Yadea : Announcement of Interim Results for the Six Months Ended June 30, 2017

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Yadea Group Holdings Ltd.

雅迪集團控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1585) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2017

The board (the "Board") of directors (the "Directors") of Yadea Group Holdings Ltd. (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 June 30, 2017 (the "Reporting Period"), together with the comparative figures for the corresponding period in 2016 as follows:

FINANCIAL HIGHLIGHTS

For the Reporting Period:

•

Revenue increased by approximately 10.8% to approximately RMB3,254.5 million as

compared with the corresponding period in 2016.

•

Gross profit decreased by approximately 21.6% to approximately RMB493.9 million

as compared with the corresponding period in 2016.

•

Profit attributable to ordinary equity holders of the parent decreased by approximately

3.3% to approximately RMB171.6 million as compared with the corresponding period in 2016.

•

Basic and diluted earnings per share decreased as compared with the corresponding

period in 2016.

REVENUE	Notes 4(a)	RMB'000 3,254,454	RMB'000 2,937,686
Cost of sales	5(a)	(2,760,581)	(2,307,494)
Gross profit	493,873	630,192
Other income and gains, net	4(b)	85,704	38,305
Selling and distribution expenses	(165,304)	(238,437)
Administrative expenses	(198,157)	(201,570)
Finance costs	6	-	(134)
Profit before tax	5	216,116	228,356
Income tax expense	7	(44,525)	(50,855)
Profit for the period	171,591	177,501
Profit attributable to: Owners of the parent	171,591	177,501

Earnings per share attributable to ordinary equity holders of the parent

Basic

• For profit for the period (RMB) 9 0.06 0.08

  Diluted

• For profit for the period (RMB) 9 0.06 0.07

RMB'000 RMB'000

PROFIT FOR THE PERIOD 171,591 177,501 OTHER COMPREHENSIVE INCOME

Other comprehensive income to be reclassified to profit or loss in subsequent periods:

Exchange differences on translation of foreign operations	(24,115)	12,642
Net other comprehensive income to be reclassified to profit or loss in subsequent periods	(24,115)	12,642

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX (24,115) 12,642 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 147,476 190,143 Attributable to:

Owners of the parent 147,476 190,143

NON-CURRENT ASSETS	Notes	RMB'000	RMB'000
Long term receivable	182,259	-
Property, plant and equipment	710,656	732,980
Prepaid land lease payments	290,172	292,839
Intangible assets	16,776	16,966
Available-for-sale investments	14,683	14,683
Prepayments	53,328	59,413
Deferred tax assets	18,842	19,106
Total non-current assets	1,286,716	1,135,987
CURRENT ASSETS
Inventories	10	213,348	205,000
Trade and bills receivables	11	219,582	279,691
Prepayments, deposits and other receivables	334,775	255,176
Financial assets at fair value through profit or loss	1,705,746	1,411,630
Pledged bank deposits	863,700	777,073
Cash and cash equivalents	1,197,904	1,801,405
Total current assets	4,535,055	4,729,975
CURRENT LIABILITIES
Trade and bills payables	12	3,140,880	3,287,399
Other payables and accruals	328,193	285,242
Tax payable	88,799	72,751
Total current liabilities	3,557,872	3,645,392
Net current assets/(liabilities)	977,183	1,084,583
Total assets less current liabilities	2,263,899	2,220,570
Net assets	2,263,899	2,220,570
EQUITY
Equity attributable to owners of the parent
Share capital	188	188
Reserves	2,263,711	2,220,382
Total equity	2,263,899	2,220,570