China Aerospace International : Announcement of Annual Results 2016

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CHINA AEROSPACE INTERNATIONAL HOLDINGS LIMITED

中國航天國際控股有限公司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 31) ANNOUNCEMENT OF ANNUAL RESULTS 2016

The Board of Directors (the "Board") of China Aerospace International Holdings Limited (the "Company") is pleased to announce the audited results and financial statements of the Company and its subsidiaries (collectively the "Group") for the financial year ended 31 December 2016.

SUMMARY OF RESULTS

The audited consolidated results of the Group for the year ended 31 December 2016 and the comparative figures of the same period in 2015 are as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

FOR THE YEAR ENDED 31 DECEMBER 2016

2016	2015
NOTES	HK$'000	HK$'000
Turnover	3	3,087,848	2,765,720
Cost of sales	(2,296,492)	(2,205,494)
Gross profit	791,356	560,226
Other income	4	53,632	75,832
Other gains and losses	4	(19,481)	(109,238)
Selling and distribution expenses	(57,925)	(49,538)
Administrative expenses	(312,660)	(307,166)
Research and development expenses	(63,089)	(57,734)
Fair value changes of investment properties	1,412,301	2,622,170
Finance costs	(53,440)	(33,396)
Share of results of associates	1,880	(51,117)
Share of results of joint ventures	(29,909)	(2,626)
Profit before taxation	5	1,722,665	2,647,413
Taxation	6	(519,413)	(1,021,090)
Profit for the year	1,203,252	1,626,323
Profit attributable to:
Owners of the Company	796,108	984,696
Non-controlling interests	407,144	641,627
Profit for the year	1,203,252	1,626,323

NOTE	2016	2015
Earnings per share	7
Basic	HK25.81 cents	HK31.92 cents

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2016

2016	2015
HK$'000	HK$'000
Profit for the year	1,203,252	1,626,323
Other comprehensive income includes:
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising on translating foreign operations - subsidiaries	(370,195)	(274,674)
- associates	(7,888)	(7,678)
- joint ventures	(41,618)	(40,677)
Reclassification adjustments for the cumulative exchange differences upon deregistration of a foreign operation	1,138	－
Other comprehensive expense for the year	(418,563)	(323,029)
Total comprehensive income for the year	784,689	1,303,294
Total comprehensive income attributable to:
Owners of the Company	485,622	744,385
Non-controlling interests	299,067	558,909
784,689	1,303,294

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

2016	2015
NOTES	HK$'000	HK$'000
Non-current assets
Property, plant and equipment	953,527	806,722
Prepaid lease payments	94,711	94,626
Investment properties	8,492,873	7,155,275
Interests in associates	126,285	132,293
Interests in joint ventures	712,103	783,630
Deposit paid for property, plant and equipment	22,766	9,373
Other long term assets	33,108	－
Loan to a joint venture	27,778	－
10,463,151	8,981,919
Current assets
Inventories	262,021	243,604
Trade and other receivables	9	873,050	647,547
Prepaid lease payments	4,234	3,849
Amount due from a related party	16	14
Financial assets at fair value through profit or loss	25,675	17,169
Pledged bank deposits	6,158	36,035
Bank balances and cash	1,150,271	2,045,506
2,321,425	2,993,724
Current liabilities
Trade and other payables	10	1,545,965	1,093,748
Taxation payable	58,347	51,909
Bank and other borrowings	31,111	1,340,260
Other loan	7,963	8,462
1,643,386	2,494,379
Net current assets	678,039	499,345
Total assets less current liabilities	11,141,190	9,481,264

AT 31 DECEMBER 2016

Non-current liabilities
Loan from a controlling shareholder	555,556	590,319
Loan from a related party	565,667	－
Deferred taxation	2,044,833	1,687,683
3,166,056	2,278,002
7,975,134	7,203,262

2016	2015
HK$'000	HK$'000
Capital and reserves
Share capital	1,154,511	1,154,511
Reserves	5,035,647	4,551,259
Equity attributable to owners of the Company	6,190,158	5,705,770
Non-controlling interests	1,784,976	1,497,492
7,975,134	7,203,262

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

1. BASIS OF PREPARATION

   The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and include applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance (Cap. 622) (the "Hong Kong Companies Ordinance"). The consolidated financial statements have been prepared on the historical cost basis, except for certain properties and financial instruments, which are measured at fair values.

2. APPLICATION OF NEW AND AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS

Amendments to HKFRSs that are mandatorily effective for the current year

The Group has applied the following amendments to HKFRSs issued by the HKICPA for the first time in the current year:

Amendments to HKFRS 11 Accounting for acquisitions of interest in joint operations

Amendments to HKAS 1 Disclosure initiative

Amendments to HKAS 16 and Clarification of acceptable methods of depreciation and HKAS 38 amortisation

Amendments to HKAS 16 and Agriculture: Bearer plants HKAS 41

Amendments to HKFRS 10, Investment entities: Applying the consolidation HKFRS 12 and HKAS 28 exception

Amendments to HKFRSs Annual improvements to HKFRSs 2012-2014 cycle

The application of the amendments to HKFRSs in the current year has had no material impact on the Group's financial performance and positions for the current and prior years and/or on the disclosures set out in these consolidated financial statements.

New and amendments to HKFRSs in issue but not yet effective

The Group has not early applied the following new and amendments to HKFRSs that have been issued but are not yet effective:

HKFRS 9 Financial instruments1

HKFRS 15 Revenue from contracts with customers and the related Amendments1

HKFRS 16 Leases2

Amendments to HKFRS 2 Classification and measurement of share-based payment transactions1

Amendments to HKFRS 4 Applying HKFRS 9 "Financial instruments" with HKFRS 4 "Insurance contracts"1

Amendments to HKFRS 10 Sale and contribution of assets between an investor and and HKAS 28 its associate or joint venture3

Amendments to HKAS 7 Disclosure initiative4

Amendments to HKAS 12 Recognition of deferred tax assets for unrealised losses4

Amendments to HKFRSs Annual improvements to HKFRSs 2014-2016 cycle5