China Energine International Hldgs : annual results for the year ended 31 december 2018

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

CHINA ENERGINE INTERNATIONAL (HOLDINGS) LIMITED 中 國 航 天 萬 源 國 際（集 團）有 限 公 司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1185)

ANNUAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2018

The board (the "Board") of directors (the "Director(s)") of China Energine International (Holdings) Limited (the "Company") hereby announces the audited consolidated annual results of the Company and its subsidiaries (collectively, the "Group") for the year ended 31 December 2018 together with the comparative figures for the year ended 31 December

2017 as follows:

C O N S O L I D A T E D S T A T E M E N T O F P R O F I T O R L O S S A N D O T H E R COMPREHENSIVE INCOME

For the year ended 31 December 2018

		2018		2017
	NOTES	HK$'000		HK$'000
				(Restated)
Continuing operations		75,759
Turnover	3			263,414
Cost of sales		(67,434)		(228,844)
Gross profit		8,325		34,570
Other income	4	24,283		16,071
Other gains and losses	5	(247,532)		(15,737)
Impairment losses, net of reversal, on		(727,193)
financial assets and contract assets	6			(128,660)
Selling and distribution expenses		(73,007)		(40,746)
Administrative expenses		(165,525)		(157,534)
Finance costs	7	(82,546)		(74,489)
Share of results of associates		(129,834)		(27,854)
Share of results of joint ventures		76,177		166,127
Loss before taxation	8	(1,316,852)		(228,252)
Taxation	9	(580)		(5,165)
Loss for the year from continuing
		(1,317,432)
operations				(233,417)

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		2018			2017
	NOTES	HK$'000			HK$'000
					(Restated)
Discontinued operations
Loss for the year from discontinued		(12,714)
operations	10				(14,531)
Loss for the year		(1,330,146)			(247,948)
Other comprehensive (expense) income:
Item that will not be reclassified to profit
or loss
- exchange differences arising on		(66,293)
translation to presentation currency					151,807
Total comprehensive expense for the year		(1,396,439)			(96,141)
Loss for the year attributable to owners of
the Company		(1,307,811)
- from continuing operations					(225,451)
- from discontinued operations		(12,714)			(11,647)
		(1,320,525)			(237,098)
Loss for the year attributable to
non-controlling interests		(9,621)
- from continuing operations					(7,966)
- from discontinued operations		-			(2,884)
		(9,621)			(10,850)
Loss for the year		(1,330,146)			(247,948)
Total comprehensive expense
attributable to:		(1,384,076)
Owners of the Company					(90,776)
Non-controlling interests		(12,363)			(5,365)
		(1,396,439)			(96,141)
Loss per share - Basic	12
From continuing and discontinued		HK(30.22) cents
operations					HK(5.43) cents
From continuing operations		HK(29.93) cents			HK(5.16) cents

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 December 2018

		2018		2017
	NOTES	HK$'000		HK$'000
Non-current assets
Investment properties		133,531		149,538
Property, plant and equipment		238,574		303,926
Goodwill		2,004		2,004
Intangible assets		63,165		212,654
Deferred tax assets		1,643		1,784
Interests in associates		206,108		348,268
Interests in joint ventures		1,015,299		1,192,284
Amount due from joint ventures		104,165		106,468
Financial assets at fair value through
other comprehensive income		4,908		-
Available-for-sale investments		-		5,144
		1,769,397		2,322,070
Current assets
Inventories		78,291		163,526
Trade and other receivables	13	1,760,599		2,923,476
Contract assets		304,759		-
Amounts due from associates		252,457		303,467
Amount due from a joint venture		20,089		25,196
Pledged bank deposits, bank balances
and cash		88,838		107,934
		2,505,033		3,523,599
Current liabilities
Trade and other payables	14	1,467,241		1,734,332
Amounts due to associates		25,876		60,939
Amounts due to joint ventures		2,459		4,030
Government grants		711		775
Warranty provision		259,918		139,091
Taxation payable		1,888		3,256
Borrowings		125,542		1,261,793
Obligation under a finance lease		-		22
		1,883,635		3,204,238
Net current assets		621,398		319,361
Total assets less current liabilities		2,390,795		2,641,431

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	2018	2017
	HK$'000		HK$'000
Non-current liabilities
Government grants	28,123	30,225
Borrowings	1,641,178	488,091
Deferred tax liabilities	18,337	22,237
	1,687,638	540,553
	703,157	2,100,878
Capital and reserves
Share capital	436,900	436,900
Reserves	213,153	1,597,229
Equity attributable to owners of the
Company	650,053	2,034,129
Non-controlling interests	53,104	66,749
Total equity	703,157	2,100,878

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2018

1.BASIS OF PREPARATION

The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"). In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules") and by the Hong Kong Companies Ordinance.

The consolidated financial statements have been prepared on the historical cost basis except for the investment properties and financial assets at fair value through other comprehensive income which are measured at fair value.

2.APPLICATION OF NEW AND REVISED HKFRSs

New and Amendments to HKFRSs that are mandatorily effective for the current year

The Group has applied the following new and amendments to HKFRSs and an interpretation issued by the HKICPA for the first time in the current year:

HKFRS 9

HKFRS 15 HK(IFRIC) - Int 22 Amendments to HKFRS 2

Amendments to HKFRS 4 Amendments to HKAS 28 Amendments to HKAS 40

Financial Instruments

Revenue from Contracts with Customers and the related Amendments Foreign Currency Transactions and Advance Consideration Classification and Measurement of Share-based Payment Transactions Applying HKFRS 9 "Financial Instruments" with HKFRS 4 "Insurance

Contracts"

As part of the Annual Improvements to HKFRSs 2014 - 2016 Cycle Transfers of Investment Property

Except as described below, the application of the above new and amendments to HKFRSs and the interpretation in the current year has had no material impact on the Group's financial performance and position for the current and prior years and/or the disclosures set out in these consolidated financial statements.

2.1HKFRS 15 "Revenue from Contracts with Customers"

The Group has applied HKFRS 15 for the first time in the current year. HKFRS 15 superseded HKAS 18 "Revenue", HKAS 11 "Construction Contracts" and the related interpretations.

The Group has applied HKFRS 15 retrospectively with the cumulative effect of initially applying this standard recognised at the date of initial application, 1 January 2018. Any difference at the date of initial application is recognised in the opening accumulated losses and comparative information has not been restated. Furthermore, in accordance with the transition provisions in HKFRS 15, the Group has elected to apply the standard retrospectively only to contracts that are not completed at 1 January 2018. Accordingly, certain comparative information may not be comparable as comparative information was prepared under HKAS 18 "Revenue" and the related interpretations.

The Group recognises revenue from the following major sources which arise from contracts with customers:

•Sales of wind energy related products

•Sales of electricity from operation of wind power field

•Sales of energy storage and related products

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