Lai Sun Garment International : ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 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 INTERIM RESULTS

FOR THE SIX MONTHS ENDED 31 JANUARY 2019

RESULTS

The board of directors (the "Board") of Lai Sun Garment (International) Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 31 January 2019 together with the comparative figures of the last corresponding period as follows:

Condensed Consolidated Income Statement

For the six months ended 31 January 2019

		Six months		Six months
			ended		ended	Year ended
		31 January		31 January			31 July
			2019		2018		2018
	Notes	(Unaudited)		(Unaudited)			(Audited)
			HK$'000		HK$'000		HK$'000
TURNOVER	3		3,815,851		917,890		1,804,039
Cost of sales		(2,384,529)		(	374,257)	(	737,332)
Gross profit			1,431,322		543,633		1,066,707
Other revenue			124,159		79,479		199,061
Selling and marketing expenses		(	114,826)	(	10,901)	(	16,974)
Administrative expenses		(	506,634)	(	213,371)	(	458,635)
Other operating expenses		(	553,672)	(	161,036)	(	321,657)
Fair value gains on investment properties, net			362,855		655,144		2,715,257
Reversal of provision for tax indemnity			-		-		305
PROFIT FROM OPERATING ACTIVITIES	4		743,204		892,948		3,184,064
Finance costs	5	(	259,781)	(	183,740)	(	319,001)
Share of profits and losses of associates		(	601)	(	6,881)		100,769
Share of profits and losses of joint ventures			744,642		612,585		1,714,360
Loss on remeasurement of existing interest in
an associate upon business combination	11	(2,985,631)			-		-
Gain on bargain purchase on acquisition of subsidiaries	11		6,761,861		-		-
PROFIT BEFORE TAX			5,003,694	1,314,912			4,680,192
Tax	6	(	98,769)	(	44,704)	(	57,567)
PROFIT FOR THE PERIOD/YEAR			4,904,925	1,270,208			4,622,625
		_________		_________		_________
Attributable to:
Owners of the Company			2,914,638		674,672		2,567,355
Non-controlling interests			1,990,287		595,536		2,055,270
			4,904,925	1,270,208			4,622,625
		_________		_________		_________
EARNINGS PER SHARE ATTRIBUTABLE TO
OWNERS OF THE COMPANY	7
Basic		HK$7.568		HK$1.762		HK$6.686
		__________		_________		_________
Diluted		HK$7.492		HK$1.738		HK$6.604
		__________		_________		_________
-	1 -

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 31 January 2019

	Six months		Six months
		ended		ended	Year ended
	31 January		31 January			31 July
		2019		2018		2018
	(Unaudited)		(Unaudited)		(Audited)
		HK$'000		HK$'000		HK$'000
PROFIT FOR THE PERIOD/YEAR		4,904,925		1,270,208	4,622,625
OTHER COMPREHENSIVE INCOME
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		-		165,713		317,099
Changes in fair values of debt investments at fair
value through other comprehensive income		1,577		-		-
Exchange realignments		397,511		114,518	(	12,975)
Share of other comprehensive income/(expense) of associates		29		267,994	(	48,010)
Share of other comprehensive income/(expense) of joint ventures		10,329		962	(	1,282)
Cash flow hedges:
Effective portion of changes in fair value of
hedging instruments arising during the period		-	(	5,728)		-
Reclassification adjustments for exchange loss included
in the condensed consolidated income statement		-	(	3,535)		-
	_________		_________		_________
		409,446		539,924		254,832
	_________		_________		_________
Other comprehensive expense that will not be
reclassified to profit or loss in subsequent periods:
Changes in fair values of equity investments at fair
value through other comprehensive income	(	32,384)		-		-
	_________		_________		_________
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 reserves upon deregistration and disposal of
subsidiaries	(	10,621)		-		-
		254,887		-		374
	_________		_________		_________
OTHER COMPREHENSIVE INCOME FOR THE
PERIOD/YEAR		631,949		539,924		255,206
	_________		_________		_________
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD/YEAR		5,536,874		1,810,132	4,877,831
	_________		_________		_________
	_________		_________		_________
Attributable to:
Owners of the Company		3,158,895		961,821	2,698,449
Non-controlling interests		2,377,979		848,311	2,179,382
	_________		_________		_________
		5,536,874		1,810,132	4,877,831
	_________		_________		_________
	_________		_________		_________

- 2 -

Condensed Consolidated Statement of Financial Position

As at 31 January 2019

		31 January	31 July
		2019	2018
	Notes	(Unaudited)	(Audited)
		HK$'000	HK$'000
NON-CURRENT ASSETS
Property, plant and equipment		10,246,962	5,554,164
Prepaid land lease payments		1,652,206	18,846
Investment properties		41,800,521	21,460,590
Properties under development for sale		2,704,088	1,008,281
Film rights		9,475	-
Film products		100,376	-
Music catalogs		61,472	-
Goodwill		234,202	235,778
Other intangible assets		118,110	120,306
Interests in associates		276,413	3,681,408
Interests in joint ventures		8,127,536	7,272,859
Available-for-sale financial assets		-	2,413,160
Financial assets at fair value through profit or loss		62,798	-
Equity investments at fair value through other
comprehensive income		2,636,319	-
Debt investments at fair value through other
comprehensive income		212,474	-
Derivative financial instruments		3,205	6,171
Deposits paid and other receivables		281,063	342,432
Deferred tax assets		43,824	34,534
Loans to related companies		-	650,000
Pledged bank balances and time deposits		111,900	95,797
		__________	__________
Total non-current assets		68,682,944	42,894,326
		__________	__________
CURRENT ASSETS
Properties under development for sale		2,822,285	1,049,331
Completed properties for sale		2,779,012	264,824
Films under production		493,075	-
Inventories		56,278	31,973
Financial assets at fair value through profit or loss		123,050	-
Debtors, deposits paid and other receivables	8	1,838,967	554,424
Prepaid tax		38,584	-
Pledged and restricted bank balances and time deposits		1,442,261	351,634
Cash and cash equivalents		4,340,497	4,098,043
		__________	__________
		13,934,009	6,350,229
Asset classified as held for sale		1,478,044	1,476,533
		__________	__________
Total current assets		15,412,053	7,826,762
		__________	__________

- 3 -

Condensed Consolidated Statement of Financial Position (continued)

As at 31 January 2019

		31 January	31 July
		2019	2018
	Notes	(Unaudited)	(Audited)
		HK$'000	HK$'000
CURRENT LIABILITIES
Creditors, deposits received, contract liabilities
and accruals	9	5,124,556	2,244,429
Tax payable		262,545	132,868
Bank borrowings		5,124,224	1,200,279
Loans from a joint venture		277,648	-
Other borrowings		41,525	-
		__________	__________
Total current liabilities		10,830,498	3,577,576
		__________	__________
NET CURRENT ASSETS		4,581,555	4,249,186
		__________	__________
TOTAL ASSETS LESS CURRENT LIABILITIES		73,264,499	47,143,512
		__________	__________
NON-CURRENT LIABILITIES
Bank borrowings		8,682,076	8,389,707
Other borrowings		663,060	395,630
Guaranteed notes		5,733,626	3,118,594
Derivative financial instruments		2,982	-
Deferred tax liabilities		5,756,936	242,085
Provision for tax indemnity		-	251,251
Long term deposits received, contract liabilities
and other payables	9	358,896	647,718
		__________	__________
Total non-current liabilities		21,197,576	13,044,985
		__________	__________
		52,066,923	34,098,527
		__________	__________
		__________	__________
EQUITY
Equity attributable to owners of the Company
Share capital		1,232,007	1,232,007
Reserves		21,732,128	18,605,336
		__________	__________
		22,964,135	19,837,343
Non-controlling interests		29,102,788	14,261,184
		__________	__________
		52,066,923	34,098,527
		__________	__________
		__________	__________

- 4 -

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1.BASIS OF PREPARATION

The unaudited condensed consolidated interim financial statements of the Group for the six months ended 31 January 2019 have been prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") and with Hong Kong Accounting Standard ("HKAS") 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants. In addition, to provide further information, management has included the consolidated income statement and the consolidated statement of comprehensive income for the year ended 31 July 2018 and the related notes as extracted from the previous annual financial statements.

The financial information relating to the year ended 31 July 2018 that is included in the unaudited condensed consolidated interim financial statements of the Group for the six months ended 31 January 2019 as comparative information does not constitute the Company's statutory annual consolidated financial statements for that year but is derived from those financial statements. Further information relating to those statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong 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 Hong Kong Companies Ordinance.

The Company's auditor has reported on those financial statements. The auditor's report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections 406(2), 407(2) or (3) of the Hong Kong Companies Ordinance.

The condensed consolidated interim financial statements have not been audited by the Company's auditor but have been reviewed by the Company's audit committee.

2.SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies and basis of presentation used in the preparation of these interim financial statements are the same as those used in the Group's audited consolidated financial statements for the year ended 31 July 2018, except for (i) the adoption of the new and revised Hong Kong Financial Reporting Standards ("HKFRSs"), which are effective for the Group's financial year beginning on 1 August 2018, and (ii) the adoption of accounting policies of certain assets, revenue and expenses of eSun Holdings Limited ("eSun") which was acquired during the current period as set out in note 11 to the condensed consolidated interim financial statements.

2.1New and revised HKFRSs

The Group has adopted the following new and revised HKFRSs for the first time for the current period's unaudited 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
	- 5 -