China Lesso : INTERIM RESULTS ANNOUNCEMENT(FOR THE SIX MONTHS ENDED 30 JUNE 2017)

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CHINA LESSO GROUP HOLDINGS LIMITED

中國聯塑集團控股有限公司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2128) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

The Board is pleased to announce the unaudited consolidated financial results of the Group for the six months ended 30 June 2017.

HIGHLIGHTS

Compared to the financial results for the six months ended 30 June 2016:

•

Revenue increased by 22.6% to RMB8,977 million

•

Gross profit increased by 12.7% to RMB2,461 million

•

Profit for the period increased by 4.6% to RMB951 million

•

Basic earnings per share was RMB0.31, increased by 6.9%

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Six months ended 30 June 2017

Six months ended 30 June

Note	2017 RMB'000 (Unaudited)	2016 RMB'000 (Unaudited)
REVENUE	3	8,977,047	7,325,116
Cost of sales	(6,515,743)	(5,141,630)
Gross profit	2,461,304	2,183,486
Other revenue, income and gains	3	82,504	42,838
Selling and distribution expenses	(459,483)	(376,971)
Administrative expenses	(442,264)	(355,760)
Other expenses	(318,683)	(268,847)
Finance costs	4	(98,957)	(41,511)
Share of profit of a joint venture	253	385
PROFIT BEFORE TAX	5	1,224,674	1,183,620
Income tax expense	6	(274,001)	(275,185)
PROFIT FOR THE PERIOD	950,673	908,435
OTHER COMPREHENSIVE INCOME/

(EXPENSE)

Items that may be reclassified subsequently to profit or loss:

Available-for-sale investments:

Changes in fair value	(158,107)	442
Reclassification adjustment for gains on disposal	(1,143)	-
Exchange differences on translation of foreign	(159,250)	442
operations	141,335	(6,956)

OTHER COMPREHENSIVE EXPENSE FOR THE PERIOD (17,915) (6,514) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 932,758 901,921 Six months ended 30 June

Note	2017 RMB'000 (Unaudited)	2016 RMB'000 (Unaudited)
Profit for the period attributable to: Owners of the Company	971,042	912,380
Non-controlling interests	(20,369)	(3,945)
950,673	908,435
Total comprehensive income for the period attributable to: Owners of the Company	950,248	903,313
Non-controlling interests	(17,490)	(1,392)
932,758	901,921
EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY Basic and diluted	8	RMB0.31	RMB0.29

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2017

Note	30 June 2017 RMB'000 (Unaudited)	31 December 2016 RMB'000 (Audited)
NON-CURRENT ASSETS Property, plant and equipment	6,724,500	6,621,953
Prepaid land lease payments	1,270,923	1,249,367
Investment properties Deposits paid for the purchase of land, property, plant and equipment	3,517,351 805,858	2,469,488 549,919
Goodwill	76,554	76,554
Other intangible assets	176,496	183,615
Interest in a joint venture	8,241	7,988
Available-for-sale investments	9	1,430,693	730,814
Held-to-maturity investments	10	-	59,655
Loan receivables	11	57,799	63,191
Other long-term receivables	55,327	37,623
Derivative financial instruments	26,699	32,566
Deferred tax assets	54,771	53,869
Total non-current assets	14,205,212	12,136,602
CURRENT ASSETS Inventories	12	3,058,456	2,747,065
Amounts due from customers for contract work	325,102	163,279
Loan receivables	11	366,329	325,764
Trade and bills receivables	13	1,468,636	1,517,248
Prepayments, deposits and other receivables	1,408,252	1,419,645
Cash and bank deposits	4,357,440	3,885,683
Total current assets	10,984,215	10,058,684