SPT Energy : INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017 2017-08-24

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SPT Energy Group Inc. 華油能源集團有限公司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1251) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017 INTERIM RESULTS HIGHLIGHTS

For the six months ended 30 June 2017, the Group's revenue was RMB418.8 million, representing an increase of RMB18.2 million, or 4.5%, from RMB400.6 million for the comparative period of last year.

Loss attributable to equity owners of the Company for the six months ended 30 June 2017 was RMB35.0 million, representing a decrease of RMB19.2 million, or 35.4%, from RMB54.2 million for the comparative period of last year.

No interim dividend for the six months ended 30 June 2017 was proposed to the shareholders of the Company (for the six months ended 30 June 2016: nil) by the Board.

The board (the "Board") of directors (the "Directors") of SPT Energy Group Inc. (the "Company") announces the unaudited interim condensed consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2017, together with the comparative figures for the same period of the previous year as follows:

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT Six months ended 30 June

Note	2017 RMB'000 Unaudited	2016 RMB'000 Unaudited
Revenue	418,755	400,622
Other gains/(losses), net	35,042	(9,008)
Operating costs Material costs	(104,580)	(71,298)
Employee benefit expenses	(165,517)	(177,216)
Operating lease expenses	(34,848)	(26,285)
Transportation costs	(6,193)	(9,411)
Depreciation and amortisation	(45,897)	(55,982)
Technical service expenses	(31,643)	(30,228)
Impairment loss of assets	(17,671)	(10,762)
Others	(56,363)	(54,424)
(462,712)	(435,606)
Operating loss	(8,915)	(43,992)
Finance income	40	273
Finance costs	(15,262)	(15,986)
Finance costs, net	13	(15,222)	(15,713)
Share of post-tax result of an associate	-	(898)
Loss before income tax	(24,137)	(60,603)
Income tax (expense)/credit	14	(15,842)	261
Loss for the period	(39,979)	(60,342)
Loss attributable to: Equity owners of the Company	(35,001)	(54,191)
Non-controlling interests	(4,978)	(6,151)
(39,979)	(60,342)
Loss per share for the loss attributable to the equity owners of the Company
Basic loss per share	16	(0.0228)	(0.0353)
Diluted loss per share	16	(0.0228)	(0.0353)

INTERIM CONDENSED CONSOLIDATED BALANCE	SHEET	30 June	31 December
Note	2017 RMB'000 Unaudited	2016 RMB'000 Audited
ASSETS Non-current assets Property, plant and equipment	362,067	392,852
Land use rights	21,517	21,758
Intangible assets	29,532	35,727
Investment in an associate	1,070	-
Deferred income tax assets	132,111	138,842
Prepayments and other receivables	24,195	23,685
570,492	612,864
Current assets Inventories	337,879	371,631
Trade and note receivables	7	496,370	563,744
Prepayments and other receivables	8	240,805	248,532
Restricted bank deposits	27,894	17,619
Cash and cash equivalents	126,354	245,903
1,229,302	1,447,429
Total assets	1,799,794	2,060,293
EQUITY Equity attributable to the Company's equity owners Share capital	9	974	974
Share premium	591,651	591,651
Other reserves	341,850	333,874
Currency translation differences	(426,994)	(403,382)
Retained earnings	356,959	392,184
864,440	915,301
Non-controlling interests	95,413	97,033
Total equity	959,853	1,012,334

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED)

Note	30 June 2017 RMB'000 Unaudited	31 December 2016 RMB'000 Audited
LIABILITIES Non-Current liabilities Borrowings	99,763	103,093
Deferred income tax liabilities	21,513	22,141
121,276	125,234
Current liabilities Borrowings	132,509	263,687
Trade payables	413,607	492,923
Accruals and other payables	11	117,358	110,089
Current income tax liabilities	39,909	40,522
Current portion of long-term borrowings	15,282	15,504
718,665	922,725
Total liabilities	839,941	1,047,959
Total equity and liabilities	1,799,794	2,060,293