Lai Sun Garment International : ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 JULY 2019

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.

(Stock Code: 191)

ANNOUNCEMENT OF FINAL RESULTS

FOR THE YEAR ENDED 31 JULY 2019

RESULTS

The board of directors (the "Board") of Lai Sun Garment (International) Limited (the "Company") is pleased to announce the consolidated results of the Company and its subsidiaries (the "Group") for the year ended

31 July 2019 together with the comparative figures of the last year as follows:

Consolidated Income Statement

For the year ended 31 July 2019

			2019		2018
	Notes		HK$'000		HK$'000
TURNOVER	4		6,609,847		1,804,039
Cost of sales		(4,203,126)	(	737,332)
Gross profit			2,406,721		1,066,707
Other revenue			331,907		199,061
Selling and marketing expenses		(	187,158)	(	16,974)
Administrative expenses		(1,029,027)	(	458,635)
Other operating expenses	5(b)	(1,153,180)	(	321,657)
Fair value gains on investment properties, net			700,710		2,715,257
Reversal of provision for tax indemnity			-		305
Loss on remeasurement of existing interest in
an associate upon business combination	14	(2,985,631)		-
Gain on bargain purchase on acquisition of subsidiaries	14		6,761,861		-
PROFIT FROM OPERATING ACTIVITIES	5(a)		4,846,203		3,184,064
Finance costs	6	(	513,586)	(	319,001)
Share of profits and losses of associates			31,353		100,769
Share of profits and losses of joint ventures			649,322		1,714,360
PROFIT BEFORE TAX			5,013,292		4,680,192
Tax	7	(	166,945)	(	57,567)
PROFIT FOR THE YEAR			4,846,347		4,622,625
Attributable to:
Owners of the Company			2,797,488		2,567,355
Non-controlling interests			2,048,859		2,055,270
			4,846,347		4,622,625
EARNINGS PER SHARE ATTRIBUTABLE TO
OWNERS OF THE COMPANY	9
Basic		HK$7.249	HK$6.686
Diluted		HK$7.176	HK$6.604
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Consolidated Statement of Comprehensive Income

For the year ended 31 July 2019

		2019		2018
		HK$'000		HK$'000
PROFIT FOR THE YEAR		4,846,347		4,622,625
OTHER COMPREHENSIVE INCOME/(EXPENSE)
Other comprehensive income/(expense) that may be reclassified to
profit or loss in subsequent periods:
Changes in fair values of available-for-sale financial assets		-		317,099
Changes in fair values of financial assets at fair
value through other comprehensive income		7,347		-
Exchange realignments	(	495,192)	(	12,975)
Share of other comprehensive income/(expense) of associates		9,258	(	48,010)
Share of other comprehensive income/(expense) of joint ventures		10,911	(	1,282)
	(	467,676)		254,832
Other comprehensive expense that will not be reclassified
to profit or loss in subsequent periods:
Changes in fair values of financial assets at fair
value through other comprehensive income	(	3,765)		-
Release of reserves upon remeasurement of existing interest
in an associate upon business combination		265,508		-
Release of reserve upon remeasurement of existing interest
in a joint venture upon business combination		-		374
Release of reserve upon winding-up and disposal of subsidiaries	(	10,636)		-
		254,872		374
OTHER COMPREHENSIVE (EXPENSE)/INCOME
FOR THE YEAR	(	216,569)		255,206
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		4,629,778		4,877,831
Attributable to:
Owners of the Company		2,801,510		2,698,449
Non-controlling interests		1,828,268		2,179,382
		4,629,778		4,877,831

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Consolidated Statement of Financial Position

As at 31 July 2019

		2019	2018
	Notes	HK$'000	HK$'000
NON-CURRENT ASSETS
Property, plant and equipment		10,604,613	5,554,164
Prepaid land lease payments		1,623,441	18,846
Investment properties		41,962,537	21,460,590
Properties under development		3,045,937	1,008,281
Film rights		24,608	-
Film products		75,022	-
Music catalogs		56,718	-
Goodwill		227,033	235,778
Other intangible assets		113,945	120,306
Investments in associates		423,002	3,681,408
Investments in joint ventures		7,411,355	7,272,859
Available-for-sale financial assets		-	2,413,160
Financial assets at fair value through other comprehensive income		2,136,331	-
Financial assets at fair value through profit or loss		688,656	-
Derivative financial instruments		53,784	6,171
Deposits, prepayments and other receivables		312,453	342,432
Deferred tax assets		39,371	34,534
Loans to related companies		-	650,000
Pledged and restricted bank balances and time deposits		106,343	95,797
Total non-current assets		68,905,149	42,894,326
CURRENT ASSETS
Properties under development		3,881,234	1,049,331
Completed properties for sale		2,277,466	264,824
Films under production and film investments		417,242	-
Inventories		58,443	31,973
Financial assets at fair value through profit or loss		230,273	-
Debtors	10	302,852	53,414
Deposits, prepayments and other receivables		1,089,899	501,010
Prepaid tax		42,031	-
Pledged and restricted bank balances and time deposits		1,498,767	351,634
Cash and cash equivalents		3,893,697	4,098,043
		13,691,904	6,350,229
Assets classified as held for sale	11	142,883	1,476,533
Total current assets		13,834,787	7,826,762
CURRENT LIABILITIES
Creditors, other payables and accruals	12	3,259,951	676,261
Deposits received, deferred income and contract liabilities	13	1,682,573	1,568,168
Tax payable		307,390	132,868
Bank borrowings		4,296,923	1,200,279
Other borrowings		41,440	-
Total current liabilities		9,588,277	3,577,576
NET CURRENT ASSETS		4,246,510	4,249,186
TOTAL ASSETS LESS CURRENT LIABILITIES		73,151,659	47,143,512

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Consolidated Statement of Financial Position (continued)

As at 31 July 2019

		2019	2018
	Notes	HK$'000	HK$'000
NON-CURRENT LIABILITIES
Bank borrowings		9,665,545	8,389,707
Other borrowings		670,100	395,630
Guaranteed notes		5,736,654	3,118,594
Deferred tax liabilities		5,535,762	242,085
Provision for tax indemnity		-	251,251
Other payables	12	87,410	119,266
Long-term deposits received	13	266,482	528,452
Total non-current liabilities		21,961,953	13,044,985
		51,189,706	34,098,527
EQUITY
Equity attributable to owners of the Company
Share capital		1,250,152	1,232,007
Reserves		21,362,184	18,605,336
		22,612,336	19,837,343
Non-controlling interests		28,577,370	14,261,184
		51,189,706	34,098,527

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PREPARATION
   The financial information has been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants, accounting principles generally accepted in Hong Kong and the Hong Kong Companies Ordinance. It has been prepared under the historical cost convention, except for completed investment properties, certain investment properties under construction, certain available-for-sale financial assets, financial assets at fair value through other comprehensive income, financial assets at fair value through profit or loss and derivative financial instruments, which have been measured at fair value. Non-current assets classified as held for sale are stated at the lower of their carrying amounts and fair values less costs to sell. The financial information is presented in Hong Kong dollars ("HK$") and all values are rounded to the nearest thousand except when otherwise indicated.
   The financial information relating to the years ended 31 July 2019 and 31 July 2018 included in this preliminary announcement of annual results for the year ended 31 July 2019 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 Companies Ordinance is as follows:
   The Company has delivered the financial statements for the year ended 31 July 2018 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 July 2019 in due course.
   Auditor's reports have been prepared on these 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.
2. CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES

The Group has adopted the following new and revised HKFRSs for the first time for the current year's financial statements.

Amendments to HKFRS 2	Classification and Measurement of Share-based Payment
	Transactions
Amendments to HKFRS 4	Applying HKFRS 9 Financial Instruments with
	HKFRS 4 Insurance Contracts
HKFRS 9	Financial Instruments
HKFRS 15	Revenue from Contracts with Customers
Amendments to HKFRS 15	Clarifications to HKFRS 15 Revenue from Contracts with
	Customers
Amendments to HKAS 40	Transfers of Investment Property
HK(IFRIC)-Int 22	Foreign Currency Transactions and Advance Consideration
Annual Improvements	Amendments to HKFRS 1 and HKAS 28
2014-2016 Cycle

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