Net Profit Down Due to Accounting Treatment

Hong Kong, Aug 31, 2011 - (ACN Newswire) - Flyke International Holdings Ltd ("Flyke International" or "the Company"; stock code 1998.hk) announced 2011 interim results for the 6 months ended 30 June 2011 (the "Review Period") on 26 August. For the Review Period, the aggregate turnover of Flyke International amounted to RMB 712.3 million, representing an increase of 12.7% as compared with same period in 2010 while the gross profit increased by 19.1% to RMB 204.1 million for the Review Period.

Profit of the Company for the year decreased from RMB 73.5 million for the period ended 30 June 2010 to RMB 55.6 million for the Review Period. The significant reduction in profit for the year by 24.3% for the Review Period was attributable to the accounting treatment of recognition of RMB 28.8 million related to the change of fair value of derivative financial liabilities as a result of 96,000,000 share options granted to an investor in June 2011, and of RMB 19.4 million related to the equity-settled share based payments arising from the share options granted to the eligible employees and directors. 

Source:acnnewswire