Monday 14 September, 2009
China Wonder Ltd
Half Yearly Report
RNS Number : 9472Y China Wonder Limited 14 September 2009
CHINA WONDER LIMITED
(China Wonder Limited 'the company' and its subsidiary companies 'the Group')
Interim Results for the six months ended 30 June 2009 (unaudited)
I am pleased to report the Group's results for the six months to 30 June 2009 which are set out below. The figures show basic earnings per share of 0.85 pence compared with 1.10 pence for the comparable period last year.
The Group's sales revenue for the period was £2,110,143, an increase of £366,280 (or 21%) when compared to the £1,743,863 of sales for the same period in 2008. The Group's net income for the period was £152,911, a decrease of £44,572 (or 22.6%) when compared to the same period in 2008.
The Group is meeting the increased working capital requirements resulting from additional sales from its own resources and existing banking facilities.
Despite the continuing background of the global economic crisis, the Group has achieved the significant improvement in trading that was anticipated in my last Chairman's statement. This demonstrates the longer term resilience of the Group's products and technology and management's ability to respond quickly to changes in trading conditions. As the Chinese economy recovers, the Board believe that the Group will continue to develop and provide growing returns to shareholders.
In line with the Group's development strategy, the Board continue to actively seek expansion opportunities both in the People's Republic of China and the United Kingdom.
MARK CHAPMAN
Chairman
For more information please contact:
|
Mark Chapman
|
China Wonder Limited
|
+44 (0) 1483 892 130
|
|
Daniel Bate
|
WH Ireland Limited
|
+44 (0) 161 832 2174
|
CHINA WONDER LIMITED
CONSOLIDATED INCOME STATEMENT
for the six months ended 30 June 2009
|
|
Note
|
|
Six months ended
30 June 2009
Unaudited
|
|
Six months ended
30 June 2008
Unaudited
|
|
Year ended 31
December 2008
Audited
|
|
|
|
|
£
|
|
£
|
|
£
|
|
REVENUE
|
|
|
2,110,143
|
|
1,743,863
|
|
2,611,329
|
|
Cost of sales
|
|
|
(1,268,426)
|
|
(1,168,588)
|
|
(1,542,349)
|
|
Sales tax
|
|
|
(796)
|
|
(100)
|
|
(901)
|
|
GROSS PROFIT
|
|
|
840,921
|
|
575,175
|
|
1,068,079
|
|
OTHER OPERATING INCOME
|
|
|
-
|
|
349
|
|
5,359
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Distribution expenses
|
|
|
(158,873)
|
|
(96,127)
|
|
(196,297)
|
|
Administrative expenses
|
|
|
(454,119)
|
|
(220,371)
|
|
(831,505)
|
|
|
|
|
(612,992)
|
|
(316,498)
|
|
(1,027,802)
|
|
|
|
|
|
|
|
|
|
|
PROFIT FROM OPERATIONS
|
|
|
227,929
|
|
259,026
|
|
45,636
|
|
Non-operating expense
|
|
|
(4,489)
|
|
-
|
|
-
|
|
Non-operating income
|
|
|
-
|
|
-
|
|
94,423
|
|
Finance income
|
|
|
2,476
|
|
983
|
|
3,510
|
|
Finance costs
|
|
|
(5,863)
|
|
(6,463)
|
|
(14,902)
|
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
|
|
|
220,053
|
|
253,546
|
|
128,667
|
|
Taxation
|
|
|
(64,444)
|
|
(56,063)
|
|
45,365
|
|
Minority shareholder's profit
|
|
|
(2,698)
|
|
-
|
|
(2,658)
|
|
PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
|
|
|
152,911
|
|
197,483
|
|
171,374
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
Basic
|
2
|
|
0.85p
|
|
1.10p
|
|
0.95p
|
|
Diluted
|
2
|
|
0.84p
|
|
1.08p
|
|
0.95p
|
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
for the six months ended 30 June 2009
|
|
Six months ended
30 June 2009
Unaudited
|
|
Six months ended
30 June 2008
Unaudited
|
|
Year ended
31 December 2008
Audited
|
|
|
£
|
|
£
|
|
£
|
|
Exchange differences on translation of foreign operations
|
(505,822)
|
|
(51,956)
|
|
586,059
|
|
|
|
|
|
|
|
|
Net (expense)/income recognised directly in equity
|
(505,822)
|
|
(51,956)
|
|
586,059
|
|
|
|
|
|
|
|
|
Profit for the period
|
152,911
|
|
197,483
|
|
171,374
|
|
TOTAL RECOGNISED INCOME AND EXPENSE FOR THE PERIOD ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
|
(352,911)
|
|
145,527
|
|
757,433
|
CHINA WONDER LIMITED
CONSOLIDATED BALANCE SHEET
at 30 June 2009
|
|
30 June 2009
Unaudited
|
|
30 June 2008
Unaudited
|
|
31 December 2008
Audited
|
|
|
£
|
|
£
|
|
£
|
|
ASSETS
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property, plant and equipment
|
851,188
|
|
789,209
|
|
999,786
|
|
Long term prepaid expenses
|
-
|
|
-
|
|
6,415
|
|
Goodwill
|
1,356,705
|
|
1,356,705
|
|
1,356,705
|
|
Intangible assets
|
80,249
|
|
69,101
|
|
92,448
|
|
Deferred tax asset
|
46,346
|
|
7,544
|
|
65,547
|
|
|
2,334,488
|
|
2,222,559
|
|
2,520,901
|
|
Current assets
|
|
|
|
|
|
|
Inventories
|
1,143,042
|
|
988,097
|
|
1,642,290
|
|
Trade and other receivables
|
1,441,945
|
|
1,897,263
|
|
1,676,716
|
|
Tax assets
|
-
|
|
11,009
|
|
29,854
|
|
Cash and cash equivalents
|
991,532
|
|
237,745
|
|
334,666
|
|
|
3,576,519
|
|
3,134,114
|
|
3,683,526
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
5,911,007
|
|
5,356,673
|
|
6,204,427
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Short-term loan
|
(150,041)
|
|
(73,240)
|
|
(150,394)
|
|
Trade and other payables
|
(1,544,190)
|
|
(1,660,831)
|
|
(2,122,771)
|
|
Tax liabilities
|
(26,825)
|
|
-
|
|
-
|
|
|
(1,721,056)
|
|
(1,734,071)
|
|
(2,273,165)
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
(617,818)
|
|
-
|
|
-
|
|
NET ASSETS
|
3,572,133
|
|
3,622,602
|
|
3,931,262
|
|
|
|
|
|
|
|
|
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT
|
|
|
|
|
|
|
Share capital
|
450,000
|
|
450,000
|
|
450,000
|
|
Share premium
|
1,935,980
|
|
1,935,980
|
|
1,935,980
|
|
Statutory reserves
|
160,995
|
|
185,253
|
|
160,995
|
|
Translation reserve
|
159,898
|
|
131,617
|
|
665,720
|
|
Retained earnings
|
797,865
|
|
869,944
|
|
644,954
|
|
Minority interests
|
67,395
|
|
49,808
|
|
73,613
|
|
TOTAL EQUITY
|
3,572,133
|
|
3,622,602
|
|
3,931,262
|
CHINA WONDER LIMITED
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended 30 June 2009
|
|
Six months ended
30 June 2009
Unaudited
|
|
Six months ended
30 June 2008
Unaudited
|
|
Year ended
31 December 2008
Audited
|
|
|
£
|
|
£
|
|
£
|
|
PROFIT BEFORE TAX
|
220,053
|
|
253,546
|
|
128,667
|
|
Depreciation of property, plant and equipment
|
48,599
|
|
22,500
|
|
99,316
|
|
Amortisation of intangibles
|
1,132
|
|
1,049
|
|
2,857
|
|
Provision for warranty
|
38,303
|
|
-
|
|
(13,791)
|
|
Interest paid
|
5,863
|
|
6,463
|
|
14,902
|
|
Interest received
|
(2,476)
|
|
(984)
|
|
(3,510)
|
|
Loss disposal of property ,plant and equipment
|
5,598
|
|
-
|
|
787
|
|
OPERATING CASH FLOW BEFORE WORKING CAPITAL
|
317,072
|
|
282,574
|
|
229,228
|
|
|
|
|
|
|
|
|
Decrease/(Increase) in inventories
|
499,248
|
|
(286,430)
|
|
(958,228)
|
|
Decrease/(increase) in receivables
|
234,771
|
|
(861,506)
|
|
(685,197)
|
|
(Decrease)/increase in payables
|
(578,581)
|
|
611,448
|
|
1,062,172
|
|
Tax paid
|
(7,766)
|
|
(120,608)
|
|
(73,255)
|
|
NET CASH GENERATED/(ABSORBED) BY OPERATING ACTIVITIES
|
464,744
|
|
(374,522)
|
|
(425,280)
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
(5,619)
|
|
(118,835)
|
|
(123,136)
|
|
Additions to intangible assets
|
-
|
|
(413)
|
|
-
|
|
Additions of long term prepaid expenses
|
-
|
|
-
|
|
(6,415)
|
|
Interest received
|
2,476
|
|
984
|
|
3,510
|
|
Proceeds on sale of property, plant and equipment
|
-
|
|
-
|
|
2,593
|
|
Net cash used in investing activities
|
(3,143)
|
|
(118,264)
|
|
(123,448)
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Issue of ordinary share capital
|
-
|
|
152,633
|
|
-
|
|
Investment from minority interests
|
-
|
|
-
|
|
-
|
|
Interest paid
|
(5,863)
|
|
(6,463)
|
|
(14,902)
|
|
Proceeds from bank borrowings
|
617,818
|
|
4,154
|
|
73,435
|
|
Repayment of bank borrowings
|
-
|
|
-
|
|
(116,875)
|
|
Net cash from financing activities
|
611,955
|
|
150,324
|
|
(58,342)
|
|
|
|
|
|
|
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
1,073,556
|
|
(342,462)
|
|
(607,070)
|
|
Cash and cash equivalents at the beginning of the period
|
334,666
|
|
609,391
|
|
609,391
|
|
Effect of foreign exchange differences
|
(416,690)
|
|
(29,184)
|
|
332,345
|
|
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
|
991,532
|
|
237,745
|
|
334,666
|
CHINA WONDER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
for the six months ended 30 June 2009
|
1.
|
ACCOUNTING POLICIES
Basis of accounting
The interim financial information for the six months ended 30 June 2009 and that for the equivalent period in 2008 is unaudited. The comparatives for the full year ended 31 December 2008 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 ended
30 June 2009
|
|
Six months ended
30 June 2008
|
|
Year ended
31 December 2008
|
|
|
|
|
|
|
|
|
Earnings for the purpose of basic and diluted earnings per share being net profit attributable to equity holders of the parent
|
£152,911
|
|
£197,483
|
|
£171,374
|
|
|
|
|
|
|
|
|
Number of shares
|
|
|
|
|
|
|
Weighted average number of Shares for the purposes of basic earnings per share
|
18,000,000
|
|
18,000,000
|
|
18,000,000
|
|
Weighted average number of Shares for the purposes of diluted earnings per share
|
18,250,000
|
|
18,250,000
|
|
18,250,000
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
Basic
|
0.85p
|
|
1.10p
|
|
0.95p
|
|
Diluted
|
0.84p
|
|
1.08p
|
|
0.95p
|
|
3.
|
RESERVES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
Capital
£
|
|
Share Premium
Reserve
£
|
|
Statutory
Reserve
£
|
|
Translation
Reserve
£
|
|
Retained
Earnings
£
|
|
Minority
Interests
£
|
|
30 June 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2009
|
450,000
|
|
1,935,980
|
|
160,995
|
|
665,720
|
|
644,954
|
|
73,613
|
|
Profit for the period
|
-
|
|
-
|
|
-
|
|
-
|
|
152,911
|
|
2,698
|
|
Foreign exchange differences
|
-
|
|
-
|
|
-
|
|
(505,822)
|
|
-
|
|
(8,916)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2009
|
450,000
|
|
1,935,980
|
|
160,995
|
|
159,898
|
|
797,865
|
|
67,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2008
|
450,000
|
|
1,935,980
|
|
139,615
|
|
79,661
|
|
494,960
|
|
48,360
|
|
Profit for the period
|
-
|
|
-
|
|
-
|
|
-
|
|
197,483
|
|
-
|
|
Foreign exchange differences
|
-
|
|
-
|
|
45,638
|
|
51,956
|
|
177,501
|
|
1,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2008
|
450,000
|
|
1,935,980
|
|
185,253
|
|
131,617
|
|
869,944
|
|
49,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 December 2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 January 2008
|
450,000
|
|
1,935,980
|
|
139,615
|
|
79,661
|
|
494,960
|
|
48,360
|
|
Transfers
|
-
|
|
-
|
|
21,380
|
|
-
|
|
(21,380)
|
|
-
|
|
Profit for the period
|
-
|
|
-
|
|
-
|
|
-
|
|
171,374
|
|
2,658
|
|
Foreign exchange differences
|
-
|
|
-
|
|
-
|
|
586,059
|
|
-
|
|
22,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2008
|
450,000
|
|
1,935,980
|
|
160,995
|
|
665,720
|
|
644,954
|
|
73,613
|
|
4.
|
SEGMENT INFORMATION
|
|
|
|
|
|
|
|
|
|
|
Packing
Machinery
£
|
Moulding
Equipment
£
|
Bespoke
Engineering
£
|
Technology
£
|
Unallocated
£
|
Total
£
|
|
|
|
|
|
|
|
|
|
For the 6 month period ended 30 June 2009
Revenue from sale of goods
|
944,468
|
98,953
|
1,066,722
|
-
|
-
|
2,110,143
|
|
|
|
|
|
|
|
|
|
Segment results
|
100,672
|
14,373
|
101,329
|
(15,792)
|
22,858
|
223,440
|
|
Finance income
|
120
|
78
|
2,201
|
75
|
2
|
2,476
|
|
Finance costs
|
(404)
|
(22)
|
(5,418)
|
(19)
|
-
|
(5,863)
|
|
|
|
|
|
|
|
|
|
Profit before income
|
100,388
|
14,429
|
98,112
|
(15,736)
|
22,860
|
220,053
|
|
Tax expense
|
(25,098)
|
(3,636)
|
(35,710)
|
-
|
|
(64,444)
|
|
|
|
|
|
|
|
|
|
Profit from continuing operations
|
75,290
|
10,793
|
62,402
|
(15,736)
|
22,860
|
155,609
|
|
Minority interest
|
-
|
(2,698)
|
-
|
-
|
-
|
(2,698)
|
|
|
|
|
|
|
|
|
|
Profit attributable to the equity holders of the parent
|
75,290
|
8,095
|
62,402
|
(15,736)
|
22,860
|
152,911
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other segment items in the income statement are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
26,803
|
9,479
|
12,026
|
291
|
-
|
48,599
|
|
Amortisation
|
1,132
|
-
|
-
|
-
|
-
|
1,132
|
|
Provisions for doubtful debts
|
31,054
|
-
|
55,925
|
-
|
-
|
86,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmental assets and liabilities at 30 June 2009 and capital expenditure for the year are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
3,282,195
|
283,170
|
2,822,682
|
89,889
|
(566,929)
|
5,911,007
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
1,255,886
|
13,206
|
936,493
|
21,491
|
111,798
|
2,338,874
|
|
|
|
|
|
|
|
|
|
4..
|
SEGMENT INFORMATION (continued)
|
|
|
|
|
|
|
|
|
|
|
Packing
Machinery
£
|
Moulding
Equipment
£
|
Bespoke
Engineering
£
|
Technology
£
|
Unallocated
£
|
Total
£
|
|
|
|
|
|
|
|
|
|
For the 6 month period ended 30 June 2008
Revenue from sale of goods
|
582,571
|
31,596
|
1,129,696
|
-
|
-
|
1,743,863
|
|
|
|
|
|
|
|
|
|
Segment results
|
113,115
|
5,315
|
211,696
|
-
|
(71,100)
|
259,026
|
|
Finance income
|
429
|
491
|
-
|
-
|
63
|
983
|
|
Finance costs
|
(223)
|
(10)
|
(6,230)
|
-
|
-
|
(6,463)
|
|
|
|
|
|
|
|
|
|
Profit before income
|
113,321
|
5,796
|
205,466
|
-
|
(71,037)
|
253,546
|
|
Tax expense
|
(28,332)
|
(1,449)
|
(25,682)
|
-
|
(600)
|
(56,063)
|
|
|
|
|
|
|
|
|
|
Profit from continuing operations
|
84,989
|
4,347
|
179,784
|
-
|
(71,637)
|
197,483
|
|
Minority interest
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Profit attributable to the equity holders of the parent
|
84,989
|
4,347
|
179,784
|
-
|
(71,637)
|
197,483
|
|
|
|
|
|
|
|
|
|
Other segment items in the income statement are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
14,499
|
1,964
|
6,037
|
-
|
-
|
22,500
|
|
Amortisation
|
1,049
|
-
|
-
|
-
|
-
|
1,049
|
|
Provisions for doubtful debts
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
Segmental assets and liabilities at 30 June 2008 and capital expenditure for the year are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
2,020,299
|
218,218
|
2,969,632
|
-
|
148,524
|
5,356,673
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
434,423
|
7,219
|
1,040,308
|
-
|
252,121
|
1,734,071
|
|
|
|
|
|
-
|
|
|
|
4.
|
SEGMENT INFORMATION (continued)
|
|
|
Packing
Machinery
£
|
Moulding
Equipment
£
|
Bespoke
Engineering
£
|
Technology
£
|
Unallocated
£
|
Total
£
|
|
|
|
|
|
|
|
|
|
For the year ended 31 December 2008
Revenue from sale of goods
|
1,186,063
|
75,824
|
1,349,442
|
-
|
-
|
2,611,329
|
|
|
|
|
|
|
|
|
|
Segment results
|
32,023
|
14,509
|
100,887
|
-
|
(7,360)
|
140,059
|
|
Finance income
|
1,973
|
1,176
|
280
|
-
|
81
|
3,510
|
|
Finance costs
|
(1,171)
|
(29)
|
(13,702)
|
-
|
-
|
(14,902)
|
|
|
|
|
|
|
|
|
|
Profit before income
|
32,825
|
15,656
|
87,465
|
-
|
(7,279)
|
128,667
|
|
Tax expense
|
29,147
|
(5,023)
|
7,048
|
-
|
14,193
|
45,365
|
|
|
|
|
|
|
|
|
|
Profit from continuing operations
|
61,972
|
10,633
|
94,513
|
-
|
6,914
|
174,032
|
|
Minority interest
|
-
|
(2,658)
|
-
|
-
|
-
|
(2,658)
|
|
|
|
|
|
|
|
|
|
Profit attributable to the equity holders of the parent
|
61,972
|
7,975
|
94,513
|
-
|
6,914
|
171,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other segment items in the income statement are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
61,468
|
14,105
|
23,743
|
-
|
-
|
99,316
|
|
Amortisation
|
2,857
|
-
|
-
|
-
|
-
|
2,857
|
|
Provisions for doubtful debts
|
159,039
|
4,538
|
69,999
|
-
|
-
|
233,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segmental assets and liabilities at 31 December 2008 and capital expenditure for the year are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
2,421,243
|
286,224
|
2,037,195
|
100,262
|
1,359,503
|
6,204,427
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
635,939
|
(3,689)
|
1,391,647
|
-
|
249,268
|
2,273,165
|
|
|
|
|
|
|
|
|
|
5.
|
POST BALANCE SHEET EVENTS
|
|
|
None.
|
This information is provided by RNS
The company news service from the London Stock Exchange END IR ILFISADILLIA
|
|