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.
WEST CHINA CEMENT LIMITED
中 國 西 部 水 泥 有 限 公 司
(Incorporated in Jersey with limited liability, with registered number 94796)
(Stock Code: 2233)
THIRD QUARTERLY RESULTS OF 2019 OF
YAOBAI AND ITS SUBSIDIARIES
Reference is made to the announcements of West China Cement Limited (the "Company", together with its subsidiaries, the "Group") dated 30 April 2019 and 8 May 2019 in relation to the issuance of the Medium-term Notes by Yaobai (collectively, the "Announcements"). This announcement is made by the Company pursuant to Rule 13.09(2) of the Listing Rules and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance. Unless otherwise stated, terms used in this announcement shall have the same meanings as those defined in the Announcements.
On 8 May 2019, Yaobai completed the issuance of the first tranche of the Medium-term Notes. The first tranche of the Medium-term Notes was issued in the principal amount of RMB500 million.
According to the relevant PRC regulations and the terms of the Medium-term Notes, Yaobai and its subsidiaries ("Yaobai Group") is required to publish its quarterly results for the nine months ended 30 September 2019 (the "Quarterly Results") on the website of China Money and Shanghai Clearing during the three-years term of the Medium-term Notes.
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Shareholders of the Company ("Shareholders") and potential investors are advised that the Quarterly Results are unaudited and prepared in accordance with the PRC GAAP. There are thus a number of accounting treatments and other differences between the quarterly results of Yaobai Group ("Yaobai Group Results"), and the interim and final results of the Company which are prepared in accordance with IFRS. These differences include, amongst others:
- the exclusion of the results of the Shaanxi Fuping Cement Company Ltd ("Fuping Cement Ltd") from the Yaobai Group Results, as Fuping Cement Ltd is an indirect subsidiary of the Company;
- only part of the interests payable under the Senior Notes are included in the Yaobai Group Results, with the balance being accounted for under the Company's accounts, and there is no foreign exchange translation differences of these Senior Notes in the Yaobai Group Results; and
- none of the expenses of the Company's offshore entities are included in the Yaobai Group Results.
To ensure that all shareholders and potential investors of the Company have equal and timely access to the information pertaining to the Company, set forth below are the Quarterly Results prepared in accordance with the PRC GAAP, which is also published simultaneously on the websites of China Money and Shanghai Clearing.
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1. Balance Sheet
Prepared by: Yaobai Special Cement Group Co., Ltd Unit: | RMB | |||||||
As at | As at | As at | As at | |||||
30 September | 31 December | 30 September | 31 December | |||||
2019 | 2018 | 2019 | 2018 | |||||
Items | Consolidated | Consolidated | Yaobai | Yaobai | ||||
Current Assets: | ||||||||
Monetary capital | 1,096,289,547.98 | 1,014,934,242.16 | 848,286,074.10 | 867,524,565.09 | ||||
Notes receivable and accounts receivable | 735,548,478.61 | 405,657,965.96 | 36,908,849.57 | 12,312,122.84 | ||||
Advance payments | 149,449,889.17 | 118,537,830.90 | 3,612,206.89 | 6,560,061.31 | ||||
Other receivables | 1,284,077,116.47 | 1,144,277,287.12 | 2,512,320,879.99 | 3,669,453,542.17 | ||||
Inventories | 673,827,198.80 | 475,949,101.03 | 459,454.69 | 422,612.50 | ||||
Non-current assets due within one year | 362,584,650.00 | 350,819,071.40 | - | - | ||||
Other current assets | 38,911,897.25 | 54,695,957.81 | - | 566,709.37 | ||||
Total current assets | ||||||||
4,340,688,778.28 | 3,564,871,456.38 | 3,401,587,465.24 | 4,556,839,613.28 | |||||
Non-current assets: | ||||||||
Financial assets available for sale | 20,000,000.00 | 20,000,000.00 | - | - | ||||
Long-term receivables | 188,612,526.02 | 191,495,645.00 | - | - | ||||
Long-term equity investments | 73,354,148.40 | 80,327,363.40 | 4,804,936,831.32 | 4,341,230,446.32 | ||||
Fixed assets | 5,891,247,936.89 | 6,028,911,018.49 | 148,580,898.15 | 150,879,153.27 | ||||
Construction in progress | 1,084,259,031.84 | 449,307,967.65 | 384,871.31 | 384,871.31 | ||||
Intangible assets | 641,224,880.66 | 653,996,800.11 | 18,769,167.14 | 19,325,097.05 | ||||
Goodwill | 183,263,878.86 | 183,263,878.86 | - | - | ||||
Long-term prepaid expenses | 33,724,195.24 | 50,168,268.89 | - | - | ||||
Deferred tax assets | 51,718,503.05 | 51,718,503.05 | 1,568,069.83 | 1,568,069.83 | ||||
Other non-current assets | 176,633,030.00 | 166,426,700.00 | - | - | ||||
Total non-current assets | ||||||||
8,344,038,130.96 | 7,875,616,145.45 | 4,974,239,837.75 | 4,513,387,637.78 | |||||
Total assets | ||||||||
12,684,726,909.24 | 11,440,487,601.83 | 8,375,827,302.99 | 9,070,227,251.06 | |||||
Current liabilities: | ||||||||
Short-term borrowings | 880,000,000.00 | 703,570,760.00 | 690,000,000.00 | 693,570,760.00 | ||||
Notes payable and accounts payable | 1,423,702,406.74 | 645,411,866.41 | 236,197,534.85 | 41,614,699.30 | ||||
Receipts in advance | 285,834,640.54 | 232,766,853.21 | - | 1,200.00 | ||||
Employee benefits payable | 62,085,698.07 | 64,226,734.59 | 6,567,427.60 | 7,971,339.66 | ||||
Taxes payable | 117,064,313.81 | 190,699,761.83 | 496,297.85 | 431,784.37 | ||||
Other payables | 908,268,051.69 | 656,509,702.89 | 686,792,964.02 | 425,940,932.37 | ||||
Non-current assets due within one year | - | 160,000,000.00 | - | 160,000,000.00 | ||||
Other current liabilities | 8,738,079.97 | - | - | - | ||||
Total current liabilities | ||||||||
3,685,693,190.82 | 2,653,185,678.93 | 1,620,054,224.32 | 1,329,530,715.70 | |||||
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As at | As at | As at | As at | |||||
30 September | 31 December | 30 September | 31 December | |||||
2019 | 2018 | 2019 | 2018 | |||||
Items | Consolidated | Consolidated | Yaobai | Yaobai | ||||
Non-current liabilities: | ||||||||
Long-term borrowings | 1,368,592,900.37 | 1,572,461,776.56 | 1,368,592,900.37 | 1,572,461,776.56 | ||||
Debentures payable | 495,722,133.69 | - | 495,722,133.69 | - | ||||
Long-term payables | 41,160,720.13 | 76,612,344.52 | - | |||||
Estimated liabilities | 36,655,802.57 | 36,432,433.34 | - | - | ||||
Deferred income | 44,078,816.04 | 49,754,902.81 | 5,396,573.53 | 6,896,573.56 | ||||
Deferred tax liabilities | 3,703,735.27 | 3,703,735.27 | - | - | ||||
Total non-current liabilities | ||||||||
1,989,914,108.07 | 1,738,965,192.50 | 1,869,711,607.59 | 1,579,358,350.12 | |||||
Total liabilities | ||||||||
5,675,607,298.89 | 4,392,150,871.43 | 3,489,765,831.91 | 2,908,889,065.82 | |||||
Owners' equity (or shareholders' equity): | ||||||||
Paid-in capital (or Share capital) | 1,890,000,000.00 | 1,890,000,000.00 | 1,890,000,000.00 | 1,890,000,000.00 | ||||
Capital reserve | 53,487,937.18 | 53,487,937.18 | 12,715,940.06 | 12,715,940.06 | ||||
Special reserve | 34,989,227.39 | 20,466,565.57 | - | - | ||||
Surplus reserve | 379,579,028.81 | 379,579,028.81 | 379,579,028.81 | 379,579,028.81 | ||||
Undistributed profit | 4,265,760,691.66 | 4,444,820,114.19 | 2,603,766,502.21 | 3,879,043,216.37 | ||||
Total equity attributable to owners of | ||||||||
the Company (or shareholders) | 6,623,816,885.04 | 6,788,353,645.75 | - | - | ||||
Minority interests | 385,302,725.31 | 259,983,084.65 | - | - | ||||
Total owners' equity (or shareholders' equity) | ||||||||
7,009,119,610.35 | 7,048,336,730.40 | 4,886,061,471.08 | 6,161,338,185.24 | |||||
Total liabilities and owners' equity | ||||||||
(or shareholders' equity) | 12,684,726,909.24 | 11,440,487,601.83 | 8,375,827,302.99 | 9,070,227,251.06 | ||||
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2. Income Statement
Prepared by: Yaobai Special Cement Group Co., Ltd Unit: | RMB | ||||||||||||||
2019 Q3 | 2018 Q3 | 2019 Q3 | 2018 Q3 | ||||||||||||
Items | Consolidated | Consolidated | Yaobai | Yaobai | |||||||||||
I. Total operating revenue | 5,110,611,375.62 | 4,103,269,030.12 | 33,408,559.79 | 263,935,773.74 | |||||||||||
Including: | Revenue | 5,110,611,375.62 | 4,103,269,030.12 | 33,408,559.79 | 263,935,773.74 | ||||||||||
II. Total operating costs | |||||||||||||||
3,821,820,357.25 | 3,019,115,006.08 | 79,090,317.67 | 219,066,361.48 | ||||||||||||
Including: | Operating costs | 3,342,855,128.53 | 2,606,905,233.37 | - | 135,548,377.13 | ||||||||||
Taxes and surcharges | 55,741,539.64 | 56,463,045.43 | 1,169,751.07 | 3,831,096.62 | |||||||||||
Selling and distribution expenses | 39,964,453.98 | 34,265,895.23 | 10,287,214.92 | 11,489,610.88 | |||||||||||
General and administrative expenses | 262,533,396.94 | 206,064,976.00 | 59,785,454.21 | 64,051,951.56 | |||||||||||
Research and development expense | - | - | - | - | |||||||||||
Financial expenses | 116,465,488.73 | 105,616,124.79 | 7,847,897.47 | 4,625,916.70 | |||||||||||
Including: Interest expenses | 125,237,544.32 | 113,472,219.48 | 17,334,595.71 | 12,948,550.11 | |||||||||||
Interest income | -10,159,630.11 | -10,502,551.50 | -9,677,986.00 | -10,214,699.83 | |||||||||||
Asset impairment losses | 4,260,349.43 | 9,799,731.26 | - | -480,591.41 | |||||||||||
Add: | Other income | 180,810,475.74 | 198,741,056.58 | 1,500,000.03 | 12,879,361.11 | ||||||||||
Investment income (loss expressed | |||||||||||||||
with "-") | 15,824,264.45 | 18,204,793.40 | 79,891,566.38 | 18,204,793.40 | |||||||||||
Asset disposal income (loss is | |||||||||||||||
represented by "-") | 2,148.29 | - | -67,127.61 | - | |||||||||||
III. Operating profit (loss is represented by "-") | |||||||||||||||
1,485,427,906.85 | 1,301,099,874.02 | 35,642,680.92 | 75,953,566.77 | ||||||||||||
Add: | non-operating income | 7,921,956.58 | 23,291,060.56 | 1,701,971.80 | 6,936,368.10 | ||||||||||
Less: | non-operating expenses | 61,251,540.84 | 7,996,915.64 | 16,300.00 | 911,742.33 | ||||||||||
IV. Total profit (total loss is represented by "-") | |||||||||||||||
1,432,098,322.59 | 1,316,394,018.94 | 37,328,352.72 | 81,978,192.54 | ||||||||||||
Less: | income tax expenses | 210,685,863.32 | 268,538,183.03 | -7,755,083.46 | 11,508,530.82 | ||||||||||
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2019 Q3 | 2018 Q3 | 2019 Q3 | 2018 Q3 | |
Items | Consolidated | Consolidated | Yaobai | Yaobai |
V. Net profit (net loss is represented by "-") | 1,221,412,459.27 | 1,047,855,835.91 | 45,083,436.18 | 70,469,661.72 |
- By continuity of operations
1. Net profit from continuing operations
(net loss expressed with "-") | 1,221,412,459.27 | 1,047,855,835.91 | 45,083,436.18 | 70,469,661.72 |
- By ownership
1. Net profit attributable to shareholders of the Company (net loss is
represented by "-") | 1,142,669,330.83 | 1,032,792,090.41 | - | - | |||||||
2. | Minority interests (net loss is | ||||||||||
represented by "-") | 78,743,128.44 | 15,063,745.50 | - | - | |||||||
VI. Net other comprehensive income after tax | |||||||||||
(I) | Net other comprehensive income after tax | ||||||||||
attributable to owners of the Company | - | - | - | - | |||||||
(II) | Net other comprehensive income after tax | ||||||||||
attributable to minority shareholders | - | - | - | - | |||||||
VII. Total comprehensive income | |||||||||||
1,221,412,459.27 | 1,047,855,835.91 | 45,083,436.18 | 70,469,661.72 | ||||||||
(I) | Total comprehensive income attributable to | ||||||||||
owners of the Company | 1,142,669,330.83 | 1,032,792,090.41 | - | - | |||||||
(II) | Total comprehensive income attributable to | ||||||||||
minority shareholders | 78,743,128.44 | 15,063,745.50 | - | - | |||||||
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3. Cash Flow Statement | ||||
Prepared by: Yaobai Special Cement Group Co., Ltd Unit: | RMB | |||
2019 Q3 | 2018 Q3 | 2019 Q3 | 2018 Q3 | |
Items | Consolidated | Consolidated | Yaobai | Yaobai |
I. Cash flow generated from operating activities: |
Cash received from sales of goods or rendering | |||||||||||
of services | 4,424,152,481.48 | 3,848,840,792.85 | 1,663,522,050.82 | 1,302,394,260.14 | |||||||
Tax refund received | 178,994,552.77 | 204,283,139.95 | 830,771.80 | 12,979,497.01 | |||||||
Cash received relating to other operating | |||||||||||
activities | 358,718,863.77 | 226,826,926.10 | 105,985,339.71 | 7,662,348.88 | |||||||
Sub-total of cash inflow from operating | |||||||||||
activities | 4,961,865,898.02 | 4,279,950,858.90 | 1,770,338,162.33 | 1,323,036,106.03 | |||||||
Cash paid for goods and service | 1,896,620,832.58 | 1,429,570,472.60 | 55,000,000.00 | 60,481,970.07 | |||||||
Cash paid to and for employees | 418,851,761.73 | 277,884,754.96 | 33,309,840.47 | 41,866,720.72 | |||||||
Payments of taxes and surcharges | 723,663,462.20 | 685,558,994.87 | 70,167,051.67 | 70,290,300.97 | |||||||
Cash payments relating to other operating | |||||||||||
activities | 460,108,327.75 | 843,526,485.63 | 211,220,477.18 | 32,315,445.86 | |||||||
Sub-total of cash outflows from operating | |||||||||||
activities | 3,499,244,384.26 | 3,236,540,708.06 | 369,697,369.32 | 204,954,437.62 | |||||||
Net cash flow from operating activities | |||||||||||
1,462,621,513.76 | 1,043,410,150.84 | 1,400,640,793.01 | 1,118,081,668.41 | ||||||||
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2019 Q3 | 2018 Q3 | 2019 Q3 | 2018 Q3 | |||||
Items | Consolidated | Consolidated | Yaobai | Yaobai | ||||
II. Cash flow generated from investing activities: | ||||||||
Cash received from returns on investments | 22,780,000.00 | - | 25,653,584.97 | - | ||||
Net cash received from disposal of fixed assets, | ||||||||
intangible assets and other long-term assets | 303,604.40 | 389,391.01 | - | - | ||||
Cash received relating to other investing | ||||||||
activities | 10,000,000.00 | 40,303,000.00 | - | - | ||||
Sub-total of cash inflows from investing | ||||||||
activities | 33,083,604.40 | 40,692,391.01 | 25,653,584.97 | - | ||||
Cash paid to acquire fixed assets, intangible | ||||||||
assets and other long-term assets | 475,982,675.62 | 394,073,835.28 | 114,033,230.43 | 68,167,971.07 | ||||
Cash paid to acquire investments | - | 59,763,883.33 | 406,878,000.00 | 298,930,000.00 | ||||
Sub-total of cash outflows from investing | ||||||||
activities | 475,982,675.62 | 453,837,718.61 | 520,911,230.43 | 367,097,971.07 | ||||
Net cash flow from investing activities | ||||||||
-442,899,071.22 | -413,145,327.60 | -495,257,645.46 | -367,097,971.07 | |||||
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2019 Q3 | 2018 Q3 | 2019 Q3 | 2018 Q3 | |||||||||||
Items | Consolidated | Consolidated | Yaobai | Yaobai | ||||||||||
III. Cash flow generated from financing activities: | ||||||||||||||
Cash received from capital contributions | 20,550,000.00 | - | - | - | ||||||||||
Including: cash received from capital | ||||||||||||||
contributions by minority | ||||||||||||||
shareholders of subsidiaries | ||||||||||||||
Cash received from borrowings | 1,462,447,500.00 | 650,720,760.00 | 1,460,600,000.00 | 624,770,760.00 | ||||||||||
Cash received from issuance of debentures | ||||||||||||||
Cash received relating to other financing | ||||||||||||||
activities | 2,956,000.00 | - | - | - | ||||||||||
Sub-total of cash inflows from financing | ||||||||||||||
activities | 1,485,953,500.00 | 650,720,760.00 | 1,460,600,000.00 | 624,770,760.00 | ||||||||||
Cash repayments of borrowings | 1,093,244,298.19 | 912,752,783.00 | 1,088,039,636.19 | 911,200,000.00 | ||||||||||
Cash payments for distribution of | ||||||||||||||
dividends profits and interest | 1,304,690,757.86 | 687,998,104.81 | 1,297,182,002.35 | 674,764,881.29 | ||||||||||
Cash payments relating to other financing | ||||||||||||||
activities | 26,385,580.67 | - | - | - | ||||||||||
Sub-total of cash outflows from financing | ||||||||||||||
activities | 2,424,320,636.72 | 1,600,750,887.81 | 2,385,221,638.54 | 1,585,964,881.29 | ||||||||||
Net cash flow from financing activities | ||||||||||||||
-938,367,136.72 | -950,030,127.81 | -924,621,638.54 | -961,194,121.29 | |||||||||||
IV. | Effect of change of foreign currency rates | |||||||||||||
on cash and cash equivalents | - | - | - | - | ||||||||||
V. | Net increase in cash and cash equivalents | |||||||||||||
81,355,305.82 | -319,765,304.57 | -19,238,490.99 | -210,210,423.95 | |||||||||||
Add: Opening balance of cash and | ||||||||||||||
cash equivalents | 1,014,934,242.16 | 1,338,555,212.00 | 867,524,565.09 | 1,121,311,574.00 | ||||||||||
VI. | Closing balance of cash and cash equivalents | |||||||||||||
1,096,289,547.98 | 1,018,789,907.43 | 848,286,074.10 | 911,101,150.05 | |||||||||||
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The information contained in this announcement is prepared based solely on a preliminary assessment by the management of the Company with reference to the information currently available, which have not been reviewed or audited by the Company's auditors. The Quarterly Results in this announcement, which are unaudited, have been prepared in accordance with PRC GAAP. Accordingly, the information contained in this announcement and in the Quarterly Results may differ from those in the audited consolidated financial statements to be published by the Company for the year ending 31 December 2019. Further, the financial information in this announcement is provided for reference only and Shareholders and potential investors of the Company are advised to exercise caution and not to place undue reliance on these information when dealing in the shares of the Company. When in doubt, the shareholders and potential investors of the Company are advised to consult their own professional or financial advisers.
DEFINITIONS
In this announcement, the following terms shall have the following meanings unless the context requires otherwise:
"IFRS" | International Financial Reporting Standards, which collective |
term includes standards and interpretations approved by the | |
International Accounting Standards Board (IASB), and the | |
International Accounting Standards and interpretations | |
issued by the International Accounting Standards Committee | |
(IASC) | |
"Listing Rules" | the Rules Governing the Listing of Securities on The Stock |
Exchange of Hong Kong Limited | |
"PRC" | the People's Republic of China, excluding, for the purpose |
of this announcement only, the Hong Kong Special | |
Administrative Region, the Macau Special Administrative | |
Region, and Taiwan | |
"PRC GAAP" | the Accounting Standards for Business Enterprises issued by |
the Ministry of Finance of the PRC on 15 February 2006, | |
and other relevant accounting principles and financial | |
regulations as promulgated in the PRC | |
"RMB" | Renminbi yuan, the lawful currency of the PRC |
"Senior Notes" | the 6.50% senior notes due 2019 in the aggregate principal |
amount of US$400 million issued by the Company on 4 | |
September 2014 | |
By Order of the Board | |
West China Cement Limited | |
Zhang Jimin | |
Chairman | |
Hong Kong, 29 October 2019 | |
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As at the date of this announcement, the executive Directors are Mr. Zhang Jimin and Dr. Ma Weiping, the non-executive Directors are Mr. Ma Zhaoyang, Ms. Liu Yan and Mr. Fan Changhong and the independent non-executive Directors are Mr. Lee Kong Wai, Conway, Mr. Zhu Dong and Mr. Tam King Ching, Kenny.
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West China Cement Ltd. published this content on 29 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2019 11:36:10 UTC