Top Spring International : Announcement- Interim Results for the Six Months Ended 30 June 2021

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TOP SPRING INTERNATIONAL HOLDINGS LIMITED

萊 蒙 國 際 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 03688)

ANNOUNCEMENT OF INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2021

HIGHLIGHTS

• For the six months ended 30 June 2021, the Group recorded an aggregate of pre-sales of properties and car park units of approximately HK$1,360.3 million, representing an increase of approximately 3,948.5% as compared with the corresponding period of 2020, of which approximately HK$1,357.4 million was from pre-sales of properties with pre-sold saleable GFA of approximately 21,610 sq.m. and approximately HK$2.9 million was from pre-sales of 21 car park units. The ASP of the Group's pre-sales of properties was approximately HK$62,813.5 per sq.m., representing an increase of approximately 343.8% as compared with the corresponding period of 2020.
• As at 30 June 2021, the Group had 22 projects across 11 cities with a total estimated net saleable/leasable GFA of approximately 511,413 sq.m..
• Revenue for the six months ended 30 June 2021 increased by approximately 15.7% to approximately HK$293.8 million from approximately HK$254.0 million for the six months ended 30 June 2020.

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• For the six months ended 30 June 2021, the Group generated recurring rental income of approximately HK$145.4 million (for the six months ended 30 June 2020: approximately HK$101.8 million) from its investment properties which mainly comprised shopping malls, community commercial centres, retail shops, serviced apartments and car park units. As at 30 June 2021, the investment property portfolio (inclusive of investment properties classified as held for sale) had a total leasable GFA of approximately 279,443 sq.m. and a fair value of approximately HK$7,679.1 million, representing approximately 27.5% of the Group's total asset value.
• Gross profit margin for the six months ended 30 June 2021 was approximately 56.2%, as compared with approximately 52.1% for the corresponding period of 2020.
• For the six months ended 30 June 2021, the profit attributable to equity shareholders of the Company was approximately HK$96.6 million (for the six months ended 30 June 2020: loss attributable to equity shareholders of the Company of approximately HK$211.4 million).
• Basic and diluted earnings per Share attributable to equity shareholders of the Company and the holders of PCSs for the six months ended 30 June 2021 were approximately HK$0.06 and HK$0.06, respectively (for the six months ended 30 June 2020: basic and diluted loss per Share attributable to equity shareholders and holders of PCSs of HK$0.14 and HK$0.14, respectively).
• Net assets per Share attributable to equity shareholders of the Company and the holders of PCSs as at 30 June 2021 was approximately HK$6.7 (as at 31 December 2020: approximately HK$6.6).
• As at 30 June 2021, the net gearing ratio of the Group was approximately 54.4% (as at 31 December 2020: approximately 59.8%)
• The Board declared the payment of an interim dividend of HK3 cents per Share attributable to equity shareholders of the Company and the holders of PCSs for the six months ended 30 June 2021 (for the six months ended 30 June 2020: Nil).

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INTERIM RESULTS

The board (the "Board") of directors (the "Directors" and each a "Director") of Top Spring International Holdings Limited (the "Company") is pleased to announce the unaudited consolidated interim results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2021 together with selected explanatory notes and the relevant comparative figures for the corresponding period in 2020 as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE SIX MONTHS ENDED 30 JUNE 2021 - UNAUDITED

(Expressed in Hong Kong dollars)

		Six months ended 30 June
		2021		2020
	Note	$'000	$'000
Revenue	3	293,806		254,026
Direct costs		(128,605)	(121,697)
Gross profit		165,201		132,329
Valuation gains/(losses) on investment		67,729
properties		(114,497)
Other revenue	4	75,008	70,492
Other net income	5	224,655	12,936
Selling and marketing expenses		(32,995)	(18,658)
Administrative expenses		(163,945)	(162,315)
Impairment loss on trade and other receivables		(7,385)	(10,006)
Profit/(loss) from operations		328,268		(89,719)
Finance costs	6(a)	(146,635)	(156,659)
Share of losses of associates		(981)	(1,012)
Share of losses of joint ventures		(3,238)	(6,767)
Profit/(loss) before taxation	6	177,414		(254,157)
Income tax (charge)/credit	7	(80,854)	19,384
Profit/(loss) for the period		96,560		(234,773)
Attributable to:
Equity shareholders of the Company and holders
of bonus perpetual subordinated convertible
securities ("PCSs")		96,647		(211,393)
Non-controlling interests		(87)	(23,380)
Profit/(loss) for the period		96,560		(234,773)
Earnings/(loss) per share (HK$)	8
Basic		0.06		(0.14)
Diluted		0.06		(0.14)

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2021 - UNAUDITED

(Expressed in Hong Kong dollars)

	Six months ended 30 June
	2021		2020
	$'000	$'000
Profit/(loss) for the period	96,560		(234,773)
Other comprehensive income for the period
(after tax and reclassification adjustments):
Items that may be reclassified subsequently to
profit or loss:
- Exchange differences on translation of
financial statements of foreign
subsidiaries	131,798		(192,796)
- Share of other comprehensive income of
associates and joint ventures	(7,653)	(9,353)
	124,145		(202,149)
Total comprehensive income for the period	220,705		(436,922)
Attributable to:
Equity shareholders of the Company and
holders of PCSs	228,359		(410,821)
Non-controlling interests	(7,654)	(26,101)
Total comprehensive income for the period	220,705		(436,922)

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2021 - UNAUDITED

(Expressed in Hong Kong dollars)

		At	At
		30 June	31 December
		2021		2020
	Note	$'000	$'000
Non-current assets
Investment properties		7,633,604		7,238,615
Other property, plant and equipment		190,071	199,281
		7,823,675		7,437,896
Intangible assets		3,769	3,769
Goodwill		40,736	40,736
Interest in associates		6,096	7,072
Interest in joint ventures		555,743	423,328
Financial assets measured at fair value through		1,459,151
profit or loss (FVPL)	10	1,488,143
Other receivables		253,516	231,761
Deferred tax assets		73,146	85,540
		10,215,832		9,718,245
Current assets
Inventories and other contract costs	11	10,528,120		10,884,496
Trade and other receivables	12	2,204,615		1,654,142
Prepaid tax		72,779		38,846
Financial assets measured at fair value through		141,018
profit or loss (FVPL)	10	115,657
Restricted and pledged deposits		2,700,872	3,046,639
Cash and cash equivalents		1,971,284	1,653,196
		17,618,688		17,392,976
Investment properties classified as held for sale		45,493	70,657
		17,664,181		17,463,633
Current liabilities
Trade and other payables	13	4,124,183		4,004,074
Contract liabilities		1,647,077		726,231
Bank loans and other borrowings		6,283,119	5,966,708
Lease liabilities		15,333	21,971
Tax payable		208,000	168,259
Bonds payable		251,222	248,552
		12,528,934		11,135,795
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