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Results Announcement (Q2, 2004, Summary)

2004-8-23 9:43:41

WEIGAO GROUP<08199> - Results Announcement (Q2, 2004, Summary)


Shandong Weigao Group Medical Polymer Company Limited announced on 10/08/2004:
(stock code: 08199 )

Year end date :31/12/2004
Currency :RMB
Auditors' report :N/A
2nd Quarterly Report Reviewed by Audit Committee

Important Note :

This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com

(Unaudited) (Unaudited)
Current Last Corresponding
Period Period
from 01/01/2004 from 01/01/2003
to 30/06/2004 to 30/06/2003
RMB'000 RMB'000

Turnover : 175,790 150,815
Profit/(Loss) from Operations : 39,005 30,405
Finance cost : (6,838) (5,469)
Share of Profit/(Loss) of Associates : 0 0
Share of Profit/(Loss) of Jointly
Controlled Entites : 0 0
Profit/(Loss) after Taxation & MI : 28,010 21,782
% Change Over the Last Period : +28.59%
EPS / (LPS)
Basic (in dollar) : RMB 0.036 RMB 0.036
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 28,010 21,782
2nd Quarter Dividends per Share : RMB0.007 NIL
(specify if with other options) : N/A N/A
B/C Dates for 2nd Quarter Dividends :30/09/2004 to 05/10/2004 bdi.
Payable Date : 15/10/2004
B/C Dates for Extraordinary
General Meeting :29/08/2004 to 27/09/2004 bdi.
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A
(bdi: both days inclusive)

For and on behalf of
Shandong Weigao Group Medical Polymer Company Limited

Signature :
Name : Chong Tak Fat, Calvin
Title : Company Secretary

Responsibility statement

The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for the
accuracy of the information contained in this results announcement form
(the "Information") and confirm, having made all reasonable inquiries,
that to the best of their knowledge and belief the Information are
accurate and complete in all material respects and not misleading and
that there are no other matters the omission of which would make the
Information herein inaccurate or misleading.The Directors acknowledge
that the Stock Exchange has no responsibility whatsoever with regard to
the Information and undertake to indemnify the Exchange against all
liability incurred and all losses suffered by the Exchange in connection
with or relating to the Information.


1. Principal accounting policies and basis of presentation
Shandong Weigao Group Medical Polymer Company Limited
(the "Company') was incorporated on 28th December, 2000 in Shandong
Province, the People's Republic of China ("the PRC") as a joint stock
company with limited liability pursuant to the approval by the
Commissionfor Restructuring the Economic Province in document
Lu Ti Gai HanZi 2000 No. 39. The Company is principally engaged
in the production aand sales of Category I, II and III medical polymer
materials and products, plastic products (excluding agricultural
sheets). The Company's H Shares was successfully listed on GEM
on 27th February, 2004.

Weihai Jierui Medical Products Company Limited ("Jierui Subsidiary"), a
subsidiary of the Company, was established under the joint investment
by WeihaiMedical Polymer Company (the predecessor of Weigao Holding)
and Weihai Jierui Medical Company Limited on 22nd January, 1999.
On 11th February, 1999, as confirmedunder document "Notice of
Recognition of Weihai Jierui Medical Products Company Limited as a
Social Welfare Entity" (Lu Min Han 1999 No. 25) issued by the Civil
Administration Bureau of Shandong Province, Jierui Subsidiary was
recognised as a Social Welfare Entity, and has received "Social
Welfare CorporationCertificate". The scope of operation for Jierui
Subsidiary included theproduction and sale of infusion sets, laboratory
apparatus, medical bags,medical plastic products, medical plastic
raw materials, medical wound-care materials, sterile syringes, packaging
materials and cardiogram recording papers.The existing major products
of Jierui Subsidiary include medical PVC granules, single-use medical
devices, plastic bag for packaging and paper boxes. The Company
acquired 90% and 6% of equity rights in Jierui Subsidiary on 19th April.
2002 and 20th June, 2003 respectively. As at 30th June, 2004, the
Company controlled 96% of equity interest in Jierui Subsidiary.

The financial statements have been prepared in accordance with the
accounting principles generally accepted in Hong Kong, the Statements
of Standards Accounting Practice issued by the Hong Kong Society
of Accountants as well as the disclosure requirements under
the Companies Ordinance, and have beenprepared on the basis
of historical cost.

2. Turnover
Turnover represents the amount received and receivable for goods sold
by the Group, less value added tax, business tax, sales returns and
commercial discount.

3. Taxation
For the three months and six months ended 30th June, 2004, total income
tax was RMB1,900,000 and RMB3,031,000 respectively (same period
of 2003: RMB1,056,000 and RMB1,758,000).

According to the document Lu Ke Gao Zi 2001 No. 457 issued by the
Departmentof Science and Technology of Shangdong Province, the
Comapny was a High and New Technology Enterprise. The Company
was entitled to 15% reduced Enterprise Income Tax ("EIT") as it was
reviewed by theHigh-tech Zone sub-bureau of the Weihai Local Tax
Bureau that it was satisfied with the criteria of a high-tech enterprise
prescribed in Cai Shui Zi 94 0001) issued by the State Tax Bureau
on 29th March,1994. Accordingly, the Company was subject to
15% income tax rate.

According to the "Notice of Recognition of Weihai Jierui Medical
Products Company Limited as a Social Welfare Entity" Lu Min Han
1999 No. 25 issued by the Civil Administration Bureau of the Shangdong
Province, it was confirmed that Jierui Subsidiary was entitled to
the preferential tax treatment for a socialwelfare enterprise. Jierui
Subsidiary has applied to the Torch Hi-tech Industrial Development
Zone sub-bureau of Weihai Local Tax Bureau for exemption
of EITfor the previous year.

4. Dividends
Unaudited Unaudited
For the three months For the three months
end 30th June end 30th June
2004 2003 2004 2003
RMB'000 RMB'000 RMB'000 RMB'000
Interim, proposed,
RMB 0.007 (same
period of 2003: nil)
per share 6,052 - 6,052 -
====== ====== ===== =====

At a meeting held on 10th August, 2004, the Board of Directors proposed
an interim dividend of RMB0.007 per share (same period of 2003: nil).
The proposed dividend is not reflected as a dividend payable but
will be reflected as an appropriation of retained profits for the year
ending 31st December, 2004

5. Earnings per share
According to the resolutions passed on the EGM on 18th April, 2002 and
the approval issued by the China Securities Regulatory Commission dated
8th December, 2003, domestic shares of RMB1.0 each of the Company
were subdivided into 10 domestic shares of RMB0.1 each. On 26th
February, 2004, the Company issued 264,500,000 H Shares by way of
placing. As at 30thJune, 2004, total number of shares of the Company
was 864,500,000 shares.

For the three months and six months ended 30th June, 2004, basic
earnings per share was calculated based on net profit attributable to
shareholders of RMB15,855,000 and RMB28,010,000 respectively (same
period of 2003: RMB12,697,000 and RMB21,782,000 respectively), and
the weighted average number of shares of 864,500,000 shares and
776,333,333 shares respectively (same period of 2003: 600,000,000
shares.

Diluted earnings per share has not been presented as there was no
dilutive potential ordinary share in existence during the periods.