K&P International : Announcement of Final Results for the Year Ended 31 December 2016

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

K & P International Holdings Limited

堅堅堅堅寶寶寶寶國國國國際際際際控控控控股股股股有有有有限限限限公公公公司司司司*

(Incorporated in Bermuda with limited liability)

(Stock code: 675)

ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 RESULTS

The Board of Directors (the "Board") of K & P International Holdings Limited (the "Company") herein announces the consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2016 together with the comparative figures for the corresponding year in 2015 as follows:

CONSOLIDATED INCOME STATEMENT Year ended 31 December 2016
Notes	2016 HK$	2015 HK$
REVENUE	4	431,017,389	431,756,667
Cost of sales	(378,419,345)	(371,068,152)
Gross profit	52,598,044	60,688,515
Other income and gains	4	12,564,077	10,976,365
Selling and distribution costs	(35,361,815)	(34,576,612)
Administrative and other expenses	(36,427,010)	(35,078,662)
Finance costs	5	(1,675,059)	(1,804,670)
(LOSS)/PROFIT BEFORE TAX	6	(8,301,763)	204,936
Income tax credit/(expense)	7	191,614	(50,822)
(LOSS)/PROFIT FOR THE YEAR
ATTRIBUTABLE TO OWNERS
OF THE COMPANY	(8,110,149)	154,114

(LOSS)/EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY 9

Basic (HK3.04 cents) HK0.06 cent

Diluted (HK3.04 cents) HK0.06 cent

* For identification purposes only

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year ended 31 December 2016
2016 HK$	2015 HK$
(LOSS)/PROFIT FOR THE YEAR	(8,110,149)	154,114
OTHER COMPREHENSIVE LOSS
Items that will not be reclassified to profit or loss:
Surplus arising from revaluation of land and buildings	12,190,768	5,820,648
Income tax effect	(4,441,346)	(582,672)
7,749,422	5,237,976
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	(12,727,767)	(6,137,548)
OTHER COMPREHENSIVE LOSS FOR THE YEAR,
NET OF TAX	(4,978,345)	(899,572)

TOTAL COMPREHENSIVE LOSS FOR THE YEAR ATTRIBUTABLE TO OWNERS OF THE COMPANY (13,088,494) (745,458) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 December 2016

Notes	2016 HK$	2015 HK$
NON-CURRENT ASSETS Property, plant and equipment	195,460,747	210,287,742
Prepaid land lease payments Other intangible assets Available-for-sale financial investment	11,269,694 - 680,000	12,335,607 - 680,000
Prepaid rent	-	155,550
Total non-current assets	207,410,441	223,458,899
CURRENT ASSETS Inventories	60,358,767	65,009,896
Prepayments, deposits and other receivables	9,977,939	9,643,532
Trade and bills receivables	10	76,658,999	74,509,281
Cash and cash equivalents	24,384,156	26,303,950
Total current assets	171,379,861	175,466,659
CURRENT LIABILITIES Trade payables	11	46,443,046	45,751,871
Accrued liabilities and other payables	42,490,503	52,220,561
Interest-bearing bank and other borrowings	36,399,168	28,640,910
Tax payable	119,426	2,578,712
Total current liabilities	125,452,143	129,192,054
NET CURRENT ASSETS	45,927,718	46,274,605
TOTAL ASSETS LESS CURRENT LIABILITIES	253,338,159	269,733,504
NON-CURRENT LIABILITIES Interest-bearing bank and other borrowings	5,894,556	13,706,022
Deferred tax liabilities	14,382,611	9,877,996
Total non-current liabilities	20,277,167	23,584,018
Net assets	233,060,992	246,149,486
EQUITY Issued capital	26,700,480	26,700,480
Reserves	206,360,512	219,449,006
Total equity	233,060,992	246,149,486

1. BASIS OF PREPARATION

These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable HKFRSs, Hong Kong Accounting Standards ("HKASs") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. These financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). These financial statements have been prepared under the historical cost convention, except for land and buildings and an available-for-sale financial investment, which have been measured at revalued amount/fair value. These financial statements are presented in Hong Kong dollars.

These financial statements have been prepared on a basis consistent with the accounting policies adopted in the 2015 financial statements except for the adoption of the new/revised HKFRSs that are relevant to the Group and effective from the current year as set out in note 2.

Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries as at 31 December each year. The financial statements of the subsidiaries are prepared for the same reporting period as that of the Company using consistent accounting policies.

All intra-group balances, transactions, income and expenses and profits and losses resulting from intra-group transactions are eliminated in full. The results of subsidiaries are consolidated from the date on which the Group obtains control and continue to be consolidated until the date that such control ceases.

Changes in ownership interest

Changes in the Group's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the owners of the Company.

When the Group loses control of a subsidiary, the gain or loss on disposal is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest determined at the date when control is lost and (ii) the carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests at the date when control is lost. The amounts previously recognised in other comprehensive income in relation to the disposed subsidiary are accounted for on the same basis as would be required if the parent had directly disposed of the related assets or liabilities. Any investment retained in the former subsidiary and any amounts owed by or to the former subsidiary are accounted for as a financial asset, associate, joint venture or others as appropriate from the date when control is lost.