China Starch : PRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018 (in PDF)

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CHINA STARCH HOLDINGS LIMITED ʕ਷ዠ४છٰϞࠢʮ̡

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3838)

PRELIMINARY ANNOUNCEMENT OF ANNUAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2018

Financial highlights:

2018	2017
RMB'000	RMB'000	Change
Revenue	5,073,489	4,694,541	+8.1%
Gross profit	443,164	619,543	-28.5%
Operating profit	271,232	496,453	-45.4%
Profit for the year	238,035	394,061	-39.6%
Profit attributable to shareholders	230,897	388,167	-40.5%
Basic earnings per share (RMB)	0.0385	0.0647	-40.5%
Proposed final dividend per share (HK cents)	1.20	1.20	-

The board (the "Board") of directors (the "Directors") of China Starch Holdings Limited (the "Company") is pleased to announce the audited consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 31 December 2018, together with the comparative figures for the year ended 31 December 2017.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2018

2018	2017
Notes	RMB'000	RMB'000
Revenue	3	5,073,489	4,694,541
Cost of sales	(4,630,325)	(4,074,998)
Gross profit	443,164	619,543
Distribution expenses	(91,425)	(96,664)
Administrative expenses	(148,475)	(132,294)
Other gains and losses	4	67,968	105,868
Operating profit	271,232	496,453
Finance income	44,147	32,424
Finance expenses	(444)	(290)
Profit before income tax	5	314,935	528,587
Income tax expenses	6	(76,900)	(134,526)
Profit and total comprehensive income
for the year	238,035	394,061
Attributable to:
Owners of the Company	230,897	388,167
Non-controlling interests	7,138	5,894
238,035	394,061
Earnings per share attributable to
owners of the Company
Basic and diluted earnings per share (RMB)	7	0.0385	0.0647

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2018

2018	2017
Notes	RMB'000	RMB'000
ASSETS
Non-current assets
Property, plant and equipment	1,781,270	1,131,849
Right-of-use assets	201,132	-
Prepaid lease payments	-	205,587
Deposits for acquisition of right-of-use assets	30,896	-
Deposits for acquisition of property,
plant and equipment	119,621	21,759
Deferred tax assets	77,957	48,527
Total non-current assets	2,210,876	1,407,722
Current assets
Inventories	409,822	224,532
Trade and other receivables	9	462,391	409,692
Pledged bank deposits	6,062	3,000
Fixed deposits	340,000	390,000
Cash and cash equivalents	782,904	1,103,160
Total current assets	2,001,179	2,130,384
Total assets	4,212,055	3,538,106
EQUITY
Equity attributable to owners of the Company
Share capital	532,656	532,656
Other reserves	401,491	423,560
Retained earnings	1,853,538	1,659,287
2,787,685	2,615,503
Non-controlling interests	138,658	131,520
Total equity	2,926,343	2,747,023

2018	2017
Notes	RMB'000	RMB'000
LIABILITIES
Non-current liabilities
Borrowing	-	224
Deferred income	342,142	220,183
Deferred tax liabilities	23,944	9,838
Total non-current liabilities	366,086	230,245
Current liabilities
Trade and other payables	10	694,036	287,205
Advances from customers	113,294	157,355
Income tax payable	83,559	88,302
Borrowing	4,432	4,208
Employee housing deposits	23,768	23,768
Lease liabilities	537	-
Total current liabilities	919,626	560,838
Total liabilities	1,285,712	791,083
Total equity and liabilities	4,212,055	3,538,106

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

The consolidated financial statements of the Company have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs") (which include all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs") and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants. In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on the Stock Exchange and by the Hong Kong Companies Ordinance.

The consolidated financial statements have been prepared on a historical cost basis except for derivative financial instruments.

The preparation of financial statements in conformity with HKFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies.

The following new amendments to standards have been adopted by the Group for the first time for the current financial year:

HKFRS 9	Financial Instruments
HKFRS 15	Revenue from Contracts with Customers
Amendments to HKAS 28	As part of Annual Improvements to
HKFRSs 2014 - 2016 Cycle

The Group has elected to early adopt HKFRS 16 "Leases" in the current financial year.

The Group had to change its accounting policies and make certain retrospective adjustments following the early adoption of HKFRS 16. The other new standards and amendments listed above did not have any significant impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.