TECHWAYSON HOLD<02330> - Results AnnouncementTechwayson Holdings Limited announced on 27/03/2006:(stock code: 02330 )Year end date: 30/06/2006Currency: RMBAuditors' Report: N/AInterim report reviewed by: Audit Committee (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/07/2005 from 01/07/2004 to 31/12/2005 to 31/12/2004 Note ('000 ) ('000 )Turnover : 132,469 99,493 Profit/(Loss) from Operations : 449 4,526 Finance cost : (4,492) (4,592) 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 : (13,430) (1,286) % Change over Last Period : N/A %EPS/(LPS)-Basic (in dollars) : (0.0384) (0.0037) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (13,430) (1,286) 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/AB/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks:1. BASIS OF PRESENTATIONThe unaudited condensed interim financial statements have been prepared in accordance with the applicable Hong Kong Financial Reporting Standards ("HKFRSs"), Hong Kong Accounting Standards ("HKASs") and Interpretation issued by Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the requirements of Hong Kong Companies Ordinance. The financial statements also comply with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("the Listing Rules") and with HKAS 34 "Interim financial reporting" issued by HKICPA. The unaudited condensed interim financial statements have been prepared under the historical cost convention, except for certain financial assets are carried at fair value.The accounting policies adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 30 June 2005, except as described below.In December 2004, the HKICPA issued HKAS 17 "Lease", HKAS 32 "Financial Instruments" Disclosure and Presentation and HKAS 39 "Financial Instruments: Recognition and Measurement" which are applicable to the Group's operation and became effective on 1 January 2005. The adoption of these HKASs has no material impact of the Group's result of operations and financial position except certain presentation and disclosure of financial statements have been changed.(a) LEASE PREPAYMENTS Lease prepayments represent purchase cost of land use rights in the PRC. Land use rights are stated at cost and are amortised over the period of the lease on a straight-line basis to the income statement. In accordance with HKAS 17, property under development of RMB2,027,572 included in the consolidated balance sheet as at 30 June 2005 was restated as prepaid lease payments. (b) INVESTMENTS Investments are recognised and derecognized on a trade date basis where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, plus directly attributable transaction costs. Investments other than held-to-maturity securities are classified as either investments held for trading or as available-for-sale, and are measured at subsequent reporting dates at fair value. Where securities are held for trading purposes, gains and losses arising from changes in fair value are included in the income statement for the period. For available-for-sale investments, gains and losses arising from changes in fair value are recognised directly in equity, until the security is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in the income statement for the period. Impairment losses recognised in profit or loss for equity investments classified as available-for-sale are not subsequently reversed through profit or loss. Impairment losses recognised in the income statement for debt instruments classified as available-for-sale are subsequently reversed if an increase in the fair value of the instrument can be objectively related to an event occurring after the recognition of the impairment loss. Investments in equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are measured at cost less identified impairment losses (if any). An impairment loss is recognised in the income statement when there is objective evidence that an asset is impaired. The amount of the impairment loss is measured as the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses will not reverse in subsequent periods. The adoption of HKAS 39 has the following effect on consolidated balance sheet at 1 July 2005 as follows: Increase/(decrease) in assets RMB'000-----------------------------Investment in securities (31,916)Available for sale investment 31,916Trust fund investments (150,704)Held-to-maturity securities 150,704 2. TURNOVERThe Group's turnover represented revenue generated from two main categories: Automation Products, and Project and Technical Services. The Group's revenue is stated after deducting Mainland China value-added tax and city and county maintenance tax. For the 6 months ended 31 December ------------------------------- 2005 2004 (Unaudited) (Unaudited) RMB'000 RMB'000Turnover Sales of automation products 132,469 97,194 Fees for project and technical services - 2,299 --------- --------- Total turnover 132,469 99,493 ========= ========= 3. LOSS BEFORE TAXATION Loss before taxation is arrived at after charging: For the 6 months ended 31 December ------------------------------- 2005 2004 (Unaudited) (Unaudited) RMB'000 RMB'000Staff costs Salaries and allowances 2,888 4,103Contributions to defined contribution plans 44 194 --------- --------- 2,932 4,297 ========= ========= Bad debts written off 366 -Provision for obsolete stocks 442 -Loss on exchange 88 -Interest on bank borrowings and loans repayable within 5 years 4,492 3,910Interest on other borrowings wholly repayable after 5 years - 682 --------- ---------4. LOSS PER SHAREThe calculation of basic loss per share for the six months ended 31 December 2005 is based on the consolidated loss attributable to shareholders of approximately RMB13,430,000 (2004: RMB1,286,000) and the weighted average of 350,000,000 shares (2004: 350,000,000 shares) in issue during the period.Diluted earnings per share was not presented because there were no dilutive potential ordinary shares in issue during the six months ended 31 December 2005 and 2004.5. DIVIDENDThe directors do not recommend the payment of a dividend for the six months ended 31 December 2005 (2004: Nil).