Kingston Financial : 28/11/2018 UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

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KINGSTON FINANCIAL GROUP LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 01031)

UNAUDITED INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

FINANCIAL HIGHLIGHTS

• • Turnover for the six months ended 30 September 2018 decreased by approximately 3%

  to approximately HK$1,571,468,000 when compared to approximately

  HK$1,616,034,000 in the corresponding period of last year.

• • Profit attributable to the owners of the Company for the six months ended 30 September 2018 decreased by approximately 35% to approximately HK$592,157,000 when compared to approximately HK$908,887,000 in the corresponding period of last year, which was mainly due to a one-time written-off of the Group's intangible assets amounted to approximately HK$266,157,000 during the period under review.

• • Earnings per share for the six months ended 30 September 2018 decreased by approximately 35% to approximately HK3.41 cents when compared to approximately HK5.23 cents in the corresponding period of last year.

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The Board of Directors ("the Board") of Kingston Financial Group Limited (the "Company") is pleased to announce the unaudited condensed consolidated interim results of the Company and its subsidiaries (collectively, "the Group") for the six months ended 30 September 2018 together with comparative figures for the six months ended 30 September 2017.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 September 2018

Six months ended

30 September 2018

2017

(unaudited)	(unaudited)
Notes	HK$'000	HK$'000
Revenue	2	1,571,468	1,616,034
Other income	13,822	16,771
1,585,290	1,632,805
Inventory consumed	(11,110)	(10,267)
Staff costs	3	(148,912)	(149,534)
Gaming commission	(48,151)	(41,252)
Broker commission	(13,187)	(22,730)
Interest expenses for securities brokerage,
underwriting and placements, margin and
IPO financing operations	(139,995)	(128,119)
Depreciation	(52,064)	(54,622)
Impairment loss on advances to customers
in margin financing	(1,613)	-
Written-off of intangible assets	(266,157)	-
Administrative expenses	(53,910)	(60,736)
Other operating expenses	(64,135)	(64,261)
(799,234)	(531,521)
Finance income	8,798	7,436
Finance cost	(15,176)	(15,197)
Fair value loss on held for trading investments	-	(1,776)
Fair value loss on financial assets at
fair value through profit or loss	(25,653)	-
Exchange gain	1,907	530
Amortisation	-	(7,066)
(30,124)	(16,073)
Profit before taxation	4	755,932	1,085,211
Taxation	5	(160,407)	(173,923)
Profit for the period	595,525	911,288

Six months ended

30 September 2018

(unaudited)

2017

(unaudited)

Notes

Profit for the period

Other comprehensive income

Item that will not be reclassified to profit or loss:

Surplus on revaluation of leasehold

land and buildings 8

Change in fair value of financial assets at fair value through other comprehensive income Item that may be reclassified subsequently to profit or loss:

Unrealised loss arising from change in fair value of available-for-sale investments

HK$'000

HK$'000

595,525 911,288

•

•

39,101 37,078

(167)

-

-

(99)

Other comprehensive income for the period, net of tax

38,934

36,979

Total comprehensive income for the period

Profit for the period attributable to:

Owners of the Company Non-controlling interests

Total comprehensive income attributable to:

Owners of the Company

Non-controlling interests

Earnings per share (cents per share) 7 - Basic - Diluted

634,459 948,267

592,157 908,887

3,368 2,401

595,525 911,288

631,091 945,866

3,368 2,401

634,459 948,267

3.41 5.23

3.41 5.23

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 September 2018

30 September	31 March
2018	2018
(unaudited)	(audited)
Notes	HK$'000	HK$'000
Non-current assets
Property, plant and equipment	8	2,848,522	2,848,724
Statutory deposit for financial services business	5,307	10,281
Goodwill	10,996,683	10,996,683
Intangible assets	9	-	266,157
13,850,512	14,121,845
Current assets
Inventories	2,402	2,390
Available-for-sale investments	-	410
Financial assets at fair value through
other comprehensive income	243	-
Held for trading investments	-	192,805
Financial assets at fair value through profit or loss	167,268	-
Advances to customers in margin financing	10	20,909,474	20,582,355
Trade and other receivables	11	142,709	152,521
Tax recoverable	97,175	97,175
Cash and bank balances
- held on behalf of customers	1,333,461	2,049,601
Cash and bank balances
- general accounts	615,897	395,793
23,268,629	23,473,050
Current liabilities
Trade and other payables	12	1,589,533	2,284,507
Amounts due to shareholders	4,196,911	4,219,911
Loan from a related company	6,297,143	7,142,999
Subordinated loans	700,000	700,000
Bank loans	2,009,300	1,710,000
Tax payable	155,129	65,217
14,948,016	16,122,634
Net current assets	8,320,613	7,350,416
Total assets less current liabilities	22,171,125	21,472,261

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30 September	31 March
2018	2018
(unaudited)	(audited)
HK$'000	HK$'000
Non-current liabilities
Bank loans	1,060,000	640,000
Deferred tax liabilities	195,236	192,901
Total non-current liabilities	1,255,236	832,901
Total liabilities	16,203,252	16,955,535
Net assets	20,915,889	20,639,360
Capital and reserves
Share capital - ordinary shares	272,290	272,290
Share capital - non-redeemable
convertible preference shares	75,000	75,000
Reserves	20,549,625	20,276,464
Total equity attributable to owners of
the Company	20,896,915	20,623,754
Non-controlling interests	18,974	15,606
Total equity	20,915,889	20,639,360

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