Lee & Man Paper Manufacturing : Interim Results Announcement for The Six Months Ended 30 June 2016

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.

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2314) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2016 FINANCIAL HIGHLIGHTS

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Revenue decreased by 3.8% to HK$8.37 billion as compared to the last corresponding

period.

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Net profit increased by 27.7% to HK$1.43 billion as compared to the last

corresponding period.

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Earnings per share was HK31.36 cents.

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Declared interim dividend of HK11.0 cents per share.

* For identification purposes only

INTERIM RESULTS

The board of directors of Lee & Man Paper Manufacturing Limited (the "Company") is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2016 together with the comparative figures as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2016

Notes	2016 (unaudited) HK$'000		2015 (unaudited) HK$'000
Revenue	3	8,368,758		8,695,428
Cost of sales	(6,424,371)		(6,901,649)
Gross profit	1,944,387		1,793,779
Other income Net gain from fair value changes of derivative financial instruments	300,820 9,507		122,422 25,332
Distribution and selling expenses	(113,790)		(165,689)
General and administrative expenses	(408,203)		(416,674)
Finance costs	4	(87,417)		(71,097)
Profit before tax	1,645,304		1,288,073
Income tax expense	5	(214,874)		(167,974)
Profit for the period Other comprehensive expense Item that may be reclassified subsequently	6	1,430,430		1,120,099
to profit or loss: Exchange differences arising on translation of
foreign operations	(857,523)		(528,340)
Total comprehensive income for the period	572,907		591,759
Dividends: - Dividend paid	7	432,950		348,750
- Interim dividend declared	501,226		391,527
HK cents	HK cents
Earnings per share	8	31.36	24.03

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2016

Notes	30 June 2016 (unaudited) HK$'000	31 December 2015 (audited) HK$'000
NON-CURRENT ASSETS Property, plant and equipment	9	24,283,311	23,351,149
Prepaid lease payments Deposits paid for acquisition of property, plant and equipment and land use rights	707,278 257,175	721,498 388,860
Interest in a joint venture Loan to a joint venture	- 95,953	- 95,953
25,343,717	24,557,460
CURRENT ASSETS Inventories	10	2,838,014	3,092,018
Prepaid lease payments	14,850	17,486
Trade and other receivables	11	4,828,301	4,869,211
Amounts due from related companies	23,627	19,879
Tax recoverable	-	72,430
Derivative financial instruments	38	1,532
Margin deposits	7,188	10,391
Bank balances and cash	1,424,301	2,958,656
9,136,319	11,041,603
CURRENT LIABILITIES Trade and other payables	12	2,853,931	3,042,968
Amounts due to related companies	5,434	3,852
Derivative financial instruments	3,656	14,824
Tax payable	111,804	136,881
Bank borrowings	4,312,208	5,250,362
7,287,033	8,448,887
NET CURRENT ASSETS	1,849,286	2,592,716
TOTAL ASSETS LESS CURRENT LIABILITIES	27,193,003	27,150,176

30 June 2016 (unaudited) HK$'000	31 December 2015 (audited) HK$'000
NON-CURRENT LIABILITIES Bank borrowings	8,947,585	9,012,017
Deferred tax liabilities	962,148	901,972
9,909,733	9,913,989
17,283,270	17,236,187
CAPITAL AND RESERVES Share capital	113,915	114,475
Reserves	17,169,355	17,121,712
17,283,270	17,236,187