Hong Kong Exchanges and Clearing : Unaudited Interim Results for the six months ended 30th June, 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.

UNAUDITED INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30TH JUNE, 2019

The board of directors ("Board") of Tian An China Investments Company Limited ("Company") announces that the unaudited consolidated results of the Company and its subsidiaries ("Group") for the six months ended 30th June, 2019 with the comparative figures for the corresponding period in 2018 are as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30th June, 2019

		(Unaudited)
		Six months ended 30th June,
		2019		2018
	Notes	HK$'000	HK$'000
Revenue	(4)	1,005,980		2,355,685
Cost of sales		(535,497)	(1,327,790)
Gross profit		470,483		1,027,895
Other income and gains	(5)	166,006		134,096
Marketing and distribution expenses		(22,271)	(28,451)
Administrative expenses		(171,473)	(145,195)
Other operating expenses		(2,491)	(14,069)
Net increase (decrease) in fair value of equity		16,340
securities at fair value through profit or loss			(15,582)
Net decrease in fair value of financial assets at		(15,406)
fair value through profit or loss		(9,482)
Fair value gain on transfer of inventories of		32,642
completed properties to investment properties			139,295
Increase in fair value of investment properties		131,686		107,261
Write-down of inventories of completed properties		(1,935)	-
Impairment loss on properties for development		(42,330)	-
Amortisation of properties for development		(13,549)	(14,014)
Finance costs		(78,949)	(82,049)
Share of profit of associates		4,867		46,382
Share of profit of joint ventures		527,293		160,529

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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (Continued) For the six months ended 30th June, 2019

		(Unaudited)
		Six months ended 30th June,
		2019		2018
	Notes	HK$'000	HK$'000
Profit before tax		1,000,913		1,306,616
Taxation	(6)	(135,511)	(454,593)
Profit for the period	(7)	865,402		852,023
Profit for the period attributable to:
	853,472
Owners of the Company			836,929
Non-controlling interests		11,930		15,094
		865,402		852,023
		HK cents	HK cents
Earnings per share	(8)	56.64
Basic			55.54

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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30th June, 2019

	(Unaudited)
	Six months ended 30th June,
	2019			2018
	HK$'000	HK$'000
Profit for the period	865,402			852,023
Other comprehensive (expense) income
Items that will not be reclassified to profit or loss:
Exchange differences arising on translation to presentation	(163,863)
currency		(208,442)
Share of other comprehensive expense of associates and	(43,609)
joint ventures		(49,470)
Net change in fair value of investments in equity
instruments at fair value through other comprehensive	(22,689)
income		(15,842)
Deferred tax effect on change in fair value of
investment in an equity instrument at fair value	165
through other comprehensive income			1,513
	(229,996)		(272,241)
Items that may be subsequently reclassified to profit or loss:
Exchange differences arising on translation of	(7,918)
foreign operations		(34,295)
Others	339			254
	(7,579)		(34,041)
Other comprehensive expense for the period	(237,575)		(306,282)
Total comprehensive income for the period	627,827			545,741
Total comprehensive income attributable to:
618,124
Owners of the Company			541,387
Non-controlling interests	9,703			4,354
	627,827			545,741

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30th June, 2019

		(Unaudited)		(Audited)
		30th June,	31st December,
		2019		2018
	Notes	HK$'000		HK$'000
Non-current Assets		225,776
Property, plant and equipment			234,312
Right-of-use assets		39,587			-
Investment properties		13,712,491		13,622,280
Properties for development		3,661,123		3,818,333
Deposits for acquisition of properties		191,923
for development			193,245
Prepaid lease payments on land use rights		-	39,212
Other assets - properties interests		16,783	17,225
Interests in associates		2,893,918	2,891,331
Interests in joint ventures		6,119,686	5,304,245
Loans receivable		283,153	264,305
Financial assets at fair value through profit or loss		187,197	114,790
Equity instruments at fair value through		316,821
other comprehensive income		211,698
Club memberships		10,500	10,500
Deferred tax assets		119,029	116,962
		27,777,987		26,838,438
Current Assets
Inventories of properties		2,125,679
- under development			1,797,689
- completed		3,559,628		3,993,950
Other inventories		2,738		415
Amounts due from associates		189,792		202,792
Amounts due from joint ventures		1,323,254		1,333,437
Amounts due from non-controlling interests		18,182		18,391
Loans receivable		956,564		1,369,144
Trade and other receivables, deposits and		360,031
prepayments	(9)		331,494
Prepaid lease payments on land use rights		-	892
Financial assets at fair value through profit or loss		176,136	229,885
Equity securities at fair value through profit or loss		61,685	49,390
Prepaid tax		888	2,791
Pledged bank deposits		1,142,728	552,663
Bank balances and cash		2,038,297	2,293,386
		11,955,602		12,176,319

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued) At 30th June, 2019

		(Unaudited)		(Audited)
		30th June,	31st December,
		2019		2018
	Notes	HK$'000		HK$'000
Current Liabilities		1,842,979
Trade and other payables	(10)	1,859,071
Contract liabilities		1,585,491	1,991,420
Tax liabilities		1,432,116	1,431,416
Interest-bearing borrowings		1,637,847	1,328,035
Interest-free borrowings		1,139,000	950,768
		7,637,433		7,560,710
Net Current Assets		4,318,169	4,615,609
		32,096,156		31,454,047
Capital and Reserves
	3,788,814
Share capital			3,788,814
Reserves		20,411,034		20,094,264
Equity attributable to owners of the Company		24,199,848		23,883,078
Non-controlling interests		1,348,568		1,369,933
Total Equity		25,548,416		25,253,011
Non-current Liabilities
	3,724,505
Interest-bearing borrowings			3,402,238
Deferred rental income from a tenant		20,432		24,800
Rental deposits from tenants		23,331		22,145
Deferred tax liabilities		2,779,472		2,751,853
		6,547,740		6,201,036
		32,096,156		31,454,047

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