Minth : FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2018

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MINTH GROUP LIMITED ઽྼණྠϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 425)

FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2018

FINANCIAL HIGHLIGHTS

• • Revenue increased by approximately 10.3% to approximately RMB12,553.2 million (2017: approximately RMB11,384.5 million).

• • Gross profit rose by approximately 4.5% to approximately RMB4,023.0 million (2017: approximately RMB3,849.5 million).

• • Profit attributable to owners of the Company decreased by approximately 18.0% to approximately RMB1,660.6 million (2017: approximately RMB2,025.3 million).

• • Basic earnings per share decreased to approximately RMB1.451 (2017: approximately RMB1.782).

• • Proposed final dividend amounted to HK$0.661 per share (2017: HK$0.850).

• • Capital expenditure increased by approximately 4.0% to approximately RMB2,226.6 million (2017: approximately RMB2,140.8 million).

• • Consolidated net asset value increased by approximately 8.3% to approximately RMB13,428.7 million (2017: approximately RMB12,398.1 million).

The board (the "Board") of directors (the "Directors") of Minth Group Limited (the "Company") is pleased to announce the audited consolidated financial results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2018 (the "Review Year"), together with the comparative figures for the year ended 31 December 2017 reviewed by the audit committee of the Company ("Audit Committee") as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2018

2018	2017
NOTES	RMB'000	RMB'000
Revenue	3	12,553,202	11,384,495
Cost of sales	(8,530,179)	(7,535,027)
Gross profit	4,023,023	3,849,468
Investment income	108,881	88,845
Other income	179,284	263,965
Other gains and losses	4	(87,162)	146,643
Distribution and selling expenses	(519,675)	(480,788)
Administrative expenses	(941,098)	(851,590)
Research expenditure	(590,609)	(463,682)
Interest expenses	(137,507)	(94,915)
Share of (losses) profits of joint ventures	(6,410)	2,426
Share of profits of associates	17,347	27,924
Profit before tax	2,046,074	2,488,296
Income tax expense	5	(333,534)	(395,564)
Profit for the year	6	1,712,540	2,092,732
Other comprehensive income:
Item that will not be reclassified to profit or loss:
Gain on remeasurement of defined benefit
obligation	3,093	2,173

NOTE

2018 RMB'000

2017 RMB'000

Items that may be reclassified subsequently to profit or loss:

Exchange differences arising on translation of foreign operations

Fair value (loss) gain on: available-for-sale investments debt instruments measured at fair value through other comprehensive income Income tax relating to items that may be

55,154 51,487

- 66,615

(19)

-

reclassified subsequently - (9,992) Cumulative gain reclassified to profit or loss upon disposal of available-for-sale

investments, net of income tax - (85,580)Other comprehensive income for the year, net ofincome tax

58,228

24,703

Total comprehensive income for the year

Profit for the year attributable to:

Owners of the Company Non-controlling interestsTotal comprehensive income for the year attributable to:

Owners of the Company Non-controlling interests

1,770,768 2,117,435

1,660,636 2,025,254

51,904

67,478

1,712,540 2,092,732

1,714,470 2,049,162

56,298 1,770,768

68,273 2,117,435

Earnings per share

8

Basic

RMB1.451 RMB1.782

Diluted

RMB1.440 RMB1.761

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2018

2018	2017
NOTES	RMB'000	RMB'000
Non-current assets
Property, plant and equipment	7,933,121	6,246,257
Prepaid lease payments	745,629	745,002
Goodwill	97,505	83,228
Other intangible assets	63,281	49,978
Interests in joint ventures	98,720	105,768
Interests in associates	215,062	355,001
Derivative financial assets	-	30,507
Loan receivables	6,000	6,021
Deferred tax assets	149,208	104,962
Prepayment for acquisition of a subsidiary	-	69,195
Prepayment for acquisition of property, plant
and equipment	163,611	255,826
Contract assets	11	582,333	-
Contract costs	64,981	-
Plan assets	1,788	-
10,121,239	8,051,745
Current assets
Prepaid lease payments	19,352	18,911
Inventories	9	1,974,480	2,077,761
Loan receivables	2,000	20,816
Property under development	15,347	55,352
Trade and other receivables	10	4,207,395	4,017,330
Derivative financial assets	4,878	1,202
Debt instruments at fair value through other
comprehensive income	335,864	-
Pledged bank deposits	65,663	16,244
Bank balances and cash	4,521,870	3,849,601
11,146,849	10,057,217

2018	2017
NOTE	RMB'000	RMB'000
Current liabilities
Trade and other payables	12	3,291,632	2,890,107
Tax liabilities	136,218	133,237
Borrowings	4,091,130	2,493,574
Contract liabilities	72,685	-
Derivative financial liabilities	1,170	25,737
7,592,835	5,542,655
Net current assets	3,554,014	4,514,562
Total assets less current liabilities	13,675,253	12,566,307
Capital and reserves
Share capital	114,902	114,425
Share premium and reserves	13,045,512	11,998,709
Equity attributable to owners of the Company	13,160,414	12,113,134
Non-controlling interests	268,292	284,971
Total equity	13,428,706	12,398,105
Non-current liabilities
Deferred tax liabilities	67,405	48,265
Retirement benefit obligation	15,471	15,646
Derivative financial liabilities	759	2,879
Other long-term liability	162,912	101,412
246,547	168,202
13,675,253	12,566,307