Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
CHINA SHENGMU ORGANIC MILK LIMITED
中 國 聖 牧 有 機 奶 業 有 限 公 司
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 1432)
FINAL RESULTS ANNOUNCEMENT
FOR THE YEAR ENDED DECEMBER 31, 2018
HIGHLIGHTS
‧The Group entered into an agreement with Mengniu Group to dispose 51% of its equity interests in the down-stream liquid milk business. The Company has been able to obtain harmonious development in its dairy business, while supplementing its demand for working capital efficiently.
‧The Group entered into an acquisition agreement with 12 individual shareholders to acquire minority interests in the joint ventured farms located at the core area of the organic industry system. In the coming future, the Group will devote further efforts to dairy farming business and raw milk business.
‧In the BIOFACH CHINA Organic Trade Fair(中國國際有機食品博覧會), organic dairy products of Shengmu were awarded the "Gold Medal of BIOFACH CHINA Organic Trade Fair" for the seventh time. In the Chinese Dairy Industry Exhibition, Shengmu was honored "Excellent Enterprise" among the outstanding dairy product processing enterprises for 2018.
‧Liquid milk business of the Company has strictly implemented the high-price strategy through unified retail price, sales-oriented production and cash on delivery. Therefore, there was no increase in receivables during the year.
‧Online business achieved sustainable growth by deepening cooperation with various platforms including Jingdong and Yunji, as well as developing exclusive ranches and customized products.
‧In 2018, the Group's revenue increased from RMB 2,706.8 million in 2017 to RMB 2,887.2 million, nevertheless, the net cash inflow of the Group's operating activities was approximately RMB972.5 million, representing an increase of RMB1,085.7 million from the net cash outflow of approximately RMB113.2 million in the year of 2017.
In this announcement "we", "us" and "our" refer to the Company (as defined below) and where the context otherwise requires, the Group (as defined below).
Translated English names of Chinese natural persons, legal persons, governmental authorities, institutions or other entities for which no official English translation exists are unofficial translations for identification purpose only.
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The board (the "Board") of directors (the "Directors") of China Shengmu Organic Milk Limited (the "Company" or "China Shengmu") hereby to announce the consolidated financial results of the Company and its subsidiaries (the "Group" or "Shengmu") for the year ended December 31, 2018, together with the comparative figures for the year ended December 31, 2017.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended | ||||||
December 31, | ||||||
Notes | 2018 | 2017 | ||||
Restated* | ||||||
RMB'000 | RMB'000 | |||||
CONTINUING OPERATIONS | ||||||
REVENUE | 4 | 2,164,449 | 1,860,722 | |||
Cost of sales | (1,468,427) | (792,295) | ||||
Gross profit | 696,022 | 1,068,427 | ||||
Loss arising from changes in fair value | ||||||
less costs to sell of biological assets | (1,321,554) | (595,479) | ||||
Other income and gains/(losses) | 4 | 12,576 | (13,550) | |||
Selling and distribution expenses | (63,723) | (34,907) | ||||
Administrative expenses | (119,262) | (76,171) | ||||
Impairment losses on financial and contract assets | (91,345) | - | ||||
Other expenses | (36) | - | ||||
Finance costs | 6 | (144,995) | (146,015) | |||
Share of losses of associates | (15,180) | (2,937) | ||||
(LOSS)/PROFIT BEFORE TAX FROM | ||||||
CONTINUING OPERATIONS | 5 | (1,047,497) | 199,368 | |||
Income tax credit/(expense) | 7 | 280 | (23) | |||
(LOSS)/PROFIT FOR THE YEAR FROM | ||||||
CONTINUING OPERATIONS | (1,047,217) | 199,345 | ||||
DISCONTINUED OPERATION | ||||||
Loss for the year from a | ||||||
discontinued operation | 8 | (1,264,000) | (1,053,135) | |||
LOSS FOR THE YEAR | (2,311,217) | (853,790) | ||||
(Loss)/profit attributable to: | ||||||
Owners of the parent | (2,225,200) | (1,015,266) | ||||
Non-controlling interests | (86,017) | 161,476 | ||||
(2,311,217) | (853,790) | |||||
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)
For the year ended December 31, | ||||||
Notes | 2018 | 2017 | ||||
Restated* | ||||||
RMB'000 | RMB'000 | |||||
(LOSS)/EARNINGS PER SHARE | ||||||
ATTRIBUTABLE TO ORDINARY EQUITY | ||||||
HOLDERS OF THE PARENT | 10 | |||||
Basic | ||||||
- For loss for the year | (RMB 0.350) | (RMB0.160) | ||||
- For (loss)/profit for continuing operations | (RMB 0.151) | RMB0.006 | ||||
Diluted | ||||||
- For loss for the year | (RMB 0.350) | (RMB0.160) | ||||
- For (loss)/profit for continuing operations | (RMB 0.151) | RMB0.006 | ||||
OTHER COMPREHENSIVE INCOME | ||||||
Exchange differences on translation | ||||||
of foreign operations | (2,360) | 3,081 | ||||
Net other comprehensive (loss)/income | ||||||
that may be reclassified to profit or loss | ||||||
in subsequent periods | (2,360) | 3,081 | ||||
OTHER COMPREHENSIVE (LOSS)/ | ||||||
INCOME FOR THE YEAR, NET OF TAX | (2,360) | 3,081 | ||||
TOTAL COMPREHENSIVE LOSS | ||||||
FOR THE YEAR | (2,313,577) | (850,709) | ||||
(Loss)/profit attributable to: | ||||||
Owners of the parent | (2,227,560) | (1,012,185) | ||||
Non-controlling interests | (86,017) | 161,476 | ||||
(2,313,577) | (850,709) | |||||
*Certain amounts shown here do not correspond to the 2017 financial statements and reflect adjustments made, refer to Note 3.
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at | ||||||||
31 December 31 December | 1 January | |||||||
Notes | 2018 | 2017 | 2017 | |||||
Restated* | Restated* | |||||||
RMB'000 | RMB'000 | RMB'000 | ||||||
NON-CURRENT ASSETS | ||||||||
Property, plant and equipment | 2,087,045 | 2,798,328 | 2,710,368 | |||||
Prepaid land lease payments | 18,845 | 36,550 | 37,566 | |||||
Other intangible assets | 11,463 | 13,611 | 14,847 | |||||
Investments in associates | 90,328 | 105,784 | 112,658 | |||||
Available-for-sale investments | - | 2,007 | 1,427 | |||||
Biological assets | 11 | 2,667,427 | 3,867,389 | 3,884,257 | ||||
Prepayments for property, plant | ||||||||
and equipment and biological assets | 1,014 | 6,209 | 11,963 | |||||
Long term receivables | 11,516 | 14,059 | 19,684 | |||||
Deferred tax assets | 410 | 32,197 | 24,634 | |||||
Other non-current assets | 9,930 | 39,212 | 16,565 | |||||
Total non-current assets | 4,897,978 | 6,915,346 | 6,833,969 | |||||
CURRENT ASSETS | ||||||||
Inventories | 604,060 | 860,828 | 928,816 | |||||
Biological assets | 11 | 7,492 | 33,511 | - | ||||
Trade and bills receivables | 246,715 | 1,100,006 | 1,108,787 | |||||
Prepayments, other receivables | ||||||||
and other assets | 599,092 | 898,837 | 393,550 | |||||
Available-for-sale investments | - | - | 120,000 | |||||
Pledged deposits | 150,617 | 128,884 | 66,791 | |||||
Cash and bank balances | 74,052 | 582,283 | 1,047,382 | |||||
Assets of a disposal group classified | ||||||||
as held for sale | 8 | 978,355 | - | - | ||||
Total current assets | 2,660,383 | 3,604,349 | 3,665,326 | |||||
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
As at | ||||||||
31 December 31 December | 1 January | |||||||
Notes | 2018 | 2017 | 2017 | |||||
Restated* | Restated* | |||||||
RMB'000 | RMB'000 | RMB'000 | ||||||
CURRENT LIABILITIES | ||||||||
Trade and bills payables | 12 | 997,085 | 1,188,964 | 920,631 | ||||
Receipts in advance | - | 14,700 | 13,152 | |||||
Other payables and accruals | 486,235 | 482,387 | 449,742 | |||||
Derivative financial instruments | 81,238 | - | - | |||||
Interest-bearing bank and | ||||||||
other borrowings | 2,218,864 | 2,654,046 | 918,404 | |||||
Income tax payable | - | 1,455 | 1,581 | |||||
Liabilities directly associated with | ||||||||
the assets classified as held for sale | 8 | 790,006 | - | - | ||||
Total current liabilities | 4,573,428 | 4,341,552 | 2,303,510 | |||||
NET CURRENT LIABILITIES | (1,913,045) | (737,203) | 1,361,816 | |||||
TOTAL ASSETS LESS CURRENT | ||||||||
LIABILITIES | 2,984,933 | 6,178,143 | 8,195,785 | |||||
NON-CURRENT LIABILITIES | ||||||||
Interest-bearing bank and | ||||||||
other borrowings | 49,518 | 720,201 | 1,751,950 | |||||
Long term payables | 56,528 | 82,829 | 107,900 | |||||
Total non-current liabilities | 106,046 | 803,030 | 1,859,850 | |||||
Net assets | 2,878,887 | 5,375,113 | 6,335,935 | |||||
EQUITY | ||||||||
Equity attributable to owners | ||||||||
of the parent | ||||||||
Share capital | 13 | 50 | 50 | 50 | ||||
Reserves | 2,017,863 | 4,315,612 | 5,327,797 | |||||
2,017,913 | 4,315,662 | 5,327,847 | ||||||
Non-controlling interests | 860,974 | 1,059,451 | 1,008,088 | |||||
Total equity | 2,878,887 | 5,375,113 | 6,335,935 | |||||
*Certain amounts shown here do not correspond to the 2017 financial statements and reflect adjustments made, refer to Note 3.
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China Shengmu Organic Milk Ltd. published this content on 29 March 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 March 2019 00:30:11 UTC