Shougang Fushan Resources : Announcements and Notices - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2019

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首鋼福山資源集團有限公司

SHOUGANG FUSHAN RESOURCES GROUP LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 639)

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2019

FINANCIAL HIGHLIGHTS
	For the six months ended
	30 June	Percentage
(HK$'million)	2019	2018	change
Revenue	1,960	1,978	-1%
Gross profit	1,065	1,054	+1%
Gross profit margin	54%	53%
Profit for the period	660	672	-2%
Profit attributable to owners of the Company
("Owners")	640	638	+0.3%
EBITDA1	1,185	1,158	+2%
Basic earnings per share (HK cents)	12.08	12.03	+0.4%
	As at	As at
	30 June 31 December	Percentage
(HK$'million)	2019	2018	change
Net assets	17,379	16,776	+4%
Equity per share attributable to Owners (HK$)	3.01	2.90	+4%
Current ratio2	2.45 times	2.58 times	-5%

To reward our shareholders, the board of directors has declared an interim dividend of HK8.5 cents per ordinary share for the six months ended 30 June 2019 (For the six months ended 30 June 2018: HK8.3 cents per ordinary share).

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Notes:

1. EBITDA is defined as profit before income tax plus finance costs, share of loss of an associate, depreciation, amortisation and written off of property, plant and equipment.
2. Current ratio is computed from total current assets divided by total current liabilities.

INTERIM RESULTS

The board of directors (the "Board") of Shougang Fushan Resources Group Limited (the "Company") is pleased to announce the unaudited consolidated interim results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2019. These interim results have been reviewed by the Company's Audit Committee and its auditor.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2019

		Six months ended 30 June
		2019		2018
	Notes	HK$'000	HK$'000
		(Unaudited)	(Unaudited)
Revenue from contracts with customers	4	1,959,940		1,978,168
Cost of sales		(895,424)	(924,400)
Gross profit		1,064,516		1,053,768
Interest income		70,522		59,264
Other income and gains, net	5	50,284		21,554
Selling and distribution expenses		(123,979)	(106,385)
General and administrative expenses		(80,418)	(80,113)
Other operating expenses	6	(109,961)	(4,415)
Finance costs	7	(4,606)	-
Share of loss of an associate		(175)	(296)
Profit before income tax	8	866,183		943,377
Income tax expense	9	(206,156)	(271,867)
Profit for the period		660,027		671,510

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Six months ended 30 June

2019 2018

Note HK$'000 HK$'000

(Unaudited) (Unaudited)

Other comprehensive income for the period

Item that may be reclassified subsequently to

• profit or loss:
• Exchange differences on translation of financial

statements of foreign operations	(13,686)	(41,810)
Item that will not be reclassified to profit or loss:

• Fair value gain/(loss) on financial assets measured
• at fair value through other comprehensive

income		407,307		(41,991)
Total comprehensive income for the period		1,053,648		587,709
Profit for the period attributable to:
Owners of the Company		640,388	638,045
Non-controlling interests		19,639		33,465
Profit for the period		660,027	671,510
Total comprehensive income for the period
attributable to:
Owners of the Company		1,034,467	555,443
Non-controlling interests		19,181		32,266
Total comprehensive income for the period		1,053,648	587,709
Earnings per share
- Basic and diluted (HK cents)	11	12.08	12.03

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2019

			30 June		31 December
			2019	2018
		Notes	HK$'000		HK$'000
			(Unaudited)		(Audited)
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment		3,696,173	3,609,544
Prepaid lease payments		-	60,062
Land use rights		63,320		-
Right-of-use assets		29,267		-
Mining rights		7,669,477	7,751,953
Goodwill		1,255,559	1,255,559
Interest in an associate		11,709	11,880
Financial assets measured at fair value through
	other comprehensive income	12	1,140,232	654,053
Deposits, prepayments and other receivables		515,027	489,947
Deferred tax assets		56,701		22,752
Total non-current assets		14,437,465	13,855,750
Current assets
Inventories		138,649	130,069
Trade receivables	13	678,183	669,837
Bills receivables	13	1,458,519	1,578,345
Deposits, prepayments and other receivables		324,829	319,677
Other financial asset		234,000	200,000
Pledged bank deposits		226,957	190,029
Time deposits with original maturity
	over three months		1,150,228	854,010
Cash and cash equivalents		3,499,685		3,453,325
Total current assets		7,711,050		7,395,292
Total assets		22,148,515	21,251,042

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			30 June		31 December
			2019	2018
		Notes	HK$'000		HK$'000
			(Unaudited)		(Audited)
Current liabilities
Trade and bills payables	14	737,972	834,903
Lease liabilities		5,900		-
Other financial liability		178,358	178,358
Other payables and accruals		1,310,352	1,426,081
Borrowings	15	121,927		-
Dividend payable		450,656		-
Amounts due to non-controlling interests of
	subsidiaries		73,697	72,228
Tax payables		265,367		357,130
Total current liabilities		3,144,229		2,868,700
Net current assets		4,566,821		4,526,592
Total assets less current liabilities		19,004,286	18,382,342
Non-current liabilities
Deferred tax liabilities		1,600,719	1,606,536
Lease liabilities		24,769		-
Total non-current liabilities		1,625,488		1,606,536
Net assets		17,378,798	16,775,806
EQUITY
Equity attributable to owners of the Company
Share capital		15,156,959	15,156,959
Reserves		810,968	227,157
Total equity attributable to owners of
	the Company		15,967,927	15,384,116
Non-controlling interests		1,410,871		1,391,690
Total equity		17,378,798	16,775,806

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