Hi Sun Technology China : RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016 (in PDF)

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HI SUN TECHNOLOGY (CHINA) LIMITED

高 陽 科 技 （ 中 國 ） 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

(Stock Code: 818) RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016 FINANCIAL HIGHLIGHTS

2016	2015	Change
HK$'000	HK$'000	+/(-)
RESULTS
Revenue	1,921,237	1,376,846	+40%
Gross profit	592,695	477,584	+24%
Segmental EBITDA
(before unallocated items)	297,073	135,476	+119%
Operating profit	132,323	6,493	+1,938%
Profit for the year	312,656	192,692	+62%
Profit attributable to:
-Equity holders of the Company	283,964	183,486	+55%
-Non-controlling interests	28,692	9,206	+212%
312,656	192,692
HK$ per share	HK$ per share	Change +/(-)
Earnings per share for profit attributable to equity holders of the Company:
Basic	0.102	0.066	+55%
Diluted	0.100	0.064	+56%

* For identification purposes only

As at 31 December
2016	2015	Change
HK$'000	HK$'000	+/(-)
HIGHLIGHTS OF FINANCIAL POSITION
Total equity	3,585,667	3,337,944	+7%
Net current assets	1,424,346	1,532,973	-7%
Total assets	5,499,041	4,576,515	+20%
HK$ per share	HK$ per share	Change +/(-)
Net assets per share	1.291	1.202	+7%

The board of directors (the "Board") of Hi Sun Technology (China) Limited (the "Company") hereby announces the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2016 together with the comparative figures for the year ended 31 December 2015. The annual results have been reviewed by the Audit Committee of the Company (the "Audit Committee").

FINANCIAL REVIEW LIQUIDITY AND FINANCIAL RESOURCES

As at 31 December 2016, the Group reported total assets of HK$5,499.0 million (2015: HK$4,576.5 million), which were financed by total liabilities of HK$1,913.3 million (2015: HK$1,238.6 million) and equity of HK$3,585.7 million (2015: HK$3,337.9 million). The net asset value was HK$3,585.7 million (2015: HK$3,337.9 million). Net assets per share amounted to HK$1.291 as at 31 December 2016 as compared to HK$1.202 per share as at 31 December 2015.

As at 31 December 2016, the Group had cash and cash equivalents of HK$2,726.7 million (2015: HK$2,292.3 million) and no short term borrowings (2015: Nil). The net cash position as at 31 December 2016 was HK$2,726.7 million as compared to HK$2,292.3 million as at 31 December 2015. The gearing ratio (defined as total borrowings divided by shareholders' equity) was zero (2015: same). The gearing ratio is considered healthy and suitable for the continuing growth of the Group's business.

CAPITAL STRUCTURE AND DETAILS OF CHARGES

As at 31 December 2016, the Group had no bank borrowings (2015: Nil) and had banking facilities of approximately HK$17.8 million (2015: HK$21.2 million). As at 31 December 2016, the banking facilities were secured by the leasehold land and buildings of a subsidiary of the Company, with a net carrying amount of HK$2.9 million (2015: HK$3.2 million) and HK$9.3 million (2015: HK$11.0 million), respectively.

Approximately HK$1,977.7 million, HK$468.6 million, HK$273.8 million, HK$0.2 million and HK$6.4 million of the Group's cash balances were denominated in Renminbi, Hong Kong Dollar, US Dollar, Japanese Yen, and Macanese Pataca ("MOP") respectively as at 31 December 2016.

Approximately HK$1,403.0 million, HK$522.7 million, HK$271.9 million, HK$87.9 million and HK$6.8 million of the Group's cash balances were denominated in Renminbi, Hong Kong Dollar, US Dollar, Japanese Yen and MOP respectively as at 31 December 2015.

SIGNIFICANT INVESTMENT

Save as disclosed in this announcement, the Group had no significant investment held as at 31 December 2016.

MATERIAL ACQUISITION AND DISPOSAL OF SUBSIDIARIES OR ASSOCIATED COMPANIES

Save as disclosed in this announcement, the Group did not have any material acquisition or disposal of subsidiaries or associated companies during the year ended 31 December 2016.

FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL ASSETS

Save as disclosed in this announcement, there was no specific plan for material investments or capital assets as at 31 December 2016.

EXCHANGE RATES EXPOSURE

The Group derives its revenue, makes purchases, incurs expenses and has its assets and liabilities denominated mainly in US Dollars, Renminbi, Hong Kong Dollars and Japanese Yen. Currently, the Group has not entered into any agreements or purchased instruments to hedge the Group's exchange rate risks. Any material fluctuation in the exchange rates of Hong Kong Dollars, Renminbi or Japanese Yen may have an impact on the operating results of the Group.

CONTINGENT LIABILITIES

In 2015, the Company entered into a performance guarantee agreement with a customer (the "Performance Guarantee Agreement"). Pursuant to the Performance Guarantee Agreement, the Company agreed to provide the customer with a guarantee in relation to the due and punctual performance of a service project by a subsidiary of the Group with a surety of not more than HK$60,000,000 and to indemnity the customer against any third-party claim of intellectual property right infringement resulting from the acts of the said subsidiary. As at 31 December 2016, the Company does not recognise any liability in relation to the Performance Guarantee Agreement as the Directors of the Company consider the possibility of the Company recognising forthcoming liability thereunder highly improbable.

Save as disclosed above, the Group had no material contingent liability as at 31 December 2016 and 2015.