DJ HK Bourse: Results Announcement From Weiqiao Textile Co. Ltd.
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https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0814/2020081401939.pdf INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2020 Revenue was approximately RMB5,430 million, representing a decrease of approximately 30.2% from that for the corresponding period of last year. Net profit attributable to owners of the Company was approximately RMB155 million, representing a decrease of approximately 24.8% from that for the corresponding period of last year. Earnings per share were approximately RMB0.13 (same period last year: approximately RMB0.17).
* For identification purpose only -1-
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2020 For the six months ended 30 June 2020 2019 Notes RMB'000 RMB'000 (Unaudited) (Unaudited)
Revenue 5,430,121 7,783,952 3 (5,019,735)
Cost of sales (7,175,797) 410,386
Gross profit 608,155 128,791
Other income 73,122 5 (63,124)
Selling and distribution expenses (68,391) (131,764)
Administrative expenses (134,236) (9,004)
Other expenses (10,887) (56,919)
Finance costs (75,006) 6 224
Share of profit of an associate 656
Profit before taxation 278,590 393,413 (124,542)
Income tax expenses (188,085) 7
Profit and total comprehensive income for the period 154,048 205,328 8
Attributable to: 154,918 Owners of the Company 206,330 (870) Non-controlling interests (1,002) 154,048 205,328
Earnings per share attributable to owners of the Company 0.13 Basic and diluted (RMB) 0.17 10 -2-
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020 As at 30 As at 31 June 2020 December 2019 RMB'000 Notes RMB'000 (Unaudited) (Audited)
Non-current assets 9,981,477 Property, plant and equipment 10,418,785 11 393,255 Right-of-use assets 405,332 12 20,416 Investment properties 20,784 68 Other intangible assets 76 76,200 Interest in an associate 75,976 Deposits paid for acquisition of property, - plant and equipment 16,458 92,150 Deferred tax assets 96,952
Total non-current assets 10,563,566 11,034,363
Current assets 2,902,657 Inventories 2,765,713 13 290,141 Trade receivables 402,190 14 236,326 Deposits, prepayments and other receivables 239,828 15 75,718 Pledged deposits 107,782 9,991,410 Bank balances and cash 9,875,342 13,496,252 13,390,855
Non-current assets classified as held for sale - 1,271
Total current assets 13,496,252 13,392,126
Current liabilities 1,063,656 Trade payables 1,371,593 16 1,007,190 Other payables and accruals 1,069,470 17 13,283 Lease liabilities 13,336 12 161,727 Contract liabilities 171,565 1,040,617 Income tax payable 1,039,214 2,059,000 Bank borrowings 2,109,350 18 16,569 Deferred income 15,609
Total current liabilities 5,362,042 5,790,137
Net current assets 8,134,210 7,601,989
Total assets less current liabilities 18,697,776 18,636,352 -3- As at 30 As at 31 June 2020 December 2019 RMB'000 Notes RMB'000 (Unaudited) (Audited)
Equity 1,194,389
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DJ HK Bourse: Results Announcement From Weiqiao Textile Co. Ltd. -2-
Share capital 1,194,389 19 17,299,034 Reserves 17,220,557 18,493,423
Equity attributable to owners of the Company 18,414,946 10,918
Non-controlling interests 11,788
Total equity 18,504,341 18,426,734
Non-current liabilities 54,631 Lease liabilities 61,259 12 133,885 Deferred income 143,129 4,919 Deferred tax liabilities 5,230
Total non-current liabilities 193,435 209,618
Total equity and non-current liabilities 18,697,776 18,636,352 -4-
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2020 Attributable to owners of the Company Non- Statutory controlling Total surplus Retained Share Capital interests equity reserve profits Total capital reserve RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 (Note) 1,194,389 6,692,394 1,845,222 8,682,941 18,414,946 11,788 18,426,734
At 31 December 2019 (Audited)
Profit and total comprehensive - - - 154,918 154,918 (870) 154,048 income for the period - - - (76,441) (76,441) - (76,441)
Final 2019 dividend declared 1,194,389 6,692,394 1,845,222 8,761,418 18,493,423 10,918 18,504,341
At 30 June 2020 (Unaudited)
At 31 December 2018 (Audited) 1,194,389 6,692,394 1,845,222 8,662,394 18,394,399 14,451 18,408,850
Profit and total comprehensive income for the period - - - 206,330 206,330 (1,002) 205,328
Final 2018 dividend declared - - - (197,791) (197,791) - (197,791)
At 30 June 2019 (Unaudited) 1,194,389 6,692,394 1,845,222 8,670,933 18,402,938 13,449 18,416,387
Note: As required by applicable law and regulations, entities established and operated in the People's Republic of China (the "PRC") shall set aside/appropriate a portion of its after tax profits of each year to fund statutory surplus reserve. The statutory surplus reserve can be utilised to offset prior years' losses or to increase capital. However, the balance of the statutory surplus reserve must be maintained at a minimum of 25% of the registered capital after such usage. -5-
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2020 For the six months ended 30 June 2020 2019 RMB'000 RMB'000 (Unaudited) (Unaudited)
NET CASH FROM OPERATING ACTIVITIES 214,549 793,304
INVESTING ACTIVITIES 32,064
Decrease (increase) in pledged deposits (263,327) 21,892
Proceeds from disposal of property, plant and equipment 8,577 15,667
Bank interest income received 17,049 7,240
Proceeds from disposal of non-current assets held for sale 3,526 -
Prepayment for acquisition of property, plant and equipment (8,558) (4,683)
Purchase of property, plant and equipment (30,660)
NET CASH FROM (USED IN) INVESTING ACTIVITIES 72,180 (273,393)
FINANCING ACTIVITIES (897,350)
Repayment of bank borrowings (1,031,350) (76,441)
Dividend paid (197,791) (57,800)
Interest paid (46,272) (6,681)
Payment of lease liabilities (8,479) 20,611
Government grant received 600 847,000
New bank borrowings raised 1,121,350
NET CASH USED IN FINANCING ACTIVITIES (170,661) (161,942)
NET INCREASE IN CASH AND CASH EQUIVALENTS 116,068 357,969
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 9,875,342 9,596,558
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD, REPRESENTED BY BANK BALANCES AND CASH 9,991,410 9,954,527 -6-
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2020
1. GENERAL INFORMATION AND BASIS OF PREPARATION Weiqiao Textile Company Limited (the "Company") is a limited company established in the PRC. The registered office of the Company is located at No. 34, Qidong Road, Weiqiao Town, Zouping Country, Shandong Province, the PRC. The immediate holding company and the ultimate holding company of the Group are Shandong Weiqiao Chuangye Group Company Limited* (the "Holding Company") and Shandong Weiqiao Investment Holdings Company Limited* ("Weiqiao Investment") respectively, both of which are limited liability companies established in the PRC. The Group was principally engaged in the manufacture and sale of cotton yarn, grey fabric and denim and generation and sale of electricity and steam. The condensed consolidated financial statements of the Group for the six months ended 30 June 2020 have been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"). The condensed consolidated financial statements are presented in Renminbi ("RMB"), which is the same as the functional currency of the Company. RMB is the currency of the primary economic environment in which the principal subsidiaries of the Company operates (the functional currency of the principal subsidiaries).
2. PRINCIPAL ACCOUNTING POLICIES The condensed consolidated interim financial statements have been prepared on the historical cost basis. The accounting policies used in the condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2019 except as described below. In the current interim period, the Group has applied, for the first time, the following new and amendments
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