Listed Company Information
 

GUANGDONG TANN<01058> - Results Announcement

Guangdong Tannery Limited announced on 08/04/2005:
(stock code: 01058 )
Year end date: 31/12/2004
Currency: HKD
Auditors' Report: Modified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/01/2004    from 01/01/2003
                                     to 31/12/2004      to 31/12/2003
                               Note  ('000      )       ('000      )
Turnover                           : 281,951            381,601           
Profit/(Loss) from Operations      : 11,605             (95,632)          
Finance cost                       : (5,734)            (5,948)           
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       : 4,668              (101,294)         
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : 0.0089             (0.1933)          
         -Diluted (in dollars)     : N/A                N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 4,668              (101,294)         
Final Dividend                     : Nil                Nil
  per Share                                              
(Specify if with other             : N/A                N/A
  options)                                               
                                                         
B/C Dates for 
  Final Dividend                   : N/A   
Payable Date                       : N/A
B/C Dates for Annual         
  General Meeting                  : 07/06/2005         to 08/06/2005 bdi.
Other Distribution for             : N/A
  Current Period                     
                                     
B/C Dates for Other 
  Distribution                     : N/A   
  
Remarks:

                                   
(1)     SUMMARY OF REPORT OF THE AUDITORS

An extract from the report of the auditors to the Company for the year 
ended 31 December 2004 is as follows:

Fundamental uncertainty - Contingent liabilities

In arriving at our audit opinion, we have considered the adequacy of the 
disclosures made in the financial statements concerning the irregularities 
involving certain former executives of a former subsidiary of the Company 
in a previous year and the related provision of HK$69,600,000 for the tax 
claim and tax penalty made by the Group as detailed in the financial 
statements.  As the actions taken by the authorities of the People's 
Republic of China (the "PRC") 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 arising as a 
result of the aforesaid irregularities.  As of the date of this report, no 
further provision other than that disclosed in the financial statements 
has been made in the financial statements for such contingencies.  We 
consider that appropriate disclosures and estimates have been made in the 
financial statements and our audit opinion is therefore not qualified in 
this respect.

Opinion

In our opinion the financial statements give a true and fair view of the 
state of affairs of the Company and of the Group as at 31 December 2004 
and of the profit and cash flows of the Group for the year then ended and 
have been properly prepared in accordance with the Companies Ordinance.

(2)     EARNINGS/(LOSS) PER SHARE

The calculation of basic earnings per share is based on the net profit 
attributable to shareholders for the year of HK$4,668,000 (2003: net loss 
of HK$101,294,000) and the 524,154,000 (2003: 524,154,000) ordinary shares 
in issue during the year.

Diluted earnings/(loss) per share amounts for the years ended 31 December 
2004 and 2003 has not been disclosed, as the share options outstanding 
during these years had an anti-dilutive effect on the basic earnings/(
loss) per share for these years.