Greatview Aseptic Packaging : 2019 Interim Report

2	Greatview Aseptic Packaging Company Limited • Interim Report 2019

Contents

1. Corporate Information

1. Financial Summary
2. Management Discussion and Analysis

1. Other Information

1. Condensed Consolidated Income Statement

1. Condensed Consolidated Statement of Comprehensive Income
2. Condensed Consolidated Statement of Financial Position

1. Condensed Consolidated Statement of Changes in Equity
2. Condensed Consolidated Statement of Cash Flows
3. Notes to the Condensed Consolidated Financial Statements

Greatview Aseptic Packaging Company Limited • Interim Report 2019

1

Corporate Information

DIRECTORS

Executive Directors

Mr. BI Hua, Jeff (Chief Executive Officer)

Mr. LIU Jun (resigned with effect from 31 January 2019)

Mr. CHANG Fuquan (appointed with effect from 27 March 2019)

Non-Executive Directors

Mr. HONG Gang (Chairman)

Mr. HSU David

Independent Non-Executive Directors

Mr. LUETH Allen Warren

Mr. BEHRENS Ernst Hermann

Mr. ZHU Jia

JOINT COMPANY SECRETARIES

Mr. CHANG Fuquan (resigned with effect from 27 March 2019) Ms. QI Zhaohui (appointed with effect from 27 March 2019) Ms. SO Lai Shan

AUTHORISED REPRESENTATIVES

Mr. BI Hua, Jeff

Ms. SO Lai Shan

AUDIT COMMITTEE

Mr. LUETH Allen Warren (Chairman)

Mr. BEHRENS Ernst Hermann

Mr. HSU David

Mr. ZHU Jia

REMUNERATION COMMITTEE

Mr. ZHU Jia (Chairman)

Mr. BI Hua, Jeff

Mr. LUETH Allen Warren

Mr. BEHRENS Ernst Hermann

NOMINATION COMMITTEE

Mr. HONG Gang (Chairman)

Mr. BEHRENS Ernst Hermann

Mr. ZHU Jia

OTHER PLACE OF BUSINESS IN HONG KONG

Unit 15, 36/F, China Merchants Tower

Shun Tak Centre

No. 168-200 Connaught Road

Central

Hong Kong

HEADQUARTER IN THE PEOPLE'S REPUBLIC OF CHINA (THE "PRC")

14 Jiuxianqiao Road

Chaoyang District

Beijing 100015

The PRC

AUDITOR

PricewaterhouseCoopers

Certified Public Accountants

LEGAL ADVISERS

Iu, Lai & Li Solicitors

Tian Yuan Law Firm

PRINCIPAL BANKERS

DBS Bank (Hong Kong) Limited

Commerzbank AG

The Hongkong and Shanghai Banking Corporation Limited

Citi Bank

China Construction Bank

Industrial and Commercial Bank of China

China Merchants Bank

PRINCIPAL SHARE REGISTRAR AND

  TRANSFER OFFICE IN THE CAYMAN   ISLANDS

Codan Trust Company (Cayman) Limited

Cricket Square

Hutchins Drive

P. O. Box 2681

Grand Cayman KY1-1111

Cayman Islands

REGISTERED OFFICE	BRANCH SHARE REGISTRAR AND TRANSFER
Cricket Square, Hutchins Drive	OFFICE IN HONG KONG
P. O. Box 2681	Tricor Investor Services Limited
Grand Cayman, KY1-1111	Level 54
Cayman Islands	Hopewell Centre
PRINCIPAL PLACE OF BUSINESS IN	183 Queen's Road East
Hong Kong
HONG KONG	COMPANY WEBSITE
31/F, Tower Two
Times Square	www.greatviewpack.com
1 Matheson Street
Causeway Bay
Hong Kong
	Greatview Aseptic Packaging Company Limited • Interim Report 2019 3

Financial

Summary

	For the six months ended 30 June
	2019	2018	Percentage
	RMB million	RMB million	%
	(Unaudited)	(Unaudited)
Revenue	1,182.8	1,219.2	-3.0%
Gross Profit	287.5	320.0	-10.2%
Net Profit	171.8	175.1	-1.9%
Profit attributable to shareholders	171.8	175.1	-1.9%
Earnings per share - basic and diluted (RMB)	0.128	0.131	-2.3%
Proposed dividend per share (HK$)	0.13	0.13	-

REVENUE ANALYSIS

83.6%

16.4%

Dairy

NCSD

67.7%

32.3%

PRC

International

Greatview Aseptic Packaging Company Limited • Interim Report 2019

5

MANAGEMENT

DISCUSSION AND

ANALYSIS

BUSINESS REVIEW

Overview

Our Group (Greatview Aseptic Packaging Company Limited, our "Company" or "Greatview" and its subsidiaries) provides integrated packaging solution, which includes aseptic packaging materials, filling machines, spare parts and technical services, to the liquid food industry. We are the second largest roll-fed supplier globally and the leading alternative supplier in the PRC. Our aseptic packaging materials are branded under the trademark of "GREATVIEW", which includes "Greatview Brick", "Greatview Pillow", "Greatview Crown", "Greatview Octagon" and "Greatview Blank-Fed". In March 2019, we completed the acquisition of Qingdao Likang Food Packaging Technology Company Limited* ("Likang"), which sells its aseptic packaging materials under the trademark of "Century Pack", including "Century Pack" Aseptic Brick, "Century Pack" Aseptic Pillow, etc.. Our aseptic packaging materials are fully compatible with industry-standardroll-fed and blank-fed aseptic carton filling machines, which has benefited most of the dairy and non-carbonated soft drink ("NCSD") producers in the PRC as well as numerous of international customers.

In the first half of 2019, the consolidation of liquid dairy market has been further intensified while the overall scale and volume of the domestic market were relatively stable, which in turn amplified the market competition. International market remained to be one of our major competitive fields. To improve our competitive edge, we have formulated an integration strategy for our international business and have been implementing it procedurally. The successful acquisition of Likang enhanced our competitiveness in the mid and low-end markets while diversifying our product lines.

Greatview Factory at Halle (Saale), Germany.

*  For identification purposes only

6	Greatview Aseptic Packaging Company Limited • Interim Report 2019

In respect of the PRC business, China is the largest single market of Greatview. In the first half of 2019, under the double requirements of China's national dairy strategy and market competition, China's dairy industry has entered the era of brand competition. The liquid milk market is highly competitive that despite the modest increase in retail price of ambient liquid dairy products, the continuous consolidation of the dairy industry has reduced the profitability of mid and low-end customers.

We embrace the changes brought about by the technology and economic environments, thus adopting proactive measures to reduce costs and increase efficiency, so as to improve customer satisfaction with product quality and cost performance.

In respect of international business, competition of smaller regional players has been intensified. We saw signs of these players significantly lowering prices in order to gain short term volume which we believe is never a sustainable way to deliver customer value. We have businesses with customers in over 40 countries globally and while diversity increases our geographical coverage, this also makes scale leveraging difficult. Due to the above, focus has been made to re-rationalize our country and customer portfolio focusing on long term sustainability and scalability of our portfolio. Abide enabling our customers to enjoy a superior price and value benefit against the competition, we also focus on cultivating long term business partnership. As a result, the share of top 10 international customers and the share of global key accounts have increased.

Progress has also been made in new customer development in all regions including South East Asia. We believe 2019 will be a year of strengthening our business fundamentals in order to prepare for an exponential growth to the international market.

The world's first aseptic packaging One

Code per Pack technology unveiled in the

Food and Drinks Fair in Chengdu

Greatview Aseptic Packaging Company Limited • Interim Report 2019

7

Management Discussion and Analysis

Being innovative yet pragmatic is one of the core values of Greatview. In February 2019, we launched "Greatview Brilliance"（紛美炫彩包）, a new product with special appearance achieved through laser holographic metal films, which enhanced its appearance while equipping it with anti-fake function and enhancing its attribute.

Greatview is dedicated to innovation and independent development of inspiring and ecologically-friendly means to increase the appeal of our packages. We aim to offer our customers more choices to enhance their brand image and to stand out on cluttered shelves. We packaged Greatview Luster, Greatview Metal ( 紛美金屬包), and Greatview Brilliance into the brand new "Greatview Paper Art series" to enable customers to achieve higher differentiation at lower cost. No additional investment is needed because all packaging effects can be quickly applied to existing formats without modifying the filling equipment.

On the basis of the variable printing technology, Greatview manipulates the high-speed online printing technology to give each package its unique identification. In addition, we combine a number of cutting-edge technologies such as Internet, Internet of Things, big data, etc. to upgrade and integrate equipment, thus becoming the first service provider in the PRC to achieve full traceability of aseptic packaging materials. Also, it provides customers with "Smart Packaging Traceability Solution".

In order to facilitate the implementation of our sustainability strategy, we have increased our investment in the research and development of environmentally-friendly products. The paper straws being developed by Greatview are easier to be recycled and degenerated. Meanwhile, we expect to provide comprehensive solutions to our customers.

A multi-year Growth Programme (the "Programme") has been deployed during the year. The Programme aims at raising organisation capability, strengthening our ability to deliver value to customers and establishing differentiated market positioning. We will implement a number of strategic initiatives to optimize our customers' countries and customers portfolio, extend our service value chain, advance product development and drive digital innovation. The Programme has just started and will take time to make progress but all these initiatives are designed to ensure that Greatview delivers another wave of sustainable growth.

Markets and Products

We sold a total of approximately 6.6 billion packs during the first half of 2019 which represents a decrease of approximately 0.5% as compared with the same period in 2018, such decrease was due to the decline in sales volume of the international market compared with the previous year. "Greatview Brick 250ml Base" remained as our top selling product, followed by "Greatview Brick 200ml Slim".

In the PRC market, despite the fact that dairy market grew slower as compared with before, we remain positive on the outlook for the dairy industry in the long run in view of urbanisation and the relatively low annual per capita consumption of dairy products in the PRC.

In the international market, with a view of the growth of global population and the development opportunities to us in the current market share, we are optimistic about our potential opportunities in the second half of 2019 and beyond.

In response to increasing market diversity demand for aseptic packaging products, we will strive to step up research and development of new products, introduce various types and sizes of packaging products and expand our product portfolio so as to widen our customer base and enhance our brand image in the market.

8	Greatview Aseptic Packaging Company Limited • Interim Report 2019

Management Discussion and Analysis

Production Capacity and Utilisation

Greatview has a total annual production capacity of approximately 30.0 billion packs as of 30 June 2019 (30 June 2018: approximately

25.4 billion packs). Approximately 6.7 billion packs were produced for the six months ended 30 June 2019 which represented an utilization rate of approximately 44.7% (30 June 2018: approximately 51.2%). The decrease in the utilisation rate was mainly due to the underused capacity of Likang and decrease of sales volume in international market.

Suppliers and Raw Materials

During the six months ended 30 June 2019, the cost of raw materials remained stable with the support of effective supply chain management.

We continued to select top quality suppliers to maintain the stability of the cost of raw materials.

Business development

Greatview provides aseptic packaging materials and services to leading dairy and NCSD producers across the world.

Upon the completion of acquiring Likang in March 2019, Likang became a wholly-owned subsidiary of Greatview. The acquisition was in line with Greatview's strategy to seek opportunities for development of aseptic packaging businesses in the PRC and international markets. By acquiring Likang, Greatview consolidated its position as the second largest aseptic packaging company in the PRC. Moreover, the transaction broadened Greatview's customer base and enhanced the synergy among Greatview's existing production capability.

In April 2019, Mr. BI Hua, Jeff, the chief executive officer of Greatview, attended the investment forum "Integrated Industry - On the way to Artificial intelligence" held in Magdeburg, Germany, and delivered the speech entitled "Best Practice: Greatview Aseptic Packaging Manufacturing GmbH/Saxony-Anhalt". Mr. BI demonstrated and elaborated on the "one-code-per-pack" technology, traceable solutions, and the application of data cockpit, which intrigued attendees of the forum.

In May 2019, Greatview was granted the "Best Strategic Support Award" award by Mengniu. After years of effective cooperation between the two companies, Greatview has evolved from a provider for various products, services, and innovative projects of Mengniu into its high-level strategic partner.

FINANCIAL REVIEW

Overview

In the first half of 2019, both top line and bottom line were slightly lower than the corresponding period of last year under the environment of severe competition and the strategy adjustment on international business. We were taking measures to cope with the difficult situation and maintained free cash flow for interim dividend. Our management will continue to capture growth in the aseptic packaging industry as well as pursue potential business development opportunities to further enhance return to shareholders.

Revenue

We primarily derived revenue from the PRC and international sales of aseptic packaging and related services to dairy and NCSD producers. Revenue of our Group decreased by approximately 3.0% from approximately RMB1,219.2 million for the six months ended 30 June 2018 to approximately RMB1,182.8 million for the six months ended 30 June 2019.

Greatview Aseptic Packaging Company Limited • Interim Report 2019

9

Management Discussion and Analysis

With respect to the PRC segment, our revenue increased by approximately RMB2.2 million, or 0.3%, to approximately RMB800.5 million for the six months ended 30 June 2019 from approximately RMB798.3 million for the six months ended 30 June 2018. It was mainly contributed by the increase of sales volume.

With respect to the international segment, our revenue decreased by approximately RMB38.6 million, or 9.2%, to approximately RMB382.3 million for the six months ended 30 June 2019 from approximately RMB420.9 million for the six months ended 30 June 2018. It was mainly due to integration strategy by integrating business across countries and customers to improve our profitability.

Our revenue from dairy customers decreased by approximately RMB41.6 million, or 4.0%, to approximately RMB988.4 million for the six months ended 30 June 2019 from approximately RMB1,030.0 million for the six months ended 30 June 2018, and our revenue from NCSD customers increased by approximately RMB5.2 million, or 2.7%, to approximately RMB194.4 million for the six months ended 30 June 2019 from approximately RMB189.2 million for the six months ended 30 June 2018. It was mainly due to the change of sales mix in the PRC.

Cost of Sales

Our cost of sales decreased by approximately RMB3.9 million, or 0.4%, to approximately RMB895.3 million for the six months ended 30 June 2019 from approximately RMB899.2 million for the six months ended 30 June 2018. The decline in cost of sales was almost at the same level with the decline of total sales volume.

Gross Profit and Gross Margin

As a result of the foregoing factors, our gross profit decreased by approximately RMB32.5 million, or 10.2% from approximately RMB320.0 million for the six months ended 30 June 2018 to approximately RMB287.5 million for the six months ended 30 June 2019. Our gross margin decreased by approximately 1.9 percentage points to approximately 24.3% for the six months ended 30 June 2019 from approximately 26.2% for the six months ended 30 June 2018. It was primarily due to the decrease of average sales price in the PRC market and the decrease of sales volume in the international market.

Other Income and other gains-net

Our other income and other gains-net increased by approximately RMB23.7 million, or 61.7%, to approximately RMB62.1 million for the six months ended 30 June 2019 from approximately RMB38.4 million for the six months ended 30 June 2018. It was primarily due to the negative goodwill from the acquisition of Likang.

Distribution Expenses

Our distribution expenses increased by approximately RMB4.0 million, or 6.3%, to approximately RMB68.0 million for the six months ended 30 June 2019 from approximately RMB64.0 million for the six months ended 30 June 2018. The increase was primarily due to the increase in transportation expenses and promotion expenses.

Administrative Expenses

Our administrative expenses increased by approximately RMB1.6 million, or 2.6%, to approximately RMB63.5 million for the six months ended 30 June 2019 from approximately RMB61.9 million for the six months ended 30 June 2018. The increase was primarily due to the increase of salary and welfare.

10 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Management Discussion and Analysis

Taxation

Our tax expenses decreased by approximately RMB15.2 million to approximately RMB45.5 million for the six months ended 30 June 2019 from approximately RMB60.7 million for the six months ended 30 June 2018. Effective tax rate decreased by approximately 4.8 percentage points to approximately 20.9% for the six months ended 30 June 2019 from approximately 25.7% for the corresponding period in 2018.

Profit for the Period and Net Profit Margin

Driven by the factors described above, our net profit decreased by approximately RMB3.3 million, or 1.9%, to approximately RMB171.8 million for the six months ended 30 June 2019 from approximately RMB175.1 million for the six months ended 30 June 2018. Our net profit margin increased by 0.1 percentage point to approximately 14.5% for the six months ended 30 June 2019 from approximately 14.4% for the six months ended 30 June 2018.

LIQUIDITY AND FINANCIAL RESOURCES

As at 30 June 2019, we had approximately RMB455.9 million (31 December 2018: approximately RMB556.4 million) in cash and cash equivalents. Our cash and cash equivalents consist primarily of cash on hand and bank balances which are primarily held in RMB denominated accounts with banks in the PRC.

As at 30 June 2019, we had nil (31 December 2018: nil) in available-for-sale financial assets, which represented wealth management products purchased from certain commercial banks in the PRC for treasury management purposes.

Analysis of Turnover of Inventories, Trade Receivables and Payables

Our Group's inventories primarily consist of raw materials and finished goods. Turnover days for inventory (inventories/cost of sales) increased from approximately 117.2 days as at 31 December 2018 to approximately 125.6 days as at 30 June 2019. Turnover days for trade receivables (trade receivables/revenue) increased from approximately 57.0 days as at 31 December 2018 to approximately 67.1 days as at 30 June 2019. Turnover days for trade payables (trade payables/cost of sales) increased from approximately 45.9 days as at 31 December 2018 to approximately 46.5 days as at 30 June 2019.

Borrowings and Finance Cost

All borrowings of our Group as at 30 June 2019 were bank borrowings and amounted to approximately RMB128.1 million (31 December 2018: approximately RMB190.4 million) and denominated in Euro. Amongst the borrowings, approximately RMB102.7 million (31 December 2018: approximately RMB161.0 million) will be repayable within one year and approximately RMB25.4 million (31 December 2018: approximately RMB29.4 million) will be repayable after one year. For the period under review, net finance income of our Group was approximately RMB-0.8 million (for the six months ended 30 June 2018: approximately RMB3.2 million). For details of the borrowings of our Group, please refer to note 15 to the consolidated financial statements in this interim report.

Gearing Ratio

As at 30 June 2019, the gearing ratio of the Group was approximately 0.05 (31 December 2018: approximately 0.08), which was in line with the outstanding loans. The gearing ratio is calculated by dividing total loans and bank borrowings by total equity as at the end of the financial year.

Greatview Aseptic Packaging Company Limited • Interim Report 2019 11

Management Discussion and Analysis

Working Capital

The working capital of the Group as at 30 June 2019 was approximately RMB1,158.5 million (31 December 2018: approximately RMB1,131.1 million). The working capital is calculated as the difference between the current assets and current liabilities.

Foreign Exchange Exposure

Our Group's sales were primarily denominated in RMB, Euro and USD. During the period under review, our Group recorded exchange gain of approximately RMB1.7 million (for the six months ended 30 June 2018: exchange gain of approximately RMB4.5 million).

Capital Expenditure

As at 30 June 2019, our Group's total capital expenditure amounted to approximately RMB212.9 million (for the six months ended 30 June 2018: approximately RMB78.7 million), which was mainly used for the acquisition of Likang.

Charge on Assets

As at 30 June 2019, our Group neither pledged any property, plant and equipment (31 December 2018: nil) nor land use right (31

December 2018: nil).

Contingent Liabilities

As at 30 June 2019, the Group did not have any material contingent liabilities (31 December 2018: nil).

EMPLOYEES AND REMUNERATION POLICY

As at 30 June 2019, our Group employed approximately 1,567 employees (31 December 2018: approximately 1,339 employees). Our Group offered competitive salary package, as well as discretionary bonuses, cash subsidies and contribution to social insurance to our employees. Total employee benefit expenses for the six months ended 30 June 2019 amounted to approximately RMB123.6 million (for the six months ended 30 June 2018: approximately RMB106.5 million). In general, we determine employee salaries based on each employee's qualifications, position and seniority. We have designed an annual review system to assess the performance of our employees, which forms the basis of our decisions with respect to salary raises, bonuses and promotions. Share option schemes have also been adopted for employees of our Group. In order to ensure that our Group's employees remain competitive in the industry, the Company has adopted training schemes for our employees managed by our human resources department.

PROSPECTS

Greatview focuses on the PRC and international markets. We intend to support our future growth through:

• Expanding our market share in the PRC through higher penetration of existing customers and growing our customer base;
• Further developing our international business;
• Broadening our product offering of packaging material and filling equipment, and improving after sales technical service;
• Increasing our capacities and sustainabilities; and
• Driving operational excellence.

12 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Other

Information

INTEREST AND SHORT POSITIONS OF THE DIRECTORS AND CHIEF EXECUTIVE IN SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY AND ITS ASSOCIATED CORPORATIONS

As at 30 June 2019, interests and short positions in the shares of the Company (the "Shares"), underlying Shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance ("SFO")) held by the directors of the Company (the "Directors") and chief executive of the Company which have been notified to the Company and The Stock Exchange of Hong Kong Limited (the "Stock Exchange") pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which were taken or deemed to have under such provisions of the SFO) or have been entered in the register maintained by the Company pursuant to Section 352 of the SFO, or otherwise have been notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") are as follows:

Interests and short position in the Shares and underlying Shares Company to confirm

					Percentage of
					total number of
					Shares in issue (%)
Name of Director/chief executive	No. of Shares	Notes	Capacity	Nature of interest	(Note 4)
Mr. HONG Gang	78,141,966	1	Interest of controlled corporation	Long position	5.84%
	2,673,000	2	Interest of controlled corporation	Long position	0.20%
Total long position	80,814,966				6.04%
Mr. BI Hua, Jeff	129,000,000	3	Founder of a discretionary trust	Long position	9.65%
Mr. CHANG Fuquan	4,500,000		Interest of controlled corporation	Long position	0.34%

Notes:

1. Phanron Holdings Limited ("Phanron") is wholly-owned by Mr. HONG Gang and he is therefore deemed to be interested in the 78,141,966 Shares held by Phanron.
2. Liwei Holdings (PTC) Limited ("Liwei") is 50% owned by each of Mr. HONG Gang and Mr. GAO Wei. Therefore, Mr. HONG Gang and Mr. GAO Wei are deemed to be interested in all of the underlying Shares to be issued pursuant to the options granted to Liwei under the pre-IPO share option scheme of the Company adopted by the Company on 15 November 2010 (the "Pre-IPO Share Option Scheme").
   On 22 November 2010, 22,000,000 options were granted to Liwei under the Pre-IPO Share Option Scheme. On 17 March 2011, 284 employees were granted (by way of transfer) by Liwei the rights to take up the 20,010,000 options granted to Liwei under the Pre-IPO Share Option Scheme upon vesting of their options. On 12 April 2013, 3,236,000 options which were previously granted by Liwei to the aforesaid employees but which lapsed prior to transfer to such employees were reallocated to 193 employees of the Group. On 1 September 2011, 1 June 2012, 1 June 2013 and 1 June 2014, 3,546,000 options, 4,616,000 options, 5,800,000 options and 5,365,000 options were vested respectively. Liwei is therefore deemed to be interested in 2,673,000 Shares in a long position.
3. Foxing Development Limited ("Foxing") is directly interested in 129,000,000 Shares. Foxing is wholly-owned by Hill Garden Limited ("Hill Garden") and is therefore deemed to be interested in the same 129,000,000 Shares. Mr. BI Hua, Jeff is the founder of the trust that wholly-owns Hill Garden. Mr. BI Hua, Jeff, therefore, is deemed to be interested in the same 129,000,000 Shares.
4. There were 1,337,019,000 Shares in issue as at 30 June 2019.

Greatview Aseptic Packaging Company Limited • Interim Report 2019 13

Other Information

Save as disclosed above, as at 30 June 2019, none of the Directors or chief executive of the Company had any interests or short positions in the Shares, underlying Shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which would be required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO, or which would be required, pursuant to Section 352 of the SFO, to be entered in the register referred to therein, or otherwise notified to the Company and the Stock Exchange pursuant to the Model Code.

INTERESTS AND SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS IN SHARES AND UNDERLYING SHARES OF THE COMPANY Company to Confirm

As at 30 June 2019, as far as is known to the Directors, the following persons (not being a Director or chief executive of the Company) had interests or short positions in the Shares or underlying Shares which fall to be disclosed to the Company under the provisions of Divisions

2 and 3 of Part XV of the SFO as recorded in the register required to be kept by the Company pursuant to Section 336 of the SFO:

Interests and short position in the Shares and underlying Shares

					Percentage of
					total number of
					Shares in issue (%)
Name of Substantial Shareholder	No. of Shares	Notes	Capacity	Nature of interest	(Note 7)
Phanron	78,141,966		Beneficial owner	Long position	5.84%
Madam XU Zhen	78,141,966	1	Interest of spouse	Long position	5.84%
	2,673,000	1	Interest of spouse	Long position	0.20%
	80,814,966				6.04%
Hill Garden	129,000,000	2	Interest of controlled corporation	Long position	9.65%
Foxing	129,000,000	2	Beneficial owner	Long position	9.65%
Madam BI Wei Li	129,000,000	3	Interest of spouse	Long position	9.65%
JSH Venture Holdings Limited	377,132,584	4	Beneficial owner	Long position	28.21%
Jardine Strategic Holdings Limited	377,132,584	4	Interest of controlled corporation	Long position	28.21%
Jardine Matheson Holdings Limited	377,132,584	4	Interest of controlled corporation	Long position	28.21%
Prudential plc	67,079,200	5	Interest of controlled corporation	Long position	5.01%
Janus Henderson Group PLC	66,707,000	6	Investment manager	Long position	4.99%

14 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Other Information

Notes:

1. Madam XU Zhen is interested in a long position of 80,814,966 Shares by virtue of her being the spouse of Mr. HONG Gang.
2. Foxing has a direct interest in 129,000,000 Shares. Hill Garden is interested in 100% of Foxing. Therefore, Hill Garden is deemed to be interested in 129,000,000 Shares. Mr. BI Hua, Jeff is the founder of the trust that wholly-owns Hill Garden.
3. Madam BI Wei Li is interested in a long position of 129,000,000 Shares by virtue of her being the spouse of Mr. BI Hua, Jeff.
4. JSH Venture Holdings Limited has a direct interest in 377,132,584 Shares. Jardine Strategic Holdings Limited is interested in 100% of JSH Venture Holdings Limited. JMH Investments Limited, which is interested in 83.63% of Jardine Strategic Holdings Limited, is wholly-owned by Jardine Matheson Holdings Limited. Therefore, Jardine Strategic Holdings Limited and Jardine Matheson Holdings Limited are deemed to be interested in 377,132,584 Shares.
5. The interest of Prudential plc was attributable on account through a number of its subsidiaries.
6. Janus Henderson Group PLC is a listed company on the New York Stock Exchange.
7. There were 1,337,019,000 Shares in issue as at 30 June 2019.

Save as disclosed above, and as at 30 June 2019, the Directors were not aware of any persons (who were not Directors or chief executive of the Company) who had an interest or short position in the Shares or underlying Shares which would fall to be disclosed under Divisions 2 and 3 of Part XV of the SFO, or which would be required, pursuant to Section 336 of the SFO, to be entered in the register referred to therein.

PURCHASE, SALE OR REDEMPTION OF THE LISTED SECURITIES OF THE COMPANY

During the six months ended 30 June 2019, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities.

SIGNIFICANT INVESTMENT, MATERIAL ACQUISITIONS AND DISPOSAL OF SUBSIDIARIES AND ASSOCIATED COMPANIES, FUTURE PLANS FOR MATERIAL INVESTMENT OR ACQUISITION OF CAPITAL ASSETS

On 15 January 2019, Shandong Greatview Aseptic a wholly-owned subsidiary of the Company, as a purchaser, and Qingdao Likang Packaging Company Limited*, as a vendor, entered into a sale and purchase framework agreement, pursuant to which the purchaser has conditionally agreed to purchase and the vendor has conditionally agreed to sell the entire equity interest in Likang (the "Acquisition"). On 27 March 2019 (after trading hours of the Stock Exchange), the purchaser and the vendor had entered into a formal agreement, and on 28 March 2019, the completion of the Acquisition had taken place at a consideration of RMB106.46 million (equivalent to approximately HK$123.62 million). Immediately after completion of the Acquisition, the target company became a subsidiary of the Company, and its financial statements would also be consolidated into the Group's consolidated financial statements. From completion of the acquisition mentioned thereon, the target company will be principally engaged in the manufacture of aseptic soft packaging for food and beverages based in Shandong province in the PRC. For further details, please refer to the announcements of the Company dated 15 January 2019 and 28 March 2019. Saved as disclosed above, during the six months ended 30 June 2019, there was no material acquisition and disposal of subsidiaries and associated companies by the Company. As at the date of this interim report, the Group has no plan to make any significant investment or acquisition of capital assets.

*  For identification purposes only

Greatview Aseptic Packaging Company Limited • Interim Report 2019 15

Other Information

CODE OF CONDUCT REGARDING DIRECTORS' SECURITIES TRANSACTIONS

The Company has adopted a code of conduct regarding Directors' securities transactions on terms no less exacting than the required standard set out in Appendix 10 - Model Code for Securities Transactions by Directors of Listed Issuers under the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules"). Specific enquiries have been made of all the Directors and the Directors have confirmed that they had complied with such code of conduct during the six months ended 30 June 2019.

SHARE OPTION SCHEMES

Pre-IPO Share Option Scheme

On 15 November 2010, the Pre-IPO Share Option Scheme was adopted by resolution of shareholders of the Company. The main purpose of the scheme is, among others, to provide incentives to the employees of the Group with regard to their services and employment. Pursuant to the Pre-IPO Share Option Scheme, for a consideration of HK$1.00, Liwei was granted options ("Pre-IPO Options") to subscribe for up to 22,000,000 Shares, and Liwei will grant (by way of transfer) the Pre-IPO Options to eligible participants who are (i) any individual who is an executive director or employee of our Group or any entity in which any member of our Group holds any equity interest in ("Invested Entity"); (ii) any non-executive director of any member of our Group or Invested Entity; (iii) any customer or supplier of goods or services of any member of our Group or Invested Entity; (iv) any person or entity that provides research, development or technological support to any member of our Group or Invested Entity; (v) any trustee or any company wholly-owned by any trustee, of a trust established for the benefit of the aforesaid persons; and (vi) any such other person as the board of the Company (the "Board") may consider appropriate. Prior approval from the Board is required for Liwei to grant the Pre-IPO Options. Such approval covers key terms of the Pre-IPO Options including eligibility, performance target and share subscription price. There is no minimum period for which an option must be held before it can be exercised under the Pre-IPO Share Option Scheme, provided that in granting options under the Pre- IPO Share Option Scheme, the Board can determine whether there is any minimum holding period before an option granted under the Pre-IPO Share Option Scheme can be exercised.

The exercise price per Share under the Pre-IPO Share Option Scheme is HK$4.30, being the price per Share at the global offering of the Shares in December 2010. No further option was granted under the Pre-IPO Share Option Scheme on or after the day of the listing of the Shares on the Stock Exchange on 9 December 2010 ("Listing Date"). All options granted under the Pre-IPO Share Option Scheme may be exercised during the option period after the Listing Date to the date falling 10 years from the Listing Date subject to conditions imposed by the Board to the respective employees. The total number of Shares issued and to be issued upon exercise of options granted to any grantee (including both exercised and outstanding options) under the Pre-IPO Share Option Scheme, in any 12-month period up to the date of grant shall not exceed 1% of the Shares in issue.

The scheme expired on the Listing Date.

16 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Other Information

Set out below are the details of the outstanding options granted under the Pre-IPO Share Option Scheme:

					Pre-IPO			Pre-IPO	Pre-IPO
					Options	Pre-IPO	Pre-IPO	Options	Options
					outstanding	Options	Options	lapsed/	outstanding
		Date of		Exercise	as at	vested	exercised	expired	as at
Name of		grant/	Exercise	price	1 January	during	during	during	30 June
Grantees	Notes	vesting	period	(HK$)	2019	the period	the period	the period	2019
Liwei	1	22/01/2010	09/12/2010-22/11/2020	4.30	2,673,000	-	-	-	2,673,000
Total					2,673,000	-	-	-	2,673,000

Notes:

1. The Board approved Liwei to grant (by way of transfer) the Pre-IPO Options on 17 March 2011. Pursuant to the Pre-IPO Share Option Scheme, 284 employees were granted the Pre-IPO Options to subscribe for up to 20,010,000 Shares on 17 March 2011. Such 20,010,000 Pre-IPO Options will only be transferred to the employees upon vesting. The Pre-IPO Options vested in four instalments on 1 September 2011, 1 June 2012, 1 June 2013 and 1 June 2014. On 12 April 2013, 3,236,000 Pre-IPO Options which were previously lapsed were taken back by Liwei and would be reallocated to 193 employees of the Group upon vesting. These Pre-IPO Options vested in two installments on 1 June 2013 and 1 June 2014, respectively.
2. During the six months ended 30 June 2019, no Pre-IPO Options were granted, lapsed, exercised or cancelled.
3. The total number of Shares subject to the Pre-IPO Share Option Scheme is 2,673,000 Shares, representing approximately 0.2% of the issued shares as at the date of this report.

Greatview Aseptic Packaging Company Limited • Interim Report 2019 17

Other Information

Share Option Scheme

Pursuant to the disclosure requirement under Listing Rules 17.09, particulars in relation to the share option scheme of the Company are shown below.

The Company adopted a share option scheme ("Share Option Scheme") with the purpose of providing an incentive for Qualified Participants (as defined below) to work with commitment towards enhancing the value of the Company and the Shares for the benefit of our shareholders, to compensate such employees for their contribution based on their individual performance and that of the Group and to retain and attract high calibre working partners whose contribution are or may be beneficial to the growth and development of the Group.

There is no minimum period for which an option must be held before it can be exercised under the Share Option Scheme, provide that in granting options under the Share Option Scheme, the Board can determine whether there is any minimum holding period, and whether there is any performance target which must be achieved, before an option granted under the Share Option Scheme can be exercised.

The Board will also determine the price per Share upon the exercise of an option according to the terms of the Share Option Scheme, provided that it shall be at the highest of: (i) the closing price of the Shares as stated in the Stock Exchange's daily quotations sheet on the date of grant of the options; (ii) the average of the closing prices of the Shares as stated in the Stock Exchange's daily quotations sheets for the five business days immediately preceding the date of grant of the options; and (iii) the nominal value of the Shares on the date of grant of the options.

The Board may from time to time grant options to (i) any executive Director, or employee (whether full time or part time) of our Company, any member of our Group or any entity in which any member of our Group holds an equity interest; (ii) any non-executive Director (including independent non-executive Directors), any non-executive director of any member of our Group or any Invested Entity; and (iii) any such other person as the Board may consider appropriate (collectively "Qualified Participants").

The Share Option Scheme shall be valid and effective for a period of ten years commencing on 15 November 2010. The amount payable by each grantee of options to the Company on acceptance of the offer for the grant of options is HK$1.00. An option may be exercised at any time during a period which shall not exceed ten years from the date of grant subject to the provisions of early termination under the Share Option Scheme.

The Company shall be entitled to issue options, provided that the total number of Shares which may be issued upon exercise of all outstanding options to be granted under the Share Option Scheme and any other share option scheme of the Company does not exceed 10% of the Shares in issue at the Listing Date, and therefore is currently capped at 133,360,000 Shares. The Company may at any time refresh such limit, subject to compliance with the Listing Rules, provided that the total number of Shares which may be issued upon exercise of all outstanding options granted and yet to be exercised under the Share Option Scheme and any other share option scheme of the Company does not exceed 30% of the Shares in issue from time to time. The total number of Shares issued and to be issued upon exercise of options granted to any grantee (including both exercised and outstanding options) under the Share Option Scheme, in any 12-month period up to the date of grant shall not exceed 1% of the Shares in issue.

No option has been granted pursuant to the Share Option Scheme prior to the date ended 30 June 2019. No option has been cancelled or lapsed during the six months ended 30 June 2019.

CORPORATE GOVERNANCE

The Company has applied the principles and complied with all code provisions and, where applicable, the recommended best practices of the Corporate Governance Code (the "CG Code") as set out in Appendix 14 to the Listing Rules throughout the six months ended 30 June 2019.

18 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Other Information

INTERIM DIVIDEND

The Board has resolved to declare an interim dividend of HK$0.13 per Share (30 June 2018: HK$0.13 per Share), amounting to a total of

approximately HK$173,812,000 (30 June 2018: approximately HK$173,812,000) for the six months ended 30 June 2019 which shall be payable on or about 16 October 2019 to shareholders whose names appear on the register of members of the Company (the "Register of Members") on 23 September 2019.

CLOSURE OF THE REGISTER OF MEMBERS

The Register of Members will be closed from 19 September 2019 to 23 September 2019, both days inclusive, during which period no transfer of Shares will be registered. In order to qualify for the interim dividend, all transfer documents accompanied by the relevant Share certificates must be lodged with the Company's branch share registrar in Hong Kong, Tricor Investor Services Limited at Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong, not later than 4:30 p.m. on 18 September 2019.

AUDIT COMMITTEE AND REVIEW OF FINANCIAL STATEMENTS

The audit committee of the Company (the "Audit Committee") comprises all the three independent non-executive Directors namely, Mr. LUETH Allen Warren (chairman of the Audit Committee), Mr. BEHRENS Ernst Hermann and Mr. ZHU Jia, and one non-executive Director, Mr. HSU David.

The Audit Committee has adopted the terms of reference which are in line with the CG Code. The principal duties of the Audit Committee include the review and supervision of the Group's financial reporting system and internal control procedures, review of the Group's financial information and review of the relationship with the external auditor of the Company. The Group's unaudited consolidated interim financial statements for the six months ended 30 June 2019 have been reviewed by the Audit Committee.

CHANGE OF INFORMATION IN RESPECT OF DIRECTORS

Mr. LIU Jun, has resigned as an executive Director and chief operating officer of the Company with effect from 31 January 2019. Please refer to the Company's announcement dated 31 January 2019 for further details.

Mr. CHANG Fuquan, has been appointed as an executive Director and resigned as one of the joint company secretaries of the Company with effect from 27 March 2019. Please refer to the Company's announcement dated 27 March 2019 for further details.

Mr. LUETH Allen Warren, an independent non-executive Director, has resigned to be a vice president of finance of Cardinal Health China (formerly owned by Zuellig Pharma) , a company focused on pharmaceutical distribution with effect from 30 April 2019.

EVENTS AFTER THE REPORTING PERIOD

The Board is not aware of any important events after the reporting period that requires disclosure.

On behalf of the Board

Mr. HONG Gang

Chairman

Beijing, the PRC, 29 August 2019

Greatview Aseptic Packaging Company Limited • Interim Report 2019 19

Condensed Consolidated

Income statement

For the six months ended 30 June 2019

		Six Months ended 30 June
		2019	2018
	Note	RMB'000	RMB'000
		(Unaudited)	(Unaudited)
Revenue	4	1,182,800	1,219,213
Cost of sales	5	(895,280)	(899,207)
Gross profit		287,520	320,006
Other income and other gains - net		62,127	38,418
Distribution expenses		(68,018)	(63,950)
Administrative expenses		(63,531)	(61,939)
Operating profit		218,098	232,535
Finance income	6	2,769	3,640
Finance costs	6	(3,604)	(406)
Finance income - net	6	(835)	3,234
Profit before income tax		217,263	235,769
Taxation	7	(45,505)	(60,689)
Profit for the period		171,758	175,080
Profit attributable to:
Equity holders of the Company		171,758	175,080
Earnings per share for profit attributable to equity holders of the Company
- Basic and diluted	8	RMB0.128	RMB0.131

20 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Condensed Consolidated Statement of

Comprehensive Income

For the six months ended 30 June 2019

	Six Months ended 30 June
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Profit for the period	171,758	175,080
Other comprehensive income:
Item that may be reclassified to profit or loss
Currency translation differences	(1,683)	(10,121)
Total comprehensive income for the period	170,075	164,959

Greatview Aseptic Packaging Company Limited • Interim Report 2019 21

Condensed Consolidated Statement of

Financial Position

As at 30 June 2019

		As at	As at
		30 June	31 December
		2019	2018
	Note	RMB'000	RMB'000
		(Unaudited)	(Audited)
ASSETS
Non-current assets
Property, plant and equipment	9	1,418,063	1,303,759
Land use rights	10	37,882	14,774
Intangible assets		68,133	71,112
Deferred income tax assets		25,328	21,786
Trade receivables	12	7,937	6,752
Prepayments	12	10,971	9,578
		1,568,314	1,427,761
Current assets
Inventories	11	635,369	571,728
Trade and notes receivables	12	454,454	413,361
Prepayments	12	30,561	24,034
Other receivables	12	37,522	36,295
Cash and bank equivalents		455,906	556,391
Restricted cash		213,534	190,890
		1,827,346	1,792,699
Total assets		3,395,660	3,220,460
EQUITY
Capital and reserves attributable to the equity holders of the Company
Share capital, share premium and capital reserve	13	748,282	748,282
Statutory reserve		238,706	285,581
Exchange reserve		(46,495)	(44,812)
Retained earnings		1,668,941	1,450,308
Total equity		2,609,434	2,439,359

22 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Condensed Consolidated Statement of

Financial Position

As at 30 June 2019

		As at	As at
		30 June	31 December
		2019	2018
	Note	RMB'000	RMB'000
		(Unaudited)	(Audited)
LIABILITIES
Non-current liabilities
Deferred government grants		82,437	86,353
Deferred income tax liabilities		9,561	3,700
Borrowings	15	25,405	29,427
		117,403	119,480
Current liabilities
Deferred government grants		7,624	7,412
Trade and other payables and accruals	16	529,433	477,389
Income tax liabilities		29,083	15,821
Borrowings	15	102,683	160,999
		668,823	661,621
Total liabilities		786,226	781,101
Total equity and liabilities		3,395,660	3,220,460
Net current assets		1,158,523	1,131,078
Total assets less current liabilities		2,726,837	2,558,839

Greatview Aseptic Packaging Company Limited • Interim Report 2019 23

Condensed Consolidated Statement of

Changes in Equity

For the six months ended 30 June 2019

		Attributable to equity owners (Unaudited)
	Share capital,
	share premium
	and	Statutory	Exchange	Other	Retained
	capital reserve	reserve	reserve	reserve	earnings	Total
	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000
	(Note 13)
As at 31 December 2017 (Audited)	798,282	263,550	(48,174)	2,537	1,368,838	2,385,033
Changes in accounting policies				(2,537)	(3,115)	(5,652)
As at 1 January 2018	798,282	263,550	(48,174)	-	1,365,723	2,379,381
Comprehensive income
Profit for the year					360,059	360,059
Other comprehensive income						-
Currency translation differences			3,362			3,362
Changes in fair value of financial assets				-		-
Shares repurchased						-
Adjust of prior year's profit & loss						-
Transfer to statutory reserve		22,031			(22,031)	-
Dividend	(50,000)				(253,443)	(303,443)
As at 31 December 2018 (Audited)	748,282	285,581	(44,812)	-	1,450,308	2,439,359
Comprehensive income
Profit for the year					171,758	171,758
Other comprehensive income						-
Currency translation differences			(1,683)			(1,683)
Changes in fair value of financial assets						-
Shares repurchased						-
Adjust of prior year's profit & loss						-
Transfer to statutory reserve		(46,875)			46,875	-
Dividend						-
As at 30 June 2019 (Unaudited)	748,282	238,706	(46,495)	-	1,668,941	2,609,434

24 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Condensed Consolidated Statement of

Cash Flow

For the six months ended 30 June 2019

	Six months ended 30 June
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Cash flows from operating activities
Cash generated from operations	202,585	293,042
Interest paid	(1,211)	(223)
Income tax paid	(29,924)	(51,683)
Net cash generated from operating activities	171,450	241,136
Cash flows from investing activities
Property, plant and equipment ("PPE")	(189,452)	(78,361)
Receipt of assets-related government grant	175	8,675
Proceeds from disposal of PPE	(73)	690
Acquisition of land use rights	(23,419)	-
Purchase of intangible assets	734	(289)
Purchase of available-for-sale financial assets	(325,000)	(249,617)
Disposals of available-for-sale financial assets	327,062	215,796
Interest received	2,769	3,640
Net cash used in investing activities	(207,204)	(99,466)
Cash flows from financing activities
Proceeds from issuance of shares
Proceeds from borrowings	14	21,153
Repayments of borrowings	(62,352)	(4,681)
Dividends paid to equity holders	-	-
Net cash (used in)/generated from financing activities	(62,338)	16,472
Net increase in cash and cash equivalents	(98,092)	158,142
Cash and cash equivalents at beginning of the period	556,391	355,788
Exchange losses on cash and cash equivalents	(2,393)	(183)
Cash and cash equivalents at end of the period	455,906	513,747

Greatview Aseptic Packaging Company Limited • Interim Report 2019 25

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

1 GENERAL INFORMATION

Greatview Aseptic Packaging Company Limited (the "Company") was incorporated in the Cayman Islands on 29 July 2010 as an exempted company with limited liability under the Companies Law (Cap. 22, Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The address of its registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands.

The Company is an investment holding company and together with its subsidiaries (the "Group") are principally engaged in the business of manufacturing, distribution and selling of paper packaging and filling machines to dairy and non-carbonated soft drink producers.

The Company's ordinary shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 9 December 2010.

The consolidated financial statements are presented in Renminbi ("RMB") and rounded to nearest thousand yuan, unless otherwise stated.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the period presented, unless otherwise stated.

2.1 Basis of preparation

The unaudited condensed consolidated financial statements for the six months ended 30 June 2019 have been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by International Accounting Standards Board ("IASB") 34 Interim Financial Reporting. The unaudited condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2018.

2.2 Principal accounting policies

The accounting policies used in the preparation of the condensed consolidated financial statements are consistent with those used in the financial statements contained in the 2018 annual report except for the adoption of the new standards, amendments or interpretations issued by the International Accounting Standard Board which are mandatory for the annual period beginning on or after 1 January 2019. The adoption of these standards, amendments or interpretations has no material effect on the Group's financial position or results of operations. The Group has not early adopted the new standards, amendments or interpretations that have been issued but are not yet effective. The directors of the Company (the "Directors") anticipate that the application of these standards, amendments or interpretations will have no material impact on the results and financial position of the Group.

26 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2.3 Fair value estimation

To provide an indication about the reliability of the inputs used in determining fair value, the Group classifies its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows as follows:

• The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the groups is the current bid price. These instruments are included in level 1.
• The fair value of financial instruments that are not traded in an active market (for example, over- the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
• If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Recurring fair value measurements
At 30 June 2019	Level 1	Level 2	Level 3	Total
Assets
Available-for-sale financial assets
- Wealth management products	-	-	-	-
Total assets	-	-	-	-

Greatview Aseptic Packaging Company Limited • Interim Report 2019 27

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

3 SEGMENT REPORT

Management has determined the operating segments based on the reports reviewed by the board of the Company (the "Board") which are used for making strategic decisions.

The operating segments are based on sales generated by geographical areas. The segment information provided to the Board is as follows:

	PRC	International	Total
	RMB'000	RMB'000	RMB'000
	(Unaudited)	(Unaudited)	(Unaudited)
For the six month ended 30 June 2019
Sales-Revenue from external customers	800,465	382,335	1,182,800
Cost	(578,657)	(316,623)	(895,280)
Segment result	221,808	65,712	287,520
For the six month ended 30 June 2018
Sales - Revenue from external customers	798,295	420,918	1,219,213
Cost	(544,755)	(354,452)	(899,207)
Segment result	253,540	66,466	320,006

28 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

3	SEGMENT REPORT (continued)
	A reconciliation of total segment results to total profits for the periods is provided as follows:
				Six months ended 30 June
				2019	2018
				RMB'000	RMB'000
				(Unaudited)	(Unaudited)
		Segment result for reportable segments		287,520	320,006
		Other income and other gains-net		62,127	38,418
		Distribution expenses		(68,018)	(63,950)
		Administrative expenses		(63,531)	(61,939)
		Operating profit		218,098	232,535
		Finance income		2,769	3,640
		Finance costs		(3,604)	(406)
		Finance income - net		(835)	3,234
		Profit before income tax		217,263	235,769
		Income tax expenses		(45,505)	(60,689)
		Profit for the period		171,758	175,080

Six months ended 30 June

20192018

RMB'000 RMB'000

(Unaudited) (Unaudited)

Revenue
Dairy	988,361	1,030,043
Non-carbonated soft drink ("NCSD")	194,439	189,170
	1,182,800	1,219,213

Greatview Aseptic Packaging Company Limited • Interim Report 2019 29

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

4 REVENUE AND OTHER INCOME AND OTHER GAINS - NET

		Six months ended 30 June
		2019	2018
		RMB'000	RMB'000
		(Unaudited)	(Unaudited)
Sales of products	1,182,800	1,219,213
Other income - net:
- Income from sales of scrap materials	8,993	7,714
- Subsidy income from government	22,682	16,643
- Filling machines	1,632	782
- Interest income from wealth management products measured
	at fair value through profit or loss	2,062	5,795
		35,369	30,934
- Net loss on disposal of assets	(27)	(56)
- Foreign exchange gain	1,679	4,472
- Others	25,106	3,068
		26,758	7,484

30 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

5	EXPENSES BY NATURE
			Six months ended 30 June
			2019	2018
			RMB'000	RMB'000
			(Unaudited)	(Unaudited)
		Raw materials and consumables used	705,169	687,892
		Changes in inventories of finished goods and work in progress	1,152	36,188
		Taxes and surcharges	6,933	8,210
		Provision for obsolescence on inventories	-	-
		Depreciation and amortisation charges	68,539	59,472
		- Depreciation of property, plant and equipment	65,977	57,275
		- Amortisation of intangible assets	2,251	2,028
		- Amortisation of land use right	311	169
		Provision for impairment of receivables and prepayment	-	1,691
		Employee benefit expenses	123,606	106,490
		Auditor's remuneration	1,374	1,292
		Auditors' remuneration for non-audit services	-	-
		Transportation expenses	38,699	38,199
		Repair and maintenance expenses	13,411	13,019
		Electricity and utilities	19,994	20,537
		Rental expenses	3,770	3,015
		Plating expenses	6,534	7,969
		Professional fees	3,852	7,520
		Travelling expenses	6,155	6,815
		Advertising and promotional expenses	10,068	7,949
		Other expenses	17,573	18,838
		Total cost of sales, distribution expenses and administrative expenses	1,026,829	1,025,096

Greatview Aseptic Packaging Company Limited • Interim Report 2019 31

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

6	FINANCE COSTS/INCOME - NET
		Six months ended 30 June
		2019	2018
		RMB'000	RMB'000
		(Unaudited)	(Unaudited)
	Interest expense - bank borrowings	(1,211)	(223)
	Exchange loss on cash and cash equivalents	(2,393)	(183)
	Finance costs	(3,604)	(406)
	Interest income - cash and cash equivalents	2,769	3,640
	Exchange gain on cash and cash equivalents	-	-
	Finance income	2,769	3,640
	Finance costs/income - net	(835)	3,234
7	INCOME TAX EXPENSE
		Six months ended 30 June
		2019	2018
		RMB'000	RMB'000
		(Unaudited)	(Unaudited)
	Current income tax:
	Enterprise income tax ("EIT")	43,186	58,302
	Deferred tax:
	Origination and reversal of temporary differences	2,319	2,387
	Taxation	45,505	60,689

The Group's subsidiaries established in the PRC except for Greatview Aseptic Packaging (Inner Mongolia) Co., Ltd. are subject to the PRC statutory income tax rate of 25% (2018: 25%) on the taxable income for the year. Hong Kong profits tax has been provided at rate of 16.5% for the current year (2018: 16.5%). The profits tax of Greatview Aseptic Packaging Manufacturing GmbH and Greatview Aseptic Packaging Service GmbH has been provided at rate of 30.8%. Greatview Aseptic Packaging Europe GmbH is subject to the Swiss statutory income tax rate of 11.35%. Greatview Aseptic Packaging (Inner Mongolia) Co., Ltd. is located in a special economic zone with an preferential statutory income tax rate of 15%, which is subject to annual approval from the local tax bureau. The local tax bureau has approved this preferential tax rate of 15% for this subsidiary in year 2019.

32 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

7	INCOME TAX EXPENSE (continued)
			Six months ended 30 June
			2019	2018
			RMB'000	RMB'000
			(Unaudited)	(Unaudited)
		Profit before tax	217,263	235,769
		Tax calculated at domestic tax rates applicable to profits in the respective countries	45,296	52,543
		Withholding tax on dividends	4,033	7,000
		Preferential tax treatment for subsidiaries	(6,133)	(7,946)
		Income not subject to tax	(32)	-
		Expenses not deductible for taxation purposes	2,979	72
		Tax losses for which no deferred tax asset was recognised	85	6,225
		Utilisation of previously unrecognised tax losses for which no deferred income tax
		was recognised	(757)	-
		Re-measurement of deferred tax - change in the PRC tax rate
		Others	34	2,795
		Tax charge	45,505	60,689
8	EARNINGS PER SHARE

Six Months ended 30 June

20192018

RMB'000 RMB'000

(Unaudited) (Unaudited)

Profit attributable to equity holders of the Company (RMB '000)	171,758	175,080
Weighted average number of ordinary shares in issue (thousands)	1,337,019	1,337,019
Basic earnings per share (RMB per share)	0.128	0.131

Basic and diluted earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the period.

Greatview Aseptic Packaging Company Limited • Interim Report 2019 33

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

9	PROPERTY, PLANT AND EQUIPMENT
				Vehicles
				and office	Construction	Leasehold
		Buildings	Machinery	equipment	in progress	improvement	Total
		RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000
	Cost
	As at 31 December 2017 (Audited)	505,260	1,401,176	57,003	132,975	1,739	2,098,153
	Additions	12,298	32	3,438	93,758	-	109,526
	Transfer upon completion	60,392	124,924	6,941	(192,257)	-	-
	Disposals	-	(1,230)	(3,507)	-	-	(4,737)
	Exchange adjustment	1,147	2,134	141	118	10	3,550
	As at 31 December 2018 (Audited)	579,097	1,527,036	64,016	34,594	1,749	2,206,492
	Additions	118,448	60,878	2,660	7,466	-	189,452
	Transfer upon completion	0	5,310	2,082	(7,392)	0	0
	Disposals	-	(24)	(717)	-	-	(741)
	Exchange adjustment	(1,051)	(1,507)	(104)	(4,096)	(7)	(6,765)
	As at 30 June 2019	696,494	1,591,693	67,937	30,572	1,742	2,388,438
	Accumulated depreciation
	As at 31 December 2017 (Audited)	(88,067)	(660,931)	(40,244)	-	(996)	(790,238)
	Current year depreciation	(18,376)	(88,261)	(8,338)	-	(163)	(115,138)
	Current year disposals	-	769	3,077	-	-	3,846
	Exchange adjustment	(220)	(886)	(91)	-	(6)	(1,203)
	As at 31 December 2018 (Audited)	(106,663)	(749,309)	(45,596)	-	(1,165)	(902,733)
	Current year depreciation	(12,397)	(51,633)	(5,041)	-	(81)	(69,152)
	Current year disposals	-	670	118	-	-	788
	Exchange adjustment	178	465	74	-	5	722
	As at 30 June 2019	(118,882)	(799,807)	(50,445)	-	(1,241)	(970,375)
	Net book value
	As at 31 December 2018 (Audited)	472,434	777,727	18,420	34,594	584	1,303,759
	As at 30 June 2019 (Unaudited)	577,612	791,886	17,492	30,572	501	1,418,063

34 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

10 LAND USE RIGHT

	As at	As at
	30 June	31 December
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Audited)
Cost
At the beginning of the period/year	16,725	16,725
Additions	23,419	-
Disposals	-	-
At the end of the period/year	40,144	16,725
Accumulated amortisation
At the beginning of the period/year	(1,951)	(1,613)
Current period/year amortisation	(311)	(338)
Disposals	-	-
At the end of the period/year	(2,262)	(1,951)
Net book amount	37,882	14,774

All of the Group's land use rights are located in the PRC with the leasehold period between 10 to 50 years.

Amortization of the Group's leasehold land has been charged to administrative expenses in the income statements.

11 INVENTORIES

		As at	As at
		30 June	31 December
		2019	2018
		RMB'000	RMB'000
		(Unaudited)	(Audited)
Raw materials	474,599	438,733
Work in progress	14,698	11,689
Finished goods	158,608	133,540
		647,905	583,962
Less: Provision for obsolescence
	Raw materials	(10,946)	(10,644)
	Finished goods	(1,590)	(1,590)
		635,369	571,728

The cost of inventories recognized as expense and included in cost of sales amounted to approximately RMB888,347,000 (30 June 2018: RMB890,997,000).

Greatview Aseptic Packaging Company Limited • Interim Report 2019 35

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

12 TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAYMENTS

	As at	As at
	30 June	31 December
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Audited)
Trade receivables	455,372	429,349
Less: Provision for impairment of trade receivables	(14,477)	(14,477)
Trade receivables - net	440,895	414,872
Note receivables	21,496	5,241
Less non-current portion: Trade receivables	(7,937)	(6,752)
	454,454	413,361
Other receivables
- staff advances and other payments for employees	14,396	6,641
- value added tax deductible	9,102	12,400
- value added tax receivable	13,591	14,322
- others	433	2,932
	37,522	36,295
Prepayments
- tariffs	303	3,611
- advances to suppliers	38,526	22,027
- others deferred expenses	3,486	8,757
- prepayment for land use rights	7,898	7,898
Less: Provision for impairment	(8,681)	(8,681)
Prepayments - net	41,532	33,612
Less non-current portion: prepayments	(10,971)	(9,578)
	30,561	24,034
	522,537	473,690

The credit terms granted to customers by the Group were usually 0 to 90 days during the period (31 December 2018: 0 to 90 days).

36 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

12 TRADE RECEIVABLES, OTHER RECEIVABLES AND PREPAYMENTS (continued)

The ageing analysis of the Group's trade receivables at each balance sheet date are as follows:

		As at	As at
		30 June	31 December
		2019	2018
		RMB'000	RMB'000
		(Unaudited)	(Audited)
	0-30 days	173,322	147,283
	31-90 days	151,115	169,364
	91-180 days	63,464	53,897
	181-365 days	41,055	30,255
	Over 365 days	26,416	28,550
		455,372	429,349
13 SHARE CAPITAL, SHARE PREMIUM AND CAPITAL RESERVE
		As at	As at
		30 June	31 December
		2019	2018
		RMB'000	RMB'000
		(Unaudited)	(Audited)
	Share capital	11,446	11,446
	Share premium	613,988	613,988
	Capital reserve	122,848	122,848
		748,282	748,282

Greatview Aseptic Packaging Company Limited • Interim Report 2019 37

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

13 SHARE CAPITAL, SHARE PREMIUM AND CAPITAL RESERVE (continued)

1. Share capital and share premium

Share capital

Authorised:

3,000,000,000 ordinary shares of HK$0.01 each

Issued and fully paid:

1,337,019,000 ordinary shares of HK$0.01 each

The total authorized number of ordinary shares is 3,000,000,000 shares (31 December 2018: 3,000,000,000 shares) with a par

value of HK$0.01 per share (31 December 2018: HK$0.01 per share). The number of ordinary shares issued is 1,337,019,000

(31 December 2018: 1,337,019,000) with nominal value of HK$0.01 per share (31 December 2018: HK$0.01 per share).

Share premium

	As at	As at
	30 June	31 December
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Audited)
As at 1 January	613,988	663,988
Share buyback	-	-
Share premium make up for loss
Dividends	-	(50,000)
As at the end of the period/year	613,988	613,988

38 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

13 SHARE CAPITAL, SHARE PREMIUM AND CAPITAL RESERVE (continued)

1. Capital reserve

			As at	As at
			30 June	31 December
			2019	2018
			RMB'000	RMB'000
			(Unaudited)	(Audited)
		As at 1 January	122,848	122,848
		Share options-value of employee services	-	-
		Capitalisation as issued shares as part of the reorganisation	-	-
			122,848	122,848
		Company
			As at	As at
			30 June	31 December
			2019	2018
			RMB'000	RMB'000
			(Unaudited)	(Audited)
		Issued shares as part of the reorganisation	-	-
14 SHARE BASED PAYMENTS
Movements in the number of the share options are as follows:
			As at	As at
			30 June	31 December
			2019	2018
			Options	Options
			(in thousand)	(in thousand)
	As at 1 January	-	-
	Lapsed
	Exercised	-	-
	Outstanding options granted to employees	-	-

Greatview Aseptic Packaging Company Limited • Interim Report 2019 39

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

15 BORROWINGS

	As at	As at
	30 June	31 December
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Audited)
Current
Secured bank borrowings - EUR	102,683	129,806
Unsecured bank borrowings - HK$	-	31,193
	102,683	160,999
Non-Current
Secured bank borrowing - EUR	25,405	29,427
	25,405	29,427
Total borrowing	128,088	190,426

The Group subsidiaries' secured bank borrowings of RMB87,987 dominated in EUR are secured by bank deposits of the Group of RMB53,000 (2018: RMB53,000). And the rest of the secured bank borrowings of RMB40,101 were guaranteed by the Company.

Payment schedule

The Group's borrowings as at each of balance sheet date are repayable as follows:

	As at	As at
	30 June	31 December
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Audited)
Within 1 year	102,683	160,999
Between 1 and 2 years	7,817	7,847
Between 2 and 5 years	17,588	21,580
	128,088	190,426

40 Greatview Aseptic Packaging Company Limited • Interim Report 2019

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

16 TRADE PAYABLES, OTHER PAYABLES AND ACCRUALS

		As at	As at
		30 June	31 December
		2019	2018
		RMB'000	RMB'000
		(Unaudited)	(Audited)
Trade payables		229,166	227,446
Notes payables		196,815	137,890
Advance from customers		27,945	17,406
Accrued expenses		52,955	54,481
Salary and welfare payable		18,752	20,518
Other tax payables		2,015	5,215
Other payables		1,785	14,433
		529,433	477,389
The ageing analysis of the Group's trade payables at each balance sheet date are as follows:
		As at	As at
		30 June	31 December
		2019	2018
		RMB'000	RMB'000
		(Unaudited)	(Audited)
Within 30 days		180,105	163,229
31-90 days		29,915	59,702
91-365 days		12,876	2,402
Over 365 days		6,270	2,113
		229,166	227,446

17 Dividend

The Board has resolved to declare an interim dividend of HK$0.13 per share (30 June 2018: HK$0.13 per share), amounting to a

total of approximately HK$173,812,000 (30 June 2018: HK$173,812,000) for the six months ended 30 June 2019.

Greatview Aseptic Packaging Company Limited • Interim Report 2019 41

Notes to the Condensed Consolidated

Financial Statements

For the six months ended 30 June 2019

18 COMMITMENTS

1. The Group's capital commitments at the balance sheet date are as follows:

	As at	As at
	30 June	31 December
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Audited)
Contracted but not provided for property, plant and equipment	7,385	6,373

1. The Group leases offices and warehouses under non-cancellable operating lease agreements. The lease terms are between 3 and 10 years.
   The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

	As at 30 June As at 31 December
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Audited)
Not later than one year	8,822	9,135
Later than one year and not later than five years	8,366	10,879
Later than five years	-	-
Total	17,188	20,014

19 RELATED-PARTY TRANSACTIONS

The following transactions took place between the Group and related parties at terms agreed between and parties:

Key management compensation

Key management includes Directors and other key management of the Group. The compensation paid or payable to key management for employee services is shown below:

	Six Months ended 30 June
	2019	2018
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Salaries and other short-term employees benefits	4,921	4,144
Social security cost	175	490
	5,096	4,634

20 APPROVAL OF THE PUBLICATION OF THE INTERIM FINANCIAL STATEMENTS

The unaudited condensed interim financial statements were approved and authorised for issue by the Board on 29 August 2019.

42 Greatview Aseptic Packaging Company Limited • Interim Report 2019