Harmony Asset Limited
TSX : HAR

Harmony Asset Limited

May 15, 2009 17:22 ET

Harmony Asset Limited: First Quarterly Results Announcement for the Three Months Ended 31st March, 2009

HONG KONG, CHINA and TORONTO, ONTARIO--(Marketwire - May 15, 2009) - Harmony Asset Limited (Incorporated in the Cayman Islands with limited liability) (TSX:HAR)(HKEX:0428)

This announcement is made by Harmony Asset Limited on a voluntary basis to cope with the dual listing requirement in Canada.

The financial data for the three months ended 31st March, 2009 are based on the internal records and management accounts of the Group. These financial 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 are recommended to consult their own professional advisers if they are in doubt as to their investment positions.

FINANCIAL HIGHLIGHTS

The financial highlights of Harmony Asset Limited and its subsidiaries for the three months ended 31st March, 2009 are summarised as follows:

- Turnover, other revenue and other gains of the Group for the three months ended 31st March, 2009 was HK$8,936,098 as compared to HK$13,007,852 in the same period last year, representing a 31% decrease.

- Net profit attributable to shareholders for the three months ended 31st March, 2009 was HK$7,426,024 as compared to HK$8,652,883 in the same period last year, representing a 14% decrease.

- Basic earnings per share of the Group was HK cents 19.04 for the three months ended 31st March, 2009 as compared to HK cents 22.19 in the same period last year, representing a 14% decrease.

The Board of Directors of Harmony Asset Limited (the "Company") is pleased to present the unaudited, condensed, consolidated results of the Company and its subsidiaries (the "Group") for the three months ended 31st March, 2009 with comparative figures for the corresponding period in 2008 as follows:



CONDENSED CONSOLIDATED INCOME STATEMENT
For the three months ended 31st March, 2009
Three months ended
31st March,
2009 2008
(Unaudited) (Unaudited)
HK$ HK$

Turnover 3,246,795 1,737,970
Other revenue 67,119 230,434
Other gains 5,622,184 11,039,448
------------ ------------

8,936,098 13,007,852

Employee benefits expenses (557,995) (610,502)
Depreciation of property, plant and equipment (10,792) (6,250)
Other operating expenses (1,799,287) (2,863,582)
------------ ------------

Operating profit 6,568,024 9,527,518

Finance costs - (81)
------------ ------------

Profit before income tax 6,568,024 9,527,437

Income tax credit (expenses) 858,000 (874,554)
------------ ------------
Profit for the period attributable to
equity holders of the Company 7,426,024 8,652,883

Dividend - -
------------ ------------

7,426,024 8,652,883
------------ ------------
------------ ------------

Earnings per share
Basic 19.04 cents 22.19 cents
Diluted 19.00 cents 22.09 cents

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

Diluted earnings per share is calculated based on the profit
attributable to shareholders, 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.


CONDENSED CONSOLIDATED BALANCE SHEET

As at 31st March, 2009 and 31st December, 2008

31st March, 31st December
2009 2008
(Unaudited) (Audited)
HK$ HK$

Non-current assets
Property, plant and equipment 126,094 136,886
Available-for-sale financial assets 68,329,130 68,058,932
Loans and receivables 12,467,269 20,077,507
------------ ------------

80,922,493 88,273,325
------------ ------------

Current assets
Accounts receivable and prepayments 19,492,796 19,383,342
Financial assets at fair value through profit or
loss 86,632,808 72,896,629
Bank balances and cash 10,532,711 10,252,785
------------ ------------

116,658,315 102,532,756
------------ ------------

Current liabilities
Accounts payable and accruals 1,216,015 1,786,655
Tax payable 2,825,920 2,825,920
------------ ------------

4,041,935 4,612,575
------------ ------------

Net Current assets 112,616,380 97,920,181
------------ ------------

Total assets less current liabilities 193,538,873 186,193,506

Non-current liabilities
Deferred tax liabilities 1,793,742 2,651,742
------------ ------------

Net assets 191,745,131 183,541,764
------------ ------------
------------ ------------

Capital and reserves
Share capital 39,002,615 39,002,615
Reserves 152,742,516 144,539,149
------------ ------------

191,745,131 183,541,764
------------ ------------
------------ ------------

- The accounting policies adopted in preparing the financial data for the
three months ended 31st March, 2009 are consistent with those used in the
annual consolidated financial statements of the Group for the year ended
31st December, 2008.

The financial data for the three months ended 31st March, 2009 are based
on the internal records and management accounts of the Group and are
unaudited.


OVERALL PERFORMANCE

For the three months ended 31st March, 2009, the Group received interest income in the aggregate amount of HK$246,795 as compared to HK$1,437,970 in the same period last year, representing a 83% decrease. Dividend income generated from the unlisted securities was HK$3,000,000 as compared to HK$300,000 in the same period last year, representing a 900% increase. The turnover was HK$3,246,795 as compared to HK$1,737,970 in the same period last year, representing a 87% increase. Gain on the fair value changes on the listed securities was HK$13,736,179 as compared to HK$5,300,329 in the same period last year, representing a 159% increase. The Group recorded turnover, other revenue and other gains of HK$8,936,098 as compared to HK$13,007,852 in the same period last year, representing a 31% decrease. The profit before income tax was HK$6,568,024 as compared to HK$9,527,437 in the same period last year, representing a 31% decrease. The profit attributable to shareholders was HK$7,426,024 as compared to HK$8,652,883 in the same period lasts year, representing a 14% decrease.

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 31st March, 2009 and the financial position as at 31st March, 2009.

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

By Order of the Board

LEE Fong Lit David, Chairman

Hong Kong, 15th May, 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.

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