TIDMACHP
RNS Number : 3689N
Asia Ceramics Holdings PLC
31 August 2011
Unaudited Interim Results For The 6 Months Ended 30 June
2011
The Directors of Asia Ceramics Holdings Plc are pleased to
present the Company's interim results for the six months ended 30
June 2011.
KEY POINTS
*SALES GBP618,000
*LOSS FOR PERIOD GBP143,000
*CASH AT BANK GBP633,000
*GROWTH IN WHOLESALE DIVISION
*SET UP EXPORT DIVISION
CHAIRMAN'S STATEMENT
OVERVIEW AND RESULTS
Sales for the six months to 30th June2011 was GBP618,000 and the
loss for the period was GBP143,000.
As mentioned in my previous statement, the Group has set up a
wholesale division to service the requirements of the domestic
property market in China.
This division has began to show encouraging signs of growth. To
date this division is supplying over 60 distributors in Mainland
China and we are confident of signing up substantially more by the
end of the year.
The Group has also recently acquired an export license and will
be looking to export certain specialised ceramic products, where it
believes it has a competitive advantage.
CURRENT TRADING AND PROSPECTS
The Group currently has three retail stores of its own.
Your Board, however, believes that, with the wholesale division
beginning to show results and with the export division in place,
there should be steady growth in volume and sales for the rest of
the financial year.
We are confident that our strategy of setting up the wholesale
and export divisions will substantially improve the Group's trading
and take the business forward to the next stage of its
development
Frank Lewis
Chairman
August 2011
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2011
6 Months
ended 30 Period Period ended
June ended 6 31 December
2011 July 2010 2010 audited
Notes GBP'000 GBP'000 GBP'000
Revenue 618 - 347
Cost of sales (465) - (250)
-------------- --------------- --------------
Gross profit 153 - 97
Distribution
expenses (71) - (58)
Administrative
expenses (243) - (285)
Interest Income 18 - 23
-------------- --------------- --------------
(143) - (320)
Loss on
ordinary
activities
before
taxation 6 (143) - (223)
Income tax
expenses 9 - - (2)
-------------- --------------- --------------
Loss after
taxation ( 143 ) - (225)
-------------- --------------- --------------
Other
comprehensive
income
Exchange
difference
arising on
translation of
foreign
operations
Total
comprehensive
income for the
year
attributable
to equity
holders Losses
per ordinary
share (pence) (31) - (25)
-------------- --------------- --------------
(174) - (250)
Basic and
diluted 10 ( 1.7 )p - (2.2)p
-------------- --------------- --------------
The notes form an integral part of these financial
statements.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 JUNE 2011
30 June 6July 31 Dec
2011 2010 2010 audited
Notes GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and
equipment
Construction in
progress -
Investments Trade 11 13 24 193 - 3 110
and other 12 - - -
receivables 14 - - -
------------ ---------- --------------
217 - 113
Current assets
Inventory 29 - -
Trade and other
receivables 14 372 64 207
Cash and cash
equivalents 15 633 43 834
------------ ---------- --------------
1,034 107 1,041
Total assets 1,251 107 1,154
============ ========== ==============
Equity and reserves
Share capital -
Share premium 52 712 - 52 712
Other reserves 17 (56) (368 - (25) (225
Retained earnings 17 ) - )
------------ ---------- --------------
Equity and reserves
Current
liabilities 340 - 514
------------ ---------- --------------
Trade and other
payables 16 411 107 140
------------ ---------- --------------
411 107 140
------------ ---------- --------------
Non current
liabilities
Loans 16 500 - 500
------------ ---------- --------------
500 - 500
------------ ---------- --------------
Total equity and
liabilities 1,251 107 1,154
============ ========== ==============
The notes form an integral part of these financial
statements.
CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2011
6 Months Period Period
ended ending ending
30 June 6 July 31 Dec
2011 2010 2010 audited
Notes GBP'000 GBP'000 GBP'000
Net cash generated (
used ) in operating
activities 19 (74) 43 (291)
------------- ------------ --------------
Investing activities
Purchase of property,
plant and equipment (13) - (4)
Construction in
progress Investment (110)
in subsidiaries (83) - - -
------------
Net cash used in
investing
activities (96) - (114)
------------- ------------ --------------
Financing
activities
Loans to subsidiaries
Loans from
shareholders - - - 500
Shares issued - - 1,245
Share Issue Costs - - (481)
------------
Net cash from
financing
activities - - 1,264
------------- ------------ --------------
Net increase (de
crease ) in cash and
cash equivalents (170) 43 859
Cash and cash
equivalents at
beginning of period 834 - -
Exchange difference - (31) - (25)
Cash and cash
equivalents at end
of period 15 633 43 834
============= ============ ==============
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2011
Share Share Other Retained
Group capital premium reserves earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 6
July 2010 - - - - -
=============== ================ ============= ============= ============
Exchange
difference
arising on the
translation of
financial
statements of
overseas
subsidiaries - - (25) - (25)
Loss for the
year - - - (225) (225)
--------------- ---------------- ------------- ------------- ------------
Total
comprehensive
income for the
year - - (25) (225) (250)
--------------- ---------------- ------------- ------------- ------------
Issue of shares
Share issue 52 1,193 - - 1,245
costs - (481) - - (481)
Balance at 31
December 2010 52 712 (25) (225) 514
=============== ================ ============= ============= ============
Exchange
difference
arising on the
translation of
financial
statements of
overseas
subsidiaries (31) - (31)
Loss for the
period - - - (143) (143)
Total
comprehensive
income for the
year
Issue of shares
Share issue
costs - - - - -
Balance at 30
June 2011 52 712 (56) (368) 340
=============== ================ ============= ============= ============
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011
1 GENERAL INFORMATION
Asia Ceramics Holdings Plc is a company incorporated in Jersey
under the Companies (Jersey) Law 1991. The company is governed by
its articles of association and the principal statute governing the
company is Jersey law. The company has an unlimited life. The
liability of the members of the company is limited. The company is
domiciled and has its registered office in Jersey and the company's
registration number is 105875 (Jersey). The principal activity of
the Company is investment holding. The Group's principal activity
is the sale of ceramic products in China.
The Group's places of business are Hong Kong and the People's
Republic of China ("PRC").
These financial statements are presented in pounds sterling and
rounded to the nearest thousand ('000). The Company was
incorporated on 9 June 2010 and there were no transactions for the
corresponding period for the six months ended 30 June 2010. For
information, comparatives for the period from incorporation to 6
July 2010 and for the period from incorporation to 31 December 2010
have been shown.
2 ADOPTION OF NEW AND REVISED STANDARDS
Asia Ceramics Holding Plc has adopted all relevant standards
effective for accounting periods beginning on or after 1 January
2011.
At the date of authorisation of these financial statements, the
following standards and interpretations were in issue, but not yet
effective:
Standards and interpretations
IFRS 9 Financial Instruments (not yet adopted by the EU)
IAS24 Related party disclosures (revised 2009)
Amendment to IAS32, classification of rights issue
IFRIC 19 Extinguishing financial liabilities with equity
instruments
Amendment to IFRIC 14 Prepayments of Minimum Funding
Requirement
Improvements to IFRS issued May 2010
Amendment to IFRS7 Financial Instruments: Disclosures
Amendment to IAS12 Income Taxes
It is considered that these do not apply to Asia Ceramics
Holdings Plc and that these standards are not expected to result in
changes in accounting policies, changes to the carrying amounts of
assets or liabilities or the published results.
3 SIGNIFICANT ACCOUNTING POLICIES
3.1 Basis of preparation
The Group's Financial Statements have been prepared in
accordance with International Financial Reporting Standards (IFRS
and IFRIC Interpretations) ("IFRS") as adopted by the European
Union.
The Board has reviewed the accounting policies set out in the
Financial Statements and consider them to be the most appropriate
to the Group's business activities.
The Directors do not propose a dividend in respect of the period
ended 30 June 2011.
3.2 Going Concern policy
The Financial Statements have been prepared assuming the Group
will continue as a going concern. Under the going concern
assumption, an entity is ordinarily viewed as continuing in
business for the foreseeable future with neither the necessity of
liquidation, nor ceasing trading or seeking protection from
creditors pursuant to laws or regulations. In assessing whether the
going concern assumption is appropriate, management takes into
account all available information for the foreseeable future, in
particular for the twelve months from the date of approval of the
Financial Statements. Based on the budgets prepared, management
have a reasonable expectation that the Group has adequate resources
to continue its operational exercises for the foreseeable future
and the group has adopted the going concern basis of accounting in
preparing the financial statements.
3.3 Basis of consolidation
The Consolidated Financial Statements incorporate the financial
statements of the Company and entities controlled by the Company
(its subsidiaries). Control is achieved where the Company has the
power to govern the financial and operating policies of an investee
entity so as to obtain benefits from its activities.
Non-controlling interests in the net assets of consolidated
subsidiaries are identified separately from the Group's equity
therein. Non-controlling interests consist of the amount of those
interests at the date of the original business combination (see
below) and the non-controlling interest' share of changes in equity
since the date of the combination. Losses applicable to the
minority in excess of the non-controlling interest in the
subsidiary's equity are allocated against the interests of the
Group except to the extent that the non-controlling interest has a
binding obligation and is able to make an additional investment to
cover the losses.
The results of subsidiaries acquired or disposed of during the
year are included in the Consolidated Statement of Comprehensive
Income from the effective date of acquisition or up to the
effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used
into line with those used by the Group.
All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
Business combinations
The acquisition of subsidiaries is accounted for using the
purchase method of accounting. The cost of the acquisition is
measured at the aggregate of the fair values, at the date of
exchange, of assets given, liabilities incurred or assumed, and
equity instruments issued by the Group in exchange for control of
the acquiree, plus any costs directly attributable to the business
combination. The acquiree's identifiable assets, liabilities and
contingent liabilities that meet the conditions for recognition
under IFRS 3: Business Combinations are recognised at their fair
value at the acquisition date, except for non-current assets (or
disposal groups) that are classified as held for sale in accordance
with IFRS 5: Non-Current Assets Held for Sale and Discontinued
Operations, which are recognised and measured at fair value less
costs to sell.
Goodwill arising on acquisition is recognised as an asset and
initially measured at cost, being the excess of the cost of the
business combination over the Group's interest in the net fair
value of the identifiable assets, liabilities and contingent
liabilities recognised. If, after reassessment, the Group's
interest in the net fair value of the acquiree's identifiable
assets, liabilities and contingent liabilities exceed the cost of
the business combination, the excess is recognised immediately in
the Statement of Comprehensive Income.
3.4 Foreign currencies
Functional and presentational currency
Items included in the financial information of each groupentity
are presented in the currency of the primary economic environment
in which the entity operates. The functional currecnies of the
Group are Renminibi (RMB), Hong Kong Dollars (HKD) and Pounts
Sterling (GBP). For the purpose of the consolidated financial
statements, the results and financial position of each group entity
are expressed in Pounds Sterling ("GBP"), for reporting in the
United Kingdom, which is the company's presentational currency.
Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of
transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at period
end exchange rates of the monetary assets and liabilities
denominated in foreign currencies are recognised in the Statement
of Comprehensive Income.
Group companies
The results and financial position of all the group entities
(none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentational
currency are translated into the presentational currency as
follows:
-- assets and liabilities for each Statement of Financial
Position presented are translated at the closing rate at the date
of that Statement of Financial Position;
-- income and expenses for each Statement of Comprehensive
Income are translated at average exchange rates (unless this
average is not a reasonable approximation of the cumulative effect
of the rates prevailing on the transaction dates, in which case
income and expenses are translated at the rate on the dates of the
transactions); and all resulting exchange differences are
recognised as a separate component of equity.
3.5 Property, plant and equipment
Property, plant and equipment are stated in the Statement of
Financial Position at cost less any subsequent accumulated
depreciation and any recognised impairment loss.
Cost includes purchase price and all directly attributable costs
of bringing the asset to its location and condition necessary to
operate as intended.
Depreciation is provided at rates calculated to write off the
cost less estimated residual value from 0-10% of each asset over
its estimated useful economic life as follows
Furniture, fixtures and fittings 32-18% straight line
Computer equipment 30-50% straight line
Motor vehicles 18% straight line
An asset's carrying amount is written down immediately to its
recoverable amount if the asset's carrying amount is greater than
its estimated recoverable amount (refer note 3.15).
Gains and losses on disposals are determined by comparing the
disposal proceeds with the carrying amount and are included in the
Statement of Comprehensive Income.
3.6 Construction-in-progress
Construction-in-progress is stated at cost less impairment
losses. Cost comprises direct costs of construction capitalised
during the periods of construction. Capitalisation of these costs
ceases and construction-in-progress is transferred to property,
plant and equipment when substantially all the activities necessary
to prepare the assets for their intended use are completed. No
depreciation is provided for in respect of construction-in-progress
until it is completed and ready for its intended use.
3.7 Revenue recognition
Revenue is measured at the fair value of the consideration
received or receivable and represents amounts receivable for goods
and services provided in the normal course of business, net of
discounts, VAT and other sales related taxes.
Sales of goods are recognised when goods are delivered and title
has passed and all revenue recognised is in respect of the sale of
goods.
3.8 Taxation
The tax expense represents the sum of the tax currently payable
and deferred tax.
The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the
Statement of Comprehensive Income because it excludes items of
income or expense that are taxable or deductible in other years and
it further excludes items that are never taxable or deductible. The
Group's liability for current tax is calculated using tax rates
that have been enacted or substantively enacted by the Statement of
Financial Position date, and any adjustment to tax payable in
respect of previous periods.
Deferred tax is the tax expected to be payable or recoverable on
differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in
the computation of taxable profit, and is accounted for using the
balance sheet method. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax
assets are recognised to the extent that it is probable that future
taxable profits will be available against which the asset can be
utilised. Such assets and liabilities are not recognised if the
temporary difference arises from the initial recognition of
goodwill or from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that
affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each
Statement of Financial Position date and reduced to the extent that
it is no longer probable that sufficient taxable profits will be
available to allow all, or part of the asset, to be recovered.
Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is
realised. Deferred tax is charged or credited in the Statement of
Comprehensive Income, except when it relates to items charged or
credited directly to equity, in which case it is recognised in
equity.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis.
3.9 Leases
Leases in which a significant portion of the risks and rewards
of ownership are retained by the lessor are classified as operating
leases. Payments made under operating leases (net of any incentives
received from the lessor) are charged to the Statement of
Comprehensive Income on a straight-line basis over the period of
the lease.)
3.10 Investment in subsidiaries
Investment in subsidiaries is stated at cost less provision for
impairment.
3.11 Inventories
Inventories and work in progress are measured at the lower of
cost and net realisable value.
Net realisable value is the estimated selling price in the
ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale. Cost includes
all costs of purchase, costs of conversion and other costs incurred
in bringing the inventories to their present location and
condition. The cost of inventories and work in progress, other than
those for which specific identification of costs are appropriate,
is assigned by using the first-in, first-out (FIFO basis). When the
inventories and work-in-progress are sold, the carrying amount of
those inventories and work-in-progress are recognised as an expense
in the same period as the revenue.
The amount of any write-down of inventories and work in progress
to net realisable value are recognised as an expense in the period
the write-down or loss occurs. The amount of any reversal of a
write-down of inventories and work-in-progress are recognised as a
reduction in the amount of inventories and work-in-progress
recognised as an expense in the period in which the reversal
occurs.
3.12 Impairment of assets
i. Financial assets
A financial asset is assessed at each reporting date to
determine whether there is any objective evidence that it is
impaired. A financial asset is considered to be impaired if
objective evidence indicates that one or more events have had a
negative effect on the estimated future cash flows of that
asset.
An impairment loss in respect of a financial asset measured at
amortised cost is calculated as the difference between its carrying
amount, and present value of the estimated future cash flows
discounted at the original effective interest rate. An impairment
loss in respect of an available-for-sale financial asset is
calculated by reference to its fair value.
Individually significant financial assets are tested for
impairment on an individual basis. The remaining financial assets
are assessed collectively in groups that share similar credit risk
characteristics.
An impairment loss is recognised in the statement of
comprehensive income. Any cumulative loss in respect of an
available-for-sale financial asset recognised previously in equity
is transferred to the statement of comprehensive income.
An impairment loss is reversed if the reversal can be related
objectively to an event occurring after the impairment loss was
recognised. For financial assets measured at amortised cost and
available-for-sale financial assets that are debt securities, the
reversal is recognised in the Statement of Comprehensive Income.
For available-for-sale financial assets that are equity securities,
the reversal is recognised directly in equity.
ii. Non-financial assets
The carrying amounts of the Group's non-financial assets, other
than deferred tax assets, are reviewed at each reporting date to
determine whether there is any indication of impairment. If any
such indication exists, then the asset's recoverable amount is
estimated. For assets that have indefinite lives, the recoverable
amount is estimated at each reporting date.
The recoverable amount of an asset or cash-generating unit is
the greater of its value in use and its fair value less costs to
sell. In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money
and risk specific to the asset. For the purpose of impairment
testing, assets are grouped together into the smallest group of
assets that generates cash inflows from continuing use that are
largely independent of the cash inflows of other assets or group of
assets (the "cash generating unit"). The goodwill acquired in a
business combination, for the purposes of impairment testing, is
allocated to cash-generating units that are expected to benefit
from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an
asset or its cash generating unit exceeds its estimated recoverable
amount. Impairment losses recognised in respect of cash generating
units are allocated first to reduce the carrying amount of the
other assets in the unit (or group of units) on a pro rata
basis.
An impairment loss in respect of goodwill is not reversed. In
respect of other assets, impairment losses recognised in prior
periods are assessed at each reporting date for any indications
that the loss has decreased or no longer exists. An impairment loss
is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed
only to the extent that the asset's carrying amount does not exceed
the carrying amount that has been determined, net of depreciation
or amortisation, if no impairment loss had been recognised.
3.13 Cash and cash equivalents
For the purposes of the statements of cash flows, cash and cash
equivalents include cash in hand, deposits, bank balances, demand
deposits and other short term, highly liquid investments that are
readily convertible to known amounts of cash and which are
subjected to an insignificant risk of change in value.
3.14 Share Capital
Ordinary shares are recorded at nominal value and proceeds
received in excess of nominal value of shares issued, if any, are
accounted for as share premium. Both ordinary shares and share
premium are classified as equity. Costs incurred directly to the
issue of shares are accounted for as a deduction from share
premium, otherwise they are charged to the statement of
comprehensive income.
3.15 Contingent liabilities and contingent assets
A contingent liability is a possible obligation that arises from
past events and whose existence will only be confirmed by the
occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Group. It can also be a
present obligation arising from past events that is not recognised
because it is not probable that outflow of economic resources will
be required or the amount of obligation cannot be measured
reliably.
A contingent liability is not recognised but is disclosed in the
notes to the accounts. When a change in the probability of an
outflow occurs so that the outflow is probable, it will then be
recognised as a provision. A contingent asset is a possible asset
that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain
events not wholly within the control of the Group. Contingent
assets are not recognised but are disclosed in the notes to the
accounts when an inflow of economic benefits is probable. When
inflow is virtually certain, an asset is recognised.
3.16 Events after the balance sheet date
Post period-end events that provide additional information about
the Group's position are reflected in the Financial Statements.
Post period-end events that are not adjusting events are disclosed
in the notes when material.
3.17 Provisions
Provisions are recognised when the Group has a present legal or
constructive obligation as a result of a past event, it is probable
that an outflow of economic benefit will be required to settle the
obligation, and a reliable estimate of the amount can be made.
3.18 Employee Benefits
i. Short Term Employee Benefits
Wages, salaries, annual leave and sick leave, social security
contributions, bonuses and non-monetary benefits are accrued in the
period in which the associated services are rendered by the
employees.
ii. Post-employment benefits
For the subsidiary of the group in China, there are contributory
retirement plans operated by the local government. The employees
participate in the defined contribution retirement plans, thereby
the Company is required to contribute to the schemes at fixed rates
of the employees' salary costs. The Company's contributions to
these plans are charged to profit or loss when incurred. The
Company has no obligation for the payment of retirement and other
post-retirement benefits of staff other than the contributions
described above.
The amount of retirement scheme contributions expensed during
the period amounted to GBP5,045.
Contributions to defined contribution plans, include a basic
pension insurance in China which is charged to the Statement of
Comprehensive Income in the period to which they are related. The
pension plan under which the Group pays fixed contributions will
have no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay
all employee benefits relating to employee service in the current
or prior financial periods. Once the contributions have been paid,
the Group has no further payment obligations.
3.19 Capital Risk Management
The Group manages its capital to ensure that entities in the
Group will be able to continue as going concerns while maximising
the return to stakeholders through the optimisation of the debt and
equity balance. The capital structure of the Group consists of
debt, which includes the loan disclosed in note 23, cash and cash
equivalents and equity attributable to equity holders of the
parent, comprising issued capital, reserves and retained
earnings.
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates, assumptions and judgements concerning the future are
made in the preparation of the Financial Statements. They affect
the application of the Group's accounting policies, reported
amounts of assets, liabilities, income and expenses and disclosures
made. They are assessed on an on-going basis and are based on
historical experience and other factors, including expectations of
future events that are believed to be reasonable under the
circumstances.
4.1 Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future.
The resulting accounting estimates and assumptions will, by
definition, seldom equal the related actual results. The estimates
and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within
the next financial year are discussed below.
i. Income taxes
The Group is subject to income taxes in numerous jurisdictions.
Significant judgement is required in determining the worldwide
provision for income taxes. There are many transactions and
calculations for which the ultimate tax determination is uncertain
during the ordinary course of business. The Group recognises
liabilities for anticipated tax issues based on estimates of
whether additional taxes will be due. Where the final tax outcome
of these matters is different from the amounts that were initially
recorded, such differences will impact the income tax and deferred
tax provisions in the period in which such determination is
made.
ii. Provisions for doubtful debts
Each debtor balance is assessed to determine recoverability of
debt. Provisions are made for all those debtors where evidence
indicates that recoverability is doubtful. Amounts are written off
when they are deemed irrecoverable. Any changes to estimates made
in relation to debtors' recoverability may result in material
difference amounts being reported in the Group's Financial
Statements.
5. BUSINESS AND GEOGRAPHICAL SEGMENTS
For the purpose of IFRS 8, the chief operating decision maker
takes the form of the Board of Directors. The Directors are of the
opinion that the business of the Group comprises of a single
activity, being the sale of ceramic products in the PRC China
(including Hong Kong). At the meetings between the Directors, the
income, expenditure, cash flows, assets and liabilities are
reviewed on a whole-group basis.
The investment criteria of the Group is to invest in sales
opportunities in prime locations. Sub-division of sales by type,
function or by town or city of location is therefore of little
significance in reviewing operations.
Based on the above considerations, there is considered to be one
reportable segment, the sale of ceramic products in PRC China.
Internal and external reporting is on a consolidated basis, with
transactions between Group companies eliminated on consolidation.
Therefore the financial information of the single segment is the
same as that set out in the Consolidated Statement of Comprehensive
Income, the Consolidated Statement of Changes in Equity, the
Consolidated Statement of Financial Position and Cashflows.
All Group non-current assets are located in the PRC. No Group
non-current assets are located in the entity's country of
domicile.
6. LOSS BEFORE TAX
Loss from operations has been arrived at after charging:
June 30, July 6, 2010 December 31,
2011 2010
GBP'000 GBP'000 GBP'000
Staff costs 163 - 61
Inventory costs 465 - 250
Depreciation 2 - 1
Donation - 10
7. STAFF COSTS
June 30, July 6, December
2011 2010 31, 2010
Number Number Number
The average monthly
number of employees:
Management (including
Executive Directors)
Sales and marketing 10 44
staff. Wages and 54 15 50
salaries Social GBP'000 65
security costs 154 5 GBP'000
Pension costs 4 - 57 4 3
---------------- ----------------
Total 163 - 64
================ ================
8. DIRECTORS' EMOLUMENTS
June 30, December 31,
2011 July 6, 2010 2010
GBP'000 GBP'000 GBP'000
16 - 11
Frank Lewis Dr Pu 28 - 19
Dingxin Shawn Wu 4.5 - -
David Kar Ning 12.7 - 17
Tsui Yangjing 9 - 6
Zhang Weifeng Liu 9 - 6
Alei Duan Wenxian 5 - 3
Liu - - -
-----------------
Total 84.2 - 62
============= =================
No Director received pension benefits in the year. The highest
paid Director received emolument of GBP28,397. All emoluments are
in the form of salary. No bonuses have been paid and no share
options have been awarded. The Directors are considered to be the
key management personnel.
9. INCOME TAX EXPENSE
2011
GBP'000
Current tax charge -
Deferred tax -
-
Factors affecting tax charge:
Loss before tax: 143
Tax on ordinary activities at 16.5% for Asia Ceramics (HK)
Ltd
Tax effects of:
Other -
-
The applicable tax of the Group is derived from the
consolidation of all Group companies applicable tax band on their
domestic tax rates. The applicable tax rate for Asia Ceramics (HK)
Ltd is 16.5% and 25% for Shenyang Louis Building Materials Ltd.
10. LOSS PER SHARE
Basic loss per share is calculated by dividing the loss
attributable to equity holders of the company by the weighted
average number of ordinary shares in issue during the period. In
accordance with IAS 33 and as the Group has reported a loss for the
period the shares are not diluted.
June 30, 2011 December 31,2010
Loss after taxation ( GBP'000 ) 174 225
Basic weighted average shares in issue 10,089,058 10,089,058
Basic and diluted loss per share based
on the weighted average per share capital
as at 30 June 2011 (pence) 1.7 2.2
11. PROPERTY, PLANT AND EQUIPMENT
Fixtures and
Car Vehicles fittings Total
GBP'000 GBP'000
Cost
At 31 December 2010 - 4 4
Additions in the
period 24 - 24
At 30 June 2011 24 4 28
================= ================= ============
Accumulated
depreciation
At 31 December 2010 - 2 2
Charge for the period 1 1 2
At 30 June 2011 1 3 4
================= ================= ============
Carrying amount
At 30 June 2011 23 1 24
================= ================= ============
No fixed assets were held by the Company.
12. SUBSIDIARIES
Details of the Company's subsidiaries at 30 June 2011 are as
follows:
Name of Place of Proportion Principal
subsidiary incorporation (or of activities
registration) and ownership
operation interest %
Asia Hong Kong 100 Retail of
Ceramics Ceramics
(HK) Ltd Products in
Hong Kong
Market
Shenyang P.R. China 100 Establishment
Louis of Ceramics
Building retail shops
Materials in China and
Ltd sale of
Ceramics.
13. CONSTRUCTION IN PROGRESS
Construction-in-progress comprises expenditure incurred and paid
on construction of leasehold improvements to a new office and
showroom not yet competed as at 30 June 2011. Payments on the
construction contract are made in instalments as the construction
progresses. The unpaid portion of the contract (RMB500,000) has not
been capitalised and is disclosed as a capital commitment.
June 30, July 6, December 31,
2011 2010 2010
GBP'000 GBP'000 GBP'000
Cost
At 31 December 2010 110 - 110
Additions in the period 83 - -
- 110
At 30 June 2011 193 - -
============= =================
Accumulated depreciation
At 31 December 2010 - - -
Charge for the period - - -
At 30 June 2011
============= =================
Carrying amount - - 110
At 30 June 2011 193 - 110
------------- -----------------
14. TRADE AND OTHER RECEIVABLES
June 30, July 6, December 31,
2011 2010 2010
GBP'000 GBP'000 GBP'000
Non-current
Intercompany balances - -
Current - - -
Account receivables 14 - 6
Prepayment 305 64 48
Deposits - - 117
Other receivables 53 - 36
------------- -----------------
Total 372 64 207
============= ============ =================
Intercompany balances are deemed to be receoverable and are
carried at their discounted net present value.
15. CASH AND CASH EQUIVALENTS
June 30, July 6, December 31,
2011 2010 2010
GBP'000 GBP'000 GBP'000
Cash at Bank 633 43 834
Total 633 43 834
============= ============ =================
Bank balances and cash comprise cash held by the Group and
short-term bank deposits with an original maturity of three months
or less. The carrying amount of these assets approximates their
fair value.
16. TRADE AND OTHER PAYABLES
June 30, July 6, December 31,
2011 2010 2010
GBP'000 GBP'000 GBP'000
Current 335
Trade payables 76 - 84
Other payables 411 107 56
Non-Current 500 107 140
Loans (see note 21) 500 - 500
-------------- ------------ -----------------
107 500
----------------------------------------- ============ =================
17. SHARE CAPITAL
The company has one class of ordinary share capital which carry
no rights to fixed income, any preferences or restrictions.
June 30, July 6, December 31,
2011 2010 2010
GBP'000 GBP'000 GBP'000
Authorised:
2,000,000,000 Ordinary
shares of GBP0.005 each 10,000 - 10,000
============= =================
Issued and fully paid:
10,311,444 Ordinary
shares of GBP0.005 each 52 - 52
============= =================
Shares issued during the year
Share Share Share
Note numbers Capital Premium
On
Incorporation
On 12 July
2010 On 18 2 2
July 2010 On 2 (i) 42,448 42,448
August 2010 (ii) 8,490,000 42,450 - - -
Less share (iii) 1,821,444 9,107 1,193,046
issue costs (iv) - - (480,955)
Total 10,311,444 51,557 712,091
=============== ============ ==============
(i) On incorporation, the Company issued 2 shares at par value
of GBP1 each.
(ii) On 12 July 2010, the Company issued 42,448 additional
shares at its par value of GBP1 each.
(iii) Pursuant to a special resolution of the Company dated 15
July 2010 the authorised share capital of the Company was
sub-divided into 2,000,000,000 shares of GBP0.005 each.
(iv) On 2 August 2010, the Company raised GBP1.20 million gross
of expenses in a private placing through the issue of 1,821,444
additional shares at GBP0.66 each.
18. Capital commitments
December 31,
June 30,2011 2010
----------------- -----------------
GBP'000 GBP'000
----------------- -----------------
48 110
----------------- -----------------
Capital commitments outstanding at 30 June 2011 not provided
for
in the financial statements are as follows: - -
Authorised, but not contracted for: -
Commitments under operating leases
The Company rents one sales office under operating lease. The
lease is for 8 years expired on 31 December 2018, with fixed rents
over the same period. Minimum lease payments under operating leases
recognised as an expense during the period were GBP11,549.
At the reporting date, the Company had outstanding commitments
under non-cancellable operating leases that fall dues as
follows:
2011
GBP'000
Within one year 46
Later than one year but within five years 185
Total 231
19. NOTES TO THE CASH FLOW STATEMENT
June 30, July 6, December 31,
2011 2010 2010
GBP'000 GBP'000 GBP'000
Loss from operations (143) - (223)
Adjustments for:
Depreciation of property,
plant and equipment 2 - 1
------------- ------------ -----------------
Operating cash flows
before movements in
working capital (141) - (222)
Increase in inventory (29) - -
(Increase) Decrease in
trade and other
receivables (165) (64) (207)
Increase (Decrease) in
trade and other
payables 261 107 140
------------- ------------ -----------------
Net cash generated (used)
in operations (74) 43 (289)
Income taxes paid - - (2)
Net cash generated (used)
in operating activities (74) 43 (291)
============= ============ =================
20. ULTIMATE CONTROLLING PARTY
The ultimate controlling party of the group is Dingxin Pu, the
majority shareholder and Director of the company.
21. RELATED PARTY TRANSACTIONS
On 18 August 2010, Dingxin Pu, the Chief Executive Officer and
the major shareholder of the Company, entered into a loan facility
agreement with the Company, whereby Dingxin Pu agreed to make
available to the Company a loan facility of GBP500,000 ("the Loan
Facility Agreement"). The loan is interest-free and is repayable
over five equal quarterly instalments commencing from 18 months
following the date of the Loan Facility Agreement. The loan was
fully drawn down on 18 August 2010.
At 30 June 2011, an amount of HKD 26,634 (GBP2,130) was due from
Dingxin Pu, the Chief Executive Officer and the major shareholder
of the Company.
At 30 June 2011, an amount of HKD 31,731 (GBP2,538) was due from
Jin Dongen, Director of Shenyand Louis Building Materials Limited.
The amount is unsecured, interest free and repayable upon
demand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR MMGFRKMGGMZM
Asia Ceramics (LSE:ACHP)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Asia Ceramics (LSE:ACHP)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
