China Wonder Limited
05 September 2007
For immediate release.
CHINA WONDER LIMITED
('China Wonder' or the 'Company)
(together with its subsidiaries the 'Group')
Interim Results for the six months ended 30 June 2007 (unaudited)
I am pleased to report the Group's results for the six months to 30 June 2007
which are set out below. The figures include four months' contribution from
Jinzhou Wonder Machinery Equipment Co Ltd ('WE') which was acquired at the end
of February 2007. Basic earnings per share were 0.84p compared with 0.46p for
the comparable period in 2006.
To date the performance of WE has exceeded our expectations, contributing an
operating profit for the four month period of £108,000. The Group continues to
be cash positive. During the period under review we manufactured and delivered a
full production line demonstrating our ability to produce more sophisticated
machinery.
The Group is currently undergoing a capital reconstruction which, subject to
Chinese Government approval, should enable the Company to pay dividends in the
future. It is not the intention of the board to announce a dividend at this
time.
Your board is constantly looking for opportunities, either by acquisition or by
collaboration, both in The People's Republic of China and The United Kingdom.
PETER G DELLAR
Chairman
For more information please contact:
Mark Chapman, China Wonder Limited 01483 892 130
David Youngman, WH Ireland Limited 0161 832 2174
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE SIX MONTHS ENDED 30 JUNE 2007
Six months Six months Year ended
ended 30 ended 30 31
June 2007 June 2006 December 2006
Note Unaudited Unaudited Audited
£ £ £
REVENUE 1,089,239 585,156 1,064,479
Cost of sales (706,171) (345,652) (530,234)
GROSS PROFIT 383,068 239,504 534,245
OTHER OPERATING INCOME - 7,131 54,085
OPERATING EXPENSES
Distribution expenses (67,326) (59,582) (112,241)
Administrative expenses (152,427) (120,135) (262,534)
(219,753) (179,717) (374,775)
PROFIT FROM OPERATIONS 163,315 66,918 213,555
Finance income 575 71 187
Finance costs (1,978) (2,022) (4,293)
PROFIT BEFORE TAX 161,912 64,967 209,449
TAXATION (29,626) (14,464) (53,943)
PROFIT FOR THE YEAR ATTRIBUTABLE
TO EQUITY HOLDERS OF THE PARENT 132,286 50,503 155,506
EARNINGS PER SHARE
Basic 2 0.84 p 0.46 p 1.41 p
Diluted 2 0.82 p 0.44 p 1.40 p
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE SIX MONTHS ENDED 30 JUNE 2007
Six months Six months Year ended
ended 30 ended 30 31
June 2007 June 2006 December 2006
Unaudited Unaudited Audited
£ £ £
Exchange differences on translation of foreign 264 (84,787) (118,523)
operations
Net (expense)/income recognised directly in 264 (84,787) (118,523)
equity
Profit for the 132,286 50,503 155,506
period
TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT 132,550 (34,284) 36,983
CONSOLIDATED BALANCE SHEET FOR THE SIX MONTHS ENDED 30 JUNE 2007
30 June 30 June 31 December
2007 2006 2006
Unaudited Unaudited Audited
£ £ £
ASSETS
Non-current assets
Property, plant and equipment 660,112 627,245 560,111
Goodwill 697,397 - 64,062
Intangible assets 63,179 34,316 6,738
Deferred tax asset 6,739 5,214 -
1,427,427 666,775 630,911
Current assets
Inventories 601,771 248,382 277,259
Trade and other receivables 1,050,435 678,223 648,612
Cash and cash equivalents 415,483 262,375 262,080
2,067,689 1,188,980 1,187,951
TOTAL ASSETS 3,495,116 1,855,755 1,818,862
Current liabilities
Short-term loan (65,479) - -
Trade and other payables (1,192,487) (784,894) (649,411)
Tax liabilities (26,162) (8,162) (35,485)
(1,284,128) (793,056) (684,896)
NET ASSETS 2,210,988 1,062,699 1,133,966
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE PARENT
Share capital 450,000 275,000 275,000
Share premium 1,289,730 519,730 519,730
Statutory reserves 97,848 63,072 97,848
Translation reserve (29,231) 4,769 (28,967)
Retained earnings 402,641 200,128 270,355
TOTAL EQUITY 2,210,988 1,062,699 1,133,966
CONSOLIDATED CASH FLOW FOR THE SIX MONTHS ENDED 30 JUNE 2007
Six months Six months Year ended
ended 30 ended 30 31 December
June 2007 June 2006 2006
Unaudited Unaudited Audited
£ £ £
PROFIT FROM OPERATIONS 163,315 66,918 213,555
Depreciation of property, plant and 20,588 20,270 41,352
equipment
Amortisation of intangibles 1,875 867 1,874
OPERATING CASH FLOW BEFORE WORKING CAPITAL 185,778 88,055 256,781
(Increase) in inventories (324,274) (36,514) (72,361)
(Increase)/decrease in (401,225) 78,378 83,162
receivables
Increase/(decrease) in payables 543,414 (44,333) (133,279)
Interest paid (1,978) (2,022) (4,293)
Tax paid (38,918) (14,464) (98,711)
NET CASH GENERATED/(ABSORBED) BY
OPERATING ACTIVITIES (37,203) 69,100 31,299
INVESTING ACTIVITIES
Purchase of property, plant and equipment (125,012) (3,491) (50,737)
Additions to intangibles (698,334) - -
Interest received 575 71 187
Net cash used in investing (822,771) (3,420) (50,550)
activities
FINANCING ACTIVITIES
Issue of ordinary share capital 945,000 - -
New bank loan (repaid) 65,479 (202,945) (196,270)
Net cash from financing 1,010,479 (202,945) (196,270)
activities
NET INCREASE IN CASH
AND CASH EQUIVALENTS 150,505 (137,265) (215,521)
Cash and cash equivalents
at the beginning of the period 262,080 428,587 428,587
Effect of foreign exchange 2,898 (28,947) 49,014
differences
CASH AND CASH EQUIVALENTS
AT THE END OF THE PERIOD 415,483 262,375 262,080
NOTES TO THE FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2007
1. ACCOUNTING POLICIES
Basis of accounting
The interim financial information for the six months ended 30 June 2007 and that for the equivalent period in
2006 is unaudited. The comparatives for the full year ended 31 December 2006 are not the Group's full
statutory accounts for that year. A copy of the statutory accounts for that year has been delivered to the
Jersey Financial Services Commission. The auditors' report on those accounts was unqualified, did not include
references to any matters to which the auditors drew attention by way of emphasis without qualifying their
report and did not contain a statement under Article 111 of the Companies (Jersey) Law 1991.
The interim financial information has been prepared in accordance with the accounting policies and
presentation required by International Financial Reporting Standards, incorporating International Accounting
Standards and Interpretations (collectively 'IFRS') as endorsed by the European Union.
The interim report is presented and prepared in a form consistent with that which has been adopted in the
Group's annual accounts having regard to the accounting standards applicable to such accounts.
2. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings Six months Six months Year ended
ended 30 ended 30 31 December
June 2007 June 2006 2006
Earnings for the purpose of basic and diluted earnings £132,286 £50,503 £155,506
per share being net profit attributable to equity holders
of the parent
Number of shares
Weighted average number of Ordinary Shares for the 15,795,580 11,000,000 11,000,000
purposes of basic earnings per share
Weighted average number of Ordinary Shares for the 16,045,580 11,250,000 11,078,533
purposes of diluted earnings per share
Earnings per share
Basic 0.84 p 0.46 p 1.41 p
Diluted 0.82 p 0.44 p 1.40 p
3. POST BALANCE SHEET EVENTS
None.
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