(PAQ.L) PAQ International Holdings Ltd Buy/Sell

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Current Market Information

Time: 07:14 (Market Closed)

Bid	0.40
Ask	0.55
Price	0.475
Previous	0.60
Change	-0.12 (-20.83%)
Last Trade	0.475 (16:30:11)
Trading Vol.	485,549
Today's High	0.535
Today's Low	0.40

52 Wk Low	0.10
52 Wk Low	(25/11/2008)
52 Wk High	2.50
52 Wk High	(23/04/2009)
52 Wk Change	-0.12
52 Wk Change	(-20.83%)
4 Wk Volume	1,741,800
ISIN Number	KYG689191024
Currency	GBX

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Recent News
Date/Time	Headline	Source
30-09-09	PAQ International - Interim Results	RNS
This news article is displayed preformatted as it may contain results tables RNS Number : 9533Z PAQ International Holdings Limited 30 September 2009 PAQ INTERNATIONAL HOLDINGS LIMITED UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009 Chairman's Statement I report on the financial results for PAQ International Holdings Limited (the "Company" or "PAQ") and its subsidiaries (collectively referred to as the "Group") for the six months ended 30 June 2009. PAQ is an AIM listed designer and manufacturer of branded and Original Equipment Manufacturer ("OEM") "softwear" for electronic products and accessories. Operational Review This has been a challenging six months with business around the world suffering as a consequence of the banking collapse over the last quarter of 2008. Our operating performance was adversely affected and the Group experienced an operating loss for the six months ended 30 June 2009. The decrease in trade is mainly attributable to a reduction in orders from the Group's overseas customers who were likewise adversely affected and who consequentially adopted a more cautious, approach in their purchase orders. A major customer, Circuit City Stores Inc, filed for bankruptcy this year and they were previously one of our largest customers in the US market. Therefore, without their continuing custom the Group's revenues in the US has been significantly reduced. Also, the Group was subject to litigation concerning intellectual property which has now been dismissed although it has taken some time to resume normal client relationships in Europe given the uncertainty that the litigation created. More generally, trading has been weak across all markets and products. The Board has decided to defer any substantial capital outlay required to expand the Group's entry into the People's Republic of China (PRC) market as anticipated until market conditions justify such a move. The Group did spend HK$3.2m for additional PPM (Property, Plant and Machinery) to fabricate new moulds as required by customers. The Group's current focus is to reduce costs and defer or terminate expansion plans until the turnover and profits of the Group allow such actions to become feasible as the Board is confident that the market will improve in the second half of 2009. Meanwhile, the Board has explored ways of expanding the Group's operations by entering into licensing arrangements which will bring benefits to the Group with relatively low costs incurred. This strategy is coming close to fruition and we have entered into and are in the process of concluding a series of joint venture agreements with Fobazo.com A/S (Denmark) ("Fobazo"). Fobazo owns exclusive rights to the promotion of some of the world's most famous names in football. Also, the Group is negotiating sub - licensing and franchise agreements that should begin to make a financial contribution to the Group in the coming year. Financial Review PAQ's revenue during the first half of the year 2009 was HK$13.54m as opposed to HK$44.43 m for the first half of 2008. This is a significant reduction of approximately 70% Whilst Gross Profit margins fell noticeably to 8% during this period in comparison to 18% in 2008 following increases in both production and operating costs in the PRC. As a result, the Company recorded a loss after tax of approximately HK$3.7m in the first half of 2009 against a profit of HK$3.4m for the same period in 2008. Working Capital Review The Group's capital expenditure during the first half of 2009 was HK$3.2m on additional Plant, Property and Machinery for new moulds as many customers were not prepared to pay for the mould fees for the development of new models for production. However, the Group does believe that incurring such costs nevertheless does provide a competitive advantage against our competitors. Management expects to continue incurring capital expenditure at a similar level for the remainder of 2009. The Group finances its capital expenditure requirements primarily with cash generated from its operations. The Group has internal budgeting systems in place to ensure that if and when cash is committed to fund major expenditures there is sufficient cash flow to maintain the Group's daily operations and meet all of its contractual obligations. Although the Group has consistently maintained a very liquid position, banking facilities have nevertheless been put in place for contingency purposes. As at 30 June 2009, the Group had trade financing facilities amounting to HK$10.5m, a term loan facility amounting to HK$1m and a revolving credit line for working capital purposes amounting to HK$1.8m. The total undrawn portion of these facilities is HK$1.8m. The interest rates for the trade financing line range from 5.75% to 6.25% and this facility is denominated in Hong Kong Dollars. The term loan facility carries interest at a rate of 5.75% and is also denominated in Hong Kong Dollars. The revolving credit line has an interest rate of 1% plus HIBOR and is denominated in Hong Kong Dollars. It is rolled-over monthly for working capital financing. The Group's accounting policy regarding bad debts is to provision at year end any payments which have not been settled by the customer within 360 days. Due to the global financial crisis a number of our customers have extended their payment period, therefore, our receivables collection period has increased from 152 days to 448 days. The Group has extended payment terms to those customers with whom they have maintained long working relationships. The group has received HK$5m from the outstanding receivables as at 30 June 2009 during July and August. We are confident that the outstanding receivable amounts will continue to decrease as a result of payments from our customers in the fourth quarter of year 2009. Finally, The Group is continuing its efforts to recover HK$9.6m bad debt that was reported in our year ended 31 December 2008. The Group currently has no other material external debt financing in place. If and when the Group decides to raise any finance in the future, it expects to be able to utilise a variety of options, including debt financing and access to the capital markets, where necessary and available. The Group has an overdraft facility of HK$11m as of 30 June 2009 compared with a HK$7.5m overdraft as of 30 June 2008. The increase was due to the purchase of plant and machinery of HK$3.2m. Going forward, the Directors believe that the Group's liquidity requirements for the foreseeable future can be satisfied; however, the Board is monitoring this situation very closely. Contingent Liabilities As at 30 June 2009, the Group had no contingent liabilities and also the Group has no bad debts. Net Current Liabilities The net current liabilities reported of $9.1M shows a marked deterioration from the net current assets of $6.4m reported on 30 June 2008. The net current liabilities position is being managed according to the ability of the Group to service its working capital as set out above. The Group does expect the second half of 2009 to improve the working capital position. Related Transactions In comparison with 2008, amounts due from related companies increased by HK10,000 which was in relation to PAQ Concept Ltd. This represents the incorporation fee and is temporary recorded in the books as an amount due from a related company and will be recognized as investment to subsidiary and eliminated in consolidated accounts by the year end. Dividend The Directors are not recommending payment of an interim dividend. Outlook and Future Prospects The Board is now prioritizing the strategy of licensing and joint venture arrangements and we are looking to enhance the PAQ brand by leveraging on our historical manufacturing strengths in cases and bags for electronics products and accessories. We will continue to develop our expertise in producing high quality, reliable and innovative products. The Group will also strengthen its design and development capabilities to further raise its brand profile to distinguish itself from other product suppliers. The Board believes that the joint venture and licensing strategies referred to above have the potential to generate significant publicity, brand recognition and revenue in the lead up to the World Cup in South Africa in 2010. Despite signs of a global recovery, we remain prudent in the current market condition and we are currently working with our customers towards developing strategies that reflect the deteriorating conditions in some markets such as reducing stock inventories and producing cheaper range of bags while deferring the implementation of any contracts that may incur a substantial financial outlay. Notwithstanding the current poor market conditions, the Board is confident of the long term prospects of the Group. Issue of Equity During the period the Group has attracted further investment from a strategic investor, Noah Concept Limited. The investor subscribed to 3.15% or HK$1.5m of new ordinary shares in the Company. Appreciation Finally, on behalf of the Board, I would like to thank our customers, suppliers and shareholders for their continued support of the Group and I would also like to recognize the hard work from the management team and our highly dedicated team of employees for their respective contributions to the Group. Kelvin Kwong Chi Yau Chairman and Chief Executive Officer 30 September 2009 Note: A copy of the interim accounts for the six months ended 30 June 2009 will be available on www.paq-intl.com Contact Kelvin Yau, Chief Executive +(852) 9135 1811 PAQ International Holdings www.paq-intl.com Dominique Doussot/David Newton/Jonathan Evans +44 (0) 207 060 1760 Zimmerman Adams International Ltd PAQ International Holdings Limited Unaudited consolidated income statement For the six months ended 30 June 2009 Six months ended 30 June Year ended 31 Dec Note 2009 2008 2008 HK$'000 HK$'000 HK$'000 (unaudited) (unaudited) (audited) Revenue 3 13,538 44,432 76,319 Cost of sales -12,454 -36,452 -64,923 * Gross profit 3 1,084 7,980 11,396.00 Other income 112 5,663 6,621.00 Distribution costs -172 -1,493 -2,733.00 Administrative expenses -2,276 -3,386 -8,698.00 Other expenses -2,036 -4,473 -15,409.00 Finance costs 4(a) -449 -292 -655 * (Loss) / Profit before tax 4 -3,737 3,999 -9,478.00 Income tax expenses 5 - -506 0 (Loss) / Profit and total comprehensive income for the period -3,737 3,493 -9,478.00 (Loss) / Profit and total comprehensive income attributable to : - owners of the Company -3,737 2,483 -10,488.00 - minority interests - 1,010 1,010.00 -3,737 3,493 -9,478.00 Cents per share Cents per share Cents per share Earnings per share 6 - basis -3.02 2.13 9.24 - diluted N/A 2.13 9.54 PAQ International Holdings Limited Unaudited consolidated statement of financial position As at 30 June 2009 Note 30 June 2009 30 June 2008 31 December 2008 HK$'000 HK$'000 HK$'000 (unaudited) (unaudited) (audited) Non-current assets Property, plant and equipment 7 8,231 1,774 6,341 Goodwill 8 14,227 16,675 14,227 22,458 18,449 20,568 Current assets Inventory 0 2,758 0 Trade and other receivables 9 16,615 25,997 18,500 Amount due from a director 17 14 0 - Amount due from a related company 17 34 0 24 Pledged bank deposit 14 550 547 549 Bank balances and cash 141 718 189 17,354 30,020 19,262 Current liabilities Trade and other payables 10 8,456 10,000 6,235 Income tax liabilities 4,160 4,906 4,400 Amounts due to directors 16 1,540 0 954 Borrowings 11 12,154 8,283 12,416 Obligation under finance lease 165 353 214 26,475 23,542 24,219 Net current liabilities -9,121 6,478 -4,957 Total assets less current liabilities 13,337 24,927 15,611 Non-current liabilities Borrowings 11 348 0 347 Obligation under finance lease 0 38 348 0 385 Net assets 12,989 24,927 15,226 Capital and reserve Share capital 12 9,707 10,085 9,400 Reserves 3,282 14,842 5,826 Total equity attributable to owners of the Company 12,989 24,927 15,226 PAQ International Holdings Limited Unaudited condensed consolidated statement of changes in equity For the six months ended 30 June 2009 Reserves Share capital Share premium Shares to be issued Treasury shares Share option reserve Merger reserve Shareholders' Translation reserve Retained profit / Sub- total Total contribution (Accumulated) losses HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 At 1 January 2008 (audited) - - - - - - - - 9,343 9,343 9,343 Profit and total comprehensive income for the period - - - - - - - 35 2,483 2,518 2,518 Arising from Reorganization (Note (i)) 8,100 - - - - -8,091 - - - -8,091 9 Issue of shares (Note (ii)) 1,300 14,160 - - - - - - - 14,160 15,460 Expenses incurred in connection with the issue of - -9,021 - - - - 9,021 - - - - shares (Note (ii)) Recognition of equity settled share based payments - -670 - - 670 - - - - - - (Note (iii)) Purchase of own shares and held as treasury shares - - - -6,271 - - - - - -6,271 -6,271 Acquisition of additional interest in a subsidiary 685 3,183 - - - - - - - 3,183 3,868 At 30 June 2008 (unaudited) 10,085 7,652 - -6,271 670 -8,091 9,021 35 11,826 14,842 24,927 At 1 January 2009 (audited) 9,400 4,469 4,313 -3,583 670 -8,091 9,021 172 -1,145 5,826 15,226 Loss and total comprehensive income for the period - - - - - - - - -3,737 -3,737 -3,737 Issue of shares (Note (iv)) 307 1,193 - - - - - - - 1,193 1,500 At 30 June 2009 (unaudited) 9,707 5,662 4,313 -3,583 670 -8,091 9,021 172 -4,882 3,282 12,989 Note: * The merger reserve of the Group represents the difference between the nominal value of share capital of a subsidiary acquired pursuant to Reorganization in January 2008 and the nominal value of the share capital issued by the Company as consideration for the reorganization of business under common control. * The Company entered into an agreement with Mr. Yau Kwong Chi, Kelvin and Madam Ng Oi Chun, Patty on 28 November 2007 in connection with the expenses incurred by the Company in relation to the admission to AIM and the related placing of shares. Under the terms of this agreement, Madam Ng Oi Chun, Patty agreed to take responsibility for the payemnt of all professional fees incurred by the Company in connection with the admission to AMI and placing of shares. In return, Mr. Yau Kwong Chi, Kelvin transferred a total of 26,272,500 ordinary shares of the Company to Madam Ng Oi Chun, Patty and nominees. * On 19 February 2008, the Company granted an option to subscribe for 1,205,166 ordinary shares of the Company to each of Zimmerman Adams International Limited, the nominated adviser and broker of the Company, and Hichens, Harrison & Co. plc, the co-broker of the Company, in connection with the placing of shares and admission to AIM. The share option will expire on 24 February 2013 and have an exercise price of GBP0.06 per share. * On April 2009, Noah Concept Limited subscribed for 3,954,049 new ordinary shares of US$0.01 each in the Company at a price of HK$0.38 per share for a total consideration of HK$1,500,000. PAQ International Holdings Limited Unaudited condensed consolidated cash flow statement For the six months ended 30 June 2009 Six months ended 30 June Ended 31 Dec 2009 2008 2008 HK$'000 HK$'000 HK$'000 (unaudited) (unaudited) (audited) Net cash from (used in) operating activities 2,453 -2,521 -4,211 Net cash used in investing activities Interest received - 5 9 Acquisition of property, plant and equipment -3,203 -83 -6,194 Acquisition of a subsidiary, net of cash acquired - -2,656 -2,656 Acquisition of additional interest in a subsidiary - -9,901 -7,453 Proceeds from disposal of property, plant and equipment 20 Increase in pledged bank deposits -1 -4 -6 -3,204 -12,639 -16,280 Net cash from financing activities Proceeds from issue of ordinary shares 1,500 15,460 15,460 Repayment of -261 -53 2,111 borrowings, net Repayment of obligation under finance lease -87 -67 -168 Interest paid -449 -27 -95 703 15,313 17,308 Net (decrease) / increase in cash and cash equivalents -48 153 -3,183 Cash and cash equivalents at beginning of the period 189 -7,644 -7,644 Effect of foreign exchange rate movements - -9 37 Cash and cash equivalents at end of the period, represented by bank 141 -7,500 -10,790 balances and cash PAQ International Holdings Limited Notes to the condensed consolidated interim financial information For the six months ended 30 June 2009 1. BASIS OF PREPARATION The condensed consolidated interim financial information have been prepared in accordance with International Accounting Standard 34 ("IAS 34"), Interim Financial Reporting. The condensed consolidated interim financial information are presented in Hong Kong Dollars ("HKD"), which is the same as the funciational currency of the Company. 2. PRINCIPAL ACCOUNTING POLICIES The condensed consolidated interim financial information have been prepared on the historical cost basis. The accounting policies used in the condensed consolidated interim financial information are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2008 except as described below. In the current interim preiod, the Group has applied, for the first time, the following new and revised standards, amendments and interpretations ("new and revised IFRSs") which are effective for the Group's financial year beginning on 1 January 2009. IAS 1 (Revised 2007) Presentation of Financial Statements IAS 23 (Revised 2007) Borrowing costs IAS 32 & 1 (Amendments) Puttable Financial Instruments and Obligations Arising on Liquidation IFRS 1 (Amendment) Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate IFRS 2 (Amendment) Vesting Conditions and Cancellations IFRS 7 (Amendment) Improving Disclosures about Financial Instruments IFRS 8 Operating Segments IFRIC 9 & IAS 39 (Amendments) Embedded Derivatives IFRIC 13 Customer Loyalty Programmes IFRIC 15 Agreements for the Construction of Real Estate IFRIC 16 Hedges of a Net Investment in Foreign Operation IFRSs (Amendments) Improvements to IFRSs issued in 2008, except for the amendment to IFRS 5 that is effective for annual periods beginning or after 1 July 2009 IFRSs (Amendments) Improvements of IFRSs issued in 2009 in relation to the amendment to paragraph 80 of IAS 39 IAS 1 (Revised 2007) Presentation of Financial Statements IAS 1 (Revised 2007) has introduced a number of terminology changes, including revised titles for the condensed consoldiated interim financial information, and has resulted in a number of changes in presentation and disclosure. However, IAS 1 (Revised 2007) had no impact on the reported results or financial position the Group. IAS 23 (Revised 2007) Borrowing Costs In previous years, the Group expensed all borrowing costs that were directly attributable to the acquisition, construction or production of an qualifying asset when they were incurred. IAS 23 (Revised 2007) removes the option available under the previous version of the Standard to recognize all borrowing costs as expenses immediately and requires all such borrowing costs to be capitalized as part of the cost of the qualifying asset. The Group has applied the revised accounting policy prospectively. The application of IAS 23 (Revised 2007) had no impact on the reported results or financial position of the Group. IFRS 7 (Amendment) Improving Disclosures about Financial Instruments IFRS 7 (Amendment) increases the disclosure requirements about fair value measurement and amends the disclosure about liquidity risk. The amendment introduces a three-level hierarchy for fair value measurement disclosures about financial instruments and requires some specific quantitative disclosures for those instruments classified in the lowest level in the hierarchy. These disclosures will help to improve comparability between entities about the effects of fair value measurements. In addition, the amendment clarifies and enhances the existing requirements for the disclosure of liquidity risk primarily requiring a separate liquidity risk analysis for derivative and non-derivative financial liabilities. It also requires a maturity analysis for financial assets where the information is needed to understand the nature and context of liquidity risk. The Group will make additional relevant disclosures in its financial statements ending 31 December 2009. IFRS 8 Operating Segments IFRS 8 requires segment disclosure to be based on the way that the Group's chief operating decision maker regards and manages the Group, with the amounts reported for each reportable segment being the measures reported to the Group's chief operating decision maker for the purposes of assessing segment performance and making decisions about operating matters. This contrasts with the presentation of segment information in prior years which was based on a disaggregation of the Group's financial statements into segments based on related products and services and on geographical areas. The adoption of IFRS 8 has resulted in the presentation of segment information in a manner that is more consistent with internal reporting provided to the Group's most senior executive management, and has resulted in additional reportable segments being identified and presented (See note 3). As this is the first period in which the Group has presented segment information in accordance with IFRS 8, additional explanation has been included in the condensed consolidated interim financial information which explains the basis of preparation of the information. Corresponding amounts have also been provided on a basis consistent with the revised segment information. The adoption of the other new and revised IFRSs has had no material effect on the reported results and financial position of the Group for the current or prior accounting periods. Accordingly, no prior period adjustment has been recognized. The Group has not early applied the following new or revised standards, amendments or interpretations that have been issued but are not yet effective: IFRSs (Amendments) Amendment to IFRS 5 as part of Improvements to IFRSs issued in May 2008 (note 1) IFRSs (Amendments) Improvements to IFRSs issued in April 2009 (note 2) IAS 27 (Revised 2008) Consolidated and Separate Financial Statements (note 1) IAS 39 (Amendment) Eligible Hedged Items (note 1) IFRS 1 (Amendment) Additional Exemptions for First-time Adopters (note 4) IFRS 2 (Amendment) Group Cash-settled Share-based Payment Transactions (note 4) IFRS 3 (Revised 2008) Business Combinations (note 1) IFRIC 17 Distributions of Non-cash Assets to Owners (note 1) IFRIC 18 Transfers of Assets from Customers (note 3) Note: 1. Effective for annual periods beginning on or after 1 July 2009. 2. Amendments that are effective for annual periods beginning on or after 1 July 2009 or 1 January 2010, as appropriate. 3. Effective for transfers on or after 1 July 2009. 4. Effective for annual periods beginning or or after 1 January 2010. The adoption of IFRS 3 (Revised 2008) may affect the Group's accounting for business combinations for which the acquisition dates are on or after 1 January 2010. IAS 27 (Revised 2008) will affect the accounting treatment for changes in the Group's ownership interest in a subsidiary. The directors of the Company anticipate that the application of other new and revised standards, amendments or interpretations will have no material impact on the results and the financial position of the Group. 3. SEGMENT INFORMATION The Group has adopted IFRS 8 Operating Segments with effect from 1 January 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Group's chief operating decision maker in order to allocate resources to segments and to assess their performance. In prior years, on segment information is presented as the Group is principally engaged in the manufacturing and distributing branded softwear for branded electronic products and accessories which comprise a single business segment. However, information reported to the Group's cheif operating decision maker for the purposes of resource allocation and performance assessment focuses more specifically on the following geographical location of customers. The Group's reportable segments under IFRS 8 are therefore as follows: (a) Europe (b) PRC (c ) United States of America (d) Australia (e) Others The following is an analysis of the Group's revenue and results by operating segment for the period under review: For the six months ended 30 June 2009 United States Europe PRC of America Australia Others Consolidated HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Revenue External sales 654 282 11,606 116 880 13,538 Segment profit 281 121 252 50 380 1,084 Unallocated income 112 Unallocated expenses -4,484 Finance costs -449 Loss before tax -3,737 For the six months ended 30 June 2008 United States Europe PRC of America Australia Others Consolidated HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Revenue External sales 6,512 167 29,357 868 7,528 44,432 Segment profit 1,172 30 5,267 156 1,355 7,980 Interest income 5 Other unallocated income 5,658 Unallocated expenses -9,352 Finance costs -292 Profit before tax 3,999 Segment profit represents the gross profit earned by each segment. This is the measure reported to board of directors for the purposes of resource allocation and performance assessment. 4. (LOSS) / PROFIT BEFORE TAX Six months ended 30 June Note 2009 2008 HK$'000 HK$'000 (Loss) / Profit before tax has been arrived at: After charging: (a) Finance costs: Interest on finance leases 8 9 Interest on bank loans 58 14 Interest on bank overdrafts 375 265 Interest on discounted bills 8 4 449 292 (b) Staff costs, excluding directors' remuneration: (i) Salaries, wages and other benefits 1,395 3,795 Retirement scheme contributions 40 140 1,435 3,935 (c ) Other items: Directors' remuneration - fees - - - other emoluments 780 599 - retirement scheme contributions - 4 Cost of inventories (ii) 12,454 36,452 Depreciation on property, plant and equipment 1,313 364 Minimum lease payment under operating lease 180 595 - rented premises Net foreign exchange losses 6 425 Impairment loss on other receivables - 1,526 Research and development costs 162 243 Note: (i) Staff costs include approximately HK$162,000 (for the six months ended 30 June 2008: HK$243,000) relating to research and development costs disclosed separately in Note 4(c ). (ii) Cost of inventories includes approximately HK$159,000 (for the six months ended 30 June 2008: HK$2,310,000) relating to operating lease charges, staff costs and depreciation, which are included in the respective total amounts disclosed separately above or Note 4(b) for each of these types of expenses. After crediting: Interest income - 5 5. INCOME TAX EXPENSES Six months ended 30 June 2009 2008 HK$'000 HK$'000 Current tax - Hong Kong Profits Tax - 506 No provision for income tax has been made for the Company and group entities established in the Cayman Islands and Hong Kong as they have no assessable income during the interim period. The provision of Hong Kong profits tax is calculated by applying the estimated annual effective tax rate of 16.5% for the six months ended 30 June 2008. Pursuant to the relevant laws and regulations in the People's Republic of China ("PRC"), the Group's PRC subsidiary is exempted from PRC enterprise income tax for the two years from the first profit-making year and thereafter is entitled to a 50% relief from PRC enterprise income tax for the following three years. The PRC subsidiary was in its [ third ] profit-making year for the six months ended 30 June 2009. 6. EARNINGS PER SHARE (a) Basis earnings per share The calculation of basis earnings per share is based on the profit attributable to owners of the Company of approximately HK$3,737,000 (for the six months ended 30 June 2008: HK$2,483,0000 and the weighted average number of 123,714,604 ordinary shares (for the six months ended 30 June 2008: 116,352,458 shares, after assuming the completion of the Reorganization on 1 January 2007) in issue during the interim period. (b) Diluted (loss) / earnings per share Diluted loss per share has not been presented for the six months ended 30 June 2009 because the exercise price of the Company's options was higher than the average market price of the Company's shares during that period when they were outstanding. No diluted earnings per share have been presented for the six months ended 30 June 2008 because the options outstanding during that period had an anti-dilutive effect on the basis earnings per share. 7. MOVEMENT IN PROPERTY, PLANT AND EQUIPMENT During the six months ended 30 June 2009, the Group spent HK$3,203,000 (for the six months ended 30 June 2008: HK$83,000) on the acquisition of property, plant and equipment. 8. GOODWILL 30 June 31 December 2009 2008 HK$'000 HK$'000 COST Opening net book amount 14,227 - Acquired on acquisition of a subsidiary - 14,227 Closing net book amount 14,227 14,227 On 18 January 2008, PAQ Manufacturing Limited, a wholly owned subsidiary of the Company, acquired 51% equity interest in Plato Leatherware Company Limited at a cash consideration of HK$2,448,000. The net liabilities acquired on 18 January 2008 and the goodwill arising are as follows: Acquiree's carrying amounts before combination and fair value HK$'000 Net assets/(liabilities) acquired: Property, plant and equipment 5 Trade and other receivables 4,338 Bank and cash balances 6 Trade and other payables -5,603 Bank overdrafts -214 Net liabilities acquired -1,468 Goodwill 3,916 2,448 Total consideration satisfied by: Cash 2,448 Net cash outflow arising on acquisition: Cash consideration paid 2,448 Bank balances and cash, bank overdrafts acquired 208 2,656 On 11 June 2008, PAQ Manufacturing Limited further acquired the remaining 49% equity interests in Plato Leatherware Company Limited at a cash consideration of approximately HK$9,901,000 and 8,772,000 issued shares of the Company. Plato Leatherware Company Limited became a wholly owned subsidiary of the Company thereafter. Pursuant to the sale and purchase agreement in relation to the acquisition of the remaining 49% equity interests in Plato Leatherware Company Limited, a part of cash consideration of HK$2,448,000 for the acquisition was contingent on the fund raising by the Company after admission to the AIM by means of share placement on or before 1 May 2009. Management of the Company considered that the fund raising exercise was not probable and did not include the aforesaid cash consideration of HK$2,448,000 in the cost of acquisition at the acquisition date. Subsequent to the date of acquisition of the remaining 49% equity interest in Plato Leatherware Company Limited and up to 1 May 2009, no fund raising by the Company occurred. After the completion of the acquisition of the remaining 49% equity interests in Plato Leatherware Company Limited on 11 June 2008, the goodwill arising is as follows: HK$'000 Purchase consideration: Cash consideration 7,453 Fair value of 8,772,000 shares of the Company to be issued (Note) 3,868 11,321 Acquisition of additional interest in a subsidiary from a minority shareholder -1,010 Goodwill arising 10,311 Goodwill arising from acquisition on 18 January 2008 - shown as above 3,916 Total goodwill 14,227 Note: At 31 December 2008, the consideration of 8,772,000 shares of the Company for the acquisition had not yet been issued and therefore the fair value of 8,772,000 shares to be issued for the acquisition had been recognized as "shares to be issued" in the equity. Shares to be issued was based the published price of the Company's shares as quoted on the AIM on 11 June 2008. 9. TRADE AND OTHER RECEIVABLES 30 June 31 December 2009 2008 HK$'000 HK$'000 Trade receivables 7,566 9,240 Less: Allowance for doubtful debts -630 -630 6,936 8,610 Other receivables 11,984 18,847 Prepayments and deposits 554 278 12,538 19,125 Less: Allowance for doubtful debts -2,859 -9,235 9,679 9,890 16,615 18,500 An ageing analysis of trade receivables (net of allowance for doubtful debts) at the end of the interim / reporting period is as follows: 30 June 31 December 2009 2008 HK$'000 HK$'000 Less than 1 month past due 3,800 6,811 1 month to 3 months past due -658 1,223 More than 3 months but less than 1 year past due 3,790 576 Over 1 year past due 4 - Amounts past due 6,936 8,610 Trade receivables are due upon the date of billing. 10. TRADE AND OTHER PAYABLES 30 June 31 December 2009 2008 HK$'000 HK$'000 Trade payables 3,785 1,668 Other payables and accrued charges 3,411 3,471 Deposits received 1,260 1,096 8,456 6,235 An ageing analysis of trade payables at the end of the interim / reporting period is as follows: 30 June 31 December 2009 2008 HK$'000 HK$'000 Less than 1 month 2,010 457 1 month to 3 months 622 5 Over 3 months but less than 1 year 613 1,206 Over 1 year 540 - 3,785 1,668 The average credit period on purchase of goods is 30 days. 11. BORROWINGS 30 June 31 December Note 2009 2008 HK$'000 HK$'000 Secured: Bank overdrafts (a) 11,056 10,979 Bank loans (a) 946 1,284 Unsecured: Other loans (b)(i) 500 500 12,502 12,763 At the end of the interim / reporting period, the bank borrowings were repayable as follows: 30 June 31 December 2009 2008 HK$'000 HK$'000 Within one year or on demand 12,154 12,416 After 1 year but within 2 years 348 347 12,502 12,763 Less: Amounts due within one year shown under current liabilities -12,154 -12,416 348 347 Note: (a) The Group's interest-bearing borrowings bear interest ranging from 5.75% to 6.25% (for the year ended 31 December 2008: 6% to 6.25%) per annum. The details of security of borrowings are disclosed in Note 14. (b) (i) Pursuant to an agreement entered into between the Company and Ms. Ho Wing Yee ("Ms. Ho"), an independent third party, on 17 June 2008, Ms. Ho agreed to advance to the Company a sum of HK$500,000 (the "1st Loan"). The 1st Loan is unsecured, interest-free and has no fixed terms of repayment. The 1st Loan is convertible at the option of the lender into ordinary shares of the Company. The conversion rights attached to the 1st Loan can be exercised at any time after the expiry of one month from the date of the agreement and the conversion price of the 1st Loan is HK$0.442 per share. (ii) Pursuant to an agreement entered into between the Company and Mr. Ng Ngai Hung ("Mr. Ng"), an independent third party, on 23 June 2008, Mr. Ng agreed to advance to the Company a sum of HK$445,000 (the "2nd Loan"). The 2nd Loan is unsecured, interest-free and has no fixed terms of repayment. The 2nd Loan is convertible at the option of the lender into ordinary shares of the Company. The conversion rights attached to the 2nd Loan can be exercised at any time after the expiry of one month from the date of agreement and the conversion price of the 2nd Loan is HK$0.445 per share. During the year ended 31 December 2008, Mr. Ng exercised the conversion rights to convert the 2nd Loan into 1,000,000 shares of the Company. Up to the date of issuance of these condensed consolidated interim financial information, the Company is yet to complete the relevant procedures to convert the 2nd Loan into shares of the Company and therefore the sum of HK$445,000 was treated as "Shares to be issued" included in the reserves of the Company. SHARE CAPITAL Number of Note shares Amount HK$'000 At 1 January 2008 (a) 1 - Sub-division of the par value (b) 9 - of ordinary shares of US$0.10 to US$0.01 each Issue of shares upon (c ) 103,850,000 8,100 Reorganization Issue of shares upon placing (d) 16,666,667 1,300 Issue of shares for acquisition (e) 8,772,000 685 of additional interest in a subsidiary At 30 June 2008 129,288,677 10,085 At 1 January 2009 120,516,677 9,400 Issue of shares (f) 3,954,049 306 At 30 June 2009 124,470,726 9,706 Note: (a) The Company was incorporated on 23 November 2007, on which date the authorized share capital was US$50,000 divided into 500,000 ordinary shares of US$0.10 each, 1 of which was issued at par for cash. (b) On 18 January 2008, (i) issued and unissued shares of the Company were sub-divided into 10 shares of US$0.01 each such that the authorized share capital of the Company became US$50,000 divided into 5,000,000 ordinary shares; and (ii) the authorized share capital of the Company was increased to US$3 million by the creation of 295,000,000 new ordinary shares. (c ) On 18 January 2008, the Company underwent the Reorganization and acquired the entire equity interests in PAQ Manufacturing Limited, a company incorporated in Hong Kong, through the issue of 103,850,000 ordinary shares of US$0.01 each to Mr. Yau Kwong Chi, Kelvin and Mr. Edmund Lui. (d) On 25 February 2008, 16,666,667 new ordinary shares of US$0.01 each of the Company were issued at GBP0.06 per share by way of placing of shares. (e) On 11 June 2008, the Group acquired the remaining 49% equity interests in Plato Leatherware Company Limited at a cash consideration of approximately HK$9,901,000 and 8,772,000 issued shares of the Company. (f) On April 2009, Noah Concept Limited subscribed for 3,954,049 new ordinary shares of US$0.01 each in the Company at a price of HK$0.38 per share for a total consideration of HK$1,500,000. All the new shares issued during the financial period rank pari passu in all respects with the existing shares of the Company. 13. BANKING FACILITIES At the end of the interim period, the Group had general banking facilities granted by banks to the extent of approximately HK$13,300,000 (as at 31 December 2008: HK$13,300,000). The Group's bank borrowings and other banking facilities were secured by: (a) Personal guarantees provide by Mr. Edmund Lui and Mr. Yau Kwong Chi, Kelvin, directors of the Company; (b) Pledge of fixed deposits of the Group and a close family member of a director of PAQ Manufacturing Limited, a wholly owned subsidiary of the Company; and (c ) Pledge of a property of a related company, Triple Grand Limited. Mr. Yau Kwong Chi, Kelvin, director of the Company, had the beneficial interests in Triple Grand Limited. 14. COMMITMENTS At the end of the interim / reporting period, the total future minimum lease payments under non-cancelable operating leases were payable as follows: 30 June 31 December 2009 2008 HK$'000 HK$'000 Within 1 year 907 991 After 1 year but within 5 years 431 1,338 1,338 2,329 Operating leases related to rental premises with lease terms of between two to five years. None of the leases includes contingent rentals. 16. CONTINGENT LIABILITIES PAQ Manufacturing Limited, a wholly owned subsidiary of the Company, was one of the defendants in a pending litigation and dispute arising from the ownership of a copyright with a supplier. The supplier's claims against the defendants are mainly for damages in resepct of the defendants' acts of copyright infringement. No provision in relation to this claim has been made in this condensed consolidated interim financial information, as legal adviser indicates that it is not probable that a significant liability will arise. There were no contingent liabilities as at 31 December 2008 and 30 June 2009. 17. RELATED PARTY TRANSACTIONS (a) Save as disclosed elsewhere in the condensed consolidated interim financial information, the Group had the following significant related party transactions during the interim period: Six months ended 30 June Note 2009 2008 HK$'000 HK$'000 Licensing income received from Riverstone (i) - 500 Manufacturing Limited ("Riverstone") Management income received from Riverstone (ii) - 14 (b) Key management compensation amounted to approximately HK$780,000 for the six months ended 30 June 2009 (for the six months ended 30 June 2008: HK$603,000). Six months ended 30 June 2009 2008 HK$'000 HK$'000 Salaries and other short-term benefits 780 599 Post-employment benefits - 4 780 603 Total remuneration is included in directors' remuneration (Note 4(c )). (c ) At the end of the interim / reporting period, the Group had the following balances with related parties: 30 June 31 December Note 2009 2008 HK$'000 HK$'000 Amount due from a director Poon Chi Man (iii) 14 - Maximum balance due from Poon Chi Man 14 - Amount due from a related company One Plus Manufacturing Limited ("One Plus") (iv) 34 24 Maximum balance due from One Plus 34 24 Amounts due to directors (iii) 1,540 954 (i) The licensing income was charged at prices and terms mutually agreed by both parties. (ii) The management income was charged on a cost reimbursement basis. (iii) The amount(s) due is/are unsecured, interest-free and has/have no fixed terms of repayment. (iv) One Plus is related to the Group by virtue of the interests of Mr. Edmund Lui and Mr. Yau Kwong Chi, Kelvin. The share capital of One Plus is directly held by Mr. Edmund Lui and Mr. Yau Kwong Chi, Kelvin, directors of the Company. The amount due is unsecured, interest-free and has no fixed terms of repayment. This information is provided by RNS The company news service from the London Stock Exchange END IR CKKKDKBKDCCN More
30-07-09	PAQ International - Issue of Equity	RNS
RNS Number : 5734W PAQ International Holdings Limited 30 July 2009 `30 July 2009` PAQ International Holdings Limited (the 'Company') Issue of Equity The Company, is pleased to announce that Noah Concept Limited (the "Subscriber") has agreed to subscribe for 3,954,049 new ordinary shares of US$0.01 ("Ordinary Shares") each in the Company (the "Subscription Shares") at a price of HK$0.38 per share for a total consideration of HK$1,500,000. Upon admission to AIM of the Subscription Shares, the total issued share capital of the Company will be 125,470,716 Ordinary Shares. At this time, Noah Concept Limited will be interested in 3.15% of the issued share capital of the Company. Application for the admission to AIM of the Ordinary Shares allotted above will be made and dealings are expected to commence on 5 August 2009. The Ordinary Shares will, on admission to AIM, rank pari passu with, and will be identical in all respects to, the existing ordinary shares of the Company. Contact `Kelvin Yau, Chief Executive +(852) 9135 1811` PAQ International Holdings www.paq-intl.com `Dominique Doussot /David Newton +44 (0) 207 060 1760` ZAI Corporate Finance Ltd This information is provided by RNS The company news service from the London Stock Exchange END IOECKKKBDBKDDON More
09-07-09	PAQ International - Termination of Broker	RNS
RNS Number : 3925V PAQ International Holdings Limited 09 July 2009 PAQ International Holdings Limited (the "Company'') Termination of Broker PAQ International Holdings Limited will like to announce the termination of Religare Hichens, Harrison plc as the joint broker to the Company with immediate effect. For further information please contact: `PAQ International Holdings +852 9135 1811` www.paqmfg.com Kelvin Yau, CEO `ZAI Corporate Finance Ltd +44 (0) 207 060 1760` David Newton/ Jonathan Evans This information is provided by RNS The company news service from the London Stock Exchange END MSCUUUQWMUPBURB More

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Date/Time	Subject	Author
Fri 00:19	thanks for that	offshore 01


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	Seems like its a long way off the 6.25p I bought into this at in 08 but here's for long term prosperity, starting with the 2010 World cup for Paq & Fabezo's joint venture!!!! More \| View thread (1) \| Respond \| Login to Vote up \| Login to Vote down
Thu 22:05	Re: where are we going with this	Voldmort


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	no updated news offshore 01, Just the same P+D from before by the same poster under a new name posting old irrelevent news with nothing new to add. More \| View thread (2) \| Respond \| Login to Vote up \| Login to Vote down
Thu 19:33	where are we going with this	offshore 01


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	Hi all of a sudden the board's become lively with old news anyone got some updated news as 2010world cup draw is only weeks away and hopefully some good will come out of it for this company????? More \| View thread (2) \| Respond \| Login to Vote up \| Login to Vote down
Tue 15:03	Re: BUY LIMITS CRASHED NOW 250K MAX FROM...	bones300


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	max buy now 250k@0.7 More \| View thread (2) \| Respond \| Login to Vote up \| Login to Vote down

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