(Holdings) Limited 中國航天萬源國際(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. CHINA ENERGINE INTERNATIONAL (HOLDINGS) LIMITED 中 國 航 天 萬 源 國 際( 集 團 )有 限 公 司 * (Incorporated in the Cayman Islands with limited liability) (Stock Code :1185) ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016, APPOINTMENT OF DIRECTOR AND LIST OF DIRECTORS AND THIRD ROLE AND FUNCTIONS RESULTS The directors of China Energine International (Holdings) Limited (the “Company”) are pleased to announce the audited consolidated results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2016 as follows: CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 December 2016 2016 2015 NOTES HK$’000 HK$’000 Turnover 2 2,436,821 2,616,696 Cost of sales (2,145,395) (2,371,786) Gross profit 291,426 244,910 Other income 4 32,585 29,320 Other gains and losses (3,382) (2,836) Selling and distribution expenses (117,606) (123,091) Administrative expenses (160,532) (139,132) Finance costs 5 (78,039) (84,216) Share of results of associates (26,534) (7,086) Share of results of joint ventures 153,770 156,985 Profit before taxation 6 91,688 74,854 Taxation 7 (12,364) (2,701) Profit for the year 79,324 72,153 – 1 – 2016 2015 NOTES HK$’000 HK$’000 Other comprehensive expense: Item that will not be reclassified to profit or loss – exchange differences arising on translation to presentation currency (146,704) (133,371) Total comprehensive expense for the year (67,380) (61,218) Profit (loss) for the year attributable to: Owners of the Company 76,024 75,469 Non-controlling interests 3,300 (3,316) 79,324 72,153 Total comprehensive expense attributable to: Owners of the Company (67,305) (53,677) Non-controlling interests (75) (7,541) (67,380) (61,218) Earnings per share - Basic 9 HK1.74 cents HK1.73 cents – 2 – CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2016 2016 2015 NOTES HK$’000 HK$’000 Non-current assets Investment properties 137,730 140,610 Property, plant and equipment 294,633 329,082 Goodwill 2,004 2,004 Intangible assets 225,085 244,382 Deferred tax assets 1,637 1,759 Interests in associates 353,265 407,587 Interests in joint ventures 1,100,344 1,189,068 Amount due from a joint venture 96,846 100,244 Available-for-sale investments 4,807 2,745 2,216,351 2,417,481 Current assets Inventories 216,520 402,650 Trade and other receivables 10 3,120,499 1,668,582 Amounts due from associates 498,941 880,737 Amount due from a joint venture 26,504 28,358 Pledged bank deposits 2,233 696 Bank balances and cash 241,667 300,298 4,106,364 3,281,321 – 3 – 2016 2015 NOTES HK$’000 HK$’000 Current liabilities Trade and other payables 11 2,006,126 1,422,312 Amounts due to associates 309,637 241,451 Amounts due to joint ventures 277 88 Government grants 839 1,104 Warranty provision 136,731 106,258 Taxation payable 7,654 2,483 Borrowings 856,225 1,130,714 Obligation under a finance lease 130 124 3,317,619 2,904,534 Net current assets 788,745 376,787 Total assets less current liabilities 3,005,096 2,794,268 Non-current liabilities Government grants 28,939 31,295 Borrowings 745,660 494,162 Obligation under a finance lease 22 152 Deferred tax liabilities 20,312 19,731 794,933 545,340 2,210,163 2,248,928 Capital and reserves Share capital 436,900 436,900 Reserves 1,688,005 1,746,618 Equity attributable to owners of the Company 2,124,905 2,183,518 Non-controlling interests 85,258 65,410 Total equity 2,210,163 2,248,928 – 4 – Notes to the Consolidated Financial Statements For the year ended 31 December 2016 1. APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSS”) The Group has applied the following amendments to HKFRSs issued by the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) for the first time in the current year: Amendments to HKFRS 11 Accounting for acquisitions of interests in joint operations Amendments to HKAS 1 Disclosure initiative Amendments to HKAS 16 and HKAS 38 Clarification of acceptable methods of depreciation and amortisation Amendments to HKFRSs Annual improvements to HKFRSs 2012 - 2014 cycle Amendments to HKAS 16 and HKAS 41 Agriculture: Bearer plants Amendments to HKFRS 10, HKFRS 12 Investment entities: Applying the and HKAS 28 consolidation exception Except as described below, the application of the above amendments to HKFRSs in the current year has had no material impact on the Group’s financial performance and position for the current and prior years and/or the disclosures set out in these consolidated financial statements. Amendments to HKAS 1 “Disclosure initiative” The Group has applied the amendments to HKAS 1 “Disclosure initiative” for the first time in the current year. The amendments to HKAS 1 clarify that an entity need not provide a specific disclosure required by an HKFRS if the information resulting from that disclosure is not material, and give guidance on the bases of aggregating and disaggregating information for disclosure purposes. However, the amendments reiterate that an entity should consider providing additional disclosure when compliance with the specific requirements in HKFRS is insufficient to enable users of financial statements to understand the impact of particular transactions, events and conditions on the entity’s financial position and financial performance. In addition, the amendments clarify that an entity’s share of the other comprehensive income of associates and joint ventures accounted for using the equity method should be presented separately from those arising from the Group, and should be separated into the share of items that, in accordance with other HKFRSs: (i) will not be reclassified subsequently to profit or loss; and (ii) will be reclassified subsequently to profit or loss when specific conditions are met. As regards the structure of the financial statements, the amendments provide examples of systematic ordering or grouping of the notes. The Group has applied these amendments retrospectively, and hence certain information was reordered to give prominence to the areas of the Group’s activities that management considers to be most relevant to an understanding of the Group’s financial performance and financial position. – 5 – The Group has not early applied the following new and amendments to HKFRSs that have been issued but are not yet effective: HKFRS 9 Financial instruments1 HKFRS 15 Revenue from contracts with customers and the related amendment1 HKFRS 16 Leases2 Amendments to HKFRS 2 Classification and measurement of share- based payment transactions1 Amendments to HKFRS 4 Applying HKFRS 9 Financial Instruments with HKFRS 4 Insurance Contracts1 Amendments to HKFRS 10 Sale or contribution of assets and HKAS 28 between an investor and its associate or joint venture3 Amendments to HKAS 7 Disclosure Initiative4 Amendments to HKAS 12 Recognition of deferred tax assets for unrealised losses4 Amendments to HKFRSs Annual improvements to HKFRSs 2014-2016 cycle5 1 Effective for annual periods beginning on or after 1 January 2018. 2 Effective for annual periods beginning on or after 1 January 2019. 3 Effective for annual periods beginning on or after a date to be determined. 4 Effective for annual periods beginning on or after 1 January 2017. 5 Effective for annual periods beginning on or after 1 January 2017 or 1 January 2018, as appropriate. Except for the possibility that the application of HKFRS 9, HKFRS 15 and HKFRS 16 in the future may have a potential impact on the consolidated financial information of the Group, the directors of the Company anticipate that the application of the other new and revised HKFRSs will have no material impact on the Group’s consolidated financial statements. 2. TURNOVER An analysis of the Group’s turnover for the year is as follows: 2016 2015 HK$’000 HK$’000 Sales of wind energy related products 1,785,678 1,893,045 Sales of energy storage and related products 541,335 555,550 Sales of goods 84,819 144,546 Sales of electricity from operation of wind power field 24,989 23,555 2,436,821 2,616,696 – 6 – 3. SEGMENT INFORMATION Information reported to the Group’s Executive Directors, being the chief operating decision maker (“CODM”), for the purposes of resource allocation and assessment of segment performance focuses on types of goods or services delivered or provided. No operating segments identified by the chief operating decision maker have been aggregated in arriving at the reportable segments of the Group. Specifically, the Group’s operating and reportable segments for the year under HKFRS 8 “Operating Segments” are as follows: Wind Energy Related — Manufacture and sales of wind energy related products Products Operation of Wind Farm — Sales of electricity from operation of wind power field Rare-earth Permanent — Manufacture and distribution of elevator motors Magnet Motor (“REPM”) Products Telecommunication Business — Development and distribution of communication products, information technology systems, broadband systems, equipment and accessories Energy Storage and — Manufacture and sales of energy renewal products by Related Products combining wind energy, solar energy and energy storage Information regarding these segments is presented below. – 7 – Segment revenue and results The following is an analysis of the Group’s turnover and results by operating and reportable segment.