Huaxi : Announcements and Notices - ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2017

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HUAXI HOLDINGS COMPANY LIMITED

華禧控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 01689) ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2017 PERFORMANCE HIGHLIGHTS

• Total revenue of the Group increased by 3% to HK$260.26 million when compared to HK$252.37 million in FY2016.

• Revenue from the Cigarette Packaging Business decreased by 8% to HK$229.35 million when compared with HK$249.55 million in FY2016.

• Revenue from the Environmental Treatment Business and Biotechnology Business increased by 996% to HK$30.91 million when compared with HK$2.82 million in FY2016.

• Gross profit of the Group slightly increased by HK$0.28 million to HK$94.49 million when compared with HK$94.21 million in FY2016, at gross profit margin of 36% (FY15/16: 37%).

• Profit attributable to owners of the Company increased by 7% from HK$45.08 million in FY2016 to HK$48.20 million.

• Basic earnings per share were HK14.21 cents, an increase compared to HK13.29 cents in FY2016.

• A final dividend of HK6.00 cents per ordinary share for the year ended 31 March 2017 was proposed to declare.

The board of directors (the "Board") of Huaxi Holdings Company Limited (the "Company") is pleased to announce the audited consolidated financial results of the Company and its subsidiaries (together, the "Group") for the year ended 31 March 2017 together with the comparative figures for the preceding year ended 31 March 2016.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2017

Year ended 31 March
2017	2016
Note	HK$'000	HK$'000
Revenue	3	260,262	252,368
Cost of sales	4	(165,775)	(158,160)
Gross profit	94,487	94,208
Distribution costs	4	(2,618)	(2,604)
Administrative expenses	4	(39,544)	(32,320)
Other gains/(losses) - net	757	(8,485)
Operating profit	53,082	50,799
Finance income	5	3,053	3,559
Profit before income tax	56,135	54,358
Income tax expense	6	(15,107)	(12,231)
Profit for the year	41,028	42,127
Profit/(loss) attributable to:
Owners of the Company	48,199	45,077
Non-controlling interests	(7,171)	(2,950)
41,028	42,127
Other comprehensive income
Item that will not be reclassified to profit or loss:
Currency translation difference	(19,476)	(16,306)
Other comprehensive income for the year	(19,476)	(16,306)
Total comprehensive income for the year	21,552	25,821
Total comprehensive income attributable to:
Owners of the Company	28,845	29,081
Non-controlling interests	(7,293)	(3,260)
21,552	25,821
Earnings per share attributable to owners of the Company for the year
- Basic earnings per share	7(a)	HK14.21 cents	HK13.29 cents
- Diluted earnings per share	7(b)	HK14.03 cents	HK13.22 cents

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 March 2017

31 March 2017	31 March 2016
Note	HK$'000	HK$'000
ASSETS
Non-current assets
Property, plant and equipment	40,383	43,937
Prepaid operating lease	5,756	6,291
Deferred tax assets	2,442	2,063
Prepayments for non-current assets	118	13,361
48,699	65,652
Current assets
Inventories	29,760	33,248
Trade receivables	9	115,546	76,033
Amounts due from customer for contract work	10	22,098	2,380
Financial assets at fair value through profit and loss	28,852	38,049
Prepayments and other receivables	1,369	8,373
Restricted cash at banks	45,819	39,194
Cash and cash equivalents	116,507	140,625
359,951	337,902
Total assets	408,650	403,554
EQUITY
Equity attributable to owners of the Company
Share capital	3,393	3,393
Other reserves	174,254	191,600
Retained earnings	127,812	113,630
305,459	308,623
Non-controlling interests	(2,842)	4,451
Total equity	302,617	313,074
LIABILITIES
Non-current liabilities
Deferred tax liabilities	6,212	6,641
Current liabilities
Trade and notes payable	11	71,196	60,946
Other payables and accruals	19,889	14,502
Amounts due to a related party	-	2,000
Current income tax liabilities	8,736	6,391
99,821	83,839
Total liabilities	106,033	90,480
Total equity and liabilities	408,650	403,554

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2017

1. GENERAL INFORMATION

   Huaxi Holdings Company Limited was incorporated in the Cayman Islands on 29 April 2013 as an exempted company with limited liability under the Companies Law of the Cayman Islands. The address of its registered office is at the Clifton House, P.O. Box 1350, 75 Fort Street, Grand Cayman, KY1-1108, Cayman Islands. The Company is an investment holding company. The Group is principally engaged in manufacturing and sales of cigarette packing materials and environmental treatment business in the People's Republic of China (the "PRC") for the year ended 31 March 2017.

   The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") since 6 December 2013.

   These consolidated financial statements are presented in thousands of Hong Kong dollars ("HK$") unless otherwise stated. These consolidated financial statements have been approved by the Board of the Company for issue on 23 June 2017.

2. BASIS OF PREPARATION

   These consolidated financial statements of the Company have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRS"). The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through profit or loss, which are carried at fair value.

   The preparation of these consolidated financial statements in conformity with HKFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies.

3. The following amendments to standards are mandatory for the first time for the financial year beginning on or after 1 April 2016. The Group has adopted these amendments to standards which are relevant to its operations, but these amendments have no material impact in the Group's financial statement as at and for the year ended 31 March 2017.

Amendments to HKAS 16 and HKAS 38 "Clarification of acceptable methods of depreciation and amortisation".

Amendment to HKAS 27 "Equity method in separate financial statements".

Amendment from annual improvements to HKFRS - 2012-2014 Cycle, on HKFRS 19, "Employee benefits".

Amendment from annual improvements to HKFRS - 2012-2014 Cycle, on HKAS 34, "Interim financial reporting".

Amendments to HKFRS 10, HKFRS 12 and HKAS 28 "Investment entities: applying the consolidation exception".

Amendments to HKAS 1 "Disclosure initiative". HKFRS14 "Regulatory Deferral Accounts".