JTF International : INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2022

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JTF International Holdings Limited

金 泰 豐 國 際 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8479)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2022

INTERIM RESULTS

The board of directors of JTF International Holdings Limited (the "Company") is pleased to announce the unaudited condensed interim financial results of the Company and its subsidiaries (the "Group" or "our Group") for the three months and six months ended 30 June 2022 together with comparative figures for the corresponding periods in

2021 as follows:

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		For the three months	For the six months
		ended 30 June	ended 30 June
		2022			2021	2022			2021
	Note	RMB'000	RMB'000	RMB'000	RMB'000
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Revenue	5	122,106			648,833	400,126			1,082,298
Cost of sales	6	(115,125)	(614,917)	(382,396)	(1,022,821)
Gross profit		6,981			33,916	17,730			59,477
Other (losses)/gains - net		(221)	-	(220)	1
Distribution expenses	6	(3,541)	(5,119)	(7,431)	(10,829)
Administrative expenses	6	(3,143)	(3,493)	(5,952)	(6,248)
Operating profit		76			25,304	4,127			42,401
Finance income - net	7	363			12	528			138
Profit before income tax		439			25,316	4,655			42,539
Income tax expense	8	(411)	(8,521)	(2,166)	(14,540)
Profit for the period		28			16,795	2,489			27,999
Other comprehensive income		-	-	-	-
Total comprehensive
income for the period		28			16,795	2,489			27,999
Earnings per share	9
0.0 cents						0.3 cents
- Basic and diluted (RMB)		1.8 cents	3.0 cents

The accompanying notes form an integral part of these condensed consolidated financial statements.

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		At			At
		30 June			31 December
		2022	2021
	Note	RMB'000			RMB'000
		(Unaudited)			(Audited)
ASSETS
Non-current assets		16,620
Property, plant and equipment	11	17,137
Right-of-use assets		4,048	4,259
Deferred income tax assets		770	733
Prepayments		4,194	4,194
		25,632	26,323
Current assets
	103,936
Inventories		42,131
Prepayments		131,006	15,210
Trade and other receivables	12	89,071	504,936
Cash and cash equivalents		106,637	7,805
		430,650	570,082
Total assets		456,282	596,405
EQUITY
Equity attributable to the owners of
the Company		7,980
Share capital	14	7,980
Other reserves		285,916	282,462
Retained earnings		95,232		96,197
Total equity		389,128	386,639
LIABILITIES
Non-current liabilities		3,772
Lease liabilities		4,054
Deferred income tax liabilities		16,404		16,187
		20,176	20,241
Current liabilities
	15,154
Trade and other payables	13	179,700
Contract liabilities		28,193	3,527
Lease liabilities		362	353
Current income tax liabilities		3,269		5,945
		46,978	189,525
Total liabilities		67,154	209,766
Total equity and liabilities		456,282	596,405

The accompanying notes form an integral part of these condensed consolidated financial statements.

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2022

							Other reserves
	Share	Recapitalisation		Share		Capital	Statutory	Safety		Retained
	capital		reserves		premium		reserves	reserves	reserves		earnings	Total
	RMB'000		RMB'000		RMB'000		RMB'000	RMB'000	RMB'000		RMB'000	RMB'000
										(Note a)	(Note b)
Balances at 1 January 2021
(Audited)	7,980	56,125	169,321	300		17,500	30,135	68,192	349,553
Profit and total comprehensive
income for the period	-		-		-		-	-	-	27,999	27,999
Appropriation to safety reserves	-		-		-		-	-	2,341	(2,341)	-
Balance at 30 June 2021
(Unaudited)	7,980	56,125	169,321	300		17,500	32,476	93,850	377,552
Balances at 1 January 2022
(Audited)	7,980	56,125	169,321	300		21,738	34,978	96,197	386,639
Profit and total comprehensive
income for the period	-		-		-		-	-	-	2,489	2,489
Appropriation to safety reserves	-		-		-		-	-	3,454	(3,454)	-
Balance at 30 June 2022
(Unaudited)	7,980	56,125	169,321	300		21,738	38,432	95,232	389,128

The accompanying notes form an integral part of these condensed consolidated financial statements.

Notes:

1. Statutory reserves
   In accordance with the Company Law of the People's Republic of China ("PRC") and the articles of association of the Group's PRC subsidiary, the Group's PRC subsidiary is required to appropriate 10% of its profits after tax, as determined in accordance with relevant accounting principles generally accepted in the PRC and other applicable regulations, to the statutory reserve until such reserve reaches 50% of its registered capital. The appropriation to the reserve must be made before any distribution of dividends to equity holders of the PRC subsidiary. The statutory reserve can be used to offset previous years' losses, if any, and part of the statutory reserve can be capitalised as the PRC subsidiary's capital provided that the amount of such reserve remaining after the capitalisation shall not be less than 25% of its capital.
2. Safety reserves
   Pursuant to certain regulations issued by the Ministry of Finance and the State Administration of Work Safety of the PRC, the Group's PRC subsidiary is required to set aside an amount to safety reserve at progressive rates from 0.2% to 4% of the total revenue from the sales of hazardous chemical since 14 February 2012. The reserve can be utilised for the spending in improvements and maintenances of work safety on the Group's daily operations, which are considered expenses in nature and charged to the profit and loss as incurred.

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

	Six months ended 30 June
	2022		2021
	RMB'000	RMB'000
	(Unaudited)	(Unaudited)
Cash flows from operating activities
Cash generated from operations	103,289		12,614
Income tax paid	(4,662)	(8,711)
Net cash generated from operating activities	98,627		3,903
Cash flows from investing activities
Purchases of property, plant and equipment	(50)	(123)
Interest income on bank deposit	561		225
Net cash generated from investing activities	511		102
Cash flows from financing activities
Principal elements of lease payments	(273)	(248)
Interest paid	(107)	(132)
Net cash used in financing activities	(380)	(380)
Net increase in cash and cash equivalents	98,758		3,625
Cash and cash equivalents at beginning of the period	7,805		63,695
Exchange differences on cash and cash equivalents	74		28
Cash and cash equivalents at end of the period	106,637		67,348

The accompanying notes form an integral part of these condensed consolidated financial statements.

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NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. GENERAL INFORMATION
   The Company was incorporated in the Cayman Islands on 23 October 2014 as an exempted company with limited liability under the Companies Law Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The address of the Company's registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands.
   The Company is an investment holding company. The Group is principally engaged in the blending and sale of fuel oil, sale of refined oil and other petrochemicals in the People's Republic of China (the "PRC").
   The Company's shares were listed on GEM of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 17 January 2018.
   The ultimate holding company of the Company is Thrive Shine Limited ("Thrive Shine"), a company incorporated in the British Virgin Islands, which is owned as to 80% and 20% by Mr. Xu Ziming ("Mr. Xu") and Ms. Huang Sizhen ("Ms. Huang"), respectively. The ultimate controlling party of the Group is Mr. Xu and Ms. Huang (collectively, the "Controlling Shareholders").
   The unaudited condensed consolidated interim financial statements are presented in Renminbi ("RMB"), unless otherwise stated, and have been approved for issue by the Company's board of directors on 12 August 2022.
2. BASIS OF PREPARATION AND ACCOUNTING POLICIES
   The condensed consolidated interim financial statements of the Group for the six months ended 30 June 2022 have been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34, "Interim Financial Reporting". The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2021, which have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs").
   The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2021, as described in those annual financial statements, except that the Hong Kong Institute of Certified Public Accountants has issued a number of new standards and amendments to HKFRSs which are effective for the current accounting period of the Group. None of those developments have had a material effect on how the Group's results and financial position for the current or prior periods have been prepared or presented. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.
3. ESTIMATES
   The preparation of the condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing the condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation of uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 December 2021.

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