Fujikon Industrial : INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018 (in PDF)

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.

INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018

FINANCIAL HIGHLIGHTS

• - Revenue: HK$743.7 million, up 18.1% (2017: HK$629.8 million)

• - Gross profit: HK$149.1 million, up 6.1% (2017: HK$140.5 million)

• - Profit attributable to equity holders of the Company: HK$37.3 million, up 50.5%

  (2017: HK$24.7 million)

• - Basic earnings per share: HK8.84 cents (2017: HK5.89 cents)

• - Dividends (per share): HK4.0 cents (2017: HK4.0 cents)

UNAUDITED INTERIM RESULTS

The board of directors (the "Board") of Fujikon Industrial Holdings Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries ("Fujikon" or the "Group") for the six months ended 30 September 2018.

The interim results have been reviewed by the Company's Audit Committee and independent auditor in accordance with Hong Kong Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants.

* for identification purpose only

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Revenue Cost of sales

Gross profit

Other gains/(losses) - net Distribution and selling expenses General and administrative expenses

Operating profit

Finance income - net

Profit before income tax Income tax expensesProfit for the period

Other comprehensive income:

Items that will not be subsequently reclassified to profit or loss:

- Fair value losses on financial assets at fair value through other comprehensive income

Items that have been reclassified or may be subsequently reclassified to profit or loss:

-

Currency translation differences

Unaudited

Six months ended 30 September 2018 2017

Note

HK$'000

4

HK$'000

743,669 (594,590)

──────── 149,079

629,772 (489,247)

──────── 140,525

7,404 (8,013)

(8,130) (7,089)

(86,997) (76,284)

────────

────────

5

61,356 49,139

2,668 1,057

──────── 64,024

6

──────── 50,196

(12,167)

──────── 51,857 ---------------

(9,205)

──────── 40,991 ---------------

(64)

-

(36,833) 17,723

- Fair value gains on available-for-sale financial assets - 164

-

Release of investment reserve upon disposal of

available-for-sale financial assets - 20

Other comprehensive income for the period, net of taxTotal comprehensive income for the period

Profit attributable to:

Equity holders of the Company Non-controlling interests

Total comprehensive income attributable to: Equity holders of the Company

Non-controlling interests

Earnings per share for profit attributable to the equity holders of the Company during the period:

- Basic (HK cents per share)

- Diluted (HK cents per share)

────────

(36,897) ---------------

14,960 ════════

──────── 17,907 ---------------

58,898 ════════

37,252 24,747

14,605 16,244

──────── 51,857 ════════

──────── 40,991 ════════

3,091 41,445

11,869 17,453

──────── 14,960 ════════

8

8.84 ════════

8

8.82 ════════

──────── 58,898 ════════

5.89 ════════

5.88 ════════

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

NOTES

• 1. Basis of preparation

  The condensed consolidated interim financial information for the six months ended 30 September 2018 has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2018, which have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRS").

• 2. Accounting policies

  The accounting policies adopted are consistent with those of the Group's annual financial statements for the year ended 31 March 2018, except as mentioned below.

  • (a) New and amended standards adopted by the Group

    A number of new standards or amendments to standards became applicable for the current reporting period and the Group had to change its accounting policies and make retrospective adjustments as a result of adopting the following standards:

    HKFRS 9 Financial instruments

HKFRS 15

Revenue from contracts with customers and the related amendments

The impacts of the adoption of these standards are disclosed in Note 3 below. The other standards did not have a significant impact on the Group's accounting policies and did not require retrospective adjustments.

• (b) New standards, amendments to standards and interpretations that have been issued but are not effective

  The following new standards, amendments to standards and interpretations have been issued, but are not effective for the Group's financial year beginning on 1 April 2018 and have not been early adopted:

  HKFRS 9 (Amendments)	Prepayment features with negative compensation1
  HKFRS 10 and HKAS 28 (Amendments)	Sale or contribution of assets between an investor
  and its associate or joint venture3
  HKFRS 16	Leases1
  HKFRS 17	Insurance contracts2
  HKFRSs (Amendments)	Annual improvements to HKFRSs 2015-2017 cycle1
  HKAS 28 (Amendments)	Long-term interests in associates and joint ventures1
  HK(IFRIC) - Int 23	Uncertainty over income tax treatments1

  1	Effective for financial years beginning on or after 1 January 2019
  2	Effective for financial years beginning on or after 1 January 2021
  3	No mandatory effective date yet determined

  HKFRS 16, Leases

  Nature of change

  HKFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the consolidated statement of financial position, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are short-term and low-value leases.

  The accounting for lessors will not significantly change.

• 2. Accounting policies (Continued)

  (b) New standards, amendments to standards and interpretations that have been issued but are not effective (Continued)

  HKFRS 16, Leases (Continued)

  Impact

  The standard will affect primarily the accounting for the Group's operating leases. As at the reporting date, the Group has non-cancellable operating lease commitments of approximately HK$21.8 million. The Group has not yet assessed the adjustments, if any, are necessary for example because of the change in the definition of the lease term and the different treatment of variable lease payments and of extension and termination options. It is therefore not yet possible to estimate the amount of right-of-use assets and lease liabilities that will have to be recognised on adoption of the new standard and how this may affect the Group's profit or loss and classification of cash flows going forward.

  Date of adoption by the Group

  The standard is mandatory for financial years commencing on or after 1 January 2019. The Group does not intend to adopt the standard before its effective date. The Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption.

  There are no other standards and interpretations that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

• 3. Changes in accounting policies

  This note explains the impact of the adoption of HKFRS 9 Financial instruments ("HKFRS 9") and HKFRS 15 Revenue from contracts with customers ("HKFRS 15") on the Group's condensed consolidated interim financial information and also discloses the new accounting policies that have been applied from 1 April 2018, where they are different to those applied in prior periods.

  (a) Adoption of HKFRS 9

HKFRS 9 replaces the provisions of HKAS 39 that relate to the recognition, classification and measurement of financial assets and financial liabilities, derecognition of financial instruments, impairment of financial assets and hedge accounting.

The adoption of HKFRS 9 from 1 April 2018 resulted in changes in accounting policies and adjustments to the amounts recognised in the condensed consolidated interim financial information. In accordance with the transitional provisions in HKFRS 9, comparative figures have not been restated.

(i) Classification and measurement

On 1 April 2018 (the date of initial application of HKFRS 9), the Group's management has assessed which business models apply to the financial assets held by the Group and has classified its financial instruments into the appropriate HKFRS 9 categories.

The main effects resulting from this reclassification are as follows:

As at 1 April 2018

Reclassification

The Group has elected to present in other comprehensive income ("OCI") changes in fair value of its debt instruments previously classified as AFS, because these investments are held both collecting contractual cash flows and selling of these assets. As a result, assets with fair value of HK$3,928,000 were reclassified from AFS to FVOCI and fair value gains of HK$38,000 were reclassified from AFS reserve to FVOCI reserve within the "Investment reserve" on 1 April 2018.