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.

GOLDEN RESOURCES DEVELOPMENT INTERNATIONAL LIMITED

金 源 米 業 國 際 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock code: 677)

2019/2020 INTERIM RESULTS ANNOUNCEMENT

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2019

SUMMARY OF INTERIM RESULTS

The Directors of Golden Resources Development International Limited (the "Company") are pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30th September, 2019 as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the six months ended

30th September,

2019

2018

(Unaudited)

(Unaudited)

Notes

HK$'000

HK$'000

REVENUE

3

835,021

686,529

Cost of sales

(552,721)

(481,849)

GROSS PROFIT

282,300

204,680

Net unrealized gain on financial assets

at fair value through profit or loss

1,008

2,996

Net other income

4

10,718

4,240

Selling and distribution costs

(165,409)

(133,561)

Administrative expenses

(88,761)

(81,792)

Interest on lease liabilities

(10,555)

―

PROFIT/(LOSS) FROM OPERATIONS

3

29,301

(3,437)

Share of results of associates

3,530

(2,449)

PROFIT/(LOSS) BEFORE TAXATION

5

32,831

(5,886)

Taxation

6

(8,003)

(3,697)

PROFIT/(LOSS) FOR THE PERIOD

24,828

(9,583)

Profit/(loss) attributable to:

Shareholders of the Company

24,768

(9,511)

Non-controlling interests

60

(72)

24,828

(9,583)

EARNINGS/(LOSS) PER SHARE

8

- Basic

HK1.5 cents

HK(0.6) cents

- Diluted

HK1.5 cents

HK(0.6) cents

1

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended

30th September,

2019

2018

(Unaudited)

(Unaudited)

HK$'000

HK$'000

PROFIT/(LOSS) FOR THE PERIOD

24,828

(9,583)

OTHER COMPREHENSIVE LOSS

Items to be reclassified to profit or loss in subsequent periods:

Exchange differences on translation of foreign operations

(4,452)

(6,255)

Share of other comprehensive loss of associates

(179)

(1,881)

Other comprehensive loss for the period, net of tax

(4,631)

(8,136)

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD

20,197

(17,719)

Total comprehensive income/(loss) attributable to:

Shareholders of the Company

20,904

(16,446)

Non-controlling interests

(707)

(1,273)

20,197

(17,719)

2

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

30th

31st

September,

March,

2019

2019

(Unaudited)

(Audited)

Notes

HK$'000

HK$'000

NON-CURRENT ASSETS

Property, plant and equipment

185,148

164,912

Right-of-use assets

295,224

―

Investment properties

162,790

162,790

Intangible asset

22,505

22,505

Interests in associates

178,435

174,926

Financial assets at fair value through profit or loss

47,547

39,691

Prepaid lease payments

13,731

14,170

Rental and related deposits paid

27,027

―

Deposit paid for additional interests in financial

assets at fair value through profit or loss

―

7,856

932,407

586,850

CURRENT ASSETS

Inventories

186,844

173,938

Trade debtors

9

56,081

66,605

Other debtors, deposits and prepayments

67,475

68,044

Financial assets at fair value through profit or loss

271,314

259,209

Tax recoverable

―

798

Cash and cash equivalents

260,833

252,153

842,547

820,747

CURRENT LIABILITIES

Trade creditors

10

109,486

72,266

Other creditors and accruals

84,429

74,680

Lease liabilities

88,134

―

Tax liabilities

7,510

―

289,559

146,946

NET CURRENT ASSETS

552,988

673,801

TOTAL ASSETS LESS CURRENT LIABILITIES

1,485,395

1,260,651

NON-CURRENT LIABILITIES

Lease liabilities

223,967

―

Deferred tax liabilities

2,280

2,576

226,247

2,576

1,259,148

1,258,075

CAPITAL AND RESERVES

Share capital

169,741

169,741

Reserves

1,066,463

1,080,151

Shareholders' equity

1,236,204

1,249,892

Non-controlling interests

22,944

8,183

1,259,148

1,258,075

3

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

For the six months ended 30th September, 2019

  1. BASIS OF PREPARATION
    The unaudited condensed financial statements have been prepared in accordance with Hong Kong
    Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants ("the HKICPA") and with the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities (the "Listing Rules") on The Stock Exchange of Hong Kong Limited (the "Stock Exchange").
  2. SIGNIFICANT ACCOUNTING POLICIES
    The unaudited condensed financial statements have been prepared under the historical cost convention, as modified for the revaluation of investment properties and financial assets at fair value through profit or loss which are measured at fair values, as appropriate.
    In the current period, the Group has adopted the following new or revised standards and amendments (the "new HKFRSs") issued by the HKICPA, which are or have become effective for the Group's financial year beginning on 1st April, 2019:

HKFRSs (Amendments)

Annual Improvements to HKFRSs 2015-2017 Cycle

HKFRS 9 (Amendments)

Prepayment Features with Negative Compensation

HKFRS 16

Leases

HKAS 19 (Amendments)

Employee Benefits

HKAS 28 (Amendments)

Long-term Interests in Associates and Joint Ventures

HK(IFRIC) - Int 23

Uncertainty over Income Tax Treatments

The adoption of the new HKFRSs has had no material effect on the condensed consolidated financial statements of the Group for the current or prior accounting periods except for HKFRS 16 which will be explained below. Accordingly, no prior period adjustment has been required.

Impacts and changes in accounting policies of application on HKFRS 16 "Leases"

The Group has applied HKFRS 16 for the first time in the current period. HKFRS 16 superseded HKAS 17 "Leases" and the related interpretations.

As a lessee

On transition, the Group has made the following adjustments upon application of HKFRS 16:

  • The Group recognised lease liabilities of HK$245,405,000 and right-of-use assets of HK$231,182,000 at 1st April, 2019.
  • When recognising the lease liabilities for leases previously classified as operating leases, the Group has applied incremental borrowing rates of the relevant group entities at the date of initial application. The weighted average lessee's incremental borrowing rate applied is 4.25%.

4

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Impacts and changes in accounting policies of application on HKFRS 16 "Leases" (Continued)

The reconciliation of lease liabilities as at 1st April, 2019 to the operating leases commitments as at 31st March, 2019 is as follows:

At 1st April,

2019

HK$'000

Operating lease commitments disclosed as at 31st March, 2019

289,410

Lease liabilities discounted at relevant incremental borrowing rates

245,550

Less: Recognition exemption - short-term leases

(145)

Lease liabilities as at 1st April, 2019

245,405

Analysed as:

Current

69,738

Non-current

175,667

245,405

The carrying amount of right-of-use assets as at 1st April, 2019 comprises the following:

Right-of-use assets relating to operating leases recognized upon application of HKFRS 16

By class:

Land and buildings

At 1st April, 2019 HK$'000

231,182

231,182

The following table summarises the impacts of transition to HKFRS 16 on retained profits at 1st April, 2019.

Retained earnings

Depreciation of right-of-use assets from commencement dates upon application of HKFRS 16

Interest on lease liabilities from commencement dates upon application of HKFRS 16

Less: Lease expenses of operating leases under HKAS 17 before 1st April, 2019

Impact at 1st April, 2019

Impacts of adopting HKFRS 16 at 1st April, 2019 HK$'000

180,857

37,450

(204,084)

14,223

5

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

Impacts and changes in accounting policies of application on HKFRS 16 "Leases" (Continued)

The following adjustments were made to the amounts recognised in the condensed consolidated statement of financial position at 1st April, 2019. Line items that were not affected by the changes have not been included.

Impacts on assets and (liabilities) as at 1st April, 2019

Carrying

amount

previously

reported at

31st March,

2019

HK$'000

(Audited)

Non-current assets

Right-of-use assets

-

Rental and related deposits paid

-

Current assets

Other debtors, deposits and prepayments

68,044

Current liabilities

Lease liabilities

-

Non-current liabilities

Lease liabilities

-

Capital and reserves

Reserves

1,080,151

Impacts of adopting HKFRS 16 HK$'000

231,182

22,028

(22,028)

69,738

175,667

(14,223)

Carrying amount under HKFRS 16 at 1st April, 2019 HK$'000 (Restated)

231,182

22,028

46,016

69,738

175,667

1,065,928

6

3. SEGMENT INFORMATION

An analysis of the Group's segment information by operating segments is as follows:

Operating segments

Statement of profit or loss for the six months ended 30th September, 2019

Convenience

Rice

store

Securities

Property

Corporate

operation

operation

investment

investment

and others

Consolidated

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

REVENUE

Total sales

391,625

441,254

-

2,142

-

835,021

RESULTS

Segment results

45,016

(19,293)

2,484

655

439

29,301

Share of results of

associates

(161)

-

-

1,090

2,601

3,530

Profit before taxation

32,831

Taxation

(8,003)

Profit for the period

24,828

Profit attributable to:

Shareholders of

the Company

24,768

Non-controlling

interests

60

24,828

Segment assets and liabilities as at 30th September, 2019

Convenience

Rice

store

Securities

Property

Corporate

operation

operation

investment

investment

and others

Consolidated

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

ASSETS

Segment assets

202,684

606,976

271,712

253,012

262,135

1,596,519

Interests in associates

14,739

-

-

109,467

54,229

178,435

Consolidated total assets

1,774,954

LIABILITIES

Segment liabilities

32,953

461,810

-

1,140

10,113

506,016

Unallocated corporate

liabilities

9,790

Consolidated total liabilities

515,806

7

3. SEGMENT INFORMATION (Continued) Operating segments (Continued)

Statement of profit or loss for the six months ended 30th September, 2018

Convenience

Rice

store

Securities

Property

Corporate

operation

operation

investment

investment

and others

Consolidated

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

REVENUE

Total sales

369,833

314,792

-

1,904

-

686,529

RESULTS

Segment results

18,371

(26,054)

4,134

486

(374)

(3,437)

Share of results of

associates

12

-

-

634

(3,095)

(2,449)

Loss before taxation

(5,886)

Taxation

(3,697)

Loss for the period

(9,583)

Loss attributable to:

Shareholders of

the Company

(9,511)

Non-controlling

interests

(72)

(9,583)

Segment assets and liabilities as at 31st March, 2019

Convenience

Rice

store

Securities

Property

Corporate

operation

operation

investment

investment

and others

Consolidated

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

ASSETS

Segment assets

223,237

247,666

259,812

248,266

252,892

1,231,873

Interests in associates

13,888

-

-

108,575

52,463

174,926

Unallocated corporate assets

798

Consolidated total assets

1,407,597

LIABILITIES

Segment liabilities

34,775

99,261

-

1,172

11,738

146,946

Unallocated corporate

liabilities

2,576

Consolidated total liabilities

149,522

8

3. SEGMENT INFORMATION (Continued)

Geographical segments

The Group's operations are located in Hong Kong, Vietnam and other regions.

The following table provides an analysis of the Group's sales by location of markets, irrespective of the origin of the goods/services:

Revenue by

geographical markets

For the six months ended

30th September,

2019

2018

(Unaudited)

(Unaudited)

HK$'000

HK$'000

Hong Kong

386,393

364,496

Vietnam

441,254

314,792

Others

7,374

7,241

835,021

686,529

4.

NET OTHER INCOME

For the six months ended

30th September,

2019

2018

(Unaudited)

(Unaudited)

HK$'000

HK$'000

Interest revenue on:

- Financial assets at fair value through profit or loss

1,233

1,264

- Financial assets measured at amortized cost

1,599

850

2,832

2,114

Dividend from financial assets at fair value through

profit or loss

1,259

1,149

Net realized (loss)/gain on disposal of financial assets at

fair value through profit or loss

(338)

242

Net foreign exchange loss

(727)

(2,065)

Net loss on disposal of property, plant and equipment

(812)

(912)

Sundry income

8,504

3,712

10,718

4,240

9

5. PROFIT/(LOSS) BEFORE TAXATION Profit/(loss) before taxation is arrived at after charging:

For the six months ended

30th September,

2019

2018

(Unaudited)

(Unaudited)

HK$'000

HK$'000

Depreciation and amortisation of property,

plant and equipment

20,676

18,236

Depreciation of right-of-use assets

38,318

－

Amortisation of prepaid lease payments

257

260

Interest on lease liabilities

10,555

－

6.

TAXATION

For the six months ended

30th September,

2019

2018

(Unaudited)

(Unaudited)

HK$'000

HK$'000

Current tax:

Hong Kong

8,287

4,197

Other regions in the PRC

12

18

8,299

4,215

Overprovision in prior years:

Hong Kong

－

(1)

Deferred tax

(296)

(517)

Taxation attributable to the Company and

its subsidiaries

8,003

3,697

Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable profit for both periods, except for the first HK$2,000,000 of a qualified entity's assessable profit which is calculated at 8.25%, in accordance with the two-tiered profit tax rate regime. Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions.

10

7. DIVIDEND

  1. Dividend attributable to the interim period:

For the six months ended

30th September,

20192018

(Unaudited) (Unaudited)

HK$'000 HK$'000

Interim dividend declared after the

interim period end of HK1.1 cents

per share on 1,697,406,458 shares

(2018: HK1.1 cents per share on

1,697,406,458 shares)

18,671

18,671

The interim dividend declared after the interim period end has not been recognised as a liability at the interim period end date.

  1. Dividend attributable to the previous financial year, approved and paid during the interim period:

For the six months ended

30th September,

20192018

(Unaudited) (Unaudited)

HK$'000 HK$'000

Final dividend in respect of the

previous financial year, approved

and paid during the interim period,

of HK1.2 cents per share on

1,697,406,458 shares

(2018: HK1.2 cents per share on

1,697,406,458 shares)

20,369

20,369

8. EARNINGS/(LOSS) PER SHARE

The calculation of the basic earnings/(loss) per share attributable to the shareholders of the Company is based on the following data:

For the six months ended

30th September,

20192018

(Unaudited) (Unaudited)

HK$'000 HK$'000

Earnings/(loss) for the purpose of basic earnings/(loss)

per share

24,768

(9,511)

The Company has no dilutive potential ordinary shares in issue at the end of both periods.

11

9. TRADE DEBTORS

The Group allows an average credit period of 30-60 days to its trade customers. The following is an aging analysis of trade debtors at the end of the reporting period according to the delivery date:

30th

31st

September,

March,

2019

2019

(Unaudited)

(Audited)

HK$'000

HK$'000

Within 30 days

25,469

26,740

31-60 days

19,491

26,035

61-90 days

7,520

11,138

Over 90 days

3,601

2,692

56,081

66,605

As at 30th September, 2019, the balance of trade debtors over 90 days of approximately HK$3,601,000 (31st March, 2019: HK$2,692,000) were past due but not impaired as the balances were related to debtors with sound repayment history and no recent history of default.

10. TRADE CREDITORS

The following is an aging analysis of trade creditors at the end of the reporting period according to the delivery date:

30th

31st

September,

March,

2019

2019

(Unaudited)

(Audited)

HK$'000

HK$'000

Within 30 days

107,311

71,349

31-60 days

954

392

61-90 days

342

21

Over 90 days

879

504

109,486

72,266

12

CHAIRMAN STATEMENT

I am pleased to report the Group's strong revenue growth and margin improvement in both Vietnam Circle K convenience stores and our leading Hong Kong rice brands. These results demonstrate clear improvements in our operational performance and indicate a positive trend in efficiency and effectiveness of our dedicated and hard-working teams in HK and Vietnam.

Circle K Convenience Stores (Vietnam)

In Vietnam, as of 30 September 2019, the Group operated 366 Circle K convenience stores, compared to 293 at this time last year, covering six major cities and provinces in Ho Chi Minh City, Hanoi, Vung Tau, Binh Duong, Can Tho and Ha Long. The business performance of Circle K stores for the half year was very encouraging. Our steady revenue growth coupled with the improvement in profit margin, resulted in positive EBITDA for the half year ended 30 September 2019.

These results were due to the integration of increasing O2O (online-to-offline) businesses leveraged on the expanding geographical footprint of the stores, increase in customer base and per transaction value, enhancement of our supply chain management, and most importantly our local management teams and front-line staffs. We view the Circle K stores to be an evolving business platform for the Group's long- term growth prospect in Vietnam.

Rice Brands (Hong Kong)

In Hong Kong, the rice operating business environment continued to be competitive and challenging, especially in context of the headline news.

The revenue for the Group's rice business rose 6% to HK$392 million for the half year ended 30 September 2019 compared with same period last year. During this period, the Group managed to improve the profit margin despite the international premium rice price persisting in high level. The Group continued to improve cost control measures, optimize operational efficiency and strengthen customer services management teams and systems as the market leader in the highly competitive Hong Kong rice market.

To meet and satisfy changing customer demographics, profiles, tastes and trends, we launched the Kangaroo Low Glycemic Index Rice (GI-Rice) as well as the Golden Elephant Microwavable Cooked Thai Jasmine Rice (GO-Rice). Both new offerings have been well-received by the marketplace as "well- being'' across all product categories gains increasing traction, especially in increasing demand by gluten- free-diets (GFD) and low glycemic-index (GI) -conscious customers, combined with demand for quality, consistency, value, convenience and single-serving portions.

13

CHAIRMAN STATEMENT (Continued)

Outlook

The Group is optimistic about our diversification strategy and the impressive growth and development witnessed in Vietnam. As the only country in South East Asia boasting a 6-7% GDP growth consistently over recent years, our group remain resilient on the development of industries and infrastructure in the region. This can be witnessed through robust growth in all sectors of industries, most notably retail, hard industries and e-commerce.

It is with this rationale in mind, founded by existing data, that the Group committed to build a logistics joint venture with S.F. Express (Overseas) Limited to service the growing economy of Vietnam. GSL Global Company Limited ("GSL"), the joint venture between the aforementioned companies, aims to provide high-quality logistics services by extending its services to segments of production, supply, sales and distribution of all goods and services, whilst leveraging on the national coverage and distribution network of our Circle K business unit. Logistics products of the company mainly include various types of express services such as express delivery, intra-city delivery, warehousing services and international express delivery; also cold-chain transportation services for the customers for the fresh produce, food products and pharmaceutical segments. By focusing on customers' needs, GSL provides diversified products and comprehensive logistic services.

Looking ahead, the development of our Vietnam Circle K convenience stores and our Hong Kong rice brands are both very positive. The Group views continuous and selective technology upgrades and integration as high-value assets and significant added-values to our Businesses. The Group's CAPEX budget reflects investments into our existing IT infrastructures and utilizing leading-edge technologies to enhance our customer service delivery, sales efficiency and timely data-driven decisions for prioritizing key performance metrics of the Group.

With net cash position of HK$261 million as of 30 September 2019 and a strong balance sheet, the Group is well positioned to engage in favourable business investment opportunities and to diversify our operations to generate stable long-term returns for the shareholders.

14

LIQUIDITY AND FINANCIAL RESOURCES

The Group had cash balance of approximately HK$261 million as at 30th September, 2019. With cash and other current assets of approximately HK$843 million as at 30th September, 2019 as well as available banking facilities, the Group has sufficient financial resources to satisfy its commitments and working capital requirements.

INTERIM DIVIDEND

The Directors have declared an interim dividend of HK1.1 cents per share for the year ending 31st March, 2020 (2018/2019: HK1.1 cents per share) to the shareholders on the Register of Members of the Company at the close of business on Friday, 20th December, 2019.

It is expected that the interim dividend will be paid to the shareholders on or about Wednesday, 8th January, 2020.

CLOSURE OF REGISTER OF MEMBERS

The Register of Members of the Company will be closed from Monday, 16th December, 2019 to Friday, 20th December, 2019, both days inclusive, during which period no transfer of shares will be registered.

In order to qualify for the interim dividend, all transfers of shares accompanied by the relevant share certificates and the appropriate transfer forms must be lodged with the Company's Branch Share Registrar in Hong Kong, Tricor Standard Limited, Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong for registration not later than 4:30 p.m. (Hong Kong time) on Friday, 13th December, 2019.

EMPLOYEES AND REMUNERATION POLICY

The total number of employees for the Group is about 3,631.

Remuneration packages are reviewed by the Group from time to time. In addition to salary payments, other fringe benefits for the staff include retirement benefits schemes and medical insurance scheme, as well as quarters and housing allowances for certain staff. The Group has taken out personal accident insurance for senior staff and the staff who frequently travel overseas on business trips.

CORPORATE GOVERNANCE PRACTICES

The Company adopted all the code provisions in the Corporate Governance Code and Corporate Governance Report (the "Code") as set out in Appendix 14 to the Listing Rules as its own code on corporate governance. The Company has complied with the Code throughout the six months ended 30th September, 2019.

MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in Appendix 10 to the Listing Rules as its own code of conduct regarding securities transactions by the Directors of the Company. All Directors have confirmed, following specific enquiry by the Company, that they fully complied with the required standard as set out in the Model Code throughout the review period.

15

AUDIT COMMITTEE

The audit committee comprising three Independent Non-executive Directors, Mr. Joseph LAM Yuen To, Mr. Michael YU Tat Chi and Mr. Ronald YAN Mou Keung, had reviewed with management the accounting principles and practices adopted by the Group and discussed auditing, internal control and financial reporting matters including the review of the unaudited financial statements of the Group for the six months ended 30th September, 2019.

PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SHARES

Neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company's listed shares for the six months ended 30th September, 2019.

PUBLICATION OF THE INTERIM RESULTS AND INTERIM REPORT

The interim results announcement is published on the website of Hong Kong Exchanges and Clearing Limited (www.hkex.com.hk) and the website of the Company (www.grdil.com). The 2019/2020 interim report will be dispatched to shareholders and will be published on the aforementioned websites in due course.

On behalf of the Board

Golden Resources Development International Limited

Laurent LAM Kwing Chee

Chairman

Hong Kong, 27th November, 2019

As at the date of this announcement, the executive directors of the Company are Mr. Laurent LAM Kwing Chee (Chairman), Mr. Anthony LAM Sai Ho (Vice Chairman and Chief Executive Officer), Madam LAM Sai Mann, Ms. Morna YUEN Mai-tong and Mr. TSANG Siu Hung. The non-executive director of the Company is Mr. Dennis LAM Saihong. The independent non-executive directors of the Company are Mr. Joseph LAM Yuen To, Mr. Michael YU Tat Chi and Mr. Ronald YAN Mou Keung.

16

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Golden Resources Development International Ltd. published this content on 27 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 November 2019 10:42:02 UTC