Listed Company Information
 

GUANGDONG TANN<01058> - Results Announcement

Guangdong Tannery Limited announced on 08/09/2006:
(stock code: 01058 )
Year end date: 31/12/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors

                                                        (Unaudited )
                                     (Unaudited )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/01/2006    from 01/01/2005
                                     to 30/06/2006      to 30/06/2005
                               Note  ('000      )       ('000      )
Turnover                           : 160,015            95,077            
Profit/(Loss) from Operations      : 5,071              1,328             
Finance cost                       : (1,933)            (1,788)           
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       : 924                (515)             
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : 0.0018             (0.001)           
         -Diluted (in dollars)     : 0.0018             N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 924                (515)             
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 2006 is as follows:

Fundamental uncertainty - Contingent liabilities

In arriving at our review conclusion, we have considered the adequacy of 
the disclosures made in note 20 to the condensed consolidated interim 
financial statements concerning the irregularities involving certain 
former executives of a former subsidiary of the Company in a previous year 
and the related provisions of RMB 73,978,000 (equivalent to approximately 
HK$71,768,000) for the tax claim and tax penalty made by the Group as 
detailed in note 16(a) to the condensed consolidated interim 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 notes 16(a) and 20 to the 
condensed consolidated interim financial statements has been made in the 
interim financial report for such contingencies.  We consider that 
appropriate disclosures 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 2006.


2.      EARNINGS /(LOSS) PER SHARE

The calculation of basic earnings/(loss) per share for the period is based 
on the profit for the period of HK$924,000 (2005: loss of HK$515,000), and 
the weighted average number of 524,154,000 (2005: 524,154,000) ordinary 
shares in issue during the period.

The calculation of diluted earnings per share for the period is based on 
the profit for the period of HK$924,000.  The weighted average number of 
ordinary shares used in the calculation is 524,154,000 ordinary shares in 
issue during the period, as used in the basic earnings per share 
calculation and the weighted average number of 45,281 ordinary shares 
assumed to have been issued at no consideration on the deemed exercise or 
conversion of all dilutive potential ordinary shares into ordinary shares 
during the period.
        
        
A diluted loss per share amount for the six months ended 30 June 2005 has 
not been disclosed as the share options outstanding during that period had 
an anti-dilutive effect on the basic loss per share for that period.