China Gas : ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2019

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 GAS HOLDINGS LIMITED

中 國 燃 氣 控 股 有 限 公 司*

(Incorporated in Bermuda with limited liability)

(Stock Code: 384)

ANNUAL RESULTS

FOR THE YEAR ENDED 31 MARCH 2019

The Board of Directors (the ''Board'') of China Gas Holdings Limited (the ''Company'') announces the audited consolidated financial results of the Company and its subsidiaries (the ''Group'') for the year ended 31 March 2019, together with the comparative figures for the year ended 31 March 2018, as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

		Year ended	Year ended
		31 March	31 March
		2019		2018
	Notes	HK$'000	HK$'000
Revenue	3	59,386,062		52,831,958
Cost of sales		(45,326,878)	(41,160,934)
Gross profit		14,059,184		11,671,024
Other income		786,459		563,903
Other gains and losses		295,444		165,328
Selling and distribution costs		(1,819,914)	(1,615,916)
Administrative expenses		(2,442,317)	(1,987,608)
Share of results of associates		519,575		496,822
Share of results of joint ventures		1,132,056		758,313
		12,530,487		10,051,866
Share-based payments		(63,137)	(644,320)
Finance costs		(1,284,304)	(807,781)
Profit before taxation		11,183,046		8,599,765
Taxation	4	(2,198,479)	(1,930,711)
Profit for the year	5	8,984,567		6,669,054

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		Year ended	Year ended
		31 March	31 March
		2019		2018
	Note	HK$'000	HK$'000
Other comprehensive (expense) income
Items that will be reclassified subsequently to profit or loss:
Deferred loss on swap in hedge accounting relationship		(21,764)	-
Decrease in fair value on available-for-sale investments		-	(22,959)
Items that will not be reclassified subsequently to profit or
loss:
Exchange differences arising on translation		(2,490,256)	2,945,501
Decrease in fair value of investments in equity
instruments at fair value through other comprehensive
income		(8,627)	-
Other comprehensive (expense) income for the year		(2,520,647)	2,922,542
Total comprehensive income for the year		6,463,920		9,591,596
Profit for the year attributable to:
Owners of the Company		8,224,382		6,095,153
Non-controlling interests		760,185		573,901
		8,984,567		6,669,054
Total comprehensive income attributable to:
Owners of the Company		5,965,216		8,645,772
Non-controlling interests		498,704		945,824
		6,463,920		9,591,596
Earnings per share
Basic	6	HK$1.63	HK$1.23
Diluted		HK$1.63	HK$1.20

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 March 2019

		2019	2018
	Note	HK$'000		HK$'000
Non-current assets
Investment properties		555,940	272,929
Property, plant and equipment		42,964,931	34,088,413
Prepaid lease payments		2,148,176	1,996,978
Investments in associates		5,746,251	5,924,790
Investments in joint ventures		8,021,611	6,423,615
Equity instruments at fair value through other
comprehensive income		746,766		-
Available-for-sale investments		-	409,176
Goodwill		3,148,019	3,079,624
Other intangible assets		3,594,288	3,903,024
Deposit for acquisition of property, plant and equipment		524,239	663,790
Deposit for acquisition of subsidiaries, joint ventures and
associates and other deposits		596,425	194,038
Deferred tax assets		229,960		224,325
		68,276,606	57,180,702
Current assets
Inventories		3,411,922	3,069,246
Contract assets		7,185,220		-
Amounts due from customers for contract work		-	3,166,968
Trade and other receivables	7	10,061,223	9,019,230
Amounts due from associates		45,037	38,347
Amounts due from joint ventures		7,348,607	935,161
Prepaid lease payments		67,025	63,225
Held-for-trading investments		1,780	48,077
Pledged bank deposits		243,381	290,729
Bank balances and cash		13,238,932		8,246,322
		41,603,127		24,877,305

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		2019		2018
	Note	HK$'000	HK$'000
Current liabilities
Trade and other payables	8	23,698,697		14,044,970
Amounts due to associates		40,849		125
Amounts due to joint ventures		62,022		88,441
Contract liabilities		5,167,594		-
Amounts due to customers for contract work		-	942,632
Derivative financial instrument		22,566		2,338
Taxation		1,244,993		943,784
Bank and other borrowings - due within one year		16,407,520		11,079,288
		46,644,241		27,101,578
Net current liabilities		(5,041,114)	(2,224,273)
Total assets less current liabilities		63,235,492		54,956,429
Equity
Share capital		52,186		49,685
Reserves		35,268,865		28,406,311
Equity attributable to owners of the Company		35,321,051		28,455,996
Non-controlling interests		5,461,357		4,274,104
Total equity		40,782,408		32,730,100
Non-current liabilities
Bank and other borrowings - due after one year		21,491,387		21,293,133
Deferred taxation		961,697		933,196
		22,453,084		22,226,329
		63,235,492		54,956,429

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1. BASIS OF PREPARATION
   The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants (the ''HKICPA''). In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (''Listing Rules'') and by the Hong Kong Companies Ordinance.
   The consolidated financial statements have been prepared on the historical cost basis except for investment properties and certain financial instruments that are measured at fair values.
2. APPLICATION OF NEW AND AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS (''HKFRSs'')
   New and Amendments to HKFRSs that are mandatorily effective for the current year
   The Group has applied the following new and amendments to HKFRSs issued by the HKICPA for the first time in the current year:

HKFRS 9	Financial Instruments
HKFRS 15	Revenue from Contracts with Customers and related Amendments
HK(IFRIC)-Int 22	Foreign Currency Transactions and Advance Consideration
Amendments to HKFRS 2	Classification and Measurement of Share-based Payment Transactions
Amendments to HKFRS 4	Applying HKFRS 9 ''Financial Instruments'' with HKFRS 4 Insurance
	Contracts
Amendments to HKAS 28	As part of the Annual Improvements to HKFRSs 2014-2016 Cycle
Amendments to HKAS 40	Transfers of Investment Property

Except for the effect of HKFRS 9 and HKFRS 15 on the disclosure of consolidated financial statements, the application of the above new and amendments to HKFRSs in the current year has had no material impact on the Group's financial performance and positions for the current and prior years and/or on the disclosures set out in these consolidated financial statements.

Impacts and changes in accounting policies on the adoption of HKFRS 15 ''Revenue from Contracts with

Customers''

The Group has applied HKFRS 15 retrospectively with the cumulative effect of initially applying this standard recognised at the date of initial application, 1 April 2018. Any difference at the date of initial application is recognised in the opening accumulated profits (or other components of equity, as appropriate) and comparative information has not been restated. Furthermore, in accordance with the transition provision in HKFRS 15, the Group has elected to apply the standard retrospectively only to contracts that are not completed at 1 April 2018. Accordingly, certain comparative information may not be comparable as comparative information was prepared under HKAS 18 ''Revenue'' and HKAS 11 ''Construction Contracts'' and the related interpretations.

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