Towngas China : Announcements and Notices -

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1083)

2016 INTERIM RESULTS ANNOUNCEMENT

Financial Highlights:

• Total gas sales of the Group steadily grew by 5% to 3,551 million cubic metres.

• Profit from project companies on the mainland denominated in Renminbi increased 11% to RMB678 million.

• Profit after taxation attributable to shareholders of the Company was HK$564 million.

RESULTS

The board of directors (the "Board") of Towngas China Company Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30 June 2016.

The unaudited consolidated results of the Group for the six months ended 30 June 2016 together with the comparative figures of 2015 are as follows:

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2016

Six months ended 30 June 2016 2015

NOTES HK$'000 HK$'000

(unaudited) (unaudited)

Turnover 2 3,435,946 3,931,075

Operating profit before returns on investments	556,122	521,518
Other gains, net	2,980	106,195
Share of results of associates	175,911	174,994
Share of results of joint ventures	156,133	152,591
Finance costs	3	(109,958)	(82,903)
Profit before taxation	4	781,188	872,395
Taxation	5	(164,747)	(178,957)
Profit for the period	616,441	693,438
Profit for the period attributable to: Shareholders of the Company	564,399	639,166
Non-controlling interests	52,042	54,272
616,441	693,438
Earnings per share	7	HK cents	HK cents
- Basic	21.18	24.24
- Diluted	N/A	24.21

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2016

Six months ended 30 June 2016 2015

HK$'000 HK$'000

(unaudited) (unaudited)

Profit for the period 616,441 693,438

Other comprehensive (expense) income

Item that will not be reclassified subsequently to profit or loss

Exchange differences arising on translation to presentation currency

Item that may be reclassified subsequently to profit or loss

(341,074 ) 6,874

Fair value change on available-for-sale investment Cash flow hedge: Fair value change on cash flow hedge	3,751 2,361	- 903
Reclassification of fair value adjustments to profit or loss	1,239	-
(333,723 )	7,777
Total comprehensive income for the period	282,718	701,215
Total comprehensive income attributable to: Shareholders of the Company	250,677	646,064
Non-controlling interests	32,041	55,151
Total comprehensive income for the period	282,718	701,215

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2016

30.06.2016	31.12.2015
NOTES	HK$'000	HK$'000
(unaudited)	(audited)
Non-current assets
Property, plant and equipment	12,401,282	12,054,598
Leasehold land	555,555	502,146
Intangible assets	530,165	560,257
Goodwill	5,586,372	5,732,259
Interest in associates	2,987,404	2,940,684
Interest in joint ventures	2,131,254	2,071,013
Loans to joint ventures	78,189	92,796
Loan to a non-controlling shareholder	16,921	-
Available-for-sale investments	256,777	259,506

24,543,919 24,213,259

Current assets

Inventories	501,509	558,421
Leasehold land	26,229	25,763
Loan to an associate	-	17,912
Loans to joint ventures	96,440	155,845
Trade and other receivables, deposits and prepayments	8	1,360,855	1,506,681
Amounts due from non-controlling shareholders	15,928	16,317
Other financial assets	28,994	-
Time deposits over three months	210,703	237,938
Bank balances and cash	2,507,256	2,138,388
4,747,914	4,657,265
Current liabilities Trade and other payables and accrued charges	9	4,343,784	4,159,819
Amounts due to non-controlling shareholders	107,132	151,299
Taxation	666,543	650,428
Borrowings - amount due within one year	2,671,320	3,183,174
Other financial liabilities	1,239	3,600
7,790,018	8,148,320
Net current liabilities	(3,042,104)	(3,491,055)
Total assets less current liabilities	21,501,815	20,722,204
Non-current liabilities Loans from the ultimate holding company	993,750	993,750
Borrowings - amount due after one year	5,428,938	4,591,433
Deferred taxation	419,789	437,165
6,842,477	6,022,348
Net assets	14,659,338	14,699,856