Lai Sun Garment International : ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 JULY 2021

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.

ANNOUNCEMENT OF FINAL RESULTS

FOR THE YEAR ENDED 31 JULY 2021

RESULTS

The board of directors (the "Board") of Lai Sun Garment (International) Limited (the "Company") announces the consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 July 2021 together with the comparative figures of the last year as follows:

Consolidated Income Statement

For the year ended 31 July 2021

		2021		2020
	Notes	HK$'000	HK$'000
TURNOVER	4	6,089,785		5,324,153
Cost of sales		(4,688,838)	(3,665,399)
Gross profit		1,400,947		1,658,754
Other revenue and gains		576,624		548,595
Selling and marketing expenses		(272,041)	(187,720)
Administrative expenses		(913,170)	(999,008)
Other operating expenses		(1,541,568)	(1,684,648)
Write-down of completed properties for sale to		(18,241)
net realisable value		(587,099)
Fair value losses on investment properties, net		(486,242)	(2,015,027)
LOSS FROM OPERATING ACTIVITIES	5	(1,253,691)	(3,266,153)
Finance costs	6	(790,351)	(735,274)
Share of profits and losses of associates		19,783		(21,186)
Share of profits and losses of joint ventures		(473,004)	(423,021)
LOSS BEFORE TAX		(2,497,263)	(4,445,634)
Tax	7	(261,986)	82,874
LOSS FOR THE YEAR		(2,759,249)	(4,362,760)
Attributable to:
	(1,267,964)
Owners of the Company		(1,965,907)
Non-controlling interests		(1,491,285)	(2,396,853)
		(2,759,249)	(4,362,760)
LOSS PER SHARE ATTRIBUTABLE TO
OWNERS OF THE COMPANY	9			(Adjusted)
Basic and diluted		(HK$2.637)	(HK$4.138)

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Consolidated Statement of Comprehensive Income

For the year ended 31 July 2021

	2021			2020
	HK$'000	HK$'000
LOSS FOR THE YEAR	(2,759,249)	(4,362,760)
OTHER COMPREHENSIVE INCOME/(EXPENSE)
Other comprehensive income/(expense) that may be reclassified to
profit or loss in subsequent periods:
Financial assets at fair value through other comprehensive
income:	2,631
Changes in fair values			(1,618)
Reclassification adjustment for gain on disposal included in	-
the consolidated income statement	(2,641)
	2,631			(4,259)
Exchange realignments	2,030,052			(418,908)
Share of other comprehensive expense of associates	(2,672)	(1,876)
Share of other comprehensive expense of joint ventures	(1,225)	(63)
Release of exchange reserve upon deregistration of subsidiaries	974			-
	2,029,760			(425,106)
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	(39,415)
through other comprehensive income	(192,048)
OTHER COMPREHENSIVE INCOME/(EXPENSE)
1,990,345
FOR THE YEAR			(617,154)
TOTAL COMPREHENSIVE EXPENSE FOR THE YEAR	(768,904)	(4,979,914)
Attributable to:
(611,076)
Owners of the Company	(2,087,441)
Non-controlling interests	(157,828)	(2,892,473)
	(768,904)	(4,979,914)

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Consolidated Statement of Financial Position

As at 31 July 2021

		2021	2020
	Notes	HK$'000		HK$'000
NON-CURRENT ASSETS		7,710,358
Property, plant and equipment		7,922,772
Right-of-use assets		5,304,503	5,281,458
Investment properties		39,788,552	38,699,089
Film rights		15,109	7,055
Film and TV program products		54,838	65,121
Music catalogs		3,124	25,047
Goodwill		274,423	271,958
Other intangible assets		150,853	151,228
Investments in associates		290,278	402,972
Investments in joint ventures		7,124,459	6,763,682
Financial assets at fair value through		1,817,403
other comprehensive income		1,840,594
Financial assets at fair value through profit or loss		1,111,482	989,193
Derivative financial instruments		191	20,231
Debtors	10	526,687		-
Deposits, prepayments, other receivables and other assets		277,784	336,968
Deferred tax assets		2,147	4,259
Pledged and restricted bank balances and time deposits		71,483		88,393
Total non-current assets		64,523,674	62,870,020
CURRENT ASSETS
	2,077,261
Properties under development		3,824,360
Completed properties for sale		7,374,096	5,983,249
Films and TV programs under production and		235,844
film investments		313,384
Inventories		48,851	56,547
Financial assets at fair value through profit or loss		183,290	153,251
Debtors	10	349,351	311,688
Deposits, prepayments, other receivables and other assets		960,501	910,519
Prepaid tax		53,100	42,231
Pledged and restricted bank balances and time deposits		4,959,423	1,906,399
Cash and cash equivalents		8,738,747		4,187,778
		24,980,464	17,689,406
Assets classified as held for sale		5,273	48,067
Total current assets		24,985,737	17,737,473
CURRENT LIABILITIES
	3,513,230
Creditors, other payables and accruals	11	3,462,177
Temporary receipt	12	2,637,580		-
Deposits received, deferred income and contract liabilities	13	1,446,335	1,106,385
Derivative financial instruments		-	5,852
Lease liabilities		281,997	279,984
Tax payable		551,009	446,370
Bank borrowings		3,193,624	8,441,293
Other borrowings		41,159	41,050
Total current liabilities		11,664,934	13,783,111
NET CURRENT ASSETS		13,320,803	3,954,362
TOTAL ASSETS LESS CURRENT LIABILITIES		77,844,477	66,824,382

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Consolidated Statement of Financial Position (continued)

As at 31 July 2021

		2021	2020
	Notes	HK$'000			HK$'000
NON-CURRENT LIABILITIES		1,103,276
Lease liabilities		1,093,350
Bank borrowings		15,980,762	8,101,635
Other borrowings		707,350	685,943
Guaranteed notes		7,692,495	5,717,879
Derivative financial instruments		8,965			-
Deferred tax liabilities		5,322,668	5,078,720
Other payables and accruals	11	1,001,169			-
Long-term deposits received	13	216,253	206,328
Total non-current liabilities		32,032,938	20,883,855
		45,811,539	45,940,527
EQUITY
Equity attributable to owners of the Company		1,297,237
Share capital		1,297,237
Reserves		20,429,648	20,574,363
		21,726,885	21,871,600
Non-controlling interests		24,084,654	24,068,927
		45,811,539	45,940,527

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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, 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 2021 and 31 July 2020 included in this preliminary announcement of annual results for the year ended 31 July 2021 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 2020 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 2021 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 Conceptual Framework for Financial Reporting 2018 (the "Conceptual Framework") and the following revised HKFRSs for the first time for the current year's financial statements.

Amendments to HKFRS 3	Definition of a Business
Amendments to HKFRS 9,	Interest Rate Benchmark Reform
HKAS 39 and HKFRS 7
Amendment to HKFRS 16	Covid-19-Related Rent Concessions beyond 30 June 2021
Amendments to HKAS 1	Definition of Material
and HKAS 8

The Group has early adopted the amendment to HKFRS 16 in the current year's financial statements. Except for the amendment to HKFRS 16, the adoption of the Conceptual Framework and the revised HKFRSs has had no significant financial effect on the financial performance or financial position of the Group.

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