Allan International : INTERIM RESULTS 2018/2019

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.

ALLAN INTERNATIONAL HOLDINGS LIMITED

(Incorporated in Bermuda with limited liability)

(Stock Code: 684)

INTERIM RESULTS 2018/2019

RESULTS

The board of directors of Allan International Holdings Limited (the "Company") announces the unaudited condensed consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 September 2018 together with the comparative figures for the six months ended 30 September 2017, as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 September 2018

Six months ended

30 September 2018

2017

(Unaudited)	(Unaudited)
NOTES	HK$'000	HK$'000
Revenue	3	644,216	695,883
Cost of sales	(613,806)	(626,262)
Gross profit	30,410	69,621
Other income	4	24,481	13,969
Other gains and losses	3,537	1,249
Selling and distribution expenses	(12,541)	(12,593)
Administrative expenses	(52,759)	(55,252)
Gain from changes in fair value of
investment properties	44,400	3,000
Finance costs on bank loan	(420)	(273)
Profit before tax	37,108	19,721
Income tax expense	5	(874)	(2,310)
Profit for the period	36,234	17,411

Six months ended

30 September 2018

(Unaudited)

NOTES

2017

(Unaudited)

HK$'000

Other comprehensive (expense) income:

Items that may be reclassified subsequently to profit or loss:

Exchange differences arising on translating foreign operations

Net fair value (loss) gain on: available-for-sale investments debt instrument at fair value through other comprehensive income Reclassified to profit or loss upon: redemption of available-for-sale investments disposal of debt instruments at fair value through other comprehensive income

HK$'000

(10,230)

-

(386)

-

(16)

5,563

640

- 237

-

Other comprehensive (expense) income for the period

(10,632) 6,440

Total comprehensive income for the period

25,602 23,851

Earnings per share

6

Basic

HK10.80 cents

HK5.19 cents

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 30 September 2018

30 September	31 March
2018	2018
(Unaudited)	(Audited)
NOTES	HK$'000	HK$'000
Non-current assets
Investment properties	8	325,400	281,000
Property, plant and equipment	9	147,632	179,485
Prepaid lease payments	19,920	24,287
Club debentures	13,176	13,176
Available-for-sale investments	-	61,417
Deferred tax assets	1,493	552
Deposits paid for acquisition of property,
plant and equipment	8,472	481
516,093	560,398
Current assets
Inventories	110,733	98,854
Trade receivables	10	293,863	288,967
Other receivables	29,461	35,158
Mould deposits paid	4,598	4,115
Prepaid lease payments	628	678
Financial assets at fair value through profit or loss	35,617	-
Debt instruments at fair value through
other comprehensive income	27,273	-
Tax recoverable	1,207	2,276
Short-term deposits	94,375	127,403
Bank balances and cash	498,411	469,572
1,096,166	1,027,023
Assets classified as held for sales	13,143	-
1,109,309	1,027,023
Current liabilities
Trade payables	11	235,459	193,194
Other payables and accruals	139,205	127,594
Deferred income	-	17,649
Mould deposits received	26,563	25,560
Tax liabilities	34,724	36,244
Secured bank loan	5,124	5,124
441,075	405,365

30 September	31 March
2018	2018
(Unaudited)	(Audited)
NOTES	HK$'000	HK$'000
Net current assets	668,234	621,658
Total assets less current liabilities	1,184,327	1,182,056
Non-current liabilities
Deferred tax liabilities	8,133	7,757
Secured bank loan	33,723	36,285
41,856	44,042
Net assets	1,142,471	1,138,014
Capital and reserves
Share capital	12	33,543	33,543
Reserves	1,108,928	1,104,471
1,142,471	1,138,014

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For The Six Months Ended 30 September 2018

• 1. BASIS OF PREPARATION

  The condensed consolidated financial statements 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") as well as with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

• 2. PRINCIPAL ACCOUNTING POLICIES

  The condensed consolidated financial statements have been prepared on the historical cost basis except for certain investment properties and financial instruments, which are measured at fair values.

  Other than changes in accounting policies resulting from application of new and amendments to Hong Kong Financial Reporting Standards ("HKFRSs"), as detailed below, the accounting policies and methods of computation used in the condensed consolidated financial statements for the six months ended 30 September 2018 are the same as those followed in the preparation of the Group's annual financial statements for the year ended 31 March 2018.

  Application of new and amendments to HKFRSs and Interpretation

  In the current interim period, the Group has applied, for the first time, the following new and amendments to HKFRSs and an interpretation issued by the HKICPA which are mandatorily effective for the annual period beginning on or after 1 April 2018 for the preparation of the Group's condensed consolidated financial statements:

HKFRS 9	Financial Instruments
HKFRS 15	Revenue from contracts with Customers and the related Amendments
HK(IFRIC) - Int 22	Foreign Currency Transactions and Advance Consideration
Amendments to HKFRS 2	Classification and Measurement of Share-based Payment Transactions
Amendments to HKFRS 4	Applying HKFRS 9 Financial Instruments with HKFRS 4 Insurance Contracts
Amendments to HKAS 28	As part of the Annual Improvements to HKFRSs 2014 - 2016 Cycle
Amendments to HKAS 40	Transfers of Investment Property

In addition, the Group has applied Amendments to HKFRS 9 Prepayment Features with Negative Compensation in advance of the effective date, i.e. 1 January 2019.

The new and amendments to HKFRSs and an interpretation have been applied in accordance with the relevant transition provisions in the respective standards and amendments which results in changes in accounting policies, amounts reported and/or disclosures as described below.

2.1

Impacts and changes in accounting policies of application on HKFRS 15 Revenue from Contracts with Customers ("HKFRS 15")

The Group has applied HKFRS 15 for the first time in the current interim period. HKFRS 15 superseded HKAS 18 Revenue, HKAS 11 Construction Contracts and the related interpretations.

The Group has applied HKFRS 15 retrospectively with the cumulative effect of initially applying this standard recognised at the date of initial application, 1 April 2018. In accordance with the transition provisions in HKFRS 15, the Group has elected to apply the standard retrospectively only to contracts that are not completed at 1 April 2018. Accordingly, certain comparative information may not be comparable as comparative information was prepared under HKAS 18 Revenue and the related interpretations. At the date of initial application, there is no difference recognised in the opening retained profits and no comparative information has been restated.