Xinchen China Power : Announcements and Notices - Announcement of Results for the Year Ended 31 December 2018

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XINCHEN CHINA POWER HOLDINGS LIMITED อોʕ਷ਗɢછٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1148)

ANNOUNCEMENT OF RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2018

The board of directors (the "Board") of Xinchen China Power Holdings Limited (the "Company") announces the audited consolidated financial results of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 31 December 2018 as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2018

2018	2017
NOTES	RMB'000	RMB'000
Revenue	3	3,050,522	2,956,662
Cost of sales	(2,716,248)	(2,616,472)
Gross profit	334,274	340,190
Other income	4	53,223	61,556
Impairment losses, net	(17,530)	(1,084)
Other gains and losses	5	(80,636)	20,524
Selling and distribution expenses	(46,969)	(44,570)
Administrative expenses	(139,093)	(138,937)
Finance costs	6	(73,972)	(68,033)
Other expenses	(18,247)	(15,773)
Share of result of a joint venture	(276)	(304)
Profit before tax	10,774	153,569
Income tax expense	7	(50)	(25,476)
Profit for the year	8	10,724	128,093

NOTES

2018 RMB'000

Other comprehensive income:

Item that may be reclassified subsequently to profit or loss:

Fair value gain on:

Receivables measured at fair value through other comprehensive incomeTotal comprehensive income for the year

Earnings per share - Basic (RMB)

10

362 11,086 0.008

2017 RMB'000

- 128,093

0.100

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2018

2018	2017
NOTES	RMB'000	RMB'000
NON-CURRENT ASSETS
Property, plant and equipment	2,581,151	2,451,686
Prepaid lease payments	130,408	133,858
Investment properties	-	211,508
Intangible assets	623,455	590,478
Interest in a joint venture	-	49,469
Deferred tax assets	19,198	12,497
Loan to a shareholder	13,097	27,396
3,367,309	3,476,892
CURRENT ASSETS
Inventories	839,508	608,111
Prepaid lease payments	3,378	3,353
Trade and other receivables	11	562,687	879,667
Receivables measured at fair value through
other comprehensive income ("FVTOCI")	217,396	-
Amounts due from related companies	12	1,285,192	1,464,286
Tax recoverable	31,479	-
Pledged/restricted bank deposits	595,782	282,867
Bank balances and cash	223,950	352,473
3,759,372	3,590,757
Assets classified as held for sale	49,193	-
3,808,565	3,590,757
CURRENT LIABILITIES
Trade and other payables	13	1,938,128	1,812,592
Amounts due to related companies	241,374	348,797
Financial liabilities at fair value through
profit or loss ("FVTPL")	5,616	15,270
Income tax payables	-	14,178
Borrowings due within one year	14	682,828	789,577
2,867,946	2,980,414

2018	2017
NOTES	RMB'000	RMB'000
NET CURRENT ASSETS	940,619	610,343
TOTAL ASSETS LESS CURRENT
LIABILITIES	4,307,928	4,087,235
NON-CURRENT LIABILITIES
Borrowings due after one year	14	1,267,808	1,029,866
Deferred income	54,417	64,966
1,322,225	1,094,832
NET ASSETS	2,985,703	2,992,403
CAPITAL AND RESERVES
Share capital	15	10,457	10,457
Reserves	2,975,246	2,981,946
TOTAL EQUITY	2,985,703	2,992,403

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

• 1. GENERAL

  The Company was incorporated as an exempted company with limited liability in the Cayman Islands under the Companies Law (2010 Revision) of the Cayman Islands on 10 March 2011. Brilliance China Automotive Holdings Limited ("Brilliance China", Brilliance China and its subsidiaries collectively referred to as "Brilliance China Group"), a company listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), and Sichuan Province Yibin Wuliangye Group Co., Ltd.*€̬ʇ޲֝Ⴗʞᔋ ૰ණྠϞࠢʮ̡("Wuliangye", Wuliangye and its subsidiaries collectively referred to as "Wuliangye Group"), a state owned enterprise registered in the People's Republic of China (the "PRC"), are able to exercise significant influence over the Company. In March 2013, the Company completed the listing of its shares on the Main Board of the Stock Exchange.

  The consolidated financial statements are presented in Renminbi ("RMB"), which is same as the functional currency of the Company and its subsidiaries.

• 2. APPLICATION OF NEW AND AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS ("HKFRSs")

  New, Amendments to HKFRSs and new interpretation that are mandatorily effective for the current year

  The Group has applied the following new, amendments to HKFRSs and new interpretation issued by the Hong Kong Institute of Certified Public Accountants for the first time in the current year:

  HKFRS 9	Financial Instruments
  HKFRS 15	Revenue from Contracts with Customers and the related
  Amendments
  Hong Kong (International Financial	Foreign Currency Transactions and Advance Consideration
  Reporting Interpretations Committee)
  -Interpretation 22
  Amendments to HKFRS 2	Classification and Measurement of Share-based Payment
  Transactions
  Amendments to HKFRS 4	Applying HKFRS 9 Financial Instruments with HKFRS 4
  Insurance Contracts
  Amendments to Hong Kong Accounting	As part of the Annual Improvements to HKFRSs
  Standard ("HKAS") 28	2014-2016 Cycle
  Amendments to HKAS 40	Transfers of Investment Property

  Except for the application of HKFRS 9 Financial Instruments and HKFRS 15 Revenue from Contracts with Customers, the application of the above new, amendments to HKFRSs and new interpretation in the current year has had no material impact on the Group's financial performance and position for the current and prior years and/or the disclosures set out in these consolidated financial statements. The impact of application of HKFRS 9 and HKFRS 15 is disclosed in the latest condensed consolidated financial statements.