Leading Holdings Group Limited 領地控股集團有限公司
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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. Leading Holdings Group Limited 領 地 控 股 集 團 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 6999) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 INTERIM RESULTS AND OPERATIONAL HIGHLIGHTS • Contracted sales for the six months ended 30 June 2021 was RMB13,328.56 million. • Contracted GFA sold for the six months ended 30 June 2021 was 1.55 million sq.m.. • Revenue for the six months ended 30 June 2021 was RMB4,311.91 million. • Gross profit for the six months ended 30 June 2021 was RMB875.34 million. • Profit for the six months attributable to owners of the Company ended 30 June 2021 was RMB73.85 million. • Core profit(1) for the six months ended 30 June 2021 was RMB111.04 million. • Core profit(1) attributable to owners of the Company for the six months ended 30 June 2021 was RMB59.61 million. • Cash and bank balances(2) amounted to RMB7,784.62 million. (1) Defined as net profit excluding changes in fair values of investment properties and financial assets, and exchange gain or loss (2) Cash and bank balances comprise restricted cash, pledged deposits, and cash and cash equivalents – 1 – INTERIM RESULTS The board (the “Board”) of directors (the “Directors”) of Leading Holdings Group Limited (the “Company”) is pleased to announce the unaudited consolidated interim results of the Company and its subsidiaries (the “Group”) for the six months ended 30 June 2021 with comparative figures for corresponding period in 2020. These interim results have been prepared in accordance with International Financial Reporting Standards (the “IFRS”) and have also been reviewed by the audit committee of the Company (the “Audit Committee”). CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30 June 2021 2021 2020 (Unaudited) (Unaudited) Notes RMB’000 RMB’000 REVENUE 4 4,311,908 4,438,652 Cost of sales (3,436,564) (2,832,232) GROSS PROFIT 875,344 1,606,420 Other income and gains 4 82,076 41,694 Selling and distribution expenses (240,424) (195,086) Administrative expenses (279,657) (248,566) Other expenses (23,160) (14,753) Fair value gain/(losses) on investment properties 20,900 (28,763) Finance costs 5 (157,251) (157,897) Share of profits and losses of: Joint ventures 117,090 (15,283) Associates (1,904) 15,080 PROFIT BEFORE TAX 6 393,014 1,002,846 Income tax expense 7 (267,734) (471,092) PROFIT FOR THE PERIOD 125,280 531,754 Attributable to: Owners of the parent 73,851 418,300 Non-controlling interests 51,429 113,454 125,280 531,754 EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT 9 Basic and diluted — For profit for the period RMB0.07 RMB0.56 – 2 – CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2021 2021 2020 (Unaudited) (Unaudited) RMB’000 RMB’000 PROFIT FOR THE PERIOD 125,280 531,754 OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX — — TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 125,280 531,754 Attributable to: Owners of the parent 73,851 418,300 Non-controlling interests 51,429 113,454 125,280 531,754 – 3 – CONSOLIDATED STATEMENT OF FINANCIAL POSITION As of 30 June 2021 30 June 31 December 2021 2020 (Unaudited) (Audited) Note RMB’000 RMB’000 NON-CURRENT ASSETS Property, plant and equipment 216,386 221,873 Investment properties 4,362,300 4,551,600 Right-of-use assets 48,594 51,794 Other intangible assets 20,763 18,268 Investments in joint ventures 722,145 577,807 Investments in associates 667,905 561,101 Deferred tax assets 1,233,739 983,633 Other non-current assets 231,241 223,382 Total non-current assets 7,503,073 7,189,458 CURRENT ASSETS Properties under development 42,758,282 38,657,280 Completed properties held for sale 2,982,367 2,900,193 Trade receivables 10 54,574 72,860 Prepayments and other receivables 5,526,067 3,001,028 Due from related companies 1,261,628 1,149,913 Financial assets at fair value through profit or loss 13,890 11,026 Other current assets 956,686 598,232 Tax recoverable 647,026 568,088 Cash and bank balances 7,784,615 5,925,092 Total current assets 61,985,135 52,883,712 – 4 – 30 June 31 December 2021 2020 (Unaudited) (Audited) Note RMB’000 RMB’000 CURRENT LIABILITIES Trade and bills payables 11 7,106,740 6,800,412 Other payables and accruals 5,418,307 5,789,398 Interest-bearing bank and other borrowings 3,875,958 4,090,066 Contract liabilities 29,906,144 21,592,955 Lease liabilities 4,874 6,220 Due to related companies 331,682 225,595 Tax payable 1,430,972 1,358,474 Senior notes 954,060 — Total current liabilities 49,028,737 39,863,120 NET CURRENT ASSETS 12,956,398 13,020,592 TOTAL ASSETS LESS CURRENT LIABILITIES 20,459,471 20,210,050 NON-CURRENT LIABILITIES Interest-bearing bank and other borrowings 9,793,603 10,167,291 Lease liabilities 3,684 4,824 Deferred tax liabilities 860,029 767,863 Total non-current liabilities 10,657,316 10,939,978 NET ASSETS 9,802,155 9,270,072 EQUITY Equity attributable to owners of the parent Share capital 8,670 8,446 Reserves 7,440,773 7,241,954 7,449,443 7,250,400 Non-controlling interests 2,352,712 2,019,672 Total equity 9,802,155 9,270,072 – 5 – NOTES TO FINANCIAL STATEMENTS 1. BASIS OF PREPARATION The interim condensed consolidated financial information for the six months ended 30 June 2021 has been prepared in accordance with IAS 34 Interim Financial Reporting. The interim condensed consolidated financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended 31 December 2020. 2. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2020, except for the adoption of the following revised International Financial Reporting Standards (“IFRSs”) for the first time for the current period’s financial information. Amendments to IFRS 9, Interest Rate Benchmark Reform — Phase 2 IAS 39, IFRS 7, IFRS 4 and IFRS 16 Amendment to IFRS 16 Covid-19-Related Rent Concessions beyond 30 June 2021 (early adopted) The nature and impact of the revised IFRSs are described below: (a) Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 address issues not dealt with in the previous amendments which affect financial reporting when an existing interest rate benchmark is replaced with an alternative risk-free rate (“RFR”). The phase 2 amendments provide a practical expedient to allow the effective interest rate to be updated without adjusting the carrying amount of financial assets and liabilities when accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities, if the change is a direct consequence of the interest rate benchmark reform and the new basis for determining the contractual cash flows is economically equivalent to the previous basis immediately preceding the change. In addition, the amendments permit changes required by the interest rate benchmark reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued. Any gains or losses that could arise on transition are dealt with through the normal requirements of IFRS 9 to measure and recognise hedge ineffectiveness. – 6 – The amendments also provide a temporary relief to entities from having to meet the separately identifiable requirement when an RFR is designated as a risk component. The relief allows an entity, upon designation of the hedge, to assume that the separately identifiable requirement is met, provided the entity reasonably expects the RFR risk component to become separately identifiable within the next 24 months. Furthermore, the amendments require an entity to disclose additional information to enable users of financial statements to understand the effect of interest rate benchmark reform on an entity’s financial instruments and risk management strategy. The Group had certain interest-bearing bank and other borrowings denominated in RMB and foreign currencies based on the Loan Prime Rate as at 30 June 2021. Since the interest rates of these borrowings were not replaced by RFRs during the period, the amendments did not have any impact on the financial position and performance of the Group. If the interest rates of these borrowings are replaced by RFRs in a future period, the Group will apply this practical expedient upon the modification of these borrowings provided that the “economically equivalent” criterion is met. (b) Amendment to IFRS 16 issued in March 2021 extends the availability of the practical expedient for lessees to elect not to apply lease modification accounting for rent concessions arising as a direct consequence of the covid-19 pandemic by 12 months. Accordingly, the practical expedient applies to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met.