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.
FINANCIAL SUMMARY OF 2015 ANNUAL RESULTS
Revenue of HK$2,516 million
Loss attributable to equity shareholders of HK$46 million
Loss per share of HK$0.17
RESULTS
The board of directors (the "Board") of Tristate Holdings Limited (the "Company") presents the consolidated results of the Company and its subsidiaries (together, the "Group"/"Tristate") for the year ended 31 December 2015 together with comparative figures for 2014.
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
For the year ended 31 December 2015
Note | 2015 HK$'000 | 2014 HK$'000 | |
Revenue | 2, 3 | 2,515,738 | 3,580,029 |
Cost of sales | (1,934,316) | (2,488,627) | |
Gross profit | 581,422 | 1,091,402 | |
Other income and other gains | 4 | 188,021 | 10,039 |
Selling and distribution expenses | (227,265) | (381,579) | |
General and administrative expenses | (541,363) | (622,659) | |
Net gain on disposal of a subsidiary | 5 | - | 137,272 |
Net gain on disposal of freehold land and building | 6 | - | 30,172 |
Impairment of goodwill | 7 | - | (20,893) |
Restructuring costs | 5 | (15,675) | (9,270) |
(Loss)/profit from operations | 8 | (14,860) | 234,484 |
Finance income | 9 | 13,953 | 14,741 |
Finance costs | 9 | (8,510) | (12,686) |
(Loss)/profit before tax | (9,417) | 236,539 | |
Income tax expense | 10 | (36,274) | (88,241) |
(Loss)/profit for the year | (45,691) | 148,298 | |
Attributable to: Equity shareholders of the Company | (45,669) | 148,277 | |
Non-controlling interests | (22) | 21 | |
(Loss)/profit for the year | (45,691) | 148,298 | |
(Loss)/earnings per share attributable to |
equity shareholders of the Company:
Basic 12 HK$(0.17) HK$0.55
Diluted 12 HK$(0.17) HK$0.55 Details of dividends payable to equity shareholders of the Company are set out in Note 11.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2015
2015 HK$'000 | 2014 HK$'000 | |
(Loss)/profit for the year | (45,691) | 148,298 |
Other comprehensive income, net of nil tax unless specified: | ||
Items that may be reclassified subsequently to profit or loss | ||
Fair value losses on cash flow hedges | ||
Losses arising during the year | (37,253) | (36,651) |
Transferred to and included in the following line items | ||
in the consolidated statement of profit and loss: | ||
Cost of sales | 4,185 | 391 |
General and administrative expenses | 3,265 | 7,576 |
Exchange difference on translation of financial statements of overseas subsidiaries
Losses arising during the year (80,634) (8,903)
Reclassification adjustment for translation reserve transferred to consolidated statement of profit and loss:
Upon disposal of a subsidiary | - | 3,742 |
Upon liquidation of a subsidiary | 838 | - |
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans and
long service payment liabilities | (1,429) | (3,878) |
Income tax effect | 720 | 872 |
Other comprehensive income, net of tax | (110,308) | (36,851) |
Total comprehensive income for the year | (155,999) | 111,447 |
Attributable to: | ||
Equity shareholders of the Company | (155,977) | 111,426 |
Non-controlling interests | (22) | 21 |
(155,999) | 111,447 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2015
As at 31 December 2015 | As at 31 December 2014 | ||
Note | HK$'000 | HK$'000 | |
NON-CURRENT ASSETS | |||
Property, plant and equipment | 402,893 | 478,432 | |
Leasehold land and land use rights | 143,356 | 161,486 | |
Intangible assets | 185,822 | 94,528 | |
Other long-term assets | 20,629 | 24,240 | |
Prepayments and other receivables | 30,452 | - | |
Deferred tax assets | 29,874 | 33,777 | |
Defined benefit plan assets | 8,043 | 7,080 | |
Forward foreign exchange contracts | - | 3,389 | |
Investment in an associate | - | - | |
821,069 | 802,932 | ||
CURRENT ASSETS | |||
Inventories | 273,804 | 580,122 | |
Accounts receivable and bills receivable | 13 | 314,590 | 456,164 |
Forward foreign exchange contracts | - | 794 | |
Prepayments and other receivables | 146,631 | 280,836 | |
Cash and bank balances | 666,134 | 723,444 | |
1,401,159 | 2,041,360 | ||
CURRENT LIABILITIES | |||
Accounts payable and bills payable | 14 | 92,830 | 174,832 |
Accruals and other payables | 276,932 | 500,745 | |
Forward foreign exchange contracts | 13,917 | 5,370 | |
Current tax liabilities | 34,505 | 50,943 | |
Bank borrowings | 325,294 | 443,800 | |
743,478 | 1,175,690 | ||
NET CURRENT ASSETS | 657,681 | 865,670 | |
TOTAL ASSETS LESS CURRENT LIABILITIES | 1,478,750 | 1,668,602 | |
NON-CURRENT LIABILITIES | |||
Retirement benefits and other post retirement |
obligations 21,416 19,998
License fees payable - 24,380
Deferred tax liabilities 45,942 58,780
Forward foreign exchange contracts 29,546 12,473
96,904 115,631
NET ASSETS 1,381,846 1,552,971
CAPITAL AND RESERVES
Share capital 27,161 27,119
Reserves 1,354,371 1,525,516
Total equity attributable to equity shareholders
of the Company 1,381,532 1,552,635
Non-controlling interests 314 336
TOTAL EQUITY 1,381,846 1,552,971
Notes:
1. STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION OF THE FINANCIAL STATEMENTSThe consolidated results set out in this announcement do not constitute the Group's annual consolidated financial statements for the year ended 31 December 2015 but are extracted from those financial statements.
The basis of preparation and principal accounting policies applied in the preparation of the consolidated financial statements have been consistently applied to all the years presented, unless otherwise stated.
The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRS"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKAS") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants, accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. The financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The consolidated financial statements for the year ended 31 December 2015 comprise the Group and the Group's interest in an associate.
The financial statements have been prepared under the historical cost basis except that the derivative financial instruments are stated at their fair values.
The preparation of financial statements in conformity with HKFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies.
The Group has adopted the following amendments to HKFRS that are effective for the first time for the Group's financial year beginning 1 January 2015 and are relevant to the Group's operations. The impact on the Group's accounting policies upon adoption is set out below:
HKAS 19 (Amendment), "Employee Benefits: Defined benefit plans: Employee contributions". The amendments introduce a relief to reduce the complexity of accounting for certain contributions from employees or third parties under defined benefit plans. When the contributions are eligible for the practical expedient provided by the amendments, a company is allowed to recognise the contributions as a reduction of the service cost in the period in which the related service is rendered, instead of including them in calculating the defined benefit obligation. The amendments do not have an impact on the financial statements as the defined benefit plans operated/participated by the Group are wholly funded by contributions from the Group and do not involve contribution from employees or third parties.
Annual Improvements to HKFRSs 2010-2012 Cycle and 2011-2013 Cycle. These two cycles of annual improvements contain amendments to other standards. Among them, HKAS 24, "Related party disclosures" has been amended to expand the definition of a "related party" to include a management entity that provides key management personnel services to the reporting entity, and to require the disclosure of the amounts incurred for obtaining the key management personnel services provided by the management entity. These amendments do not have an impact on the Group's related party disclosures as the Group does not obtain key management personnel services from management entities.
The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.