Da Sen : ANNOUNCEMENT OF RESULT FOR THE YEAR ENDED 31 DECEMBER 2020

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Da Sen Holdings Group Limited

大 森 控 股 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1580)

ANNOUNCEMENT OF RESULT FOR

THE YEAR ENDED 31 DECEMBER 2020

The Board hereby announces the results of the Group for the year ended 31 December 2020 together with the comparative figures extracted from the audited consolidated financial statements of the Group for the year ended 31 December 2019 as follows:

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2020

	Notes	2020		2019
				(Restated)
		RMB'000	RMB'000
Continuing operations
Revenue	3	175,281		305,503
Cost of sales	6	(289,083)	(329,755)
Gross loss		(113,802)	(24,252)
Selling and distribution expenses	6	(845)	(1,029)
Administrative expenses	6	(14,584)	(21,012)
Net impairment losses on financial assets		(61,864)	(11,404)
Other income	4	2,799		2,710
Other losses - net	5	(14,532)	(12,138)
Operating loss from continuing operations		(202,828)	(67,125)
Finance income	7	13		7
Finance costs	7	(2,213)	(4,994)
Finance costs - net
7	(2,200)	(4,987)

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	Notes	2020		2019
				(Restated)
		RMB'000	RMB'000
Loss before income tax from continuing
operations		(205,028)	(72,112)
Income tax (credit)/expense	8	(6,246)	4,539
Loss for the year from continuing operations		(211,274)	(67,573)
Discontinued operation
Loss for the year from discontinued operation	9	(24,028)	(8,008)
Total loss and comprehensive loss for the year
and attributable to the shareholders of the
Company		(235,302)	(75,581)
Losses per share for loss from continuing
operations attributable to the shareholders of
the Company during the year
- Basic and diluted (expressed in RMB cents
per share)	10	(21.68)	(7.20)
Losses per share for total loss attributable to the
shareholders of the Company during the year
- Basic and diluted (expressed in RMB cents
per share)	10	(24.15)	(8.05)

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CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2020

	Notes	2020		2019
		RMB'000	RMB'000
ASSETS
Non-current assets
Right-of-use assets		10,579		27,270
Property, plant and equipment	11	54,813		119,675
Investment properties	12	45,878		-
Prepayments		-	2,351
Deferred income tax assets		-	7,280
Total non-current assets		111,270		156,576
Current assets
Inventories	13	47,228		82,682
Trade and other receivables	14	111,354		212,426
Cash and cash equivalents		5,763		51,007
Total current assets		164,345		346,115
Total assets		275,615		502,691
EQUITY
Equity attributable to shareholders of the Company
Share capital	15	8,592		8,592
Share premium	15	212,502		212,502
Other reserves	16	52,942		52,942
(Accumulated losses)/retained earnings		(104,765)	130,537
Total equity		169,271		404,573

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	Notes	2020	2019
		RMB'000		RMB'000
LIABILITIES
Non-current liabilities
Borrowings	17	-	22,736
Deferred income		317	342
Total non-current liabilities		317	23,078
Current liabilities
Trade and other payables	18	40,922	30,288
Current income tax liabilities		7,168	7,177
Borrowings	17	57,937	37,103
Lease liabilities		-	472
Total current liabilities		106,027	75,040
Total liabilities		106,344	98,118
Total equity and liabilities		275,615	502,691

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL INFORMATION
   Da Sen Holdings Group Limited ("the Company") is a limited liability company incorporated in Cayman Islands. The address of its registered office is Cricket Square, Hutchins Drive, P.O. box 2681, Grand Cayman KY1-1111, Cayman Islands. The Company's shares have been listed on The Stock Exchange of Hong Kong Limited since 19 December 2016.
   The Company and its subsidiaries (together "the Group") were previously engaged in the manufacturing and sales of plywood and biomass wood pellets in Heze city, Shandong Province, the People's Republic of China (the "PRC"). In view of the significant drop in market demand for biomass wood pellets during the year 31 December 2019, the Group had gradually scale down the productions of biomass wood pellets and in the second half of 2020 made the decision to cease the operation of the business. Accordingly, the cessation of biomass wood pellets operation is presented as a discontinued operation in the consolidated financial statements of the Group with the comparatives for the corresponding year of 2019 be restated to conform with the current year's presentation.
   The Group changed the factory site for the biomass wood pellets operation to a market for trading of agricultural products and leased the market to a third party. The Group also lease out other land and factory buildings of the PRC subsidiaries which are surplus to needs in order to generate a stable and recurring rental income. Accordingly, leasing activities become a new business segment of the Group.
   These consolidated financial statements are presented in Renminbi ("RMB"), unless otherwise stated. These consolidated financial statements have been approved for issue by the Board of Directors (the "Board") on 17 May 2021.
2. BASIS OF PREPARATION AND CHANGES IN ACCOUNTING POLICY AND DISCLOSURES
3. 1. Basis of preparation
      Compliance with International Financial Reporting Standards and Hong Kong Companies Ordinance
      The consolidated financial statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRSs") and the disclosure requirements of the Hong Kong Companies Ordinance ("HKCO").
      Going concern basis
      The Group incurred a net loss of RMB235,302,000 and reported a net operating cash outflow of RMB29,473,000 during the year ended 31 December 2020. As at 31 December 2020, the Group's equity attributable to shareholders of the Company amounted to RMB169,271,000. Due to the increase in people cost and the pressure of environmental protection from the PRC local government, there was a sharp decline in the business of production and sales of biomass wood pellets in 2019 and it became worse in 2020 after the outbreak of COVID-19 pandemic. The Directors of the Company decided to shut down the biomass wood pellets business starting from July 2020.
      As at 31 December 2020, the Group's current borrowings amounted to RMB57,937,000 in total, including RMB29,037,000 bonds borrowings in Hong Kong and RMB28,900,000 bank borrowings in the PRC, while the Group's cash and cash equivalents was only RMB5,763,000.

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