Listed Company Information

KENFORD GROUP<00464> - Results Announcement

Kenford Group Holdings Limited announced on 16/12/2005:
(stock code: 00464 )
Year end date: 31/03/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee

                                                        (Unaudited )
                                     (Unaudited )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/04/2005    from 01/04/2004
                                     to 30/09/2005      to 30/09/2004
                               Note  ('000      )       ('000      )
Turnover                           : 198,764            252,370           
Profit/(Loss) from Operations      : 3,405              46,542            
Finance cost                       : (2,134)            (1,608)           
Share of Profit/(Loss) of 
  Associates                       : N/A                N/A               
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 1,034              41,226            
% Change over Last Period          : -97       %
EPS/(LPS)-Basic (in dollars)       : 0.00289            0.13742           
         -Diluted (in dollars)     : 0.00287            N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 1,034              41,226            
Interim Dividend                   : 1 cent             N/A
  per Share                                              
(Specify if with other             : N/A                N/A
B/C Dates for 
  Interim Dividend                 : 09/01/2006         to 11/01/2006 bdi.
Payable Date                       : 23/01/2006
B/C Dates for (-)            
  General Meeting                  : N/A   
Other Distribution for             : N/A
  Current Period                     
B/C Dates for Other 
  Distribution                     : N/A   


1. Effect of adopting new HKFRSs

In 2005, the Group adopted the new/revised standards of HKFRSs below, 
which are relevant to its operations.  The 2004 comparative figures have 
been amended as required, in accordance with the relevant requirements.

HKAS 1  Presentation of Financial Statements
HKAS 2  Inventories
HKAS 7  Cash Flow Statements
HKAS 8  Accounting Policies, Changes in Accounting Estimates and Errors
HKAS 10 Events after the Balance Sheet Date
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 21 The Effects of Changes in Foreign Exchange Rates
HKAS 23 Borrowings Costs
HKAS 24 Related Party Disclosures
HKAS 27 Consolidated and Separated Financial Statements
HKAS 32 Financial Instruments: Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 36 Impairment of Assets
HKAS 38 Intangible Assets
HKAS 39 Financial Instruments: Recognition and Measurement
HKFRS 2 Share-based Payment
HKFRS 3 Business Combinations

The adoption of new/revised HKASs 1, 2, 7, 8, 10, 16, 21, 23, 24, 27, 33, 
36 and 38 did not result in substantial changes to the Group's accounting 
policies.  Related impact on presentation of the Group's financials is 
summarized below.

(a)     HKAS 17 - the leasehold interest in the land and buildings is 
separated into leasehold land and leasehold buildings. The leasehold land 
is classified as an operating lease, because the title of the land is not 
expected to be passed to the Group by the end of the lease term, and is 
reclassified from fixed assets to land lease payments, while leasehold 
buildings continue to be classified as part of property, plant and 
equipment. Prepaid land premiums for land lease payments under operating 
lease are initially stated at cost and subsequently amortised on the 
straight-line basis over the lease term. When the lease payments cannot be 
allocated reliably between the land and buildings elements, the entire 
lease payments are included in the cost of the land and buildings as a 
finance lease in property, plant and equipment. This new accounting policy 
has been adopted retrospectively, and the comparative information restated 
to reflect the reclassification of leasehold land.

(b) HKAS 24 - it has affected the identification of related parties and 
some other related party transactions.

(c) HKAS 32 and HKAS 39 - the Group's discounted bills with recourse, 
which were previously treated as contingent liabilities have been 
accounted for collateralised bank advances as the financial assets 
derecognition conditions as stipulated in HKAS 39 have not been fulfilled. 

(d)     HKFRS 3 and HKAS 36 - goodwill arising on acquisition is no longer 
amortised but subject to an annual impairment review. Any impairment loss 
recognised for goodwill is not reversed in a subsequent period. Any excess 
of the Group's interest in the net fair value of the acquirees' 
identifiable assets, liabilities and contingent liabilities over the cost 
of the acquisition of subsidiaries and associates (previously referred to 
as "negative goodwill"), after reassessment, is recognised immediately in 
the income statement.

The transitional provisions of HKFRS 3 requires the Group to eliminate at 
the beginning of the period the carrying amounts of accumulated 
amortisation with a corresponding entry to the cost of the goodwill and to 
derecognise the carrying amounts of negative goodwill against retained 
profits.  The effects of the above changes will have no material impact on 
the financial statements of the Group.

(e)     HKFRS 2 - in the current period, the Group has applied HKFRS 2 
Share-based payment which requires an expense to be recognised where the 
Group buy goods or obtains services in exchange for shares or rights over 
shares ("equity-settled transactions"), or in exchange for other assets 
equivalent in value to a given number of shares or rights over shares ("
cash-settled transactions").  The principal impact of HKFRS 2 on the Group 
is in relation to the expensing of the fair value of directors' and 
employees' share options of the Company determined at the date of grant of 
the share option over the vesting period. The effect of the changes in the 
accounting policy has resulted in the decrease of the net profit for the 
current period by approximately HK$584,000.  Comparative figures had not 
been restated as the Company did not grant any option in prior periods.

All changes in the accounting policies have been made in accordance with 
the transition provisions in the respective standards.  All standards 
adopted by the Group require retrospective application other than HKASs 
16, 21, 39 and HKFRSs 2 and 3.

2.      Earnings per share

The calculation of the basic and diluted earnings per share attributable 
to the ordinary equity holders of the Company is based on the following 
                                        Six months ended 30 September
                                        2005            2004
                                        (Unaudited)     (Unaudited)
                                        HK$'000         HK$'000
Earnings for the purposes of basic and diluted earnings
per share (profit for the period attributable to equity
holders of the Company) 

                                        1,034           41,226
                                        =====           =======
Number of shares:                       
Weighted average number of ordinary shares for
the purpose of basic earnings per share 
                                        358,242         300,000
                                        =======         =======
Effect of dilutive potential ordinary shares:                   
Share options                           2,166           N/A
Weighted average number of ordinary shares for the
purpose of diluted earning per share    
                                        360,408         N/A

The diluted earnings per share for the period ended 30 September 2004 have 
not been calculated as no diluting events existed during the period.