Sinostar PEC : Third Quarter Results

SINOSTAR PEC HOLDINGS LIMITED (Company Registration No.: 200609833N)

UNAUDITED FINANCIAL STATEMENT FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2018

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF YEAR AND FULL YEAR RESULTS

1(a)An income statement and statement of comprehensive income or a statement of comprehensive income for the group together with a comparative statement for the corresponding period of the immediately preceding year.

Consolidated statements of comprehensive income

for the 3rd quarter for the period ended 30 September 2018

RMB'000

3rd Qtr 2017	+/(-)	9 months 2018	9 months 2017	+/(-)
RMB'000	%	RMB'000	RMB'000	%
Revenue	570,161	395,606	44.1	1,616,690	1,227,903	31.7
Cost of sales	(540,762)	(375,121)	44.2	(1,523,164)	(1,158,030)	31.5
Gross profit	29,399	20,485	43.5	93,526	69,873	33.8
Other income	1,970	3,592	(45.1)	4,658	10,922	(57.4)
Distribution costs	(204)	(244)	(16.5)	(430)	(645)	(33.3)
Administrative costs	(2,362)	(2,745)	(14.0)	(7,786)	(8,520)	(8.6)
Other operating expenses	(831)	(7)	NM	(1,023)	(32)	NM
Profit before taxation	27,972	21,081	32.7	88,945	71,598	24.2
Taxation	(8,095)	(6,396)	26.6	(23,100)	(18,721)	23.4
Total comprehensive income for the financial period	19,877	14,685	35.4	65,845	52,877	24.5
NM - Not meaningful
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3rd Qtr 2018

Notes to the Consolidated statement of comprehensive income

3rd Quarter Ended

30/09/2018	30/09/2017	Change (+/-)
RMB'000	RMB'000	%
Profit before tax is arrived at after
charging/(crediting):
Interest income	(1,970)	(3,592)	(45.2)
Disposal of property, plant and equipment	247	68	100.0
Depreciation of property, plant and equipment	3,818	5,848	(34.7)
NM - Not meaningful

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1(b)(i)

ASSETS NON-CURRENT ASSETS

A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.

GROUP	COMPANY
30/09/2018 31/12/2017	30/09/2018 31/12/2017
RMB'000 RMB'000	RMB'000 RMB'000

Property, plant and equipment	110,529	85,312	-	-
Goodwill	2,501	2,501	-	-
Subsidiary	-	-	250,041	250,041
113,030	87,813	250,041	250,041
CURRENT ASSETS
Inventories	24,957	25,443	-	-
Trade and other receivables	14,299	17,380	-	-
Amount owing by subsidiary	-	-	13,290	37,977
Amounts owing by affiliated companies	235,768	166,268	-	-
Cash and cash equivalents	382,278	438,349	3,986	111
657,303	647,440	17,276	38,088
TOTAL ASSETS	770,332	735,253	267,317	288,129
EQUITY
Share capital	316,125	316,125	316,125	316,125
Retained profits/(accumulated losses)	351,061	300,571	(48,822)	(29,647)
Reserves	51,985	51,985	-	-
TOTAL EQUITY	719,171	668,681	267,303	286,478
LIABILITIES
CURRENT LIABILITIES
Trade and other payables	48,649	52,719	14	1,651
Amounts owing to affiliated companies	-	10,113	-	-
Current tax payable	2,512	3,740	-	-
51,161	66,572	14	1,651
TOTAL EQUITY AND LIABILITIES	770,332	735,253	267,317	288,129
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1(b)(ii)Aggregate amount of group's borrowings and debt securities.

Amount repayable in one year or less, or on demandAs at 30/09/2018

As at 31/12/2017

Secured	Unsecured
RMB'000	RMB'000	RMB'000
-	-

Secured RMB'000

-

Amount repayable after one yearAs at 30/09/2018

Secured RMB'000 -Unsecured RMB'000 -Details of any collateralUnsecured

-

As at 31/12/2017

Secured RMB'000

NIL

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Unsecured RMB'000

-

-

1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.

Consolidated statement of cash flows for the period

ended 30 September 2018

3rd quarter ended

30/09/2018	30/09/2017
RMB'000	RMB'000
Cash flows from operating activities
Profit before taxation	27,972	21,081
Adjustments for:-
Depreciation of property, plant and equipment	3,818	5,848
Loss on disposal of property, plant and equipment	247	68
Interest income	(1,970)	(3,592)
Operating profit before working capital changes	30,067	23,405
Decrease in inventories	3,216	15,221
Increase in operating receivables	(35,372)	(7,598)
Increase/(decrease) in operating payables	7,029	(19,436)
Cash generated from operations	4,940	11,592
Income tax paid	(8,754)	(3,674)
Net cash (used in)/generated from operating activities	(3,814)	7,918
Cash flows from investing activities
Acquisition of property, plant and equipment	(27,969)	(988)
Interest received	1,970	3,592
Net cash (used in)/generated from investing activities	(25,999)	2,604
Net (decrease)/increase in cash and bank balances	(29,813)	10,522
Cash and bank balances at beginning of period	412,091	520,928
Cash and bank balances at end of period	382,278	531,450

For the purpose of the consolidated statement of cash flows, the cash and cash equivalents comprise the following:

Cash-in-hand	133	225
Bank balances	275,145	331,225
Cash funds placed with financial institutions	107,000	200,000
382,278	531,450

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