Harmony Asset Limited
TSX : HAR

Harmony Asset Limited

November 13, 2009 11:26 ET

Harmony Asset Limited Third Quarter Results Announcement for the Nine Months Ended 30th September, 2009

HONG KONG, CHINA and TORONTO, ONTARIO--(Marketwire - Nov. 13, 2009) - This announcement is made by Harmony Asset Limited (the "Company") (TSX:HAR) (HKEX:428) to comply with Canadian securities law and Toronto Stock Exchange requirements.

The financial data for the nine months ended 30th September, 2009 are based on the internal records and management accounts of the Company and its wholly owned subsidiaries (the "Group"). The financial data and statements have not been audited, reviewed or otherwise verified for accuracy and completeness of information by the auditor of the Company.

The Company's shareholders and potential investors are urged to exercise caution in dealing in the shares of the Company and should consult their own professional advisers if they are in doubt as to their investment position.

FINANCIAL HIGHLIGHTS

The financial highlights of the Group for the nine months ended 30th September, 2009 are summarized as follows:

- Turnover, other revenue and other gains and losses of the Group for the nine months ended 30th September, 2009 were aggregated resulting in a gain of HK$107,309,912 as compared to the loss of HK$5,884,769 in the same period last year, representing a 1,924% increase.

- Net profit attributable to equity holders for the nine months ended 30th September, 2009 was HK$77,512,813 as compared to the loss of HK$19,248,371 in the same period last year, representing a 503% increase.

- Basic earnings per share of the Group was HK cents 198.69 for the nine months ended 30th September, 2009 as compared to a loss of HK cents 49.35 in the same period last year, representing a 503% increase.

The Board of Directors (the "Board") of the Company is pleased to present the unaudited, condensed, consolidated results of the Group for the nine months ended 30th September, 2009 with comparative figures for the corresponding period in 2008 as follows:



UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30TH SEPTEMBER, 2009 AND 31ST DECEMBER, 2008

30th September, 31st December,
2009 2008
(Unaudited) (Audited)
HK$ HK$
Non-current assets
Property, plant and equipment 76,312 136,886
Available-for-sale financial assets 78,542,352 68,058,932
Loans and receivables 7,152,038 20,077,507
--------------- --------------
85,770,702 88,273,325
--------------- --------------

Current assets
Accounts receivable and prepayments 33,463,389 19,383,342
Financial assets at fair value through
profit or loss 86,647,344 72,896,629
Bank balances and cash 80,235,563 10,252,785
--------------- --------------
200,346,296 102,532,756
--------------- --------------

Current liabilities
Accounts payable and accruals 8,092,415 1,786,655
Tax payable 17,738,959 2,825,920
--------------- --------------

25,831,374 4,612,575
--------------- --------------

Net Current assets 174,514,922 97,920,181
--------------- --------------

Total assets less current liabilities 260,285,624 186,193,506

Non-current liabilities
Deferred tax liabilities 2,845,598 2,651,742
--------------- --------------
Net assets 257,440,026 183,541,764
--------------- --------------
--------------- --------------

Capital and reserves
Share capital 39,058,615 39,002,615
Reserves 218,381,411 144,539,149
--------------- --------------
257,440,026 183,541,764
--------------- --------------
--------------- --------------


The accounting policies adopted to prepare the financial statements for the nine months ended 30th September, 2009 are consistent with those used in the annual consolidated financial statements of the Group for the year ended 31st December, 2008.

The financial statements for the nine months ended 30th September, 2009 are unaudited and based on the internal records and management accounts of the Group.



UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT
FOR THE THREE MONTHS AND NINE MONTHS ENDED 30TH SEPTEMBER, 2009

Three months ended Nine months ended
30th September, 30th September,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
HK$ HK$ HK$ HK$

Turnover 812,693 1,966,340 5,562,492 9,678,077
Other revenue 2,999,333 78,415 3,132,452 531,070
Other gains (losses) (14,554,878) (35,824,529) 98,614,968 (16,093,916)
------------ ------------ ----------- -------------

(10,742,852) (33,779,774) 107,309,912 (5,884,769)

Operating expenses
Employee benefit
expenses (557,502) (948,982) (1,874,460) (4,765,838)
Depreciation of
property, plant
and equipment (7,016) (32,602) (60,574) (94,918)
Other operating expenses (5,580,697) (2,900,605) (12,755,170) (9,608,096)
------------ ------------ ----------- -------------

Operating profit (loss) (16,888,067) (37,661,963) 92,619,708 (20,353,621)
Finance costs - - - (96)
------------ ------------ ----------- -------------

Profit (loss) before
income tax (16,888,067) (37,661,963) 92,619,708 (20,353,717)

Income tax (expenses)
credit 1,071,076 3,417,972 (15,106,895) 1,105,346
------------ ------------ ----------- -------------

Profit (loss) for the
period attributable to
equity holders of
the Company (15,816,991) (34,243,991) 77,512,813 (19,248,371)
------------ ------------ ----------- -------------
------------ ------------ ----------- -------------

HK cents HK cents HK cents HK cents
Earnings (loss) per
share
Basic(1) (40.52) (87.80) 198.69 (49.35)
Diluted(2) N/A N/A 198.52 N/A(3)
------------ ------------ ----------- -------------
------------ ------------ ----------- -------------

(1) Basic earnings (loss) per share is calculated by dividing the profit
(loss) attributable to equity holders of the Company by the weighted
average number of the ordinary shares in issue during the period.

(2) Diluted earnings per share is calculated based on the profit
attributable to equity holders of the Company and the weighted average
number of ordinary shares in issue during the period after adjusting for
the number of diluted potential ordinary shares granted under the
Company's share option scheme.

(3) No diluted earnings per share for the nine months ended 30th September,
2008 has been presented as the effect of the assumed conversion of the
outstanding share options is anti-dilutive.


OVERALL PERFORMANCE

For the nine months ended 30th September, 2009, the Group received interest income in the aggregate amount of HK$926,492 as compared to HK$3,372,761 in the same period last year, representing a 73% decrease. Dividend income generated from the listed and unlisted securities was HK$4,636,000 as compared to HK$6,305,316 in the same period last year, representing a 26% decrease. Turnover, or interest and dividend income, for the period was HK$5,562,492 as compared to HK$9,678,077 in the same period last year, representing a 43% decrease. Net realised gain on disposal of listed securities was HK$105,418,596 as compared to HK$6,006,606 in the same period last year, representing a 1,655% increase. Gain on the fair value changes on the listed securities was HK$19,782,881 as compared to a loss of HK$22,076,038 in the same period last year, representing a 190% increase. Turnover, other revenue and other gains and losses of the Group for the nine months ended 30th September, 2009 were aggregated resulting in a gain of HK$107,309,912 as compared to the loss of HK$5,884,769 in the same period last year, representing a 1,924% increase.

For the nine months ended 30th September, 2009, the Group's profit before income tax was HK$92,619,708 as compared to a loss of HK$20,353,717 in the same period last year, representing a 555% increase. The profit attributable to equity holders was HK$77,512,813 as compared to the loss of HK$19,248,371 in the same period lasts year, representing a 503% increase.

CAUTION STATEMENT

The Company's shareholders and potential investors should note that all the figures contained herein are unaudited. Accordingly, figures contained in this announcement should in no way be regarded as any assurance on the financial results of the Group for the period ended 30th September, 2009 and the financial position as at 30th September, 2009.

The Company's shareholders and potential investors are urged to exercise caution in dealing in the shares of the Company and consult their own professional advisers if they are in doubt as to their investment position.

By Order of the Board

Lee Fong Lit David, Chairman

Hong Kong, 13th November, 2009

As at the date of this announcement, the Board of Directors comprises 4 executive directors, namely, Mr. LEE Fong Lit David, Dr. CHOW Pok Yu Augustine, Dr. LAM Andy Siu Wing JP, Mr. CHAN Shuen Chuen and 3 independent non-executive directors, namely, Mr. TONG Kim Weng Kelly, Dr. WONG Yun Kuen and Mr. HO Man Kai Anthony.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Contact Information