Newton Resources : Announcements and Notices - Interim Results for the Six-month Period Ended 30 June 2019

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1231)

INTERIM RESULTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2019

The Board wishes to announce the unaudited consolidated interim results of the Group for the Reporting Period together with the comparative figures for the Corresponding Prior Period as follows:

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Six-month period ended 30 June 2019

		Six-month period
		ended 30 June
		2019		2018
	Notes	RMB'000	RMB'000
		(Unaudited)	(Unaudited)
				(Restated)
Continuing operations
Revenue	4	359,364		117,168
Cost of sales		(338,788)	(116,542)
Gross profit		20,576		626
Other income and gains		304		-
Selling and distribution costs		(291)	(268)
Administrative expenses		(15,149)	(13,438)
Impairment losses on property, plant and equipment		-	(57,782)
Impairment losses on intangible assets		-	(216)
Impairment losses on prepaid land lease payments		-	(296)
Impairment losses on prepayments and other receivables		(6,650)	(881)
Impairment losses on other current financial assets		(750)
at amortised cost		-
Other expenses		(7,888)	(7,779)
Finance expense, net	6	(1,677)	(4,172)
Share of losses of an associate		(50)	(13)
Loss before tax from continuing operations	5	(11,575)	(84,219)
Income tax expenses	7	(3,141)	-
Loss for the period from continuing operations		(14,716)	(84,219)
Discontinued operation
	-
Loss for the period from a discontinued operation	8	(643)
Loss for the period		(14,716)	(84,862)

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		Six-month period
		ended 30 June
		2019		2018
	Notes	RMB'000	RMB'000
		(Unaudited)	(Unaudited)
					(Restated)
Other comprehensive income
Other comprehensive income that may be reclassified to
profit or loss in the subsequent periods:		151
Exchange differences on translation of foreign operations			(12)
Net other comprehensive income that may be
	151
reclassified to profit or loss in the subsequent periods			(12)
Other comprehensive income for the period, net of tax		151		(12)
Total comprehensive income for the period		(14,565)	(84,874)
Loss for the period attributable to owners of the Company:
	(14,485)
- from continuing operations		(83,470)
- from a discontinued operation		-		(334)
		(14,485)	(83,804)
Loss for the period attributable to non-controlling interests:
	(231)
- from continuing operations		(749)
- from a discontinued operation		-		(309)
		(231)	(1,058)
Loss for the period		(14,716)	(84,862)
Total comprehensive income attributable to:
	(14,334)
Owners of the Company		(83,801)
Non-controlling interests		(231)	(1,073)
		(14,565)	(84,874)
LOSS PER SHARE ATTRIBUTABLE TO
ORDINARY EQUITY HOLDERS OF THE COMPANY	10
Basic and diluted (RMB cents)		(0.36)
- For loss for the period		(2.10)
- For loss from continuing operations		(0.36)	(2.09)

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30 June 2019

		30 June	31 December
	Notes	2019		2018
	RMB'000	RMB'000
		(Unaudited)	(Audited)
Non-current assets	11	201,644		203,536
Property, plant and equipment
Intangible assets	12	722		722
Right-of-use assets		958		-
Prepaid land lease payments		-	942
Investment in an associate		1,395		1,445
		204,719		206,645
Current assets
	1,194		2,844
Inventories	13
Trade and bills receivables	153,470		-
Other current financial assets at amortised cost	14	51,139		58,955
Prepayments and other receivables	14	14,743		25,461
Financial assets at fair value through profit or loss	831		-
Restricted bank deposits	15	392,706		219,050
Cash and cash equivalents	16	145,406		97,953
		759,489		404,263
Current liabilities
17	151,799		1,125
Trade and bills payables
Other current financial liabilities	14	92,001		84,193
Contract liabilities		7,406		10,007
Other payables and accruals		7,335		8,138
Interest-bearing bank and other borrowings		428,720		219,050
Income tax payables		11,056		7,939
		698,317		330,452
Net current assets		61,172		73,811
Total assets less current liabilities		265,891		280,456
Non-current liabilities
14	500		500
Non-current financial liabilities
		500		500
Net assets		265,391		279,956
Equity
Equity attributable to owners of the Company		331,960		331,960
Share capital
Reserves		(61,967)	(47,633)
		269,993		284,327
Non-controlling interests		(4,602)	(4,371)
Total equity		265,391		279,956

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NOTES:

1. CORPORATE INFORMATION
   The Company is a limited liability company incorporated in the Cayman Islands. The registered office of the Company is located at P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands.
   During the period, the principal activity of the Company was investment holding and the principal activities of its subsidiaries included trading business and mining, processing and sale of iron concentrates and gabbro-diabase and stone products.
2. BASIS OF PREPARATION AND CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES
3. 1. Basis of Preparation
      The interim condensed consolidated financial information for the six-month period ended 30 June 2019 (the "Interim Financial Information") has been prepared in accordance with International Accounting Standard ("IAS") 34 Interim Financial Reporting issued by the International Accounting Standards Board and the disclosure requirements of Appendix 16 to the Listing Rules.
      In August 2018, the Group's entire interests in the car-park business (the "Car-Park Business") had been disposed and the Group ceased and discontinued the Car-Park Business. In accordance with IFRS 5 Non-currentAssets Held for Sale and Discontinued Operations , the Car-Park Business was classified as a discontinued operation and the operating results of the Car-Park Business has been presented as a discontinued operation (the "Discontinued Operation") in the interim condensed consolidated statement of profit or loss and other comprehensive income for the six-month period ended 30 June 2019. The comparative figures for the interim condensed consolidated statement of profit or loss and other comprehensive income and related notes have been restated to reflect the reclassification between continuing operations and the discontinued operation accordingly.
      The Interim Financial Information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with 2018 Annual Report.
   2. Changes in Accounting Policies and Disclosures

The accounting policies adopted in the preparation of the Interim Financial Information are consistent with those applied in the preparation of 2018 Annual Report, except for the adoption of the new and revised International Financial Reporting Standards ("IFRSs") effective as of 1 January 2019. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Amendments to IFRS 9	Prepayment Features with Negative Compensation
IFRS 16	Leases
Amendments to IAS 19	Plan Amendment, Curtailment or Settlement
Amendments to IAS 28	Long-term Interests in Associates and Joint Ventures
IFRIC 23	Uncertainty over Income Tax Treatments
Annual Improvements 2015-2017 Cycle	Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23

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Other than as explained below regarding the impact of IFRS 16 Leases , Amendments to IAS 28 Long-termInterests in Associates and Joint Ventures and IFRIC 23 Uncertainty over Income Tax Treatments , the new and revised standards are not relevant to the preparation of the Interim Financial Information. The nature and impact of the new and revised IFRSs are described below:

1. IFRS 16 replaces IAS 17 Leases , IFRIC 4 Determining whether an Arrangement contains a Lease , SIC-15 Operating Leases - Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease . The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balancesheet model. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 did not have any financial impact on leases where the Group is the lessor.

The Group adopted IFRS 16 using the modified retrospective method of adoption with the date of initial application of 1 January 2019. Under this method, the standard is applied retrospectively with the cumulative effect of initial adoption as an adjustment to the opening balance of equity at 1 January 2019, and the comparative information for 2018 was not restated and continues to be reported under IAS 17.

New definition of a lease

Under IFRS 16, a contract is, or contains a lease if the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. Control is conveyed where the customer has both the right to obtain substantially all of the economic benefits from use of the identified asset and the right to direct the use of the identified asset. The Group elected to use the transition practical expedient allowing the standard to be applied only to contracts that were previously identified as leases applying IAS 17 and IFRIC 4. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered into or changed on or after 1 January 2019.

At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease and non-lease component on the basis of their standard- alone prices. A practical expedient is available to a lessee, which the Group has adopted, not to separate non-lease components and to account for the lease and the associated non-lease components (e.g., property management services for leases of properties) as a single lease component.

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