TIDMACHL
RNS Number : 0214P
Asian Citrus Holdings Ltd
18 March 2009
+-------------------------------------+-------------------------------------+
| Under embargo 7.00am | Wednesday 18 March 2009 |
+-------------------------------------+-------------------------------------+
Asian Citrus Holdings Limited
Interim Results for the six months ended 31 December 2008
Asian Citrus Holdings Limited ("Asian Citrus"), the largest orange plantation
owner and operator in China, announces interim results for the six months ended
31 December 2008.
Key Highlights
+------------------+-----------+-----------+------------+----------+----------+
| | | | | For illustration |
| | | | | only |
+------------------+-----------+-----------+------------+---------------------+
| | Six months ended | | Six months ended |
| | 31 December | | 31 December |
+------------------+-----------------------+------------+---------------------+
| | 2008 | 2007 | % change | 2008 | 2007 |
| | (RMBm) | (RMBm) | (RMB) | (GBPm*) | (GBPm*) |
+------------------+-----------+-----------+------------+----------+----------+
| | | | | | |
+------------------+-----------+-----------+------------+----------+----------+
| Reported financial information | | | |
+------------------------------------------+------------+----------+----------+
| | | | | | |
+------------------+-----------+-----------+------------+----------+----------+
| Revenue | 293.3 | 181.2 | +61.9 | 29.7 | 12.5 |
+------------------+-----------+-----------+------------+----------+----------+
| EBITDA | 184.9 | 151.6 | +22.0 | 18.7 | 10.5 |
+------------------+-----------+-----------+------------+----------+----------+
| Profit before | 150.8 | 131.7 | +14.5 | 15.2 | 9.1 |
| tax | | | | | |
+------------------+-----------+-----------+------------+----------+----------+
| Net profit | 149.3 | 163.7 | -8.8 | 15.1 | 11.3 |
+------------------+-----------+-----------+------------+----------+----------+
| Basic EPS | RMB2.01 | RMB2.21 | -9.0 | 20.3p | 15.3p |
+------------------+-----------+-----------+------------+----------+----------+
| | | | | | |
+------------------+-----------+-----------+------------+----------+----------+
| Reported financial information adjusted | | | |
| to exclude biological gain | | | |
+------------------------------------------+------------+----------+----------+
| | | | | | |
+------------------+-----------+-----------+------------+----------+----------+
| EBITDA | 97.6 | 63.6 | +53.5 | 9.9 | 4.4 |
+------------------+-----------+-----------+------------+----------+----------+
| Profit before | 63.4 | 43.7 | +45.1 | 6.4 | 3.0 |
| tax | | | | | |
+------------------+-----------+-----------+------------+----------+----------+
| Net profit | 62.0 | 75.7 | -18.1 | 6.3 | 5.2 |
+------------------+-----------+-----------+------------+----------+----------+
| Basic EPS | RMB0.83 | RMB1.02 | -18.6 | 8.4p | 7.1p |
+------------------+-----------+-----------+------------+----------+----------+
* Conversion at GBP1 = RMB9.89 and RMB14.45 for the six months ended 31 December
2008 and 2007 respectively for reference only
Operational Highlights
* Revenues from the sales of oranges up 51.5% to RMB274.6m, achieved by an
increase of 36.3% in production and a 11.2% increase in average selling price
* Revenues from the sales of Xinfeng Development was RMB18.7m (2007: Nil) with
gross margin of 24.0% (2007: Nil)
* Gross profit increased by 40.0% to RMB146.0 million with overall profit margin
of 49.8% (2007: 57.5%)
* Profit before tax (ex-biological gain) increased by 45.1% to RMB 63.4m
* Excluding the one-off tax credit in last year, net profit would have been up
23.6%
* Continued increase in higher margin supermarket business during the period:
*
* 31.6% of Group revenue (2007: 29.3%)
* 23.6% of production sold directly to supermarkets (2007: 21.1%)
* Signed new contracts with two more supermarket customers in Beijing and Guizhou
province, increased our brand awareness
* Benefited from the 'Organic Product' accreditation with 11.2% increase in the
average price of our winter crops
* Concluded the negotiations on the pricing of upcoming summer crops with an
average price increase of approximately 3.7%
* Took a prudent view and delayed the launch of the freshly-squeezed juice
operation
Hepu Plantation
* Fully developed with approximately 1.1m fruit-bearing trees
* Production increased by 8.1% to 53,142 tonnes (2007: 49,162 tonnes)
* Gross margin slightly increased to 62.5% (2007: 62.1%)
* Replanting underway with approximately 80, 000 new summer orange trees to be
planted before end of March 2009
Xinfeng Plantation
* Fully planted with 1.6m winter orange trees
* Production increased by 173% to 27,665 tonnes from the first 800,000 (2 batches
of 400,000) winter orange trees (2007: 10,119 tonnes)
* Gross margin decreased to 29.1% (2007: 33.8%) as a result of the trial
production of second batch of 400,000 trees
* Third batch of 400,000 winter oranges will start its trial crops in the winter
of 2009
* Final batch of 400,000 orange trees will continue to reach their fruit-bearing
age in the winter of 2010
Hunan Plantation
* Commenced the basic infrastructure with total of RMB5.2 million invested during
the period
* Started the construction work of a new nursery at Hunan Plantation which
occupies approximately 7,000 square metres
* Lengthened the investment period of Hunan Plantation from 3 years to 5 years as
a result of a more prudent policy adopted in response to the anticipated slower
growth of PRC's economy due to global financial crisis
Xinfeng Development (Agricultural wholesale market and processing centre)
* Phase 1 completed in 2007-2008 financial year with approximately 99% of the
units sold for a total consideration of RMB 90.0 million
* Postponed the starting Phase II of the development until conditions in the real
estate sector are more stable
Tony Tong, Chairman, commented:
"Since the second half of 2008, the growth of the Chinese economy started to
slow down in wake of the global financial crisis. Despite this, we believe the
Group was able to achieve higher selling prices for both its winter and summer
crops because of the outstanding species and quality of its oranges. "
"Furthermore, the Group was able to expand its sales coverage to both the
Beijing and Guizhou province, further extending our coverage of the
population."
"Looking to the future, given the more challenging global and Chinese business
environment, we intend to adopt a more conservative strategy by lengthening the
investment period of the Hunan Plantation, delaying the launch of the
freshly-squeezed juice business and postponing the start of Phase 2 of the
Xinfeng Development."
"Notwithstanding this, our business and cash resources have remained strong and
we are optimistic that the Group will be able to achieve better profitability
and diversification by securing supplier contracts with more supermarket
customers and expanding its exposure to more areas across China in the near
future. "
"We are very confident in the development of Asian Citrus and we will continue
to focus on delivering value to our shareholders."
- ends -
+-------------------------------------------+--------------------------+
| For further information please contact: | |
+-------------------------------------------+--------------------------+
| | Tel: 852 2559 0323 |
+-------------------------------------------+--------------------------+
| | |
+-------------------------------------------+--------------------------+
| Weber Shandwick Financial | Tel: 020 7067 0700 |
+-------------------------------------------+--------------------------+
| Terry Garrett, Stephanie Badjonat, John | |
| Moriarty | |
+-------------------------------------------+--------------------------+
| | |
+-------------------------------------------+--------------------------+
Asian Citrus Holdings Limited
Chairman's Statement
I am very pleased to report the results of Asian Citrus Holdings Limited (the
"Company" or "Asian Citrus") and its subsidiaries (collectively referred to as
the "Group") for the six months ended 31 December 2008.
STRATEGIC OVERVIEW
During the last six months, the Group has continued to expand its direct sales
to supermarkets with both increased volume and geographical coverage. In
addition to the renewal of the supply contracts with all the existing
supermarket customers, the Group entered into new contracts with two more
supermarket customers; one in Beijing and the other in Guizhou province. We
believe that expanding the geographical coverage of our products will help
increase brand awareness and build our product image amongst consumers.
During the six months ended 31 December 2008, we sold approximately 19,031
tonnes (2007: 12,516 tonnes) of oranges directly to supermarkets accounting for
approximately 24% (2007: 21%) of the total volume of winter orange crop. The
higher proportion of direct sales to supermarkets enhances Group profitability.
Benefiting from the accreditation of our oranges as "Organic Products", we were
able to increase the average price of our winter crops by 11.2% even though the
growth of the Chinese economy started to slow in the second half of 2008.
Despite this year's continued slow down in the Chinese economy, which created a
more challenging environment, we have negotiated an average price increase for
the coming summer crops of approximately 3.7%.
As a result of the more challenging environment ahead, the Board has reviewed
its strategy and adopted a more prudent view in order to ensure continuing
attractive returns and to maintain a strong financial position; while
maintaining the long term growth potential and leading market position of the
Company.
The Group commenced the basic infrastructure work on the Hunan plantation during
the third quarter of 2008 and approximately RMB5.2 million was invested during
the six months ended 31 December 2008. The original plan was to complete the
Hunan Plantation within three years. However, in view of the anticipated slower
growth of the economy in the People's Republic of China ("PRC") as a result of
the global financial crisis, management has decided to lengthen the investment
period of the Hunan Plantation from 3 years to 5 years in order to optimise the
Group's annual capital expenditures during this challenging period.
As disclosed in the previous annual report, Phase 1 of the agricultural
wholesalers' market and orange processing centre located in the
Xinfeng County Zhongduan Industrial Park ("Xinfeng Development") was completed
in the 2007-2008 financial year with approximately 99% of the units sold for a
total consideration of RMB90.9 million. Although Phase 1 was very successful,
the mainland real estate sector has weakened and management has decided to
postpone starting Phase 2 of the development until conditions improve.
Management has taken a prudent view in light of the economic situation and has
decided to delay the launch of the freshly-squeezed juice operation.
Freshly-squeezed juice is regarded as a premium product by most Chinese people
and therefore management considers it appropriate to adopt a conservative stance
and keep this new development under review pending an assessment of the economic
impact on consumer demand. Nevertheless, we still believe that there is
considerable potential to develop a significant own-brand juice operation once
the general economic environment improves and the Group remains committed to
launching this product in the future.
Approximately 300,000 self-bred saplings of two different species are currently
being grown in the nursery at the Hepu Plantation which are ready for planting.
Originally, we planned to use these saplings in our new Hunan Plantation.
However, in order to minimise the corresponding transportation costs and
potential wastage during the transportation process, we intend to retain these
saplings for the replanting programme in the Hepu Plantation and for sales to
local farmers.
Meanwhile, construction work on a new nursery at the Hunan Plantation has
commenced in March 2009 and is expected to be completed by May 2009. This new
nursery occupies approximately 7,000 square metres and will provide the Hunan
Plantation with new species of saplings for planting in the future. The first
batch of saplings from this nursery will be available in 2010.
OPERATING REVIEW
The Hepu Plantation is fully developed with approximately 1.2 million orange
trees. Output from Hepu was approximately 53,142 tonnes for the six months ended
31 December 2008 which represents an increase of approximately 8% over the
previous year's production of 49,162 tonnes. Growth was mainly due to increased
production from certain winter orange trees which are yet to achieve their full
maturity.
The Xinfeng Plantation is now fully planted with 1.6 million winter orange
trees. During the six months ended 31 December 2008, there were only 800,000
trees producing oranges (2007: 400,000), yielding approximately 27,665 tonnes of
oranges, which represents an increase of approximately 173% over the previous
year's production of 10,119 tonnes. The growth was mainly due to the increased
production from the initial planting of 400,000 winter oranges trees, which are
still yet to achieve their full maturity, together with trial production from
the next 400,000 trees. It is expected that a further 400,000 orange trees will
start their trial production in the winter of 2009.
The Group's replanting programme in the Hepu Plantation is continuing. Since the
half year, 81,261 winter orange trees have been removed and the corresponding
land area has been replanted with the same number of the new species of summer
orange trees. The ongoing replanting strategy is expected to equate to 5% of
Hepu's trees per annum and it will be principally focused around replacing the
existing winter orange trees with a new species of summer orange trees. It is
expected that this ongoing replanting will take another three to four years to
complete. We believe this will deliver long term economic benefits by increasing
average yields and the achievable revenue per tonne from the improved species of
trees being planted.
TRADING RESULTS
Group revenue was RMB274.6 million (2007: RMB181.2 million) for the six months
ended 31 December 2008 which represents growth of 51.5%. This was achieved by an
increase of approximately 36.3% in the Group's production combined with a 11.2%
increase in average selling prices to both wholesalers and supermarkets. For the
six months ended 31 December 2008, sales to supermarkets accounted for
approximately 23.6% and 31.6% of the Group's production volume and revenue
respectively (against 21.1% and 29.3% in 2007). We expect that this proportion
will continue to increase and the Group's products will achieve wider
geographical exposure as more supermarket contracts in the PRC are secured.
The gross profit of the Hepu Plantation increased from RMB94.3 million for the
six months ended 31 December 2007 to RMB115.2 million for the six months ended
31 December 2008, representing growth of 22.2%. The gross margin of the Hepu
Plantation increased slightly to approximately 62.5% for the six months ended 31
December 2008 (2007: 62.1%) reflecting higher average selling prices to
supermarkets offsetting higher production costs related to organic farming and
an increase in staff costs due to wage inflation.
The gross profit of the Xinfeng Plantation increased from RMB9.9 million for the
six months ended 31 December 2007 to RMB26.3 million for the six months ended 31
December 2008, representing growth of 165.7%. However, as the Xinfeng Plantation
is still in its early stage of production, with a trial crop from the 400,000
trees which have started to bear oranges in the period, the gross margins
decreased to approximately 29.1% for the six months ended 31 December 2008
(2007: 33.8%). However, over the medium term, as production volume increases and
economies of scale are achieved, the Xinfeng Plantation will demonstrate its
potential for profitable growth.
The cost of production increased from approximately RMB77.0 million for the six
months ended 31 December 2007 to RMB133.1 million for the six months ended 31
December 2008 reflecting the growth of production volume. The average unit cost
of production increased by 26.9% to approximately RMB1.65 per Kg for the six
months ended 31 December 2008 (2007: approximately RMB1.30 per Kg) principally
as a result of the trial production of the 400,000 trees in the Xinfeng
Plantation which was not profitable. In addition, there were the effects of
higher costs relating to organic farming and wage inflation.
HK LISTING
At the interims in 2008, the Board stated that it believed a Hong Kong listing
was still desirable when the timing was appropriate. Whilst market conditions
remain challenging, the Board is currently considering the initiation of work to
investigate a dual primary Hong Kong listing by way of an introduction during
the next twelve months.
INVESTOR RELATIONS
The Board is committed to maintaining good communications with shareholders and
potential investors. The Group's management visited certain institutional and
private client investment advisers during October and November 2008 to update
existing shareholders on the Group's latest developments and introduce the Group
to potential
new investors.
OUTLOOK
Since the second half of 2008, the growth of the Chinese economy started to slow
down in wake of the global financial crisis. Despite this, we believe the Group
was able to achieve higher selling prices for both its winter and summer crops
because of the outstanding species and quality of its oranges. Furthermore, the
Group was able to expand its sales coverage to both the Beijing and Guizhou
province, further extending our coverage of the population.
Looking to the future, given the more challenging global and Chinese business
environment, we intend to adopt a more conservative strategy by lengthening
investment period of the Hunan Plantation, delaying the launch of the
freshly-squeezed juice business and postponing the start of Phase 2 of the
Xinfeng Development.
Notwithstanding this, our business and cash resources have remained strong and
we are optimistic that the Group will be able to achieve better profitability
and diversification by securing supplier contracts with more supermarket
customers and expanding its exposure to more areas across China in the near
future. We are very confident in the development of Asian Citrus and we will
continue to focus on delivering value to our shareholders.
Tony Tong
Chairman
18 March 2009
Asian Citrus Holdings Limited
Condensed consolidated income statement
For the six months ended 31 December 2008
+---------------------------------------+-------------+--+-------------+---+------------+
| | Six months ended | |Year ended |
| | 31 December | | 30 June |
+---------------------------------------+------------------------------+---+------------+
| | 2008 | | 2007 | | 2008 |
| | RMB'000 | | RMB'000 | | RMB'000 |
+---------------------------------------+-------------+--+-------------+---+------------+
| | (Unaudited) | | (Unaudited) | | (Audited) |
+---------------------------------------+-------------+--+-------------+---+------------+
| | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Revenue | 293,296 | | 181,227 | | 533,775 |
+---------------------------------------+-------------+--+-------------+---+------------+
| Net gain on change in fair value of | 87,360 | | 88,000 | | 165,000 |
| biological assets | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Inventories used | (118,248) | | (62,778) | | (160,229) |
+---------------------------------------+-------------+--+-------------+---+------------+
| Staff costs | (25,521) | | (19,922) | | (37,612) |
+---------------------------------------+-------------+--+-------------+---+------------+
| Amortisation | (2,740) | | (1,372) | | (3,450) |
+---------------------------------------+-------------+--+-------------+---+------------+
| Depreciation | (32,967) | | (23,495) | | (48,415) |
+---------------------------------------+-------------+--+-------------+---+------------+
| Other operating expenses | (51,771) | | (33,254) | | (85,938) |
+---------------------------------------+-------------+--+-------------+---+------------+
| | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Profit from operations | 149,409 | | 128,406 | | 363,131 |
+---------------------------------------+-------------+--+-------------+---+------------+
| | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Interest income | 1,528 | | 4,904 | | 5,982 |
+---------------------------------------+-------------+--+-------------+---+------------+
| Finance costs | (5) | | (8) | | (13) |
+---------------------------------------+-------------+--+-------------+---+------------+
| | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Net finance income | 1,523 | | 4,896 | | 5,969 |
+---------------------------------------+-------------+--+-------------+---+------------+
| Share of loss of associates | (181) | | (1,650) | | (1,359) |
+---------------------------------------+-------------+--+-------------+---+------------+
| | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Profit before income tax | 150,751 | | 131,652 | | 367,741 |
+---------------------------------------+-------------+--+-------------+---+------------+
| | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Income tax (expense)/credit | (1,430) | | 32,063 | | 31,552 |
+---------------------------------------+-------------+--+-------------+---+------------+
| | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Profit for the period/year and | 149,321 | | 163,715 | | 399,293 |
| attributable to shareholders | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Proposed dividend | - | | - | | 59,486 |
+---------------------------------------+-------------+--+-------------+---+------------+
| | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| Earnings per share | | | | | |
+---------------------------------------+-------------+--+-------------+---+------------+
| - Basic | RMB2.01 | | RMB2.21 | | RMB5.38 |
+---------------------------------------+-------------+--+-------------+---+------------+
| - Diluted | RMB2.01 | | RMB2.20 | | RMB5.37 |
+---------------------------------------+-------------+--+-------------+---+------------+
Asian Citrus Holdings Limited
Condensed consolidated balance sheet
As at 31 December 2008
+----------------------------------------+-------------+--+-------------+--+-----------+
| | Six months ended | | Year |
| | 31 December | | ended |
| | | | 30 June |
+----------------------------------------+------------------------------+--+-----------+
| | 2008 | | 2007 | | 2008 |
| | RMB'000 | | RMB'000 | | RMB'000 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | (Unaudited) | | (Unaudited) | | (Audited) |
+----------------------------------------+-------------+--+-------------+--+-----------+
| ASSETS | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Non-current assets | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Property, plant and equipment | 1,105,401 | | 1,009,670 | | 999,155 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Land use rights | 56,702 | | 34,478 | | 48,101 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Construction-in-progress | 57,262 | | 23,674 | | 120,468 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Biological assets | 1,018,696 | | 854,141 | | 931,209 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Deferred development costs | 24,400 | | 24,000 | | 22,600 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Interests in associates | 2,059 | | 3,424 | | 2,216 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | 2,264,520 | | 1,949,387 | | 2,123,749 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Current assets | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Biological assets | - | | - | | 16,787 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Properties for sale | 41,635 | | 61,813 | | 54,305 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Inventories | 586 | | 920 | | 1,487 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Trade and other receivable | 32,954 | | 34,708 | | 19,897 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Income tax recoverable | 102 | | - | | 1,073 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Cash and cash equivalents | 323,613 | | 227,907 | | 309,952 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | 398,890 | | 325,348 | | 403,501 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Total assets | 2,663,410 | | 2,274,735 | | 2,527,250 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| EQUITY AND LIABILITIES | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Equity | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Share capital | 8,028 | | 7,769 | | 7,785 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Reserves | 2,601,209 | | 2,219,949 | | 2,461,499 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | 2,609,237 | | 2,227,718 | | 2,469,284 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Current liabilities | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Trade and other payables | 54,173 | | 36,193 | | 56,166 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Due to a related party | - | | - | | 1,800 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Income tax payables | - | | 10,824 | | - |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Total liabilities | 54,173 | | 47,017 | | 57,966 |
+----------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+----------------------------------------+-------------+--+-------------+--+-----------+
| Total equity and liabilities | 2,663,410 | | 2,274,735 | | 2,527,250 |
+----------------------------------------+-------------+--+-------------+--+-----------+
Asian Citrus Holdings Limited
Condensed consolidated cash flow statement
For the six months ended 31 December 2008
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | Six months ended | | Year |
| | 31 December | | ended 30 |
| | | | June |
+-------------------------------------------+------------------------------+--+-----------+
| | 2008 | | 2007 | | 2008 |
| | RMB'000 | | RMB'000 | | RMB'000 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | (Unaudited) | | (Unaudited) | | (Audited) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Cash flows from operating activities | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Profit before income tax | 150,751 | | 131,652 | | 367,741 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Adjustments for: | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Unrealised exchange gain | - | | - | | 518 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Interest income | (1,528) | | (4,904) | | (5,982) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Finance costs | 5 | | 8 | | 13 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Depreciation | 29,494 | | 21,564 | | 50,240 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Share-based payments | 3,608 | | 3,751 | | 6,906 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Amortisation of land use rights | 540 | | 372 | | 1,050 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Amortisation of deferred development | 2,200 | | 1,000 | | 2,400 |
| costs | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Net gain on change in fair value of | (87,360) | | (88,000) | | (165,000) |
| biological assets | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Write off of biological assets | 42 | | - | | - |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Share of loss of associates | 181 | | 1,650 | | 1,359 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Operating profit before working capital | 97,933 | | 67,093 | | 259,245 |
| changes | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Movements in working capital elements | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Properties for sales | 12,670 | | (7,733) | | (10,215) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Inventories | 901 | | 8,341 | | 86 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Biological assets | 16,787 | | - | | (9,099) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Trade and other receivables | (22,198) | | (20,384) | | (5,573) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Trade and other payables | (1,993) | | 17,448 | | 37,421 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Due to a related party | (1,800) | | (2,610) | | (810) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Cash generated from operations | 102,300 | | 62,155 | | 271,055 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Income tax paid | (459) | | (30,306) | | (42,714) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Net cash generated from operating | 101,841 | | 31,849 | | 228,341 |
| activities | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Cash flows from investing activities | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Purchases of property, plant and | (5,755) | | (1,850) | | (3,775) |
| equipment | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Additions to construction-in-progress | (66,779) | | (89,640) | | (206,981) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Additions to biological assets | (169) | | (630) | | (698) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Additions to deferred development costs | (4,000) | | (13,000) | | (13,000) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Interest received | 1,528 | | 4,904 | | 5,982 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Net cash used in investing activities | (75,175) | | (100,216) | | (218,472) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Cash flows from financing activities | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| (Advance to)/repayment from an associate | (24) | | - | | 981 |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Proceeds from issue of new shares upon | - | | 2,223 | | 5,056 |
| exercise of share options | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Dividend paid | (12,976) | | (50,454) | | (50,454) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Finance costs paid | (5) | | (8) | | (13) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Net cash used in financing activities | (13,005) | | (48,239) | | (44,430) |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Net increase/(decrease) in cash and | 13,661 | | (116,606) | | (34,561) |
| cash equivalents | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Cash and cash equivalents at beginning | 309,952 | | 344,513 | | 344,513 |
| of period/year | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
| Cash and cash equivalents at end of | 323,613 | | 227,907 | | 309,952 |
| period/year | | | | | |
+-------------------------------------------+-------------+--+-------------+--+-----------+
Asian Citrus Holdings Limited
Notes to the interim announcement
For the six months ended 31 December 2008
1. Taxation
The amount of income tax expense/(credit) charged/(credited) to the condensed
consolidated income statements represents:
+---------------------------------------------------+--------------+---+------
=-------+---+---------------+
|
| Six months ended | | Year ended 30 |
|
| 31 December | |
June
|
+---------------------------------------------------+----------------------
=----------+---+---------------+
|
| 2008 | | 2007 | | 2008 |
|
| RMB'000 | | RMB'000 | |
RMB'000
|
+---------------------------------------------------+--------------+---+---
=----------+---+---------------+
|
| (Unaudited) | | (Unaudited) | | (Audited)
|
+---------------------------------------------------+--------------+---+---
=----------+---+---------------+
|
| | | | |
|
+---------------------------------------------------+--------------+---+---
=----------+---+---------------+
| PRC enterprise income tax
| 501 | | 10,824 | | 11,164
|
+---------------------------------------------------+--------------+---+---
=----------+---+---------------+
| Land appreciation tax
| 929 | | - | | 171
|
+---------------------------------------------------+--------------+---+---
=----------+---+---------------+
| Deferred taxation
| - | | (42,887) | | (42,887)
|
+---------------------------------------------------+--------------+---+---
=----------+---+---------------+
|
| | | | |
|
+---------------------------------------------------+--------------+---+---
=----------+---+---------------+
|
| 1,430 | | (32,063) | | (31,552)
|
+---------------------------------------------------+--------------+---+---
-----------+---+---------------+
2. Earnings per share
+--------------------------------------+-------------+--+-------------+--+-----------+
| | Six months ended | | Year |
| | 31 December | | ended 30 |
| | | | June |
+--------------------------------------+------------------------------+--+-----------+
| | 2008 | | 2007 | | 2008 |
| | RMB'000 | | RMB'000 | | RMB'000 |
+--------------------------------------+-------------+--+-------------+--+-----------+
| | (Unaudited) | | (Unaudited) | | (Audited) |
+--------------------------------------+-------------+--+-------------+--+-----------+
| Earnings | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| Profit attributable to shareholders | 149,321 | | 163,715 | | 399,293 |
| used in diluted earnings per share | | | | | |
| calculation | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| Weighted average number of shares | '000 | | '000 | | '000 |
+--------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| Issued ordinary shares at beginning | 74,357 | | 74,084 | | 74,084 |
| of period/year | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| Effect of new shares issued to | 14 | | - | | - |
| shareholders participating in the | | | | | |
| scrip dividend | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| Effect of new shares issued upon | - | | 89 | | 110 |
| exercise of share options | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| Weighted average number of ordinary | 74,371 | | 74,173 | | 74,194 |
| shares used in basic earnings per | | | | | |
| share calculation | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| Effect of dilutive potential shares | 85 | | 220 | | 209 |
| in respect of share options | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| Weighted average number of ordinary | 74,456 | | 74,393 | | 74,403 |
| shares used in diluted earnings per | | | | | |
| share calculation | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
| | | | | | |
+--------------------------------------+-------------+--+-------------+--+-----------+
3. Dividends
No dividend has been declared during the six months ended 31 December 2008
(2007: Nil).
A final dividend of RMB0.80 (2007: RMB0.68) per ordinary share for the year
ended 30 June 2008 was paid on 31 December 2008.
4. Financial Information
The preliminary announcement was approved by the board on 18 March 2009. The
financial information has been prepared on a going concern basis in accordance
with International Financial Reporting Standards. The accounting policies
applied in preparing the financial information are consistent with those adopted
and disclosed in the Group's consolidated financial statements for the year
ended 30 June 2008.
5. Interim Report
Copies of the interim report will be dispatched to shareholders in due course.
Copies will also be available from the head office of the Company: Rm 1109-1111,
Wayson Comm. Building, 28 Connaught Road West, Hong Kong.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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