China Healthcare : Interim Results 2017 Announcement

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CHINA HEALTHCARE ENTERPRISE GROUP LIMITED

華 夏 健 康 產 業 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1143) INTERIM RESULTS 2017 ANNOUNCEMENT

The board of directors (the "Directors") (the "Board") of China Healthcare Enterprise Group Limited 華夏健康產業集團有限公司(the "Company") is pleased to announce the unaudited consolidated interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2017 (the "Period").

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the six months ended 30 June 2017

Six months ended 30 June
2017	2016
Note	HK$'000	HK$'000
(unaudited)	(unaudited)
Revenue	3	335,046	409,766
Cost of sales	(257,676)	(325,838)
Gross profit	77,370	83,928
Other income	6,385	17,109
Selling and distribution expenses	(22,628)	(24,326)
Administrative expenses	(61,725)	(56,929)
Other operating expenses	(73,794)	(33,459)
Loss from operations	(74,392)	(13,677)
Finance costs	4	(10,799)	(1,818)
Loss before tax	(85,191)	(15,495)
Income tax expense	5	(4,253)	(4,835)
Loss for the period	6	(89,444)	(20,330)
Attributable to:
Owners of the Company	(88,228)	(18,531)
Non-controlling interests	(1,216)	(1,799)
(89,444)	(20,330)
Loss per share
Basic (cents per share)	8	(1.780)	(0.374)
Diluted (cents per share)	N/A	N/A

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2017

Six months ended 30 June
2017	2016
HK$'000	HK$'000
(unaudited)	(unaudited)
Loss for the period	(89,444)	(20,330)
Other comprehensive income for the period, net of tax
Item that will be reclassified to profit or loss:
Exchange differences on translating foreign operations	147	(331)
Exchange difference reclassified to profit or loss on disposal of foreign operations	(73)	-
Fair value change of available-for-sale financial assets	(36,411)	34,145
Reclassification adjustment for loss recognised in respect of available-for-sale financial assets
- Loss on disposal	16,341	-
- Impairment loss	28,127	-
8,131	33,814
Total comprehensive income for the period	(81,313)	13,484
Attributable to:
Owners of the Company	(80,097)	15,283
Non-controlling interests	(1,216)	(1,799)
(81,313)	13,484

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2017

30 June	31 December
2017	2016
Note	HK$'000	HK$'000
(unaudited)	(audited)
ASSETS
Non-current assets
Property, plant and equipment	56,712	60,900
Prepaid lease payments	2,250	2,432
Deferred tax assets	5,466	5,827
Total non-current assets	64,428	69,159
Current assets
Inventories	88,502	100,865
Trade receivables	9	119,612	117,442
Receivables for factoring business	-	14,551
Prepayments, deposits and other receivables	67,550	154,883
Available-for-sale financial assets	29,976	130,224
Financial assets at fair value through profit or loss	7,954	-
Current tax assets	2,494	4,867
Bank and cash balances	289,778	208,293
Total current assets	605,866	731,125
TOTAL ASSETS	670,294	800,284
EQUITY AND LIABILITIES
Equity attributable to owners of the Company
Share capital	4,955	4,955
Reserves	389,795	469,892
394,750	474,847
Non-controlling interests	(2,322)	(11,210)
Total equity	392,428	463,637