C&G Environmental Protection Hldgs : Second Quarter and/ or Half Yearly Results

C&G ENVIRONMENTAL PROTECTION HOLDINGS LIMITED

Second Quarter Results and Dividend Announcement for the Period Ended 30 June 2016

The Board of Directors are pleased to announce the consolidated results of the Group for the three months ended 30 June 2016. The figures presented below have not been audited.

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

1(a)(i) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year.

Three months ended 30 June			Six months ended 30 June
%	%
2016	2015	Increase /	2016	2015	Increase /
HK$'000	HK$'000	(Decrease)	HK$'000	HK$'000	(Decrease)
Revenue	32,214	94,549	-65.93	39,375	123,469	-68.11
Cost of sales	(14,490)	(93,801)	-84.55	(19,872)	(121,717)	-83.67
Gross profit	17,724	748	2,269.52	19,503	1,752	1,013.18
Other income	84	112	-25.00	2,468	472	422.88
Administrative expenses	(13,254)	(15,848)	-16.37	(22,568)	(32,293)	-30.11
Profit / (loss) from operations	4,554	(14,988)	-130.38	(597)	(30,069)	-98.01
Finance costs	(1,257)	(16)	7,756.25	(2,485)	(32)	7,665.63
Profit / (loss) before taxation from continuing operations	3,297	(15,004)	-121.97	(3,082)	(30,101)	-89.76
Income tax expense	-	-	N.M	-	-	N.M
Profit / (loss) from continuing operations attributable to the owners of the Company	3,297	(15,004)	-121.97	(3,082)	(30,101)	-89.76
Gain from discontinuing operations attributable to the owners of the Company	-	-	0.00	-	113,162	-100.00
Net Profit / (Loss)	3,297	(15,004)	(3,082)	83,061
Other comprehensive income, net of tax:
Items that may be reclassified to profit or loss:
Exchange difference on translating foreign operations	(9,306)	(79)	11,679.75	(12,947)	801	-1,716.35
Available-for-sale financial assets: Fair value (losses)/gains	(6,967)	29,905	-123.30	(288,153)	262,335	-209.84
Total other comprehensive income that will be reclassified to profit or loss, net of taxation	(16,273)	29,824	-154.56	(301,100)	263,136	-214.43
Total other comprehensive income, net of taxation	(16,273)	29,824	-154.56	(301,100)	263,136	-214.43
Total comprehensive loss for the year attributable to the owners of the Company	(12,976)	14,822	-187.55	(304,182)	346,197	-187.86

1 (a)(ii) Explanatory Notes:

Other income/(loss) comprises:
The Group		The Group
Three months ended 30 June	Three months ended 30 June	Six months ended 30 June	Six months ended 30 June
2016	2015	2016	2015
HKD'000	HKD'000	HKD'000	HKD'000
Interest income	84	-	84	261
Other Income	-	112	2,384	211
84	112	2,468	472
Profit/(Loss) before tax is arrived at after charging/(crediting)
The Group		The Group
Three months ended 30 June	Three months ended 30 June	Six months ended 30 June	Six months ended 30 June
2016	2015	2016	2015
HKD'000	HKD'000	HKD'000	HKD'000
Depreciation and amortisation	5,396	157	5,647	355
Interest on bank loans	1,245	-	2,460	-
Interest on finance lease	12	16	25	32

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.

The Group		The Company
30.06.2016	31.12.2015	30.06.2016	31.12.2015
HK$'000	HK$'000	HK$'000	HK$'000
Non-current assets
Fixed assets	5,079	5,328	-	-
Intangible assets	407,084	385,128	-	-
Available-for-sale financial assets	967,772	1,255,926	-	-
Investment in subsidiaries	-	-	575,396	575,396
Investment in a joint venture	-	71	-	-
1,379,935	1,646,453	575,396	575,396
Current assets
Inventories	16,677	15,965	-	-
Trade receivables	21,280	13,320	-	-
Gross amounts due from customers for contract work	-	20,838	-	-
Other deposits and other receivables	49,176	39,541	-	-
Amount due from ultimate holding company	118,773	118,773	-	-
Prepayments	2,800	714	-	-
Due from a subsidiary	-	-	1,134,511	1,115,378
Pledged bank deposits	23,347	32,160	-	9,362
Bank and cash balances	10,929	13,406	85	252
242,982	254,717	1,134,596	1,124,992
TOTAL ASSETS	1,622,917	1,901,170	1,709,992	1,700,388
Capital and reserves
Share capital	97,776	97,776	97,776	97,776
Reserves	1,127,728	1,431,911	1,005,820	1,007,077
Equity attributable to owners of the Company	1,225,504	1,529,687	1,103,596	1,104,853
Non-current liabilities
Interest-bearing borrowings	159,746	159,746	-	-
Finance lease payables	446	538	-	-
160,192	160,284	-	-
Current liabilities
Trade payables	41,217	51,957	-	-
Accruals and other payables	195,678	158,877	19,407	1,134
Due to a subsidiary	-	-	586,989	594,401
Finance lease payables	326	365	-	-
237,221	211,199	606,396	595,535
Total liabilities	397,413	371,483	606,396	595,535
TOTAL EQUITY AND LIABILITIES	1,622,917	1,901,170	1,709,992	1,700,388

1(b)(ii) In relation to the aggregate amount of the group's borrowings and debt securities, specify the following as at the end of the current financial period reported on with comparative figures as at the end of the immediately preceding financial year.

Amount repayable in one year or less, or on demand

As at 30 June 2016

As at 31 December 2015

Secured (HK$'000)	Unsecured (HK$'000)	Secured (HK$'000)	Unsecured (HK$000)
Nil	Nil	Nil	Nil

Amount repayable after one year

As at 30 June 2016

As at 31 December 2015

Secured (HK$'000)	Unsecured (HK$'000)	Secured (HK$'000)	Unsecured (HK$'000)
159,746	Nil	159,746	Nil

Details of any collateral

The Group's interest-bearing borrowings of HK$159,746,000 as at 30 June 2016 are secured by the following:

1. Share pledge of 33,650,000 shares Grandblue Environment Co. Ltd ("Grandblue") which held as available-for- sale financial assets.