Tristate : Announcement of 2016 Annual 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 representation 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.

ANNOUNCEMENT OF 2016 ANNUAL RESULTS

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FINANCIAL SUMMARY OF 2016 ANNUAL RESULTS

Revenue of HK$2,254 million

Loss attributable to equity shareholders of HK$84 million Loss per share of HK$0.31

RESULTS

The board of directors (the "Board") of Tristate Holdings Limited (the "Company") presents the consolidated results of the Company and its subsidiaries (together, the "Group") for the year ended 31 December 2016 together with comparative figures for 2015.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the year ended 31 December 2016

Note	2016 HK$'000	2015 HK$'000
Revenue	2, 3	2,253,655	2,515,738
Cost of sales	(1,724,106)	(1,934,316)
Gross profit	529,549	581,422
Other income and other gains	4	87,777	188,021
Selling and distribution expenses	(174,103)	(227,265)
General and administrative expenses	(506,425)	(541,363)
Restructuring costs	5	-	(15,675)
Loss from operations	6	(63,202)	(14,860)
Finance income	7	7,217	13,953
Finance costs	7	(5,942)	(8,510)
Loss before tax	(61,927)	(9,417)
Income tax expense	8	(24,684)	(36,274)
Loss for the year	(86,611)	(45,691)
Attributable to: Equity shareholders of the Company	(84,091)	(45,669)
Non-controlling interests	(2,520)	(22)
Loss for the year	(86,611)	(45,691)
Loss per share attributable to equity shareholders of the Company:
Basic	10	HK$(0.31)	HK$(0.17)
Diluted	10	HK$(0.31)	HK$(0.17)

Details of dividends payable to equity shareholders of the Company are set out in Note 9.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2016

2016 HK$'000	2015 HK$'000
Loss for the year	(86,611)	(45,691)
Other comprehensive income, net of nil tax unless specified:
Items that may be reclassified subsequently to profit or loss
Fair value losses on cash flow hedges
Losses arising during the year	(24,912)	(37,253)
Transferred to and included in the following line items
in the consolidated statement of profit or loss:
Cost of sales	9,886	4,185
General and administrative expenses	2,487	3,265

Exchange difference on translation of financial statements of overseas subsidiaries

Losses arising during the year (48,603) (80,634)

Reclassification adjustment for translation reserve transferred to consolidated statement of profit or loss

upon liquidation of a subsidiary - 838

Items that will not be reclassified to profit or loss

Remeasurements of defined benefit plans and

long service payment liabilities	2,044	(1,429)
Income tax effect	(515)	720
Other comprehensive income for the year	(59,613)	(110,308)
Total comprehensive income for the year	(146,224)	(155,999)
Attributable to:
Equity shareholders of the Company	(143,704)	(155,977)
Non-controlling interests	(2,520)	(22)
Total comprehensive income for the year	(146,224)	(155,999)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2016

As at 31 December 2016	As at 31 December 2015
Note	HK$'000	HK$'000
Non-Current Assets
Property, plant and equipment	332,149	402,893
Leasehold land and land use rights	130,863	143,356
Intangible assets	189,527	185,822
Other long-term assets	10,809	20,629
Prepayments and other receivables	-	30,452
Deferred tax assets	5,782	29,874
Defined benefit plan assets	7,735	8,043
Interest in an associate	-	-
676,865	821,069
Current Assets
Inventories	242,527	273,804
Accounts receivable and bills receivable	11	278,451	314,590
Forward foreign exchange contracts	316	-
Prepayments and other receivables	155,379	146,631
Cash and bank balances	523,241	666,134
1,199,914	1,401,159
Current Liabilities
Accounts payable and bills payable	12	88,129	92,830
Accruals and other payables	210,848	276,932
Forward foreign exchange contracts	19,629	13,917
Current tax liabilities	10,422	34,505
Bank borrowings	198,905	325,294
527,933	743,478
Net Current Assets	671,981	657,681
Total Assets Less Current Liabilities	1,348,846	1,478,750
Non-Current Liabilities
Retirement benefits and other post retirement
obligations	19,812		21,416
License fees payable	24,938		-
Deferred tax liabilities	31,434		45,942
Forward foreign exchange contracts	36,689		29,546
112,873		96,904
Net Assets	1,235,973		1,381,846
Capital and Reserves
Share capital	27,161		27,161
Reserves	1,210,960		1,354,371
Total equity attributable to equity shareholders
of the Company	1,238,121		1,381,532
Non-controlling interests	(2,148)		314
Total Equity	1,235,973		1,381,846

Notes:

1. Statement of Compliance and Basis of Preparation of the Financial Statements

The consolidated results set out in this announcement do not constitute the Group's annual consolidated financial statements for the year ended 31 December 2016 but are extracted from those financial statements.

The basis of preparation and significant accounting policies applied in the preparation of the consolidated financial statements have been consistently applied to all the years presented, unless otherwise stated.

The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. These financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The consolidated financial statements for the year ended 31 December 2016 comprise the Group and the Group's interest in an associate.

The measurement basis used in the preparation of the financial statements is the historical cost basis except that the derivative financial instruments are stated at their fair values.

The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The HKICPA has issued a number of amendments to HKFRSs that are first effective for the current accounting period of the Group. None of these developments have had a material effect on how the Group's results and financial position for the current or prior periods have been prepared or presented.

The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.