Dafeng Port Heshun Technology : Interim Results Announcement for the Six Months Ended 30 June 2017

Dafeng Port Heshun Technology Company Limited

大 豐 港 和 順 科 技 股 份 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8310) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017 CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET OF THE STOCK EXCHANGE OF HONG KONG LIMITED

Growth Enterprise Market ("GEM") has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.

Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange 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.

This announcement, for which the directors (the "Directors") of Dafeng Port Heshun Technology Company Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

The board of Directors of the Company (the "Board") is pleased to present the unaudited condensed consolidated financial results of the Company and its subsidiaries (collectively referred to as the "Group") for the three months and six months ended 30 June 2017 (the "Interim Financial Statements ") together with the comparative figures for the corresponding periods in 2016 as follows:

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the three months and six months ended 30 June 2017

Unaudited Three months ended 30 June		Unaudited Six months ended 30 June
2017	2016	2017	2016
Note	HK$'000	HK$'000	HK$'000	HK$'000
Revenue	4	784,186	59,195	1,479,462	108,539
Cost of sales	(760,041)	(48,514)	(1,441,484)	(90,649)
Gross profit	24,145	10,681	37,978	17,890
Other income	5	3,218	839	9,581	1,762
Administrative expenses	(26,673)	(16,150)	(47,840)	(30,367)
Finance costs	6	(3,282)	(46)	(4,232)	(200)
Gain (loss) on disposal of subsidiaries	12,844	(968)	12,844	(968)
Share of results of associates	(90)	134	(519)	140
Profit/(Loss) before taxation	6	10,613	(5,510)	7,812	(11,743)
Taxation	7	(1,944)	(76)	(2,318)	(16)
Profit/(loss) for the period	8,219	(5,586)	5,494	(11,759)
Other comprehensive income/(loss):
Item that may be reclassified to profit or loss in subsequent periods:
Exchange difference arising from translation of foreign operations	2,489	(1,005)	1,893	(1,170)
Total comprehensive income/(loss) for the period	10,708	(6,591)	7,387	(12,929)

Unaudited Three months ended 30 June		Unaudited Six months ended 30 June
2017	2016	2017	2016
Note	HK$'000	HK$'000	HK$'000	HK$'000
Profit/(loss) attributable to:
Equity holders of the Company	3,679	(5,578)	1,076	(11,741)
Non-controlling interests	4,450	(8)	4,418	(18)
8,219	(5,586)	5,494	(11,759)
Total comprehensive income/(loss) attributable to:
Equity holders of the Company	6,258	(6,583)	2,969	(12,911)
Non-controlling interests	4,450	(8)	4,418	(18)
10,708	(6,591)	7,387	(12,929)
Profit/(loss) per share attributable to equity holders of the Company
Basic and diluted (HK cents)	9	0.64	(0.47)	0.43	(1.02)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2017

Unaudited As at 30 June 2017	Audited As at 31 December 2016
Note	HK$'000	HK$'000
Non-current assets
Property, plant and equipment	10	98,759	144,770
Goodwill	15,280	14,844
Prepaid lease payment	43,525	42,176
Prepayments for purchase of property, plant and equipment	8,623	8,372
Pleaged deposit for finance lease arrangement	-	4,236
Interests in associates	6,005	6,744
172,192	221,142
Current assets
Available-for-sale financial assets	8,806	8,806
Prepaid lease payments	999	970
Inventories	2,344	43
Trade and other receivables	11	457,738	330,098
Pledged bank deposits	12(a)	311,232	1,270
Bank balances and cash	12	137,053	36,070
918,172	377,257
Assets classified as held for sale	-	149
918,172	377,406
Current liabilities
Trade and other payables	13	324,167	366,975
Current portion of interest-bearing borrowings	14	469,848	18,159
Taxation	1,585	3,868
795,600	389,002
Net current assets (liabilities)	122,572	(11,596)
Total assets less current liabilities	294,764	209,546