Guangdong Investment Limited
Annual Report 1995

The Directors are pleased to announce that the Group's turnover for 1995 increased by 118% from the previous year to HK$8,189,684,000.  Net profit attributable to shareholders rose by 32.4% to HK$578,692,000.  Earnings per share increased by 7.8% to 29 cents from the previous year.


Review of Operations (Brief)

The Directors are satisfied with the development and overall performance of the Group's core businesses in 1995.  Over tha past six years, the Group has managed to maintain a steady growth in its turnover, net profit attributable to shareholders, consolidated net assets value and earnings per share for six consecutive years, despite having to face with the cyclical nature of the economies of China and Hong Kong.  Through the reorganization of assets and the expansion of core businesses such as industrial investment and wholesale and retail business in the year, the Group has further broadened, consolidated and strengthened its foundation in terms of long term development and profitability.


Dividends

An interim dividend of 3.8 cents per share was paid on 27 October 1995. The Directors recommend the payment of a final dividend of 5.2 cents per share, in respect of the year ended 31 December 1995, to shareholders on the register of members on 26 June 1996.


 
Consolidated Profit and Loss Account
Year ended 31st December 1995
1995

HK$'000

 1994

HK$'000
TURNOVER
Continuing operations 4,308,742  3,528,202 
Discontinued operations 3,880,942 232,487
8,189,684  3,760,689
OPERATING PROFIT FROM:
Continuing operations before exceptional items 640,838  559,769 
Exceptional items (7,769) 9,554
Continuing operations 633,069 569,323
Discontinued operations before exceptional items and gain on disposal 140,815  15,593 
Exceptional items - 39,570 
Gain on disposal of discontinued operations 131,607 -
Discontinued operations 272,422 55,163
OPERATING PROFIT 905,491  624,486 
Share of profits less losses of associated companies 10,757  9,353
PROFIT BEFORE TAXATION 916,248  633,839 
Taxation (75,624) (37,153)
PROFIT BEFORE MINORITY INTERESTS 840,624  596,686 
Minority interests (261,932) (159,492)
NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS 578,692  437,194 
Retained profits at beginning of year 519,062 287,391 
1,097,754  724,585 
Dividends (187,478) (164,960)
910,276  559,625 
Transfer to reserves (3,649) (40,563)
RETAINED PROFITS AT END OF YEAR 906,627 519,062
EARNINGS PER SHARE
- Basic 29.0 cents 26.9 cents
- Fully diluted 28.0 cents 25.8 cents


 
Consolidated Balance Sheet
31 December 1995
1995

HK$'000

 1994

HK$'000
FIXED ASSETS 6,448,028 5,562,366
PROPERTIES UNDER DEVELOPMENT 880,705 679,007
INVESTMENT PROPERTIES 536,513 550,669
INTERESTS IN ASSOCIATED COMPANIES 343,056 133,332
CONTRACTUAL JOINT VENTURES 347,356 566,974
LONG TERM INVESTMENTS 213,765 203,804
OTHER LONG TERM ASSETS 82,093 70,093
8,851,516 7,766,245
CURRENT ASSETS 2,900,364 3,803,416
CURRENT LIABILITIES (2,307,027) (3,355,556)
NET CURRENT ASSETS 593,337 447,860
TOTAL ASSETS LESS CURRENT LIABILITIES 9,444,853 8,214,105
LONG TERM LOANS (1,600,482) (1,264,678)
LONG TERM PORTION OF LEASE PAYABLES (14,603) (10,506)
CONVERTIBLE BONDS (575,198) (595,499)
FLOATING RATE NOTES (386,650) -
DEFERRED TAXATION (2,740) (2,120)
MINORITY INTERESTS (1,238,403) (1,279,076)
5,626,777 5,062,226
SHARE CAPITAL 997,533 993,974
RESERVES 3,722,617 3,549,190
RETAINED PROFITS 906,627 519,062
5,626,777 5,062,226


 
Consolidated Cash Flow Statement
Year ended 31st December 1995
1995

HK$'000

 1994

HK$'000
NET CASH INFLOW FROM OPERATING ACTIVITIES 403,015 711,702
RETURNS ON INVESTMENTS AND SERVICING OF FINANCE
Interest received 156,972 67,554
Interest paid (316,151) (165,157)
Interest element of finance lease payments (3,232) (1,978)
Dividends from associated companies 6,015 5,942
Dividends paid to minority interests (83,211) (7,065)
Dividends paid (171,564) (134,268)
Net cash outflow from returns on investments and servicing of finance (411,171) (234,972)
TAXATION
Hong Kong profits taxes paid  (22,341) (20,848)
Overseas taxes paid (4,792) (8,891)
Tax paid (27,133) (29,739)
INVESTING ACTIVITIES
Purchases of fixed assets (1,146,270) (513,886)
Acquisition of subsidiaries (158,714) (556,508)
Additions to properties under development (88,401) (114,341)
Purchases of short term investments (13,532) (73,232)
Purchases of investment properties (75,967) (114,303)
Purchases of long term investments (10,026) (46,361)
Additions to other long term assets (34,429) (44,586)
Decrease in bank deposits 64,186 250,519
Acquisition of and capital injections to associated companies (154,462) (3,107)
Proceeds from the sale of fixed assets 8,200 52,074
Proceeds from the sale of investment properties 3,456 -
Proceeds from disposal of interests in subsidiaries 182,782 -
Proceeds from disposal of an associated company 5,252 -
Proceeds from the sale of short term investments 29,521 53,768
Proceeds from the sale of long term investments 485 413
Net cash outflow from investing activities (1,387,919) (1,109,550)
NET CASH OUTFLOW BEFORE FINANCING ACTIVITIES (1,423,208) (662,559)
FINANCING ACTIVITIES
Issue of share capital 4,126 839,651
Proceeds from shares issued on initial public offering of a subsidiary - 113,300
Expenses on initial public offering of a subsidiary - (14,285)
Interest income derived from share application monies received
during the initial public offering of a subsidiary		 - 5,156
Share issue expenses (169) (26,806)
Capital contributed by minority interests 268,745 58,749
New bank loans 2,183,461 969,747
New other loans 379,755 21,333
Proceeds from the issue of floating rate notes 386,650 -
Floating rate notes issue expenses (6,659) -
Repayment of bank loans (1,492,092) (362,960)
Repayment of other loans (393,184) (23,107)
Capital element of finance lease payments (9,844) (2,933)
Net cash inflow from financing activities 1,320,789 1,577,845
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (102,419) 915,286
Cash and cash equivalents at beginning of year 1,065,625 142,247
Effect of foreign exchange rate changes, net 4,728 8,092
CASH AND CASH EQUIVALENTS AT END OF YEAR 967,934 1,065,625
ANALYSIS OF BALANCES OF CASH AND CASH EQUIVALENTS
Cash and bank balances 1,218,492 1,227,535
Bank loans and overdrafts (250,558) (161,910)
967,934 1,065,625