further provision other 
than that disclosed in notes 15 and 21 to the condensed consolidated 
financial statements has been made in the interim financial report for 
such contingencies.  We consider that appropriate disclosures and 
estimates have been made in the interim financial report and our review 
conclusion is therefore not modified in this respect.

Review conclusion

On the basis of our review which does not constitute an audit, we are not 
aware of any material modifications that should be made to the interim 
financial report for the six months ended 30 June 2004.

2.      EARNING /(LOSS) PER SHARE

The calculation of basic earnings per share is based on the unaudited net 
profit attributable to shareholders for the period of HK$2,607,000 (2003: 
net loss of HK$2,382,000) and the 524,154,000 (2003: 524,154,000) ordinary 
shares in issue during the period.

A diluted earnings per share amount for the six months ended 30 June 2004 
has not been disclosed as the share options outstanding during the period 
had an anti-dilutive effect on the basic earnings per share for the 
period.

A diluted loss per share amount for the six months ended 30 June 2003 has 
not been disclosed as no diluting events existed during that period.