(CWO.L) China Wonder Ltd Buy/Sell

RNS Number : 9472Y China Wonder Limited 14 September 2009

CHINA WONDER LIMITED

(China Wonder Limited "the company" and its subsidiary companies "the Group")

Interim Results for the six months ended 30 June 2009 (unaudited)

I am pleased to report the Group's results for the six months to 30 June 2009 which are set out below. The figures show basic earnings per share of 0.85 pence compared with 1.10 pence for the comparable period last year.

The Group's sales revenue for the period was £2,110,143, an increase of £366,280 (or 21%) when compared to the £1,743,863 of sales for the same period in 2008. The Group's net income for the period was £152,911, a decrease of £44,572 (or 22.6%) when compared to the same period in 2008.

The Group is meeting the increased working capital requirements resulting from additional sales from its own resources and existing banking facilities.

Despite the continuing background of the global economic crisis, the Group has achieved the significant improvement in trading that was anticipated in my last Chairman's statement. This demonstrates the longer term resilience of the Group's products and technology and management's ability to respond quickly to changes in trading conditions. As the Chinese economy recovers, the Board believe that the Group will continue to develop and provide growing returns to shareholders.

In line with the Group's development strategy, the Board continue to actively seek expansion opportunities both in the People's Republic of China and the United Kingdom.

MARK CHAPMAN

Chairman

For more information please contact:

Mark Chapman China Wonder Limited +44 (0) 1483 892 130
Daniel Bate WH Ireland Limited +44 (0) 161 832 2174

CONSOLIDATED INCOME STATEMENT

for the six months ended 30 June 2009

Six months ended Six months ended Year ended 31
30 June 2009 30 June 2008 December 2008
Unaudited Unaudited Audited
Note
£ £ £
REVENUE 2,110,143 1,743,863 2,611,329
Cost of sales (1,268,426) (1,168,588) (1,542,349)
Sales tax (796) (100) (901)
GROSS PROFIT 840,921 575,175 1,068,079
OTHER OPERATING INCOME - 349 5,359

Distribution expenses (158,873) (96,127) (196,297)
Administrative expenses (454,119) (220,371) (831,505)
(612,992) (316,498) (1,027,802)

PROFIT FROM OPERATIONS 227,929 259,026 45,636
Non-operating expense (4,489) - -
Non-operating income - - 94,423
Finance income 2,476 983 3,510
Finance costs (5,863) (6,463) (14,902)

PROFIT BEFORE TAX 220,053 253,546 128,667
Taxation (64,444) (56,063) 45,365
Minority shareholder's profit (2,698) - (2,658)

ATTRIBUTABLE TO EQUITY HOLDERS 152,911 197,483 171,374

Basic 2 0.85p 1.10p 0.95p
Diluted 2 0.84p 1.08p 0.95p

for the six months ended 30 June 2009

Six months ended Six months ended Year ended
30 June 2009 30 June 2008 31 December 2008
Unaudited Unaudited Audited
£ £ £
Exchange differences on (505,822) (51,956) 586,059

translation of foreign operations
Net (expense)/income (505,822) (51,956) 586,059

recognised directly in equity
Profit for the period 152,911 197,483 171,374
TOTAL RECOGNISED INCOME AND (352,911)

OF THE PARENT 145,527 757,433

CONSOLIDATED BALANCE SHEET

at 30 June 2009

30 June 2009 30 June 2008 31 December 2008
Unaudited Unaudited Audited
£ £ £

Non-current assets
Property, plant and equipment 851,188 789,209 999,786
Long term prepaid expenses - - 6,415
Goodwill 1,356,705 1,356,705 1,356,705
Intangible assets 80,249 69,101 92,448
Deferred tax asset 46,346 7,544 65,547
2,334,488 2,222,559 2,520,901

Current assets
Inventories 1,143,042 988,097 1,642,290
Trade and other receivables 1,441,945 1,897,263 1,676,716
Tax assets - 11,009 29,854
Cash and cash equivalents 991,532 237,745 334,666
3,576,519 3,134,114 3,683,526

TOTAL ASSETS 5,911,007 5,356,673 6,204,427

Current liabilities
Short-term loan (150,041) (73,240) (150,394)
Trade and other payables (1,544,190) (1,660,831) (2,122,771)
Tax liabilities (26,825) - -
(1,721,056) (1,734,071) (2,273,165)

Non-current liabilities (617,818) - -
NET ASSETS 3,572,133 3,622,602 3,931,262

Share capital 450,000 450,000 450,000
Share premium 1,935,980 1,935,980 1,935,980
Statutory reserves 160,995 185,253 160,995
Translation reserve 159,898 131,617 665,720
Retained earnings 797,865 869,944 644,954
Minority interests 67,395 49,808 73,613
TOTAL EQUITY 3,572,133 3,622,602 3,931,262

CONSOLIDATED CASH FLOW STATEMENT

for the six months ended 30 June 2009

Six months ended Six months ended Year ended
30 June 2009 30 June 2008 31 December 2008
Unaudited Unaudited Audited
£ £ £
PROFIT BEFORE TAX 220,053 253,546 128,667
Depreciation of property, 48,599 22,500 99,316

plant and equipment
Amortisation of intangibles 1,132 1,049 2,857
Provision for warranty 38,303 - (13,791)
Interest paid 5,863 6,463 14,902
Interest received (2,476) (984) (3,510)
Loss disposal of property 5,598 - 787

,plant and equipment
OPERATING CASH FLOW BEFORE 229,228
WORKING CAPITAL 317,072 282,574

Decrease/(Increase) in 499,248 (286,430) (958,228)

inventories
Decrease/(increase) in 234,771 (861,506) (685,197)

receivables
(Decrease)/increase in (578,581) 611,448 1,062,172

payables
Tax paid (7,766) (120,608) (73,255)

BY OPERATING ACTIVITIES 464,744 (374,522) (425,280)

Purchase of property, plant (5,619) (118,835) (123,136)

and equipment
Additions to intangible assets - (413) -
Additions of long term prepaid - - (6,415)

expenses
Interest received 2,476 984 3,510
Proceeds on sale of property, - - 2,593

plant and equipment
Net cash used in investing (3,143) (118,264) (123,448)

activities

Issue of ordinary share - 152,633 -

capital
Investment from minority - - -

interests
Interest paid (5,863) (6,463) (14,902)
Proceeds from bank borrowings 617,818 4,154 73,435
Repayment of bank borrowings - - (116,875)
Net cash from financing 611,955 150,324 (58,342)

activities

EQUIVALENTS 1,073,556 (342,462) (607,070)

Cash and cash equivalents at
the beginning of the period 334,666 609,391 609,391
Effect of foreign exchange (416,690) (29,184) 332,345

differences

THE END OF THE PERIOD 991,532 237,745 334,666

NOTES TO THE FINANCIAL STATEMENTS

for the six months ended 30 June 2009

1. ACCOUNTING POLICIES

Basis of accounting

The interim financial information for the six months ended 30 June 2009

and that for the equivalent period in 2008 is unaudited. The comparatives

for the full year ended 31 December 2008 are not the Group's full

statutory accounts for that year. A copy of the statutory accounts for

that year has been delivered to the Jersey Financial Services Commission.

The auditors' report on those accounts was unqualified, did not include

references to any matters to which the auditors drew attention by way of

emphasis without qualifying their report and did not contain a statement

under Article 111 of the Companies (Jersey) Law 1991.

The interim financial information has been prepared in accordance with

the accounting policies and presentation required by International

Financial Reporting Standards, incorporating International Accounting

Standards and Interpretations (collectively "IFRS") as endorsed by the

European Union.

The interim report is presented and prepared in a form consistent with

that which has been adopted in the Group's annual accounts having regard

to the accounting standards applicable to such accounts.

2. EARNINGS PER SHARE

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

the following data.

Earnings
Six months ended Six months ended Year ended
30 June 2009 30 June 2008 31 December 2008

Earnings for the purpose of basic and diluted earnings per share being net profit
attributable to equity holders £152,911 £197,483 £171,374

of the parent Number of shares Weighted average number of
Shares for the purposes of 18,000,000 18,000,000 18,000,000

basic earnings per share Weighted average number of
Shares for the purposes of 18,250,000 18,250,000 18,250,000

diluted earnings per share Earnings per share
Basic 0.85p 1.10p 0.95p
Diluted 0.84p 1.08p 0.95p
3. RESERVES

Shares Share Premium Statutory Translation Retained Minority
Capital Reserve Reserve Reserve Earnings Interests
£ £ £ £ £ £

30 June 2009
At 1 January 2009 450,000 1,935,980 160,995 665,720 644,954 73,613
Profit for the period - - - - 152,911 2,698
Foreign exchange differences - - - (505,822) - (8,916)

At 30 June 2009 450,000 1,935,980 160,995 159,898 797,865 67,395

30 June 2008
At 1 January 2008 450,000 1,935,980 139,615 79,661 494,960 48,360
Profit for the period - - - - 197,483 -
Foreign exchange differences - - 45,638 51,956 177,501 1,448

At 30 June 2008 450,000 1,935,980 185,253 131,617 869,944 49,808

31 December 2008
At 1 January 2008 450,000 1,935,980 139,615 79,661 494,960 48,360
Transfers - - 21,380 - (21,380) -
Profit for the period - - - - 171,374 2,658
Foreign exchange differences - - - 586,059 - 22,595

At 31 December 2008 450,000 1,935,980 160,995 665,720 644,954 73,613
4. SEGMENT INFORMATION
Packing Moulding Bespoke
Machinery Equipment Engineering Technology Unallocated Total
£ £ £ £ £ £

For the 6 month period ended 30 June 2009 Revenue from sale of goods

944,468 98,953 1,066,722 - - 2,110,143
Segment results 100,672 14,373 101,329 (15,792) 22,858 223,440
Finance income 120 78 2,201 75 2 2,476
Finance costs (404) (22) (5,418) (19) - (5,863)
Profit before income 100,388 14,429 98,112 (15,736) 22,860 220,053
Tax expense (25,098) (3,636) (35,710) - (64,444)

Profit from continuing operations
75,290 10,793 62,402 (15,736) 22,860 155,609
Minority interest - (2,698) - - - (2,698)

Profit attributable to the equity holders of the
parent 75,290 8,095 62,402 (15,736) 22,860 152,911

Other segment items in the income statement are as follows:

Depreciation 26,803 9,479 12,026 291 - 48,599
Amortisation 1,132 - - - - 1,132
Provisions for doubtful debts 31,054 - 55,925 - - 86,979

Segmental assets and liabilities at 30 June 2009 and capital expenditure for the year are as follows:

Total assets 3,282,195 283,170 2,822,682 89,889 (566,929) 5,911,007
Total liabilities 1,255,886 13,206 936,493 21,491 111,798 2,338,874
4.. SEGMENT INFORMATION (continued)
Packing Moulding Bespoke
Machinery Equipment Engineering Technology Unallocated Total
£ £ £ £ £ £

For the 6 month period ended 30 June 2008 Revenue from sale of goods

582,571 31,596 1,129,696 - - 1,743,863
Segment results 113,115 5,315 211,696 - (71,100) 259,026
Finance income 429 491 - - 63 983
Finance costs (223) (10) (6,230) - - (6,463)
Profit before income 113,321 5,796 205,466 - (71,037) 253,546
Tax expense (28,332) (1,449) (25,682) - (600) (56,063)

Profit from continuing operations
84,989 4,347 179,784 - (71,637) 197,483
Minority interest - - - - - -

Profit attributable to the equity holders of the
parent 84,989 4,347 179,784 - (71,637) 197,483

Other segment items in the income statement are as follows:

Depreciation 14,499 1,964 6,037 - - 22,500
Amortisation 1,049 - - - - 1,049
Provisions for doubtful debts - - - - - -

Segmental assets and liabilities at 30 June 2008 and capital expenditure for the year are as follows:

Total assets 2,020,299 218,218 2,969,632 - 148,524 5,356,673
Total liabilities 434,423 7,219 1,040,308 - 252,121 1,734,071
-

4. SEGMENT INFORMATION (continued)

Packing Moulding Bespoke
Machinery Equipment Engineering Technology Unallocated Total
£ £ £ £ £ £

For the year ended 31 December

Revenue from sale of goods
1,186,063 75,824 1,349,442 - - 2,611,329
Segment results 32,023 14,509 100,887 - (7,360) 140,059
Finance income 1,973 1,176 280 - 81 3,510
Finance costs (1,171) (29) (13,702) - - (14,902)
Profit before income 32,825 15,656 87,465 - (7,279) 128,667
Tax expense 29,147 (5,023) 7,048 - 14,193 45,365

Profit from continuing
operations 61,972 10,633 94,513 - 6,914 174,032
Minority interest - (2,658) - - - (2,658)

Profit attributable to the
equity holders of the parent 61,972 7,975 94,513 - 6,914 171,374

Other segment items in the income statement are as follows:

Depreciation 61,468 14,105 23,743 - - 99,316
Amortisation 2,857 - - - - 2,857
Provisions for doubtful debts 159,039 4,538 69,999 - - 233,576

Segmental assets and liabilities at 31 December 2008 and capital expenditure for the year are as follows:

Total assets 2,421,243 286,224 2,037,195 100,262 1,359,503 6,204,427
Total liabilities 635,939 (3,689) 1,391,647 - 249,268 2,273,165

5. POST BALANCE SHEET EVENTS

None.

This information is provided by RNS The company news service from the London Stock Exchange

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