Capxon International Electronic : INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 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

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2016

FINANCIAL HIGHLIGHTS
Six months ended 30 June
2016	2015	Changes
Revenue (RMB'000)	435,042	415,732	+4.64%
(Loss) profit for the period attributable to owners of the Company (RMB'000)	(13,327)	1,921	N/A
Basic (loss) earnings per share attributable to owners of the Company (RMB cents)	(1.58)	0.23	N/A
Interim dividends (HK cents per share)	--	--	--

The board of directors (the "Board") of Capxon International Electronic Company Limited (the "Company") announces the unaudited consolidated results of the Company and its subsidiaries (collectively, the "Group") for the six months ended 30 June 2016 (the "Period") together with the comparative figures for the corresponding period of last year as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2016

Six months ended 30 June 2016 2015

NOTES RMB'000 RMB'000

(unaudited) (unaudited)

Revenue	3	435,042	415,732
Cost of sales	(331,020)	(328,007)
Gross profit	104,022	87,725
Other income	5,472	1,338
Other gains and losses	(23,397)	2,035
Distribution and selling costs	(26,895)	(27,466)
Administrative expenses	(38,537)	(37,092)
Other expenses	(18,221)	(12,086)
Provision for damages	(4,252)	(3,680)
Finance costs	(1,395)	(5,523)
(Loss) profit before tax	(3,203)	5,251
Income tax expense	4	(11,250)	(3,303)
(Loss) profit for the period	5	(14,453)	1,948
Other comprehensive expense (net of tax):
Item that may be subsequently reclassified
to profit or loss: Exchange differences arising on translation	(10,571)	(1,876)
Total comprehensive (expense) income for the period	(25,024)	72
(Loss) profit for the period attributable to:
Owners of the Company	(13,327)	1,921
Non-controlling interests	(1,126)	27
(14,453)	1,948
Total comprehensive (expense) income attributable to:
Owners of the Company	(23,781)	216
Non-controlling interests	(1,243)	(144)
(25,024)	72

(Loss) earnings per share (RMB cents) 7

Basic (1.58) 0.23

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2016

NON-CURRENT ASSETS

30 June 31 December

NOTES 2016 2015 RMB'000 RMB'000

(unaudited) (audited)

Property, plant and equipment 480,414 499,603

Land use rights 38,936 39,453

Intangible assets 264 382

Deposits paid for acquisition of property, plant

and equipment 37,447 36,564

CURRENT ASSETS	557,061	576,002
Inventories	137,946	142,069
Land use rights	1,031	1,031
Trade and other receivables	8	342,036	335,737
Tax recoverable	2,069	2,107
Pledged bank deposits	6,608	6,730
Bank balances and cash	105,629	93,782
595,319	581,456
CURRENT LIABILITIES
Trade and other payables	9	401,653	318,580
Bank borrowings	92,291	158,052
Amounts due to related parties	4,463	4,984
Tax liabilities	13,408	10,120
511,815	491,736
NET CURRENT ASSETS	83,504	89,720
TOTAL ASSETS LESS CURRENT LIABILITIES	640,565	665,722
NON-CURRENT LIABILITIES
Deferred income	22,854	23,010
Deferred tax liabilities	3,819	3,796
26,673	26,806
613,892	638,916
CAPITAL AND RESERVES
Share capital	82,244	82,244
Share premium and reserves	530,059	553,840
Equity attributable to owners of the Company	612,303	636,084
Non-controlling interests	1,589	2,832
613,892	638,916

NOTES

1. BASIS OF PREPARATION

   The condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board as well as with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("Listing Rules").

   The condensed consolidated financial statements are presented in Renminbi ("RMB"), which is also the functional currency of the Company.

2. PRINCIPAL ACCOUNTING POLICIES

   The condensed consolidated financial statements have been prepared on the historical cost basis.

   Except as described below, the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended 30 June 2016 are the same as those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2015.

   In the current interim period, the Group has applied, for the first time, the following amendments to International Financial Reporting Standards ("IFRSs") issued by the International Accounting Standards Board that are relevant for the preparation of the Group's condensed consolidated financial statements:

   Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions

   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 IAS 16 and IAS 41 Agriculture: Bearer Plants

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

   Amendments to IFRSs Annual Improvements to IFRSs 2012-2014 Cycle

   Amendments to IAS 27 Equity Method in Separate Financial Statements

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

3. REVENUE AND SEGMENTAL INFORMATION

Revenue represents the amounts received and receivable for goods sold, net of sales taxes, discounts and returns, for the period.

Information reported to the chief operating decision makers (i.e. the executive directors of the Company) for the purposes of resources allocation and assessment of segment performance focuses on types of products.

The Group's reportable and operating segments are as follows: Capacitors - Manufacture and sale of capacitors

Aluminum foils - Manufacture and sale of aluminium foils