PJ DEVELOPMENT HOLDINGS BERHAD (COMPANY NO. 5938-A)
QUARTERLY REPORT ON CONSOLIDATED RESULTS
FOR THE 4TH QUARTER ENDED 30 JUNE 2005
NOTES TO THE INTERIM FINANCIAL REPORT
A1
Basis of Preparation
The interim financial report is unaudited and has been prepared in accordance with FRS 134 ‘Interim Financial
Reporting’ and paragraph 9.22 of the Bursa Malaysia Securities Berhad Listing Requirements.
The interim financial report should be read in conjunction with the audited financial statements of the Group for the year
ended 30 June 2004.
The accounting policies and methods of computation adopted by the Group in this interim financial report are consistent
with those adopted in the financial statements for the year ended 30 June 2004 except for the adoption of FRS 201
(formerly known as MASB 32), Property Development Activities for the first time and as a result, the borrowing cost,
capitalised in respect of the land held for property development that is not being developed has to be written off and
promotional cost associated with the sale of development units that were previously capitalised are now expensed off in
the income statement in accordance with FRS 201.
The change in accounting policy, applied retrospectively, had the following impact on the results as follows:
2005
RM'000
Net profit before change in accounting policy
Effect of adopting FRS 201
Net profit for the year
29,840
(2,271)
27,569
2004
RM'000
20,056
(552)
19,504
The following comparatives have been restated to reflect the change in accounting policy as explained above:
As
Restated
RM'000
As Previously
Stated
RM'000
Balance Sheet
Land held for property development
Deferrd tax assets
Deferred tax liabilities
153,003
3,167
10,098
183,299
10,113
Current assets
Property development costs
Trade and other receivables
93,835
162,146
104,994
141,385
Current liabilities
Trade and other payables
107,056
96,043
Comparative figures (continued)
As
Restated
RM'000
As Previously
Stated
RM'000
Income statement
Property development costs
Gross profit
Other operating expenses
Operating profit
Financing costs
Profit before taxation
Tax expense
Net profit for the year
(100,935)
100,247
(50,901)
39,562
(11,898)
29,023
(8,764)
19,504
(107,498)
93,684
(46,540)
37,360
(9,603)
29,116
(8,305)
20,056
118,279
146,252
134,499
163,024
Statement of changes in equity
Retained earnings
At 1 July 2003
Retained earnings
At 1 July 2004
As a result of the above, the Group’s cash flow statement for the year ended 30 June 2005 has been restated accordingly.
A2
Audit Qualification
The audit report of the Group’s preceding year financial statements was not qualified.
A3
Seasonal or Cyclical Factors
The business of the Group was not affected by any significant seasonal or cyclical factors during the period under review.
A4
Unusual Items
There were no unusual items affecting assets, liabilities, equity, net income and cash flow for the current financial year
todate.
A5
Material Changes in Estimates of Amounts Reported
There were no changes in estimates of amounts reported in prior financial year that have a material effect in the current
interim period.
A6
Debt and Equity Securities
There has been no new issuances and repayment of debt and equity securities, and no share buy-back, share
cancellations, share held as treasury shares and resale of treasury shares for the financial period under review.
A7
Dividend paid
An interim dividend of 2% less 28% tax (previous corresponding period: Nil) totaling RM6,568,308 has been paid on 29
April 2005.
The first and final dividend of 4% less 28% income tax per share totaling RM13,136,612 for the financial year ended 30
June 2004 has been paid on 31 January 2005.
A8
Segmental Reporting
Segment information for the year todate:
Construction
RM'000
Properties
RM'000
Manufacturing
& Trading
RM'000
Hotels
&
Leisure
RM'000
Revenue from external
customers
Inter-segment revenue
104,497
118,311
115,869
69,590
72,397
205
27,163
-
Total revenue
176,894
118,516
143,032
8,534
22,172
9,359
Segment result
Investment
Holding and
Trading
RM'000
Others
RM'000
Eliminations
RM'000
Consolidated
RM'000
1,523
66
-
261
65
(100,091)
69,590
1,784
131
(100,091)
409,856
3,772
(1,501)
(159)
(534)
41,643
Financing costs
Interest income
Share of profits of associated companies
Profit before taxation
Tax expense
Minority interest
Net profit for the quarter
A9
409,856
-
(8,443)
1,681
1,291
36,172
(8,603)
27,569
Property, Plant and Equipment
The valuations of land and buildings have been brought forward, without amendment from the previous annual report
except for the recognition of impairment loss on certain hotel properties which is set off against the revaluation reserve
recognised previously.
A10
Events Subsequent to the Balance Sheet Date
There were no material events that have not been reflected in the financial statements for the period under review.
A11
Changes in the Composition of the Group
There were no major changes in the composition of the Group for the financial period under review including business
combination, acquisition or disposal of subsidiaries and long term investments, restructuring and discontinuing
operations except for the incorporation of the following subsidiaries:-
Name of subsidiaries
Issued and
Paid-up Capital
(1)
HTR Management Services Sdn. Bhd.
RM2.00
100.0 %
(2)
Swiss-Garden International Hotels,
Resorts (Australia) Pty. Ltd.
AUD1.00
100.0 %
Harbour Place Management
Services Sdn. Bhd.
RM2.00
100.0 %
(4)
PJDCI Co., Ltd
5,000,000 Baht
78.5 %
(5)
PJDC Co., Ltd
37,500,000 Baht
88.6 %
(3)
A12
Effective
Ownership Interest (%)
Changes In Contingent Liabilities or Contingent Assets
There were no major changes in the contingent liabilities or contingent assets of the Group since 30 June 2004.
ADDITIONAL INFORMATION REQUIRED BY BURSA MALAYSIA SECURITIES BERHAD LISTING
REQUIREMENTS
B1
Review of the Performance
For the fourth quarter ended 30 June 2005, the Group achieved a profit after tax and minority interest of RM 9 .3
Million as compared to RM 8.2 Million for the corresponding quarter last year. The better performance is owing to
equity accounting of our associate and lower tax expense for the quarter under review.
For the financial year ended 30 June 2005, the Group recorded a profit after tax and minority interest of RM 27.6 Million
as against RM 19.5 Million in the preceding year, representing a 41% improvement. All the operating divisions showed
better performance.
B2
Current Year Prospects
Amidst the signs of slowing down in the property sector, the Board remains cautiously optimistic that the Group will
perform satisfactorily in the coming financial year.
B3
Profit Forecast
Not applicable as no profit forecast was published.
B4
Tax Expense
Taxation comprises:
CURRENT QUARTER
ENDED
ENDED
30/06/2005 30/06/2004
RM '000
RM '000
Current tax expense
Prior years (over)/ under
provision
Transfer from/(to) deferred tax
(2,287)
(674)
3,277
316
4,208
(18)
11
4,201
CUMULATIVE QUARTER
ENDED
ENDED
30/06/2005
30/06/2004
RM'000
RM '000
5,418
(216)
3,401
8,603
7,726
179
859
8,764
The Group’s effective tax rate for the financial year under review is lower than the statutory tax rate mainly due to
availability of allowances and unabsorbed tax losses brought forward by certain subsidiaries which were utilized to set
off against their taxable profits.
B5
Unquoted Investment and Properties
There were no sale of unquoted investments and/or investment properties during the financial year under review except
unquoted overseas investment amounting to RM23,918,468 has been reclassified from Other Investments to Investment
in Associated Companies as the Board members have started to exercise significant influence over the associated
company. As such, the results of this associated company has been equity accounted in accordance to FRS 128 (formerly
known as MASB 12), Investments in Associates.
B6
Quoted Investment
(a)
The purchases and sales of quoted securities during the financial period under review are as follows:
RM '000
Purchase of quoted securities
Disposal of quoted securities
Sales proceeds
Cost of investments net of provision
for diminution
Profit on disposal of quoted securities
b)
534
86
86
Investment in quoted securities as at 30 June 2005:
RM '000
B7
At cost
Allowance for diminution in value
61,770
(9,182)
At carrying value/book value
52,588
At market value
36,810
Status of Corporate Proposals
No corporate proposals have been announced but not completed at the latest practical date.
B8
Group Borrowings and Debt Securities
Total Group borrowings as at 30 June 2005 are as follows:
RM '000
Current
Secured
Unsecured
71,015
36,023
107,038
Non-current
Secured
85,292
192,330
The Group does not have any foreign currency borrowing.
B9
Off Balance Sheet Financial Instruments
As at 19 August 2005, the Group does not have any financial instruments with off balance sheet risk.
B10
Changes in Material Litigation
A civil suit involving a subsidiary as reported previously has been withdrawn by both parties on 29 September 2004.
Except for the above, there is no other material litigation.
B11
Dividends
The Board of Directors is recommending a final dividend of 2% less 28% income tax per share for the financial year
ended 30 June 2005. The entitlement date of the dividend will be announced after the approval from shareholders is
obtained at the forthcoming Annual General Meeting.
The total dividend per share paid and payable todate (including the proposed final dividend) for the current financial year
is 4% less 28% tax.
B12
Basic Earnings Per Share
The calculation of basic earnings per share for the quarter and cumulative quarters are based on the net profit attributable
to ordinary shareholders of RM9.326 Million and RM27.569 Million respectively and the weighted average number of
ordinary shares outstanding during the period of 456,132,000
The diluted earnings per share figures are not shown as the conversion price of warrants are higher than the Company’s
share price at the balance sheet date.
By Order of the Board
Leong Keng Yuen
Wong Tiew Kim
Secretaries