ESun : Announcement of Interim Results for the Six Months Ended 31 January 2019

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.

Announcement of Interim Results

for the Six Months Ended 31 January 2019

RESULTS

The board of directors ("Board" and "Directors", respectively) of eSun Holdings Limited ("Company") announces the unaudited condensed consolidated results of the Company and its subsidiaries ("Group") for the six months ended 31 January 2019 together with the comparative figures of the last corresponding period as follows:

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 31 January 2019

		Six months ended
		31 January
		2019			2018
		(Unaudited)			(Unaudited)
	Notes	HK$'000			HK$'000
TURNOVER	3	1,260,206			1,184,881
Cost of sales		(693,082)			(737,370)
Gross profit		567,124			447,511
Other revenue	3	55,566			113,050
Selling and marketing expenses		(40,657)			(106,649)
Administrative expenses		(297,045)			(352,494)
Other operating expenses, net		(214,059)			(189,810)
Fair value gains/(losses) on investment properties		(312,139)			349,748
PROFIT/(LOSS) FROM OPERATING ACTIVITIES	4	(241,210)			261,356
Finance costs	5	(95,504)			(115,065)
Share of profits and losses of joint ventures		(22,344)			80,409
Share of profits and losses of associates		565			632
PROFIT/(LOSS) BEFORE TAX		(358,493)			227,332
Income tax expense	6	(58,402)			(175,936)
PROFIT/(LOSS) FOR THE PERIOD		(416,895)			51,396
Attributable to:
Owners of the Company		(254,863)			(14,295)
Non-controlling interests		(162,032)			65,691
		(416,895)			51,396
LOSS PER SHARE ATTRIBUTABLE
TO OWNERS OF THE COMPANY	7
Basic		(HK$0.171)			(HK$0.010)
Diluted		(HK$0.171)			(HK$0.010)

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 31 January 2019

		Six months ended
		31 January
	2019					2018
		(Unaudited)				(Unaudited)
		HK$'000				HK$'000
PROFIT/(LOSS) FOR THE PERIOD	(416,895)					51,396
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAX
Items that may be subsequently reclassified to the income statement:
Exchange realignment on translation of foreign operations	352,358					1,189,741
Share of other comprehensive income of joint ventures	10,329					100,545
Share of other comprehensive income/(loss) of associates	(7)					23
Release of exchange reserve upon deregistration and disposal
of subsidiaries	(10,621)					(880)
Change in fair value of an available-for-sale investment		-				30,680
Cash flow hedges:
Effective portion of changes in fair value of hedging
instruments arising during the period		-				159,924
Reclassification adjustments for exchange loss
included in the condensed consolidated income statement		-				(134,959)
		-				24,965
Items that will not be subsequently reclassified to the income statement:
Change in fair value of equity investments at fair value
through other comprehensive income	2,574					-
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD, NET OF TAX	354,633					1,345,074
TOTAL COMPREHENSIVE INCOME/(LOSS)
FOR THE PERIOD	(62,262)					1,396,470
Attributable to:
Owners of the Company	(68,314)					697,856
Non-controlling interests		6,052				698,614
	(62,262)					1,396,470

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 January 2019		31 January		31 July
		2019	2018
		(Unaudited)		(Audited)
	Notes	HK$'000		HK$'000
NON-CURRENT ASSETS
Property, plant and equipment		4,458,824	3,790,965
Properties under development		591,007	410,157
Investment properties		19,881,929	18,601,100
Film rights		9,475	11,205
Film products		100,376	80,217
Music catalogs		8,170	9,657
Goodwill		82,440	82,440
Other intangible assets		276	586
Investments in joint ventures		298,321	1,868,316
Investments in associates		9,988	16,278
Available-for-sale investments		-	114,361
Equity investments at fair value through
other comprehensive income		215,800		-
Deposits, prepayments and other receivables		124,574	120,116
Deferred tax assets		13,686	4,189
Derivative financial instruments		-		2,531
Total non-current assets		25,794,866	25,112,118
CURRENT ASSETS
Properties under development		1,628,937	1,722,872
Completed properties for sale		1,134,595	852,588
Films under production		493,075	469,585
Inventories		18,955	21,874
Debtors	9	195,475	181,599
Deposits, prepayments and other receivables		833,587	441,526
Prepaid tax		38,584	37,856
Pledged and restricted time deposits and bank balances		1,165,216	1,073,762
Cash and cash equivalents		3,104,509		2,136,039
Total current assets		8,612,933	6,937,701
CURRENT LIABILITIES
Creditors and accruals	10	2,499,296	1,961,568
Deposits received, deferred income and
contract liabilities	11	1,019,598	658,487
Tax payable		104,793	123,973
Interest-bearing bank loans		536,558	348,489
Loans from a joint venture		277,648	218,542
Other borrowings		41,525		-
Total current liabilities		4,479,418		3,311,059
NET CURRENT ASSETS		4,133,515		3,626,642
TOTAL ASSETS LESS CURRENT LIABILITIES		29,928,381		28,738,760

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)

31 January 2019		31 January		31 July
		2019	2018
		(Unaudited)		(Audited)
	Notes	HK$'000		HK$'000
TOTAL ASSETS LESS CURRENT LIABILITIES		29,928,381	28,738,760
NON-CURRENT LIABILITIES
Long-term deposits received	11	137,684	142,880
Interest-bearing bank loans		4,998,999	3,572,464
Other borrowings		261,617	257,841
Guaranteed notes		2,724,223	2,725,518
Loans from a joint venture		-	426,156
Loans from a related company	13	-	650,000
Loans from a fellow subsidiary	13	850,000		-
Derivative financial instruments		2,982		-
Deferred tax liabilities		3,337,957		3,318,953
Total non-current liabilities		12,313,462		11,093,812
Net assets		17,614,919	17,644,948
EQUITY
Equity attributable to owners of the Company
Issued capital		745,927	745,927
Reserves		8,515,237		8,513,538
		9,261,164	9,259,465
Non-controlling interests		8,353,755		8,385,483
Total equity		17,614,919	17,644,948

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NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

31 January 2019

1.BASIS OF PREPARATION

The condensed consolidated interim financial statements of the Group ("Financial Statements") for the six months ended 31 January 2019 have not been audited by the Company's independent auditor but have been reviewed by the Company's Audit Committee.

The unaudited Financial Statements have been prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of

Hong Kong Limited ("Stock Exchange") and the Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants.

On 8 August 2018, Lai Sun Garment (International) Limited ("LSG"), which was incorporated in Hong Kong and whose shares are listed and traded on the Main Board of the Stock Exchange, became the ultimate holding company of the Company.

2.SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies and basis of preparation adopted in the preparation of these unaudited Financial Statements for the period under review are the same as those used in the Group's audited consolidated financial statements for the year ended 31 July 2018.

In addition, the Group has adopted the following new and revised Hong Kong Financial Reporting Standards ("HKFRSs", which also include HKASs and interpretations) for the first time for the current period's unaudited Financial Statements:

Amendments to HKFRS 2	Classification and Measurement of Share-based Payment Transactions
Amendments to HKFRS 4	Applying HKFRS 9 Financial Instruments with HKFRS 4 Insurance
	Contracts
HKFRS 9	Financial Instruments
HKFRS 15	Revenue from Contracts with Customers
Amendments to HKFRS 15	Clarifications to HKFRS 15 Revenue from Contracts with Customers
Amendments to HKAS 40	Transfers of Investment Property
HK(IFRIC)-Int 22	Foreign Currency Transactions and Advance Consideration
Annual Improvements	Amendments to HKFRS 1 and HKAS 28
2014-2016 Cycle

Except for HKFRS 9 and HKFRS 15, the application of these new and revised HKFRSs has had no significant impact on the financial performance or financial position of the Group.

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