Universal Technologies : NTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

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UNIVERSAL TECHNOLOGIES HOLDINGS LIMITED

環球實業科技控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1026) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017 HIGHLIGHTS

• Revenue for the six months ended 30 June 2017 amounted to approximately HK$111.72 million, which is classified under continuing operations (six months ended 30 June 2016: HK$233.65 million, of which HK$87.17 million was classified under discontinued operations and HK$146.48 million was classified as continuing operations.). Revenue from continuing operations for the six months ended 30 June 2017 of HK$111.72 million represented a decrease of HK$34.76 million or 24% as compared to the corresponding period last year. Decrease in revenue was mainly due to the completion of the construction of Taihe Water Plant Phase 2, resulting in decrease in construction service income under BOT water plant project.

• Net profit attributable to shareholders of the Company for the six months ended 30 June 2017 amounted to approximately HK$8.08 million (six months ended 30 June 2016: net loss attributable to shareholders of the Company of HK$22.41 million), representing an increase by HK$30.49 million or 136% as compared to the corresponding period last year. Turnaround from loss to profit for the period of the Group was mainly due to (i) the absence of net loss from International Payment Solutions Holdings Limited and its subsidiaries ("Payment Co Group") which was disposed in December 2016; and (ii) the currency exchange gain on Renminbi denominated assets of the Group arising from the revaluation of Renminbi.

• Basic and diluted earnings per share for the six months ended 30 June 2017 amounted to HK0.38 cent and HK0.38 cent respectively (six months ended 30 June 2016: basic and diluted loss per share of HK1.06 cents and HK1.06 cents respectively).

• The Board of Directors does not recommend the payment of an interim dividend for the six months ended 30 June 2017 (six months ended 30 June 2016: Nil).

INTERIM RESULTS

The Board of Directors (the "Board") of Universal Technologies Holdings Limited (the "Company") is pleased to announce the unaudited interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2017 together with comparative figures for the last corresponding period as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the six months ended 30 June 2017

Six months ended 30 June
2017	2016
Note	(Unaudited)	(Unaudited)
HK$'000	HK$'000
Continuing operations Revenue	4	111,718	146,479
Cost of sales/services rendered	(64,749)	(100,176)
Gross profit	46,969	46,303
Other revenue	4	4,467	4,547
Other income	10,157	12,361
General and administrative expenses	(22,654)	(32,243)
Profit from operations Impairment loss on debtors	13	38,939 (351)	30,968 -
Impairment loss on other receivables	14	-	(29)
Intangible assets written off	-	(1,402)
Finance costs	(8,118)	(9,832)
Profit before income tax	5	30,470	19,705
Income tax expense	7	(6,659)	(6,823)
Profit for the period from continuing operations	23,811	12,882
Discontinued operations

Loss for the period from discontinued operations 8 - (37,068)

Profit/(loss) for the period 23,811 (24,186)

Profit/(loss) attributable to:

Shareholders of the Company	8,077	(22,406)
Non-controlling interests	15,734	(1,780)
Profit/(loss) for the period	23,811	(24,186)
Earnings/(loss) per share (in cents)
From continuing and discontinued operations - Basic	9	0.38	(1.06)
- Diluted	9	0.38	(1.06)

From continuing operations

- Basic 9 0.38 0.15

- Diluted 9 0.38 0.15

From discontinued operations

- Basic 9 - (1.21)

- Diluted 9 - (1.21)

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2017

Six months ended 30 June 2017 2016

Note (Unaudited) (Unaudited)

HK$'000 HK$'000

Profit/(loss) for the period 23,811 (24,186)

Other comprehensive income/(loss):

Items that may be reclassified subsequently to profit or loss:

Exchange differences arising on translation of financial statements of subsidiaries established in the People's

Republic of China (the "PRC") 1,537 (5,198)

Exchange differences arising on translation of financial

statements of an associate established in the PRC - (640) Other comprehensive income/(loss) for the period, net of tax 1,537 (5,838)

Total comprehensive income/(loss) for the period 25,348 (30,024)

Total comprehensive income/(loss) attributable to:

Shareholders of the Company 7,041 (25,544)

Non-controlling interests 18,307 (4,480)

25,348 (30,024) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2017

At 30 June 2017

At 31 December

2016

Note (Unaudited) (Audited)

HK$'000 HK$'000

NON-CURRENT ASSETS

Property, plant and equipment 10 473,105 459,154

Prepaid land lease premium 11 24,098 22,216

Investment properties 12 43,881 44,820

Intangible assets 407,817 398,112

Goodwill 99,037 90,290

Deposit paid for acquisition of property, plant

and equipment	13,359	13,244
1,061,297	1,027,836
CURRENT ASSETS
Inventories	2,940	2,606
Debtors	13	20,296	23,154
Deposits, prepayments and other receivables	14	13,998	7,024
Prepaid land lease premium	11	101	97
Fixed deposits	85,547	34,643
Pledged time deposit	272,416	262,898
Cash and bank balances	246,098	402,992
641,396	733,414
DEDUCT:
CURRENT LIABILITIES
Bank and other borrowings	20	326,718	312,195
Trade payables	16	2,448	2,433
Payable to merchants	17	3,013	3,008
Deposits received, sundry creditors and accruals	18	154,511	193,646
Amounts due to related companies	19	50,957	76,499
Tax payable	16,819	16,690
554,466	604,471
NET CURRENT ASSETS	86,930	128,943