Capxon International Electronic : ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016

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.

CAPXON INTERNATIONAL ELECTRONIC COMPANY LIMITED 凱普松國際電子有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 469)

website: www.capxongroup.com

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016

FINANCIAL HIGHLIGHTS
Year ended 31 December
2016	2015	Change
Revenue (RMB'000)	946,643	849,118	+11.49%
Profit for the year attributable to owners of the Company (RMB'000)	14,339	3,780	+279.34%
Basic earnings per share attributable to owners of the Company (RMB cents)	1.70	0.45	+277.78%
Dividends (HK cents per share) Final Interim	-- --	-- --	-- --

The board of directors (the "Board") of Capxon International Electronic Company Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively the "Group") for the year ended 31 December 2016 together with the comparative figures for the corresponding period as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2016

NOTES	2016 RMB'000	2015 RMB'000
Revenue	2	946,643	849,118
Cost of sales	(707,707)	(657,164)
Gross profit	238,936	191,954
Other income	8,005	12,470
Other gains and losses	(1,116)	(2,493)
Impairment loss on property, plant and equipment	(27,596)	(3,500)
Distribution and selling costs	(59,374)	(55,637)
Administrative expenses	(79,607)	(81,746)
Other expenses	(33,582)	(29,830)
Provision for damages	(8,899)	(7,398)
Finance costs	(2,398)	(9,573)
Profit before tax	34,369	14,247
Income tax expense	3	(20,655)	(11,206)
Profit for the year	4	13,714	3,041

Other comprehensive income (expense) Item that will not be reclassified to profit or loss:

Remeasurement of defined benefit obligations - 1,677

Item that may be subsequently reclassified to profit or loss:

Exchange differences arising on translation

of foreign operation (22,990) (10,185)

Other comprehensive expense for the year	(22,990)	(8,508)
Total comprehensive expense for the year	(9,276)	(5,467)
Profit (loss) for the year attributable to:
Owners of the Company	14,339	3,780
Non-controlling interests	(625)	(739)
13,714	3,041
Total comprehensive expense attributable to:
Owners of the Company	(8,685)	(5,174)
Non-controlling interests	(591)	(293)
(9,276)	(5,467)

Earnings per share (RMB cents)

- Basic 6 1.70 0.45

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 31 DECEMBER 2016

NOTES	2016 RMB'000	2015 RMB'000
NON-CURRENT ASSETS
Property, plant and equipment	443,879	499,603
Land use rights	38,419	39,453
Intangible assets	153	382
Deposits paid for acquisition of property,
plant and equipment	34,903	36,564
517,354	576,002
CURRENT ASSETS
Inventories	154,529	142,069
Land use rights	1,031	1,031
Trade and other receivables	7	383,336	335,737
Tax recoverable	2,056	2,107
Pledged bank deposits	2,424	6,730
Bank balances and cash	123,362	93,782
666,738	581,456
CURRENT LIABILITIES
Trade and other payables	8	416,327	318,580
Bank borrowings	87,210	158,052
Amounts due to related parties	4,334	4,984
Tax liabilities	20,119	10,120
527,990	491,736
NET CURRENT ASSETS	138,748	89,720
TOTAL ASSETS LESS CURRENT LIABILITIES	656,102	665,722
NON-CURRENT LIABILITIES
Deferred income	22,698	23,010
Deferred tax liabilities	3,764	3,796
26,462	26,806
NET ASSETS	629,640	638,916
CAPITAL AND RESERVES
Share capital	82,244	82,244
Share premium and reserves	545,155	553,840
Equity attributable to owners of the Company	627,399	636,084
Non-controlling interests	2,241	2,832
TOTAL EQUITY	629,640	638,916

NOTES

1. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRSs") issued by the International Accounting Standards Board ("IASB"). In

addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and by the Hong Kong Companies Ordinance (Cap 622).

The consolidated financial statements have been prepared on the historical cost basis at the end of each reporting period.

Application of new and amendments to IFRSs

The Group has applied the following amendments to IFRSs issued by the IASB for the first time in the current year:

Amendments to IFRS 11 Accounting for Acquisitions of Interests in Joint Operations Amendments to IAS 1 Disclosure Initiative

Amendments to IAS 16 Clarification of Acceptable Methods of Depreciation and and IAS 38 Amortisation

Amendments to IFRSs Annual Improvements to IFRSs 2012 - 2014 Cycle

Amendments to IAS 16 Agriculture: Bearer Plants and IAS 41

Amendments to IFRS 10, Investment Entities: Applying the Consolidation Exception IFRS 12 and IAS 28

The application of the above amendments to IFRSs in the current year has had no material effect on the amounts reported in these consolidated financial statements and/or disclosures set out in these consolidated financial statements.

New and amendments to IFRSs in issue but not yet effective

The Group has not early applied the following new and revised IFRSs that have been issued but are not yet effective:

IFRS 9 Financial Instruments1

IFRS 15 Revenue from Contracts with Customers and the related Amendments1

IFRS 16 Leases2

IFRIC 22 Foreign Currency Transactions and Advance Consideration1 Amendments to IFRS 2 Classification and Measurement of Share-based Payment

Transactions1

Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts1

Amendments to IFRS 10 Sale or Contribution of Assets between an Investor and and IAS 28 its Associate or Joint Venture3

Amendments to IAS 7 Disclosure Initiative4

Amendments to IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses4 Amendments to IAS 40 Transfers of Investment Property1

Amendments to IFRSs Annual Improvements to IFRS Standards 2014 - 2016 Cycle5

1 Effective for annual periods beginning on or after 1 January 2018

2 Effective for annual periods beginning on or after 1 January 2019

3 Effective for annual periods beginning on or after a date to be determined