Parkson Retail : Quarterly Results / Inside Information

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PARKSON RETAIL GROUP LIMITED

百盛商業集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3368)

UNAUDITED QUARTERLY RESULTS

FOR THE FIRST QUARTER ENDED 31 MARCH 2019

The Board of Directors (the "Board") of Parkson Retail Group Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries together with a jointly- controlled entity and associates (hereinafter collectively referred to as the "Group") for the quarter ended 31 March 2019.

The unaudited quarterly results of the Group are released in conjunction with the announcement of the quarterly results of Parkson Holdings Berhad, the holding company of the Company in Malaysia pursuant to the Bursa Malaysia Main Board Listing Requirements. This announcement is made pursuant to paragraph 13.09 of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

HIGHLIGHTS

Same store sales ("SSS") for the quarter decreased by 2.7%.

Total operating revenues increased by 7.6% or RMB98.4 million to RMB1,389.5 million.

Merchandise gross margin slightly decreased by 0.1% to 15.6%.

Profit from operations for the quarter increased by 84.6% to RMB162.3 million.

Loss attributable to owners of the parent for the quarter was RMB0.1 million.

Without the impact of the International Financial Reporting Standard 16 "Leases" ("IFRS 16"), profit from operations would increase by 39.4% to RMB122.6 million. Profit attributable to owners of the parent would be RMB53.5 million.

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UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR

Quarter Ended 31 March

Gross Sales Proceeds (inclusive of value-added tax)

Revenues

Other operating revenues

Total operating revenues

Operating expenses

Purchases of goods and changes in inventories

20192018

Unaudited Unaudited

RMB'000 RMB'000

4,183,867 4,324,183

1,271,818 1,176,229

117,668114,852

1,389,486 1,291,081

(629,172) (520,579)

Staff costs	(167,326)	(163,212)
Depreciation and amortization	(203,424)	(65,674)
Rental expenses	(43,050)	(245,187)
Other operating expenses	(184,202)	(208,486)
Total operating expenses	(1,227,174)	(1,203,138)
Profit from operations	162,312	87,943
Finance income	39,105	36,369
Finance costs	(174,601)	(44,342)
Share of profit of :
A joint venture	4,885	4,879
Associates	3,842	2,508
Profit before tax	35,543	87,357
Income tax	(28,831)	(39,778)
Net profit for the period	6,712	47,579
Attributable to:
Owners of the parent	(110)	44,149
Non-controlling interests	6,822	3,430

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UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		As at	As at
		31 March	31 December
		2019		2018
		Unaudited	Audited
		RMB'000	RMB'000
NON-CURRENT ASSETS
Property, plant and equipment	3,852,344			3,894,419
Investment properties	30,042		30,293
Prepaid land lease payments	391,169		394,497
Intangible assets	1,796,257		1,797,675
Right-of-use assets	4,724,634			-
Net investments in the sublease	287,551		-
Investment in a joint venture	33,402		28,517
Investment in associates	38,634		34,792
Trade receivables	122,140		91,596
Other assets	150,443		132,657
Time deposits	1,433,146			1,433,142
Deferred tax assets	42,791		186,576
Total non-current assets		12,902,553			8,024,164

CURRENT ASSETS
Inventories	364,360	350,083
Trade receivables	229,100	290,183
Prepayment and other receivables	456,382	490,462
Net investments in the sublease	40,464	-
Financial assets at fair value through profit or loss	386,509	544,593
Investments in principal guaranteed deposits	441,250	664,780
Time deposits	738,582	683,863
Cash and cash equivalents	1,547,355		1,544,354
Total current assets	4,204,002		4,568,318

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	As at			As at
	31 March			31 December
	2019	2018
	Unaudited			Audited
	RMB'000			RMB'000
CURRENT LIABILITIES
Trade payables	(1,274,694)	(1,354,766)
Lease liabilities	(469,757)	-
Customers' deposits, other payables and accruals	(569,692)	(719,515)
Contract liabilities	(695,265)	(782,389)
Interest-bearing bank loans	(271,049)	(321,646)
Tax payable	(71,281)		(59,991)
Total current liabilities	(3,351,738)		(3,238,307)
NET CURRENT ASSETS	852,264	1,330,011
TOTAL ASSETS LESS CURRENT LIABILITIES
13,754,817	9,354,175
NON-CURRENT LIABILITIES
Interest-bearing bank loans	(3,644,379)	(3,721,241)
Lease liabilities	(4,543,543)	-
Long term payables	(130)	(727,970)
Deferred tax liabilities	(278,096)	(280,114)
Total non-current liabilities	(8,466,148)	(4,729,325)
NET ASSETS	5,288,669	4,624,850
EQUITY
Equity attributable to owners of the parent
Issued capital	55,477	55,477
Reserves	5,111,459	4,454,462
	5,166,936	4,509,939
Non-controlling interests	121,733	114,911
TOTAL EQUITY	5,288,669	4,624,850

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UNAUDITED CONSOLIDATED CASH FLOW STATEMENTS

Net cash inflow from operating activities (Note i)

Net cash inflow from investing activities

Net cash outflow from financing activities (Note ii)

Net changes in cash & cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

Time deposits

Financial assets at fair value through profit or loss

Investment in principal guaranteed deposits

Cash and cash equivalents and deposits with licensed banks as at the end of the period

For the three months ended 31 March 2019 Unaudited RMB'000

38,545

326,984

(362,528)

3,001

1,544,354

1,547,355

2,171,728

386,509

441,250

4,546,842

Notes:

1. Cash payments for low value assets, short term leases and variable lease payments were classified as operating activities.
2. Cash payments for the principal and interest portions of lease liabilities were classified as financing activities.

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