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CHINA WEAVING MATERIALS HOLDINGS LIMITED 中 國 織 材 控 股 有 限 公 司(Incorporated in the Cayman Islands with limited liability)
(Stock code: 3778)
RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017The board (the "Board") of directors (the "Directors") of China Weaving Materials Holdings Limited (the "Company") announces the unaudited condensed consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2017 together with the comparative figures for the corresponding period in 2016 as follows:
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Six months ended 30 JuneNote | 2017 (unaudited) RMB'000 | 2016 (unaudited) RMB'000 | |
Revenue | 4 | 706,394 | 631,296 |
Cost of sales | (643,918) | (577,741) | |
Gross profit | 62,476 | 53,555 | |
Other income | 5 | 11,428 | 5,624 |
Other gains and losses | 6 | 16,618 | 450 |
Distribution and selling expenses | (11,680) | (11,394) | |
Administrative expenses | (24,426) | (21,770) | |
Finance costs | (29,531) | (23,272) | |
Profit before tax | 24,885 | 3,193 | |
Income tax expense | 7 | (4,704) | (2,031) |
Profit and total comprehensive income | |||
for the period | 8 | 20,181 | 1,162 |
Profit and total comprehensive income for the period attributable to: | |||
Owners of the Company | 22,319 | 1,486 | |
Non-controlling interests | (2,138) | (324) | |
20,181 | 1,162 | ||
Earnings per share | 10 | ||
Basic | RMB1.78 cents | RMB0.12 cents | |
Diluted | RMB1.14 cents | RMB0.12 cents |
Note | 30 June 2017 (unaudited) RMB'000 | 31 December 2016 (audited) RMB'000 | |
Non-current assets Property, plant and equipment | 1,092,545 | 1,106,576 | |
Prepaid lease payments | 43,802 | 44,347 | |
Intangible asset Deposits on acquisition of property, plant and equipment | 42 492 | 67 53 | |
Goodwill | 34,829 | 34,829 | |
Deferred tax assets | 2,416 | 2,465 | |
1,174,126 | 1,188,337 | ||
Current assets Inventories | 260,993 | 137,153 | |
Trade and other receivables | 11 | 28,387 | 53,597 |
Bills receivable | 18,840 | 12,614 | |
Prepaid lease payments | 1,090 | 1,090 | |
Pledged bank deposits | 52,438 | 61,571 | |
Restricted bank deposit | 500 | 500 | |
Cash and bank balances | 44,796 | 93,443 | |
407,044 | 359,968 | ||
Current liabilities Trade and other payables | 12 | 390,439 | 233,792 |
Bills payable | 34,760 | 52,148 | |
Deferred income | 227 | 227 | |
Finance lease payable Financial liabilities at fair value through profit or loss | 3,488 1,326 | 4,125 - | |
Bank borrowings | 424,827 | 498,729 | |
Notes payable | - | 705 | |
Liability component of convertible bond | 1,087 | 1,128 | |
Derivative component of convertible bond | 36,361 | 50,853 | |
Current tax liabilities | 7,717 | 10,276 | |
900,232 | 851,983 | ||
Net current liabilities | (493,188) | (492,015) | |
Total assets less current liabilities | 680,938 | 696,322 |
(Continued)
30 June 2017 (unaudited) RMB'000 | 31 December 2016 (audited) RMB'000 | |
Non-current liabilities Consideration payables | - | 42,963 |
Deferred income | 7,823 | 7,937 |
Bank borrowings | 65,840 | 20,260 |
Notes payable | - | 44,729 |
Liability component of convertible bond | 74,266 | 68,289 |
Deferred tax liabilities | 19,284 | 18,600 |
167,213 | 202,778 | |
NET ASSETS | 513,725 | 493,544 |
Capital and reserves Share capital | 101,989 | 101,989 |
Reserves | 381,887 | 359,568 |
Equity attributable to owners of the Company | 483,876 | 461,557 |
Non-controlling interests | 29,849 | 31,987 |
TOTAL EQUITY | 513,725 | 493,544 |
For the six months ended 30 June 2017
BASIS OF PREPARATION
This unaudited condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board ("IASB") and the applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The Group continues to adopt the going concern basis in preparing its condensed consolidated financial information. At 30 June 2017, the Group had net current liabilities of approximately RMB493,188,000. The condition indicates the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. Notwithstanding the above, the condensed consolidated financial information has been prepared on a going concern basis as the directors of the Company have given careful consideration to the impact of the current and anticipated future liquidity of the Group and are satisfied that:
The banking facilities from the Group's bankers for its working capital requirements for the next twelve months will be available as and when required, having regard to the following:
Up to the date of the condensed consolidated financial information was authorised for issue, the Group' s bankers agreed to renew bank borrowings amounting to approximately RMB406,100,000 currently included in current liabilities at 30 June 2017.
Undrawn banking facilities amounting to approximately RMB37,402,000.
Subsequent to the reporting date, the Group has also successfully obtained new banking facilities of approximately RMB58,117,000.
Certain existing prepaid land lease and property, plant and equipment can be offered as security for further financing.
The Group is able to generate sufficient operating cash flows to meet its current and future obligations.
Having taken into account the above, the directors consider that the Group will have sufficient financial resources to meet in full its working capital requirements and financial obligations as and when they fall due in the foreseeable future. Accordingly, the condensed consolidated financial information has been prepared on a going concern basis.
Should the Group be unable to continue as a going concern, adjustments would have to be made to restate the values of the assets to their recoverable amounts, to provide for any further liabilities which might arise and to classify non-current assets and liabilities as current assets and liabilities respectively. The effects of these potential adjustments have not been reflected in this condensed consolidated financial information.
China Weaving Materials Holdings Ltd. published this content on 25 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 August 2017 06:52:04 UTC.
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