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CHINA MEDICAL SYSTEM HOLDINGS LIMITED

康哲藥業控股有限公司*

(Incorporated in the Cayman Islands with Limited Liability)

(Stock Code: 867)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2018

The board of Directors (the "Board") of China Medical System Holdings Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (the "Group" or "CMS") for the year ended 31 December 2018 (the "Reporting Period").

Financial Highlights

  • Turnover up 1.6% to RMB5,433.4 million (2017: RMB5,348.8 million); excluding the effect of the "two-invoice system", turnover up 10.0% to RMB6,134.5 million (2017: RMB5,578.6 million)

  • Gross profit up 12.6% to RMB3,916.9 million (2017: RMB3,478.3 million); excluding the effect of the "two-invoice system", gross profit up 10.5% to RMB3,616.8 million (2017: RMB3,272.2 million)

  • Profit for the year up 10.5% to RMB1,844.6 million (2017: RMB1,669.9 million)

  • Basic earnings per share up 10.5% to RMB0.7441 (2017: RMB0.6734)

  • As at 31 December 2018, the Group's bank balances and cash amounted to RMB815.1 million while readily realizable bank acceptance bills amounted to RMB291.6 million

  • Proposed final dividend of RMB0.1434 per share, bringing the total dividend for the year ended 31 December 2018 to RMB0.2970 per share, representing an increase of 10.6% of last year (2017: final dividend of RMB0.1393 and total dividend of RMB0.2686 per share respectively)

*For Identification Only

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018

NOTESTurnover 3 Cost of goods sold

Gross profit

Other gains and losses 4 Selling expenses

Administrative expenses

Finance costs 5 Share of results of associates

Profit before tax

Income tax expense 6

Profit for the year 7

Item that will not be reclassified to profit or loss:

Fair value loss on equity instruments at fair value through other comprehensive income

Items that may be reclassified subsequently to profit or loss:

Share of other comprehensive income (expense) of associates

Exchange differences arising from translation of foreign operations

Fair value loss on available-for-sale investments Change in fair value on cash flow hedges

- fair value gain

- deferred tax relating to change in fair value

Other comprehensive income for the year, net of income tax

Total comprehensive income for the year

Profit (loss) for the year attributable to:

Owners of the Company Non-controlling interestsTotal comprehensive income (expense) for the year attributable to:

Owners of the Company Non-controlling interests

2018

RMB'000

5,433,449

_(1_,_5_1_6_,5_7_5_)

3,916,874

(5,611)

(1,672,595)

2017

RMB'000

5,348,838

_(1_,_8_7_0_,5_3_7_)

3,478,301

(61,216)

(1,382,150)

(243,265) (221,974)

(71,885) (82,250)

____8_2_,8_5_6_ 2,006,374 __(_1_6_1_,7_7_6_) _1_,_8_4_4_,5_9_8_

(14,065)

23,168

211 -

4,121

______(6_8_0_)

____1_2_,7_5_5_

_1_,_8_5_7_,3_5_3_ _________

1,849,883

____(_5_,2_8_5_)

__1_,8_4_4_,_5_9_8 _________

1,862,638 ____(_5_,2_8_5_)

__1_,8_5_7_,_3_5_3 _________

____7_7_,7_2_2_ 1,808,433 __(_1_3_8_,4_9_4_) _1_,_6_6_9_,9_3_9_

-(5,157)

-

(3,271)

12,023

____(_1_,9_8_4_)

_____1_,6_1_1_

_1_,_6_7_1_,5_5_0_ _________

1,674,807

____(_4_,8_6_8_)

_1_,_6_6_9_,9_3_9_ _________

1,676,418 ____(_4_,8_6_8_)

_1_,_6_7_1_,5_5_0_ _________

Earnings per share 9 Basic

RMB

____0_.7_4_4_1_ _________

RMB

0.6734 _________

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2018

Non-current assets

Property, plant and equipment Prepaid lease payments

NOTES

2018 RMB'000

2017 RMB'000

478,268 479,080

61,667 58,868

  • Interests in associates 2,491,478 2,412,387

  • Intangible assets 2,554,075 2,720,326

  • Goodwill 1,384,535 1,384,535

Equity instruments at fair value through

other comprehensive income Available-for-sale investment

Deposits paid for acquisition of intangible assets Derivative financial instruments

Deferred tax assets 14

Current assets Inventories

Trade and other receivables 10 Tax recoverable

Amount due from an associate

Bank balances and cash 11

Current liabilities

Trade and other payables 12 Contract liabilities

Bank borrowings 13 Deferred consideration payables

  • Tax payable

    241,232

    -- 23,020

    95,262 72,142

    32,866 12,023

    ____2_0_,7_1_2_ __7_,3_6_0_,_0_9_5

    ____2_6_,8_8_2_ __7_,1_8_9_,_2_6_3

    434,661 1,718,754

    460,401 1,487,392

    8,296 5,135

    169,565 151,023

    ___8_1_5_,0_8_1_ __3_,1_4_6_,_3_5_7

    ___8_5_5_,6_2_9_ __2_,9_5_9_,_5_8_0

    382,215 5,469

    506,826 -25,000 65,000

    8,847 8,802

  • ___1_2_9_,3_1_4_ ____7_7_,5_1_6_

  • ___5_5_0_,_8_4_5 ___6_5_8_,_1_4_4

  • Net current assets _2_,_5_9_5_,5_1_2_ _2_,_3_0_1_,4_3_6_

Total assets less current liabilities

Capital and reserves

Share capital 15 Reserves

Equity attributable to owners of the Company Non-controlling interests

9,955,607 _________

84,963 _8_,_2_7_0_,8_2_3_

8,355,786 ____4_8_,2_8_9_ __8_,4_0_4_,_0_7_5

9,490,699 _________

85,200 _7_,_1_8_9_,4_8_3_ 7,274,683 ____5_3_,5_7_4_ __7_,3_2_8_,_2_5_7

NOTES

2018 RMB'000

2017 RMB'000

Non-current liabilities Deferred tax liabilities Deferred consideration payables Bank borrowings

14 13

101,411 104,498

9,926 17,896

_1_,_4_4_0_,1_9_5_ __1_,5_5_1_,_5_3_2 9,955,607 _________ _________

_2_,_0_4_0_,0_4_8_ __2_,1_6_2_,_4_4_2 9,490,699 _________

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

  • 1. GENERAL

    China Medical System Holdings Limited (the "Company") was incorporated as an exempted company with limited liability in the Cayman Islands on 18 December 2006. On 26 June 2007, the Company was listed on the Alternative Investment Market ("AIM") operated by the London Stock Exchange plc. The Company was listed on the Main Board operated by The Stock Exchange of Hong Kong Limited on 28 September 2010 and it was delisted from the AIM on the same date. The Company's ultimate holding company and immediate holding company is Treasure Sea Limited, a company incorporated in the British Virgin Islands. The address of the Company's registered office is P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. The address of its principal place of business is Unit 2106, 21/F, Island Place Tower, 510 King's Road, North Point, Hong Kong.

    The Company is an investment holding company. The principal activities of its subsidiaries are production of medicines, marketing, promotion and sale of drugs.

    The consolidated financial statements are presented in Renminbi ("RMB"), which is also the functional currency of the Company and its subsidiaries (collectively referred to as the "Group").

  • 2. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRSs")

    Amendments to IFRSs that are mandatorily effective for the current year

    The Group has applied the following amendments to IFRSs issued by the International Accounting Standards Board ("IASB") for the first time in the current year:

    IFRS 9

    Financial Instruments

    IFRS 15

    Revenue from Contracts with Customers and the related

    Amendments

    IFRIC 22

    Foreign Currency Transactions and Advance

    Consideration

    Amendments to IFRS 2

    Classification and Measurement of Share-based Payment

    Transactions

    Amendments to IFRS 4

    Applying IFRS 9 Financial Instruments with IFRS 4

    Insurance Contracts

    Amendments to IAS 28

    As part of the Annual Improvements to IFRS Standards

    2014 - 2016 Cycle

    Amendments to IAS 40

    Transfers of Investment Property

    Except as described below, the application of the new and amendments to IFRSs 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.

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China Medical System Holdings Ltd. published this content on 18 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 March 2019 13:59:09 UTC