DJ HK Bourse: Results Announcement From Addchance Holdings Ltd.
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https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0802/2020080200083.pdf ANNOUNCEMENT OF UNAUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019
UNAUDITED ANNUAL RESULTS
For the reasons explained below in the paragraph of "Review of Financial Information", the audit
process of the annual results of GTI Holdings Limited (the "Company") and its subsidiaries (the
"Group") for the year ended 31 December 2019 has not been completed and the Company is unable to
publish an annual results announcement that has been agreed with the Company's auditor by 31 March
2020 in accordance with Rule 13.49 of the Rules Governing the Listing of Securities (the "Listing
Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").
In the meantime, the board of directors (the "Board") of the Company announces that the unaudited
consolidated results of the Group for the year ended 31 December 2019 with comparative figures for the
previous corresponding year are as follows: 1
UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the year ended 31 December 2019 2019 2018 HK$'000 Notes HK$'000 (unaudited) (audited) 704,356 4
Revenue 611,052 (735,299)
Cost of sales (618,282)
Gross loss (30,943) (7,230) 647
Interest revenue 63 15,548 5
Other income 7,917 201
Share of results of associates - (357,928) 6
Other gains and losses (33,799) (15,298)
Selling and distribution costs (28,518) (92,997)
Administrative expenses (126,066) (123,440)
Finance costs (87,049)
Loss before tax (604,210) (274,682) (3,666) 7
Income tax expense (742)
Loss for the year (607,876) 8 (275,424)
Other comprehensive income/(loss):
Items that will not be reclassified to profit or loss:
Fair value changes of equity investment at fair value (5,412) through other comprehensive income 1,275
Items that may be reclassified to profit or loss:
Exchange differences arising on translation of foreign (198) operations (5,837)
Share of foreign currency translation reserve of an (393) associate -
Reclassification of translation reserve to profit or loss (9,776) upon disposal of a subsidiary/subsidiaries 7,271 (10,367) 1,434
Total comprehensive loss for the year (623,655) (272,715) 2 2019 2018 HK$'000 Notes HK$'000 (unaudited) (audited)
Loss for the year attributable to: (560,729) Owners of the Company (275,391) (47,147) Non-controlling interests (33) (607,876) (275,424)
Total comprehensive loss for the year attributable to: (576,362) Owners of the Company (272,682) (47,293) Non-controlling interests (33) (623,655) (272,715)
Loss per share 10 (9.00)
Basic and diluted (HK cents) (5.09) 3
UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2019 2019 2018 HK$'000 Notes HK$'000 (unaudited) (audited)
Non-current assets 108,983
Property, plant and equipment 186,351 -
Prepaid lease payments 23,005 13,031
Right-of-use assets -
Deposit paid for acquisition of land use right and 17,802 property, plant and equipment 18,717 6
Goodwill 34,317 18,353
Intangible assets 26,310 17,783
Interest in associates 173,643
Equity investments at fair value through other - comprehensive income 5,414 37,520
Derivative financial instruments 1,412 -
Deferred tax assets 3,439 5,000 11
Trade and other receivables, deposits and prepayments - 218,478 472,608
Current assets -
Prepaid lease payments 586 -
Investment at fair value through profit or loss 2,199 3,408
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DJ HK Bourse: Results Announcement From Addchance Holdings Ltd. -2-
Inventories 26,428 196,653 11
Trade and other receivables, deposits and prepayments 254,570 -
Tax recoverable 1,659 5,511
Bank balances and cash 15,591 205,572 301,033 6,783
Assets classified as held for sale 20,823 212,355 321,856 4 2019 2018 HK$'000 Notes HK$'000 (unaudited) (audited)
Current liabilities 244,724 12
Trade and other payables 166,585 533
Contract liabilities 683 9,526
Tax liabilities 7,998 446,127
Bank and other borrowings - due within one year 422,581 -
Bank overdrafts 846 2,618
Lease liabilities - -
Obligation under a finance lease 139 8,258
Amount due to a related party 2,944 711,786 601,776 23,456
Liabilities associated with assets classified as held for sale 20,110 735,242 621,886
Net current liabilities (522,887) (300,030)
TOTAL ASSETS LESS CURRENT LIABILITIES (304,409) 172,578
Non-current liabilities 153,128
Bank and other borrowings - due after one year 96,982 1,285
Lease liabilities - -
Obligation under a finance lease 378 8,756
Deferred tax liabilities 10,745 163,169 108,105
NET (LIABILITIES)/ASSETS (467,578) 64,473
Capital and reserves 62,988
Share capital 58,994 (544,643)
Share premium and reserves (20,868)
Equity attributable to owners of the Company (481,655) 38,126 14,077
Non-controlling interests 26,347
TOTAL (DEFICIT)/EQUITY (467,578) 64,473 5
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2019
1. GENERAL INFORMATION GTI Holdings Limited (the " Company ") was incorporated in Cayman Islands under the Companies Law as an exempted company with limited liability on 9 June, 2004 and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The address of its registered office and principal place of business are Cricket Square Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands and Unit B, 13/ F, Winsan Tower, 98 Thomson Road, Wanchai, Hong Kong, respectively. The unaudited consolidated financial statements of the Company and its subsidiaries (hereinafter collectively referred to as the "Group") are presented in Hong Kong dollars ("HK$") which is the same as the functional currency of the Company and all values are rounded to the nearest thousand unless otherwise stated.
2. BASIS OF PREPARATION Appointment of provisional liquidators On 26 May 2020, the Company filed a winding up petition (the "Petition") together with an application for the appointment of joint provisional liquidators (the "JPLs") of the Company with the Grand Court of the Cayman Islands. On 28 May 2020 (Cayman time), upon the hearing at the Cayman Court of the JPL Application, an order (the "Order") in favour of the Company was granted and Mr. Osman Mohammed Arab and Mr. Lai Wing Lun of RSM Corporate Advisory (Hong Kong) Limited, and Ms. Claire Marie Loebell of R&H Restructuring (Cayman) Ltd. were appointed as the JPLs (for restructuring purposes) on a light touch approach for restructuring purposes. The Order provides that for so long as JPLs are appointed to the Company, no suit, action or other proceeding, including criminal proceedings, shall be proceeded with or commenced against the Company except with the leave of the Cayman Court and subject to such terms as the Cayman Court may impose. The Order also provides that, for the avoidance of any doubt, no payment or disposition of the Company's property or any transfer of shares or any alteration in the status of the Company's members shall be made or effected without the direct or indirect approval of the JPLs but no such payment or other disposition or transfer of shares or alteration in the status of the Company's members made or effected by or with the authority or approval of the JPLs in carrying out their duties and functions and in the exercise of their powers under the Order shall be avoided by virtue of the provisions of section 99 of the Companies Law of the Cayman Islands. Going concern basis The Group incurred a loss attributable to owners of the Company of approximately HK$560,729,000 for the year ended 31 December 2019 and as at 31 December 2019, the Group had net current liabilities and net liabilities of approximately HK$522,887,000 and approximately HK$467,578,000, respectively. These conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern. Therefore, the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. 6 The directors of the Company are of the opinion that the Group will have sufficient working capital to meet its financial liabilities as and when they fall due given that (i) the Group will be able to successfully complete the debt restructuring with the creditors; (ii) the Group is actively seeking to raise fund to meet a level suffucuent to finance the working capital requirements of the Group; (iii) the Group is actively implementing cost-control and cost saving measures to improve operating cash flows and its financial position and the directors of the Company believe that the performance of the Group will be significantly improved in the forthcoming year. Accordingly, the directors of the Company are of the opinion that it is appropriate to prepare the consolidated financial statements on the going concern basis. Should the Group be unable to continue as a going concern, adjustments would
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