Sincere : ANNOUNCEMENT OF THE 2019 INTERIM RESULTS (in PDF)

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THE SINCERE COMPANY, LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 0244)

ANNOUNCEMENT OF THE 2019 INTERIM RESULTS

The Board of Directors (the "Board") of The Sincere Company, Limited (the "Company") is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (the "Group") for the six months ended 31 August 2019, together with the comparative amounts. The interim results of the Group are unaudited, but have been reviewed by the Audit Committee of the Company.

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 31 August 2019
		2019		2018
	Notes		HK$'000	HK$'000
		(unaudited)	(unaudited)
REVENUE	3	138,100		146,082
Cost of sales		(61,826)	(68,409)
Other income and gains, net		7,845		3,740
Net unrealised loss on securities trading		(11,251)	(8,215)
Selling and distribution expenses		(86,289)	(96,215)
General and administrative expenses		(47,197)	(44,845)
Other operating expenses, net		(8,769)	(7)
Finance costs		(10,784)	(1,803)
LOSS BEFORE TAX	4	(80,171)	(69,672)
Income tax credit/(expense)	5	1		(10)
LOSS FOR THE PERIOD		(80,170)	(69,682)
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CONDENSED CONSOLIDATED INCOME STATEMENT (continued)

For the six months ended 31 August 2019

		2019			2018
	Notes		HK$'000	HK$'000
		(unaudited)	(unaudited)
ATTRIBUTABLE TO:
Equity holders of the Company		(78,927)	(68,364)
Non-controlling interests		(1,243)	(1,318)
		(80,170)	(69,682)
LOSS PER SHARE ATTRIBUTABLE TO
EQUITY HOLDERS OF THE COMPANY	6
Basic			HK$(0.11)	HK$(0.10)
Diluted			HK$(0.11)	HK$(0.10)

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 31 August 2019

	2019		2018
		HK$'000	HK$'000
	(unaudited)	(unaudited)
LOSS FOR THE PERIOD	(80,170)	(69,682)
OTHER COMPREHENSIVE LOSS
Other comprehensive loss that may be reclassified to
the income statement in subsequent periods:
Exchange differences arising on translation of
foreign operations	(102)	(478)
Net other comprehensive loss that may be reclassified
to the income statement in subsequent periods	(102)	(478)
Other comprehensive loss that will not be reclassified
to the income statement in subsequent periods:
Changes in fair value of equity investments designated at
fair value through other comprehensive income	(2,369)	-
Net other comprehensive loss that will not be reclassified
to the income statement in subsequent periods	(2,369)	-
OTHER COMPREHENSIVE LOSS FOR THE PERIOD,
NET OF TAX	(2,471)	(478)
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD	(82,641)	(70,160)
ATTRIBUTABLE TO:
Equity holders of the Company	(82,059)	(69,328)
Non-controlling interests	(582)	(832)
	(82,641)	(70,160)

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

			31 August	28 February
		2019		2019
	Notes		HK$'000	HK$'000
		(unaudited)	(audited)
NON-CURRENT ASSETS
Property, plant and equipment		26,795		27,261
Right-of-use assets		201,591		-
Interests in associates			-	-
Equity instruments designated at fair value
through other comprehensive income		20,504		22,873
Deposits and other receivables		27,847		25,654
Pension scheme assets		14,670		14,670
Total non-current assets		291,407		90,458
CURRENT ASSETS
Inventories		77,537		66,896
Reinsurance assets		24		24
Prepayments, deposits and other receivables		15,356		19,164
Financial assets at fair value through profit or loss		39,819		111,939
Pledged bank balances		18,595		6,829
Pledged deposits with banks		72,125		71,561
Cash and bank balances		31,740		32,318
Total current assets		255,196		308,731
CURRENT LIABILITIES
Creditors	8	43,168		52,774
Insurance contracts liabilities		1,232		1,232
Deposits, accrued expenses and other payables		24,276		46,336
Contract liabilities		2,210		1,253
Interest-bearing bank borrowings	9	132,616		190,045
Other loans		2,107		2,100
Tax payable			-	1
Lease liabilities		101,824		-
Total current liabilities		307,433		293,741
NET CURRENT ASSETS/(LIABILITIES)		(52,237)	14,990
TOTAL ASSETS LESS CURRENT
LIABILITIES		239,170		105,448

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)

				31 August	28 February
		2019		2019
	Notes			HK$'000	HK$'000
		(unaudited)	(audited)
NON-CURRENT LIABILITIES
Accrued expenses and other payables		9,067		41,725
Other loans		1,078		1,067
Lease liabilities		156,269		-
Total non-current liabilities		166,414		42,792
NET ASSETS		72,756		62,656
EQUITY
Equity attributable to equity holders of
the Company
Share capital	10	469,977		377,236
Reserves		(430,751)	(348,692)
		39,226		28,544
Non-controlling interests		33,530		34,112
TOTAL EQUITY		72,756		62,656

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