China Longevity : Announcements and Notices - Interim Results Announcement for the Six Months Ended 30 June 2019 and Continual Suspension of Trading

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CHINA LONGEVITY GROUP COMPANY LIMITED

中 國 龍 天 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1863)

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2019

AND

CONTINUAL SUSPENSION OF TRADING

The board of directors (the "Board") of China Longevity Group Company Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2019, together with the comparative figures for the corresponding period in 2018. The interim results had been reviewed by the audit committee of the Company and approved by the Board.

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Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the six months ended 30 June 2019

		Six months ended 30 June
		2019		2018
		RMB'000	RMB'000
	Notes	(Unaudited)	(Unaudited)
REVENUE	4	318,133	260,939
Cost of sales		(245,290)	(204,963)
GROSS PROFIT		72,843		55,976
Other income and gains	5	3,834	2,747
Selling and distribution costs		(9,950)	(6,101)
Administrative expenses		(45,960)	(32,115)
Other expenses		(671)	(2,369)
PROFIT FROM OPERATIONS		20,096		18,138
Impairment of trade receivables		-	(175)
Finance costs	6	(3,024)	(3,844)
PROFIT BEFORE TAX	7	17,072		14,119
Income tax expenses	8	(537)	(2,356)
PROFIT FOR THE PERIOD ATTRIBUTABLE TO
OWNERS OF THE COMPANY		16,535		11,763
Other comprehensive income/(expenses) after tax:
Items that may not be reclassified to profit or loss:
Exchange differences on translation of non-PRC operations		5,678	1,339
Items that may be reclassified to profit or loss:
Exchange differences on translation of non-PRC operations		(5,738)	(1,265)
TOTAL COMPREHENSIVE INCOME FOR THE
PERIOD ATTRIBUTABLE TO OWNERS OF THE
COMPANY		16,475		11,837
EARNING PER SHARE (RMB cents)	10
- Basic		1.94		1.38
- Diluted		1.94		1.38

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Condensed Consolidated Statement of Financial Position

As at 30 June 2019

		As at		As at
		30 June	31 December
		2019	2018
		RMB'000		RMB'000
	Notes	(Unaudited)		(Audited)
Non-current assets		388,178
Property, plant and equipment				408,627
Prepaid land lease payments		-	16,404
Right-of-use assets		27,138		-
Investment properties		14,640	14,640
Intangible assets		13,655	13,643
Deposits paid for acquisition of property, plant and equipment		2,661	717
Equity investments at fair value through other comprehensive		4,140
income		4,140
Deferred tax assets		3,372			3,361
Total non-current assets		453,784				461,532
Current assets		117,213
Inventories				106,637
Trade receivables	11	82,347			89,704
Prepayments, deposits and other receivables		6,770			10,002
Due from ultimate holding company		-	263
Pledged bank deposits		49,059			50,260
Cash and cash equivalents		36,013	28,200
		291,402				285,066
Non-current assets classified as held for sale		4,537				4,537
Total current assets		295,939			289,603
Current liabilities		257,428
Trade and bills payables	12			263,583
Contract liabilities		20,075			12,983
Lease liabilities		1,202				-
Other payables and accruals		55,069			55,105
Interest-bearing borrowings	13	86,000	105,000
Deferred income		360	360
Due to a related party		10,000	10,000
Due to directors		12,384	12,747
Finance lease payables		-	537
Tax payable		12,489	13,813
Total current liabilities		455,007				474,128
Net current liabilities		(159,068)	(184,525)
Total assets less current liabilities		294,716				277,007
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	As at		As at
	30 June	31 December
	2019		2018
	RMB'000		RMB'000
Notes	(Unaudited)		(Audited)
Non-current liabilities	1,414
Lease liabilities			-
Deferred income	150	330
Deferred tax liabilities	2,711			2,711
Total non-current liabilities	4,275			3,041
NET ASSETS	290,441		273,966
Capital and reserves	747
Issued capital		747
Reserves	289,694			273,219
TOTAL EQUITY	290,441		273,966

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Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2019

1. GENERAL INFORMATION
   The Company is a limited company incorporated in the Cayman Islands on 7 October 2009. The address of its registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands. The Company's principal place of business is located at Room 617, 6/F., Seapower Tower, Concordia Plaza, 1 Science Museum Road, Tsimshatsui East, Kowloon, Hong Kong. The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited and have been suspended for trading since 14 February 2013.
   The Company acts as an investment holding company. The Company, through its major subsidiaries, is principally engaged in the design, development, manufacture and sale of (i) polymer processed high strength polyester fabric composite materials and other reinforced composite materials ("Reinforced Materials"), (ii) conventional materials ("Conventional Materials") and (iii) PVC elastic flooring product ("PVC Floor") during the period.
   In the opinion of the directors of the Company (the "Directors"), as at the date of issue of the condensed consolidated interim financial statements ("Interim Financial Statements"), Hopeland International Holdings Company Limited ("Hopeland International") is the ultimate holding company of the Company; and Mr. Lin Shengxiong ("Mr. Lin"), the Chairman and an executive director, is the ultimate controlling party of the Company.
2. BASIS OF PREPARATION
   The Interim Financial Statements have been prepared in accordance with Hong Kong Accounting Standard 34 ("Interim Financial Reporting") issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA") and the applicable disclosures required by the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").
   The Interim Financial Statements do not included all the information and disclosures required in a full set of financial statements, and should be read in conjunction with the Group's 2018 annual consolidated financial statements for the year ended 31 December 2018 ("2018 Annual Report"). The accounting policies and methods of computation used in the preparation of the Interim Financial Statements are consistent with those used in 2018 Annual Report except as stated below.
   Leases
   The Group as lessee
   Leases are recognised as right-of-use assets and corresponding lease liabilities when the leased assets are available for use by the Group. Right-of-use assets are stated at cost less accumulated depreciation and impairment losses. Depreciation of right-of-use assets is calculated at rates to write off their cost over the shorter of the asset's useful life and the lease term on a straight-line basis. The principal annual rates are as follows:

Land and buildings	2% - 60%
Machinery	10%

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