Century International : Announcement of Annual Results for the Year Ended 31 March 2021

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Century Group International Holdings Limited

世 紀 集 團 國 際 控 股 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 2113)

ANNOUNCEMENT OF ANNUAL RESULTS

FOR THE YEAR ENDED 31 MARCH 2021

The board (the "Board") of directors (the "Directors") of Century Group International Holdings Limited (the "Company") hereby announces the audited consolidated financial results of the Company and its subsidiaries (collectively, the "Group") for the year ended 31 March 2021 (the "Reporting Period") together with the comparative figures for the year ended 31 March 2020.

FINANCIAL HIGHLIGHTS

• Revenue of the Group for the year ended 31 March 2021 amounted to approximately HK$247.5 million (for the year ended 31 March 2020: approximately HK$251.8 million).
• Gross loss for the year ended 31 March 2021 amounted to approximately HK$28.5 million (for the year ended 31 March 2020: gross profit of approximately HK$7.9 million).
• Loss attributable to owners of the Company for the year ended 31 March 2021 amounted to approximately HK$31.9 million (for the year ended 31 March 2020: approximately HK$8.1 million).
• Basic and diluted loss per share for the year ended 31 March 2021 amounted to approximately HK4 cents (for the year ended 31 March 2020: approximately HK1 cents).
• The Board does not recommend the declaration of a dividend for the year ended 31 March 2021.

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME

For the year ended 31 March 2021

	Notes	2021			2020
		HK$'000	HK$'000
Revenue	4	247,530			251,760
Cost of sales and services		(275,984)	(243,868)
Gross (loss) profit		(28,454)	7,892
Impairment losses under expected credit loss		267
model, net of reversal	10, 11			(754)
Other income, other gains and losses	5	8,833			1,421
Administrative expenses		(13,926)	(17,485)
Finance costs	6	(46)	(1,042)
Loss before taxation		(33,326)	(9,968)
Income tax credit	7	1,464			1,823
Loss for the year		(31,862)	(8,145)
Other comprehensive income (expense)
Item that may be reclassified subsequently to
profit or loss:
Exchange differences arising on translation of		30			-*
foreign operations
Reclassification of cumulative translation reserve		(1)	-
upon disposal of foreign operations
		29			-*
Total comprehensive expense for the year		(31,833)	(8,145)
Loss for the year attributable to:
	(31,886)
Owners of the Company		(8,145)
Non-controlling interests		24			-*
		(31,862)	(8,145)
Total comprehensive expense for the year
attributable to:		(31,857)
Owners of the Company		(8,145)
Non-controlling interests		24			-*
		(31,833)	(8,145)
Loss per share (HK cents)
- Basic and diluted	9	(4)	(1)

• Less than HK$1,000

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 March 2021

	Notes	2021	2020
		HK$'000		HK$'000
Non-current assets
Plant and equipment		2,516	12,820
Right-of-use assets		1,086	471
Goodwill		-	2
		3,602	13,293
Current assets
Inventories		-	28
Trade and other receivables, deposits and
prepayments	10	21,828	7,450
Contract assets	11	61,927	56,475
Restricted bank balances		15,618	15,455
Bank balances and cash		7,818	27,579
		107,191	106,987
Assets classified as held for sale		478		-
		107,669	106,987
Current liabilities
Trade and other payables	12	42,078	40,517
Amount due to a director of a subsidiary	13	17,000		-
Amount due to a shareholder	13	1,500		-
Provisions	14	2,572		-
Contract liabilities		1,115		-
Lease liabilities		654	442
		64,919	40,959
Net current assets		42,750	66,028
Total assets less current liabilities		46,352	79,321

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Notes	2021	2020
	HK$'000		HK$'000
Non-current liabilities
Lease liabilities	405	38
Deferred tax liability	180	1,659
	585	1,697
Net assets	45,767	77,624
Capital and reserves
Share capital	8,048	8,048
Reserves	37,719	69,576
Equity attributable to owners of the Company	45,767	77,624
Non-controlling interests	-		-*
Total equity	45,767	77,624

• Less than HK$1,000

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL INFORMATION
   The Company is an exempted company with limited liability incorporated in the Cayman Islands and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). On 16 December 2019, the Company's former immediate holding company, China Century Holdings Limited ("China Century"), a company incorporated in the British Virgin Islands, has disposed of 225,330,000 shares of the Company, representing 28% of the total issued share capital of the Company to D' Legem Group Limited ("D' Legem"), a company with limited liability incorporated in Hong Kong. On 20 December 2019 and 24 December 2019, China Century further disposed of on the Stock Exchange 201,185,000 and 134,020,000 shares of the Company, respectively. Immediately after these transactions, D' Legem becomes the immediate and ultimate shareholder of the Company. Its ultimate controlling party is Mr. Chow Hon.
   The address of the registered office of the Company is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands, and the address of the principal place of business of the Company is Office D, 16/F., Kings Wing Plaza 1, No. 3 On Kwan Street, Shek Mun, N.T., Hong Kong.
   The Company is an investment holding company and its subsidiaries are principally engaged in provision of construction and site formation services and trading of liquefied natural gas.
   The consolidated financial statements are presented in Hong Kong dollars ("HK$"), which is also the functional currency of the Company.
2. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
   The consolidated financial statements have been prepared in accordance with HKFRSs issued by the HKICPA. For the purpose of preparation of the consolidated financial statements, information is considered material if such information is reasonably expected to influence decisions made by primary users. In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and by the Hong Kong Companies Ordinance.
   In preparing the consolidated financial statements, the directors of the Company have given careful consideration to the future liquidity of the Group in light of the fact that the Group had bank balances and cash of approximately HK$7.8 million, while its trade and other payables and amount due to a director of a subsidiary and a shareholder of approximately HK$42.1 million,HK$17 million and HK$1.5 million, respectively as at 31 March 2021, and the Group incurred a net loss of approximately HK$31.9 million and net operating cash outflow of approximately HK$39.5 million for the year ended 31 March 2021. A significant portion of the net loss for the year ended 31 March, 2021 is caused by the suspension of a project due to the adverse effect of Coronavirus 2019 pandemic (the "Pandemic") resulting a loss of approximately HK$16.3 million incurred in that project for the year to the Group. The Pandemic continues to negatively affect the markets in which the Group operates and consequently the Group's ability to continue as a going concern is dependent on the Group's adjustment of its strategies to mitigate the possible further impact of the Pandemic on the Group's financial results and cashflows, and the successful implementation of the Group's cost optimization and reduction measures so as to improve working capital and cashflow position as well as successful obtaining additional new sources of financing extended by legitimate financial institutions to the Group. In the opinion of the directors of the Company, the Group has a number of sources of finance available to fund its operations including

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