Eratat Lifestyle

davidkie
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10 years 5 months ago #17365 by davidkie

Replied by davidkie on topic Eratat Lifestyle

I have 1 question the tax payable is cacluated based on gross profit or Profit before income tax? As all the while , i have been assuming the tax is base on Profit before income tax ( Gross profit minust all the expenses)

Please correct me if im wrong..

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greenrookie
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10 years 5 months ago #17366 by greenrookie

Replied by greenrookie on topic Eratat Lifestyle

I am no tax expert, there are a few versions.

1) look at tax expenses from P&L

2) look at tax payable from cash flow statement

3) I look at footnote 9 income tax from AR. No matter which one u look, Tax is above 40 million ...

Someone might want to ask the company IR why both haimingwei and quanzhouhongli not appearing in the jinjiang list, there might be a valid explanation

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newbiestock
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10 years 5 months ago - 10 years 5 months ago #17367 by newbiestock

Replied by newbiestock on topic Eratat Lifestyle

Gross Profit (footwear + apparel) - administrative expenses - marketing & sales expenses - salaries - any interest expense from loan if there is etc - depreciation = net profit before tax

Tax is then 25% of net profit before tax.

Greenrookie, the reported AR may include the 17% VAT. U hv to exclude tat and all the maths should work out fine.

Last edit: 10 years 5 months ago by newbiestock.

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greenrookie
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10 years 5 months ago - 10 years 5 months ago #17371 by greenrookie

Replied by greenrookie on topic Eratat Lifestyle

Newbie stock, it is more likely that SAT figures include VAT and Eratat figures exclude it ... I check YZJ 2008 tax numbers with jiangsu SAT numbers, the bureau numbers is higher than what is reported by YZJ. I ask the gurus and valuebuddies, and they mention the possibility of VAT not include in YZJ numbers. It made sense because the AR talks about income tax and nothing else, but the tax bureau collect tax for VAT too. I would think this is serious enough to get a reply from Eratat CFO himself.

Also the tax rate for haimingwei is 25% but 17% for quanzhou hongli, that's why the profits after tax for holding companies, when u work backwards is not always 25%

Last edit: 10 years 5 months ago by greenrookie.

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newbiestock
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10 years 5 months ago - 10 years 5 months ago #17373 by newbiestock

Replied by newbiestock on topic Eratat Lifestyle

greenrookie wrote: Newbie stock, it is more likely that SAT figures include VAT and Eratat figures exclude it ... I check YZJ 2008 tax numbers with jiangsu SAT numbers, the bureau numbers is higher than what is reported by YZJ. I ask the gurus and valuebuddies, and they mention the possibility of VAT not include in YZJ numbers. It made sense because the AR talks about income tax and nothing else, but the tax bureau collect tax for VAT too. I would think this is serious enough to get a reply from Eratat CFO himself.

Thanks greenrookie. I will double check the tax figure again when i hv the time. Will relate the qns to the cfo during the q3 briefing.

By rite the corporate tax n the consumption VAT tax shld be separated.

Last edit: 10 years 5 months ago by newbiestock.

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Oceangrace
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10 years 5 months ago #17380 by Oceangrace

Replied by Oceangrace on topic Eratat Lifestyle

I had sold my entire holding at ard 0.13 plus. However recently taken up again a small position as price looks quite stable and attractive.

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