Shoucheng : FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

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(Incorporated in Hong Kong with limited liability)

(Stock Code: 697)

FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021

FINANCIAL HIGHLIGHTS

• - The Group recorded revenue of HK$1,195 million, representing an increase of 69% from last year, the Group recorded gross profit of HK$547 million, representing an increase of 214% from last year.

• - The Group recorded operating profit of HK$569 million, representing an increase of 818% from last year.

• - The Group recorded loss attributable to owners of the Company of HK$1,095 million as compared to profit attributable to owners of the Company of HK$659 million of last year, mainly due to the provision for impairment of investment in an associate of HK$1,615 million for the year in respect of an associate of the Company, Shougang Fushan Resources Group Limited ("Shougang Resources"), which took into account the recent market price and cost to sell of Shougang Resources.

• - The basic loss per share for the year was HK15.19 cents, representing a decrease of HK24.81 cents compared to basic earnings per share of HK9.62 cents of last year.

• - The diluted loss per share for the year was HK15.19 cents, representing a decrease of HK24.76 cents compared to diluted earnings per share of HK9.57 cents of last year.

The Board has recommended to declare a final dividend in the total amount of HK$400 million for the year ended 31 December 2021 (2020: HK$400 million).

The Board declared an interim dividend of HK$300 million, and a total of HK$700 million will be declared for the year ended 31 December 2021.

On 15 February 2022, the Board declared a special dividend in the aggregate amount of HK$200 million, comprising the first tranche of special dividend of HK$100 million was paid on 14 March 2022. The second tranche of HK$100 million is payable on 31 October 2022.

The board of directors (the "Board") of Shoucheng Holdings Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2021 with comparative figures for the year ended 31 December 2020. These final results have been reviewed by the Audit Committee of the Company.

2021	2020
Note	HK$'000	HK$'000
Revenue	3	1,195,031	705,854
Cost of sales	(647,828)	(531,460)
Gross profit	547,203	174,394
Other income, net	307,617	138,641
Other gains, net	128,016	822
Write-off of trade receivables	(69,013)	-
Provision for impairment loss for trade receivables	(1,718)	(1,071)
Administrative expenses	(343,154)	(250,972)
Operating profit	568,951	61,814
Finance costs	(74,343)	(77,168)
Provision for impairment of investment
in an associate	(1,615,179)	-
Share of results of associates	16,632	343,320
Share of results of joint ventures	114,826	344,069
(Loss)/profit before income tax	(989,113)	672,035
Income tax expense	4	(124,413)	(36,565)
(Loss)/profit for the year	(1,113,526)	635,470
(Loss)/profit is attributable to:
Owners of the Company	(1,095,327)	658,613
Non-controlling interests	(18,199)	(23,143)
(1,113,526)	635,470

Note

2021 HK$'000

2020 HK$'000

Other comprehensive income/(loss)

Items that have been/may be subsequently reclassified to profit or loss:

Exchange differences arising on translation of foreign operations

Share of exchange differences of associates and joint ventures arising on translation of foreign operations

Item that will not be reclassified to profit or loss:

Fair value changes on financial assets at fair value through other comprehensive income ("FVOCI") Share of fair value change on investment in equity instruments designated at FVOCI of an associate

10,098 125,339

27,577 154,656

(14,975)

8,253

-

(402)

Other comprehensive income for the year

30,953 279,593

• Total comprehensive (loss)/income for the year (1,082,573) 915,063

  Total comprehensive (loss)/income attributable to:

• Owners of the Company (1,064,630) 919,766

Non-controlling interests

(Loss)/earnings per share for (loss)/profit attributable to the owners of the Company:

Basic (loss)/earnings per share (HK cents)

Diluted (loss)/earnings per share (HK cents)

(17,943)

(4,703)

(1,082,573) 915,063

5(a) 5(b)

(15.19) 9.62

(15.19) 9.57

2021	2020
Note	HK$'000	HK$'000
ASSETS
Non-current assets
Property, plant and equipment	35,663	39,748
Right-of-use assets	2,204,768	1,753,170
Contract assets in respect of
service concession arrangements	124,017	88,274
Investment properties	257,466	158,521
Investments in associates	6	173,538	5,269,687
Investments in joint ventures	854,694	656,143
Investments - non-current	1,075,915	709,910
Prepayments and deposits	132,994	296,736
Deferred income tax assets	3,304	16
Other non-current assets	413,607	338,970
Total non-current assets	5,275,966	9,311,175
Current assets
Trade receivables	7	135,144	190,674
Prepayments, deposits and other receivables	262,947	333,564
Investments - current	1,523,213	514,796
Restricted bank deposits	-	36,890
Time deposits with maturity over three months	100,000	-
Bank balances and cash	2,573,462	3,738,533
4,594,766	4,814,457
Asset classified as held for sale	3,511,510	-
Total current assets	8,106,276	4,814,457
Total assets	13,382,242	14,125,632
EQUITY
Capital and reserves
Share capital	9	12,546,847	12,127,547
Reserves	(2,406,210)	(355,257)
Capital and reserves attributable to owners of
the Company	10,140,637	11,772,290
Non-controlling interests	87,770	147,008
Total equity	10,228,407	11,919,298

2021	2020
Note	HK$'000	HK$'000
LIABILITIES
Non-current liabilities
Borrowings - non-current	573,605	476,832
Lease liabilities - non-current	1,512,358	1,011,584
Deferred income tax liabilities	59,796	18,063
Total non-current liabilities	2,145,759	1,506,479
Current liabilities
Trade payables	8	389,337	204,622
Other payables, provision and accrued liabilities	240,159	216,404
Contract liabilities	23,822	89,070
Tax payable	98,446	60,831
Borrowings - current	179,037	6,100
Lease liabilities - current	77,275	122,828
Total current liabilities	1,008,076	699,855
Total liabilities	3,153,835	2,206,334
Total equity and liabilities	13,382,242	14,125,632