Truly International : RESULTS ANNOUNCEMENT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

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TRULY INTERNATIONAL HOLDINGS LIMITED

信 利 國 際 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 00732)

RESULTS ANNOUNCEMENT

FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2019

UNAUDITED RESULTS

The unaudited revenue and profit attributable to owners of the Company and its subsidiaries for the nine months period from 1 January 2019 to 30 September 2019 (the "Period") were approximately HK$16,020 million and HK$169 million which were about 12.0% and 949.9% more than the corresponding period in 2018 (approximately HK$14,305 million and HK$16 million) respectively. The unaudited gross profit margin of approximately 9.3% for the Period was less than the corresponding period of approximately 10.1% in 2018 while unaudited net profit margin attributable to owners of the Company was increased from 0.1% for the corresponding period in 2018 to 1.1% during the Period .

FINANCIAL HIGHLIGHTS

For the nine months period from 1 January 2019 to 30 September 2019:

	2019	2018	Change
	Unaudited	Unaudited
	HK$'000	HK$'000
Revenue	16,020,286	14,304,508	+12.0%
Gross profit	1,488,775	1,437,796	+3.5%
Profit for the period attributable to
owners of the Company	168,987	16,096	+949.9%
Basic Earnings per share	5.14 HK cent	0.52 HK cent	+888.5%

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The Board of Directors (the "Board") of Truly International Holdings Limited (the "Company") is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (collectively the "Group") for the period from 1 January 2019 to 30 September

2019 (with comparative figures for the corresponding period in the previous year) as follows:

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSSAND OTHERCOMPREHENSIVE INCOME

For the nine months ended 30 September 2019

		Unaudited		Unaudited
		For the period		For the period
		from 1.1.2019		from 1.1.2018
		to 30.9.2019		to 30.9.2018
		HK$'000		HK$'000
Revenue (Note 2)	16,020,286	14,304,508
Cost of sales	(14,531,511)		(12,866,712)
Gross profit (Note 3)	1,488,775	1,437,796
Other income, gains and losses (Note 4)	(139,916)	21,871
Loss from changes in fair value of financial assets
at fair value through profit or loss	(4,533)	(1,798)
Administrative, distribution and selling expenses	(544,570)	(620,631)
Finance costs	(304,825)	(261,929)
Share of results of associates	(170,555)		(434,330)
Profit before tax	324,376	140,979
Income tax expense	(74,586)		(77,088)
Profit for the period	249,790	63,891
Other comprehensive expense for the period
Items that may be subsequently reclassified to
profit or loss:
Exchange differences arising on translation of
foreign operations	(216,568)	(459,462)
Share of exchange differences arising on
translation of associates	(39,762)		(64,548)
Other comprehensive expense for the period	(256,330)		(524,010)
Total comprehensive expense for the period		(6,540)		(460,119)

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFITOR LOSSAND OTHER COMPREHENSIVE INCOME

(continued)

For the nine months ended 30 September 2019

		Unaudited		Unaudited
		For the period		For the period
		from 1.1.2019		from 1.1.2018
		to 30.9.2019		to 30.9.2018
		HK$'000		HK$'000
Profit for the period attributable to:
Owners of the Company (Note 5)	168,987	16,096
Non-controlling interests	80,803		47,795
		249,790	63,891
Total comprehensive (expense) income for the period
attributable to:
Owners of the Company	(62,202)	(478,830)
Non-controlling interests	55,662		18,711
		(6,540)	460,119
Basic earnings per share (Note 6)		5.14 HK cent		0.52 HK cent

Notes:

1. The accounting policies and basis used in the preparations of the unaudited condensed consolidated statement of profit or loss and other comprehensive income, which was reviewed by the Audit Committee and approved by the Board on 22 November 2019, are the same as those used in the annual financial statements for the year ended 31 December 2018.
2. Unaudited consolidated revenue for the nine months ended 30 September 2019 was approximately HK$16,020 million which was about 12.0% more than the same period in last year (2018: approximately HK$14,305 million).
3. Gross profit margin for the Period was approximately 9.3% (approximately 10.1% for the same period in 2018).
4. The net loss of approximately HK$140 million from other income, gains and losses in the Period was recorded (same period in 2018: approximately HK$22 million net gain) mainly because net exchange loss and inventory provision have been increased in aggregate of approximately HK$138 million.
5. Net profit margin attributable to owners of the Company for the Period was approximately 1.1% (Net profit margin attributable to owners of the Company for the same period in 2018 was approximately 0.1%).
6. The calculation of the basic earnings per share is based on the unaudited profit for the period attributable to owners of the Company of HK$168,987,000 (same period in 2018: unaudited profit attributable to owners of the Company of HK$16,096,000) and on the weighted average number of 3,289,229,398 ordinary shares in issue during the Period (same period in 2018: 3,120,429,398 shares).
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DIVIDEND

The Board does not recommend the payment of the interim dividend for the nine months ended 30 September 2019 (2018: Nil).

As the unaudited results for the nine months ended 30 September 2019 may not reflect the final results for the full year ended 31 December 2019 respectively, investors and shareholders are advised to exercise extreme caution when dealing in the shares of the Company.

By Order of the Board

Truly International Holdings Limited

Lam Wai Wah

Chairman

Hong Kong, 22 November 2019

As at the date of this announcement, the Board comprises Mr. Lam Wai Wah, Mr. Wong Pong Chun, James, Mr. Ma Wai Tong, Mr. Song Bei Bei, Mr. Dai Cheng Yun and Mr. Cheung Wing Cheung as executive directors and Mr. Chung Kam Kwong, Mr. Ip Cho Ting, Spencer and Mr. Heung Kai Sing as independent non-executive directors.

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