Nature Home : Announcement of Results for the Six Months Ended 30 June 2017

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Nature Home Holding Company Limited

大 自 然 家 居 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2083)

ANNOUNCEMENT OF RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

HIGHLIGHTS:

• Our revenue for the six months ended 30 June 2017 amounted to approximately RMB1,058,483,000, representing an increase of 23.2% from approximately RMB858,997,000 recorded in the corresponding period of 2016.

• Our gross profit for the six months ended 30 June 2017 amounted to approximately RMB310,265,000, representing an increase of 25.7% from approximately RMB246,898,000 recorded in the corresponding period of 2016.

• Our profit before taxation for the six months ended 30 June 2017 amounted to approximately RMB33,784,000, comparing to our loss before taxation of approximately RMB15,689,000 recorded in the corresponding period of 2016.

• Profit attributable to equity shareholders of the Company for the six months ended 30 June 2017 amounted to approximately RMB16,459,000, comparing to the loss of approximately RMB16,186,000 recorded in the corresponding period of 2016.

• Basic earnings per share of the Group for the six months ended 30 June 2017 was RMB0.011 (For the six months ended 30 June 2016: basic loss per share was RMB0.011).

The board of directors (the ''Board'') of Nature Home Holding Company Limited (the ''Company'') is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the ''Group'') for the six months ended 30 June 2017. The results have been reviewed by KPMG and the audit committee of the Company.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the six months ended 30 June 2017 (Expressed in Renminbi)

Six months ended 30 June

Note	2017 RMB'000	2016 RMB'000
Revenue	2	1,058,483	858,997
Cost of sales	(748,218)	(612,099)
Gross profit	310,265	246,898
Other income	3(a)	33,862	16,578
Distribution costs	(171,134)	(140,651)
Administrative expenses	(109,647)	(108,702)
Other operating expenses	3(b)	(18,903)	(18,422)
Profit/(loss) from operations	44,443	(4,299)
Finance income	5,196	3,554
Finance costs	(15,855)	(14,944)
Net finance costs	4(a)	(10,659)	(11,390)
Profit/(loss) before taxation	4	33,784	(15,689)
Income tax	5	(22,370)	(9,138)
Profit/(loss) for the period	11,414	(24,827)
Attributable to: Equity shareholders of the Company	16,459	(16,186)
Non-controlling interests	(5,045)	(8,641)
Profit/(loss) for the period	11,414	(24,827)
Earnings per share (RMB): Basic and diluted	6	0.011	(0.011)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2017 (Expressed in Renminbi)

Six months ended 30 June 2017 2016

Note RMB'000 RMB'000

Profit/(loss) for the period 11,414 (24,827)

Other comprehensive income for the

period (after tax effect) 7

Items that may be reclassified

subsequently to profit or loss:

Exchange differences on translation of the financial statements of entities not

using RMB as functional currency (4,340) 8,072 Exchange differences reclassified to

profit or loss upon disposal and

deconsolidation of subsidiaries	-	7,892
Available-for-sale securities: net
movement in fair value reserve	2,164	(13,518)

Total comprehensive income for the

period 9,238 (22,381)

Attributable to:

Equity shareholders of the Company	14,805	(12,048)
Non-controlling interests	(5,567)	(10,333)

Total comprehensive income for the

period 9,238 (22,381)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2017

(Expressed in Renminbi)

Note	At 30 June 2017 RMB'000	At 31 December 2016 RMB'000
Non-current assets
Investment properties	63,015	64,085
Other property, plant and equipment	774,866	780,725
Intangible assets	15,733	14,529
Lease prepayments	170,869	144,549
Interest in associates	20	19
Other financial assets	109,358	85,709
Deposits, prepayments and other
receivables	8,863	33,839
Deferred tax assets	27,563	24,505
1,170,287	1,147,960
Current assets
Inventories	8	464,302	404,077
Other financial assets	8,018	-
Trade and bills receivables	9	983,291	1,091,312
Deposits, prepayments and other
receivables	198,245	170,819
Restricted deposits	266,960	256,311
Cash and cash equivalents	688,892	618,703
2,609,708	2,541,222
Current liabilities
Trade and bills payables	10	601,088	585,152
Deposits received, accruals and other
payables	334,593	313,125
Bank loans	603,841	585,060
Current taxation	21,159	24,536
1,560,681	1,507,873
Net current assets	1,049,027	1,033,349
Total assets less current liabilities	2,219,314	2,181,309