China U Ton : 2017-August-14 2017 Interim Results Announcement

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.

Classified Group (Holdings) Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8232) 2017 INTERIM RESULTS ANNOUNCEMENT

The board (the "Board") of directors (the "Directors") of Classified Group (Holdings) Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries for the six months ended 30 June 2017. This announcement, containing the full text of the 2017 Interim Report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on the Growth Enterprise Market ("GEM") of The Stock Exchange of Hong Kong Limited (the "GEM Listing Rules") in relation to information to accompany preliminary announcement of interim results.

On behalf of the Board

Classified Group (Holdings) Limited Mr. LO Yeung Kit Alan

Executive Director

Hong Kong, 14 August 2017

As at the date of this announcement, the chairman and the executive director of the Company is Mr. WONG Arnold Chi Chiu, the executive directors of the Company are Mr. LO Yeung Kit Alan, Mr. PONG Kin Yee and Mr. MA Chun Fai; and the independent non-executive directors of the Company are Dr. CHAN Kin Keung Eugene, Mr. CHUM Kwan Yue Desmond and Mr. NG Chun Fai Frank.

This announcement, for which the directors of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the GEM website at www.hkgem.com on the "Latest Company Announcements" page for at least 7 days from the date of its posting and on the Company's website at www.classifiedgroup.com.hk.

2017

INTERIM

REPORT

CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.

Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange take no responsibility for the contents of this report, 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 report.

This report, for which the directors (the "Directors") of Classified Group (Holdings) Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of the Stock Exchange (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief, the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

CONTENTS

Contents 1

Corporate Information 2

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive

Income 4

Condensed Consolidated Statement of Financial Position 5

Condensed Consolidated Statement of Changes in Equity 7

Condensed Consolidated Statement of Cash Flows 8

Notes to the Condensed Consolidated Financial Statements 9

Management Discussion and Analysis 25

Other Information 28

01

2017 INTERIM REPORT

CORPORATE INFORMATION

BOARD OF DIRECTORS Executive Directors

Mr. WONG Arnold Chi Chiu (Chairman)

Mr. LO Yeung Kit Alan Mr. PONG Kin Yee

Mr. MA Chun Fai

Independent non-executive Directors Dr. CHAN Kin Keung Eugene BBS,JP Mr. CHUM Kwan Yue Desmond

Mr. NG Chun Fai Frank

COMPLIANCE OFFICER Mr. WONG Arnold Chi Chiu

AUTHORIZED REPRESENTATIVES Mr. WONG Arnold Chi Chiu

Mr. LI Kai Leung

Company Secretary Mr. LI Kai Leung (HKICPA)

Audit Committee Members Mr. CHUM Kwan Yue Desmond (Chairman)

Dr. CHAN Kin Keung Eugene BBS,JP

Mr. NG Chun Fai Frank

Remuneration Committee Members Dr. CHAN Kin Keung Eugene BBS,JP (Chairman)

Mr. CHUM Kwan Yue Desmond Mr. NG Chun Fai Frank

Nomination Committee Members Mr. NG Chun Fai Frank (Chairman)

Dr. CHAN Kin Keung Eugene BBS,JP

Mr. CHUM Kwan Yue Desmond

Auditors Deloitte Touche Tohmatsu

Certified Reporting Accountants

Legal Advisers to the Company Robertsons

Principal Bankers Hang Seng Bank Limited

The Hongkong and Shanghai Banking Corporation Limited

02

CLASSIFIED GROUP (HOLDINGS) LIMITED

Registered Office Cricket Square, Hutchins Drive

P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands

Head Office, Headquarters and Principal Place of Business

in Hong Kong

Unit B, 23/F

38 Heung Yip Road Wong Chuk Hang Hong Kong

Hong Kong Share Registrars and Transfer Office

Union Registrars Limited Suites 3301-04, 33/F

Two Chinachem Exchange Square 338 King's Road

North Point Hong Kong

Company Website www.classifiedgroup.com.hk

GEM Stock Code 8232

03

2017 INTERIM REPORT

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2017

Three months ended Six months ended

NOTES Revenue 5 Other income 6 Other losses Impairment loss for property, plant and equipment Allowance for rental deposits Raw materials and consumable used Staff costs Depreciation Property rental and related expenses Utility expenses Advertising and promotion expenses Other expenses Finance costs 7	30.6.2017	30.6.2016	30.6.2017	30.6.2016
	HK$'000	HK$'000	HK$'000	HK$'000
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	35,783	44,613	69,681	90,731
	252	126	524	181
	-	-	-	(147)
	(6,529)	-	(6,529)	-
	(1,868)	-	(1,868)	-
	(8,599)	(9,551)	(16,618)	(19,086)
	(16,897)	(16,428)	(33,263)	(32,948)
	(2,577)	(2,020)	(5,121)	(4,208)
	(6,838)	(7,857)	(14,850)	(15,823)
	(1,091)	(1,174)	(2,034)	(2,189)
	(771)	(840)	(1,459)	(1,581)
	(4,633)	(7,324)	(9,184)	(17,851)
	(163)	(158)	(337)	(316)
Loss before taxation 8	(13,931)	(613)	(21,058)	(3,237)
Taxation 9	-	(447)	-	(1,118)
Loss and total comprehensive expense for the period	(13,931)	(1,060)	(21,058)	(4,355)
Loss and total comprehensive	(13,931)	(1,016)	(21,058)	(4,257)
expense for the period
attributable to:
- Owners of the Company
- Non-controlling interests	-	(44)	-	(98)
(13,931)	(1,060)	(21,058)	(4,355)
Loss per share Basic (HK cents) 11	(3.48)	(0.32)	(5.26)	(1.33)

04

CLASSIFIED GROUP (HOLDINGS) LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

NOTES Non-current assets Property, plant and equipment 12 Deposits 13 Deferred tax assets	30.6.2017	31.12.2016
	HK$'000	HK$'000
	(unaudited)	(audited)
	23,982	34,385
	8,959	9,557
	1,482	1,482
34,423	45,424
Current assets Inventories Trade and other receivables, deposits and prepayments 13 Amounts due from related companies Amounts due from directors Tax recoverable Bank balances and cash	3,490	3,481
	5,178	12,857
	120	363
	509	2,770
	1,166	1,166
	39,444	54,069
49,907	74,706
Current liabilities Trade and other payables and accrued charges 14 Amounts due to related companies Tax payable Bank borrowings 15	14,850	21,310
	375	458
	96	96
	17,966	26,165
33,287	48,029

05

2017 INTERIM REPORT

NOTES Net current assets	30.6.2017 HK$'000 (unaudited) 16,620	31.12.2016 HK$'000 (audited) 26,677
Total assets less current liabilities	51,043	72,101
Non-current liabilities Provision	1,758	1,758
Net assets	49,285	70,343
Capital and reserves Share capital 16 Reserves	4,000 45,285	4,000 66,343
Equity attributable to owners of the Company	49,285	70,343

06

CLASSIFIED GROUP (HOLDINGS) LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2017

At 1 January 2017 (audited)	Attributable to owners of the Company
	Share	Share	Other	Accumulated	Total	Non-	Total
				profits		controlling
	capital	premium	reserve	(losses)		interests
	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
	(note)
	4,000	45,296	766	20,281	70,343	-	70,343
Loss and total comprehensive expense for the period	-	-	-	(21,058)	(21,058)	-	(21,058)
At 30 June 2017 (unaudited)	4,000	45,296	766	(777)	49,285	-	49,285
At 1 January 2016 (audited)	-	10,000	1,512	33,355	44,867	(542)	44,325
Loss and total comprehensive expense for the period	-	-	-	(4,257)	(4,257)	(98)	(4,355)
At 30 June 2016 (unaudited)	-	10,000	1,512	29,098	40,610	(640)	39,970

Note: Other reserve represents the difference between the share capital of group entities and that of the Company issued pursuant of the group reorganisation.

07

2017 INTERIM REPORT

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

Six months ended

Net cash used in operating activities	30.6.2017 HK$'000 (unaudited) (12,392)	30.6.2016 HK$'000 (unaudited) (8,898)
Net cash from investing activities	(1,247)	(746)
Purchase of property, plant and equipment
Repayment from related companies	-	102
Advance to directors	(509)	(5,521)
Repayment from directors	2,770	23,344
Receipts from other receivables	5,289	-
6,303	17,179
Net cash (used in) from financing activities Repayment to a related company Repayment to a non-controlling shareholder of a subsidiary New bank borrowings raised Repayment of bank borrowings Repayment of obligation under finance lease Interest paid	-	(25)
	-	(52)
	-	1,439
	(8,199)	(754)
	-	(142)
	(337)	(316)
(8,536)	150
Net (decrease) increase in cash and cash equivalents	(14,625)	8,431
Cash and cash equivalents at beginning of
the period	54,069	17,062
Cash and cash equivalents at end of the period representing by bank balances and cash	39,444	25,493

08

CLASSIFIED GROUP (HOLDINGS) LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2017

1. GENERAL

   The Company was incorporated as an exempted company and registered in the Cayman Islands with limited liability under the Cayman Companies Law on

   24 October 2014. The shares of the Company have been listed on the Growth Enterprise Market ("GEM") of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") by way of placing on 11 July 2016 (the "Listing").

   The Company is an investment holding company and its subsidiaries are principally engaged in restaurant operations and production and sales of bakery products in Hong Kong.

   The consolidated financial statements are presented in Hong Kong Dollar ("HK$"), which is also the functional currency of the Company.

2. BASIS OF PREPARATION AND PRESENTATION

The unaudited condensed consolidated financial statement for the six months ended

30 June 2017 has been prepared in accordance with the Hong Kong Accounting Standard ("HKAS") 34 "Interim financial reporting" issued by the Hong Kong Institute of Certificate Public Accountants ("HKICPA") and the applicable disclosure requirements of Chapter 18 of the Rules Governing the Listing of Securities in the GEM of the Stock Exchange.

The unaudited consolidated financial statements have not been audited or reviewed by the Company's auditors, but have been reviewed by the audit committee of the Company (the "Audit Committee").

09

2017 INTERIM REPORT