GRANDY CORP<08143> - Results Announcement (Final, 2005/2006, Summary) (Revised)


Grandy Corporation announced on 27 June 2006:
(stock code: 08143 )

Year end date                         :31 March 2006
Currency                              :HKD
Auditors' report                      :Unqualified


Important Note :

This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com

                                            ( Audited)         (Audited)
                                              Current Last Corresponding
                                               Period            Period
                                     from 1 April 2005 from 1 April 2004
                                      to 31 March 2006 to 31  March 2005
                                                 $'000             $'000

Turnover                              :         41,088            34,230
Profit/(Loss) from Operations         :          3,954           (6,378)
Finance cost                          :          (299)             (288)
Share of Profit/(Loss) of Associates  :            N/A               N/A
Share of Profit/(Loss) of Jointly
         Controlled Entites           :            N/A               N/A
Profit/(Loss) after Taxation & MI     :          3,191           (7,045)
% Change Over the Last Period         :            N/A
EPS / (LPS)
          Basic (in dollar)           :     HKD 0.0073      (HKD 0.0205)
          Diluted (in dollar)         :     HKD 0.0063               N/A
Extraordinary (ETD) Gain/(Loss)       :            N/A               N/A
Profit (Loss) after ETD Items         :         3,191            (7,045)
Final Dividends per Share             :            NIL               NIL
(specify if with other options)       :            N/A               N/A
B/C Dates for Final Dividends         :            N/A
Payable Date                          :            N/A
B/C Dates for (-) General Meeting     :            N/A
Other Distribution for Current Period :            NIL
B/C Dates for Other Distribution      :            N/A
                                       (bdi: both days inclusive)

For and on behalf of
Grandy Corporation

Signature :
Name      : Shum Ngai Pan
Title     : Director

Responsibility statement

The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for the
accuracy of the information contained in this results announcement form
(the "Information") and confirm, having made all reasonable inquiries,
that to the best of their knowledge and belief the Information are
accurate and complete in all material respects and not misleading and
that there are no other matters the omission of which would make the
Information herein inaccurate or misleading.The Directors acknowledge
that the Stock Exchange has no responsibility whatsoever with regard to
the Information and undertake to indemnify the Exchange against all
liability incurred and all losses suffered by the Exchange in connection
with or relating to the Information.

Remarks:
	
1. Basis of Preparation
	
The measurement basis used in the preparation
of the financial statements is historical cost convention and
modified by the revaluation of available-for-sale financial assets,
which are carried at fair value.
	
The financial statements have been prepared in accordance with
Hong Kong Financial Reporting Standards ("HKFRSs") (which also include
Hong Kong Accounting Standards ("HKASs") and Interpretations)
issued by the Hong Kong Institute of Certified Public
Accountants ("HKICPA"), accounting principles generally
accepted in Hong Kong and the disclosure requirements of the Hong Kong
Companies Ordinance and applicable disclosure provisions of the
GEM Listing Rules of the Stock Exchange.
	
2. Application of Hong Kong Financial Reporting Standards/
Change in Accounting Policies
	
The HKICPA has issued a number of new and revised
Hong Kong Financial Reporting Standards and Hong Kong Accounting
Standards ("collectively referred to as the "new HKFRS")
which are effective for accounting periods commencing on or
after 1 January 2005.  The Group adopted these new and revised
standards and interpretations of HKFRSs in its financial statements
for the year ended 31 March 2006, which are relevant to its operations.
The financial statements for the year ended 31 March 2005
have been restated in accordance with the relevant requirements.
A summary of the effect on initial adoption of these new and
revised HKFRSs is as follows:
	
The adoption of new and revised HKASs 2, 7, 8, 10, 12, 14, 16,
17, 18, 19, 23, 27, 33, 37, 38, HKAS-Int 15 and HKFRS 5 did not
result in substantial changes to the Group's accounting policies.
The impact of adopting the other HKFRSs is summarised as follows:
	
HKAS 1 has affected the presentation of minority interest, share
of net after-tax results of associates and other disclosures.
the consolidated balance sheet, minority interests are now
shown within total equity.  In the consolidated income statement,
minority interests are presented as an allocation of
the total profit or loss for the year.
	
HKAS 21 had no material effect on the Group's policy.  The functional
currency of each of the consolidated entities has been
re-evaluated based on the guidance to the revised standard.
All the group entities have the same functional currency as the
presentation currency for respective entity financial statements.
	
HKAS 24 has affected the identification of related parties
and some other related-party disclosures.
	
The adoption of HKASs 32 and 39 has resulted in a change
in the accounting policy for recognition, measurement, derecognition
and disclosure of financial instruments.
	
Under HKAS 32, convertible notes issued are split
into their liability and equity components at initial recognition by
recognising the liability component at its fair value which is
determined using a market interest rate for equivalent non-convertible
notes and attributing to the equity component the difference
between the proceeds from issue and the fair value of the
liability component.  The liability component is subsequently carried at
amortised cost.  The equity component is recognised in the
convertible notes reserve until the notes are either converted
in which case it is transferred to share premium) or redeemed
(in which case it is released directly to retained earnings).
	
In prior years, convertible notes were stated at face value.
The finance cost was accrued using effective interest rate method.
The issuance costs incurred for the arrangement of convertible note were
charged to the income statement in the year of issue.  Retrospective
application is required for adoption of HKAS 32.  As the
Group had no convertible notes at 31 March 2005, no prior year
adjustment is required.
	
The adoption of HKFRS 2 has resulted in a change in
the accounting policy for share-based payments.  With
effect from 1 April 2005, the Group recognises the fair value of
share options granted as an expense in the income statement
over the vesting period with a corresponding increase being recognised
in share-based payment reserve.  The share-based payment reserve
is transferred to share capital and share premium, together with the
exercise price, when the option holder exercises its rights.
In prior years, no amount was recognised when options were granted.
If the option holders chose to exercise the options, the nominal
amount of share capital and share premium were credited only to the
extent of the option's exercise price receivable.  As a transitional
provision, the cost of share option granted after 7 November
2002 and had not yet vested on 1 April 2005 were expensed
retrospectively in the income statement of the respective periods.
	
The outstanding share options at 31 March 2005 are
all granted before 7 November 2002 and vested before April 2005, no
prior year adjustment is required.
	
The adoption of HKFRS 3, HKAS 36 and HKAS 38 results in
a change in the accounting policy for positive goodwill and
negative goodwill and prospective application is required.
Until 31 March 2005, positive goodwill was capitalised
and amortised on a straight-line basis over its useful economic
life of 5 years and was subject to impairment testing when
there were indications of impairment.
	
In accordance with the provisions of HKFRS 3, the Group
ceased amortisation of goodwill from 1 April 2005 and the
accumulated amortisation as at 31 March 2005 has been eliminated
with a corresponding decrease in the cost of goodwill.  From the year
ended 31 March 2006 onwards, goodwill is tested annually for impairment.
	
The Group has reassessed the useful lives of its intangible
assets in accordance with the provisions of HKAS 38.  No
adjustment resulted from this reassessment.
	
The adoption of HKAS-Int 21 has resulted in a change in the
accounting policy relating to the measurement of deferred
tax liabilities arising from the revaluation of investment properties.
Such deferred tax liabilities are measured on the basis of
tax consequences that would follow from recovery of the
carrying amount of that asset through use.  In prior years, the carrying
amount of that asset was expected to be recovered through sale.
As the Group had no investment properties at 31 March
2005 and 2006, no adjustments are required.
	
3. EARNINGS / (LOSS) PER SHARE
	
The calculation of the basic earnings / (loss) per share is based
on the net profit for the year of approximately HK$3,191,000 (2005: loss
of approximately HK$7,045,000) and the weighted average
number of 438,751,909 (2005: 344,119,576 (restated)) shares in issue 
during the year after adjusting for the effects of the right issues
on 11 April 2006.  The basic loss per share for
2005 has been adjusted accordingly.
	
Diluted earnings per share is calculated adjusting the weighted average
number of ordinary shares outstanding to assume conversion
of all dilutive potential ordinary shares.  The
Company has two categories of dilutive potential
ordinary shares: convertible notes and share options.
	
The convertible notes are assumed to have been converted
into ordinary shares and the net profit is adjusted to eliminate
the interest expenses less the tax effect.
	
For the share options, a calculation is done to determine
the number of shares that could have been acquired at fair value
(determined as the average annual market share
of the Company's shares) based on the
monetary value of the subscription rights attached to
outstanding share options. The number of shares calculated as
above is compared with the number of shares that would have
been issued assuming the exercise of the share options.
	
4. Dividend
	
The directors do not recommend the payment of any dividend
in respect of the year ended 31 March 2006 (2005: Nil).
	
5. Turnover
	
                                               2006         2005
                                            HK$'000       HK$'000
	
Manufacture and sales of environmental
protection products                         8,682          9,737
Manufacture and sales of melamine and its
related products                            7,242           -
Installation, engineering and management
of wastewater treatment systems and
environmental facilities, provision
of environmental analyses and
measurement services                       25,164          24,493
	
          Total                            41,088          34,230