Wanguo International Mining : Interim Results Announcement for the six months ended 30 June 2017

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Wanguo International Mining Group Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 3939) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017 RESULTS HIGHLIGHT:

• Revenue increased by approximately 93.5% to approximately RMB164.5 million

• Gross profit increased by approximately 200.8% to approximately RMB73.4 million

• Gross profit margin was approximately 44.6%

• Net profit margin was approximately 19.8%

• Profit and total comprehensive income for the six months ended 30 June 2017 (or referred to as the "reporting period") attributable to owners of the Company increased by approximately 28.6 times to approximately RMB32.6 million

• Basic earnings per share was approximately RMB5.4 cents (six months ended 30 June 2016: RMB0.2 cents)

• The Board declared an interim dividend of RMB0.50 cents (six months ended 30 June 2016: Nil) per share

Note: Compared to the six months ended 30 June 2016

INTERIM RESULTS

The board (the "Board") of directors (the "Directors") of Wanguo International Mining Group Limited (the "Company") is pleased to announce the following unaudited interim results of the Company and its subsidiaries (collectively referred to as the "Group" or "We") for the six months ended 30 June 2017 together with comparative figures for the corresponding period in 2016.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2017

Six months ended 30 June 2017 2016

Notes RMB'000 RMB'000

(Unaudited) (Unaudited)

Revenue 3 164,483 85,014

Cost of sales (91,119) (60,637)

Gross profit 73,364 24,377

Other income 1,151 750

Other gains (losses) (99) 445

Selling and distribution expenses (1,980) (1,060)

Administrative expenses (15,061) (13,265)

Finance costs 4 (8,757) (7,590)

Profit before taxation 48,618 3,657

Income tax expense 5 (15,986) (2,552)

Profit and total comprehensive income for the period 6 32,632 1,105

Earnings per share

Basic (RMB cents) 7 5.4 0.2

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2017

Notes	30.6.2017 RMB'000 (Unaudited)	31.12.2016 RMB'000 (Audited)
NON-CURRENT ASSETS Property, plant and equipment	388,649	387,856
Mining right	16,298	16,889
Exploration and evaluation assets	10,898	10,642
Prepaid lease payments	60,417	61,111
Deposit for purchase of property, plant and equipment	2,780	3,129
Deposit for acquisition of subsidiaries	85,769	85,891
Deferred tax assets	3,146	2,960
Restricted bank balances	7,610	7,576
575,567	576,054
CURRENT ASSETS Prepaid lease payments	1,377	1,377
Inventories	13,294	11,013
Trade and other receivables Bank balances and cash - cash and cash equivalents	9	19,222 27,187	18,910 8,777
- restricted bank balance	18,000	32,750
79,080	72,827
CURRENT LIABILITIES Trade and other payables	10	52,930	37,613
Tax payable	12,766	8,153
Amounts due to shareholders Consideration payable to a former non-controlling shareholder of a subsidiary	- 70,037	6,120 70,607
Secured bank borrowings	82,761	102,636
218,494	225,129
NET CURRENT LIABILITIES	(139,414)	(152,302)
TOTAL ASSETS LESS CURRENT LIABILITIES	436,153	423,752

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)

At 30 June 2017

30.6.2017 RMB'000	31.12.2016 RMB'000
(Unaudited)	(Audited)
NON-CURRENT LIABILITIES Consideration payable to a former non-controlling shareholder of a subsidiary	53,672	64,643
Secured bank borrowings	43,158	53,808
Deferred income	13,180	13,796
Deferred tax liabilities	2,377	750
Provisions	4,170	3,791
116,557	136,788
CAPITAL AND RESERVES Share capital	48,955	48,955
Reserves	270,641	238,009
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY	319,596	286,964
436,153	423,752