Dream International : 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.

DREAM INTERNATIONAL LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 1126)

RESULTS ANNOUNCEMENT FOR THE YEAR

ENDED 31 DECEMBER 2018

The board of directors (the "Board") of Dream International Limited (the "Company" or "Dream International") is pleased to announce the consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2018, together with the comparative figures for the previous financial year, as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2018

2018	2017
Notes	HK$'000	HK$'000
Revenue	3 & 4	3,536,936	2,896,435
Cost of sales	(2,793,931)	(2,063,667)
Gross profit	743,005	832,768
Other revenue	5(a)	19,872	14,214
Other net loss	5(b)	(1,075)	(20,108)
Distribution costs	(92,285)	(65,162)
Administrative expenses	(280,708)	(273,851)
Profit from operations	388,809	487,861
Finance costs	6(a)	(3,757)	(530)
Profit before taxation	6	385,052	487,331
Income tax	7	(64,527)	(85,120)
Profit for the year	320,525	402,211
Attributable to:
Equity shareholders of the Company	332,498	406,338
Non-controlling interests	(11,973)	(4,127)
Profit for the year	320,525	402,211
Earnings per share	8
Basic and diluted	HK49.12Ć	HK60.03¢

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2018

Profit for the yearOther comprehensive income for the year

(after tax and reclassification adjustments):

Items that will not be reclassified to profit or loss:

• - Remeasurement of net defined benefit retirement obligation

• - Unlisted equity security at fair value through other comprehensive income - net movement in fair value reserve (non-recycling)

Items that may be or are reclassified subsequently to profit or loss:

• - Exchange differences on translation of financial statements of subsidiaries outside Hong Kong

• - Reclassification of accumulated exchange differences to profit or loss upon deregistration of a subsidiary

• - Investment in debt security at fair value through other comprehensive income - net movement in fair value reserve (recycling)

• - Available-for-sale securities - net movement in fair value reserve (recycling)

Other comprehensive income for the yearTotal comprehensive income for the yearAttributable to:

Equity shareholders of the Company Non-controlling interests

Total comprehensive income for the year

2018	2017
Notes	HK$'000	HK$'000
320,525	402,211
(923)	(570)
(174)	-
(6,968)	29,870
-	(705)
255	-
-	(673)
(6,713)	28,492
(7,810)	27,922
312,715	430,133
324,575	434,231
(11,860)	(4,098)
312,715	430,133

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2018

2018	2017
Notes	HK$'000	HK$'000
Non-current assets
Investment properties	3,900	1,272
Interests in leasehold land held for
own use under operating leases	107,250	97,906
Other property, plant and equipment	1,057,977	739,661
Long term receivables and prepayments	23,090	17,953
Other intangible assets	7,046	7,255
Goodwill	2,753	2,753
Deferred tax assets	4,511	4,154
Other financial assets	9	5,843	14,134
1,212,370	885,088
Current assets
Inventories	459,210	323,938
Trade and other receivables	10	633,121	654,531
Current tax recoverable	206	196
Other financial assets	9	-	7,644
Time deposits	53,705	76,470
Cash and cash equivalents	378,503	316,739
1,524,745	1,379,518
Current liabilities
Trade and other payables and contract liabilities	11	592,124	492,729
Bank loans	116,895	15,621
Current tax payable	44,046	47,544
753,065	555,894
Net current assets	771,680	823,624
Total assets less current liabilities	1,984,050	1,708,712

2018	2017
HK$'000	HK$'000
Non-current liabilities
Deferred tax liabilities	8,627	11,009
Provision for reinstatement costs	-	1,247
Net defined benefit retirement obligation	-	1,514
8,627	13,770
NET ASSETS	1,975,423	1,694,942
CAPITAL AND RESERVES
Share capital	236,474	236,474
Reserves	1,762,125	1,469,750
Total equity attributable to
equity shareholders of the Company	1,998,599	1,706,224
Non-controlling interests	(23,176)	(11,282)
TOTAL EQUITY	1,975,423	1,694,942

NOTES TO THE FINANCIAL INFORMATION

• 1. Basis of preparation

  The financial information relating to the years ended 31 December 2018 and 2017 included in this preliminary announcement of annual results does not constitute the Company's statutory annual consolidated financial statements for those years but is derived from those financial statements. Further information relating to these statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap. 622) ("Companies Ordinance") is as follows:

  The Company has delivered the financial statements for the year ended 31 December 2017 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Companies Ordinance and will deliver the financial statements for the year ended 31 December 2018 in due course.

  The Company's auditor has reported on the financial statements of the Group for both years. The auditor's reports were unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its reports; and did not contain a statement under sections 406(2), 407(2) or (3) of the Companies Ordinance.

  The consolidated financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the requirements of the Companies Ordinance. The consolidated financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

  The measurement basis used in the preparation of the consolidated financial statements is the historical cost basis except that investments in debt and equity securities, derivative financial instruments and certain employee benefits are stated at their fair values.

• 2. Changes in accounting policies

  The HKICPA has issued a number of new HKFRSs and amendments to HKFRSs that are first effective for the current accounting period of the Group. Of these, the following developments are relevant to the Group's financial statements:

  • (i) HKFRS 9, Financial instruments

  • (ii) HKFRS 15, Revenue from contracts with customers

  • (iii) HK(IFRIC) 22, Foreign currency transactions and advance consideration