Win Hanverky : Announcement of Unaudited Interim Results for the six months ended 30 June 2017

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Win Hanverky Holdings Limited

永 嘉 集 團 控 股 有 限 公 司

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 3322) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2017

FINANCIAL HIGHLIGHTS Unaudited
Six months ended 30 June
2017	2016	Change
HK$'000	HK$'000	%
Revenue	1,921,516	2,040,072	-5.8%
Gross profit	536,444	594,957	-9.8%
Gross profit margin	27.9%	29.2%	-1.3% pt
Operating profit	45,787	141,979	-67.8%
Operating profit
(excluding impact of factory closure)	69,550	141,979	-51.0%
Profit attributable to equity holders	25,913	105,665	-75.5%
Profit attributable to equity holders
(excluding impact of factory closure)	49,676	105,665	-53.0%
Basic EPS (HK cents)	2.0	8.2	-75.6%
Dividends (HK cents)	2.0	4.0	-50.0%

OPERATIONAL HIGHLIGHTS

• Decrease in revenue was due to 12.3% drop in revenue from Manufacturing Business which was partially compensated by 16.6% increase in revenue from Distribution and Retail Business.

• Profit attributable to equity holders (excluding impact of factory closure) decreased from HK$105.7 million to HK$49.7 million primarily due to (i) drop in gross profit from Manufacturing Business resulting from decreased production efficiency and output of the main Vietnam factory and (ii) decreased store contribution from sportswear retail business.

• The Board proposed an interim dividend of HK2.0 cents per share in consideration of healthy cash position.

The board of directors (the "Board" or "Directors") of Win Hanverky Holdings Limited (the "Company") is pleased to present the unaudited interim results of the Company and its subsidiaries (together the "Group") for the six months ended 30 June 2017, together with the comparative amounts for the corresponding period of 2016, as follows:

CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2017

Unaudited
Six months ended 30 June
2017	2016
Note	HK$'000	HK$'000
Revenue	3	1,921,516	2,040,072
Cost of sales	(1,385,072	(1,445,115
Gross profit	536,444	594,957
Selling and distribution costs	(280,170	(227,726
General and administrative expenses	(203,679	(227,481
Other (expenses)/income - net	4	(19,120	2,753
Other gains/(losses) - net	5	12,312	(524
Operating profit	45,787	141,979
Finance income	2,141	5,419
Finance costs	(1,196	(1,516
Finance income - net	945	3,903
Share of profits/(losses) of associates	1,428	(1,028
Profit before income tax	48,160	144,854
Income tax expense	6	(24,264	(36,421
Profit for the period	23,896	108,433
Attributable to:
Equity holders of the Company	25,913	105,665
Non-controlling interests	(2,017	2,768
23,896	108,433
Earnings per share attributable to equity holders of the Company (expressed in HK cents per share)	7	8.2
Basic	2.0
Diluted	2.0	8.2

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) ) ) COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2017

Unaudited
Six months ended 30 June
2017	2016
HK$'000	HK$'000
Profit for the period	23,896	108,433
Other comprehensive income
Items that may be reclassified to profit or loss
Currency translation differences	21,310	(12,580
Share of other comprehensive income of associates	166	(654
Total comprehensive income for the period	45,372	95,199
Total comprehensive income for the period attributable to:
Equity holders of the Company	43,185	93,879
Non-controlling interests	2,187	1,320
45,372	95,199

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FINANCIAL POSITION

AS AT 30 JUNE 2017

Unaudited	Audited
30 June	31 December
2017	2016
Note	HK$'000	HK$'000
Non-current assets
Land use rights	109,584	108,668
Property, plant and equipment	680,486	679,012
Intangible assets	8	167,612	169,861
Investments in associates	11,032	9,438
Deferred tax assets	40,131	37,319
Deposits, prepayments and other receivables	117,087	94,856
Pledged bank deposits	1,150	1,116
Total non-current assets	1,127,082	1,100,270
Current assets
Inventories	826,994	783,963
Trade and bills receivable	9	429,998	516,495
Current tax recoverables	3,217	3,998
Deposits, prepayments and other receivables	123,336	118,080
Pledged bank deposits	6,170	6,116
Cash and bank balances	434,071	414,210
Total current assets	1,823,786	1,842,862
Current liabilities
Trade and bills payable	10	243,525	251,516
Accruals and other payables	219,313	275,877
Current tax liabilities	97,354	90,261
Borrowings	122,813	75,530
Total current liabilities	683,005	693,184
Non-current liabilities
Deferred tax liabilities	5,736	5,311
Net assets	2,262,127	2,244,637