China Huajun : Announcements and Notices –

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CHINA HUAJUN GROUP LIMITED

中國華君集團有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 377)

ANNOUNCEMENT OF AUDITED ANNUAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Reference is made to the announcement (the "Unaudited Annual Result Announcement") of China Huajun Group Limited (the "Company", together with its subsidiaries, the "Group") dated

31 March 2022 regarding the publication of the Company's unaudited annual results ("Unaudited Annual Results") for the year ended 31 December 2021.

Further to the publication of the Unaudited Annual Result Announcement, the board (the "Board") of directors (the "Directors") of the Company") hereby announces its audited annual consolidated results ("Audited Annual Results") for the year ended 31 December 2021, together with the corresponding comparative figures for the year ended 31 December 2020 as follows.

There is no difference between the Audited Annual Results and the Unaudited Annual Results.

1

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2021

		2021			2020
	Notes	RMB'000	RMB'000
Revenue	4
Goods and services		3,496,959			3,497,209
Finance lease income		1,297		616
Interest income from provision of finance		1,886		1,537
Rental income from property investments		11,002		14,069
Dividend from securities investments		1,294	1,780
Others		-	240
Total revenue		3,512,438			3,515,451
Cost of sales and services		(3,438,342)	(3,474,518)
Gross profit		74,096			40,933
Other gains and losses	6	2,535			665
Other income	7	10,590			65,013
Change in fair value of investment properties		(372,744)	(175,975)
Selling and distribution expenses		(102,371)	(134,167)
Administrative expenses		(305,194)	(354,109)
Impairment of goodwill		-	(8,087)
Reversal (impairment loss recognised) in respect of
- trade receivables		11,220	(13,898)
- other receivables		7,521	(74,858)
- loan and interest receivables		-	(11,525)
- property, plant and equipment		(58,093)	(114,366)
- right-of-use assets		(30)	-
Finance costs	8	(1,097,345)	(898,708)
Share of result of an associate		515		518
Gain on disposal of subsidiaries		-	22,393
Change in fair value of convertible bonds
- derivative component		33		4,697
Loss before tax		(1,829,267)	(1,651,474)
Income tax credit	9	45,082			21,630
Loss for the year	10	(1,784,185)	(1,629,844)

2

		2021			2020
	Note	RMB'000	RMB'000
Other comprehensive (expense) income
Items that may be reclassified subsequently to
profit or loss:
Exchange differences on translating of foreign operations		(79,797)	(78,827)
Change in fair value of debt instruments at fair value
through other comprehensive income ("FVTOCI")		(3,375)	(76)
Reclassification adjustment relating to loss (gain) on
disposal of debt instruments at FVTOCI included in
profit or loss		3,300		(1,142)
		(79,872)	(80,045)
Item that will not be reclassified to profit or loss:
Exchange differences on translation to presentation
currency		146,855		98,207
Other comprehensive income for the year		66,983			18,162
Total comprehensive expense for the year		(1,717,202)	(1,611,682)
Loss for the year attributable to:
- Shareholders of the Company		(1,778,008)	(1,573,818)
- Non-controlling interests		(6,177)	(56,026)
		(1,784,185)	(1,629,844)
Total comprehensive expense attributable to:
- Shareholders of the Company		(1,711,029)	(1,555,812)
- Non-controlling interests		(6,173)	(55,870)
		(1,717,202)	(1,611,682)
		RMB	RMB
Loss per share	11
Basic		(28.89)	(25.57)
Diluted		(28.89)	(25.57)

3

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2021

		2021		2020
	Notes	RMB'000	RMB'000
NON-CURRENT ASSETS
Property, plant and equipment		1,553,719		2,028,418
Investment properties		5,075,502	5,159,166
Interest in an associate		30,246	29,731
Deposits for property, plant and equipment		40,959	62,680
Financial assets at fair value through profit or loss
("FVTPL")		23,001	28,998
Other receivables and deposits	12	53,631		101,914
Debt instruments at FVTOCI		-	3,282
Deferred tax assets		7,026	15,730
Right-of-use assets		378,763	524,993
Other non-current asset		2,824	-
		7,165,671		7,954,912
CURRENT ASSETS
Properties held for sale		7,091,240		7,109,134
Inventories		285,077	230,892
Trade and other receivables, deposits and prepayments	12	945,496		1,291,324
Tax recoverable		5,739	23,689
Financial assets at FVTPL		12,735	10,535
Restricted bank balances		7,700	46,878
Pledged bank deposits		10,749	46,946
Bank balances and cash		152,204	219,083
		8,510,940		8,978,481
Assets classified as held for sale		59,139	59,139
		8,570,079		9,037,620

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		2021		2020
	Notes	RMB'000	RMB'000
CURRENT LIABILITIES
Trade and other payables, and other liabilities	13	3,636,931		2,374,295
Bill payables		17,401		428,073
Tax payable		118,289	119,986
Borrowings	14	10,828,687		9,084,328
Contract liabilities		1,287,273		1,490,704
Corporate bonds		12,657	1,699
Convertible bonds - liability component		-	193,935
Convertible bonds - derivative component		-	33
Deferred consideration		74,518	51,020
Lease liabilities		10,943	14,238
		15,986,699		13,758,311
NET CURRENT LIABILITIES		(7,416,620)	(4,720,691)
TOTAL ASSETS LESS CURRENT LIABILITIES		(250,949)	3,234,221
NON-CURRENT LIABILITIES
Deferred income		133,858		155,664
Deferred tax liabilities		12,036		98,362
Amount due to immediate holding company		187,560	35,089
Borrowings	14	188,490		1,125,620
Corporate bonds		71,117		83,113
Convertible bonds - liability component		-	612,229
Lease liabilities		858	8,017
		593,919		2,118,094
NET (LIABILITIES) ASSETS		(844,868)	1,116,127
CAPITAL AND RESERVES
Share capital	15	55,983		55,983
Reserves		(906,601)	1,048,221
(Deficiency) equity attributable to shareholders
of the Company		(850,618)	1,104,204
Non-controlling interests		5,750		11,923
TOTAL (DEFICIENCY) EQUITY		(844,868)	1,116,127

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