Lee & Man Paper Manufacturing : Final Results Announcement for The Year Ended 31 December 2015

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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 liabilities whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2314)

FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2015

FINANCIAL HIGHLIGHTS

•

Revenue for the year of HK$17,616 million (2014: HK$17,099 million)

•

Net profit for the year increased by 22.4% to HK$2,332 million (2014: HK$1,904

million)

•

Net profit per ton of product about HK$429 for the year

•

Earnings per share increased from HK40.69 cents to HK50.43 cents for the year

•

Stable payout ratio of about 35%, with proposed final dividend of HK9.5 cents per

share

* For identification purposes only

FINAL RESULTS

The Board of Directors (the "Board") of Lee & Man Paper Manufacturing Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2015 as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2015

Notes	2015 HK$'000		2014 HK$'000
Revenue	3	17,615,641		17,099,134
Cost of sales	(14,037,356)		(14,027,532)
Gross profit	3,578,285		3,071,602
Other income	4	427,821		426,397
Net gain (loss) from fair value changes of derivative
financial instruments	13,244		(35,463)
Share of loss of a joint venture	(152)		(51)
Distribution and selling expenses	(317,659)		(330,030)
General and administrative expenses	(796,517)		(708,885)
Finance costs	5	(154,860)		(214,640)
Profit before tax	2,750,162		2,208,930
Income tax expense	6	(418,487)		(304,536)
Profit for the year	7	2,331,675		1,904,394
Other comprehensive expense
Item that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operations	(1,422,056)		(3,201)
Total comprehensive income for the year	909,619		1,901,193
Profit for the year attributable to:
Owners of the Company	2,331,675		1,904,394
Total comprehensive income attributable to:
Owners of the Company	909,619	1,901,193
HK cents	HK cents
Earnings per share	9	50.43	40.69

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 December 2015

Notes	2015 HK$'000	2014 HK$'000
NON-CURRENT ASSETS Property, plant and equipment	23,351,149	22,464,660
Prepaid lease payments Deposits paid for acquisition of property, plant and equipment and land use rights	721,498 388,860	763,789 134,958
Interest in a joint venture	-	1,799
Loan to a joint venture	95,953	91,690
Tax recoverable	-	62,988
24,557,460	23,519,884
CURRENT ASSETS Inventories	3,092,018	3,257,891
Prepaid lease payments	17,486	17,602
Trade and other receivables	10	4,869,211	5,891,427
Amounts due from related companies	19,879	17,404
Tax recoverable	72,430	-
Derivative financial instruments	1,532	45
Margin deposits	10,391	-
Bank balances and cash	2,958,656	2,032,567
11,041,603	11,216,936
CURRENT LIABILITIES Trade and other payables	11	3,042,968	3,262,465
Amounts due to related companies	3,852	3,736
Amounts due to substantial shareholders	-	240,568
Derivative financial instruments	14,824	22,775
Tax payable	136,881	89,689
Bank borrowings	5,250,362	6,698,110
8,448,887	10,317,343
NET CURRENT ASSETS	2,592,716	899,593
TOTAL ASSETS LESS CURRENT LIABILITIES	27,150,176	24,419,477

2015 HK$'000	2014 HK$'000
NON-CURRENT LIABILITIES Bank borrowings	9,012,017	6,162,679
Deferred tax liabilities	901,972	779,814
9,913,989	6,942,493
17,236,187	17,476,984
CAPITAL AND RESERVES Share capital	114,475	116,750
Reserves	17,121,712	17,360,234
17,236,187	17,476,984