Shougang Concord Century : FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 (in PDF)

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FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 HIGHLIGHTS For the year ended 31 December 2016 2015 Change

Operations Revenue	HK$'000 1,703,255	HK$'000 1,480,507	% +15.0
Gross profit	215,414	19,034	+1,031.7
E(L)BITDA (Note 1)	175,264	(187,719)	N/A
Adjusted EBITDA (Note 2)	171,487	4,923	+3,383.4
Profit (loss) for the year	10,103	(376,985)	N/A
Basic earnings (loss) per Share (HK cents)	0.53	(19.61)	N/A
Notes:

1. E(L)BITDA represents earnings (loss) before finance costs, income tax, depreciation and amortisation.

2. Adjusted EBITDA represents EBITDA before (i) allowance for inventories recognised of HK$1,024,000 (2015: HK$13,511,000); (ii) allowance for bad and doubtful debts reversed, net of HK$28,931,000 (2015: recognised, net of HK$4,511,000); (iii) bad debts recovered of HK$508,000 (2015: written off of HK$4,007,000); (iv) no impairment loss recognised in respect of property, plant and equipment (2015: HK$93,000,000); (v) no impairment loss recognised in respect of goodwill (2015: HK$41,672,000); (vi) increase in fair value of investment properties of HK$2,890,000 (2015: HK$3,253,000); and (vii) foreign exchange losses of HK$27,528,000 (2015: HK$39,194,000).

At 31 December

2016 HK$'000	2015 HK$'000	Change %
Financial position
Total assets	3,037,042	3,006,147	+1.0
Shareholders' equity	1,321,965	1,395,870	-5.3
Net asset value per Share (HK$)	0.687	0.726	-5.3

The Board announces that the audited consolidated results of the Group for the year ended 31 December 2016 and that final results were reviewed by the Audit Committee of the Company.

CONSOLIDATED STATEMENT OF PROFIT OR For the year ended 31 December 2016	LOSS
Notes	2016 HK$'000	2015 HK$'000
Revenue	3	1,703,255	1,480,507
Cost of sales	(1,487,841)	(1,461,473)
Gross profit	215,414	19,034
Investment and other income	5	1,694	1,546
Other gains and losses	6	4,491	(178,683)
Distribution and selling expenses	(49,877)	(45,602)
Administrative expenses	(71,899)	(73,803)
Research and development expenses	(47,998)	(47,687)
Finance costs	7	(45,888)	(52,767)
Profit (loss) before tax	5,937	(377,962)
Income tax credit	8	4,166	977
Profit (loss) for the year	9	10,103	(376,985)
Earnings (loss) per share Basic and diluted	11	HK0.53 cents	(HK19.61 cents)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2016

2016 2015

HK$'000 HK$'000

Profit (loss) for the year 10,103 (376,985) Other comprehensive (expense) income

Items that will not be reclassified to profit or loss

Exchange differences arising on translation into

equipment to investment property	887	-
Surplus on revaluation of properties	19,337	21,541
Recognition of deferred tax liability on revaluation
of properties	(3,626)	(3,859)
Other comprehensive expense for the year (net of tax)	(84,008)	(89,027)
Total comprehensive expense for the year	(73,905)	(466,012)

presentation currency (100,606) (106,709) Surplus on revaluation upon transfer of property, plant and

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 December 2016

Notes	2016 HK$'000	2015 HK$'000
Non-current assets Investment properties	12	58,675	50,727
Property, plant and equipment	12	1,169,092	1,357,961
Prepaid lease payments	141,636	159,417
Pledged deposit on loan from a related company	7,825	-
Club memberships Deposits paid for the acquisition of property, plant and equipment	714 336	738 956
1,378,278	1,569,799
Current assets Inventories	233,121	239,709
Trade receivables	14	563,162	463,061
Bills receivable	14	479,206	411,547
Prepayments, deposits and other receivables	67,249	103,951
Prepaid lease payments	7,671	8,191
Pledged bank deposit	1,006	-
Bank balances and cash	307,349	209,889
1,658,764	1,436,348
Current liabilities Trade and bills payables	15	440,608	334,033
Other payables and accruals	15	95,050	107,933
Tax payable	10,304	18,236
Loans from related companies	16	186,090	52,252
Bank borrowings - due within one year	17	900,552	866,867
1,632,604	1,379,321
Net current assets	26,160	57,027
Total assets less current liabilities	1,404,438	1,626,826