IPE : INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021

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IPE GROUP LIMITED

國際精密集團有限公司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 929)

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2021

The Board of Directors (the "Board") of IPE Group Limited (the "Company") would like to announce the unaudited condensed consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2021, together with the comparative figures for the previous corresponding period as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
		Six months ended 30 June
		2021		2020
		(Unaudited)	(Unaudited)
	Notes	HK$'000	HK$'000
Revenue	4&5	518,272		338,286
Cost of sales		(388,597)	(268,257)
Gross profit		129,675		70,029
Other income	5	21,748	16,434
Distribution costs		(10,925)	(9,727)
Administrative expense and other expense		(93,438)	(67,021)
Profit from operations		47,060		9,715
Finance costs	6	(2,938)	(4,387)
Share of losses of an associate		(896)	(1,806)
Profit before taxation	7	43,226		3,522
Income tax	8	(11,188)	(1,336)
Profit for the period		32,038		2,186
Attributable to:
	30,201
Equity shareholders of the Company			2,645
Non-controlling interests		1,837		(459)
Profit for the period		32,038		2,186
Earnings per share	9
HK2.9 cents
Basic		HK0.3 cent
Diluted		HK2.9 cents	HK0.3 cent
Interim dividend per share	10	Nil	Nil

• For identification purposes only

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Six months ended 30 June
		2021		2020
		(Unaudited)	(Unaudited)
		HK$'000	HK$'000
Profit for the period	32,038		2,186
Other comprehensive income:
Exchange difference on translation of foreign operation	8,495		(61,889)
Total comprehensive income for the period	40,533		(59,703)
Attributable to:
Equity shareholders of the Company	38,996		(59,241)
Non-controlling interests	1,537		(462)
Total comprehensive income for the period	40,533		(59,703)

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CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		At	At
		30 June	31 December
		2021		2020
		(Unaudited)	(Audited)
	Notes	HK$'000	HK$'000
NON-CURRENT ASSETS
Investment properties and other property,
plant and equipment	11	844,842		792,729
Interest in an associate		-	896
Goodwill		9,072	-
Intangible assets		9,738	-
Deposits for purchase of non-current assets		9,069	11,261
Deferred tax assets		13,615	13,621
		886,336		818,507
CURRENT ASSETS
Inventories	12	272,899		219,173
Trade receivables	13	280,962	272,461
Prepayments, deposit and other receivables		73,801	40,898
Financial assets		2,657	-
Pledged and restricted cash	14	2,519	3,672
Cash and bank balances	14	833,781	924,246
Total current assets		1,466,619		1,460,450
CURRENT LIABILITIES
Trade payables	15	120,566		91,495
Other payables and accruals		70,252	61,229
Lease liabilities		1,161	1,123
Contract liabilities		-	624
Tax payables		11,663	19,325
Bank loans		177,613	53,769
Total current liabilities		381,255		227,565

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	At	At
	30 June	31 December
	2021		2020
	(Unaudited)	(Audited)
Notes	HK$'000	HK$'000
NET CURRENT ASSETS	1,085,364		1,232,885
TOTAL ASSETS LESS CURRENT LIABILITIES	1,971,700		2,051,392
NON-CURRENT LIABILITIES
Bank loans	-	150,862
Lease liabilities	273	366
Deferred tax liabilities	21,686	17,395
Other payables	10,423	2,475
Total non-current liabilities	32,382		171,098
Net assets	1,939,318		1,880,294
CAPITAL AND RESERVES
Equity attributable to owners of the Company
Share capital	105,225		105,225
Reserves	1,816,882	1,775,720
	1,922,107		1,880,945
Non-controlling interests	17,211		(651)
Total equity	1,939,318		1,880,294

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

		2021			2020
		(Unaudited)	(Unaudited)
	Note	HK$'000	HK$'000
Net cash generated from operating activities		72,168			111,422
INVESTING ACTIVITIES
Net cash paid for acquisition of a subsidiary		(80,989)	-
Purchases of items of property,
plant and equipment		(51,822)	(19,954)
Proceeds from disposal of items of property, plant and
equipment		482		1,573
Purchases of financial assets		(46,416)	(4,413)
Proceeds from disposal of financial assets		45,329		5,782
Dividend income received		1,176		-
Net cash used in investing activities		(132,240)	(17,012)
FINANCING ACTIVITIES
Repayment of bank loans		(27,018)	(27,018)
Principal payments of lease liabilities		(55)	(547)
Capital injection from non-controlling interests		13,183		-
Dividend paid to non-controlling interests		(741)	-
Net cash used in financing activities		(14,631)	(27,565)
NET (DECREASE)/INCREASE IN CASH AND
CASH EQUIVALENTS		(74,703)	66,845
Cash and cash equivalents at beginning of period		924,246		847,093
Effect of foreign exchange rate changes		(15,762)	(58,369)
CASH AND CASH EQUIVALENTS
AT END OF PERIOD		833,781			855,569
ANALYSIS OF BALANCES OF CASH AND
CASH EQUIVALENTS
Cash and bank balance		786,525			714,020
Non-pledged time deposits with
original maturity of less than three months when
acquired		47,256		141,549
Cash and cash equivalents	14	833,781			855,569
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