New World Department Store China : INTERIM RESULTS ANNOUNCEMENT 2016/2017

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(incorporated in the Cayman Islands with limited liability)

(Stock Code: 825) INTERIM RESULTS ANNOUNCEMENT 2016/2017 HIGHLIGHTS

Same-store sales(1)was flat which indicates a significant improvement compared to -8.5% in the same period of Previous Year.

Revenue for the period was HK$1,781.5 million compared with HK$1,934.3 million in the same period of Previous Year.

Operating profit for the period increased by approximately 13.5% to HK$156.2 million from HK$137.7 million in the same period of Previous Year.

Profit for the period significantly increased by approximately 54.6% to HK$92.5 million from HK$59.8 million in the same period of Previous Year.

Earnings per share increased by 25.0% to HK$0.05 from the same period of Previous Year.

(1) Same-store sales calculation reflects the gross sales proceeds and the adjustment of the operational strategy for the stores in operation.

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016

The board of directors (the "Board" or "Directors") of New World Department Store China Limited (the "Company") is pleased to announce the unaudited interim results of the Company and its subsidiaries (together, the "Group") for the six months ended 31 December 2016 as follows:

CONDENSED CONSOLIDATED INCOME STATEMENT Unaudited Unaudited Six months ended 31 December

Note	2016 HK$'000	2015 HK$'000
Revenue	2	1,781,451	1,934,290
Other income	3	76,426	86,673
Other gains, net	4	1,025	7,477
Changes in fair value of investment properties	(10,471)	(5,676)
Purchases of and changes in inventories, net	(397,842)	(390,247)
Employee benefit expense	(312,397)	(323,849)
Depreciation and amortisation	(131,187)	(155,570)
Operating lease rental expense	(534,782)	(603,207)
Other operating expenses, net	5	(316,033)	(412,233)
Operating profit	156,190	137,658
Finance income	10,050	41,833
Finance costs	(7,037)	(23,140)
Finance income, net	3,013	18,693
159,203	156,351
Share of result of associated companies	279	-
Profit before income tax	159,482	156,351
Income tax expense	6	(67,024)	(96,541)
Profit for the period	92,458	59,810
Attributable to: Shareholders of the Company	92,782	59,810
Non-controlling interests	(324)	-
92,458	59,810
Earnings per share for profit attributable to

shareholders of the Company during

the period (expressed in HK$ per share)

- Basic and diluted 8 0.05 0.04

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Unaudited Unaudited Six months ended 31 December 2016 2015

HK$'000 HK$'000

Profit for the period 92,458 59,810

Other comprehensive income

Items that will not be reclassified to profit or loss

Fair value loss on financial asset at fair value

through other comprehensive income (16,591) - Revaluation of properties upon reclassification

from property, plant and equipment and land use rights to investment properties	1,775	-
- Deferred income tax thereof	(444)	-
(15,260)	-
Items that may be reclassified subsequently to profit and loss Fair value loss on available-for-sale financial asset	-	(7,267)
Translation differences	(264,343)	(261,525)
(264,343)	(268,792)
Other comprehensive income for the period, net of tax	(279,603)	(268,792)
Total comprehensive income for the period	(187,145)	(208,982)
Attributable to: Shareholders of the Company	(186,823)	(208,982)
Non-controlling interests	(322)	-
(187,145)	(208,982)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Note	Unaudited As at 31 December 2016 HK$'000	Audited As at 30 June 2016 HK$'000
Assets Non-current assets Property, plant and equipment	1,321,686	1,482,758
Investment properties	4,381,642	4,567,522
Land use rights	620,975	671,759
Intangible assets	1,670,494	1,748,725
Interests in associated companies	890	361
Other non-current assets	9	601,063	616,336
Prepayments, deposits and other receivables Financial asset at fair value through other comprehensive income	296,679 17,702	332,816 -
Available-for-sale financial asset	-	35,893
Financial asset at fair value through profit or loss	8,694	9,040
Deferred income tax assets	141,218	150,866
9,061,043	9,616,076
Current assets Inventories	229,272	231,117
Debtors	10	152,168	114,183
Prepayments, deposits and other receivables	595,496	542,733
Amounts due from fellow subsidiaries	8,102	2,842
Amounts due from related companies	1	2,210
Financial asset at fair value through profit or loss	1,170	-
Fixed deposits	21,108	39,269
Cash and cash equivalents	1,856,475	1,163,409
2,863,792	2,095,763
Total assets	11,924,835	11,711,839
Equity and liabilities Equity Share capital	168,615	168,615
Reserves	5,557,403	5,744,224
Shareholders' funds	5,726,018	5,912,839
Non-controlling interests	(52)	(4)
Total equity	5,725,966	5,912,835