Sinomax : ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

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Sinomax Group Limited

盛 諾 集 團 有 限 公 司

(Incorporated under the laws of the Cayman Islands with limited liability)

(Stock Code: 1418) ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017

PERFORMANCE HIGHLIGHTS

Revenue for the six months ended 30 June 2017 increased by approximately HK$413.0 million or 26.9% to approximately HK$1,946.8 million, as compared to approximately HK$1,533.8 million for the corresponding period last year.

Gross profit decreased by approximately HK$23.5 million or 5.6% to approximately HK$394.9 million for the six months ended 30 June 2017, as compared to approximately HK$418.4 million for the corresponding period last year.

Profit for the six months ended 30 June 2017 decreased by approximately HK$31.9 million or 76.3% to approximately HK$9.9 million, as compared to approximately HK$41.8 million for the corresponding period last year.

INTERIM RESULTS

The board (the "Board") of directors (the "Directors") of Sinomax Group Limited (the "Company") is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2017, together with the comparative figures for the corresponding period in 2016, as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2017

For the six months
ended 30 June
NOTES	2017	2016
HK$'000	HK$'000
(unaudited)	(unaudited)
Revenue	3	1,946,759	1,533,836
Cost of sales	(1,551,906)	(1,115,419)
Gross profit	394,853	418,417
Other income	22,266	16,566
Other gains and losses	(6,220)	1,524
Selling and distribution costs	(231,134)	(216,439)
Administrative expenses	(107,155)	(93,223)
Share of loss of an associate	-	(8,304)
Net loss on derecognition of an associate	-	(13,524)
Finance costs	(10,635)	(5,111)
Other expenses	(49,707)	(42,613)
Profit before taxation	12,268	57,293
Income tax expenses	4	(2,397)	(15,494)
Profit for the period	5	9,871	41,799
Other comprehensive income (expenses) that may be reclassified subsequently to profit or loss
Exchange difference arising on translation of foreign operations	29,682	(14,236)
Total comprehensive income for the period	39,553	27,563
Profit for the period attributable to:
Owners of the Company	10,685	39,909
Non-controlling interests	(814)	1,890
9,871	41,799
Total comprehensive income for the period attributable to:
Owners of the Company	40,806	26,658
Non-controlling interests	(1,253)	905
39,553	27,563
Earnings per share	7
- Basic	HK0.61 cent	HK2.28 cents
- Diluted	HK0.61 cent	HK2.28 cents

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2017

At	At
30 June	31 December
NOTES	2017	2016
HK$'000	HK$'000
(unaudited)	(audited)
NON-CURRENT ASSETS
Property, plant and equipment	675,855	572,917
Investment properties	83,060	82,274
Prepaid lease payments	65,589	64,469
Deposits paid for acquisition of property, plant and equipment	33,243	50,781
Goodwill	61,658	60,926
Intangible assets	140,406	143,545
Rental deposits	24,044	23,952
Deferred tax assets	32,221	22,673
1,116,076	1,021,537
CURRENT ASSETS
Inventories	598,700	475,941
Prepaid lease payments	1,655	1,607
Trade and other receivables	8	921,730	870,760
Bills receivables	9	17,246	11,714
Pledged bank deposits	4,999	5,053
Fixed bank deposits	19,223	18,623
Bank balances and cash	163,329	131,848
1,726,882	1,515,546

At	At
30 June	31 December
NOTES	2017	2016
HK$'000	HK$'000
(unaudited)	(audited)
CURRENT LIABILITIES
Trade and other payables	10	724,766	617,331
Bills payables	11	75,509	85,433
Dividend payable	17,500	-
Taxation payable	16,836	24,000
Bank borrowings	493,635	391,593
1,328,246	1,118,357
NET CURRENT ASSETS	398,636	397,189
TOTAL ASSETS LESS CURRENT LIABILITIES	1,514,712	1,418,726
NON-CURRENT LIABILITIES
Bank borrowings	170,344	85,303
Deferred tax liabilities	117,323	119,327
287,667	204,630
NET ASSETS	1,227,045	1,214,096
CAPITAL AND RESERVES
Share capital	175,000	175,000
Reserves	910,390	884,290
Equity attributable to owners of the Company	1,085,390	1,059,290
Non-controlling interests	141,655	154,806
TOTAL EQUITY	1,227,045	1,214,096