KFM Kingdom : Announcement of Final Results for the Year Ended 31 March 2017

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.

KFM KINGDOM HOLDINGS LIMITED KFM 金德控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3816) ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2017

The board (the "Board") of directors (the "Directors" and each a "Director") of KFM Kingdom Holdings Limited (the "Company") hereby announces the consolidated results of the Company and its subsidiaries (together, the "Group") for the year ended 31 March 2017 prepared in accordance with relevant requirements of the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), together with the comparative figures for the year ended 31 March 2016.

For and on behalf of

KFM KINGDOM HOLDINGS LIMITED ZHANG HAIFENG

Chairman

Hong Kong, 26 June 2017

As at the date of this announcement, the executive Directors are Mr. Sun Kwok Wah Peter and Mr. Wong Chi Kwok; the non-executive Director is Mr. Zhang Haifeng (Chairman); and the independent non-executive Directors are Mr. Wan Kam To, Ms. Zhao Yue and Mr. Shen Zheqing.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2017

2017	2016
Notes	HK$'000	HK$'000
Revenue	4	879,478	852,620
Cost of sales	(669,649	(674,359
Gross profit	209,829	178,261
Other gains, net	5	16,040	15,128
Distribution and selling expenses	(20,140	(25,260
General and administrative expenses	(193,698	(197,452
Finance income	207	677
Finance costs	(16,654	(4,331
Share of loss of an associated entity	-	(3,453
Provision for impairment of interest in an associated entity	-	(3,867
Loss before tax	6	(4,416	(40,297
Income tax expenses	7	(12,638	(9,534
Loss for the year	(17,054	(49,831
Other comprehensive expense:
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations	(30,288	(24,334
Total comprehensive expense for the year	(47,342	(74,165
Loss for the year attributable to:
- Owners of the Company	(15,481	(45,827
- Non-controlling interests	(1,573	(4,004
(17,054	(49,831
Total comprehensive expense attributable to:
- Owners of the Company	(45,769	(70,161
- Non-controlling interests	(1,573	(4,004
(47,342	(74,165
LOSS PER SHARE	8
- Basic and diluted (HK cents)	(2.58	(7.64

) ) ) ) ) ) ) )

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) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 31 MARCH 2017

2017	2016
Notes	HK$'000	HK$'000
ASSETS
Non-current assets
Property, plant and equipment	10	351,803	396,324
Leasehold land and land use rights	11	22,233	24,067
Intangible assets	-	2,525
Goodwill	-	10,362
Interest in an associated entity	-	-
Deferred income tax assets	5,083	4,355
Total non-current assets	379,119	437,633
Current assets
Inventories	12	80,807	102,303
Trade and other receivables	13	220,760	205,033
Current income tax recoverable	1,515	1,223
Cash and cash equivalents	219,008	106,360
Total current assets	522,090	414,919
Total assets	901,209	852,552

2017	2016
Notes	HK$'000	HK$'000
EQUITY
Capital and reserves
Share capital	14	60,000	60,000
Share premium	26,135	26,135
Reserves	325,800	373,232
Capital and reserves attributable to owners of the Company	411,935	459,367
Non-controlling interests	2,477	2,387
Total equity	414,412	461,754
LIABILITIES
Non-current liabilities
Obligation under a finance lease	145	-
Deferred income tax liabilities	13,958	12,003
14,103	12,003
Current liabilities
Trade and other payables	15	151,937	155,748
Bank borrowings	16	45,200	216,895
Obligation under a finance lease	436	-
Unsecured borrowings from a related company	17	270,000	-
Derivative financial liability	-	2,113
Current income tax liabilities	5,121	4,039
Total current liabilities	472,694	378,795
Total liabilities	486,797	390,798
Total equity and liabilities	901,209	852,552
Net current assets	49,396	36,124
Total assets less current liabilities	428,515	473,757