Weiqiao Textile : INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 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.

魏橋紡織股份有限公司

Weiqiao Textile Company Limited*

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 2698)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2019

Revenue was approximately RMB7,784 million, representing a decrease of approximately 7.4% from the corresponding period of last year.

Net profit attributable to owners of the Company was approximately RMB206 million, representing a decrease of approximately 32.0% from the corresponding period of last year.

Earnings per share were approximately RMB0.17 (same period last year: approximately RMB0.25).

*  For identification purpose only

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2019

		For the six months ended
		30 June
	Notes	2019	2018
		RMB'000	RMB'000
		(Unaudited)	(Unaudited)
Revenue	4	7,783,952	8,410,118
Cost of sales		(7,175,797)	(7,532,126)
Gross profit		608,155		877,992
Other income	6	73,122		67,522
Selling and distribution expenses		(68,391)	(92,167)
Administrative expenses		(134,236)	(119,337)
Other expenses		(10,887)	(21,236)
Finance costs	7	(75,006)	(219,083)
Share of profit of an associate		656		489
Profit before taxation		393,413		494,180
Income tax expenses	8	(188,085)	(191,892)
Profit and total comprehensive income for the period	9	205,328		302,288
Attributable to:
Owners of the Company		206,330		302,524
Non-controlling interests		(1,002)	(236)
		205,328		302,288
Earnings per share attributable to the
Owners of the Company
Basic and diluted (RMB)	11	0.17		0.25

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2019

		As at	As at
		30 June	31 December
	Notes	2019		2018
		RMB'000	RMB'000
		(Unaudited)	(Audited)
Non-current assets
Property, plant and equipment	12	10,407,555		10,895,451
Right-of-use assets	13	417,284		-
Investment properties		21,153		21,522
Prepaid lease payments		-	330,652
Other intangible assets		83		91
Investment in an associate		75,387		74,731
Deposits paid for purchase property,
plant and equipment		7,658	5,457
Prepayments		-	1,892
Deferred tax assets		79,925	85,711
Total non-current assets		11,009,045		11,415,507
Current assets
Inventories	14	3,098,756		3,161,164
Trade receivables	15	434,739		431,654
Deposits, prepayments and other receivables	16	206,769		202,415
Pledged deposits		403,715		140,388
Cash and cash equivalents		9,954,527		9,596,558
		14,098,506		13,532,179
Non-current assets classified as held for sale	12	5,858		5,084
Total current assets		14,104,364		13,537,263
Current liabilities
Trade payables	17	1,250,341		1,228,881
Other payables and accruals	18	1,099,777		1,118,338
Contract liabilities		119,548		132,216
Lease liabilities	13	13,190		-
Income tax payable		994,541		993,071
Bank and other borrowings	19	2,978,105		2,888,105
Deferred income		17,986		17,961
Total current liabilities		6,473,488		6,378,572
Net current assets		7,630,876		7,158,691
Total assets less current liabilities		18,639,921		18,574,198

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		As at		As at
		30 June		31 December
	Notes	2019	2018
		RMB'000		RMB'000
		(Unaudited)		(Audited)
Equity
Issued capital	20	1,194,389	1,194,389
Reserves		17,208,549		17,200,010
		18,402,938	18,394,399
Non-controlling interests		13,449		14,451
Total equity		18,416,387	18,408,850
Non-current liabilities
Lease liabilities	13	67,915		-
Deferred income		150,078	159,495
Deferred tax liabilities		5,541		5,853
Total non-current liabilities		223,534		165,348
		18,639,921	18,574,198

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2019

			Attributable to owners of the Company
						Statutory								Non-
	Issued		Capital	surplus		Retained				controlling		Total
	capital		reserve	reserve		profits		Total		interests		equity
	RMB'000		RMB'000	RMB'000		RMB'000		RMB'000		RMB'000		RMB'000
						(Note)
At 31 December 2018 (Audited)	1,194,389		6,692,394		1,845,222	8,662,394		18,394,399		14,451		18,408,850
Profit and total comprehensive
income for the period	-		-	-	206,330		206,330		(1,002)	205,328
Final 2018 dividend declared
and paid	-			-		-		(197,791)	(197,791)		-	(197,791)
At 30 June 2019 (Unaudited)	1,194,389			6,692,394		1,845,222		8,670,933		18,402,938		13,449		18,416,387
At 31 December 2017 (Audited)	1,194,389		6,692,079		1,766,140	8,277,641		17,930,249		28,862		17,959,111
Effect of changes in accounting
policies	-			-		-		(913)	(913)		-	(913)
At 1 January 2018 (As restated)	1,194,389			6,692,079		1,766,140		8,276,728		17,929,336		28,862		17,958,198
Profit and total comprehensive
income for the period	-		-	-	302,524		302,524		(236)	302,288
Final 2017 dividend declared
and paid	-			-		-		(179,158)	(179,158)		-	(179,158)
At 30 June 2018 (Unaudited)	1,194,389			6,692,079		1,766,140		8,400,094		18,052,702		28,626		18,081,328

Note: As required by applicable law and regulations, entities established and operated in the People's Republic of China (the "PRC") shall set aside/appropriate a portion of its after tax profits of each year to fund statutory surplus reserve. The statutory surplus reserve can be utilised to offset prior years' losses or to increase capital. However, the balance of the statutory surplus reserve must be maintained at a minimum of 25% of the registered capital after such usage.

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