Zuoli Kechuang Micro finance : Announcement of Interim Results for the Six Months Ended 30 June 2017

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佐 力 科 創 小 額 貸 款 股 份 有 限 公 司

Zuoli Kechuang Micro-finance Company Limited*

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

(Stock Code: 6866)

ANNOUNCEMENT OF INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

The board (the ''Board'') of directors (the ''Directors'') of 佐力科創小額貸款股份有限公司 (Zuoli Kechuang Micro-finance Company Limited*) (the ''Company'') is pleased to announce the unaudited results of the Company and its subsidiaries (the ''Group'') for the six months ended 30 June 2017 (the ''Interim Results''), together with comparative figures for the corresponding period, prepared in accordance with the Hong Kong Financial Reporting Standards promulgated by the Hong Kong Institute of Certified Public Accountants. The Board and the audit committee of the Company (the ''Audit Committee'') have reviewed and confirmed the Interim Results.

INTERIM RESULTS

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2017 - unaudited

(Expressed in Renminbi (''RMB'') '000, unless otherwise stated)

Six months ended 30 June

Note	2017 RMB'000	2016 RMB'000
Interest income	144,684	118,268
Interest and commission expenses	(22,160)	(4,948)
Net interest income	3	122,524	113,320
Other net income	4	3,689	19
(Charge)/reversal of impairment losses	(1,294)	596
Administrative expenses	(23,517)	(18,793)
Profit before taxation	5	101,402	95,142
Income tax	6	(26,570)	(23,826)
Profit and total comprehensive income for the period	74,832	71,316
Attributable to: Equity shareholders of the Company	71,241	70,895
Non-controlling interests	3,591	421
Profit for the period	74,832	71,316
Earnings per share
Basic and diluted (RMB)	7	0. 06	0.06

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2017 - unaudited

(Expressed in RMB'000, unless otherwise stated)

Note	At 30 June 2017 RMB'000	At 31 December 2016 RMB'000
Assets Cash and cash equivalents	8	128,027	29,208
Restricted deposits	15,000	15,000
Interest receivables	15,219	19,033
Loans and advances to customers	9	1,983,906	1,807,164
Fixed assets	10	20,022	18,983
Intangible assets	1,861	36
Goodwill	22,502	22,502
Deferred tax assets	11	20,771	16,981
Available-for-sale financial assets	12	30,220	72,700
Other assets	13	28,988	31,659
Total assets	2,266,516	2,033,266
Liabilities Interest-bearing borrowings	14	487,508	250,000
Accruals and other payables	15	28,188	28,833
Current taxation	32,507	11,575
Debt securities issued	16	179,464	278,283
Total liabilities	727,667	568,691
NET ASSETS	1,538,849	1,464,575
CAPITAL AND RESERVES Share capital	17	1,180,000	1,180,000
Reserves	260,365	189,124
Total equity attributable to equity shareholders of the Company	1,440,365	1,369,124
Non-controlling interests	98,484	95,451
TOTAL EQUITY	1 ,538,849	1,464,575

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2017 - unaudited (Expressed in RMB'000, unless otherwise stated)

Att r ib ut ab le to eq ui ty sha r e h o l de rs of th e C om pan y

Non-

Share capital

Surplus reserve

General reserve

Retained

profits Total

controlling interests

Total equity

RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000

Note 17(b)

Note 17(c)(i)

Note 17(c)(ii)

Balance at 1 January 2016 1,18 0,000 1 3 ,508 10 ,984 183 , 685 1,388 ,177 7 , 4 1 6 1 ,3 95,5 9 3

Changes in equity for the

six months ended 30 June 2016:

Profit and total comprehensive income

for the period - - - 70,895 70,895 421 71,316 Dividends approved in respect of

the previous years

(Note 17(a)) - - - ( 165 ,200) ( 165 ,200) - (1 65,2 0 0)

Balance at 30 June 2016 1,18 0,000 1 3 ,508 10 ,984 89 , 380 1,293 ,872 7 , 8 3 7 1 ,3 01,7 0 9

Balance at 30 June 2016 and

1 July 2016 1,18 0,000 1 3 ,508 10 ,984 89 , 380 1,293 ,872 7 , 8 3 7 1 ,3 01,7 0 9

Changes in equity for the

six months ended 31 December 2016:

Acquisition of subsidiary - - - - - 83,646 83,646 Profit and total comprehensive income

for the period - - - 75,252 75,252 3,968 79,220 Appropriation to surplus reserve - 11,614 - (11,614) - - - Appropriation to general reserve - - 24 ,797 (24 , 797) - - -

Balance at 31 December 2016 1,18 0,000 2 5 ,122 35 ,781 128 ,221 1,369 ,124 95 ,4 51 1 , 4 64,5 7 5