CNNC International : Final results announcement for the year ended 31 December 2018

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.

CNNC INTERNATIONAL LIMITED 中核國際有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2302)

FINAL RESULTS ANNOUNCEMENT

FOR THE YEAR ENDED 31ST DECEMBER, 2018

The Board of Directors (the "Board") of CNNC International Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31st December, 2018 (the "Year") as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended

31st December, 2018 2017

NOTESHK$'000 HK$'000

Revenue	3	1,992,052	652,060
Cost of sales	(1,969,367)	(637,830)
Gross profit	22,685	14,230
Other income	2,464	3,601
Net exchange (losses) gains	(535)	1,104
Selling and distribution expenses	(1,982)	(850)
Administrative expenses	(18,340)	(17,828)
Profit before tax	4	4,292	257
Income tax credit	5	19,321	-
Profit for the year	23,613	257

For the year ended

31st December, 2018 2017

NOTES

HK$'000 HK$'000

Other comprehensive (expense) income

Item that will not be reclassified to profit or loss:

Exchange differences arising on translation to

presentation currency	(2,625)	3,566
Total comprehensive income
for the year attributable to owners of
the Company	20,988	3,823
Basic earnings per share	7	HK4.8 cents	HK0.1 cent

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONNon-current assetsAs at 31st December, 2018 2017

NOTES

HK$'000 HK$'000

Property, plant and equipment	15,048	15,715
Exploration and evaluation assets	211,151	210,709
Deposit paid for acquisition of equity instrument
at fair value through other comprehensive
income	2,561	-
228,760	226,424
Current assets
Inventories	100,380	179,670
Trade and other receivables and prepayments	8	103,710	74,553
Bank balances and cash	177,917	247,743
382,007	501,966
Current liabilities
Trade and other payables and accruals	9	24,549	158,622
Contract liabilities	15,520	-
Amount due to an intermediate
holding company	1,910	1,907
Amount due to ultimate holding company	1,977	2,678
Amounts due to fellow subsidiaries	117	117
Income tax payable	-	19,360
44,073	182,684
Net current assets	337,934	319,282
Net assets	566,694	545,706
Capital and reserves
Share capital	4,892	4,892
Share premium and reserves	561,802	540,814
Equity attributable to owners of the Company	566,694	545,706

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31st December, 2018

• 1. BASIS OF PREPARATION

  The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"). In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and by the Hong Kong Companies Ordinance.

  The consolidated financial statements have been prepared on the historical cost basis at the end of each reporting period. Historical cost is generally based on the fair value of the consideration given in exchange of goods and services.

• 2. PRINCIPAL ACCOUNTING POLICIES

  The Group has applied the following amendments to HKFRSs issued by the HKICPA for the first time in the current year:

  New and amendments to HKFRSs that are mandatorily effective for the current year

  HKFRS 9	Financial Instruments
  HKFRS 15	Revenue from Contracts with Customers and the related
  Amendments
  HK(IFRIC)-Int 22	Foreign Currency Transactions and Advance Consideration
  Amendments to HKFRS 2	Classification and Measurement of Share-based Payment
  Transactions
  Amendments to HKFRS 4	Applying HKFRS 9 Financial Instruments with HKFRS 4
  Insurance Contracts
  Amendments to HKAS 28	As part of the Annual Improvements to HKFRSs 2014-2016 Cycle
  Amendments to HKAS 40	Transfers of Investment Property

  Except as described below, the application of the new and amendments to HKFRSs in the current year had no material impact on the Group's financial performance and positions for the current and prior years and/or on the disclosures set out in these consolidated financial statements.

  HKFRS 15 "Revenue from Contracts with Customers"

  The Group has applied HKFRS 15 for the first time in the current year. HKFRS 15 superseded HKAS 18 "Revenue", HKAS 11 "Construction Contracts" and the related interpretations.

The Group has applied HKFRS 15 retrospectively with the cumulative effect of initially applying this Standard recognised at the date of initial application, 1st January, 2018. Any difference at the date of initial application is recognised in the opening accumulated losses and comparative information has not been restated. Furthermore, in accordance with the transition provisions in HKFRS 15, the Group has elected to apply the Standard retrospectively only to contracts that are not completed at 1st January, 2018. Accordingly, certain comparative information may not be comparable as comparative information was prepared under HKAS 18 "Revenue" and HKAS 11 "Construction Contracts" and the related interpretations.

The Group recognises revenue from trading of uranium, electronics products and provision of merchandising services which arise from contracts with customers.

Summary of effects arising from initial application of HKFRS 15

As at 1st January, 2018, receipt in advance previously included in trade and other payables and accruals were reclassified to contract liabilities as follows:

Carrying amounts previously reported at 31st December, 2017

Carrying amounts under HKFRS 15 at

Reclassification

1st January, 2018*

HK$'000

HK$'000

HK$'000

Current liabilities

Trade and other payables and accruals Contract liabilities

158,622 -

(194) 194

158,428 194

* The amounts in this column are before the adjustments from the application of HKFRS 9.

The relevant impact of applying HKFRS 15 on the Group's consolidated statement of financial position as at 31st December, 2018 are as follows:

Amounts without application

As reportedAdjustmentof HKFRS 15

HK$'000

HK$'000

HK$'000

Current liabilities

Trade and other payables and accruals Contract liabilities

24,549 15,520

15,520 (15,520)

40,069 -

The application of HKFRS 15 has no other significant impact on the timing and amounts of revenue in the current year and accumulated losses at 1st January, 2018.