第一章 分部报告与中期财务报告
第一节 分部报告
一、分部报告概述
《企业会计准则——分部报告》主要规范了企业分部报告的编制方法和应披露的信息，有助于保证会计信息的充分披露，满足会计信息使用者的决策需要。
二、报告分部的确定
企业在披露分部信息时，应当区分业务分部和地区分部。
（一）业务分部的确定
业务分部，是指企业内可区分的、能够提供单项或一组相关产品或劳务的组成部分。该组成部分承担了不同于其他组成部分的风险和报酬。
企业在确定业务分部时，应当结合企业内部管理要求，并考虑下列因素：
1．各单项产品或劳务的性质
2．生产过程的性质
3．产品或劳务的客户类型
4．销售产品或提供劳务的方式
5．生产产品或提供劳务受法律、行政法规的影响
（二）地区分部的确定
地区分部是指企业内可区分的、能够在一个特定的经济环境内提供产品或劳务的组成部分。该组成部分承担了不同于在其他经济环境内提供产品或劳务的组成部分的风险和报酬。 企业在确定地区分部时，应当结合企业内部管理要求，并考虑下列因素：
1．所处经济、政治环境的相似性
2．在不同地区经营之间的关系
3．经营的接近程度大小
4．与某一特定地区经营相关的特定风险
5．外汇管理规定
6．外汇风险
（三）报告分部的确定
1．重要性标准的判断
报告分部是指符合业务分部或地区分部的定义，按规定应予披露的业务分部或地区分部。报告分部的确定应当以业务分部或地区分部为基础，当业务分部或地区分部的大部分收入是对外交易收入，且满足下列条件之一的，企业应当将其确定为报告分部：
（1）该分部的分部收入占所有分部收入合计的10%或者以上。
（2）该分部的分部利润（亏损）的绝对额，占所有盈利分部利润合计额或者所有亏损分部亏损合计额的绝对额两者中较大者的10%或者以上。
（3）该分部的分部资产占所有分部资产合计额的10%或者以上。
2．低于10%重要性标准的选择
业务分部或地区分部未满足三个重要性判断标准的，可以按照下列规定进行处理：
（1）不考虑该分部的规模，直接将其指定为报告分部。在这种情况下，无论该分部是否满足10%的重要性标准，企业可以根据需要直接将其指定为报告分部。
（2）不将该分部直接指定为报告分部的，可将该分部与一个或一个以上类似的、未满足规定条件的其他分部合并为一个报告分部。对分部报告的10%的重要性测试可能会导致存在多种业务或多地区经营的企业拥有大量未满足10%数量临界线的小业务分部或地区分部，在这种情况下，如果企业没有直接将这些分部指定为报告分部的，则可以将一个或一个
以上类似的、未满足重要性标准的小分部合并成一个报告分部。
（3）不将该分部指定为报告分部且不与其他分部合并的，应当在披露分部信息时，将其作为其他项目单独披露。
3．报告分部75%的标准
企业的业务分部或地区分部达到规定的10%重要性标准确认为报告分部后，确定为报告分部的各业务分部或各地区分部的对外交易收入合计额占合并总收入或企业总收入的比重应当达到75%的比例。如果未达到75%的标准，企业必须增加报告分部的数量，将其他未作为报告分部的业务分部或地区分部纳入报告分部的范围，直到该比重达到75%。此时，其他未作为报告分部的业务分部或地区分部很可能未满足前述规定的三个10%的重要性标准，但为了使报告分部的对外交易收入合计额占合并总收入或企业总收入的总体比重能够达到75%的比例要求，也应当将其确定为报告分部。
4．垂直一体化经营下报告分部的确定
当业务分部或地区分部的大部分收入是通过与企业外部客户交易而取得时，在满足其他重要性条件的情况下，可以将该业务分部或地区分部确定为报告分部。但是，如果企业的内部管理按照垂直一体化经营的不同层次来划分，即使其大部分收入不通过对外交易取得，仍可将垂直一体化经营的不同层次确定为独立的报告业务分部。
5．为提供可比信息报告分部的确定
企业在确定报告分部时，除应当遵循相应的确定标准以外，还应当考虑不同会计期间分部信息的可比性和一贯性。对于某一分部，在上期可能满足报告分部的确定条件从而确定为报告分部，但本期可能并不满足报告分部的确定条件。此时，如果企业认为该分部仍然重要，单独披露该分部的信息能够更有助于报表使用者了解企业的整体情况，则不需考虑该分部的规模，仍应当将该分部确定为本期的报告分部。
三、分部信息的披露
（一）主要报告形式下分部信息的披露
在主要报告形式情况下，不论作为报告分部的是业务分部还是地区分部，都应当按规定披露下列分部信息：
1．分部收入
分部收入包括归属于分部的对外交易收入和对其他分部交易收入。主要由可归属于分部的对外交易收入构成，通常为营业收入。企业在披露分部收入时，对外交易收入和对其他分部交易收入应当分别披露。
分部收入通常不包括下列项目：（1）利息收入（包括因预付或借给其他分部款项而确认的利息收入）和股利收入，但分部的日常活动是金融性质的除外；（2）营业外收入；（3）处置投资产生的净收益，但分部的日常活动是金融性质的除外；（4）用权益法核算的长期股权投资在被投资单位实现的净利润中应享有的份额，但分部的日常活动是金融性质的除外。
2．分部费用
分部费用包括可以归属于分部的对外交易费用和对其他分部交易费用。主要由可归属于分部的对外交易费用构成，通常包括营业成本、营业税金及附加、销售费用等。企业在披露分部费用时，折旧费、摊销费以及其他重大的非现金费用应当单独披露。
分部费用通常不包括下列项目：（1）利息费用（包括因预收或向其他分部借款而确认的利息费用），但分部的日常活动是金融性质的除外；（2）营业外支出；（3）处置投资发生的净损失，但分部的日常活动是金融性质的除外；（4）采用权益法核算的长期股权投资在被投资单位发生的净损失中应承担的份额，但分部的日常活动是金融性质的除外；（5）所得税费用；（6）与企业整体相关的管理费用和其他费用。
3．分部利润（亏损）
分部利润（亏损）指分部收入减去分部费用后的余额。因此，不属于分部收入的总部的收入和营业外收入等，以及不属于分部费用的所得税、营业外支出等，在计算分部利润（亏损）时不得作为考虑的因素。从这个意义上说，分部利润（亏损）与企业的利润（亏损）总额或净利润（净亏损）包含的内容不同。企业在披露分部信息时，分部利润（亏损）应当单独进行披露。如果企业需要提供合并财务报表的，分部利润（亏损）应当在调整少数股东损益前确定。
4．分部资产
分部资产包括企业在分部的经营中使用的、可直接归属于该分部的资产，以及能够以合理的基础分配给该分部的资产。分部资产的披露金额应当按照扣除相关累计折旧或摊销额以及累计减值准备后的金额确定，即按照分部资产的账面价值来确定。具体披露分部资产总额时，当期发生的在建工程成本总额、购置的固定资产和无形资产的成本总额，应当单独披露。对于不属于任何一个分部的资产，应当作为其他项目单独披露。
5．分部负债
分部负债，是指分部经营活动形成的可归属于该分部的负债，不包括递延所得税负债。与分部资产的确认条件相同，分部负债的确认也应当符合下列两个条件：一是可直接归属于该分部；二是能够以合理的基础分配给该分部。
（二）次要报告形式下分部信息的披露
1．采用业务分部作为主要报告形式下次要信息的披露
分部信息的主要报告形式是业务分部的，企业应当就次要报告形式披露下列信息：（1）对外交易收入占企业对外交易收入总额10%或者以上的地区分部，以外部客户所在地为基础披露对外交易收入；（2）分部资产占所有地区分部资产总额10%或者以上的地区分部，
以资产所在地为基础披露分部资产总额。
2．采用地区分部作为主要报告形式下次要信息的披露
分部信息的主要报告形式是地区分部的，企业应当就次要报告形式披露下列信息：（1）对外交易收入占企业对外交易收入总额10%或者以上的业务分部，应当披露对外交易收入；
（2）分部资产占所有业务分部资产总额10%或者以上的业务分部，应当披露分部资产总额。
第一章 分部报告与中期财务报告
第二节 中期财务报告
一、中期财务报告概述
中期财务报告，是指以中期为基础编制的财务报告。“中期”，是指短于一个完整的会计年度（自公历1月l日起至12月31日止）的报告期间，它可以是一个月、一个季度或者半年，也可以是其他短于一个会计年度的期间，如1月1日至9月30日的期间等。因此，中期财务报告包括月度财务报告、季度财务报告、半年度财务报告，也包括年初至本中期末的财务报告。
二、中期财务报告的内容
（一）中期财务报告的构成
中期财务报告准则规定，中期财务报告至少应当包括以下部分：（1）资产负债表；（2）利润表；（3）现金流量表；（4）附注。
（二）中期财务报告应遵循的原则
1．遵循与年度财务报告相一致的会计政策原则。
2．遵循重要性原则。
重要性程度的判断应当以中期财务数据为基础，而不得以预计的年度财务数据为基础。
这里所指的“中期财务数据”，既包括本中期的财务数据，也包括年初至本中期末的财务数据。
（三）中期合并财务报表和母公司财务报表的编报要求
企业上年度编制合并财务报表的，中期期末应当编制合并财务报表。上年度财务报告除了包括合并财务报表，还包括母公司财务报表的，中期财务报告也应当包括母公司财务报表。上年度财务报告包括了合并财务报表，但报告中期内处置了所有应纳入合并范围的子公司的中期财务报告只需要提供母公司财务报表，但上年度比较财务报表仍应当包括合并财务报表，上年度可比中期没有子公司的除外。
（四）比较财务报表编制要求
1．本中期末的资产负债表和上年度末的资产负债表。
2．本中期的利润表、年初至本中期末的利润表以及上年度可比期间的利润表。其中，上年度可比期间的利润表包括：上年度可比中期的利润表和上年度年初至上年可比中期末的利润表。
3．年初至本中期末的现金流量表和上年度年初至上年可比中期末的现金流量表。
（五）中期财务报告附注的编制要求
1．中期财务报告附注编制要求
为了全面反映企业财务状况、经营成果和现金流量，中期财务报告附注应当以年初至本中期末为基础编制，对于理解本中期财务状况、经营成果和现金流量有关的重要交易或者事项，也应当在附注中作相应披露。
2．中期财务报告附注披露内容
三、中期财务报告的确认和计量
（一）中期财务报告的确认与计量的基本原则
1．中期会计要素的确认和计量原则应当与年度财务报告相一致。
2．中期会计计量应当以年初至本中期末为基础。
3．中期采用的会计政策应当与年度财务报告相一致，不得随意变更会计政策。
（二）季节性、周期性或者偶然性取得收入的确认和计量
企业取得季节性、周期性或者偶然性收入，应当在发生时予以确认和计量，不应当在中期财务报表中预计或者递延，但会计年度末允许预计或者递延的除外。
（三）会计年度中不均匀发生的费用的确认与计量
企业在会计年度中不均匀发生的费用，应当在发生时予以确认和计量，不应在中期财务报表中预提或者待摊，但会计年度末允许预提或者待摊的除外。
（四）中期会计政策变更的处理
企业在中期发生了会计政策变更的，应当按照《企业会计准则——会计政策、会计估计变更和差错更正》规定处理，并在财务报告附注中作相应披露。会计政策变更的累积影响数能够合理确定、且涉及本会计年度以前中期财务报表相关项目数字的，应当予以追溯调整，视同该会计政策在整个会计年度一贯采用；同时，上年度可比中期财务报表也应当作相应调整。
第二篇：20xx年中期财务报告
2
????????????????????????????????????????????????????????????????????????????????????????????????????????????CEPA??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????26%????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????7????8??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????2003??9??30????6??????????????????????6.78????????????????????????????7.2??????????????????6.19????????????????????????????1????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????42%??HIGHLIGHTS?Group results significantly impacted by SARS (Severe AcuteRespiratory Syndrome).?Steady growth in information systems turnover?Future Strategic marketing efforts to capitalize onopportunities in China arising from CEPA (Closer EconomicPartnership Arrangement)OVERVIEWAs a result of over stock caused by SARS (Severe AcuteRespiratory Syndrome) and the cut-throat price competitionafter SARS, the Group’s revenue and profitability wereimpacted. Coupled with grant for subsidies to customers andthe obsolete inventories incurred by the Group, a loss wasrecorded for the period under review.During the period under review, the Group recorded a decreaseof approximately 26% in turnover due to SARS. Our film andD&P service businesses were also affected by the fiercecompetition resulting from price cuts by parallel imports anddifferent branded products, particularly during the SARS period.Despite a steady sales growth in July and August, the losscaused by SARS could not be recovered.However, given the enormous growth potential of the Chinamarket, we remain confident in the long-term prospects of theGroup there.MANAGEMENT DISCUSSION AND ANALYSISThe Group’s consolidated turnover for the six months ended 30September 2003 was HK$678 million, and net loss attributableto shareholders was HK$72 million. Loss per share was HK6.19cents, with an interim special dividend of HK1 cent declared.Imaging SystemsThe imaging systems segment includes businesses related tophotographic films, motion picture films, digital cameras,electronic imaging equipment, magnetic audiovisual mediaproducts, and accounted for 42% of the Group’s total turnoverduring the period under review.
??????????????????????????????????????????????39%??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
????????????????????????????????????????????????????????????????????????????????????????????????????????????????15%????????????????????????????????????????????????(CEPA)??????????????????????????????????????????????????
????????
??????????????????????????????????????????????????????????19%????????????????????????????????????38%??
????????????????????????????????????????????????????????????????????????????????????(Frontier)????????????????????????????????????????????????????????????????????????????????????????????????????(Frontier)????????????50????????????????????
????????
????????????????????????????????????????????????????????????????????????????26%??
??????????????????????????????????????????27%??????????????????????????????X??????????????????????????????????????????25%??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Affected by SARS, the total segment turnover decreased by39%. Sales of photographic films and digital cameras dropped,due to the digitalization trend and the delayed launch of newdigital camera models by Fujifilm Japan, coupled with severeprice cuts of different branded products subsequent to theoutbreak of SARS.Led by the booming film and advertising industry in China, anincreased number of Taiwan and Hong Kong productioncompanies filmed on the mainland. This helped drive salesgrowth in professional movie films in China by 15% during theperiod. With the commencement of CEPA (Closer EconomicPartnership Arrangement) next year, we believe this steadygrowth in demand for movie films will continue.Photofinishing SystemsThis segment includes products such as photographic paper,chemicals and photo-finishing equipment, and accounted for19% of the Group’s total turnover. Total sales of this segmentrecorded a decrease of 38%, compared to the correspondingperiod last year.The outbreak of SARS impacted tourism which is key to oursales, despite this, Fujifilm Digital Minilab Frontier continued itsexpansion pace. Given the prevailing digitalization trends, ourbusinesses in imaging and information sectors are in a growthsituation. The Frontier system has been installed in more than50 cities in China, Hong Kong and Macau.Information SystemsActivities in this segment include medical imaging systems,graphic art products and data storage media. This segmentaccounted for 26% of the Group’s total turnover.During the period under review, turnover for the informationsystems segment was up 27% compared to the same period lastyear, primarily as a result of the SARS outbreak. The surgingdemand for X-ray films, together with the digitalization ofmedical systems whose sales increased by over 25% versus thecorresponding period last year, have created a strong demandin this sector of business.Fuji Medical Products Ltd., a subsidiary of the Group, has soughtbusiness expansion to provide value-added services throughstrategic development with leading market players in China,
Hong Kong and Macau.
3
Interim Financial Report 20032003????????????????4??????????????????????????????????X????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????29%??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????13%??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????63????????76????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????(FDi)????????????????????????????????????????????????????????????????????????????????????10%??????????40%??????????????????????????????????????????????????7.2??????????????????????????6.78??????The introduction of Fujifilm’s dry imaging technology as areplacement for the conventional X-ray function is also a majorbreakthrough in terms of technology advancement. Thisenvironmentally friendly and cost effective technology deliverssuperb image quality and stability with no chemical or solidwaste, it will further accelerate the market demand of therelevant medical products.In addition, Fuji graphic art products recorded a 29% growth insales during the period. Given the continued demand for qualitygraphic art products, the Group will further expand into theChina market.Aiming to provide marketing, distribution and after-salesservices of the graphic art products in China, Hong Kong andMacau, we established a wholly-owned subsidiary called ???????????????????????????????? in Shanghai. Showrooms and anafter-sales service centre have also been set up in Shanghai,with more branches to be opened later in key cities.Retail OperationsThe retail front accounted for 13% of the Group’s total turnover.The Fotomax chain benefits from a clear position as thepremium, high-quality photo and digital imaging retail chain.During the period under review, Fotomax expanded strategicallyfrom 63 shops to 76 in the Hong Kong region. In addition toHong Kong, the Group has also leveraged Fotomax’s strongbrand and reputation in the China market. The Group is well-covered in key cities in China, including Beijing, Shanghai,Guangzhou and Shenzhen.Sales of digital cameras contributed significantly to the growthin turnover. With the popularity of digital cameras, an increasednumber of digital camera users will employ our FDi service. As aresult, this raised the demand for digital output from 10% toover 40% compared to the same period last year.Loss Attributable to ShareholdersDuring the period, the Group’s net loss attributable toshareholders was HK$72 million with a consolidated turnover ofHK$678 million.
????????
????2003??9??30????6????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
????????
????????2003??9??30??????????????????????????3.76????????????????????????
????????????????????????3.71??????????????????2.22??????
????
??????????????????????7%??????????????????????????????????????????????????????????????????????????????
????????????????????????CEPA??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
????
????????????2004??2??6????????????????????????????????????????2003??9??30??????????????????????????????1??????????????2004??2??24??????????????????????????????????????????????????MarketingFor the six months ended 30 September 2003, the Group hasengaged its brand building strategy to support businessexpansion. Aiming to sustain its brand awareness, the Grouphas continued to sponsor and participate in different kinds ofpublic activities, including photo contest, tournaments,seminars, exhibitions, trade shows, TV programs and jointpromotions to reach our target customers in China, Hong Kongand Macau.Financial ResourcesThe Group’s cash and bank balances as at 30 September 2003were approximately HK$376 million with a zero gearing ratio.Trade receivables of HK$371 million were recorded for theperiod, while inventory was HK$222 million.OUTLOOKWith an average annual growth of over 7%, China is the newengine for the world’s economy. The Group remains confidentand optimistic about the long-term growth potential of theChina market.The recently signed CEPA between Hong Kong and Chinaprovides us with tremendous opportunities that we cancapitalize on. While focusing on our existing business strategy,the Group will continue to identify investment options andstrategic partnerships to accelerate our development in China.The strong tourism growth in China and the “Individual VisitScheme” which allows individual mainland visitors to flock toHong Kong are positive factors for the Group. Our businesseswill continue to ride on the growth momentum, particularly theinformation systems, digital products and services sectors andretail operations, and achieve promising results in future.DIVIDENDSThe directors recommend the payment of an interim specialdividend of HK1 cent per ordinary share in respect of the periodended 30 September 2003 to shareholders on the register ofmembers on 6 February 2004 (Friday). The dividend will be payableon or before 24 February 2004 (Tuesday). This recommendation has
been incorporated in the financial statements.
5
6Interim Financial Report 20032003????????????????????????????????????CLOSURE OF SHARE REGISTER??????????2004??2??3??????????????2004??The register of members will be closed from 3 February 20042??6??????????????????????????????????????(Tuesday) to 6 February 2004 (Friday), both days inclusive,??????????????????????????????????????during which period no transfer of shares will be registered. In??????????????????????????????????????order to qualify for the proposed interim special dividend, all????2004??2??2????????????????4??30????transfers accompanied by the relevant share certificates must be??????????????????????????????????????lodged with Tengis Limited, the Hong Kong Branch Registrars of????????????????????????????????56????the Company, at G/F, BEA Harbour View Centre, 56 Gloucester????????????????????Road, Wanchai, Hong Kong not later than 4:30 pm on 2February 2004 (Monday).??????????????????????????????????DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND????????????????????SHORT POSITIONS IN SHARES, UNDERLYING SHARES ORDEBENTURES??2003??9??30????????????????????????As at 30 September 2003, the interests of the directors and??????????????????????????????????????chief executive in the shares, underlying shares or debentures of??????????????????????????????????????the Company or any of its associated corporations as recorded??????????????????????????????????352????in the register required to be kept by the Company pursuant to??????????????????????????????????????section 352 of the Securities and Futures Ordinance (the “SFO”),??????????????????????????????????????or as otherwise notified to the Company and The Stock??????????????????????????????????????Exchange of Hong Kong Limited (the “Stock Exchange”)pursuant to the Model Code for Securities Transactions byDirectors of Listed Companies, were as follows:(1)??????????????????????(1)Long positions in shares of the CompanyPercentage ofshareholdingName ofNature ofNumber ofin the CompanydirectorinterestNotesCapacityShares????????????????????????????????????????????????????Sun Tai LunPersonal(i) & (vi)Beneficial owner2,000,000DennisCorporate(ii)Beneficiary of a trust11,242,000and others(iii)Founder700,034,214??????????????????????????????????????????????Ng Yuk Wah713,276,21461.28EileenPersonal(iv) & (vi)Beneficial owner500,0000.04????????????????????Tang Kwok TongSimonPersonal(v) & (vi)Beneficial owner800,0000.06????????????????????
(2)????????????????????????(2)Long position in shares of the Associated Corporations
Percentage of
Name ofshareholding
Name ofAssociatedNumber ofin the AssociateddirectorCorporationNotesCapacitySharesCorporations????????????????????????????????????????????????????
??????
Sun Tai LunSearich Group(ii)Beneficiary of25
DennisLimiteda trust100100%??????-do-??????????
(iii)Founder of a trust75}
??????????
Sun Tai LunFine Products(iii)Founder of a trust103,000,000100%DennisLimited??????????
??????
??????Notes:
(i)????????????1,000,000??????????????(i)The number of shares includes 1,000,000 shares and the options to
1,000,000??????????????????????acquire 1,000,000 shares in the Company.
(ii)??????????????11,242,000????????????????(ii)Sun Tai Lun Dennis was interested in a total of 11,242,000 shares
????????Dago Corporation??????????Dagodirectly held by Dago Corporation, which was incorporated in theCorporation??????????????????????????British Virgin Islands and was owned by Ansbacher (BVI) Limited inAnsbacher (BVI) Limited??????????????????its capacity as the trustee of The Dennis Family Trust, a trust
??????????????????????The Dennis Familyestablished for the benefit of Sun Tai Lun Dennis and his familyTrust??????????????????????Dagomembers. Dago Corporation also held 25% of the share capital ofCorporation??????Searich Group Limited????Searich Group Limited.
??????25%??
(iii)??????????????????The Sun Family Trust??(iii)In addition, Sun Tai Lun Dennis was deemed to be interested in
??????????????????Fine Products Limited??700,034,214 shares held by Fine Products Limited by virtue of his??????????????????Searich Group Limited??being the founder of The Sun Family Trust which held the entire75%??Fine Products Limited??????????????issued share capital of Fine Products Limited, 75% of Searich Group??????????Fine Products Limited??????Limited was held by Fine Products Limited. Details of the interest of700,034,214??????????????Fine ProductsFine Products Limited and Searich Group Limited can be found inLimited??Searich Group Limited????????????the section of “Substantial Shareholders” below.
??????????????????????????
(iv)????????????250,000??????????????(iv)The number of shares includes 250,000 shares and the options to
250,000??????????????????????acquire 250,000 shares in the Company.
7
Interim Financial Report 20032003????????????????8(v)????????????400,000??????????????400,000??????????????????????(vi)??????????????????????????????????????????????????????????????????????????????2003??9??30????????????????????????????????????????????????????????????????????????????????????????????????XV??????????????????????????????????????????????????????????????????????XV????7??8????????????????????????????????????????????????????????????????????????????????????????????????????????????????352??????????????????????????????????????????????????????????????????????????????????????????2003??9??30????????????????????????336??????????????????????????????????????????????????????????????????????????????(v)The number of shares includes 400,000 shares and the options toacquire 400,000 shares in the Company.(vi)Details of the directors’ interests in the share options of theCompany are separately disclosed in the section “Share OptionScheme” below.Save as disclosed above, as at 30 September 2003, none of theDirectors and the chief executive of the Company and theirrespective associates had any interest or short positions in theshares, underlying shares and debentures of the Company orany of its associated corporation (within the meaning of Part XVof the SFO) which had to be notified to the Company and theStock Exchange pursuant to Divisions 7 and 8 of Part XV of theSFO (including interests and short positions which he/she wastaken or deemed to have under such provisions of the SFO) orwhich were required, pursuant to Section 352 of the SFO, to beentered in the register referred to therein or which wererequired, pursuant to the Model Code contained in the ListingRules, to be notified of the Company and the Stock Exchange.SUBSTANTIAL SHAREHOLDERSAs at 30 September 2003, the following persons had interestsor short positions in the shares and the underlying shares of theCompany as recorded in the register of interests required to bekept by the Company under Section 336 of the SFO:
(1)????????????????????????????????(1)Long position of substantial shareholders who were
????????????????10%????????????entitled to exercise or control the exercise of 10% or
??????????more of the voting power at any general meeting of the
Company
Percentage of
Name ofNumber ofShareholdingshareholderNotesCapacitySharesin the Company??????????????????????????????????????
??????
Sun Tai Lun DennisBeneficial owner2,000,000
Beneficiary of a trust11,242,000
Founder700,034,214
????????????????
??????????
??????713,276,21461.28
Fine Products Limited1 & 2Beneficial owner &700,034,21460.15
interest of controlled
corporation
??????????????????????????
Searich Group Limited1 & 2Interest of controlled600,034,21451.56
corporation
??????????????
Ansbacher (BVI)1 & 2Trustee711,276,21461.12Limited??????
Tang Sau Ying Betty2 & 3Interest of spouse713,276,21461.28??????????????
9
10Interim Financial Report 20032003????????????????(2)????????????????????????????????(2)Long position of other persons who were entitled to????????????????5%??????????????exercise or control the exercise of 5% or more of the????????voting power at any general meeting of the CompanyPercentage ofName ofNumber ofShareholdingshareholderNotesCapacitySharesin the Company????????????????????????????????????????????The China RetailBeneficial owner101,802,6328.74Fund, LDC??????????Fung Kwok Lun William4Interest of controlled corporation70,000,0006.01????????????????????Li Fung (Retailing) LimitedBeneficial owner70,000,0006.01??????????????????????????????Li Fung (1937) LimitedInterest of controlled corporation70,000,0006.01????(1937)??????????????????????King Lun Holdings LimitedInterest of controlled corporation70,000,0006.01??????????????J.P. Morgan Trust Company5Trustee70,000,0006.01(Jersey) Limited????????????Notes:1??????????????????100,000,000????????1100,000,000 shares representing 8.59% of the Company’s shares in8.59%??Fine Products Limited????????????issue were directly owned by Fine Products Limited. The remaining??600,034,214????????Searich Group600,034,214 shares were owned by Searich Group Limited, inLimited????????Fine Products Limited??????which Fine Products Limited held 75% of its issued share capital.????????????????75%??Fine ProductsFine Products Limited was incorporated in the British Virgin IslandsLimited??????????????????????????and was owned by Ansbacher (BVI) Limited in its capacity as theAnsbacher (BVI) Limited??The Sun Familytrustee of The Sun Family Trust.Trust????????????????????2??????????????????????????????????2Such interest has been included as the interest of Sun Tai LunDennis.3??????????????????????????????????????3Tang Sau Ying was deemed to be interested in 713,276,214 shares713,276,214????????????????of the Company through the interests of her spouse, Sun Tai LunDennis.
4??????????????????????????????????????
????????????????????????????????(1937)????
??????King Lun Holdings Limited??
5J.P. Morgan Trust Company (Jersey) Limited
????????????????????????????????????????
????????????????????????(1937)??????????
King Lun Holdings Limited??
????????????????????2003??9??30??????
??????????????????????????????????????
??????????????????????????????????????
????????????????????????????XV????2??3
??????????????????????????????????????
????????????336????????????????????????
??????????
??????????????????????????????????????
????????????????????????????????????
????????????
??????????2002??8??30????????????????
??????????????????????????????????????
????????????????????????????17????????
??????????????????????????????????????????
??1994??8??31??????????????????????????
????????????????????????????????????????
??????????????????????????????????????
??????????????????????????????????????
????????
????????????????????????????????????????
????????????????????????????????????????
??????????????????????????????????????
??????????????????????????????????????
??????????????????????????????????????
??????????????????????????????????????
????????????????????????????????????
??????????????????????????????????????
??????????????4The interests of Fung Kwok Lun William are held via a chain ofcontrolled corporations, namely Li Fung (Retailing) Limited, Li Fung(1937) Limited and King Lun Holdings Limited.5The interests of J.P. Morgan Trust Company (Jersey) Limited are heldvia a chain of controlled corporations, namely Li Fung (Retailing)Limited, Li Fung (1937) Limited and King Lun Holdings Limited.Saved as disclosed above, as at 30 September 2003, there wasno other person who was recorded in the register of theCompany as having interests or short positions in the shares orunderlying shares of the Company which would fall to bedisclosed to the Company under the provisions of Divisions 2and 3 of Part XV of the SFO, or which were recorded in theregister required to be kept by the Company under Section 336of the SFO.SHARE OPTION SCHEMEThe Company operates a share option scheme (the “Scheme”)for the purpose of providing incentives and rewards to eligibleparticipants who contribute to the success of the Group’soperations.In the Company’s annual general meeting held on 30 August2002, an ordinary resolution was passed by the Company’sshareholders for the adoption of a new share option scheme(the “New Scheme”) in compliance with the amended Chapter17 of the Listing Rules and the termination of the Company’sshare option scheme (the “Old Scheme”) adopted on 31 August1994. Upon termination of the Old Scheme, no further optionscan be granted thereunder but all options granted prior to suchtermination shall continue to be valid and exercisable inaccordance with the provisions of the Old Scheme.Eligible participants of the Scheme include the Company’sdirectors, including independent non-executive directors, otheremployees of the Group, suppliers of goods and services to theGroup, customers of the Group, any entity in which the Groupholds any equity interest, any agent, advisors, consultant,strategist, contractor, sub-contractor, expert that providesresearch, development or other technological support to theGroup or any holder of any securities issued by any member ofthe Group any shareholder of any member of the Group, and
any entity in which the Group holds any equity interest.
11??
Interim Financial Report 20032003????????????????12??????????????????????????????????????????????????????2002??8??30??????????????????????????????????????????10????????????????????????????????????????????????????????????????????????????????????????????????????10%????2003??9??30??????????????????????????????????????????????2,110,000????????????????????????????0.18%????????????????????????????????????????????????????????????????????????????????????????????????????1%??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????0.1%??????????????????????????????????????????????????????5,000,000??????????????????????????????????????????????????????????????????????28????????????????????????????????????1??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????(i)??????????????????????????????????????????????????????????(ii)??????????????????????????????????????????????????????????????(iii)??????????????????????????????????????????????????????????????????????SHARE OPTION SCHEME (Continued)During the period, no share options were granted under theNew Scheme. The New Scheme became effective on 30 August2002 and, unless otherwise cancelled or amended, will remainin force for 10 years from that date.The maximum number of unexercised share options currentlypermitted to be granted under the New Scheme is an amountequivalent, upon their exercise, to 10% of the shares of theCompany in issue at any time.As at 30 September 2003, the number of shares issuable undershare options granted under the Old Scheme was 2,110,000,which represented approximately 0.18% of the Company’sshares in issue as at that date. The maximum number of sharesissuable under share options to each eligible participant in theScheme within any 12-month period is limited to 1% of theissued capital of the Company for the time being. Any furthergrant of share options in excess of this limit is subject toshareholders’ approval in a general meeting.Share options granted to a director, chief executive orsubstantial shareholder of the Company, or to any of theirassociates, are subject to approval in advance by theindependent non-executive directors. In addition, any shareoptions granted to a substantial shareholder or an independentnon-executive director of the Company, or to any of theirassociates, in excess of 0.1% of the shares of the Company inissue at any time or with an aggregate value (based on the priceof the Company’s shares at the date of the grant) in excess ofHK$5 million, within any 12-month period, are subject toshareholders’ approval in advance in a general meeting.The offer of a grant of share options may be accepted within 28days from the date of the offer. A consideration of HK$1 ispayable on acceptance of the offer of grant of an option. Theexercise period of the share options granted is determinable bythe directors, and commences after a certain vesting period andends on a date which is not later than ten years from the date ofthe offer of the share options.The exercise price of the share options is determinable by thedirectors, but may not be less than the higher of (i) the StockExchange closing price of the Company’s shares on the date ofthe offer of grant, which must be a trading date; (ii) the averageStock Exchange closing price of the Company’s shares for thefive trading days immediately preceding the date of the offer ofgrant; and (iii) the nominal value of the Company’s shares.Share options do not confer rights on the holders to dividendsor to vote at shareholders’ meetings.
????????????????SHARE OPTION SCHEME (Continued)
??????????????????????????????????The following share options were outstanding under the Old
Scheme during the period:
Number of share optionCompany’s shares***
????????????????????***
Exercise
priceAt grantAt exercise
LapsedExerciseof sharedate ofdate of
Name or categoryAtduringAtDate of grantperiod ofoptions**optionsoptionsof participant1 Aprilthe period30 Septemberof share options*share options????????????????????????????????????4??1??????????9??30????????????????????**??????????????????2003????2003????????*??????HK$HK$????Directors
??????Sun Tai Lun Dennis1,000,000–1,000,00021/6/200021/6/2000 - 30/6/20040.75680.97–??????Ng Yuk Wah Eileen250,000–250,00031/1/200031/1/2000 - 29/2/20040.80480.95–??????Tang Kwok Tong Simon400,000–400,00021/6/200021/6/2000 - 30/6/20040.75680.97–??????????Other employees,
????in aggregate460,000–460,00031/1/200031/1/2000 - 29/2/20040.80480.95–
2,110,000–2,110,000
??????????????????????????????????????No theoretical value of the share option is disclosed as no share????options were granted during the period.
*????????????????????????????????????????*The vesting period of the share options is from the date of the grant
??????until the commencement of the exercise period.
**????????????????????????????????????????**The exercise price of the share options is subject to adjustment in
????????????????????????????the case of rights or bonus issues, or other similar changes in the
Company’s share capital.
***????????????????????????????????????????***The price of the Company’s shares disclosed as at the date of the
????????????????????????????????????????grant of the share options is the Stock Exchange closing price on????????????????????????????????????????the trading day immediately prior to the date of the grant of the????????????????????????????????????????options. The price of the Company’s shares disclosed as at the date????????????????????????????????????????of the exercise of the share options is the weighted average of the??????????????????????????????????Stock Exchange closing prices over all of the exercises of options
within the disclosure category. As no share option was exercised or
cancelled during the period, no disclosure of such information was
made.
13
Interim Financial Report 20032003????????????????14??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????2003??9??30????6??????????????????????????????????????????????????????????14??????????????????????????????????????????????????????????2003??12??10??PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIESNeither the Company, nor any of its subsidiaries purchased, soldor redeemed any of the Company’s listed securities during theperiod.CODE OF BEST PRACTICENone of the Directors is aware of information that wouldreasonably indicate that the Company is not, or was not for anypart of the accounting period for the six months ended 30September 2003 in compliance with the Code of Best Practice asset out in Appendix 14 of the Rules Governing the Listing ofSecurities on the Stock Exchange of Hong Kong Limited, exceptthat the independent non-executive directors were notappointed for specific terms.ON BEHALF OF THE BOARDDennis Sun Tai LunChairman and Managing DirectorHong Kong, 10 December 2003