Silk Road Logistics : Announcements and Notices - ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

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Silk Road Logistics Holdings Limited ക༩يݴછٰϞࠢʮ̡

(Incorporated in Bermuda with limited liability)

(Stock code: 988)

ANNUAL RESULTS FOR THE YEAR ENDED

31 DECEMBER 2021

The board (the "Board") of directors (the "Directors", each a "Director") announces the audited consolidated results of Silk Road Logistics Holdings Limited (the "Company") and its subsidiaries (collectively the "Group") for the year ended 31 December 2021 together with the comparative audited figures for the year ended 31 December 2020 as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND

OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2021

2021	2020
Notes	HK$'000	HK$'000
REVENUE	4	13,647	34,609
Cost of sales and services	(8,069)	(32,912)
Gross profit	5,578	1,697
Other income and gains	4	263	3,213
Administrative expenses	(34,454)	(38,536)
Gain on deemed acquisition of an associate	-	1,651
Loss on disposal of oil properties	-	(1,573)
Impairment of goodwill	(55,960)	(32,778)
Impairment of interests in associates	(172,846)	(274,898)
Impairment of prepayment	(11,082)	(2,800)
Share of profit/(loss) of associates	15,891	(3,663)
Finance costs	5	(51,199)	(51,498)
LOSS BEFORE TAX	6	(303,809)	(399,185)
Income tax credit	7	1,130	17,011
LOSS FOR THE YEAR	(302,679)	(382,174)

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)

For the year ended 31 December 2021

2021	2020
Notes	HK$'000	HK$'000
LOSS FOR THE YEAR	(302,679)	(382,174)
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently
to profit or loss:
Exchange differences on translation of
foreign operations	7,193	14,404
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR	(295,486)	(367,770)
Loss for the year attributable to:
Owners of the Company	(295,153)	(376,908)
Non-controlling interests	(7,526)	(5,266)
(302,679)	(382,174)
Total comprehensive income for the year attributable to:
Owners of the Company	(290,620)	(367,418)
Non-controlling interests	(4,866)	(352)
(295,486)	(367,770)
2021	2020
HK$	HK$
(restated)
LOSS PER SHARE	8
- Basic	(0.48)	(0.66)
- Diluted	N/A	N/A

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2021

2021	2020
Notes	HK$'000	HK$'000
NON-CURRENT ASSETS
Property, plant and equipment	171,076	176,855
Right-of-use assets	73,294	73,482
Interests in associates	-	214,954
Goodwill	-	55,960
Oil properties	65,679	65,363
Total non-current assets	310,049	586,614
CURRENT ASSETS
Inventories	689	408
Trade receivables	9	-	54
Prepayments, deposits and other receivables	151,207	155,589
Income tax recoverable	4,548	4,696
Cash and cash equivalents	974	3,781
157,418	164,528
Assets classified as held for sale	10	57,954	-
Total current assets	215,372	164,528
CURRENT LIABILITIES
Trade payables	11	87,691	84,824
Other payables and accruals	132,763	124,669
Other borrowings	488,356	443,665
Promissory notes payable	69,197	60,929
Obligations under finance lease	33	44
Total current liabilities	778,040	714,131
NET CURRENT LIABILITIES	(562,668)	(549,603)
TOTAL ASSETS LESS CURRENT LIABILITIES	(252,619)	37,011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

As at 31 December 2021

2021	2020
Note	HK$'000	HK$'000
NON-CURRENT LIABILITIES
Other borrowings	138	295
Obligations under finance lease	-	33
Lease liabilities	13,419	13,498
Assets retirement obligations	5,485	5,207
Deferred tax liabilities	14,836	14,929
Total non-current liabilities	33,878	33,962
Net (liabilities)/assets	(286,497)	3,049
EQUITY
Share capital	12	64,179	59,893
Reserves	(271,403)	(140,983)
Equity attributable to owners of the Company	(207,224)	(81,090)
Non-controlling interests	(79,273)	84,139
Total equity	(286,497)	3,049

Notes:

• 1. GENERAL

  The Company was incorporated in Bermuda as an exempted company with limited liability under the Companies Act 1981 of Bermuda (as amended). Its shares are listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

  The registered office of the Company is located at Clarendon House, 2 Church Street, Hamilton HM11, Bermuda and its principal place of business is situated at Room 1702, 17/F, COFCO Tower, 262 Gloucester Road, Causeway Bay, Hong Kong.

  The Company is an investment holding company. The principal activities of the Company's subsidiaries are trading of commodities, exploration and production of oil and provision of oil well services, and provision of logistics and warehousing services.

• 2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

  These consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"), accounting principles generally accepted in Hong Kong. In addition, the consolidated financial statements include the applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance. The consolidated financial statements have been prepared under the historical cost convention. These consolidated financial statements are presented in Hong Kong dollars and all values are rounded to the nearest thousand except when otherwise indicated.

  Notwithstanding that the current liabilities of the Group at 31 December 2021 exceed the Group's current assets at that date by HK$562,668,000, which includes the other borrowings and the promissory note payable amounted to HK$488,356,000 and HK$69,197,000 respectively; the total liabilities of the Group at 31 December 2021 exceed the Group's total assets at that date by approximately HK$286,497,000; and that the Group incurred net loss amounted to HK$302,679,000 for the year ended 31 December 2021, the Directors of the Company consider it appropriate for the preparation of the consolidated financial statements on a going concern basis after taking into account of the following circumstances and measures to be implemented:

  Management of the Group will closely monitor the financial position of the Group and the Directors of the Company will make every effort (a) to secure funds as necessary to finance the business operations of the Group for the foreseeable future; and (b) to negotiate with the lender of the other borrowings and the holder of the promissory note payable for the extension of repayments of the other borrowings and the promissory note to a date when the Group has adequate working capital to serve the repayments.

  Should the Group be unable to continue to operate as a going concern, adjustments would have to be made to restate the values of assets to their estimated recoverable amounts, to provide further liabilities that might arise and to reclassify non-current assets and non-current liabilities as current assets and current liabilities respectively. The effects of these potential adjustments have not been reflected in the consolidated financial statements.