China Tontine Wines : Announcements and Notices - Announcement of Annual Results for the Year Ended 31 December 2016

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CHINA TONTINE WINES GROUP LIMITED

中國通天酒業集團有限公司

(incorporated in Bermuda with limited liability)

(Stock Code: 389) ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 FINANCIAL HIGHLIGHTS

•

Revenue retreated by approximately 7.6% to approximately RMB271.3 million (2015:

approximately RMB293.7 million).

•

Gross profit decreased approximately 11.0% to RMB84.2 million (2015: approximately

RMB94.6 million (restated)).

•

Loss and total comprehensive expense for the year attributable to owners of the

Company amounted to approximately RMB93.3 million as compared with profit and total comprehensive income attributable to owners of the Company of RMB9.6 million (restated) for the previous year.

•

Basic losses per share was RMB4.63 cents as compared with earnings per share of

RMB0.48 cent (restated) for the previous year.

The board of directors (the "Board") of China Tontine Wines Group Limited (the "Company") is pleased to announce the consolidated results and financial position of the Company and its subsidiaries (collectively the "Group") for the year ended 31 December 2016 (the "Year"), prepared on the basis set out in Note 2.1, together with the comparative figures for the year ended 31 December 2015 as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2016

NOTES	2016 RMB'000	2015 RMB'000
(restated)
Revenue	3	271,333	293,689
Cost of sales	(187,164)	(199,056)
Gross profit	84,169	94,633
Other income, gains and losses	5	586	847
Selling and distribution expenses	(126,957)	(41,910)
Administrative expenses	(60,612)	(41,089)
Finance costs	6	(21)	-
Change in fair value of biological assets	3,759	3,681
(Loss) profit before tax Taxation	7	(99,076) -	16,162 -
(Loss) profit and total comprehensive (expense) income for the year	8	(99,076)	16,162
(Loss) profit and total comprehensive (expense)
income for the year attributable to:
Owners of the Company	(93,291)	9,581
Non-controlling interests	(5,785)	6,581
(99,076)	16,162
(Losses) earnings per share Basic (RMB cents)	10	(4.63)	0.48
Diluted (RMB cents)	(4.63)	0.48

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 December 2016

NOTES	31.12.2016 RMB'000	31.12.2015 RMB'000	1.1.2015 RMB'000
(restated)	(restated)
Non-current Assets
Property, plant and equipment	149,130	145,381	151,841
Prepaid lease payments	54,138	56,862	59,586
Deposits paid for acquisition of property, plant and equipment	-	7,343	7,343
Biological assets	2,687	2,857	2,726
205,955	212,443	221,496
Current Assets
Inventories	299,860	312,719	315,185
Trade receivables	11	27,407	84,702	97,115
Deposits and other receivables	14,157	12,153	12,076
Tax recoverable	5,551	5,551	5,551
Prepaid lease payments	2,723	2,723	2,723
Bank balances and cash	181,683	201,942	172,613
531,381	619,790	605,263
Current Liabilities Trade payables	12	5,857	9,307	19,317
Other payables and accruals	25,871	33,363	34,014
Bank borrowing	7,096	-	-
Tax liabilities	9,961	9,961	9,988
48,785	52,631	63,319
Net Current Assets	482,596	567,159	541,944
Total Assets less Current Liabilities	688,551	779,602	763,440
Capital and Reserves
Share capital	17,624	17,624	17,624
Reserves	602,626	687,892	678,311
Equity attributable to owners of the Company	620,250	705,516	695,935
Non-controlling interests	68,301	74,086	67,505
Total Equity	688,551	779,602	763,440

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2016

1. GENERAL

   The Company is a public limited company incorporated in Bermuda and its shares are listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). The directors consider that the Company's ultimate holding company is Up Mount International Limited, a limited company incorporated in the British Virgin Islands (the "BVI"). The addresses of the registered office and principal place of business of the Company are disclosed in the section headed "Corporate Information" of the annual report.

   The consolidated financial statements are presented in Renminbi, which is also the functional currency of the Company.

   The company acts as an investment holding company.

2. APPLICATION OF NEW AND AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS ("HKFRSs")

Amendments to HKFRSs that are mandatorily effective for the current year

The Group has applied the following amendments to HKFRSs issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA") for the first time in the current year:

Amendments to HKFRS 11 Accounting for Acquisitions of Interests in Joint Operations Amendments to HKAS 1 Disclosure Initiative

Amendments to HKAS 16 and HKAS 38 Clarification of Acceptable Methods of Depreciation and

Amortisation

Amendments to HKFRSs Annual Improvements to HKFRSs 2012 - 2014 Cycle Amendments to HKAS 16 and HKAS 41 Agriculture: Bearer Plants

Amendments to HKAS 27 Equity Method in Separate Financial Statements

Amendments to HKFRS 10, HKFRS 12 and HKAS 28

Investment Entities: Applying the Consolidation Exception

Except as described below, 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.

Amendments to HKAS 16 and HKAS 41 Agriculture: Bearer Plants

The Group has applied the amendments to HKAS 16 and HKAS 41 Agriculture: Bearer Plants for the first time in the current year. The Amendments to HKAS 16 Property, Plant and Equipment and HKAS 41 Agriculture define a bearer plant and require biological assets that meet the definition of a bearer plant to be accounted for as property, plant and equipment in accordance with HKAS 16, instead of HKAS 41. The produce growing on bearer plants continues to be accounted for in accordance with HKAS 41.