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.
INTERIM RESULTS ANNOUNCEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018
FINANCIAL HIGHLIGHTS
- Revenue: HK$743.7 million, up 18.1% (2017: HK$629.8 million)
- Gross profit: HK$149.1 million, up 6.1% (2017: HK$140.5 million)
- Profit attributable to equity holders of the Company: HK$37.3 million, up 50.5%
(2017: HK$24.7 million)
- Basic earnings per share: HK8.84 cents (2017: HK5.89 cents)
- Dividends (per share): HK4.0 cents (2017: HK4.0 cents)
UNAUDITED INTERIM RESULTS
The board of directors (the "Board") of Fujikon Industrial Holdings Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries ("Fujikon" or the "Group") for the six months ended 30 September 2018.
The interim results have been reviewed by the Company's Audit Committee and independent auditor in accordance with Hong Kong Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants.
* for identification purpose only
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Revenue Cost of sales
Gross profit
Other gains/(losses) - net Distribution and selling expenses General and administrative expenses
Operating profit
Finance income - net
Profit before income tax Income tax expensesProfit for the period
Other comprehensive income:
Items that will not be subsequently reclassified to profit or loss:
- Fair value losses on financial assets at fair value through other comprehensive income
Items that have been reclassified or may be subsequently reclassified to profit or loss:
-
Currency translation differences
Unaudited
Six months ended 30 September 2018 2017
Note
HK$'000
4
HK$'000
743,669 (594,590)
──────── 149,079
629,772 (489,247)
──────── 140,525
7,404 (8,013)
(8,130) (7,089)
(86,997) (76,284)
────────
────────
5
61,356 49,139
2,668 1,057
──────── 64,024
6
──────── 50,196
(12,167)
──────── 51,857 ---------------
(9,205)
──────── 40,991 ---------------
(64)
-
(36,833) 17,723
- Fair value gains on available-for-sale financial assets - 164
-
Release of investment reserve upon disposal of
available-for-sale financial assets - 20
Other comprehensive income for the period, net of taxTotal comprehensive income for the period
Profit attributable to:
Equity holders of the Company Non-controlling interests
Total comprehensive income attributable to: Equity holders of the Company
Non-controlling interests
Earnings per share for profit attributable to the equity holders of the Company during the period:
- Basic (HK cents per share)
- Diluted (HK cents per share)
────────
(36,897) ---------------
14,960 ════════
──────── 17,907 ---------------
58,898 ════════
37,252 24,747
14,605 16,244
──────── 51,857 ════════
──────── 40,991 ════════
3,091 41,445
11,869 17,453
──────── 14,960 ════════
8
8.84 ════════
8
8.82 ════════
──────── 58,898 ════════
5.89 ════════
5.88 ════════
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Unaudited | Audited | ||
As at | As at | ||
30 September | 31 March | ||
2018 | 2018 | ||
Note | HK$'000 | HK$'000 | |
Non-current assets | |||
Property, plant and equipment | 136,809 | 137,898 | |
Investment property | 1,200 | 1,200 | |
Land use rights | 3,859 | 4,316 | |
Non-current deposits and other assets | 5,545 | 2,758 | |
Available-for-sale financial assets | - | 3,928 | |
Financial assets at fair value through other | |||
comprehensive income | 3,864 | - | |
Deferred income tax assets | 5,762 | 5,836 | |
───────── | ───────── | ||
Total non-current assets | 157,039 | 155,936 | |
---------------- | ---------------- | ||
Current assets | |||
Inventories | 301,842 | 237,111 | |
Trade receivables | 9 | 387,580 | 228,332 |
Other receivables | 42,231 | 30,005 | |
Financial assets at fair value through profit or loss | 1,853 | 2,145 | |
Current income tax recoverable | 63 | 61 | |
Cash and cash equivalents | 273,918 | 408,633 | |
───────── | ───────── | ||
Total current assets | 1,007,487 | 906,287 | |
---------------- | ---------------- | ||
Current liabilities | |||
Trade payables | 10 | 279,596 | 205,668 |
Accruals and other payables | 125,209 | 100,078 | |
Current income tax liabilities | 18,818 | 10,044 | |
───────── | ───────── | ||
Total current liabilities | 423,623 | 315,790 | |
---------------- | ---------------- | ||
Net current assets | 583,864 | 590,497 | |
---------------- | ---------------- | ||
Total assets less current liabilities | 740,903 | 746,433 | |
---------------- | ---------------- | ||
Non-current liabilities | |||
Deferred income tax liabilities | 1,886 | 1,491 | |
---------------- | ---------------- | ||
Net assets | 739,017 | 744,942 | |
═════════ | ═════════ | ||
Equity | |||
Capital and reserves attributable to the Company's | |||
equity holders | |||
Share capital | 42,123 | 42,107 | |
Other reserves | 157,693 | 191,739 | |
Retained earnings | |||
- Dividends | 16,849 | 21,053 | |
- Others | 455,661 | 435,221 | |
───────── | ───────── | ||
672,326 | 690,120 | ||
Non-controlling interests | 66,691 | 54,822 | |
───────── | ───────── | ||
Total equity | 739,017 | 744,942 | |
═════════ | ═════════ |
NOTES
1. Basis of preparation
The condensed consolidated interim financial information for the six months ended 30 September 2018 has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2018, which have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRS").
2. Accounting policies
The accounting policies adopted are consistent with those of the Group's annual financial statements for the year ended 31 March 2018, except as mentioned below.
(a) New and amended standards adopted by the Group
A number of new standards or amendments to standards became applicable for the current reporting period and the Group had to change its accounting policies and make retrospective adjustments as a result of adopting the following standards:
HKFRS 9 Financial instruments
HKFRS 15
Revenue from contracts with customers and the related amendments
The impacts of the adoption of these standards are disclosed in Note 3 below. The other standards did not have a significant impact on the Group's accounting policies and did not require retrospective adjustments.
(b) New standards, amendments to standards and interpretations that have been issued but are not effective
The following new standards, amendments to standards and interpretations have been issued, but are not effective for the Group's financial year beginning on 1 April 2018 and have not been early adopted:
HKFRS 9 (Amendments)
Prepayment features with negative compensation1
HKFRS 10 and HKAS 28 (Amendments)
Sale or contribution of assets between an investor
and its associate or joint venture3
HKFRS 16
Leases1
HKFRS 17
Insurance contracts2
HKFRSs (Amendments)
Annual improvements to HKFRSs 2015-2017 cycle1
HKAS 28 (Amendments)
Long-term interests in associates and joint ventures1
HK(IFRIC) - Int 23
Uncertainty over income tax treatments1
1
Effective for financial years beginning on or after 1 January 2019
2
Effective for financial years beginning on or after 1 January 2021
3
No mandatory effective date yet determined
HKFRS 16, Leases
Nature of change
HKFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the consolidated statement of financial position, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases.
The accounting for lessors will not significantly change.
2. Accounting policies (Continued)
(b) New standards, amendments to standards and interpretations that have been issued but are not effective (Continued)
HKFRS 16, Leases (Continued)
Impact
The standard will affect primarily the accounting for the Group's operating leases. As at the reporting date, the Group has non-cancellable operating lease commitments of approximately HK$21.8 million. The Group has not yet assessed the adjustments, if any, are necessary for example because of the change in the definition of the lease term and the different treatment of variable lease payments and of extension and termination options. It is therefore not yet possible to estimate the amount of right-of-use assets and lease liabilities that will have to be recognised on adoption of the new standard and how this may affect the Group's profit or loss and classification of cash flows going forward.
Date of adoption by the Group
The standard is mandatory for financial years commencing on or after 1 January 2019. The Group does not intend to adopt the standard before its effective date. The Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption.
There are no other standards and interpretations that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.
3. Changes in accounting policies
This note explains the impact of the adoption of HKFRS 9 Financial instruments ("HKFRS 9") and HKFRS 15 Revenue from contracts with customers ("HKFRS 15") on the Group's condensed consolidated interim financial information and also discloses the new accounting policies that have been applied from 1 April 2018, where they are different to those applied in prior periods.
(a) Adoption of HKFRS 9
HKFRS 9 replaces the provisions of HKAS 39 that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.
The adoption of HKFRS 9 from 1 April 2018 resulted in changes in accounting policies and adjustments to the amounts recognised in the condensed consolidated interim financial information. In accordance with the transitional provisions in HKFRS 9, comparative figures have not been restated.
(i) Classification and measurement
On 1 April 2018 (the date of initial application of HKFRS 9), the Group's management has assessed which business models apply to the financial assets held by the Group and has classified its financial instruments into the appropriate HKFRS 9 categories.
The main effects resulting from this reclassification are as follows:
As at 1 April 2018
Reclassification
As previously | under | ||
stated | HKFRS 9 | Restated | |
HK$'000 | HK$'000 | HK$'000 | |
Available-for-sale financial assets ("AFS") | 3,928 | (3,928) | - |
Financial assets at fair value through other | |||
comprehensive income ("FVOCI") | - | 3,928 | 3,928 |
═════════ | ═════════ | ═════════ |
The Group has elected to present in other comprehensive income ("OCI") changes in fair value of its debt instruments previously classified as AFS, because these investments are held both collecting contractual cash flows and selling of these assets. As a result, assets with fair value of HK$3,928,000 were reclassified from AFS to FVOCI and fair value gains of HK$38,000 were reclassified from AFS reserve to FVOCI reserve within the "Investment reserve" on 1 April 2018.
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Fujikon Industrial Holdings Ltd. published this content on 22 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 22 November 2018 04:35:04 UTC