Lai Sun Garment International : ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 2022

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ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 JANUARY 2022

RESULTS

The board of directors (the "Board") of Lai Sun Garment (International) Limited (the "Company") announces the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 31 January 2022 together with the comparative figures of the last corresponding period as follows:

Condensed Consolidated Income Statement

For the six months ended 31 January 2022

Six months ended

31 January 2022

2021

Notes	(Unaudited)	(Unaudited)
HK$'000	HK$'000
TURNOVER	4	2,770,827	2,794,119
Cost of sales	(1,761,779)	(2,136,568)
Gross profit	1,009,048	657,551
Other revenue and gains	155,649	434,257
Selling and marketing expenses	(139,849)	(93,380)
Administrative expenses	(465,057)	(487,313)
Other operating expenses	(748,880)	(759,512)
Fair value gains/(losses) on investment properties, net	12,692	(475,890)
LOSS FROM OPERATING ACTIVITIES	5	(176,397)	(724,287)
Finance costs	6	(495,667)	(381,418)
Share of profits and losses of associates	2,079	(11,088)
Share of profits and losses of joint ventures	87,283	(328,933)
LOSS BEFORE TAX	(582,702)	(1,445,726)
Tax	7	(132,469)	(197,986)
LOSS FOR THE PERIOD	(715,171)	(1,643,712)
Attributable to:
Owners of the Company	(323,785)	(797,153)
Non-controlling interests	(391,386)	(846,559)
(715,171)	(1,643,712)
LOSS PER SHARE ATTRIBUTABLE TO
OWNERS OF THE COMPANY	8	(Adjusted)
Basic and diluted	(HK$0.551)	(HK$1.658)

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 31 January 2022

Six months ended

31 January 2022

(Unaudited)

2021

(Unaudited)

HK$'000

HK$'000

LOSS FOR THE PERIOD

(715,171)

(1,643,712)OTHER COMPREHENSIVE INCOME/(EXPENSE) Other comprehensive income/(expense) that may be reclassified to profit or loss in subsequent periods: Changes in fair values of financial assets at fair value through other comprehensive income Exchange realignments

Share of other comprehensive (expense)/income of associates Share of other comprehensive expense of joint ventures Release of exchange reserve upon dissolution and deregistration of subsidiaries

Reclassification of reserve upon return of capital from a subsidiary

(437) 287,764

(805) (2,613)

(176)

29,965 313,698

1,302 2,003,098 3,295 (2,582)

974

- 2,006,087

Other comprehensive expense that will not be reclassified to profit or loss in subsequent periods: Changes in fair values of financial assets at fair value through other comprehensive incomeOTHER COMPREHENSIVE INCOME

FOR THE PERIOD

TOTAL COMPREHENSIVE (EXPENSE)/INCOME

FOR THE PERIOD

Attributable to:

Owners of the Company Non-controlling interests

(17,537)

296,161

(419,010)

(16,218)

1,989,869

346,157

(266,230)

(142,152)

(152,780) 488,309

(419,010) 346,157

Condensed Consolidated Statement of Financial Position

31 January	31 July
2022	2021
Notes	(Unaudited)	(Audited)
HK$'000	HK$'000
NON-CURRENT ASSETS
Property, plant and equipment	7,636,496	7,710,358
Right-of-use assets	5,160,548	5,304,503
Investment properties	40,543,372	39,788,552
Film rights	11,675	15,109
Film and TV program products	56,914	54,838
Music catalogs	974	3,124
Goodwill	260,849	274,423
Other intangible assets	142,827	150,853
Investments in associates	293,556	290,278
Investments in joint ventures	7,047,743	7,124,459
Financial assets at fair value through other
comprehensive income	1,800,557	1,817,403
Financial assets at fair value through profit or loss	964,287	1,111,482
Derivative financial instruments	-	191
Debtors	9	541,606	526,687
Deposits, prepayments, other receivables and other assets	310,700	277,784
Deferred tax assets	2,188	2,147
Pledged and restricted bank balances and time deposits	78,063	71,483
Total non-current assets	64,852,355	64,523,674
CURRENT ASSETS
Properties under development	3,875,228	2,077,261
Completed properties for sale	6,841,009	7,374,096
Films and TV programs under production
and film investments	337,442	235,844
Inventories	54,328	48,851
Financial assets at fair value through profit or loss	256,046	183,290
Derivative financial instruments	3,529	-
Debtors	9	317,691	349,351
Deposits, prepayments, other receivables and other assets	1,844,882	960,501
Prepaid tax	36,784	53,100
Pledged and restricted bank balances and time deposits	2,599,539	4,959,423
Cash and cash equivalents	6,576,092	8,738,747
22,742,570	24,980,464
Assets classified as held for sale	1,938	5,273
Total current assets	22,744,508	24,985,737

Condensed Consolidated Statement of Financial Position (continued)

31 January	31 July
2022	2021
Notes	(Unaudited)	(Audited)
HK$'000	HK$'000
CURRENT LIABILITIES
Creditors, other payables and accruals	10	3,106,136	3,513,230
Temporary receipt	-	2,637,580
Deposits received, deferred income and contract liabilities	1,543,245	1,446,335
Derivative financial instruments	6,988	-
Lease liabilities	269,391	281,997
Tax payable	659,562	551,009
Bank borrowings	1,465,601	3,193,624
Other borrowings	41,281	41,159
Guaranteed notes	5,807,410	-
Total current liabilities	12,899,614	11,664,934
NET CURRENT ASSETS	9,844,894	13,320,803
TOTAL ASSETS LESS CURRENT LIABILITIES	74,697,249	77,844,477
NON-CURRENT LIABILITIES
Lease liabilities	1,010,367	1,103,276
Bank borrowings	16,031,548	15,980,762
Other borrowings	716,889	707,350
Guaranteed notes	4,250,564	7,692,495
Derivative financial instruments	-	8,965
Deferred tax liabilities	5,275,560	5,322,668
Other payables and accruals	10	1,018,429	1,001,169
Long-term deposits received	238,956	216,253
Total non-current liabilities	28,542,313	32,032,938
46,154,936	45,811,539
EQUITY
Equity attributable to owners of the Company
Share capital	11	1,731,861	1,297,237
Reserves	18,865,833	20,429,648
20,597,694	21,726,885
Non-controlling interests	25,557,242	24,084,654
46,154,936	45,811,539

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

• 1. BASIS OF PREPARATION

  The unaudited condensed consolidated interim financial statements of the Group for the six months ended 31 January 2022 have been prepared in accordance with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and with Hong Kong Accounting Standard ("HKAS") 34 Interim Financial Reporting issued by the Hong Kong Institute of Certified Public Accountants.

  The financial information relating to the year ended 31 July 2021 that is included in the unaudited condensed consolidated interim financial statements of the Group for the six months ended 31 January 2022 as comparative information does not constitute the Company's statutory annual consolidated financial statements for that year but is derived from those financial statements. Further information relating to those statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance is as follows:

  The Company has delivered the financial statements for the year ended 31 July 2021 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to the Hong Kong Companies Ordinance.

  The Company's auditor has reported on those financial statements. The auditor's report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections 406(2), 407(2) or (3) of the Hong Kong Companies Ordinance.

  The condensed consolidated interim financial statements have not been audited by the Company's auditor but have been reviewed by the Company's audit committee.

• 2. SIGNIFICANT ACCOUNTING POLICIES

  The significant accounting policies and basis of presentation used in the preparation of these interim financial statements are the same as those used in the Group's audited consolidated financial statements for the year ended 31 July 2021.

  The Group has adopted the revised Hong Kong Financial Reporting Standards ("HKFRSs", which also include HKASs and Interpretations) which are applicable to the Group and are effective in the current period. The adoption of these revised HKFRSs has had no significant impact on the financial performance or financial position of the Group.