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 EVERBRIGHT LIMITED
(incorporated in Hong Kong with limited liability)
(Stock code: 165)
OVERSEAS REGULATORY ANNOUNCEMENT
This announcement is made by China Everbright Limited (the "Company") pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Please refer to the following announcement which has been published by Ying Li International Real Estate Limited ("Ying Li") on the website of Singapore Exchange Securities Trading Limited ("SGX-ST") on 28 February 2020. As at the date of this announcement, Ying Li is a subsidiary of the Company, whose shares are listed on the Mainboard of SGX-ST.
By order of the Board
China Everbright Limited
Chan Ming Kin Desmond
Company Secretary
Hong Kong, 28 February 2020
As at the date of this announcement, the Directors of the Company are:
Executive Directors: | Independent Non-executive Directors: |
Dr. Cai Yunge (Chairman) | Dr. Lin Zhijun |
Dr. Zhao Wei (Chief Executive Officer) | Dr. Chung Shui Ming Timpson |
Mr. Tang Chi Chun Richard | Mr. Law Cheuk Kin Stephen |
Mr. Zhang Mingao | |
Mr. Yin Lianchen |
Page 1 of 21
Ying Li International Real Estate Ltd
(Company Registration No: 199106356W)
Financial Statement Announcement for 4th Quarter ended 31st December 2019
Part 1 - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS
1(a) A statement of comprehensive income (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
The Board of Directors announces the unaudited results of the Group for the 4th quarter and twelve months ended 31st December 2019.
Group | ||||||
4th Qtr | 4th Qtr | Increase / | Jan to Dec | Jan to Dec | Increase / | |
2019 | 2018 | (Decrease) | 2019 | 2018 | (Decrease) | |
Restated* | Restated* | |||||
RMB ('000) | RMB ('000) | % | RMB ('000) | RMB ('000) | % | |
Revenue | 80,552 | 193,523 | (58.4%) | 358,925 | 752,631 | (52.3%) |
Cost of sales | (47,688) | (89,487) | (46.7%) | (152,061) | (455,466) | (66.6%) |
Gross profit | 32,864 | 104,036 | (68.4%) | 206,864 | 297,165 | (30.4%) |
Other income | 7,824 | 231,122 | (96.6%) | 27,307 | 239,060 | (88.6%) |
Selling expenses | (30,179) | (31,336) | (3.7%) | (70,192) | (66,783) | 5.1% |
Administrative expenses | (56,473) | (43,846) | 28.8% | (140,864) | (135,124) | 4.2% |
Change in fair value of investment properties | (4,600) | 63,814 | n.m. | (371,690) | 63,814 | n.m. |
Change in fair value of other investment | (138,201) | 128,000 | n.m. | (138,201) | 128,000 | n.m. |
Finance costs | (39,833) | (50,838) | (21.6%) | (171,279) | (228,195) | (24.9%) |
Other expenses | 6,645 | (320,698) | n.m. | (17,440) | (514,057) | (96.6%) |
(Loss)/profit before Income Tax | (221,953) | 80,254 | n.m. | (675,495) | (216,120) | 212.6% |
Taxation - current tax | - | (66,589) | (100.0%) | - | (75,504) | (100.0%) |
- deferred tax | 50,365 | 31,957 | 57.6% | 149,571 | 40,296 | 271.2% |
(Loss)/profit for the period | (171,588) | 45,622 | n.m. | (525,924) | (251,328) | 109.3% |
Foreign currency translation differences(at nil tax) | (6,434) | 778 | n.m. | (39,687) | (31,990) | 24.1% |
Total comprehensive (loss)/profit for the period | (178,022) | 46,400 | n.m. | (565,611) | (283,318) | 99.6% |
(Loss)/profit attributable to: | ||||||
Ordinary shareholders of the company | (171,166) | 47,761 | n.m. | (523,432) | (248,159) | 110.9% |
Non-Controlling Interest (NCI) | (422) | (2,139) | (80.3%) | (2,492) | (3,169) | (21.4%) |
(171,588) | 45,622 | (476.1%) | (525,924) | (251,328) | 109.3% | |
Total comprehensive (loss)/profit attributable to: | ||||||
Ordinary shareholders of the company | (177,600) | 48,539 | n.m. | (563,119) | (280,149) | 101.0% |
Non-Controlling Interest (NCI) | (422) | (2,139) | n.m. | (2,492) | (3,169) | (21.4%) |
(178,022) | 46,400 | n.m. | (565,611) | (283,318) | 99.6% |
n.m. - not meaningful
*Please refer to Note A in page 7.
Page 2 of 21
1(b) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
ASSETS
Non-current assets:
Property, plant and equipment Investment in subsidiaries Investment properties Other investment
Deferred assets
Total non-current assets
Current assets: Development properties Trade and other receivables Amount due from subsidiaries Cash and cash equivalents Total current assets
Total assets
EQUITY AND LIABILITIES
Group | Company | ||||
31-Dec-19 | 31-Dec-18 | 1-Jan-18 | 31-Dec-19 | 31-Dec-18 | 1-Jan-18 |
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) |
Restated* | Restated* | Restated** | Restated** | ||
38,534 | 42,652 | 48,493 | 77 | 529 | 979 |
- | - | - | 2,966,325 | 2,966,325 | 2,966,325 |
4,162,080 | 4,535,896 | 4,486,742 | - | - | - |
869,799 | 1,008,000 | 880,000 | - | - | - |
27,529 | 27,529 | 27,529 | - | - | - |
5,097,942 | 5,614,077 | 5,442,764 | 2,966,402 | 2,966,854 | 2,967,304 |
1,131,959 | 1,213,135 | 1,581,157 | - | - | - |
490,365 | 1,663,545 | 2,934,836 | 1,562 | 2,422 | 1,408,321 |
- | - | - | 2,812,930 | 2,313,708 | 1,295,563 |
1,002,498 | 750,510 | 626,910 | 150,043 | 15,488 | 9,184 |
2,624,822 | 3,627,190 | 5,142,903 | 2,964,535 | 2,331,618 | 2,713,068 |
7,722,764 | 9,241,267 | 10,585,667 | 5,930,937 | 5,298,472 | 5,680,372 |
Capital and reserves: | ||||||
Capital contribution | 4,028,372 | 4,028,372 | 4,028,372 | 4,028,372 | 4,028,372 | 4,028,372 |
Reverse acquisition reserve | (2,034,754) | (1,993,712) | (1,993,712) | - | - | - |
Statutory common reserve | 91,018 | 91,018 | 88,588 | - | - | - |
Convertible bond reserve | 42,458 | 42,458 | 42,458 | 42,458 | 42,458 | 42,458 |
Perpetual convertible security | 878,970 | 878,970 | 878,970 | 878,970 | 878,970 | 878,970 |
Translation reserve | (78,710) | (39,023) | (7,033) | (21,055) | (9,470) | (17,510) |
Retained profits/(accumulated losses) | 63,724 | 750,806 | 1,106,771 | (1,177,448) | (1,012,302) | (553,505) |
2,991,078 | 3,758,889 | 4,144,414 | 3,751,297 | 3,928,028 | 4,378,785 | |
Non-Controlling interest | 12,646 | 15,138 | 18,307 | - | - | - |
Total equity | 3,003,724 | 3,774,027 | 4,162,721 | 3,751,297 | 3,928,028 | 4,378,785 |
Non-current liabilities: | ||||||
Deferred taxation | 566,459 | 722,214 | 762,510 | - | - | - |
Borrowings | 1,518,020 | 2,157,466 | 2,820,427 | - | - | 325,997 |
Total non-current liabilities | 2,084,479 | 2,879,680 | 3,582,937 | - | - | 325,997 |
Current liabilities: | ||||||
Trade and other payables | 1,104,738 | 1,241,858 | 1,640,434 | 213,568 | 92,426 | 155,933 |
Amount due to subsidiaries | - | - | - | 1,490,513 | 746,480 | 791,365 |
Provision for taxation | 221,044 | 209,649 | 106,913 | - | - | - |
Borrowings | 1,308,779 | 1,136,053 | 1,092,662 | 475,559 | 531,538 | 28,292 |
Total current liabilities | 2,634,561 | 2,587,560 | 2,840,009 | 2,179,640 | 1,370,444 | 975,590 |
Tota liabilities | 4,719,040 | 5,467,240 | 6,422,946 | 2,179,640 | 1,370,444 | 1,301,587 |
Total equity and liabilities | 7,722,764 | 9,241,267 | 10,585,667 | 5,930,937 | 5,298,472 | 5,680,372 |
- Please refer to Note A in page 7. ** Please refer to Note B in page 11.
Page 3 of 21
Notes to the Statement of Financial Position
Trade and other receivables comprise of the following:
Group | Company | |||||
31-Dec-19 | 31-Dec-18 | 1-Jan-18 | 31-Dec-19 | 31-Dec-18 | 1-Jan-18 | |
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | |
Restated | Restated | Restated | Restated | |||
Trade receivables | 28,380 | 55,478 | 62,425 | - | - | - |
Other receivables: | ||||||
- Deposit for land acquisition | - | - | 519,748 | - | - | - |
- Rental deposits | 1,057 | 625 | 605 | 874 | 613 | 593 |
- Prepayments | 155,860 | 186,429 | 189,392 | 289 | 1,743 | 6,405 |
- Advance placed with contractors, suppliers and | 4,978 | 6,173 | 32,534 | - | - | - |
- Refundable deposits | 17,001 | 19,868 | 43,624 | - | - | - |
- Proceed receivable from disposal of subsidiaries/land | 262,710 | 1,352,710 | 2,035,350 | - | - | 1,401,260 |
- Others | 20,379 | 42,262 | 51,158 | 399 | 66 | 63 |
Total receivables | 490,365 | 1,663,545 | 2,934,836 | 1,562 | 2,422 | 1,408,321 |
Trade and other payables comprise of the following:
Group | Company | |||||
31-Dec-19 | 31-Dec-18 | 1-Jan-18 | 31-Dec-19 | 31-Dec-18 | 1-Jan-18 | |
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | |
Restated | Restated | Restated | Restated | |||
Trade payables | 157,657 | 320,068 | 627,285 | - | - | - |
Other payables: | ||||||
- Other tax payables | 50,011 | 24,877 | 34,116 | 30,681 | 6,511 | - |
- Accrued expenses | 281,472 | 188,339 | 182,733 | 182,887 | 85,915 | 155,933 |
- Advance payment from customers | 47,492 | 135,824 | 333,643 | - | - | - |
- Rental and other deposits | 43,577 | 67,098 | 56,509 | - | - | - |
- Project deposits | - | 10,000 | 10,000 | - | - | - |
- Advances from sub-contractors | 14,251 | 8,815 | 12,088 | - | - | - |
- Other payables | 510,278 | 486,837 | 384,060 | - | - | - |
Total payables | 1,104,738 | 1,241,858 | 1,640,434 | 213,568 | 92,426 | 155,933 |
1(b)(ii) Aggregate amount of group's borrowings and debt securities
Group | ||||||
31-Dec-19 | 31-Dec-18 | 01-Jan-18 | ||||
Secured | Unsecured | Secured | Unsecured | Secured | Unsecured | |
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | |
Borrowings | ||||||
Amount repayable within twelve months | 1,134,380 | 174,399 | 792,103 | 343,950 | 1,092,662 | - |
Amount repayable after twelve months from | ||||||
the reporting date | 1,518,020 | - | 2,157,466 | - | 2,494,430 | 325,997 |
2,652,400 | 174,399 | 2,949,569 | 343,950 | 3,587,092 | 325,997 |
Details of any collateral
Secured borrowings refer to borrowings secured against the subsidiaries' development properties, completed development properties for sale, investment properties and cash deposits.
In accordance with SFRS(I)-1, the Company has adopted the practice to record loans with repayment periods that falls within its operating cycle as current liabilities.
Page 4 of 21
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
Group | ||||
4th Qtr | 4th Qtr | Jan to Dec | Jan to Dec | |
2019 | 2018 | 2019 | 2018 | |
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | |
Restated* | Restated* | |||
Operating activities | ||||
(Loss)/profit before taxation | (221,953) | 80,254 | (675,495) | (216,120) |
Adjustments for: | ||||
Depreciation of property, plant and equipment | 1,287 | 1,453 | 4,596 | 6,178 |
Amortisation of other non-current assets | 1,999 | 1,503 | 7,474 | 5,936 |
Change in fair value loss/(gain) of investment properties | 4,600 | (63,814) | 371,690 | (63,814) |
Change in fair value loss/(gain) of other investment | 138,201 | (128,000) | 138,201 | (128,000) |
Interest expense | 39,833 | 50,838 | 171,279 | 228,195 |
Interest income | (6,163) | (567) | (15,176) | (5,821) |
Gain on disposal of subsidiaries | - | (227,933) | - | (227,933) |
Loss on disposal of property, plant and equipment | 432 | 122 | 434 | 161 |
Impairment on other receivables | - | 312,640 | 24,224 | 325,960 |
Unrealised exchange (gain)/loss | (14,522) | 27,797 | (35,821) | 47,830 |
Operating (loss)/profit before working capital changes | (56,286) | 54,293 | (8,594) | (27,428) |
Change in development properties | 16,640 | (15,266) | 81,176 | 368,022 |
Change in trade and other receivables | (17,730) | 4,720 | 1,143,821 | 1,140,550 |
Change in trade and other payables | (37,016) | 47,001 | (235,660) | (354,364) |
Cash (used in)/generated from operations | (94,392) | 90,748 | 980,743 | 1,126,780 |
Interest paid | (39,320) | (77,560) | (179,625) | (221,089) |
Interest received | 6,163 | 442 | 14,964 | 5,610 |
Income tax paid | (435) | (12) | (435) | (20,698) |
Net cash(used in)/generated from operating activities | (127,984) | 13,618 | 815,647 | 890,603 |
Cash flow from investing activities | ||||
Acquisition of property, plant and equipment | (602) | (2) | (908) | (475) |
Net cash used in investing activities | (602) | (2) | (908) | (475) |
Cash flow from financing activities | ||||
Repayment of minority interest | - | - | (92,163) | - |
Change in restricted bank balances | (4,016) | 27,423 | (8,342) | (204,965) |
Proceed from loans and borrowings | 693,712 | - | 998,160 | 252,663 |
Payment of interest on perpetual convertible securities | - | - | - | (93,662) |
Repayment of borrowings | (659,148) | (152,438) | (1,465,561) | (924,190) |
Net cash generated from/(used in) financing activities | 30,548 | (125,015) | (567,906) | (970,154) |
Net (decrease)/ increase in cash and cash equivalents | (98,038) | (111,399) | 246,833 | (80,026) |
Effects of exchange rate changes on cash and cash equivalents | 5,009 | (768) | (3,188) | (1,339) |
Cash and cash equivalents at beginning of period | 715,731 | 491,224 | 379,057 | 460,422 |
Cash and cash equivalents at end of period | 622,702 | 379,057 | 622,702 | 379,057 |
Restricted cash | 379,796 | 371,453 | 379,796 | 371,453 |
Cash and cash equivalents in the statement of financial position | 1,002,498 | 750,510 | 1,002,498 | 750,510 |
* Please refer to Note A in page 7.
Page 5 of 21 | ||||||||||||
1(d)(i) | A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, | |||||||||||
together with a comparative statement for the corresponding period of the immediately preceding financial year. | ||||||||||||
Consolidated Statement of Changes in Equity for the period ended 31 December 2019 | ||||||||||||
Total | ||||||||||||
Reverse | Convertible | Statutory | Perpetual | attributable to | Non- | |||||||
Group | Capital | acquisition | bonds (equity | common | convertible | Translation | Retained | Ordinary shareholders | Controlling | |||
contribution | reserve | component) | reserve | security | reserve | profits | of the Company | Interest | Total | |||
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | |||
Balance at 31 December 2018-previously stated | 4,028,372 | (1,993,712) | 42,458 | 91,018 | 878,970 | (62,172) | 2,347,351 | 5,332,285 | 56,607 | 5,388,892 | ||
Prior years adjustments (Note A) | - | - | - | - | - | 23,149 | (1,596,545) | (1,573,396) | (41,469) | (1,614,865) | ||
Balance at 1 January 2019-restated | 4,028,372 | (1,993,712) | 42,458 | 91,018 | 878,970 | (39,023) | 750,806 | 3,758,889 | 15,138 | 3,774,027 | ||
Total comprehensive loss for the period-previously stated | - | - | - | - | - | 15,368 | (17,224) | (1,856) | (1,055) | (2,911) | ||
Prior period adjustments | - | - | - | - | - | - | (12,157) | (12,157) | 78 | (12,079) | ||
Total comprehensive loss for the period | - | - | - | - | - | 15,368 | (29,381) | (14,013) | (977) | (14,990) | ||
Perpetual convertible securities interest | - | - | - | - | - | - | (24,030) | (24,030) | - | (24,030) | ||
Balance at 31 March 2019 | 4,028,372 | (1,993,712) | 42,458 | 91,018 | 878,970 | (23,655) | 697,395 | 3,720,846 | 14,161 | 3,735,007 | ||
Total comprehensive loss for the period | - | - | - | - | - | (28,666) | (298,816) | (327,482) | (478) | (327,960) | ||
Perpetual convertible securities interest | - | - | - | - | - | - | (24,571) | (24,571) | - | (24,571) | ||
Balance at 30 June 2019 | 4,028,372 | (1,993,712) | 42,458 | 91,018 | 878,970 | (52,321) | 374,008 | 3,368,793 | 13,683 | 3,382,476 | ||
Acquisition of non-controlling interest | - | (41,042) | - | - | - | - | (51,120) | (92,162) | - | (92,162) | ||
Total comprehensive loss for the period | - | - | - | - | (19,955) | (24,069) | (44,024) | (615) | (44,639) | |||
Perpetual convertible securities interest | - | - | - | - | - | (24,841) | (24,841) | - | (24,841) | |||
Balance at 30 September 2019 | 4,028,372 | (2,034,754) | 42,458 | 91,018 | 878,970 | (72,276) | 273,978 | 3,207,766 | 13,068 | 3,220,834 | ||
- | ||||||||||||
Total comprehensive loss for the period | - | - | - | - | (6,434) | (171,166) | (177,600) | (422) | (178,022) | |||
Perpetual convertible securities interest | - | - | - | - | - | (39,088) | (39,088) | - | (39,088) | |||
Balance at 31 December 2019 | 4,028,372 | (2,034,754) | 42,458 | 91,018 | 878,970 | (78,710) | 63,724 | 2,991,078 | 12,646 | 3,003,724 | ||
- | - | - | - | - | - | - | - | - | - | |||
Balance at 31 December 2017-previously stated | 4,028,372 | (1,993,712) | 42,458 | 88,588 | 878,970 | (14,769) | 2,204,600 | 5,234,507 | 59,202 | 5,293,709 | ||
Prior years adjustments (Note A) | - | - | - | - | - | 7,736 | (1,097,829) | (1,090,093) | (40,895) | (1,130,988) | ||
Balance at 1 January 2018-restated | 4,028,372 | (1,993,712) | 42,458 | 88,588 | 878,970 | (7,033) | 1,106,771 | 4,144,414 | 18,307 | 4,162,721 | ||
Total comprehensive income for the period-previously stated | - | - | - | - | - | (1,505) | 4,690 | 3,185 | 134 | 3,319 | ||
Prior years adjustments (Note A) | - | - | - | - | - | 15,872 | (22,770) | (6,898) | (1,088) | (7,986) | ||
Total comprehensive loss for the period | - | - | - | - | 14,367 | (18,080) | (3,713) | (954) | (4,667) | |||
Perpetual convertible security interest | - | - | - | - | - | - | (31,123) | (31,123) | - | (31,123) | ||
Balance at 31 March 2018 | 4,028,372 | (1,993,712) | 42,458 | 88,588 | 878,970 | 7,334 | 1,057,568 | 4,109,578 | 17,353 | 4,126,931 | ||
Total comprehensive loss for the period-previously stated | - | - | - | - | - | (10,033) | (34,093) | (44,126) | (901) | (45,027) | ||
Prior years adjustments (Note A) | - | - | - | - | - | 388 | (23,672) | (23,284) | 1,132 | (22,152) | ||
Total comprehensive loss for the period | - | - | - | - | - | (9,645) | (57,765) | (67,410) | 231 | (67,179) | ||
Perpetual convertible securities interest | - | - | - | - | - | (24,572) | (24,572) | - | (24,572) | |||
Balance at 30 June 2018 | 4,028,372 | (1,993,712) | 42,458 | 88,588 | 878,970 | (2,311) | 975,231 | 4,017,596 | 17,584 | 4,035,180 | ||
Total comprehensive loss for the period-previously stated | - | - | - | - | - | (37,488) | (31,865) | (69,353) | (983) | (70,336) | ||
Prior years adjustments (Note A) | - | - | - | - | - | (2) | (188,210) | (188,212) | 676 | (187,536) | ||
Total comprehensive loss for the period | - | - | - | - | - | (37,490) | (220,075) | (257,565) | (307) | (257,872) | ||
Perpetual convertible securities interest | - | - | - | - | - | (24,841) | (24,841) | - | (24,841) | |||
Balance at 30 September 2018 | 4,028,372 | (1,993,712) | 42,458 | 88,588 | 878,970 | (39,801) | 730,315 | 3,735,190 | 17,277 | 3,752,467 | ||
Total comprehensive income for the period-previously stated | - | - | - | - | - | 1,623 | 311,825 | 313,448 | (845) | 312,603 | ||
Prior years adjustments (Note A) | (845) | (264,064) | (264,909) | (1,294) | (266,203) | |||||||
Total comprehensive income for the period | - | - | - | - | - | 778 | 47,761 | 48,539 | (2,139) | 46,400 | ||
Perpetual convertible security interest | - | - | - | - | - | - | (24,840) | (24,840) | - | (24,840) | ||
Balance at 31 December 2018 | 4,028,372 | (1,993,712) | 42,458 | 91,018 | 878,970 | (39,023) | 750,806 | 3,758,889 | 15,138 | 3,774,027 | ||
Page 6 of 21 | |||||||
Statement of Changes in Equity of the Company for the period ended 31 December 2019 | |||||||
Convertible | Perpetual | ||||||
Company | Capital | bonds (equity | Translation | convertible | Retained | ||
contribution | component) | reserve | security | profits | Total | ||
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | ||
Balance at 31 December 2018-as previously stated | 4,028,372 | 42,458 | (8,576) | 878,970 | (705,285) | 4,235,939 | |
Prior years adjustments (Note B) | - | - | (894) | - | (307,017) | (307,911) | |
Balance at 1 January 2019-restated | 4,028,372 | 42,458 | (9,470) | 878,970 | (1,012,302) | 3,928,028 | |
Total comprehensive loss for the period-previously stated | - | - | 15,368 | - | (17,224) | (1,856) | |
Prior period adjustments | - | - | (19,912) | - | 924 | (18,988) | |
Total comprehensive loss for the period | - | - | (4,544) | - | (16,300) | (20,844) | |
Perpetual convertible securities interest | - | - | - | (24,030) | (24,030) | ||
Balance at 31 March 2019 | 4,028,372 | 42,458 | (14,014) | 878,970 | (1,052,632) | 3,883,154 | |
Total comprehensive loss for the period | - | - | (2,727) | - | (13,355) | (16,082) | |
Perpetual convertible securities interest | - | - | - | (24,571) | (24,571) | ||
Balance at 30 June 2019 | 4,028,372 | 42,458 | (16,741) | 878,970 | (1,090,558) | 3,842,501 | |
Total comprehensive income for the period | - | - | (1,441) | - | 6,611 | 5,170 | |
Perpetual convertible securities interest | - | - | - | - | (24,843) | (24,843) | |
Balance at 30 September 2019 | 4,028,372 | 42,458 | (18,182) | 878,970 | (1,108,790) | 3,822,828 | |
Total comprehensive loss for the period | - | - | (2,873) | - | (29,570) | (32,443) | |
Perpetual convertible securities interest | - | - | - | - | (39,088) | (39,088) | |
Balance at 31 December 2019 | 4,028,372 | 42,458 | (21,055) | 878,970 | (1,177,448) | 3,751,297 | |
- | - | - | - | ||||
Balance at 31 December 2017-previously stated | 4,028,372 | 42,458 | (24,383) | 878,970 | (554,399) | 4,371,018 | |
Prior years adjustments (Note B) | - | - | 6,873 | - | 894 | 7,767 | |
Balance at 1 January 2018-restated | 4,028,372 | 42,458 | (17,510) | 878,970 | (553,505) | 4,378,785 | |
Total comprehensive loss for the period-previously stated | - | - | (18,890) | - | (12,143) | (31,033) | |
Prior years adjustments (Note B) | - | - | 14,225 | - | - | 14,225 | |
Total comprehensive loss for the period | - | - | (4,665) | - | (12,143) | (16,808) | |
Perpetual convertible securities interest | - | - | - | (31,123) | (31,123) | ||
Balance at 31 March 2018 | 4,028,372 | 42,458 | (22,175) | 878,970 | (596,771) | 4,330,854 | |
Total comprehensive loss for the period-previously stated | - | - | 11,989 | - | (19,464) | (7,475) | |
Prior years adjustments (Note B) | - | - | (9,162) | - | 1 | (9,161) | |
Total comprehensive loss for the period | - | - | 2,827 | - | (19,463) | (16,636) | |
Perpetual convertible securities interest | - | - | - | - | (24,572) | (24,572) | |
Balance at 30 June 2018 | 4,028,372 | 42,458 | (19,348) | 878,970 | (640,806) | 4,289,646 | |
Total comprehensive loss for the period-previously stated | - | - | 41,232 | - | (10,352) | 30,880 | |
Prior years adjustments (Note B) | - | - | (33,193) | - | (3) | (33,196) | |
Total comprehensive loss for the period | - | - | 8,039 | - | (10,355) | (2,316) | |
Perpetual convertible securities interest | - | - | - | - | (24,839) | (24,839) | |
Balance at 30 September 2018 | 4,028,372 | 42,458 | (11,309) | 878,970 | (676,000) | 4,262,491 | |
Total comprehensive loss for the period-previously stated | - | - | (18,524) | - | (3,553) | (22,077) | |
Prior years adjustments (Note B) | - | - | 20,363 | - | (307,909) | (287,546) | |
Total comprehensive loss for the period | - | - | 1,839 | - | (311,462) | (309,623) | |
Perpetual convertible securities interest | - | - | - | - | (24,840) | (24,840) | |
Balance at 31 December 2018 | 4,028,372 | 42,458 | (9,470) | 878,970 | (1,012,302) | 3,928,028 | |
Page 7 of 21
Certain amounts in the comparative information above have been reclassified to conform to the current period Financial Statement due to prior years adjustments and reclassification as set out in Note A and Note B below.
Note A: PRIOR YEARS ADJUSTMENTS / RECLASSIFICATIONS IN THE STATEMENT OF FINANCIAL POSITION FOR THE GROUP
The Company has restated the Statement of Financial Position for the Group, in accordance with SFRS(I) 8 Accounting Policies, Changes in Accounting Estimates and Errors to take into consideration the prior years adjustments ("PYAs") and reclassifications as set out below:
IN RESPECT OF THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As reported | As restated | |||
as at 31 | as at 31 | |||
December 2018 | PYAs | Reclassification | December 2018 | |
THE GROUP | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) |
Statement of Financial Position | ||||
Current Assets | ||||
Development properties | 1,845,275 | (640,318) | 8,178 | 1,213,135 |
Trade and other receivables | 2,031,392 | (357,071) | (10,776) | 1,663,545 |
Capital and Reserves | ||||
Translation reserve | (62,172) | (656) | 23,805 | (39,023) |
Retained profits | 2,347,351 | (1,596,545) | - | 750,806 |
Non-Controlling Interest | 56,607 | (41,469) | - | 15,138 |
Non-Current Liabilities | ||||
Deferred taxation | 641,795 | (136,922) | 217,341 | 722,214 |
Borrowings | 2,166,724 | - | (9,258) | 2,157,466 |
Current Liabilities | ||||
Trade and other payables | 746,702 | 573,481 | (78,325) | 1,241,858 |
Provision for taxation | 170,346 | 204,723 | (165,420) | 209,649 |
Borrowings | 1,126,795 | - | 9,258 | 1,136,053 |
As reported | As restated | |||
as at 1 | as at 1 | |||
January 2018 | PYAs | Reclassification | January 2018 | |
THE GROUP | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) |
Statement of Financial Position | ||||
Current Assets | ||||
Development properties | 2,099,791 | (651,761) | 133,127 | 1,581,157 |
Trade and other receivables | 2,917,625 | (22,521) | 39,732 | 2,934,836 |
Capital and Reserves | ||||
Translation reserve | (14,769) | - | 7,736 | (7,033) |
Retained profits | 2,204,600 | (1,097,833) | 4 | 1,106,771 |
Non-Controlling Interest | 59,202 | (40,895) | - | 18,307 |
Non-Current Liabilities | ||||
Deferred taxation | 634,322 | (61,727) | 189,915 | 762,510 |
Current Liabilities | ||||
Trade and other payables | 1,098,922 | 404,353 | 137,159 | 1,640,434 |
Provision for taxation | 147,048 | 121,820 | (161,955) | 106,913 |
Page 8 of 21 | |||||||||||||||||
IN RESPECT OF THE CONSOLIDATED STATEMENT OF COMPRESHENSIVE INCOME | |||||||||||||||||
As Previous Stated 2018 | PYAs and Reclassification | Restated 2018 | |||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Jan - Dec | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Jan - Dec | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Jan - Dec | |||
RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||
Revenue | 309,549 | 183,843 | 146,200 | 181,461 | 821,053 | (124,987) | (31,665) | 76,168 | 12,062 | (68,422) | 184,562 | 152,178 | 222,368 | 193,523 | 752,631 | ||
Cost of sales | (225,048) | (99,834) | (80,056) | (116,813) | (521,751) | 119,117 | 11,916 | (92,074) | 27,326 | 66,285 | (105,931) | (87,918) | (172,130) | (89,487) | (455,466) | ||
Other income | 1,762 | 4,631 | 1,545 | 230,466 | 238,404 | - | - | - | 656 | 656 | 1,762 | 4,631 | 1,545 | 231,122 | 239,060 | ||
Selling expense | (11,450) | (14,105) | (22,050) | (40,615) | (88,220) | 2,569 | 3,494 | 6,095 | 9,279 | 21,437 | (8,881) | (10,611) | (15,955) | (31,336) | (66,783) | ||
Administrative | |||||||||||||||||
expense | (17,176) | (55,638) | (26,226) | (48,168) | (147,208) | (14,099) | 25,332 | (3,471) | 4,322 | 12,084 | (31,275) | (30,306) | (29,697) | (43,846) | (135,124) | ||
Finance costs | (48,489) | (49,831) | (54,124) | (50,838) | (203,282) | (17,147) | (7,766) | - | - | (24,913) | (65,636) | (57,597) | (54,124) | (50,838) | (228,195) | ||
Other expenses | - | - | - | - | - | 10,688 | (30,793) | (173,254) | (320,698) | (514,057) | 10,688 | (30,793) | (173,254) | (320,698) | (514,057) | ||
Foreign | |||||||||||||||||
currency | |||||||||||||||||
translation | (1,505) | (10,033) | (37,488) | 1,623 | (47,403) | 15,872 | 388 | (2) | (845) | 15,413 | 14,367 | (9,645) | (37,490) | 778 | (31,990) | ||
differences | |||||||||||||||||
Non-Controlling | |||||||||||||||||
interests (NCI) | 134 | (901) | (983) | (845) | (2,595) | (1,088) | 1,132 | 676 | (1,294) | (574) | (954) | 231 | (307) | (2,139) | (3,169) |
Page 9 of 21
IN RESPECT OF THE CONSOLIDATED STATEMENT OF CASH FLOWS
As Previous Stated 2018 | PYAs and Reclassification | Restated 2018 | ||||||||||||||
1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Jan - Dec | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Jan - Dec | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | Jan - Dec | ||
RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | ||
Cash flows from operating activities | ||||||||||||||||
Profit/(Loss) | ||||||||||||||||
before taxation | 9,148 | (30,934) | (34,711) | 347,307 | 290,810 | (23,859) | (29,482) | (186,536) | (267,053) | (506,930) | (14,711) | (60,416) | (221,247) | 80,254 | (216,120) | |
Interest expense | 48,488 | 49,831 | 54,124 | 50,839 | 203,282 | 17,147 | (17,147) | 24,914 | (1) | 24,913 | 65,635 | 32,684 | 79,038 | 50,838 | 228,195 | |
Interest income | (764) | (3,846) | (644) | (567) | (5,821) | 36 | (36) | - | - | - | (728) | (3,882) | (644) | (567) | (5,821) | |
Other expenses | - | - | - | - | - | - | - | 13,320 | 312,640 | 325,960 | - | - | 13,320 | 312,640 | 325,960 | |
Unrealised | ||||||||||||||||
exchange | ||||||||||||||||
loss/(gain) | - | - | 51,417 | (19,004) | 32,413 | 4,721 | 15,747 | (51,852) | 46,801 | 15,417 | 4,721 | 15,747 | (435) | 27,797 | 47,830 | |
Change in | ||||||||||||||||
development | ||||||||||||||||
properties | 198,414 | 10,353 | 70,243 | (24,494) | 254,516 | (38,524) | (11,309) | 154,111 | 9,228 | 113,506 | 159,890 | (956) | 224,354 | (15,266) | 368,022 | |
Change in trade | ||||||||||||||||
and other | ||||||||||||||||
receivables | (7,177) | 1,124,322 | (49,526) | 8,635 | 1,076,254 | (3,337) | 2,328 | 69,220 | (3,915) | 64,296 | (10,514) | 1,126,650 | 19,694 | 4,720 | 1,140,550 | |
Change in trade | ||||||||||||||||
and other | ||||||||||||||||
payables | (295,912) | (37,832) | (128,028) | 105,179 | (356,593) | 71,194 | 12,516 | (23,303) | (58,178) | 2,229 | (224,718) | (25,316) | (151,331) | 47,001 | (354,364) | |
Interest paid | (41,890) | (55,784) | (45,855) | (52,647) | (196,176) | (24,913) | 24,913 | - | (24,913) | (24,913) | (66,803) | (30,871) | (45,855) | (77,560) | (221,089) | |
Interest received | 735 | 3,789 | 520 | 566 | 5,610 | (37) | 37 | 124 | (124) | - | 698 | 3,826 | 644 | 442 | 5,610 | |
Cash flow from financing activities | ||||||||||||||||
Proceed from | ||||||||||||||||
loans and | ||||||||||||||||
borrowings | 108,348 | 144,315 | - | - | 252,663 | (2,424) | 2,424 | - | - | - | 105,924 | 146,739 | - | - | 252,663 | |
Restricted cash | 268,113 | 564,564 | 398,876 | 371,453 | 371,453 | - | - | - | (9,636) | (9,636) | 268,113 | 564,564 | 398,876 | 361,817 | 361,817 |
Page 10 of 21
1. Development properties
The management accounted for the difference between the budgeted and actual cost (i.e. unit cost per square metre) of the projects developed by the Group, then standardized the timing of revenue and costs of sales recognition. Accordingly, the management made corresponding provisions based on the total variance amounting to RMB393.41 million (1 January 2018: RMB404.85 million).
The management has also written down the costs of certain inventories for two projects launched since 2016 amounting to RMB246.91 million (1 January 2018: RMB246.91 million), based on the current net realisable value of the two projects.
2. Trade and other receivables
(a) Balance receivable from disposal of subsidiaries/land
The Group had previously entered into a sale and purchase agreement ("SPA") for the disposal of two subsidiaries to a third party (the "Buyer") for a consideration of RMB3,285.35 million ("Consideration"). As at the date of this financial statement, the Group has received a total payment of RMB2,710.00 million of the Consideration from the Buyer, with a balance of RMB575.35 million remaining payable by the Buyer. Based on the SPA, the Buyer has the right to deduct from the Consideration in the event of non- fulfillment of certain conditions. The management has accessed the recoverability of the balance Consideration and has made provision for impairment losses amounting to RMB327.75 million (1 January 2018: RMB15.10 million) in relation to the balance Consideration receivable based on the available information at the date of each financial statement.
(b) Other receivables
In addition, the management recognized impairment on other receivables amounting to RMB29.32 million (1 January 2018: RMB7.42 million).
3. Trade and other payables
(a) Provision for litigation liabilities
The Company's subsidiary, Chongqing Yingli Real Estate Development Co., Ltd. ("CQYL Real Estate"), is a party to several litigation claims and disputes in People's Republic of China ("PRC") which arose in the previous financial years ("Litigation Matters"). As at the date of this financial statement, while there were certain preliminary judgments made by the courts in PRC in favour of the Group, these Litigation Matters have not concluded as counterparties had filed for appeal against these court judgements. Accordingly, taking into account the information available to the management and the advice obtained from the Group's legal advisers in respect of the potential outcome of the Litigation Matters, the management estimates that the maximum liability faced by the Group as a result of the Litigation Matters could be potentially RMB434.02 million (1 January 2018: RMB270.00 million) (the "Liability"). As it is uncertain at this stage whether CQYL Real Estate would be discharged from any of the liabilities arising from the Litigation Matters, the management has made provisions in respect of the Liability in the financial statement.
(b) Other payables
The management has also made provisions in relation to the under recognition of liabilities amounting to RMB139.46 million (1 January 2018: RMB134.35 million).
4. Deferred taxation
The management recognized additional deferred taxation assets amounting to RMB136.92 million (1 January 2018: RMB61.73 million) based on the temporary differences between the accounting and tax bases arose from the provision liabilities of the Group as well as the writing down of the Group's assets as set out in Note A.
5. Provision for taxation
The management has recalculated the provision of Land Appreciation Tax ("LAT") of the projects developed and made additional provisions amounting to RMB131.22 million (1 January 2018: RMB121.82 million) in the related financial period. The management has also provided for the capital gain taxes amounting to RMB73.50 million (1 January 2018: Nil) derived from the disposal of subsidiaries in 2017 and 2018.
Page 11 of 21
Note B: PRIOR YEARS ADJUSTMENTS / RECLASSIFICATIONS IN THE STATEMENT OF FINANCIAL POSITION FOR THE COMPANY
The Company has restated the Statement of Financial Position for the Company, in accordance with SFRS(I) 8 Accounting Policies, Changes in Accounting Estimates and Errors to take into consideration the PYAs and reclassifications as set out below:
As reported | As restated | |||
as at 31 | as at 31 | |||
December 2018 | PYAs | Reclassification | December 2018 | |
THE COMPANY | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) |
Statement of Financial Position | ||||
Current Assets | ||||
Trade and other receivables | 103,682 | (302,056) | 200,796 | 2,422 |
Amount due from subsidiaries | 2,587,709 | - | (274,001) | 2,313,708 |
Capital and Reserves | ||||
Translation reserve | (8,576) | (894) | - | (9,470) |
Accumulated losses | (705,285) | (307,017) | - | (1,012,302) |
Current Liabilities | ||||
Trade and other payables | 85,915 | 6,511 | - | 92,426 |
Amount due to subsidiaries | 820,341 | (656) | (73,205) | 746,480 |
As reported | As restated | |||
as at 1 | as at 1 | |||
January 2018 | PYAs | Reclassification | January 2017 | |
THE COMPANY | RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) |
Statement of Financial Position | ||||
Current Assets | ||||
Trade and other receivables | 1,211,796 | - | 196,525 | 1,408,321 |
Amount due from subsidiaries | 1,368,768 | - | (73,205) | 1,295,563 |
Capital and Reserves | ||||
Translation reserve | (24,383) | (894) | 7,767 | (17,510) |
Accumulated losses | (554,399) | 894 | - | (553,505) |
Current Liabilities | ||||
Trade and other payables | 69,553 | - | 86,380 | 155,933 |
Amount due to subsidiaries | 762,192 | - | 29,173 | 791,365 |
1. Trade and other receivables
With referred to Note A(2)(a), the management has made provision for impairment losses amounting to RMB302.06 million (1 January 2018: Nil) on the Consideration receivable.
2. Trade and other payables
The management has adjusted the under-provision of withholding tax on the disposal of a PRC subsidiary amounting to RMB6.51 million (1 January 2018: Nil).
1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, subdivision, consolidation, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares or cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year
Perpetual Subordinated Convertible Callable Securities ("Perpetual Convertible Securities")
On 17 October 2014, the Company had issued S$165,000,000 in aggregate principal amount of Tranche 1 Perpetual Convertible Securities and S$20,000,000 in aggregate principal amount of Tranche 2 Perpetual Convertible Securities to Everbright Hero Mauritius Limited, the nominee of Everbright Hero Holdings Limited pursuant to a subscription agreement dated 30 June 2014.
Page 12 of 21
The number of shares that may be issued on conversion of the outstanding securities at the end of the period:
As at | As at | |||||||||||
31 December 2019 | 31 December 2018 | |||||||||||
No. of shares | No. of shares | |||||||||||
The number of shares that may be issued on conversion of outstanding | 581,761,006 | 581,761,006 | ||||||||||
securities at the end of the period | ||||||||||||
No conversion of the securities into Shares has taken place since the date of issuance. The Exercise Price of the Convertible | ||||||||||||
Securities is S$0.318 per Share. | ||||||||||||
There were no outstanding share options and share awards granted under the Ying Li Employee Share Option Scheme ("Ying Li | ||||||||||||
ESOS") and Ying Li Performance Share Plan ("Ying Li PSP") respectively as at 31 December 2019 (31 December 2018: Nil). | ||||||||||||
The Company did not hold any treasury shares as at 31 December 2019 (31 December 2018: Nil). | ||||||||||||
None of the subsidiaries held shares in the Company as at 31 December 2019 (31 December 2018: Nil). | ||||||||||||
1(d)(iii) | To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the | |||||||||||
end of the immediately preceding year. | ||||||||||||
The total number of issued shares as at 31 December 2019 was 2,557,040,024 (31 December 2018: 2,557,040,024). | ||||||||||||
1(d)(iv) | A statement showing all sales, transfer, cancellation and/or use of treasury shares as at the end of the current financial period | |||||||||||
reported on. | ||||||||||||
Not applicable. | ||||||||||||
1(d)(v) | A statement showing all sales, transfer, cancellation and/or use of subsidiary holdings as at the end of the current financial | |||||||||||
period reported on. |
Not applicable.
- Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice. Not applicable.
- Where the figures have been audited or reviewed, the auditors' report (including any modifications or emphasis of a matter).
Not applicable.
3A Where the latest financial statements are subject to an adverse opinion, qualified opinion or disclaimer of opinion: -
- Updates on the efforts taken to resolve each outstanding audit issue.
- Confirmation from the Board that the impact of all outstanding audit issues on the financial statements have been adequately disclosed.
This is not required for any audit issue that is a material uncertainty relating to going concern.
Not applicable.
-
Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
The Group has adopted the new/revised SFRS(I)s that are effective for annual period beginning on or after 1 January 2019. Changes to the Group's accounting policies have been made as required, in accordance with the transitional provisions in the respective SFRS(I)s, SFRS(I) Interpretations and amendments to SFRS(I)s.
The following are the new or amended SFRS(I)s and SFRS(I) Interpretations that are relevant to the Group: - SFRS(I) 16 Leases
- SFRS(I) INT 23 Uncertainty over Income Tax Treatments
- Amendments to SFRS(I) 9 - Prepayment Features with Negative Compensation
- Amendments to SFRS(I) 1-12 Income tax consequences of payments on financial instruments classified as equity
Page 13 of 21
Adoption of SFRS(I) 16:
SFRS(I) 16 Leases introduces a single, on-balance sheet lease accounting model for leases. A lessee recognises a right-of-use (ROU) asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. There are recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current standard, i.e. lessors continue to classify leases as finance or operating leases. The Group and the Company have adopted SFRS(I) 16 Leases on 1 January 2019. The adoption of this new standard did not result in substantial changed to the Group and the Company's accounting policies and has no material effect on the amounts reports for the current financial year.
Other than the above, the adoption of the above SFRS(I)s, SFRS(I) Interpretations and amendments to SFRS(I)s did not have any significant impact on the financial statements of the Group.
-
If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.
Not applicable.
- Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends: -
- Based on the weighted average number of ordinary shares on issue; and
- On a fully diluted basis (detailing any adjustments made to the earnings).
Group
4th Qtr | 4th Qtr | Jan to Dec | Jan to Dec | ||
2019 | 2018 | 2019 | 2018 | ||
Restated | Restated | ||||
Earnings per ordinary share: | |||||
(i) | Based on weighted average no. of | ||||
ordinary shares in issue (RMB per share) | (0.067) | 0.019 | (0.205) | (0.097) | |
(ii) | On a fully diluted basis (RMB per share) | (0.055) | 0.015 | (0.167) | (0.079) |
Number of shares in issue: | |||||
(i) | Based on weighted ave no. of | ||||
ordinary shares in issue ('000) | 2,557,040 | 2,557,040 | 2,557,040 | 2,557,040 | |
(ii) | On a fully diluted basis ('000) | 3,138,801 | 3,138,801 | 3,138,801 | 3,138,801 |
Earnings per ordinary share equals to the Group's profit for the financial periods attributable to the shareholders of the Company divided by the weighted average number of ordinary shares issued during the period under review.
Diluted earnings per ordinary share is calculated based on the similar basis as the earnings per share, except that the weighted average number of ordinary shares outstanding are adjusted for the effects of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary shares: perpetual convertible securities, as of 31 December 2019.
- Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the: -
- current financial period reported on; and
- immediately preceding financial year.
Group | Company | |||
31-Dec-19 | 31-Dec-18 | 31-Dec-19 | 31-Dec-18 | |
Restated | Restated | |||
Net Asset Value (RMB'000) | 3,003,724 | 3,774,027 | 3,751,297 | 3,928,028 |
Based on existing issued share capital (RMB per share) | 1.17 | 1.48 | 1.47 | 1.54 |
Net Asset Value has been computed based on the | ||||
number of share issued (000') | 2,557,040 | 2,557,040 | 2,557,040 | 2,557,040 |
Page 14 of 21
- A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following: -
- any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and
- any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.
STATEMENT OF COMPREHENSIVE INCOME
Due to the nature of the industry that the Group operates in, recognition of revenue from the sale of properties is driven by project hand-over. Consequently, quarterly results may not be a good indication of profitability trend.
For the 12 months and quarter ended 31 December 2019
Revenue
Group | |||||||
Revenue | Increase / | Increase / | |||||
4th Qtr | 4th Qtr | Jan to Dec | Jan to Dec | ||||
(Decrease) | (Decrease) | ||||||
2019 | 2018 | 2019 | 2018 | ||||
RMB ('000) | RMB ('000) | % | RMB ('000) | RMB ('000) | % | ||
Restated | Restated | ||||||
Sale of Properties | 25,400 | 138,945 | (81.7%) | 141,580 | 543,972 | (74.0%) | |
Rental Income | 55,152 | 54,578 | 1.1% | 217,345 | 208,659 | 4.2% | |
80,552 | 193,523 | (58.4%) | 358,925 | 752,631 | (52.3%) |
Revenue for 4QFY2019 declined by 58.4% Y-o-Y, or RMB113.0 million to RMB80.5 million (4QFY2018: RMB193.5 million). The decline was due to a decrease in sale of properties by RMB113.5 million, mainly attributable to lesser office units at Ying Li International Plaza, commercial units at Ying Li International Electrical and Hardware Centre ("Ying Li IEC") being handed over and lower revenue recognised in 4QFY2019. Rental income increased by 1.1% Y-o-Y or RMB0.5 million to RMB55.2 million (4QFY2018: RMB54.6 million), mainly due to a gradual increase in occupancy rates of the rented properties from IFC office and Ying Li IMIX Park Jiefangbei Mall.
For the full year 2019, revenue of the Group decreased by 52.3% Y-o-Y, or RMB393.7 million to RMB358.9 million (FY2018: RMB752.6 million). The decline was due to a decrease in sale of properties by RMB402.4 million, mainly attributable to lesser office units at Ying Li International Plaza, residential unit at Lion City Garden, commercial units at Ying Li IEC being handed over and lower revenue recognised in FY2019. Rental income increased by 4.2% Y-o-Y or RMB8.7 million to RMB217.3 million (FY2018: RMB208.6 million), mainly due to a gradual increase in occupancy rates of the rented properties from IFC office and Ying Li International Plaza office.
Gross profit
Group | |||||||
Gross profit | 4th Qtr | 4th Qtr | Increase / | Jan to Dec | Jan to Dec | Increase / | |
2019 | 2018 | (Decrease) | 2019 | 2018 | (Decrease) | ||
RMB ('000) | RMB ('000) | % | RMB ('000) | RMB ('000) | % | ||
Restated | Restated | ||||||
Sale of Properties | 238 | 62,356 | (99.6%) | 39,271 | 128,423 | (69.4%) | |
Rental Income | 32,626 | 41,680 | (21.7%) | 167,593 | 168,742 | (0.7%) | |
32,864 | 104,036 | (68.4%) | 206,864 | 297,165 | (30.4%) |
Gross profit of the Group for 4QFY2019 decreased by 68.4% Y-o-Y or RMB71.1 million, to RMB32.9 million (4QFY2018: RMB104.0 million) in tandem with the decrease in revenue. The decrease mainly attributable to the lower gross profit contribution from sales of properties segment which decreased by RMB62.1 million
Gross profit for the full year decreased by 30.4% Y-o-Y or RMB90.3 million, to RMB206.9 million (FY2018: RMB 297.2 million). The decrease was due to the decrease in revenue, partially offset by increased in rental income segment's gross profit.
Page 15 of 21 | |||||||||||||
Gross profit margin | |||||||||||||
Group | |||||||||||||
Gross profit and margin | 4th Qtr | 4th Qtr | Jan to Dec | Jan to Dec | |||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
RMB ('000) | % | RMB ('000) | % | RMB ('000) | % | RMB ('000) | % | ||||||
Restated | Restated | ||||||||||||
Sale of Properties | 238 | 0.9% | 62,356 | 44.9% | 39,271 | 27.7% | 128,423 | 23.6% | |||||
Rental Income | 32,626 | 59.2% | 41,680 | 76.4% | 167,593 | 77.1% | 168,742 | 80.9% | |||||
32,864 | 40.8% | 104,036 | 53.8% | 206,864 | 57.6% | 297,165 | 39.5% |
Overall gross profit margin for 4QFY2019 decreased by 13.0%, to 40.8% (4QFY2018: 53.8%), primarily due to lower proportion of revenue contributed by sales of properties income segment.
The gross profit margin for FY2019 increased 18.1% Y-o-Y to 57.6% (FY2018: 39.5%). Gross profit from sale of properties increased by 4.1 percentage point due to mix of properties sold, including older completed commercial office properties with higher profit margin that were sold and handed over in FY2019.
Other income | ||||
Group | ||||
4th Qtr | 4th Qtr | Jan to Dec | Jan to Dec | |
2019 | 2018 | 2019 | 2018 | |
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | |
Restated | Restated | |||
Interest income | 6,163 | 567 | 15,176 | 5,821 |
Advertisement income | 347 | 357 | 1,324 | 1,336 |
Gain on disposal of subsidiaries/land parcel | - | 227,933 | - | 227,933 |
Government grant | - | - | - | 5 |
Others | 1,314 | 2,265 | 10,807 | 3,965 |
7,824 | 231,122 | 27,307 | 239,060 |
Other income for 4QFY2019 decreased by 96.6% Y-o-Y or RMB223.3 million, to RMB7.8 million (4QFY2018: RMB231.1 million), mainly due to a one-off gain on disposal of land parcel completed in 4QFY2018.
Selling expenses
Selling expenses in 4QFY2019 remains relatively stable at RMB30.2million (4QFY2018: RMB31.3 million).
Selling expenses for FY2019 increased slightly by RMB3.4 million as compared to FY2018 mainly due to an increase in advertising and promotion activities. The increase in selling expenses was in tandem with the increased rental income.
Administrative expenses
For 4QFY2019, administrative expenses increased by 28.8% Y-o-Y or RMB12.6 million, to RMB56.4 million (4QFY2018: RMB43.8 million), mainly due to higher advisory service, legal and professional fees.
Administrative expenses for the full year 2019 increased by RMB5.7 million (4.2% Y-o-Y) as compared to the prior year mainly due to legal and professional fees.
Change in fair value of investment properties
In the light of weakening property and office rental market in Chongqing in year 2019, Colliers International (Hong Kong) Limited was commissioned to provide an updated, independent valuation on the investment properties held by the group for year 2019. Based on the completed valuation report, the Group recognised a fair value loss of RMB371.6 million in FY2019.
Change in fair value on other investment
As at 31 December 2019, Cushman & Wakefield Shenzhen Valuation Co., Ltd. Beijing Branch was commissioned to provide an updated, independent valuation on other investment. Based on the completed valuation report, the Group recognised a fair value loss of RMB138.2 million in 4QFY2019 due to the decrease in fair value of Beijing Tongzhou Project following from the tougher policies introduced by local authorities in property sector.
Page 16 of 21
Finance costs
Finance costs in 4QFY2019 decreased by 21.6% Y-o-Y or RMB11.0 million to RMB39.8 million (4QFY2018: RMB50.8 million), mainly due to a decrease in outstanding loan principal.
Other expenses | ||||
Group | ||||
4th Qtr | 4th Qtr | Jan to Dec | Jan to Dec | |
2019 | 2018 | 2019 | 2018 | |
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | |
Restated | Restated | |||
Impairment loss on other receivables | - | 312,640 | 24,223 | 325,960 |
Provision of liabilities on legal cases | - | 6,241 | 3,899 | 164,021 |
Others | 4,698 | - | 7,007 | 6,612 |
Exchange (gain) / loss, net | (11,343) | 1,817 | (17,689) | 17,464 |
(6,645) | 320,698 | 17,440 | 514,057 |
For FY2019, Other expenses decreased by RMB496.6 million mainly due to the Group having recognised significant impairment loss on other receivables and provision of liabilities on legal cases in 4QFY2018, no similar expense was incurred in 4QFY2019.
Taxation
Group | |||||||
4th Qtr | 4th Qtr | Increase / | Jan to Dec | Jan to Dec | Increase / | ||
2019 | 2018 | (Decrease) | 2019 | 2018 | (Decrease) | ||
RMB ('000) | RMB ('000) | % | RMB ('000) | RMB ('000) | % | ||
Restated | Restated | ||||||
Income tax | - | (66,589) | (100.0%) | - | (75,504) | (100.0%) | |
Deferred tax | 50,365 | 31,957 | 57.6% | 149,571 | 40,296 | 271.2% | |
50,365 | (34,632) | n.m. | 149,571 | (35,208) | n.m. |
n.m. - not meaningful
For 4QFY2019 and FY2019, taxation credit increased by RMB85.0 million and RMB184.8 million as compared to 4QFY2018 and FY2018, respectively, mainly due to income tax from gain on disposal of land parcel completed in 4QFY2018 net-off against deferred tax credit recognised as a result of a decrease in fair value of investment properties and other investment.
Loss attributable to ordinary shareholders of the Company
Group | ||||||
4th Qtr | 4th Qtr | Increase / | Jan to Dec | Jan to Dec | Increase / | |
2019 | 2018 | (Decrease) | 2019 | 2018 | (Decrease) | |
RMB ('000) | RMB ('000) | % | RMB ('000) | RMB ('000) | % | |
Restated | Restated | |||||
(Loss)/profit attributable to: | ||||||
Ordinary shareholders of the Company | (171,166) | 47,761 | n.m. | (523,432) | (248,159) | 110.9% |
Non-Controlling Interest (NCI) | (422) | (2,139) | (80.3%) | (2,492) | (3,169) | (21.4%) |
(171,588) | 45,622 | n.m. | (525,924) | (251,328) | 109.3% |
n.m. - not meaningful
Overall, the Group reported in a loss attributable to the ordinary shareholders of the Company which increased by RMB275.3 million in FY2019 as compared to FY2018, mainly due to a decrease in fair value of investment properties amounting to RMB371.7 million recognised in 2QFY2019 and other investment amounting to RMB138.2 million recognised in 4QFY2019.
STATEMENT OF FINANCIAL POSITION
Total Assets of the Group decreased by 16.4% or RMB1,518.5 million, to RMB7,722.8 million (31 December 2018: RMB9,241.3 million), mainly due to (i) a decrease in fair value of investment properties and other investment for RMB512.0 million, (ii) a decrease in development properties of RMB81.2 million arising from the handover of completed properties to purchasers, (iii) a decrease in trade and other receivables of RMB1,173.2 million arising from consideration on disposal of subsidiaries / land parcel proceed received in 2QFY2019, and offset by an increase in cash and cash equivalents of RMB 252.0 million.
Page 17 of 21
The Group's total liabilities decreased by 13.7% or RMB748.2 million, to RMB4,719.0 million (31 December 2018: RMB5,467.2 million), mainly due to (i) a net decrease in bank loan of RMB466.7 million as a result of loan principal repayment, (ii) a decrease in trade and other payables of RMB137.1 million, and (iii) a decrease in deferred taxation liabilities of RMB155.8 million mainly due to a fair value decrease on investment properties and other investment.
The Group's total equity decreased by 20.4% or RMB770.3million to RMB3,003.7 million (31 December 2018: RMB3,774.0 million), mainly due to a decrease in retained profits of RMB687.1 million.
STATEMENT OF CASH FLOW
In 4QFY2019, the decrease in unrestricted cash and cash equivalent of RMB98.0 million was mainly due to:
- net cash outflows of RMB128.0 million from operating activities;
- net cash outflows of RMB0.6 million from investing activities; and
- net cash inflows of RMB30.6 million from financing activities.
The net cash outflows from operating activities of RMB128.0 million was mainly attributable to: (i) cash used in operating before working capital changes of RMB56.0 million, (ii) increased trade and other receivables of RMB18.0 million, (iii) net settlement to trade and other payables of RMB37.0 million, and (iv) net interest and tax paid of RMB33.6million, offset by a decrease in development properties of RMB16.6 million.
Net cash inflows from financing activities of RMB30.6 million was due to the net proceeds of borrowings amounting to RMB34.6 million, and offset against the net increase in restricted deposits with financial institutions amounting to RMB4.0 million to secure borrowing.
-
Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.
The results announced are in line with the previous comments by the Board of Directors.
10 A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months.
Outlook
Generally linked to the country's economic growth, the real estate market form an integral part of the domestic economy. Over the past year, China has faced weakening market conditions in the domestic economy and deteriorating external environment, particularly with the US-China trade tensions. Faced with these economic challenges, China's economy grew by 6.1% in 2019, which was the lowest annual growth rate for the past 29 years. With the outbreak of COVID-19, there could be dampening effect on overall China economic growth in 2020.
In addition, the Chinese government has implemented new regulations and controls over the past few years to prevent the real estate industry from overheating and facilitate the development of a long-term management mechanism for the real estate market.
In Chongqing, where the Group's core real estate business activities are based, it has posted double-digit economic growth for more than a decade, until it fell below 10% in 2017. According to Chongqing Statistics Bureau, Chongqing posted a gross domestic product ("GDP") growth of 6.3% Y-o-Y to RMB 2,361 billion in 2019.
The Group currently has two real estate projects in Chongqing that are under development, namely Lion City Garden that is a retail/residential property project and Ying Li International Hardware and Electrical Centre ("IEC") that is a commercial property project. The Lion City Garden is at Phase 2D of development, while the bespoke development IEC project is at Phase 2B. Majority of the buyers of IEC's Phase 1A and Phase 2A have already taken over the ownership of their respective units. The management is also evaluating the options and appropriate timing to develop the unutilised land portions of these two projects.
The Group's investment property portfolio comprises of integrated office and retail developments, residential properties and commercial properties.
On the office rental segment, the Group continues to focus on retaining existing quality tenants and attracting new tenants by integrated new innovations and creating conducive spaces.
On the retail rental segment, the Group continues to closely monitor new retail trends to create new retail concepts with its tenants so that its retail properties continue to be relevant and interesting to its targeted group of consumers at various locations.
Page 18 of 21
The Group's investment in Beijing New Everbright Centre, located at Beijing Tongzhou, Phase 1 construction, consisting of 4 SOHO towers, has been completed while two office towers of the Phase 2 construction has been recently completed with part of the retail podium still under construction. One of the officer tower of Phase 2 has been sold with a framework agreement signed while the remaining tower has been put up for sale to prospective buyers as at end December 2019. Phase 3 construction consist of one premium office tower and the remaining part of the retail podium was at the piling stage as of end December 2019.
Impact of the coronavirus disease 2019 ("COVID-19")
Due to the COVID-19 outbreak in China, as announced on 6 February 2020, the Group has temporary closed the three retail shopping malls, except for two supermarkets, under its investment property portfolio in accordance with the latest directives from the Chinese government and local authorities in Chongqing. The re-opening dates of the abovementioned retail shopping malls will be announced in due course.
The Group has also instituted precautionary measures to protect the health and safety of its employees, by requiring employees to put face masks at work, conducting temperature checks, contact tracing of employees when they return to work and intensifying the cleaning and disinfecting of common areas. In addition, the Group's employees are advised to work remotely from home unless otherwise required.
The Group will continue to monitor the COVID-19 situation closely, maintain communications with the relevant authorities in Chongqing and implement additional short-term precautionary measures, if required.
As the situation relating to the spread of the COVID-19 remains uncertain, it is currently difficult to ascertain the financial impact it has on the financial performance of the Group. Nevertheless, the Group looks forward to resuming normal operations of its retail shopping malls in Chongqing as soon as it is appropriate to do so.
The Company will provide further updates as soon as there are material developments of the situation.
11 Dividend
- Whether an interim (final) ordinary dividend has been declared (recommended); and No final dividend was declared or recommended.
-
(i) Amount per share. Not applicable.
(ii) Previous corresponding period
No final dividend was declared or recommended in the previous corresponding period.
-
Whether the dividend is before tax, net of tax or tax exempt. If before tax or net of tax, state the tax rate and the country where the dividend is derived. (If the dividend is not taxable in the hands of shareholders, this must be stated).
Not applicable. - The date the dividend is payable. Not applicable.
-
The date on which Registrable Transfers received by the company (up to 5.00 pm) will be registered before entitlements to the dividend are determined.
Not applicable.
- If no dividend has been declared/recommended, a statement to that effect and the reasons for the decision.
No dividend has been declared or recommended for the period. In considering whether to recommend a dividend, the Board has taken a conservative view which includes the macro uncertainties, cash flow and working capital requirements, to mitigate financial risks by retaining a low gearing ratio. - If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect
The Group has not obtained a general mandate from shareholders for IPTs.
Page 19 of 21
- Negative assurance confirmation on interim financial results under SGX Listing Rule 705(5) of the Listing Manual. Not applicable.
-
Confirmation that the issuer has procured undertakings from all its directors and executive officers (in the format set out in Appendix 7.7) under Rule 720(1).
The Group has procured undertakings from all its directors and executive officers in the format as set out in Appendix 7.7 of the SGX Listing Manual.
Part 2 - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results)
16 Segmented revenue and results for business or geographical segments (of the Group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year
- Business segments
Property | Property | |||
31 December 2019 | Investment | Development | Others | Total |
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | |
Revenues | 217,345 | 141,580 | - | 358,925 |
Segment result | 45,180 | (7,129) | (35,026) | 3,025 |
Interest expense | (24,165) | (37,940) | (109,174) | (171,279) |
Interest income | - | - | 15,176 | 15,176 |
Sublet rental income | - | - | 188 | 188 |
Advertisement income | 1,324 | - | - | 1,324 |
Sundry incomes | 9,973 | - | 646 | 10,619 |
Changes in fair value of investment properties | (371,690) | - | - | (371,690) |
Changes in fair value of other investment | - | (138,201) | - | (138,201) |
Impairment loss on other receivables | - | - | (24,223) | (24,223) |
Loss on disposal of property, plant and equipment | - | - | (434) | (434) |
Loss before tax | (339,378) | (183,270) | (152,847) | (675,495) |
ASSETS | ||||
Segment assets | 4,180,841 | 2,547,673 | 966,721 | 7,695,235 |
Unallocated assets | - | - | 27,529 | 27,529 |
Total assets | - | - | - | 7,722,764 |
LIABILITIES | ||||
Segment liabilities | 2,171,296 | 681,940 | 1,213,421 | 4,066,657 |
Unallocated liabilities | - | - | 652,383 | 652,383 |
Total liabilities | - | - | - | 4,719,040 |
OTHER INFORMATION | ||||
Capital expenditure | - | - | 908 | 908 |
Depreciation | - | - | 4,596 | 4,596 |
Page 20 of 21 | |||||
Business segments | |||||
Property | Property | ||||
31 December 2018 | Investment | Development | Others | Total | |
RMB ('000) | RMB ('000) | RMB ('000) | RMB ('000) | ||
Restated | Restated | Restated | Restated | ||
Revenues | 208,659 | 543,972 | - | 752,631 | |
Segment result | 44,643 | 80,970 | (47,658) | 77,955 | |
Interest expense | (125,776) | (46,222) | (56,197) | (228,195) | |
Interest income | - | - | 5,821 | 5,821 | |
Government grant | - | 5 | - | 5 | |
Sublet rental income | - | - | 365 | 365 | |
Advertisement income | 1,336 | - | - | 1,336 | |
Sundry incomes | 3,519 | - | 81 | 3,600 | |
Disposal of land parcel/subsidiaries | - | 227,933 | - | 227,933 | |
Changes in fair value of investment properties | 63,814 | - | - | 63,814 | |
Changes in fair value of other investment | - | 128,000 | - | 128,000 | |
Impairment loss on other receivables | - | (312,640) | (13,320) | (325,960) | |
Provision of liabilities on legal cases | - | - | (164,021) | (164,021) | |
Other expenses | - | (6,612) | - | (6,612) | |
Loss on disposal of property, plant and equipment | - | - | (161) | (161) | |
Loss before tax | (12,464) | 71,434 | (275,090) | (216,120) | |
ASSETS | |||||
Segment assets | 4,557,905 | 3,766,410 | 861,894 | 9,186,209 | |
Unallocated assets | - | - | 55,058 | 55,058 | |
Total assets | - | - | - | 9,241,267 | |
LIABILITIES | |||||
Segment liabilities | 2,255,700 | 1,746,581 | 665,463 | 4,667,744 | |
Unallocated liabilities | - | - | 799,496 | 799,496 | |
Total liabilities | - | - | - | 5,467,240 | |
OTHER INFORMATION | |||||
Capital expenditure | - | - | 475 | 475 | |
Depreciation | - | - | 6,178 | 6,178 |
- The Group derived all of its revenue from the PRC and its non-current assets (i.e. investment properties and property, plant and equipment) are mainly located in the PRC. Therefore, no geographical segment information is presented.
- In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments.
Please refer to review of actual performance as disclosed in paragraph 8 of this announcement. - Breakdown of sales as follows: -
Group | ||||
Jan to Dec | Jan to Dec | Increase/ | ||
2019 | 2018 | (Decrease) | ||
RMB ('000) | RMB ('000) | % | ||
Restated | ||||
(a) | Sales reported for first half year | 137,158 | 336,740 | (59.3%) |
(b) | Operating loss after tax before deducting | |||
non-controlling interest reported for first half year | (329,652) | (76,568) | 330.5% | |
(c) | Sales reported for second half year | 221,767 | 415,891 | (46.7%) |
(d) | Operating loss after tax before deducting | |||
non-controlling interest reported for second half year | (196,272) | (174,760) | 12.3% |
Page 21 of 21
19. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year as follows: -
- Ordinary
- Preference
- Total
Not applicable.
20 Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(13). If there are no such persons, the issuer must make an appropriate negative statement
Pursuant to Rule 704(13) of the Listing Manual, the Company confirms that there is no person occupying a managerial position in the Company or in any of its principal subsidiaries who is a relative of a director, chief executive officer or substantial shareholder of the Company.
BY ORDER OF THE BOARD
Hu Bing
Group Chief Executive Officer and Executive Director 28 February 2020