Interim Report 2008/2009 - Suga report 2008.pdf · SUGA INTERNATIONAL HOLDINGS LIMITED (Incorporated in Bermuda with limited liability) Stock Code: 912. PHOTOS ON COVER Video Pico

Interim Report 2008/2009

SUGA INTERNATIONAL HOLDINGS LIMITED(Incorporated in Bermuda with limited liability)

Stock Code: 912

PHOTOS ON COVERVideo Pico ProjectorRewarded “2008 HKEIA Gold Award for Outstanding Innovation and Technology”

Suga International Holdings Limited2008/09InterimReport

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Contents

CorporateInformation 2

Chairman’sStatement 3

ManagementDiscussionandAnalysis 6

OtherInformation 9

CondensedConsolidatedInterimBalanceSheet 14

CondensedConsolidatedInterimIncomeStatement 16

CondensedConsolidatedInterimStatementofChangesinEquity 17

CondensedConsolidatedInterimCashFlowStatement 19

NotestotheCondensedConsolidatedInterimFinancialInformation 20


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Corporate InformatIon

Board of DirectorsExecutiveMr.NgChiHo(Chairman)Mr.MaFungOn(Deputy Chairman)Mr.WongWaiLik,Lamson

Independent Non-executiveProfessorWongSookLeung,JoshuaMr.MuraseHiroshiMr.LeungYuMing,Steven

Company SecretaryMr.HuenPoWah

audit CommitteeProfessorWongSookLeung,JoshuaMr.MuraseHiroshiMr.LeungYuMing,Steven

auditorsPricewaterhouseCoopersCertified Public Accountants

Legal advisersMallesonsStephenJaques

principal BankersStandardCharteredBank(HongKong)LimitedTheHongkongandShanghaiBanking CorporationLimitedBankofChina(HongKong)LimitedHangSengBankLimitedDBSBank(HongKong)Limited

registered officeClarendonHouse2ChurchStreetHamiltonHM11Bermuda

Head office and principal place of BusinessUnits1904–719thFloorChevalierCommercialCentre8WangHoiRoadKowloonBayKowloonHongKong

Bermuda principal Share registrarButterfieldFundServices(Bermuda)LimitedRosebankCentre11BermudianaRoadPembrokeHM08Bermuda

Hong Kong Branch Share registrar and transfer officeComputershareHongKongInvestorServicesLimitedShops1712–171617thFloorHopewellCentre183Queen’sRoadEastWanchaiHongKong

public relations ConsultantStrategicFinancialRelationsLimitedUnitA29thFloorAdmiraltyCentreI18HarcourtRoadHongKong

ContactsTelephone:(852)29530383Facsimile:(852)29531523Website:www.suga.com.hkStockcode:912


CHaIrman’S Statement

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OnbehalfoftheBoard,IampleasedtopresenttheinterimresultsofSugaInternationalHoldingsLimited (the“Company”) and its subsidiaries (together “SUGA” or the “Group”) for the sixmonthsended30September2008.

financial performanceDespitetheglobalfinancialturmoilandpoormarketconditionsforthemanufacturing industry,SUGA recorded turnover of approximatelyHK$409.2million for the reviewperiod, up19.2%from HK$343.3 million for the same period last year. The increase in turnover ismainlyattributabletothesolidordersforsomeofourspecialisedelectronicproducts.

TheGroup’s gross profit grew to HK$50.9million compared toHK$45.0million for thecorresponding period of last year. Gross profit margin was 12.4% (2007: 13.1%). Distributionand selling expenses alongwithgeneral and administrative expenses increasedby 4.5%. Theslightlydecrease ingrossprofitmarginandthe increase ingeneralandadministrativeexpenseswasmainlyduetothedrasticincreaseinoperatingcostsinChina,especiallylabourcosts,andtheappreciationoftheRenminbi(”RMB”)againstUnitedStatesdollar(”USD”).Asourboostedefforttoimprovefundmanagementandreducebankborrowings,netfinancecostsduringtheperioddecreasednotably. Profit attributable to shareholders increased by 35.1% toHK$13.1 million(2007:HK$9.7million).Netprofitmarginwas3.2%(2007:2.8%).BasicearningspersharewasHK5.69cents(2007:HK4.22cents).

Interim DividendTheBoardhas resolved to declare an interimdividendofHK2.0 cents per share (2007:HK1.0cent)fortheperiodpayabletoshareholderswhosenamesappearontheregisterofshareholdersoftheCompanyon2January2009.The interimdividendwillbepaidonorbefore16January2009.Thisdividendrepresentsapproximately35.1%ofthenetprofitofSUGAforthefirsthalfofthefiscalyear.

Business overviewConsumer electronic productsContinuous efforts of the Group to focus on specialised electronic products during the periodpaid off, as reflected by the27.8% increase in sales of this segment toHK$342.7million, ascomparedwiththecorrespondingperiodlastyear.Thesectorwasourmainsourceofrevenueforthereportingperiod,whichaccountedfor83.7%oftheGroup’stotalsales.

A key revenue contributor of thebusiness segment, pet trainingdevices, achieved satisfactorygrowthandsolidincomeduringtheperiod.Suchgrowthclearlyindicatedtheeconomicdownturnhasnotaffectedspendingonpetsbytheirowners.Apart fromcontributingsignificantrevenuetotheGroup,wearealsopleasedtonotethatour“SprayPetTrainingProducts” linewonthecustomer’s“InnovationAwardof2008”inAugust2008.



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Our interactive educational products tailored specially for schools also delivered impressiveperformance. Their sales surged by three folds against the last corresponding period. Wemanufacture the central systemand the student learningdevices for use in the classroomenvironment.WithinteractiveeducationbecomingmorepopularintheUnitedStatesofAmerica(“US”)andEurope,ourproductshaveenormousroomforgrowthinthosemarkets.

Another branch of our specialised electronic products businesswas the electronic ticketprocessors.Thoughstill amodestactivity, salesof suchdevicesdoubled in thepast sixmonthscomparedwith thesameperiod lastyear.Thecustomer is currently selling theelectronic ticketprocessors in theAsian Pacific Region and Europe. We are confident of receiving more ordersfromthiscustomerasitsproductscontinuetopenetratethemarket.

As for other general consumer electronic products, such as Bluetooth headsets and electronichome appliances, their sales declined. TheGroup took it as an indication of the need to shiftfocusandreallocateresourcestonicheandspecialisedproductswithhighermargins.

telecommunication productsRevenuefromthetelecommunicationproductssegmentdeclinedby11.4%toHK$66.5millionand accounted for 16.3% of the Group’s total turnover. The decline was mainly due to thedeparture of a network product customer. However, we received solid orders from existingJapanese customers for key telephone systems and voice-over-internet protocol (VoIP) phones,whichhadhelpedtomoderatethelossinrevenueandprofitcausedbydepartureofthatnetworkproductcustomer.

prospectsWewill continue to focus on manufacture of niche products that have higher margins andare resilient in theunstable economic environment in our strive to assume leadership in thespecialised electronic products segment. In September 2008, we secured new orders from aleadingUSprofessionalaudioequipmentcompany.Thenewcustomerexpressedconfidence inour capabilities and skilledworkforce, proving that opportunities are still available for capablemanufacturers like SUGA in difficult times. We expect this new customer to bring significantrevenuetotheGroupinthesecondhalfofthisfiscalyear.

Togrowourcustomerbase,wewillcontinuetostrengthenourresearchanddevelopment(“R&D”)capabilities. The Group is committed to providing customers with value-adding total solutions,andindoingsohopestobolsterSUGA’spositionasanoriginaldesignmanufacturer.Tothisend,werecentlyforgedpartnershipwithatechnologycompanytodevelopaVideoPicoProjector.TheprojectorwontheGoldAwardattheHKEIAAwardforOutstandingInnovationandTechnologyProducts 2008 (Portable ElectronicsCategory) bearingwitness to our strongR&D capabilities.We expect thenewmini-video projector will be well received by themarket and contributerevenuegrowthoftheGroupinthecomingfiscalyear.Wearealsoconfidentthatourcontinuousresearcheffortwilldevelopmorehigh-marginproductsthatcanturnintostrongincomesourcesfortheGroupinthefuture.



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Remainingpositivethatthecurrenteconomicdownturnwillbringaboutaconsolidationperiodwhichwillweedout less competitiveplayers, SUGA is certainly in a strongposition to capturemoremarketshare.TheGrouphasacashbalanceofoverHK$75millionandalsohassignificantbanking facilities at ourdisposal, givingusgreat flexibility inpursuingbusiness expansion if sodesired.However,wewillcarefullyassessopportunitiespresentedtouswiththebestinterestofshareholdersinmind.

appreciationOnbehalfofSUGA, Iwould like toextendmyheartfeltappreciationto themanagement teamandallstafffortheireffortsandcontributionduringthereviewperiod.Iwouldalsoliketoextendmygratitudetoourbusinessassociates,customersandshareholdersfortheircontinuoussupport.

Onbehalfoftheboardofdirectorsng Chi HoChairman

HongKong,10December2008


manaGement DISCUSSIon anD anaLYSIS

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financial reviewrevenueDuringthesixmonthsended30September2008,theGrouphasachievedcontinuousgrowthinturnoverandnetprofitattributabletoequityholders.TotalrevenueincreasedtoHK$409million,representinganincreaseofHK$66millionor19.2%ascomparedwiththatofthecorrespondingperiod last year. The increase was mainly attributable to the significant increase in sales ofinteractiveeducationalproductstogetherwiththesteadygrowthinsalesofpettrainingdevices.

Intermofbusinesssegment,consumerelectronicsproductsremainthemajorincomecontributorof theGroup. This segment achieved sales growth of 27.8% to reachHK$343million, whichaccountedfor83.7%oftheGroup’stotalrevenue.Salesofpettrainingdevicesremainhealthyandaccountedfor35.7%of thissegment’s total sales for thesixmonthsperiodunder review.Sales of interactive educational products increased significantly during theperiodunder reviewandcontributedatotalof30.9%tothissegment.

Geographically, revenuewasmoreevenly spreadbetween theUS, theAsianand theEuropeanmarketsduring theperiodunder review.Sales toUS increased toHK$149.0millionduring theperiod, representing 36.4% of theGroup’s revenue. The increase wasmainly contributed byhealthy growthof pet trainingdevices and sales of photo albumunderODMbasis.With thesignificant growth of sales of interactive educational products during the six months period,revenuefromEuropeanmarketwasupliftedby85.1%toHK$120.5million,representing29.5%oftheGroup’stotalrevenue.SalestotheAsianmarketremainedsteadyduringtheperiodandrepresented30.3%tothissegment.

profit attributable to equity Holders of the CompanyDespite continuous increase in labour and material costs, and appreciation in Renminbi, theGroupstillmanagedtomaintainahealthygrossprofitmarginat12.4%duringtheperiodunderreview.TheGroup’sgrossprofitwasupby13.1%toHK$50.9million.

OperatingprofitwasHK$16.0million, comparedwithHK$11.5millionof the correspondingperiodlastyear,anincreasedofHK$4.5millionor39.4%.Theincreasewasmainlycontributedbythe increase insales.Distributionandsellingexpensesalongwithgeneralandadministrativeexpenses increasedby4.5%during theperiod,whichwasmainlydue to increase inoperatingcostinChinaandappreciationofRMBagainstUSdollars.

Finance costs for theperioddroppedby 25.1% toHK$1.2million fromHK$1.5million ascomparedtocorrespondingperiodlastyear.Thedecreasewasresultedfrombetterfundcontrolbythemanagement.



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Asaresultoftheaforementionedfactors,theGroup’sprofitattributabletoequityholdersfortheperiodincreasedby35.1%toHK$13.1million.

Liquidity and financial resourcesAs at 30 September 2008, net current assets of the Group maintained at a healthy level ofHK$209.2millionwitha liquidityratioof2.44(31March2008:2.67).Gearingratio(calculatedbydividingtotalbankborrowingsbytotalequity)decreasedto7.8%from11.5%asat31March2008.TheGroupwasabletomaintainanetcashpositionofHK$54.0millionasat30September2008(31March2008:HK$34.4million).

Asat30September2008,theGrouphadaggregatebankingfacilitiesofapproximatelyHK$448million(At31March2008:HK$439million)fromitsprincipalbankersforoverdrafts, loansandtradefinancing,withunusedfacilitiesofHK$380million(31March2008:HK$354million).

TheGroupgenerallyfinancesitsbusinessoperationsbyinternalgeneratedresourcesandbankingfacilities provided by its principal bankers in Hong Kong. Banking facilities used by the Groupinclude revolvingbank loans, trust receipt loans, overdrafts, leasing and term loans,which areprimarilyonfloatinginterestrates.

Capital expendituresTheGroup’stotalcapitalexpendituresfortheperiodunderreviewwasHK$6.9millionofwhichmainly comprised investment inmachineries and equipment for productionplants inMainlandChina.

foreign exchange exposureMostoftheGroup’sbusinesstransactionsaredenominatedeitherinHKD,USDorRMB.AsUSDispeggedtoHKD,theGroupdoesnotexpectanysignificantmovementsintheUSD/HKDexchangerate.

AsalloftheGroup’sproductionplantsarebasedinthePeople’sRepublicofChina,mostofthewages, salaries and manufacturing overheads aremainly denominated in RMB. The continuedappreciations of RMB inevitably increase our production costs. However, the appreciation oftheRMBwasslowdownduring theperiodunder review,andweexpect theexchange rateofRMBagainstUSDwillremainsteadyinthesecondhalfofthisfiscalyear.TheGrouphasenteredintoseveralforeignexchangecontractstominimisethecurrencytranslationriskofRMBagainstHKD/USD.

pledge of assetsAsat30September2008, theGroupdidnotpledgeanyof its assets (31March2008:nil) assecuritiesforgeneratingbankingfacilitiesgrantedtotheGroup.



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Capital Commitments and Contingent LiabilitiesAsat30September2008,theGrouphadnooutstandingcapitalcommitment(31March2008:nil).CorporateguaranteesgivenbytheCompanytobankstosecuretheborrowingsgrantedtosubsidiariesasat30September2008amountedtoHK$61.6million (31March2008:HK$77.3million)andtheGroupdidnothaveanyothercontingentliabilities.

Human resourcesAs at 30 September 2008, the Group had approximately 1,973 employees, of which 72 werebased inHongKongandMacaowhile the restweremainly inMainlandChina. Remunerationpolicywasreviewedregularly,makingreferencetocurrentlegislation,marketconditionandboththe individual and company performance. In addition to salaries and other usual benefits likeannualleave,medicalinsuranceandvariousmandatorypensionschemes,theGroupalsoprovideseducational sponsorship subsidies,discretionaryperformancebonusand shareoptions.A shareoptionschemewasadoptedon17September2002thatisvalidandeffectiveforaperiodof10yearsfromtheadoptiondate.TheprincipaltermsofshareoptionschemeareasdisclosedintheCompany’s2007/08AnnualReport.


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Interim DividendTheBoardhasresolvedtodeclareaninterimdividendofHK2.0centspershareforthesixmonthsended30September2008(2007:HK1.0cent)payabletoshareholderswhosenamesappearontheregisterofshareholdersoftheCompanyon2January2009.Theinterimdividendwillbepaidonorbefore16January2009.

Closure of registerThe register of shareholders of theCompanywill be closed from30December 2008 to2January 2009 (bothdays inclusive) duringwhichperiodno transfer of shareswill be effected.Inorder toqualify for the interimdividend,all transfersof sharesaccompaniedby the relevantshare certificatesmust be lodged with the Company’sHong Kong branch share registrar,ComputershareHongKongInvestorServicesLimited,Shops1712–16,17/F.,HopewellCentre,183Queen’sRoadEast,Wanchai,HongKongnotlaterthan4:30p.m.onMonday,29December2008forregistration.

purchase, Sale or redemption of Listed SecuritiesTheCompanydidnotredeemanyofitssharesduringtheperiod.NeithertheCompany,noranyofitssubsidiariespurchased,redeemedorsoldanyoftheCompany’ssharesduringtheperiod.

Compliance with the Code of Corporate Governance practicesTheCompanyhadcompliedwith the codeofprovisionsas setout in theAppendix14“Codeof Corporate Governance Practices” to the Listing Rules (the “Code”) throughout theperiod,exceptthedeviationfromthecodeprovisionA.2.1.AccordingtothecodeprovisionA.2.1oftheCode,therolesofChairmanandChiefExecutiveOfficershouldbeseparateandshouldnotbeperformedbythesameindividual.Uptothedateofthisinterimreport,theCompanydoesnothaveaseparateChairmanandChiefExecutiveOfficerandMr.NgChiHocurrentlyholdsbothpositions. TheBoardbelieves that vesting the rolesofChairmanandChief ExecutiveOfficer inthesamepersonprovides theGroupwithstrongandconsistent leadership in thedevelopmentandexecutionoflong-termbusinessstrategies.Goingforward,theGroupwillperiodicallyreviewtheeffectivenessof thisarrangementandconsidersappointingan individualasChiefExecutiveOfficerwhenitthinksappropriate.

Compliance with the model Code of Securities transactions by DirectorsTheCompanyhasadoptedtheModelCodeforSecuritiesTransactionsbyDirectorsassetoutinAppendix10totheListingRulesasitsowncodeofconductregardingsecuritiestransactionsbythedirectorsoftheCompany(the“ModelCode”).Havingmadespecificenquiryofalldirectors,thedirectorshaveconfirmedcompliancewiththerequiredstandardsetout intheModelCodeduringthesixmonthsended30September2008.


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public floatBased on the information publicly available to the Company and within the knowledge of theDirectors,asatthedateofthisreport,therewassufficientpublicfloatofnotlessthan25%oftheCompany’sissuedsharesasrequiredundertheListingRules.

audit CommitteeTheAuditCommitteehasreviewedwiththemanagementtheaccountingpoliciesandpracticesadopted by theGroup anddiscussed, among other things, the internal control and financialreportingmatters,includingthereviewoftheunauditedinterimfinancialinformationforthesixmonthsended30September2008.

Directors’ Interests in SharesAsat30September2008,theinterestsandtheshortpositionsofthedirectorsoftheCompanyin the shares, underlying shares anddebentures of theCompany and anyof its associatedcorporations (within the meaning of Part XVof the Securities and Futures Ordinance (“SFO”))whicharerequiredtobenotifiedtotheCompanyandtheStockExchangeofHongKongLimited(the“StockExchange”)pursuanttoDivisions7and8ofPartXVoftheSFO(includinginterestsandshortpositionswhichtheyaretakenordeemedtohaveundersuchprovisionsoftheSFO)orwhicharerequired,pursuanttosection352oftheSFO,tobeenteredintheregisterreferredtotherein,orwhicharerequired,pursuanttotheModelCodeforSecuritiesTransactionbyDirectorsofListedCompanies(the“ModelCode”),tobenotifiedtotheCompanyandtheStockExchangewereasfollows:

Long position(a) Interests in shares and underlying shares of the Company

number of ordinary shares of HK$0.1 each number of percentage underlying of issued shares trust/ ordinary held under personal Corporate family similar other total share equityname of Director interests interests interest interest interest interests capital derivatives (Note1)

Mr.NgChiHo 4,000,000 39,608,000 100,000,000 – – 143,608,000 62.21% 2,000,000 (Note2) (Note3)

Mr.MaFungOn 730,000 9,000,000 – – – 9,730,000 4.22% 3,000,000 (Note4)

Mr.WongWaiLik,Lamson 500,000 – – – – 500,000 0.22% 3,000,000

ProfessorWongSook Leung,Joshua – – – – – – – 500,000

Mr.MuraseHiroshi – – – – – – – 500,000


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Notes:

1. TheserepresenttheinterestsinunderlyingsharesinrespectoftheshareopinionsgrantedbytheCompany,thedetailsofwhicharesetoutinthesub-section“ShareOptionScheme”.

2. 39,608,000sharesareheldbyBillionLinkageLimited,theentireissuedsharesofwhichisheldbyMr.NgChiHoandhisspouseinequalshare.

3. 100,000,000SharesareheldbySuperiorViewInc.,theentireissuedsharesofwhichisultimatelyheldbyFidelitycorpLimitedasthetrusteeoftheC.H.FamilyTrust,thebeneficiariesofwhicharethefamilymembersofMr.NgChiHo.

4. 9,000,000SharesareheldbyGlobalClassEnterprisesLimited,theentireissuedsharesofwhichisheldbyMr.MaFungOn.

(b) Interests in shares of the Company’s associated corporationAsat30September2008,eachofMr.NgChiHoandMr.MaFungOnheldthefollowingnon-voting deferred shares of HK$1 each in Suga Electronics Limited, awholly ownedsubsidiaryoftheCompany.

number of non-votingname of shareholder deferred shares

Mr.NgChiHo(Note) 3,680,000Mr.MaFungOn(Note) 240,000

Note:

The4,000,000non-votingdeferredshares inSugaElectronicsLimitedareheldas to80%byEssentialMixEnterprisesLimitedand20%byBroadwayBusinessLimited.Mr.NgChiHoandMr.MaFungOnhold92%and6%interestsineachofEssentialMixEnterprisesLimitedandBroadwayBusinessLimitedrespectively.Thesenon-votingdeferredshareshavenovotingrights,arenotentitledtodividends,andarenotentitledtoanydistributionsuponwindingupunlessasumofHK$10,000,000,000perordinaryshareshasbeendistributedtotheholdersofordinaryshares.

Save as disclosed above andunder the“ShareOption Scheme”, noneof the aboveDirectorsof theCompanyhave any interests and short positions in the shares, underlying shares anddebentures of the Company and its associated corporations as defined in the SFO as at 30September2008.


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Information of Share option SchemeTheCompanyhas a shareoption schemeadoptedon17September2002 (the“ShareOptionScheme”), underwhich itmaygrant options to eligible participants (includingDirectors of theCompany)tosubscribeforsharesintheCompany.

TheDirectors consider theShareOptionScheme,with itsbroadenedbasisofparticipation,willenable theGroup to reward the employees, Directors andother selected participants for theircontributionstotheGroupandwillalsoassisttheGroupinitsrecruitmentandretentionofhighcaliberprofessionalsexecutivesandemployeeswhoareinstrumentaltothegrowthoftheGroup.

The principal terms of the Share Option Scheme are as disclosed in theCompany’s 2007/08AnnualReport.

Detailsofthesharesoptionmovementsduringtheperiodended30September2008undertheShareOptionSchemeareasfollows:

number of share options outstanding at Granted exercised Lapsed outstanding at exercise 1 april during during during 30 September price exercisable 2008 the period the period the period 2008 (HK$) Date of grant period

Mr.NgChiHo 2,000,000 – – – 2,000,000 1.230 7May2004 7May2004–6May2009

Mr.MaFungOn 1,070,000 – – 1,070,000 – 1.230 5May2003 5May2003–4May2008 1,000,000 – – 1,000,000 1.230 7May2004 7May2004–6May2009 2,000,000 – – – 2,000,000 0.436 23March2007 23March2007–22March2012

Mr.WongWaiLik,Lamson 1,300,000 – – 1,300,000 – 1.230 5May2003 5May2003–4May2008 1,000,000 – – – 1,000,000 1.230 7May2004 7May2004–6May2009 2,000,000 – – – 2,000,000 0.436 23March2007 23March2007–22March2012

ProfessorWongSook 500,000 – – – 500,000 1.230 7May2004 7May2004–6May2009 LeungJoshua

Mr.MuraseHiroshi 500,000 – – – 500,000 1.230 7May2004 7May2004–6May2009

Continuouscontract 2,110,000 – – 2,110,000 – 1.230 5May2003 5May2003–4May2008 employees 800,000 – – 300,000 500,000 1.230 7May2004 7May2004–6May2009 3,200,000 – – – 3,200,000 0.436 23March2007 23March2007-22March2012

Others 1,800,000 – – 1,800,000 – 1.230 5May2003 5May2003–4May2008 (Note1)

500,000 – – – 500,000 1.230 7May2004 7May2004–6May2009 (Note2)

19,780,000 – – 6,580,000 13,200,000


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Notes:

1. The1,800,000 share options are held byMr. FungChi Leung, Markwho resigned as director of theCompanyon31October2004.

2. The 500,000 share options are held byMr. Kyle Arnold Shaw, Jr. who resigned as director of theCompanyon31October2005.

Substantial ShareholdersAsat30September2008,thefollowingpersons(notbeingaDirectororchiefexecutiveoftheCompany)had interestsor shortpositions in thesharesandunderlyingsharesof theCompanywhichdisclosuretotheCompanywasrequiredundertheprovisionsofDivisions2and3PartXVoftheSFOandwhichrecordhadbeenenteredintheregisterkeptbytheCompanypursuanttothesection336oftheSFO.

number ofname of Shareholder ordinary Shares percentage

SuperiorViewInc.(Note1) 100,000,000 43.32%BillionLinkageLimited(Note2) 39,608,000 17.16%Shaw,Kwei&Partners(Asia)Ltd(Note3) 12,500,000 5.42%

Notes:

1. TheentireissuedsharecapitalofSuperiorViewInc.isultimatelyheldbyFidelitycorpLimitedastrusteeoftheC.H.FamilyTrust,thebeneficiariesofwhicharethefamilymembersofMr.NgChiHo.

2. TheentireissuedsharecapitalofBillionLinkageLimitedisheldbyMr.NgChiHoandhisspouseinequalsharesand,assuch,Mr.NgChiHoisdeemedtobeinterestedinallthesharesheldbyBillionLinkageLimitedundertheSFO.

3. The interests in the12,000,000 shares areheldby Shaw,Kwei& Partners (Asia) Limited as ageneralpartneroftheAsianValueInvestmentFundL.P.TheentireissuedsharecapitalofShaw,Kwei&Partners(Asia)LimitedisheldbyMr.KyleArnoldShaw,Jr..

Saveasdisclosedabove,asfaras isknowntotheDirectors, there isnoperson,otherthantheDirectorsandchiefexecutivesoftheCompany,whohasaninterestorshortpositioninthesharesandunderlyingsharesoftheCompanywhichwouldfalltobedisclosedtotheCompanyundertheprovision2and3ofPartXVoftheSFOasat30September2008.


ConDenSeD ConSoLIDateD InterIm BaLanCe SHeet

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as at Asat 30 September 31March 2008 2008 Note HK$’000 HK$’000 (Unaudited) (Audited)

ASSETSNon-currentassets Property,plantandequipment 5 64,989 65,195 Landuserights 6 4,465 4,458 Goodwill 7 1,059 1,059 Interestinanassociate 8 – – Interestinajointlycontrolledentity 9 – – Deferredtaxassets 2,190 3,106 Tradeandotherreceivables 10 4,719 –

77,422 73,818 Currentassets Inventories 138,455 139,664 Tradeandotherreceivables 10 116,105 104,565 Taxrecoverable 1,462 1,293 Amountsduefromajointlycontrolledentity 9 23,121 16,141 Derivativefinancialinstruments – 1,040 Cashandcashequivalents 75,644 64,868

354,787 327,571

Totalassets 432,209 401,389

LIABILITIESCurrentliabilities Tradeandotherpayables 11 108,602 80,186 Incometaxpayable 15,115 14,266 Bankborrowings 12 14,326 19,404 Financeleaseliabilities 13 83 81 Bankadvancesforfactoredreceivables 6,047 6,777 Derivativefinancialinstruments 1,417 1,875

145,590 122,589


ConDenSeD ConSoLIDateD InterIm BaLanCe SHeet

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as at Asat 30 September 31March 2008 2008 Note HK$’000 HK$’000 (Unaudited) (Audited)

Non-currentliabilities Longtermbankborrowings 12 7,273 10,909 Financeleaseliabilities 13 – 42 Deferredtaxliabilities 2,880 2,853

10,153 13,804

Totalliabilities 155,743 136,393

EQUITYCapitalandreservesattributableto theequityholdersoftheCompanySharecapital 14 23,084 23,084Otherreserves 96,040 90,783Retainedearnings –Proposeddividend 4,617 6,925 –Others 152,725 144,204

Totalequity 276,466 264,996

Totalequityandliabilities 432,209 401,389

Netcurrentassets 209,197 204,982

Totalassetslesscurrentliabilities 286,619 278,800


ConDenSeD ConSoLIDateD InterIm InCome Statement

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Six months ended 30 September 2008 2007 Note HK$’000 HK$’000 (Unaudited) (Unaudited)

Revenue 4 409,225 343,254Costofsales 15 (358,318 ) (298,244)

Grossprofit 50,907 45,010

Otherincome 222 86Distributionandsellingexpenses 15 (9,734 ) (9,226)Generalandadministrativeexpenses 15 (25,341 ) (24,350)

16,054 11,520

Financeincome 16 353 157Financecosts 16 (1,154 ) (1,540)

Financecosts–net 16 (801 ) (1,383)

Profitbeforeincometax 15,253 10,137

Incometaxexpense 17 (2,115 ) (409)

Profitfortheperiod 13,138 9,728

Earningspershareforprofitattributableto equityholdersoftheCompanyduringtheperiod –Basic(HKcents) 18 5.69 4.22

–Diluted(HKcents) 18 5.67 4.17

Interimdividend 19 4,617 2,307


ConDenSeD ConSoLIDateD InterIm Statement of CHanGeS In eQUItY

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Forthesixmonthsended30September2008

Unaudited

Share-based compen- Share Share Capital sation exchange retained capital premium reserve reserve reserve earnings total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Asat1April2008 23,084 54,490 10,591 664 25,038 151,129 264,996

Exchangedifferencearising ontranslationof theaccountsof aforeignsubsidiary – – – – 5,257 – 5,257Profitattributableto theequityholdersof theCompany – – – – – 13,138 13,138

total recognised income for the period ended 30 September 2008 – – – – 5,257 13,138 18,395

Dividend paid – – – – – (6,925) (6,925)

as at 30 September 2008 23,084 54,490 10,591 664 30,295 157,342 276,466

representing:proposed dividend 4,617others 152,725

157,342


ConDenSeD ConSoLIDateD InterIm Statement of CHanGeS In eQUItY

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Forthesixmonthsended30September2007

Unaudited

Share-based compen- Share Share Capital sation Exchange Retained capital premium reserve reserve reserve earnings Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Asat1April2007 22,994 54,187 10,591 747 12,917 137,282 238,718

Exchangedifferencearising ontranslationof theaccountsof aforeignsubsidiary – – – – 4,832 – 4,832Profitattributableto theequityholdersof theCompany – – – – – 9,728 9,728

Totalrecognisedincome fortheperiodended 30September2007 – – – – 4,832 9,728 14,560

Exerciseofshareoptions 80 269 – 73 – 73 349Dividendpaid – – – – – (4,609) (4,609)

80 269 – 73 – (4,536) (4,260)

Asat30September2007 23,074 54,456 10,591 674 17,749 142,474 249,018

Representing:Proposeddividend 2,307Others 140,167

142,474


ConDenSeD ConSoLIDateD InterIm CaSH fLoW Statement

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Six months ended 30 September 2008 2007 HK$’000 HK$’000 (Unaudited) (Unaudited)

Netcashgeneratedfromoperatingactivities 33,330 9,226Netcashusedininvestingactivities (6,524 ) (1,356)Netcash(usedin)/generatedfromfinancingactivities (16,833 ) 596

Netincreaseincashandcashequivalents 9,973 8,466Effectofforeignexchangeratechanges 803 3,941Cashandcashequivalents,beginningofperiod 64,868 45,099

Cashandcashequivalents,endofperiod 75,644 57,506


noteS to tHe ConDenSeD ConSoLIDateD InterIm fInanCIaL InformatIon

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1. General informationSuga International Holdings Limited (the “Company”) and its subsidiaries (together, “theGroup”)areprincipallyengagedintheresearchanddevelopment,manufacturingandsalesofelectronicproducts.TheGrouphasoperationsmainlywithinHongKong,MainlandChinaandMacao.

TheCompanywasincorporatedasanexemptedcompanywithlimitedliabilityinBermudaon28September2001.Theaddressof itsregisteredofficeisClarendonHouse,2ChurchStreet,HamiltonHM11,Bermuda.

TheCompany’ssharesarelistedonTheStockExchangeofHongKongLimited.

This condensed consolidated interim financial information was approved for issueon10December2008.

2. Basis of preparationThisunauditedcondensedconsolidatedfinancial informationforthesixmonthsended30September2008hasbeenprepared inaccordancewithHongKongAccountingStandard(“HKAS”)34“InterimFinancialReporting” issuedbytheHongKong InstituteofCertifiedPublicAccountants (“HKICPA”).Thiscondensedconsolidated interimfinancial informationshouldberead inconjunctionwiththeannualfinancialstatementsfortheyearended31March2008,whichhavebeenpreparedinaccordancewithHongKongFinancialReportingStandards(“HKFRS”).

3. accounting policiesTheprincipalaccountingpoliciesandmethodofcomputationusedinthepreparationofthisunauditedcondensedconsolidated interim financial informationare consistentwith thoseusedintheannualfinancialstatementsfortheyearended31March2008,exceptthatthefollowinginterpretationsaremandatoryforfinancialyearending31March2009.

InterpretationrelevantandappliedtotheGroup:

• HK(IFRIC)-Int 11, “HKFRS 2 –Group and Treasury Share Transactions”, providesguidanceonwhether share-based transactions involving treasury sharesor involvinggroupentities (forexample,optionsoveraparent’sshares)shouldbeaccountedforasequity-settledorcash-settledshare-basedpaymenttransactionsinthestand-alonefinancial statements of the parent and group companies. This interpretation doesnothaveanimpactontheGroup’sconsolidatedfinancialstatements.Theimpactonthe stand-alone financial statements of theparentwill be disclosed in the financialstatementsoftheCompanyfortheyearending31March2009.



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3. accounting policies (Continued)InterpretationsnotrelevanttotheGroup:

• HK(IFRIC)-Int12,“ServiceConcessionArrangements”.

• HK(IFRIC)-Int14,“HKAS19–TheLimitonaDefinedBenefitAsset,MinimumFundingRequirementsandtheirInteraction”.

Thefollowingnewstandards,amendmentstostandardsandinterpretationshavebeenissuedbutarenoteffective for the financialyearbeginningon1April2008andhavenotbeenearlyadoptedbytheGroup:

• HKAS1(Revised),“PresentationofFinancialStatements”,effectiveforannualperiodsbeginningonorafter1January2009.TheGroupwillapplyHKAS1(revised)from1April2009.

• HKAS23(Revised),“BorrowingCosts”,effectiveforannualperiodsbeginningonorafter1January2009.TheGroupwillapplyHKAS23(Revised)from1April2009butitiscurrentlynotapplicabletotheGroupastherearenoqualifyingassets.

• HKAS27 (Revised), “ConsolidatedandSeparate Financial Statements”, effective forannual periods beginning on or after 1 July 2009. The Group will apply HKAS 27(Revised)from1April2010.

• HKAS32 (Amendment), “Financial Instruments: Presentation”, and consequentialamendments toHKAS1, “Presentationof financial statements – Puttable FinancialInstruments and Obligations Arising on Liquidation”, effective for annual periodsbeginningonor after1 January2009. TheGroupwill applyHKAS32andHKAS1amendments from 1April 2009, but it is not expected to have any impact on theGroup’sfinancialstatements.

• HKAS 39 (Amendment), “Financial Instruments: Recognition and Measurement”,permits reclassification of certain financial assets out of the held-for-trading andavailable-for-sale categories if specified conditions aremet. The related amendmenttoHKFRS7,“Financial Instruments:Disclosures”, introducesdisclosure requirementswith respect to financialassets reclassifiedoutof theheld-for-tradingandavailable-for-sale categories. The amendments are effective prospectively from 1 July 2008.Theseamendmentsdonothaveany impactontheGroup’s financial statements,astheGrouphasnotreclassifiedanyfinancialassets.



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3. accounting policies (Continued)• HKFRS 1 (Amendment), “First-time Adoption ofHongKong Financial Reporting

Standards”andHKAS27“ConsolidatedandSeparateFinancialStatements”,effectiveforannualperiodsbeginningonorafter1January2009.TheGroupwillapplyHKFRS1(Amendment)andHKAS27(Amendment)prospectivelyfrom1April2009.

• HKFRS 2 (Amendment), “Share-based Payment – Vesting Condit ions andCancellations”,effectiveforannualperiodsbeginningonorafter1January2009.TheGroupwillapplyHKFRS2(Amendment)from1April2009,butitisnotexpectedtohaveanyimpactontheGroup’sfinancialstatements.

• HKFRS3(Revised),“BusinessCombinations”andconsequentialamendmentstoHKAS27, “Consolidated and Separate Financial Statements”,HKAS28, “Investments inAssociates” andHKAS31, “Interests in JointVentures”, effective prospectively tobusinesscombinationsforwhichtheacquisitiondate isonorafterthebeginningofthe first annual reportingperiodbeginningonor after1 July2009. TheGroupwillapplyHKFRS3 (Revised)andconsequentialamendmentstoHKAS27,HKAS28andHKAS31from1April2010.

• HKFRS8,“OperatingSegments”,effective forannualperiodsbeginningonorafter1 January 2009. HKFRS 8 replaces HKAS 14, “Segment Reporting”, and requires a“managementapproach”underwhichsegmentinformationispresentedonthesamebasisasthatusedforinternalreportingpurposes.TheGroupwillapplyHKFRS8from1April2009.Theexpectedimpactisstillbeingassessedindetailbymanagement.

• HK(IFRIC)-Int 13, “Customer Loyalty Programmes”, effective for annual periodsbeginning onor after 1 July 2008.HK(IFRIC)-Int 13 is not relevant to the Group’soperationsbecausenoneoftheGroup’scompaniesoperateanyloyaltyprogrammes.

• HK(IFRIC)-Int 15, “Agreement for theConstructionof Real Estate”, effective forannualperiodsbeginningonorafter1January2009.ItisnotrelevanttotheGroup.

• HK(IFRIC)-Int16,“HedgesofaNet Investment inaForeignOperation”,effectiveforannualperiodsbeginningonorafter1October2008.ItisnotrelevanttotheGroup.

• Improvements toHKFRS which include amendments to a number of standards,effectiveforaccountingperiodsbeginningonorafter1January2009.ManagementisassessingtheeffectofalltheamendmentsontheGroup’sfinancialstatements.



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4. Segmental information(a) primary reporting format – business segments

Six months ended 30 September 2008 Consumer electronic tele- products and communication other products products total HK$’000 HK$’000 HK$’000 (Unaudited) (Unaudited) (Unaudited)

Totalsegmentrevenue 342,683 66,542 409,225

Segmentresults 13,916 1,916 15,832

Otherincome 222Financeincome 353Financecosts (1,154)Incometaxexpense (2,115)

Profitfortheperiod 13,138



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4. Segmental information (Continued)(a) primary reporting format – business segments (Continued)

Sixmonthsended30September2007 Consumer electronic Tele- productsand communication otherproducts products Total HK$’000 HK$’000 HK$’000 (Unaudited) (Unaudited) (Unaudited)

Totalsegmentrevenue 268,111 75,143 343,254

Segmentresults 10,502 932 11,434

Otherincome 86Financeincome 157Financecosts (1,540)Incometaxexpense (409)

Profitfortheperiod 9,728

(b) Secondary reporting format – geographical segments Six months ended 30 September 2008 2007 Segment Segment revenue results Revenue results HK$’000 HK$’000 HK$’000 HK$’000 (Unaudited) (Unaudited)(Unaudited)(Unaudited)

TheUnitedStatesofAmerica 149,002 12,296 124,601 9,459AsianPacificRegion (excludingMainlandChina) 123,810 884 136,810 838Europe 120,546 1,965 65,134 1,034MainlandChina 15,867 687 16,709 103

409,225 15,832 343,254 11,434



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5. property, plant and equipment

HK$’000 (Unaudited)

Six months ended 30 September 2008Openingnetbookamountasat1April2008 65,195Additions 6,930Exchangedifferences 1,088Depreciation (8,224)

Closingnetbookamountasat30September2008 64,989

Six months ended 30 September 2007Openingnetbookamountasat1April2007 78,028Additions 1,513Exchangedifferences 1,093Depreciation (10,294)


6. Land use rights


Six months ended 30 September 2008Openingnetbookamountasat1April2008 4,458Amortisation (66)Exchangedifferences 73


Six months ended 30 September 2007Openingnetbookamountasat1April2007 4,443Amortisation (64)Exchangedifferences 58




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7. GoodwillMovementsofgoodwillduringtheperiodareasfollows:


Six months ended 30 September 2007Netbookamountasat1Apriland30September2007 1,059

at 30 September 2007Cost 1,059Accumulateddepreciation –

Netbookamount 1,059

Six months ended 30 September 2008Netbookamountasat1Apriland30September2008 1,059

at 30 September 2008Cost 1,059Accumulateddepreciation –

Netbookamount 1,059

8. Interest in an associate

as at Asat 30 September 31March 2008 2008 HK$’000 HK$’000 (Unaudited) (Audited)

Shareofnetassets – –

TheGroup’sshareofnetassetsoftheassociaterepresentstheGroup’scostofinvestmentplusits shareof resultsandreserves in theassociate.Under theequitymethodofaccounting,theGroup’sshareoflossesoftheassociateisrestrictedtothecostofinvestment.Asat30September2008,theGroup’sshareoflossoftheassociateexceededitscostofinvestment.Accordingly,theshareofnetassetsoftheassociateisreportedatnilvalue.



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9. Interest in a jointly controlled entity


Shareofnetassets(Note(a)) – –

Amountduefromajointlycontrolledentity(Note(b)) 23,166 16,186Less:provisionforimpairment (45 ) (45)

23,121 16,141

Notes:

(a) TheGroup’s share of net assets of the jointly controlled entity represents the Group’s cost ofinvestmentplus itsshareofresultsandreserves inthe jointlycontrolledentity.Undertheequitymethodofaccounting,theGroup’sshareof lossesofthe jointlycontrolledentity isrestrictedtothecostof investment.Asat30September2008,theGroup’sshareof lossof jointlycontrolledentityexceededitscostofinvestment.Accordingly,theshareofnetassetsofthejointlycontrolledentityisreportedatnilvalue.

(b) Theamountduefromthejointlycontrolledentityisunsecured,non-interestbearingandrepayableondemand.Thecarryingvalueoftheamountduefromthejointlycontrolledentityapproximatesitsfairvalue.

TheGroup’sindirectinterestinajointlycontrolledentity,whichisunlisted,isasfollows:

place of particulars of Interestname incorporation issued shares held held principal activities

Suga-AILimited HongKong, 2sharesofHK$1.00each 50% Tradingof limitedliability electronicproducts company



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9. Interest in a jointly controlled entity (Continued)Theaggregate amountsof revenues, results, assets and liabilities of the jointly controlledentityareasfollows:


financial position

Assets 13,437 10,723

Liabilities 13,482 10,768

Six months ended 30 September

2008 2007 HK$’000 HK$’000 (Unaudited) (Unaudited)

operating results

Revenue 57,039 –

Lossfortheperiod – –

Therearenocontingent liabilities relating to theGroup’s interest in the jointly controlledentity,andnocontingentliabilitiesexistinthejointlycontrolledentityitself.

Asat30September2008,accumulatedlossesofthejointlycontrolledentitynotrecognisedbytheGroupamountedtoHK$40,000(31March2008:HK$40,000).



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10. trade and other receivables


Tradereceivables 117,777 98,038Less:Provisionforimpairment (7,385 ) (10,156)

Tradereceivables,net 110,392 87,882Prepayments 1,234 2,105Rentalandotherdeposits 1,157 7,432Valueaddedtaxreceivables 6,283 6,612Others 1,758 634

120,824 104,565Less:non-currnetportion (4,719 ) –

Currentportion 116,105 104,565

ThecarryingvalueoftheGroup’stradeandotherreceivablesapproximatestheirfairvalue.



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10. trade and other receivables (Continued)Theageinganalysisoftradereceivablesisasfollows:


0to30days 103,141 63,69631to60days 635 6,22061to90days 183 6,79091to180days 465 9,896Over180days 13,353 11,436

117,777 98,038Less:Provisionforimpairment (7,385 ) (10,156)

Tradereceivables,net 110,392 87,882Less:non-currentportion (4,719 ) –

Currentportionoftradereceivables 105,673 87,882

At30 September2008, a subsidiary of theCompanyhad factored trade receivablesof approximatelyHK$6,047,000 (31 March2008:HK$6,777,000) (the“FactoredReceivables”) to banks for cashunder certain receivables purchase agreements.As thesubsidiaryoftheCompanystillretainedtherisksandrewardsassociatedwiththedefaultand delay in payment by the customers, the financial asset derecognition conditions asstipulatedinHKAS39havenotbeenfulfilled.Accordingly,theproceedsfromthefactoringoftradereceivableshavebeenaccountedforastheGroup’sliabilitiesandincludedin“Bankadvancesforfactoredreceivables”.



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11. trade and other payables


0to30days 84,652 55,08231to60days 5,959 6,10861to90days 3,610 1,96391to180days 1,941 4,882Over180days 1,137 2,566

Tradepayables 97,299 70,601Salariesandstaffwelfarepayable 5,926 4,871Accruedexpense 2,932 2,816Others 2,445 1,898

108,602 80,186

12. Bank borrowings


non-currentLongtermbankborrowings 14,546 18,182Less:Currentportionoflong-termbankborrowings (7,273 ) (7,273)

7,273 10,909

CurrentTrustreceiptbankloans 7,053 12,131Otherbankborrowings 7,273 7,273

14,326 19,404

total borrowings 21,599 30,313



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12. Bank borrowings (Continued)Thematurityofborrowingsisasfollows:

trust receipt bank loans Bank borrowings total

as at Asat as at Asat as at Asat 30 September 31March 30 September 31March 30 September 31March 2008 2008 2008 2008 2008 2008 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

(Unaudited) (Audited) (Unaudited) (Audited) (Unaudited) (Audited)

Withinoneyear 7,053 12,131 7,273 7,273 14,326 19,404Inthesecondyear – – 7,273 7,273 7,273 7,273Inthethirdyear – – – 3,636 – 3,636

7,053 12,131 14,546 18,182 21,599 30,313

At 30 September 2008, theGrouphas aggregatebanking facilities of approximatelyHK$448,025,000(Asat31March2008:HK$438,704,000)foroverdrafts, loansandtradefinancing.

UnusedfacilitiesatthesamedateamountedtoapproximatelyHK$380,297,000(Asat31March2008:HK$354,494,000).Certainofthesefacilitiesaresecuredby:

(a) certaininventoriesheldundertrustreceiptsbankloansarrangements.

(b) corporateguaranteeprovidedbytheCompanyandcertainofitssubsidiaries.

Inadditiontotheabove,theGrouphasagreedtocomplywithcertainrestrictivefinancialcovenantsimposedbycertainbanks.



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13. finance lease liabilitiesAt30September2008,theGroup’sfinanceleaseliabilitieswererepayableasfollows:


Withinoneyear 85 85Inthesecondtofifthyear – 42

85 127Less:futurefinancechargesonfinanceleases (2 ) (4)

83 123Less:currentportion (83 ) (81)

– 42

Thepresentvalueoffinanceleaseliabilitiesisasfollows:


Withinoneyear 83 81Inthesecondtofifthyear – 42

83 123



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14. Share capital number of nominal shares value ’000 HK$’000 (Unaudited) (Unaudited)

Authorised–ordinarysharesofHK$0.1each 2,000,000 200,000

Issuedandfullypaid–ordinarysharesofHK$0.1eachAt1April2007 229,940 22,994Issueofsharesuponexerciseofshareoptions 900 90

At31March2008,1April2008and30September2008 230,840 23,084

15. expenses by natureExpenses included in cost of sales, distribution and selling expenses and general andadministrativeexpensesareanalysedasfollows:


Costofinventories 315,237 264,617Staffcosts,includingdirectors’emoluments 41,248 33,482Depreciationofproperty,machineryandequipment –ownedassets 8,182 10,252 –assetsheldunderfinanceleases 42 42Amortisationoflanduserights 66 64Provisionforimpairmentoftradereceivables 29 369(Writtenbackofprovisionfor)/provisionfor obsoleteandslow-movinginventories (104 ) 16Fairvaluelossonderivativeinstruments 582 –Researchanddevelopmentcost 1,486 987Otherexpenses 26,625 21,991

Totalcostofsales,distributionandsellingexpenses andgeneralandadministrativeexpenses 393,393 331,820



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16. finance income and finance costs


Intereston: –bankborrowingswhollyrepayablewithinfiveyears (1,152 ) (1,536) –financeleasesliabilities (2 ) (4)

Financecosts (1,154 ) (1,540)Financeincome 353 157

Financecosts–net (801 ) (1,383)

17. Income tax expenseHongKong profits tax has been provided at the rate of 16.5% (2007: 17.5%)on theestimatedassessableprofitfortheperiod.Taxationonoverseasprofitshasbeencalculatedontheestimatedassessableprofit for theperiodat the ratesof taxationprevailing in thecountriesinwhichtheGroupoperates.


Currentincometax –HongKongprofitstax 645 492 –IncometaxoutsideHongKong 528 110

1,173 602Deferredincometaxrelatingtotheoriginationand reversaloftemporarydifferences 942 (193)

2,115 409



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18. earnings per share(a) Basic

Basic earnings per share is calculated by dividing theprofit attributable to equityholdersoftheCompanybytheweightedaveragenumberofordinarysharesinissueduringtheperiod.

Six months ended 30 September 2008 2007 (Unaudited) (Unaudited)

Profitattributabletoequityholdersof theCompany(HK$’000) 13,138 9,728

Weightedaveragenumberofordinary sharesinissue(‘000) 230,840 230,444

Basicearningspershare(HKcents) 5.69 4.22

(b) DilutedDiluted earningsper share is calculatedby adjusting theweighted averagenumberofordinary sharesoutstandingassumingconversionofalldilutivepotentialordinaryshares.TheCompanyhasonecategoryofdilutivepotentialordinaryshareswhich istheshareoptionsgrantedtoemployees.Fortheshareoptions,acalculationisdonetodeterminethenumberofsharesthatcouldhavebeenacquiredatfairvalue(determinedastheaverageannualmarketpriceoftheCompany’sshares)basedonthemonetaryvalueofthesubscriptionrightsattachedtooutstandingshareoptions.Thenumberofsharescalculatedasabove iscomparedwith thenumberofshares thatwouldhavebeenissuedassumingtheexerciseoftheshareoptions.


2008 2007 (Unaudited) (Unaudited)

Profitattributabletoequityholdersof theCompany(HK$’000) 13,138 9,728

Weightedaveragenumberofordinary sharesinissue(‘000) 230,840 230,444Adjustmentsforshareoptions(‘000) 995 2,827

Weightedaveragenumberofordinary sharesfordilutedearningspershare(‘000) 231,835 233,271

Dilutedearningspershare(HKcents) 5.67 4.17



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19. Interim dividendTheBoardhas resolved to declare an interimdividendofHK2.0 cents per share (2007:HK1.0cent)forthesixmonthsended30September2008payabletoshareholderswhosenames appear on the register of shareholders of theCompany on2 January 2009. Theinterimdividendwillbepaidonorbefore16January2009.

20. operating lease commitmentsAs at 30 September 2008, the Group had future aggregate minimum lease payments inrespectofrentedpremisesundernon-cancellableoperatingleasesasfollows:


Notlaterthanoneyear 3,598 1,527Laterthanoneyearandnotlaterthanfiveyears 2,719 774

6,317 2,301

TheCompanydidnothaveanyothersignificantcommitmentsasat30September2008(Asat31March2008:nil).



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21. related party transactions(a) During the period, the Group has the following related party transactions:


2008 2007 HK$’000 HK$’000

(Unaudited) (Unaudited)

Salesofelectronicsproductsto ajointlycontrolledentity 97,336 –Managementfeereceivedfrom ajointlycontrolledentity 90 –Managementfeepaidto ajointlycontrolledentity 46 –

Note:

IntheopinionoftheDirectors,theabovetransactionswerecarriedoutinthenormalcourseoftheGroup’sbusiness,andconductedattermsmutuallyagreedbytherespectiveparties.

(b) Key management compensation


2008 2007 HK$’000 HK$’000

(Unaudited) (Unaudited)

Salariesandothershort-termemployeebenefits 4,141 3,966Post-employmentbenefits 257 240

4,398 4,206

Documents

Interim Report 2008/2009 - Suga report 2008.pdf · SUGA INTERNATIONAL HOLDINGS LIMITED (Incorporated in Bermuda with limited liability) Stock Code: 912. PHOTOS ON COVER Video Pico