Financial Statements and Related Announcement::Half Yearly Results

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representations as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Tan Chong International Limited

陳唱國際有限公司

(Incorporated in Bermuda with limited liability)

(Stock Code: 693)

INTERIM RESULTS

The board of directors (the "Board") of Tan Chong International Limited (the "Company") wishes to announce the following unaudited results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2021.

Consolidated Statement of Profit or Loss (Unaudited)
for the six months ended 30 June 2021		Six months ended 30 June
	Note	2021	2020
		HK$'000	HK$'000
		(Unaudited)	(Unaudited)
Revenue	3	6,155,538	5,784,063
Cost of sales		(5,127,803)	(4,718,359)
Gross profit		1,027,735	1,065,704
Other net income		169,362	83,914
Distribution costs		(514,470)	(580,171)
Administrative expenses		(493,762)	(512,706)
Other operating expenses		(9,104)	(28,283)
Profit from operations		179,761	28,458
Finance costs		(31,205)	(44,951)
Share of profits less losses of associates		35,519	35,458
Profit before taxation	4	184,075	18,965
Income tax expense	5	(105,493)	(65,082)
Profit/(loss) for the period		78,582	(46,117)
Attributable to:
Equity shareholders of the Company		27,094	(75,285)
Non-controlling interests		51,488	29,168
Profit/(loss) for the period		78,582	(46,117)

Earnings/(loss) per share	7
Basic and diluted (cents)	1.35	(3.74)

- 1 -

Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) for the six months ended 30 June 2021

Six months ended 30 June

20212020

HK$'000 HK$'000

(Unaudited) (Unaudited)

Profit/(loss) for the period	78,582	(46,117)
Other comprehensive income for the period
(after tax and reclassification adjustments)
Items that will not be reclassified to profit or loss:
Remeasurement of net defined benefit liability	(1,938)	5,441
Investments designated as at fair value through
other comprehensive income:
- changes in fair value recognised during the period	(1,362)	(398,162)
	(3,300)	(392,721)
Items that may be reclassified to profit or loss:
Exchange differences on translation of
financial statements of:
- subsidiaries outside Hong Kong	(221,336)	(211,765)
- associates outside Hong Kong	5,534	(18,954)
	(215,802)	(230,719)
Other comprehensive income for the period	(219,102)	(623,440)
Total comprehensive income for the period	(140,520)	(669,557)
Attributable to:
Equity shareholders of the Company	(112,733)	(689,007)
Non-controlling interests	(27,787)	19,450
Total comprehensive income for the period	(140,520)	(669,557)

- 2 -

Consolidated Statement of Financial Position (Unaudited)
at 30 June 2021
		At	At
		30 June	31 December
	Note	2021	2020
		HK$'000	HK$'000
		(Unaudited)	(Audited)
Non-current assets
Investment properties		3,644,113	3,707,785
Other property, plant and equipment		5,120,998	5,085,397
Intangible assets		64,533	77,117
Goodwill		36,487	45,772
Interest in associates		886,495	868,010
Other financial assets		54,972	42,380
Hire purchase debtors and instalments receivable		116,419	139,201
Receivables, deposits and prepayments		126,144	135,489
Deferred tax assets		57,628	58,586
		10,107,789	10,159,737
Current assets
Investments designated as at fair value through
other comprehensive income	8	1,758,903	1,771,051
Inventories		1,813,448	1,825,709
Trade debtors	9	1,147,686	1,107,760
Hire purchase debtors and instalments receivable		89,164	97,515
Other debtors, deposits and prepayments		482,265	436,840
Amounts due from related companies		326	970
Cash and bank balances		2,433,795	2,539,772
		7,725,587	7,779,617
Current liabilities
Unsecured bank overdrafts		101,141	78,169
Bank loans		1,615,183	1,769,374
Trade creditors	10	811,079	813,235
Other creditors and accruals		1,128,686	1,064,385
Amounts due to related companies		11,318	10,607
Lease liabilities		264,525	247,942
Current taxation		132,158	116,156
Provisions		30,508	33,621
		4,094,598	4,133,489
Net current assets		3,630,989	3,646,128
Total assets less current liabilities		13,738,778	13,805,865

- 3 -

Consolidated Statement of Financial Position (Unaudited) (continued) at 30 June 2021

	At	At
	30 June	31 December
	2021	2020
	HK$'000	HK$'000
	(Unaudited)	(Audited)
Non-current liabilities
Bank loans	854,738	897,764
Lease liabilities	686,015	501,544
Net defined benefit retirement obligations	70,297	76,578
Deferred tax liabilities	100,049	99,015
Provisions	54,784	49,839
	1,765,883	1,624,740
NET ASSETS	11,972,895	12,181,125
Capital and Reserves
Share capital	1,006,655	1,006,655
Reserves	9,676,274	9,848,870
Total equity attributable to equity
shareholders of the Company	10,682,929	10,855,525
Non-controlling interests	1,289,966	1,325,600
TOTAL EQUITY	11,972,895	12,181,125

- 4 -

Notes:

1. Basis of preparation
2. 
   The unaudited consolidated interim financial statements have been prepared in accordance with the requirements of the Listing Rules of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), including compliance with International Accounting Standard 34, Interim Financial Reporting, issued by the International Accounting Standards Board.
   The unaudited consolidated interim financial statements have been prepared in accordance with the same accounting policies adopted in the 2020 annual financial statements, except for the accounting policy changes that are expected to be reflected in the 2021 annual financial statements.
3. Changes in accounting policies
4. • 
     The Group has applied the following amendments to IFRSs issued by the International Accounting Standards Board ("IASB") to these financial statements for the current accounting period:
   • Amendment to IFRS 16, COVID-19-related rent concessions beyond 30 June 2021
   • Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, Interest rate benchmark reform - phase 2

Other than the amendment to IFRS 16, the Group has not applied any new standard or interpretation that is not yet effective for the current accounting period. Impacts of the adoption of the amended IFRSs are discussed below:

Amendment to IFRS 16, COVID-19-related rent concessions beyond 30 June 2021 (2021 amendment)

The Group previously applied the practical expedient in IFRS 16 such that as lessee it was not required to assess whether rent concessions occurring as a direct consequence of the COVID-19 pandemic were lease modifications, if the eligibility conditions are met. One of these conditions requires the reduction in lease payments affect only payments originally due on or before a specified time limit. The 2021 amendment extends this time limit from 30 June 2021 to 30 June 2022.

The Group has early adopted the 2021 amendment in this financial year. There is no impact on the opening balance of equity at 1 January 2021.

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, Interest rate benchmark reform - phase 2

The amendments provide targeted reliefs from (i) accounting for changes in the basis for determining contractual cash flows of financial assets, financial liabilities, and lease liabilities as modifications, and (ii) discontinuing hedge accounting when an interest rate benchmark is replaced by an alternative benchmark rate as a result of the reform of interbank offered rates ("IBOR reform"). The amendments do not have an impact on these financial statements as the Group does not have contracts that are indexed to benchmark interest rates which are subject to the IBOR reform.

- 5 -