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First Quarterly Results Announcement for the Three Months Ended 31st March, 2010
HONG KONG, CHINA and TORONTO, ONTARIO--(Marketwire - May 14, 2010) - Harmony Asset Limited (the "Company") (TSX:HAR)(HKEX:428)
FINANCIAL HIGHLIGHTS
The financial highlights of the Group for the three months ended 31st March, 2010 are summarized as follows:
Turnover, other revenue and other gains and losses of the Group for the three months ended 31st March, 2010 were aggregated resulting in a gain of HK$27,407,068 as compared to HK$8,936,098 in the same period last year, representing a 207% increase.
Profit attributable to owners of the Company for the three months ended 31st March, 2010 was HK$24,872,447 as compared to HK$7,426,024 in the same period last year, representing a 235% increase.
Basic earnings per share of the Group was HK cents 63.68 for the three months ended 31st March, 2010 as compared to HK cents 19.04 in the same period last year, representing a 234% increase.
The Board of Directors of the Company is pleased to present the unaudited, condensed, consolidated results of the Group for the three months ended 31st March, 2010 with comparative figures for the corresponding period in 2009 as follows:
| Condensed Consolidated Statement of Comprehensive Income |
| For the three months ended 31st March, 2010 |
| Three months ended | |||||
| 31st March, | |||||
| 2010 | 2009 | ||||
| (Unaudited) | (Unaudited) | ||||
| HK$ | HK$ | ||||
| Turnover | 4,163,642 | 3,246,795 | |||
| Other revenue | 30,001 | 67,119 | |||
| Other gains | 23,213,425 | 5,622,184 | |||
| 27,407,068 | 8,936,098 | ||||
| Employee benefits expenses | (630,149 | ) | (557,995 | ) | |
| Depreciation of property, plant and equipment | (79,217 | ) | (10,792 | ) | |
| Other operating expenses | (2,079,940 | ) | (1,799,287 | ) | |
| Profit before income tax | 24,617,762 | 6,568,024 | |||
| Income tax credit | 254,685 | 858,000 | |||
| Profit for the period attributable to owners | |||||
| of the Company | 24,872,447 | 7,426,024 | |||
| Other comprehensive income: | |||||
| Gains on fair value changes on available-for-sale financial assets | 5,412,181 | 777,343 | |||
| Other comprehensive income for the period | 5,412,181 | 777,343 | |||
| Total comprehensive income for the period attributable to owners of the Company | 30,284,628 | 8,203,367 | |||
| Earnings per share | |||||
| Basic | 63.68 cents | 19.04 cents | |||
| Diluted | N/A | 19.00 cents | |||
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of the ordinary shares in issue during the period.
No diluted earnings per share for the period has been presented as the effect of the assumed conversion of the outstanding share option is anti-dilutive.
| Condensed Consolidated Statement of Financial Position | ||
| As at 31st March, 2010 and 31st December, 2009 | ||
| 31st March, | 31st December | |
| 2010 | 2009 | |
| (Unaudited) | (Audited) | |
| HK$ | HK$ | |
| Non-current assets | ||
| Property, plant and equipment | 1,385,945 | 1,465,162 |
| Available-for-sale financial assets | 116,266,674 | 110,854,493 |
| Loans and receivables | 6,424,429 | 6,314,135 |
| 124,077,048 | 118,633,790 | |
| Current assets | ||
| Accounts receivable and prepayments | 30,529,534 | 17,810,465 |
| Trading securities | 75,407,706 | 44,930,302 |
| Derivative financial instruments | 18,137,014 | 21,322,735 |
| Bank balances and cash | 82,100,764 | 98,065,356 |
| 206,175,018 | 182,128,858 | |
| Current liabilities | ||
| Accounts payable and accruals | 709,432 | 1,249,956 |
| Amount due a related company | 6,028,948 | 6,028,948 |
| Tax payable | 13,915,198 | 13,569,202 |
| 20,653,578 | 20,848,106 | |
| Net Current assets | 185,521,440 | 161,280,752 |
| Total assets less current liabilities | 309,598,488 | 279,914,542 |
| Non-current liabilities | ||
| Deferred tax liabilities | 1,813,266 | 2,413,948 |
| Net assets | 307,785,222 | 277,500,594 |
| Capital and reserves | ||
| Share capital | 39,058,615 | 39,058,615 |
| Reserves | 268,726,607 | 238,441,979 |
| 307,785,222 | 277,500,594 | |
- The accounting policies adopted in preparing the financial data for the three months ended 31st March, 2010 are consistent with those used in the annual consolidated financial statements of the Group for the year ended 31st December, 2009.
The financial data for the three months ended 31st March, 2010 are based on the internal records and management accounts of the Group and are unaudited.
OVERALL PERFORMANCE
For the three months ended 31st March, 2010, the Group received interest income in the aggregate amount of HK$374,570 as compared to HK$246,795 in the same period in the prior year, representing a 52% increase. Dividend income generated from unlisted securities was HK$3,789,072 for the three months ended 31st March, 2010 as compared to HK$3,000,000 in the same period in the prior year, representing a 26% increase. Turnover was HK$4,163,642 for the three months ended 31st March, 2010 as compared to HK$3,246,795 in the same period in the prior year, representing a 28% increase. Gain on the fair value changes on the listed securities was HK$16,524,160 as compared to HK$13,736,179 in the same period in the prior year, representing a 20% increase. The Group disposed of certain of its publicly traded securities to obtain a realised gain of HK$6,774,166 (2009: nil). The Group recorded turnover, other revenue and other gains and losses of HK$27,407,068 for the three months ended 31st March, 2010 as compared to HK$8,936,098 in the same period in the prior year, representing a 207% increase. The profit before income tax was HK$24,617,762 for the three months ended 31st March, 2010 as compared to HK$6,568,024 in the same period in the prior year, representing a 275% increase. The profit attributable to shareholders of the Company was HK$24,872,447 for the three months ended 31st March, 2010 as compared to HK$7,426,024 in the same period in the prior year, representing a 235% increase.
CAUTION STATEMENT
The Company's shareholders and potential investors should note that all the figures contained herein are unaudited. Accordingly, figures contained in this announcement should in no way be regarded as any assurance on the financial results of the Group for the period ended 31st March, 2010 and the financial position of the Company as at 31st March, 2010.
The Company's shareholders and potential investors are urged to exercise caution in dealing in the shares of the Company and should consult their own professional advisers if they are in doubt as to their investment positions.
| By Order of the Board | |
| Harmony Asset Limited | |
| Lee Fong Lit David | |
| Chairman |
Hong Kong, 14th May, 2010
As at the date of this announcement, the Board of Directors comprises 4 executive directors, namely, Mr. LEE Fong Lit David, Dr. CHOW Pok Yu Augustine, Dr. LAM Andy Siu Wing JP, Mr. CHAN Shuen Chuen Joseph and 3 independent non-executive directors, namely, Mr. TONG Kim Weng Kelly, Dr. WONG Yun Kuen and Mr. HO Man Kai Anthony.
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.