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MarketScreener Homepage  >  Equities  >  Stock Exchange of Hong Kong  >  Hong Kong Exchanges and Clearing Limited    0388   HK0388045442

HONG KONG EXCHANGES AND CLEARING LIMITED

(0388)
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Hong Kong Exchanges and Clearing : ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 30 APRIL 2019 AND RESUMPTION OF TRADING

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08/23/2019 | 11:13am EDT

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.

VONGROUP LIMITED

黃 河 實 業 有 限 公 司*

(incorporated in the Cayman Islands with limited liability)

(Stock code: 318)

ANNOUNCEMENT OF ANNUAL RESULTS

FOR THE YEAR ENDED 30 APRIL 2019

AND

RESUMPTION OF TRADING

The board of directors (the "Directors") of Vongroup Limited (the "Company") wishes to announce the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 30 April 2019 together with comparative figures for the previous year as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 30 April 2019

2019

2018

Notes

HK$'000

HK$'000

Revenue

4

33,953

23,541

Other revenue

4

1,085

1,068

Other gains

4

5

35

Cost of inventories consumed

-

(1,947)

Staff costs

(6,971)

(5,478)

Operating lease rentals

(644)

(610)

Depreciation

(773)

(773)

Operating expenses

(10,226)

(8,402)

Administrative expenses

(4,172)

(3,749)

Net impairment losses recognised in respect of financial assets at

amortised cost

(4,679)

-

Change in fair value of investment properties

15,320

35,817

Profit from operations

5

22,898

39,502

Finance costs

6

(640)

(535)

Profit before taxation

22,258

38,967

Income tax

7

(98)

(191)

Profit for the year

22,160

38,776

Other comprehensive (loss)/income for the year, net of tax

Items that will not be reclassified to profit or loss:

Gain on revaluation of investment property

-

1,231

Changes in fair value of financial assets at fair value through other

comprehensive income

(15,861)

-

Items that may be reclassified subsequently to profit or loss:

Exchange difference on translating of foreign operations

(1,551)

1,966

Other comprehensive (loss)/income for the year, net of tax

(17,412)

3,197

Total comprehensive income for the year

attributable to the owners of the Company

4,748

41,973

Earnings per share (HK$)

9

- Basic and diluted

0.1153

0.2018

1

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 April 2019

2019

2018

Note

HK$'000

HK$'000

Non-current assets

Property, plant and equipment

13,092

13,838

Investment properties

246,697

232,073

Deposits paid for acquisition of property, plant and equipment

364

367

Available-for-sale investments

-

48,499

Financial assets at fair value through profit or loss

1,650

-

Financial assets at fair value through other comprehensive income

24,139

-

285,942

294,777

Current assets

Forfeited collateral held for sale

723

768

Accounts receivable

10

33,641

16,924

Loans and advances to money lending customers

9,957

12,851

Deposits, prepayments and other receivables

45,200

40,596

Financial assets at fair value through profit or loss

8,274

17,355

Cash and bank balances

34,434

34,626

132,229

123,120

Current liabilities

Accruals and deposits received

7,075

4,312

Bank borrowings

26,295

28,188

Tax payables

829

829

34,199

33,329

Net current assets

98,030

89,791

Total assets less current liabilities

383,972

384,568

Non-current liabilities

Deferred tax liabilities

896

801

NET ASSETS

383,076

383,767

CAPITAL AND RESERVES

Share capital

7,688

7,688

Reserves

375,388

376,079

TOTAL EQUITY

383,076

383,767

2

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 30 April 2019

1. SIGNIFICANT ACCOUNTING POLICIES

  1. Statement of compliance
    These consolidated financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and accounting principles generally accepted in Hong Kong. These consolidated 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 "Listing Rules").
    The HKICPA has issued certain new and revised HKFRSs which are first effective or available for early adoption for the current accounting period of the Group. Information on any changes in accounting policies resulting from initial application of these developments to the extent that they are relevant to the Group for the current and prior accounting periods reflected in these consolidated financial statements are set out in Note 2.
  2. Basis of preparation of the consolidated financial statements
    Items included in the financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). These consolidated financial statements are presented in Hong Kong dollars ("HK$"), rounded to the nearest thousand (HK$'000) except otherwise indicated. Hong Kong dollar is the functional currency of the Company and of the most of the subsidiaries.
    Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
    Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of HKFRS 2, leasing transactions that are within the scope of HKAS 17, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in HKAS 2 or value in use in HKAS 36.
    In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
    • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
    • Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
    • Level 3 inputs are unobservable inputs for the asset or liability.

3

2. APPLICATION OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS ("HKFRSs")

The Group has applied the following new and amendments to HKFRSs issued by HKICPA for the first time in the current year:

HKFRS 9

HKFRS 15

HKFRS 15 (Amendments) HK(IFRIC) Int 22 HKFRS 2 (Amendments) HKFRS 4 (Amendments) Amendments to HKFRSs HKAS 40 (Amendments)

Financial Instruments

Revenue from Contracts with Customers and related Amendments Clarification to HKFRS 15 Revenue from Contracts with Customers Foreign Currency Transactions and Advance Consideration Classification and Measurement of Share-based Payment Transactions Applying HKFRS 9 Financial Instruments with HKFRS 4 Insurance Contracts Annual Improvements to HKFRSs 2014-2016 Cycle

Transfers of Investment Property

Except as described below, the application of the new and revised 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. The above new HKFRSs have been applied in accordance with the relevant transition provision in respective standards and amendments which result in change in accounting policies, amounts reported and/or disclosures as described below.

  1. Impact on the consolidated financial statements
    The following tables show the adjustments recognised for each individual line item. Line items that were not affected by the application of new HKFRSs have not been included. As a result, the sub-totals and totals disclosed cannot be recalculated from the numbers provided. The adjustments are explained in more detail by standard below.

At 30 April

At 1 May

Consolidated statement of

2018

HKFRS 9

2018

financial position (extract)

HK$'000

HK$'000

HK$'000

Non-current assets

Available-for-sale investments ("AFS")

48,499

(48,499)

-

Financial assets at fair value through profit or loss ("FVTPL")

-

1,650

1,650

Financial assets at fair value through other

comprehensive income ("FVTOCI")

-

47,754

47,754

Deposits paid for acquisition of property, plant and equipment

367

(3)

364

Current assets

Accounts receivable

16,924

(2,512)

14,412

Loans and advances to money lending customers

12,851

(1,660)

11,191

Deposits, prepayments and other receivables

40,596

(2,169)

38,427

Net current assets

89,791

(6,341)

83,450

Total assets less current liabilities

384,568

(5,439)

379,129

Net assets

383,767

(5,439)

378,328

Capital and reserves

Reserves

376,079

(5,439)

370,640

Total equity

383,767

(5,439)

378,328

  1. HKFRS 9 Financial Instruments
    In the current year, the Group has applied HKFRS 9 "Financial Instruments" and the related consequential amendments to other HKFRSs. HKFRS 9 introduces new requirements for (1) the classification and measurement of financial assets and financial liabilities, (2) expected credit losses ("ECL") for financial assets and (3) general hedge accounting.
    The Group has applied HKFRS 9 in accordance with the transition provisions set out in HKFRS 9, i.e. applied the classification and measurement requirements (including impairment) retrospectively to instruments that have not been derecognised as at 1 May 2018 (date of initial application) and has not applied the requirements to instruments that have already been derecognised as at 1 May 2018. The difference between carrying amounts as at 30 April 2018 and the carrying amounts as at 1 May 2018 are recognised in the opening accumulated losses and other components of equity, without restating comparative information.
    Accordingly, certain comparative information may not be comparable as comparative information was prepared under HKAS 39 "Financial Instruments: Recognition and Measurement".

4

Accounting policies resulting from application of HKFRS 9 disclosed in the consolidated financial statements.

Summary of effects arising from initial application of HKFRS 9

Below illustrates the classification and measurement (including impairment) of financial assets and financial liabilities and other items subject to ECL under HKFRS 9 and HKAS 39 at the date of initial application, 1 May 2018.

Classification and measurement

Deposits

Financial

Financial

paid for

Loans and

acquisition

advances to

Available-

assets

assets

of property,

money

Deposits

for-sale

measured

measured

plant and

Accounts

lending

and other

investments

at FVTOCI

at FVTPL

equipment

receivable

customers

receivables

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

Closing balances at 30 April 2018

48,499

-

-

367

16,924

12,851

40,596

Effect arising from initial

application of HKFRS 9:

Reclassification

from available-for-sale investments

(48,499)

46,967

1,532

-

-

-

-

Re-measurement:

Impairment under ECL

-

-

-

(3)

(2,512)

(1,660)

(2,169)

Fair value changes

-

787

118

-

-

-

-

Opening balances at 1 May 2018

-

47,754

1,650

364

14,412

11,191

38,427

Note:

  1. Reclassification from AFS to financial assets at FVTPL
    The investment in club memberships of the Group with aggregated amount of approximately HK$1,650,000 as at 1 May 2018 were reclassified from AFS to financial assets at FVTPL. This is because even though the Group's business model is to hold financial assets in order to collect contractual cash flows, the cash flows of these investments do not meet the HKFRS 9 criteria as solely payments of principal and interest on the principal amount outstanding. A fair value gain of approximately HK$118,000 relating to club memberships previously carried at cost less impairment were adjusted to accumulated losses at 1 May 2018.
  2. Reclassification from AFS to financial assets at FVTOCI
    The investment in unlisted equity securities of the Group with aggregated amount of approximately HK$47,754,000 as at 1 May 2018 were reclassified from available-for-sale investments to financial assets at FVTOCI. These investments are not held for trading and not expected to be sold in the foreseeable future. The unlisted equity securities do not have a quoted market price in an active market and are measured at cost less impairment under HKAS 39. A fair value gain of approximately HK$787,000 were adjusted to financial assets at FVTOCI reserves at 1 May 2018.
    The measurement categories for all financial liabilities remain the same. The carrying amounts for all financial liabilities at 1 May 2018 have not been impacted by the initial application of HKFRS 9.

Impairment under ECL model

The Group applies the HKFRS 9 simplified approach to measure ECL which uses a lifetime ECL for all accounts receivable. Except for those which had been determined as credit impaired under HKAS 39, the remaining balances are grouped based on internal credit rating and/or past due analysis. The Group has therefore estimated the expected loss rates for the accounts receivable on the same basis.

Except for those which had been determined as credit impaired under HKAS 39, ECL for other financial assets at amortised cost, including deposits paid for acquisition of property, plant and equipment, loans and advances to money lending customers, deposit and other receivables and cash and bank balances, are assessed on 12-month ECL ("12m ECL") basis as there had been no significant increase in credit risk since initial recognition.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

HKEx - Hong Kong Exchanges and Clearing Ltd. published this content on 23 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 August 2019 15:12:02 UTC

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EBIT 2019 11 538 M
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Yield 2019 2,96%
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