Financial Statements and Related Announcement::HHL_First Quarter Result

Hiap Hoe Limited (Registration No.: 199400676Z) UNAUDITED FINANCIAL STATEMENTS FOR THE FIRST QUARTER ENDED 31 MARCH 2017 PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF- YEAR AND FULL YEAR RESULTS 1(a) An income statement and statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year.

The Group 3 months ended

31-Mar-17 31-Mar-16

$'000 $'000 %

Revenue 25,318 19,740 28.3

Other items of income Dividend income	562	338	66.3
Financial income	818	209	291.4
Other income 2,502 14,203 (82.4)
3,882	14,750	(73.7)
Changes in development properties	(5,092)	-	NM
Employee benefits expense	(6,674)	(5,909)	12.9
Depreciation expense	(5,159)	(5,255)	(1.8)
Other expenses	(7,901)	(8,320)	(5.0)
Finance cost	(1,571)	(3,565)	(55.9)
Fair value changes in financial instruments	3,354	(443)	(857.1)
Foreign exchange gain/(loss)	2,353	(439)	(636.0)
Profit before tax	8,510	10,559	(19.4)
Income tax expense	(1,411) (3,908)		(63.9)
Profit for the period	7,099 6,651		6.7
Attributable to : Owners of the Company	7,082 6,633		6.8
Non-controlling interests	17 18		(5.6)
Total	7,099 6,651		6.7

Statement of Comprehensive Income for the Group for the First Quarter Ended 31 March 2017

The Group

3 months ended

31-Mar-17 31-Mar-16

$'000 $'000

Profit for the period Other comprehensive income items that may be	7,099	6,651
reclassified subsequently to profit or loss
Foreign currency translation	3,347 791
Fair value loss on net investment hedge	- (45)
Other comprehensive income for the period, net of tax of nil	3,347 746
Total comprehensive income for the period 10,446 7,397
Attributable to :
Owners of the Company	10,429 7,379
Non-controlling interests	17 18
Total comprehensive income for the period	10,446 7,397

Additional Information

Profit from operation is determined after charging / (crediting):

The Group 3 months ended

31-Mar-17 31-Mar-16 %

$'000 $'000

Depreciation of property, plant and equipment	4,229	4,173	1.3
Depreciation of investment properties	930	1,082	(14.0)
Gain on disposal of property, plant and equipment	(56)	(3)	1,766.7
Gain on disposal of investment property held for sale - (13,203) ⁽¹⁾ NM
Fair value changes in held-for-trading investments	(3,348)	1,154	(390.1)
Fair value changes in derivative instruments	(6)	(711)	(99.2)
Impairment of trade receivables	19	-	NM
Impairment of trade receivables written back	(448)	-	NM
Bad debts written off - trade	33	-	NM
Loss on disposal of investments Write back of other provision	14 (999) ⁽²⁾	60 -	(76.7) NM

NM - Not meaningful

Notes:

⁽¹⁾ This relates to the gain on disposal of 206 Bourke Street in Melbourne.

(2) This relates to the write back of provision for tenancy and contract matters arising from the disposal of our

Australia properties.

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.

The Group The Company

31-Mar-17 31-Dec-16 31-Mar-17 31-Dec-16

$'000 $'000 $'000 $'000

Non-Current Assets
Property, plant and equipment	763,273 727,107 315 336
Investment properties	172,467 171,494 - -
Investment in subsidiaries	- - 168,417 168,417
Investment in joint venture	- - 10,173 9,279
Other assets	29,922 28,605 - -
Other receivables	46 52 - -
Due from subsidiary, non-trade	- - 104,960 103,870
Deferred tax assets	2,235 2,963 - -
967,943 930,221 283,865 281,902

Current Assets Cash and short-term deposits	18,284	28,939	204	5,511
Other investments⁽¹⁾	102,480	91,017	-	-
Trade and other receivables	6,779	8,533	-	-
Other assets	675	683	-	-
Prepaid operating expenses	668	651	22	7
Due from subsidiaries, trade	-	-	56	4
Due from subsidiaries, non-trade Due from related companies, trade	- 2	- 6	330,114 -	245,902 -
Development properties	143,820	150,927	-	-
Completed properties for sale	52,681	52,681	-	-
Inventories	2,055 2,044		- -
327,444 335,481		330,396 251,424

Current Liabilities
Trade and other payables	18,882 21,019 65 65
Other liabilities	6,788 10,048 316 528
Derivatives - liabilities	197 203 - -
Due to subsidiaries, trade	- - - 4
Due to subsidiaries, non-trade	- - 140,294 60,504
Due to related companies, trade	38 54 - 8
Interest-bearing loans and borrowings	342,485 341,327 27 27
Tax payable	3,057 2,072 144 81
371,447 374,723 140,846 61,217

Non-Current Liabilities Other liabilities	32,143 29,573	- -
Interest-bearing loans and borrowings	78,639 58,173	18 24
Deferred tax liabilities	83,898 84,419	- -
194,680 172,165	18 24
Net Assets	729,260 718,814	473,397 472,085
Equity attributable to owners of the Company
Share capital	84,445 84,445	84,445 84,445
Treasury shares	(1,101) (1,101)	(1,101) (1,101)
Reserves	642,315 631,886	390,053 388,741
725,659 715,230	473,397 472,085
Non-controlling interests	3,601 3,584	- -
Total Equity	729,260 718,814	473,397 472,085

Net Current (Liabilities)/Assets⁽²⁾ (44,003) (39,242) 189,550 190,207

Notes:

⁽¹⁾ This included short-term commercial papers and trading investments.

⁽²⁾ The Group is in a net current liabilities position mainly due to maturity of the long-term borrowings within the

next 12 months. The Group has sufficient banking facilities available to refinance the portion of borrowings

which are maturing within the next 12 months.

1(b)(ii) Aggregate amount of Group's borrowings and debts securities. Amount repayable in one year or less, or on demand

($'000)

As at 31 Mar 17
Secured	Unsecured
342,485	-

As at 31 Dec 16
Secured	Unsecured
341,327	-

Amount repayable after one year

($'000)

As at 31 Mar 17
Secured	Unsecured
78,639	-

As at 31 Dec 16
Secured	Unsecured
58,173	-

Details of any collateral

The above borrowings are from financial institutions and are secured by the following:

1. Legal mortgages on the Group's property, plant and equipment, investment properties, development properties and properties for sale (collectively, the "Properties");

2. Legal assignment of all rights and benefits under the sales and purchase agreements and/or tenancy agreements;

3. The building contracts of certain Properties;

4. Assignment of all insurance policies for certain Properties;

5. Deed of subordination to subordinate all loans and advances from the Company to the facilities;

6. Corporate guarantees given by the Company; and

7. A charge over certain trading investments, cash and short-term deposits.