Rosedale Hotel : INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 - 29.08.17

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Rosedale Hotel Holdings Limited 珀 麗 酒 店 控 股 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 1189)

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

The board of directors ("Board") of Rosedale Hotel Holdings Limited ("Company") announces the unaudited consolidated results of the Company and its subsidiaries (hereinafter collectively referred to as "Group") for the six months ended 30 June 2017 together with comparative figures for the corresponding period in 2016 as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2017

Six months ended
NOTES	30.6.2017 HK$'000 (unaudited)	30.6.2016 HK$'000 (unaudited)
Turnover	3	117,834	113,101
Direct operating costs	(73,244)	(70,750)
Gross profit	44,590	42,351
Interest income Other income, gains and losses Distribution and selling expenses	4	4,235 683 (543)	17,615 1,669 (832)
Administrative expenses	(59,942)	(79,823)
Equity-settled share-based payment expenses Fair value change on investments held for trading	14	(13,715) (24,130)	- (11,337)
Share of result of a joint venture Impairment loss recognised in respect of property, plant and equipment	9	- (14,772)	(179) -
Decrease in fair value of investment properties	10	(16,244)	(4,558)
Finance costs	(637)	(940)

Six months ended

NOTES	30.6.2017 HK$'000 (unaudited)	30.6.2016 HK$'000 (unaudited)
Loss before taxation	5	(80,475)	(36,034)
Income tax expense	6	(2,113)	(1,149)
Loss for the period	(82,588)	(37,183)
Other comprehensive income (expense) Item that may be reclassified subsequently to profit or loss: Exchange difference arising on translation of financial statements of foreign operations	23,067	(13,305)
Total comprehensive expense for the period	(59,521)	(50,488)
Loss for the period attributable to: Owners of the Company	(77,760)	(33,105)
Non-controlling interests	(4,828)	(4,078)
(82,588)	(37,183)
Total comprehensive expense for the period attributable to: Owners of the Company	(58,274)	(44,996)
Non-controlling interests	(1,247)	(5,492)
(59,521)	(50,488)

LOSS PER SHARE 8

- Basic (HK$) (0.10) (0.04)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2017

NOTES	At 30.6.2017 HK$'000 (unaudited)	At 31.12.2016 HK$'000 (audited)
Non-current assets Property, plant and equipment	9	400,306	415,470
Investment properties	10	182,000	192,000
Other assets	19,800	19,800
602,106	627,270
Current assets Inventories	2,400	2,441
Trade and other receivables	11	197,355	184,350
Investments held for trading	12	37,014	60,000
Bank balances and cash	1,646,163	1,660,949
1,882,932	1,907,740
Current liabilities Trade and other payables	13	101,062	102,856
Tax liabilities	76,934	79,048
177,996	181,904
Net current assets	1,704,936	1,725,836
Total assets less current liabilities	2,307,042	2,353,106
Non-current liability Deferred taxation	46,325	46,583
Net assets	2,260,717	2,306,523
Capital and reserves Share capital	7,892	7,892
Reserves	2,061,554	2,106,113
Equity attributable to owners of the Company	2,069,446	2,114,005
Non-controlling interests	191,271	192,518
Total equity	2,260,717	2,306,523

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2017

1. BASIS OF PREPARATION

   The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") as well as with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules").

2. PRINCIPAL ACCOUNTING POLICIES

The condensed consolidated financial statements have been prepared on the historical cost basis except for investment properties and investments held for trading which are measured at fair values, as appropriate.

Except as described below, the accounting policies used in the condensed consolidated financial statements for the six months ended 30 June 2017 are the same as those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2016.

In the current interim period, the Group has applied, for the first time, the following amendments to Hong Kong Financial Reporting Standards ("HKFRSs") issued by the HKICPA that are relevant for the preparation of the Group's condensed consolidated financial statements:

Amendments to HKAS 7 Disclosure initiative

Amendments to HKAS 12 Recognition of deferred tax assets for unrealised losses Amendments to HKFRSs Annual improvements to HKFRSs 2014 - 2016 cycle: HKFRS 12

Disclosure of interests in other entities

Amendments to HKAS 7 "Disclosure initiative"

The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities including both changes arising from cash flows and non-cash changes. Specifically, the amendments require the following changes in liabilities arising from financing activities to be disclosed: (i) changes from financing cash flows;

(ii) changes arising from obtaining or losing control of subsidiaries or other businesses; (iii) the effect of changes in foreign exchange rates; (iv) changes in fair values; and (v) other changes.

The application of the amendments will result in additional disclosures on the Group's financing activities, specifically reconciliation between the opening and closing balances in the consolidated statement of financial position for liabilities arising from financing activities will be provided on application.

The adoption will result in relevant disclosures in the Group's annual consolidated financial statements for the year ending 31 December 2017.

The application of the above amendments to HKFRSs in the current interim period has had no material effect on the amounts reported in the condensed consolidated financial statements and/or disclosures set out in the condensed consolidated financial statements.