Capital Finance : ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 (in PDF)

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.

Capital Finance Holdings Limited

首都金融控股有限公司

(Incorporated in the Cayman Islands and continued in Bermuda with limited liability)

(Stock code: 8239)

ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.

Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange 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.

This announcement, for which the directors (the "Directors") of Capital Finance Holdings Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement in this announcement misleading.

The board of directors (the "Board") of Capital Finance Holdings Limited (the "Company") is pleased to report the unaudited condensed consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the three (the "Quarterly Period") and six (the "Interim Period") months ended 30 June 2017 together with the comparative figures in 2016 as follows:

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 June 2017

Three months ended 30 June

Six months ended 30 June

2017 2016 2017 2016

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Note HK$'000 HK$'000 HK$'000 HK$'000

Continuing operation

Revenue 4 18,148 32,841 34,349 70,622

Other income, and other gains and losses, net 4 1,275 1,093 2,918 3,539

Administrative and other expenses (7,978) (10,990) (17,852) (24,206) Loss on early redemption of promissory notes 18(b) - - - (249) Fair value gain on contingent consideration -

loans to customers	14(a)	(921)	(304)	(1,341)	410
Finance costs	5	(10,905)	(10,719)	(21,572)	(21,274)

consideration shares 20 - - - 1,141 (Provision for) Reversal of impairment on

(Loss) Profit before income tax from

continuing operation 6 (381) 11,921 (3,498) 29,983

Income tax expense 7 (2,301) (4,597) (4,198) (9,344)

CONDENSED CONSOLIDATED INCOME STATEMENT (Continued)

For the six months ended 30 June 2017

Three months ended 30 June

Six months ended 30 June

2017 2016 2017 2016

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Note HK$'000 HK$'000 HK$'000 HK$'000

(Loss) Profit for the period from continuing

operation (2,682) 7,324 (7,696) 20,639

Discontinued operation

Profit for the period from discontinued

operation 9 - - - 1,654

(Loss) Profit for the period	(2,682)	7,324	(7,696)	22,293
Attributable to: Owners of the Company	(3,107)	6,700	(8,821)	20,920
Non-controlling interests	425	624	1,125	1,373
(2,682)	7,324	(7,696)	22,293

(Loss) Earnings per share attributable to

owners of the Company 10

From continuing and discontinued

operations
- Basic (Hong Kong cents)	(0.24)	0.57	(0.68)	1.79
- Diluted (Hong Kong cents)	(0.24)	0.57	(0.68)	1.40

From continuing operation

- Basic (Hong Kong cents)	(0.24)	0.57	(0.68)	1.65
- Diluted (Hong Kong cents)	(0.24)	0.57	(0.68)	1.34

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2017

Three months ended 30 June

Six months ended 30 June

2017 2016 2017 2016

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

HK$'000 HK$'000 HK$'000 HK$'000

(Loss) Profit for the period (2,682) 7,324 (7,696) 22,293

Other comprehensive income (losses) for the period

Item that will be reclassified to profit or loss:

• Reclassification adjustment of exchange reserves

  on disposal of interests in foreign operations - - - 3,654

• Exchange differences on translation of financial

statements of foreign operations 11,298 (23,019) 16,355 (16,917)

Total other comprehensive income (losses) for the

period, net of tax 11,298 (23,019) 16,355 (13,263)

Total comprehensive income (losses) for the

period 8,616 (15,695) 8,659 9,030

Attributable to:

Owners of the Company	7,844	(15,865)	7,035	7,994
Non-controlling interests	772	170	1,624	1,036

8,616 (15,695) 8,659 9,030