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LUEN THAI<00311> - Results Announcement

Luen Thai Holdings Limited announced on 20/04/2006:
(stock code: 00311 )
Year end date: 31/12/2005
Currency: USD
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/01/2005    from 01/01/2004
                                     to 31/12/2005      to 31/12/2004
                               Note  ('000      )       ('000      )
Turnover                           : 590,234            553,766           
Profit/(Loss) from Operations      : 23,055             38,363            
Finance cost                       : (3,474)            (1,432)           
Share of Profit/(Loss) of 
  Associates                       : (1,891)            529               
Share of Profit/(Loss) of
  Jointly Controlled Entities      : (257)              (847)             
Profit/(Loss) after Tax & MI       : 13,240             30,361            
% Change over Last Period          : -56.4     %
EPS/(LPS)-Basic (in dollars)       : 0.013              0.039             
         -Diluted (in dollars)     : 0.013              0.039             
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 13,240             30,361            
Final Dividend                     : US$0.00156         US$0.0052
  per Share                          (EQUIVALENT TO      
(Specify if with other             : N/A                N/A
B/C Dates for 
  Final Dividend                   : 22/05/2006         to 26/05/2006 bdi.
Payable Date                       : 08/06/2006
B/C Dates for Annual         
  General Meeting                  : 22/05/2006         to 26/05/2006 bdi.
Other Distribution for             : N/A
  Current Period                     
B/C Dates for Other 
  Distribution                     : N/A   

1.      The consolidated financial statements of Luen Thai Holdings 
Limited have been prepared in accordance with Hong Kong Financial 
Reporting Standards ("HKFRS").  The consolidated financial statements have 
been prepared under the historical cost convention, as modified by the 
revaluation of available-for-sale financial assets, financial assets and 
financial liabilities at fair value through profit or loss, which are 
carried at fair value.

The preparation of financial statements in conformity with HKFRS requires 
the use of certain critical accounting estimates.  It also requires 
management to exercise its judgement in the process of applying the 
Group's accounting policies.  

In 2005, the Group adopted the new/revised standards and interpretations 
of HKFRS below, which are relevant to its operations.  The 2004 
comparatives have been amended as required, in accordance with the 
relevant requirements.

The adoption of revised HKAS 17 has resulted in a change in the accounting 
policy relating to the reclassification of leasehold land and land use 
rights from property, plant and equipment to operating leases.  The up-
front prepayments made for the leasehold land and land use rights are 
expensed in the income statement on a straight-line basis over the period 
of the lease or when there is impairment, the impairment is expensed in 
the income statement.  In prior years, the leasehold land was accounted 
for at cost less accumulated amortisation and accumulated impairment.  

The adoption of HKASs 32 and 39 has resulted in a change in the accounting 
policy relating to the classification of financial assets at fair value 
through profit or loss and available-for-sale financial assets.  On 1 
January 2005, the long-term investment amounting to US$1,648,000 was 
reclassified as available-for-sale financial assets.

The adoption of HKFRS 2 has resulted in a change in the accounting policy 
for share-based payments.  Until 31 December 2004, the provision of share 
options to employees did not result in an expense in the income statement. 
 Effective on 1 January 2005, the Group is required to expense the cost of 
share options in the income statement.  The change in the accounting 
policy does not have any material effect on the financial statements.

The adoption of HKFRS 3, HKAS 36 and HKAS 38 results in a change in the 
accounting policy for goodwill.  Until 31 December 2004, goodwill was:

- Amortised on a straight line basis over a period of 10 years;
- Assessed for an indication of impairment at each balance sheet date.

In accordance with the provisions of HKFRS 3:

- The Group ceased amortisation of goodwill from 1 January 2005;
- Accumulated amortisation as at 31 December 2004 amounting to 
approximately US$1,124,000 has been eliminated with a corresponding 
decrease in the cost of goodwill; and
- From the year ended 31 December 2005 onwards, goodwill is tested 
annually for impairment, as well as when there is indication of 

2.      Share of taxation attributable to jointly controlled entities for 
the year ended 31 December 2004 of approximately US$18,000 is reclassified 
and restated in the income statement as share of loss of jointly 
controlled entities.

3.      The basic earnings per share is calculated based on the Group's 
profit attributable to equity holders of the Company of approximately US$
13,240,000 (2004: US$30,361,000) and weighted average number of 983,356,
000 (2004: 780,117,000) ordinary shares. 

There was no dilutive effect on earnings per share since all outstanding 
share options were anti-dilutive.