K. Wah International Holdings LimitedHKEX: 173

Announcement of annual results for the year ended 31 december 2016

Mar 21, 2017 at 4:09 AM UTC · Issued by K. Wah International Holdings Limited

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.

(Stock Code: 00173)

Sustaining Success through Excellence and Quality ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 ANNUAL RESULTS HIGHLIGHTS

The Board of Directors ("Board") of K. Wah International Holdings Limited ("Company") is pleased to announce the consolidated annual results of the Company and its subsidiaries (together the "Group") as follows:

Revenue of the Group was HK$9,620 million; taking into account joint ventures and associated companies, total attributable revenue of the Group was HK$12,570 million.

Attributable Contracted Sales of the Group amounted to HK$13 billion with HK$6.7 billion of which expected to be recognised in 2017 and 2018.

Underlying profit of the Group increased 113% to HK$2,808 million. Profit attributable to equity holders of the Company was HK$3,182 million.

Earnings per share was 107.62 HK cents, and the full year dividend per share (including final dividend per share of 13 HK cents) was 18 HK cents.

As of 31 December 2016, net asset value per share was HK$8.58 and cash and bank deposits amounted to HK$7,248 million.

The gearing ratio of the Group decreased to 14% as of 31 December 2016 and the Group has ample financial capabilities for sustainable development.

In 2016, the Group successfully acquired two pieces of land at Kai Tak and in Nanjing with a land premium of HK$5,869 million and RMB1,360 million respectively. In January 2017, the Group also participated in a joint venture, for 33% interest, for development of a land in Nanjing with a land premium of RMB1,020 million. The Group will continue to seek opportunities to augment its landbank on a disciplined basis.

CONSOLIDATED PROFIT AND LOSS STATEMENT For the year ended 31 December 2016

2016	2015
Note	HK$'000	HK$'000
Revenue	3	9,619,956	4,720,487
Cost of sales	(5,096,500)	(1,679,851)
Gross profit	4,523,456	3,040,636
Other operating income	141,154	166,821
Other net gains	77,524	163,228
Fair value gain on transfer of development properties to investment properties	4	345,936	-
Change in fair value of investment properties	107,640	113,528
Other operating expenses	(567,094)	(352,361)
Administrative expenses	(427,632)	(446,029)
Finance costs	5	(22,308)	(61,930)
Share of profits of joint ventures	102,807	76,286
Share of profits of associated companies	790,363	115,166
Profit before taxation	6	5,071,846	2,815,345
Taxation charge	7	(1,845,715)	(1,368,223)
Profit for the year	3,226,131	1,447,122
Attributable to:
Equity holders of the Company	3,181,996	1,366,754
Non-controlling interests	44,135	80,368
3,226,131	1,447,122
HK cents	HK cents
Earnings per share	8
Basic	107.62	48.13
Diluted	107.34	48.06

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2016

2016	2015
HK$'000	HK$'000
Profit for the year	3,226,131	1,447,122
Other comprehensive income/(loss):
Items that may be reclassified to profit and loss:
Change in fair value of non-current investment	1,519,226	(3,127,818)
Exchange differences arising from translation	(1,097,873)	(1,212,769)
Release of exchange reserve upon reduction of interest in subsidiaries	(61,541)	(198,606)
Other comprehensive income/(loss) for the year	359,812	(4,539,193)

Total comprehensive income/(loss) for the year	3,585,943	(3,092,071)
Total comprehensive income/(loss) attributable to:
Equity holders of the Company	3,616,649	(3,090,610)
Non-controlling interests	(30,706)	(1,461)
3,585,943	(3,092,071)

2016	2015
Note	HK$'000	HK$'000
ASSETS
Non-current assets
Property, plant and equipment	446,360	500,680
Investment properties	8,291,075	7,829,881
Leasehold land and land use rights	14,309	15,904
Joint ventures	976,552	837,530
Associated companies	1,278,491	510,218
Non-current investment	5,491,961	3,972,735
Deferred taxation assets	79,431	100,048
Derivative financial instruments	-	846
Other non-current assets	176,519	85,613
16,754,698	13,853,455
Current assets
Development properties	23,677,327	26,395,780
Inventories	2,055	2,680
Amounts due from associated companies	21,699	165,150
Debtors and prepayments	10	1,189,389	1,586,519
Land and tender deposits	1,185,500	25,000
Derivative financial instruments	938	-
Financial assets at fair value through profit or loss	142,567	-
Taxes recoverable	250,252	198,018
Cash and bank deposits	7,248,193	4,337,042
33,717,920	32,710,189
Total assets	50,472,618	46,563,644
EQUITY
Share capital	295,674	283,959
Reserves	25,064,023	21,541,214
Shareholders' funds	25,359,697	21,825,173
Non-controlling interests	1,766,770	1,511,587
Total equity	27,126,467	23,336,760
LIABILITIES
Non-current liabilities
Borrowings	6,934,991	9,418,226
Guaranteed notes	997,843	2,706,597
Derivative financial instruments	986	17,302
Deferred taxation liabilities	1,574,946	1,645,558
9,508,766	13,787,683
Current liabilities
Amounts due to joint ventures	559,343	238,970
Amounts due to associated companies	218,034	31,768
Creditors and accruals	11	1,698,815	1,432,662
Pre-sales deposits	5,798,541	5,404,066
Current portion of borrowings	1,366,069	459,791
Current portion of guaranteed notes	1,713,719	-
Derivative financial instruments	5,004	-
Taxes payable	2,477,860	1,871,944
13,837,385	9,439,201
Total liabilities	23,346,151	23,226,884
Total equity and liabilities	50,472,618	46,563,644
Net current assets	19,880,535	23,270,988
Total assets less current liabilities	36,635,233	37,124,443

CONSOLIDATED BALANCE SHEET As at 31 December 2016

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