MIN XIN HOLDINGS LIMITED 閩信集團有限公司 (Incorporated in Hong Kong with Limited Liability) (Stock Code: 222)
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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. MIN XIN HOLDINGS LIMITED 閩信集團有限公司 (Incorporated in Hong Kong with limited liability) (Stock code: 222) ANNOUNCEMENT OF 2018 ANNUAL RESULTS FINANCIAL HIGHLIGHTS • Profit attributable to shareholders amounted to HK$578 million, an increase of 11.8% • Basic earnings per share increased by 0.5% to 96.79 HK cents • Total assets increased by 0.8% to HK$7.3 billion • Total equity attributable to shareholders increased by 3.4% to HK$6.73 billion • Recommended a final dividend of 10 HK cents per ordinary share, an increase of 25% The board (the “Board”) of directors (the “Directors”) of Min Xin Holdings Limited (the “Company”) hereby announces the audited consolidated results of the Company and its subsidiaries (collectively referred to as the “Group”) for the year ended 31 December 2018 as follows: – 1 – CONSOLIDATED INCOME STATEMENT For the year ended 31 December 2018 2018 2017 Note HK$’000 HK$’000 Total revenues 2 1,038,698 960,046 Other (losses)/gains – net 3 (11,427) 25,803 Costs of sales (920,394) (819,733) Net insurance claims incurred and commission expenses incurred on insurance business 4 (36,973) (53,293) Write back of impairment loss on loans to customers and interest receivable 4,016 3,393 Selling and distribution costs (2,332) (1,214) Administrative and other expenses (52,260) (58,947) Operating profit 5 19,328 56,055 Finance costs 6 (26,165) (37,056) Share of results of associates 617,363 517,924 Profit before taxation 610,526 536,923 Income tax expense 7 (32,436) (20,033) Profit for the year 578,090 516,890 Dividend Final dividend 59,726 47,781 HK CENTS HK CENTS Earnings per share Basic and diluted 8 96.79 96.30 Dividend per share Final dividend 10 8 – 2 – CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2018 2018 2017 HK$’000 HK$’000 Profit for the year 578,090 516,890 Other comprehensive income Items that will not be reclassified to income statement: Equity investments at fair value through other comprehensive income – net movement in fair value reserve (non-recycling) 66,903 – Share of other comprehensive income of associates (171) – 66,732 – Items that may be reclassified subsequently to income statement: Available-for-sale financial assets – net movement in fair value reserve (recycling) Fair value changes – (29,946) Deferred income tax – (41) Released on disposal – (10,265) – (40,252) Exchange differences arising on translation of the financial statements of foreign subsidiaries and associates (311,630) 399,654 Share of other comprehensive income of associates 191,041 (139,080) (120,589) 220,322 Other comprehensive income for the year, net of tax (53,857) 220,322 Total comprehensive income for the year 524,233 737,212 – 3 – CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2018 2018 2017 Note HK$’000 HK$’000 Non-current assets Property, plant and equipment 20,935 16,878 Intangible assets 1,573 2,504 Investment properties 169,632 169,818 Associates 4,988,673 4,842,032 Financial assets at fair value through other comprehensive income 570,417 – Available-for-sale financial assets – 503,514 Financial assets at amortised cost 3,129 – Held-to-maturity financial assets – 3,119 Loans to customers and interest receivable 10 – 39 Reinsurance assets 1,546 213 Prepayments 6 180 Pledged bank deposit 227,800 – Deferred income tax assets 535 10,150 5,984,246 5,548,447 Current assets Inventories 10,668 89,946 Investments in receivables – 132,105 Deferred acquisition costs 21,242 16,868 Insurance receivable 9 13,134 10,854 Reinsurance assets 4,791 6,099 Loans to customers and interest receivable 10 22,875 26,026 Banker’s acceptance 56,186 – Other debtors 2,927 6,324 Advance payment 1,387 99,480 Other prepayments and deposits 1,548 1,437 Repossessed assets – 3,940 Financial assets at fair value through profit or loss 306 304 Cash and bank balances 1,177,580 1,300,589 1,312,644 1,693,972 Current liabilities Insurance contracts 65,523 49,991 Insurance payable 11 9,196 7,250 Other creditors and accruals 24,498 29,579 Bank borrowings 198,804 354,141 Current income tax payable 25,495 26,369 323,516 467,330 Net current assets 989,128 1,226,642 Total assets less current liabilities 6,973,374 6,775,089 – 4 – CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued) As at 31 December 2018 2018 2017 Note HK$’000 HK$’000 Non-current liabilities Bank borrowings 199,966 198,131 Insurance contracts 17,482 37,659 Deferred income tax liabilities 24,106 28,397 241,554 264,187 Net assets 6,731,820 6,510,902 Equity Share capital 1,715,377 1,715,377 Other reserves 1,504,672 1,628,236 Retained profits 3,511,771 3,167,289 Total equity attributable to shareholders of the Company 6,731,820 6,510,902 – 5 – Notes 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES The consolidated financial statements of the Group have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”), which collectively refer to all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations (“Ints”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), and have been aligned with accounting principles generally accepted in Hong Kong and the requirements of the Hong Kong Companies Ordinance. The consolidated financial statements also comply with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The consolidated financial statements have been prepared under the historical cost convention except that the following assets and liabilities are stated at their fair value: – financial assets at fair value through other comprehensive income – financial assets and financial liabilities (including derivative financial instruments) at fair value through profit or loss – investment properties Non-current assets and disposal groups held for sale and repossessed assets are stated at the lower of carrying amount and fair value less costs to sell. The financial information relating to the years ended 31 December 2018 and 2017 included in this annual results announcement does not constitute the Company’s statutory annual consolidated financial statements for those years but is derived from those consolidated financial statements. Further information relating to these statutory consolidated financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Chapter 622) is as follows: The Company has delivered the consolidated financial statements for the year ended 31 December 2017 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Hong Kong Companies Ordinance (Chapter 622) and will deliver the consolidated financial statements for the year ended 31 December 2018 in due course. The Company’s former auditor, PricewaterhouseCoopers and the existing auditor, KPMG have reported on those consolidated financial statements for the year ended 31 December 2017 and 2018 respectively. The auditor’s reports were unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its reports; and did not contain a statement under sections 406(2), 407(2) or (3) of the Hong Kong Companies Ordinance (Chapter 622). – 6 – (a) Changes in accounting polices The Group has adopted the following new standards and amendments to standards issued by the HKICPA. – HKFRS 9 Financial Instruments – HKFRS 15 Revenue from Contracts with Customers – Amendments to HKAS 40 Transfers of Investment Property – Amendments to HKFRS 2 Classification and Measurement of Share-Based Payment Transactions – Amendments to HKFRS 4 Applying HKFRS 9 Financial Instruments with HKFRS 4 Insurance Contracts – HK(IFRIC) – Interpretation 22 Foreign Currency Transactions and Advance Consideration – Annual Improvements to HKFRSs 2014 – 2016 Cycle – Amendments to HKFRS 1, First-time Adoption of Hong Kong Financial Reporting Standards – Amendments to HKAS 28, Investments in Associates and Joint Ventures The Group has been impacted by HKFRS 9 in relation to classification and measurement of financial assets and measurement of credit losses. The adoption of other new standards and amendments to standards had insignificant or no effect on these consolidated financial statements. Details of the changes in accounting policies are discussed below. HKFRS 9 replaces HKAS 39 “Financial Instruments: Recognition and Measurement”. It sets out the requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or sell non-financial items. The Group has applied HKFRS 9 retrospectively to items that existed at 1 January 2018 in accordance with the transition requirements. Under the transition method chosen, the Group has recognised the cumulative effect of initial application as an adjustment to the opening equity at 1 January 2018. Therefore, comparative information continues to be reported under HKAS 39 and not restated. – 7 – The following table gives a summary of the opening balance adjustments recognised for each line item in the consolidated statement of financial position