Ngai Shun : Announcement of Annual Results for the Year Ended 31 March 2017

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Ngai Shun Holdings Limited

毅信控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 01246) ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 MARCH 2017

The board (the "Board") of directors (the "Director(s)") of Ngai Shun Holdings Limited (the "Company") announces the consolidated results of the Company and its subsidiaries (collectively, the "Group") for the year ended 31 March 2017, together with the comparative figures for the previous year. The annual results have been reviewed by the audit committee of the Company (the "Audit Committee").

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

Year ended 31 March 2017

2017	2016
Notes	HK$'000	HK$'000
REVENUE	7	511,146	532,194
Cost of sales	(686,886	(480,404
Gross (loss)/profit	(175,740	51,790
Other income and gains, net	7	7,948	13,148
Selling and distribution expenses	(7,141	(2,251
Administrative expenses	(93,299	(88,508
Other expenses	(194,172	(103,184
Finance costs	8	(127,891	(71,176
LOSS BEFORE TAX	9	(590,295	(200,181
Income tax credit	10	18,051	6,788
LOSS FOR THE YEAR	(572,244	(193,393
Attributable to:
Owners of the parent	(569,421	(193,393
Non-controlling interests	(2,823	-
(572,244	(193,393
(Restated)
LOSS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT
Basic and diluted	12	HK$(0.12	HK$(0.19

) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Year ended 31 March 2017

2017	2016
HK$'000	HK$'000
LOSS FOR THE YEAR	(572,244	(193,393
OTHER COMPREHENSIVE (LOSS)/INCOME
Other comprehensive (loss)/income to be reclassified to profit or loss in subsequent periods:
Available-for-sale investments:
Changes in fair value	(2,290	3,450
Reclassification adjustment to consolidated statement of profit or loss upon disposal	(555	-
(2,845	3,450
Exchange differences on translation of foreign operations	(19,635	(1,437
NET OTHER COMPREHENSIVE (LOSS)/INCOME TO BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS AND OTHER COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR, NET OF TAX	(22,480	2,013
TOTAL COMPREHENSIVE LOSS FOR THE YEAR	(594,724	(191,380
Attributable to:
Owners of the parent	(591,901	(191,380
Non-controlling interests	(2,823	-
(594,724	(191,380

) ) ) ) ) ) ) ) ) ) ) ) ) ) ) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31 March 2017

2017	2016
Notes	HK$'000	HK$'000
NON-CURRENT ASSETS
Property, plant and equipment	13	57,742	77,971
Investment properties	-	-
Goodwill	17,336	17,336
Available-for-sale investments	875	7,800
Total non-current assets	75,953	103,107
CURRENT ASSETS
Inventories	370	469
Completed properties held for sale	72,781	406,444
Properties under development	917,927	811,421
Trade and retention receivables	14	68,316	73,760
Prepayment, deposits and other receivables	45,908	135,338
Equity investments at fair value through profit or loss	121,916	237,164
Tax recoverable	16,568	21,626
Restricted cash	64,969	18,541
Cash and cash equivalents	410,740	108,901
Total current assets	1,719,495	1,813,664
CURRENT LIABILITIES
Trade payables	15	35,137	43,824
Other payables and accruals	254,537	321,675
Due to a related company	49,456	120,000
Promissory notes	16	-	241,485
Interest-bearing bank and other borrowings	802,310	359,169
Tax payable	770	353
Total current liabilities	1,142,210	1,086,506
NET CURRENT ASSETS	577,285	727,158
TOTAL ASSETS LESS CURRENT LIABILITIES	653,238	830,265
NON-CURRENT LIABILITIES
Interest-bearing other borrowings	-	514,214
Provision for long service payments	3,262	4,848
Deferred tax liabilities	96,680	122,164
Total non-current liabilities	99,942	641,226
Net assets	553,296	189,039
EQUITY
Equity attributable to owners of the parent
Share capital	161,850	24,900
Reserves	340,786	164,139
502,636	189,039
Non-controlling interests	50,660	-
Total equity	553,296	189,039

NOTES:

1. GENERAL INFORMATION

   Ngai Shun Holdings Limited is a limited liability company incorporated in the Cayman Islands and its shares are listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The registered address of the Company is located at PO Box 1350, Clifton House, 75 Fort Street, Grand Cayman KY1-1108, Cayman Islands. The principal place of business of the Company is located at Unit 2102, 21/F, West Tower Shun Tak Centre, 168-200 Connaught Road Central, Sheung Wan, Hong Kong.

   The principal activity of the Company is investment holding. During the year, the principal activities of its subsidiaries were involved in the following:

   • Foundation piling business

   • Property development business

   • Investment securities

   • Provision of catering services

2. BASIS OF PRESENTATION

Notwithstanding that (i) the Group incurred a loss attributable to owners of the parent of HK$569,421,000 for the year ended 31 March 2017; and (ii) the Group has capital commitments of HK$85,396,000, loan from a related company of HK$49,456,000, interest-bearing bank and other borrowings of HK$802,310,000 as at 31 March 2017, in the opinion of the directors, the Group will have sufficient working capital to finance its operations and to meet its financial obligations as and when they fall due in the foreseeable future, based on the cash flow projections of the Group and after taking into the following consideration:

1. subsequent to the reporting period, the Company has obtained a loan credit facility from an independent third party, to finance the Group's working capital; and

2. pre-sales proceeds received from the Group's property development segment.

Accordingly, the consolidated financial statements have been prepared on the going concern basis.

3 BASIS OF PREPARATION

These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention, except for investment properties and certain of equity investments which have been measured at fair value. These financial statements are presented in Hong Kong dollars ("HK$") and all values are rounded to the nearest thousand except when otherwise indicated.

Basis of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiaries (collectively, the "Group") for the year ended 31 March 2017. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Group the current ability to direct the relevant activities of the investee).