Listed Company Information
 

ITC CORPORATION<00372> - Results Announcement

ITC Corporation Limited announced on 22/07/2005:
(stock code: 00372 )
Year end date: 31/03/2005
Currency: HKD
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/04/2004    from 01/04/2003
                                     to 31/03/2005      to 31/03/2004
                               Note  ('000      )       ('000      )
Turnover                        2  : 2,026,328          3,434,666         
Profit/(Loss) from Operations   2  : (30,696)           57,194            
Finance cost                       : (16,588)           (38,722)          
Share of Profit/(Loss) of 
  Associates                       : 319,967            156,400           
Share of Profit/(Loss) of
  Jointly Controlled Entities      : 117                9,074             
Profit/(Loss) after Tax & MI       : 186,728            28,932            
% Change over Last Period          : +545      %
EPS/(LPS)-Basic (in dollars)    3  : 0.24               0.02              
         -Diluted (in dollars)  3  : 0.11               0.01              
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 186,728            28,932            
Final Dividend                     : 1.5 cents          NIL
  per Share                                              
(Specify if with other             : Cash dividend with N/A
  options)                           an option to elect  
                                     scrip               
B/C Dates for 
  Final Dividend                   : 03/10/2005         to 05/10/2005 bdi.
Payable Date                       : 03/11/2005
B/C Dates for (-)            
  General Meeting                  : N/A   
Other Distribution for             : N/A
  Current Period                     
                                     
B/C Dates for Other 
  Distribution                     : N/A   
  
Remarks:

1.

In 2004, the Hong Kong Institute of Certified Public Accountants (the 
"HKICPA") issued a number of new or revised Hong Kong Accounting 
Standards and Hong Kong Financial Reporting Standards ("HKFRSs")
 (hereinafter collectively referred to as the "new HKFRSs") which are 
effective for accounting periods beginning on or after 1st January, 2005 
except for HKFRS 3 "Business Combinations".  The Group has not early 
adopted these new HKFRSs in the financial statements for the year ended 
31st March, 2005.

HKFRS 3 is applicable to business combination for which the agreement 
date is on or after 1st January, 2005.  The Group has adopted the 
transitional provision of HKFRS 3 for its acquisition of Trasy Gold Ex 
Limited in March 2005.   Under HKFRS 3, the negative goodwill arising 
from the acquisition is determined as the excess of the Group's interest 
in fair value of the identifiable assets, liabilities and contingent 
liabilities at the date of acquisition over the cost of acquisition and 
is recognised in the income statement immediately on acquisition.  
HKFRS 3 does not require retrospective adjustment of the business 
combinations occurred prior to 1st January, 2005.   

The Group has commenced considering the potential impact of the new 
HKFRSs but is not yet in a position to determine whether the new HKFRSs 
would have a significant impact on how the results of operations and 
financial position of the Group are prepared and presented.  The new 
HKFRSs may result in changes in the future as how the results and 
financial position are prepared and presented.

 
2. - Turnover and Profit/(Loss) from Operations



Analyses of turnover and profit/(loss) from operations are as follows:

                                              2005          2004
                                           HK$'000       HK$'000

Turnover
                        
- Continuing operations                    104,361       100,590
- Discontinued operations                1,921,967     3,334,076
                                        -----------   -----------
                                         2,026,328     3,434,666
                                        ===========   =========== 


Profit/(loss) from operations has been arrived at after the following 
items: -
        
                                              2005          2004
                                           HK$'000       HK$'000
Continuing operations                   
                        
Turnover                                   104,361       100,590
Cost of sales                              (48,117)      (10,742)
                                          ---------     ---------
Gross profit                                56,244        89,848
Other operating income                      24,002        80,091
Administrative expenses                    (64,673)      (58,985)
Negative goodwill recognised arising 
  from acquisition of subsidiaries          20,938             -
Net investment expenses                     (8,182)      (43,183)
Deficit arising on revaluation of 
  investment properties                          -       (14,000)
Allowance for amounts due from associates                       
  and a related company                    (17,001)      (40,985)
Net loss on disposal and dilution of 
  interests in subsidiaries and associates (98,114)     (163,053)
                                          ----------  ------------      
Loss from operations                       (86,786)     (150,267)
                                          ----------  ------------      
                

Discontinued operations                 
                        
Turnover                                  1,921,967      3,334,076
Cost of sales                            (1,821,422)    (3,277,824)
                                          ----------  ------------      
Gross profit                                100,545         56,252
Administrative expenses                     (44,455)       (95,444)
Net gain on disposal and dilution of 
  interests in subsidiaries and associates        -        246,653
                                          ----------  ------------              
Profit from operations                       56,090        207,461
                                          ----------  ------------      
Total (loss) profit from operations         (30,696)        57,194
                                            ========       =======   

3. - Earnings Per Share


The calculation of the basic and diluted earnings per share is based on 
the following data: 

                                              2005          2004
                                           HK$'000       HK$'000
                 
Profit for the year                        186,728        28,932
Dividend for preference shares             (15,312)      (18,491) 
                                          ----------  ------------
Profit for the purposes of    
  basic earnings per share                 171,416        10,441  


Effect of dilutive potential ordinary shares:   

Interest and amortization of deferred 
  expenditure on convertible notes          13,830             -

Dividend for redeemable convertible 
  preference shares                          4,369             -

Adjustment to the share of results of 
  subsidiaries based on dilution of 
  their earnings per share                       -        (2,963)

Adjustment to the share of results of 
  associates based on dilution of 
  their earnings per share                    (271)            -
                                          ----------  ------------
Profit for the purposes of diluted 
  earnings per share                       189,344         7,478
                                           =======         =====                
 


                                    Number of shares  Number of shares
         
Weighted average number of 
  ordinary shares for the purposes 
  of basic earnings per share            722,619,374       636,379,717

Effect of dilutive potential ordinary shares:

Redeemable convertible preference shares 111,337,564                -

Convertible notes                        897,979,908                -
                                       --------------     ------------
Weighted average number of ordinary shares 
  for the purposes of 
  diluted earnings per share           1,731,936,846      636,379,717
                                       =============      ===========
        

For the year ended 31st March, 2004, the convertible notes and 
compulsorily convertible cumulative preference shares were anti-dilutive 
as the exercise of these convertible notes and compulsorily convertible 
cumulative preference shares resulted in an increase in earnings per 
share.


4. - Dividend on Redeemable Convertible Preference Shares


The Board has resolved to pay a dividend of HK$0.04 per redeemable 
convertible preference share of the Company of HK$0.10 each in respect of 
the twelve month period ending on but excluding 3rd November, 2005 to 
holders of redeemable convertible preference shares whose names appear on 
the register of redeemable convertible preference shares as at the close 
of business on 14th October, 2005.  The dividend on redeemable convertible 
preference shares is expected to be paid to holders of redeemable 
convertible preference shares by post on or around 3rd November, 2005.

The register of redeemable convertible preference shares of the Company 
will be closed from 12th October, 2005 to 14th October, 2005, both dates 
inclusive, during which period no redeemable convertible preference share 
transfers shall be effected.