Easyknit International : Announcement INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

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EASYKNIT INTERNATIONAL HOLDINGS LIMITED

永義國際集團有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 1218)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2021

FINANCIAL HIGHLIGHTS
	For the six months
	ended 30 September
	2021	2020	Change
	(unaudited)	(unaudited)
Revenue (HK$'000)	173,125	23,711	630.1%
Gross profit (HK$'000)	91,417	22,474	306.8%
Gross profit margin	52.8%	94.8%	(42.0)%
Net profit (loss) (HK$'000)	1,020,272	(73,994)	N/A
Basic and diluted earnings (loss) per share (HK$)	12.18	(0.81)	N/A
	As at
	30 September	31 March	Change
	2021	2021
	(unaudited)	(audited)
Total assets (HK$'000)	8,576,818	4,903,606	74.9%
Total liabilities (HK$'000)	3,630,734	1,673,161	117.0%
Net asset value (HK$'000)	4,946,084	3,230,445	53.1%
Net asset value per share (HK$)	63.6	39.3	61.8%

RESULTS

The board of directors (the "Board" or the "Directors") of Easyknit International Holdings Limited (the "Company") is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30 September 2021 (the "Period"), together with the comparative figures for the corresponding period in 2020 as follows:

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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 September 2021

		Six months ended
		30 September
		2021	2020
	Note	HK$'000	HK$'000
		(Unaudited)	(Unaudited)
Revenue
Sales of properties		119,644	-
Rental income		33,622	16,027
Interest income from loan financing		10,921	6,927
Building management		8,938	757
Total revenue	4	173,125		23,711
Cost of properties sold and services rendered		(81,708)	(1,237)
Gross profit		91,417		22,474
Other income, gains and losses		10,432	4,219
Distribution and selling expenses		(15,924)	(2,200)
Administrative expenses		(45,531)	(21,094)
Other expenses		(311)	-
Write-down on properties held for development for sale		-	(31,231)
Write-down on properties held for sale		-	(100)
Gain (loss) on changes in fair value of investment properties		38,378	(58,840)
Net loss on changes in fair value of financial assets at fair
value through profit or loss ("FVTPL")		(46,774)	(16,382)
Release on disposal of debt instruments at fair value through
other comprehensive income ("FVTOCI")		(1,683)	685
(Impairment loss) reversal of impairment loss on financial
assets, net:
- Loans receivable		(3,736)	(2,482)
- Debt instruments at FVTOCI		(4,135)	(236)
- Debt instruments at amortised cost		(54)	1,650

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		Six months ended
		30 September
	Notes	2021		2020
		HK$'000	HK$'000
		(Unaudited)	(Unaudited)
Gain on bargain purchase on acquisition of a subsidiary	12	1,676,151		-
Loss on remeasurement of interest in an associate		(656,380)	-
Gain on bargain purchase at date of deemed acquisition of
additional interest in an associate		-	58,471
Share of results of an associate		(1,250)	(19,392)
Share of results of a joint venture		(4)	(5)
Finance costs		(15,236)	(8,867)
Profit (loss) before taxation	5	1,025,360		(73,330)
Taxation	6	(5,088)	(664)
Profit (loss) for the period		1,020,272		(73,994)
Other comprehensive (expense) income
Items that may be reclassified subsequently to profit or loss:
Share of other comprehensive income (expense) of an
associate:
Share of translation reserve of an associate		-	6,569
Share of FVTOCI reserve of an associate		33	849
Reclassification of translation reserve to profit or loss
upon deemed disposal of interest in an associate		(570)	-
Reclassification of FVTOCI reserve to profit or loss
upon deemed disposal of interest in an associate		(12,707)	-
		(13,244)	7,418

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		Six months ended
		30 September
	Note	2021			2020
		HK$'000	HK$'000
		(Unaudited)	(Unaudited)
Exchange differences arising on translation of financial
statements of foreign operations		5,919		-
Change in fair value of debt instruments at FVTOCI		(12,496)	446
Release on disposal of debt instruments at FVTOCI		1,683		(685)
Impairment loss on debt instruments at FVTOCI included in
profit or loss, net		4,135		236
Other comprehensive (expense) income for the period		(14,003)	7,415
Total comprehensive income (expense) for the period		1,006,269			(66,579)
Profit (loss) for the period attributable to:
Owners of the Company		998,734			(73,881)
Non-controlling interests		21,538		(113)
		1,020,272			(73,994)
Total comprehensive income (expense) for the period
attributable to:
Owners of the Company		984,138			(66,466)
Non-controlling interests		22,131		(113)
		1,006,269			(66,579)
Basic and diluted earnings (loss) per share	8	HK$12.18	HK$(0.81)

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 September 2021

		30 September	31 March
		2021		2021
	Notes	HK$'000	HK$'000
		(Unaudited)	(Audited)
Non-current assets
Property, plant and equipment		207,527	107,138
Right-of-use assets		225	493
Investment properties		2,393,173	1,179,400
Interest in an associate		-	808,718
Interest in a joint venture		53	57
Financial assets at FVTPL		29,847	211,446
Debt instruments at FVTOCI		6,363	4,030
Debt instruments at amortised cost		47,713	15,209
Loans receivable	9	44,801		17,280
Intangible asset		500	500
Deferred tax assets		18,871	8,724
Deposits		205	10,205
Other receivables	10	103,160		-
		2,852,438		2,363,200
Current assets
Properties held for development for sale		3,925,401		950,375
Properties held for sale		881,217	960,930
Financial assets at FVTPL		324,598	148,876
Debt instruments at FVTOCI		24,608	7,740
Trade and other receivables	10	73,769		38,218
Tax recoverable		309	309
Loans receivable	9	189,853		125,736
Bank balances and cash		304,625	308,222
		5,724,380		2,540,406

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