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JTF International Holdings Limited

金 泰 豐 國 際 控 股 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8479)

FIRST QUARTER RESULTS ANNOUNCEMENT

FOR THE THREE MONTHS ENDED 31 MARCH 2021

The board of directors (the "Board") of JTF International Holdings Limited (the "Company") announces the unaudited condensed consolidated financial results of the Company and its subsidiaries (the "Group" or "our Group") for the three months ended 31 March 2021 together with comparative figures for the corresponding period in 2020 as follows:

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the three months

ended 31 March

2021

2020

Note

RMB'000

RMB'000

(Unaudited)

(Unaudited)

Revenue

3

433,465

136,629

Cost of sales

(407,904)

(129,827)

Gross profit

25,561

6,802

Other income - net

1

12

Distribution expenses

(5,710)

(4,784)

Administrative and other expenses

(2,755)

(2,909)

Operating profit/(loss)

17,097

(879)

Finance income/(cost) - net

126

(401)

Profit/(loss) before income tax

17,223

(1,280)

Income tax expense

4

(6,019)

(118)

Profit/(loss) for the period attributable

  to owners of the Company

11,204

(1,398)

Other comprehensive income

-

-

Total comprehensive income/(loss) for the period

  attributable to owners of the Company

11,204

(1,398)

Earnings/(loss) per share

5

1.2 cents

  - Basic and diluted (RMB)

(0.2 cents)

- 1 -

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the three months ended 31 March 2021

Other reserves

Share

Recapitalisation

Share

Capital

Statutory

Safety

Retained

capital

reserves

premium

reserves

reserves

reserves

earnings

Total

RMB'000

RMB'000

RMB'000

RMB'000

RMB'000

RMB'000

RMB'000

RMB'000

(Note a)

(Note b)

Balance at 1 January 2020 (Audited)

5,301

56,125

116,618

300

14,958

22,531

63,133

278,966

Loss and total comprehensive

  loss for the period

-

-

-

-

-

-

(1,398)

(1,398)

Appropriation to safety reserves

-

-

-

-

-

2,113

(2,113)

-

Issuance of shares

2,679

-

53,853

-

-

-

-

56,532

Share issuance costs

-

-

(1,150)

-

-

-

-

(1,150)

Balance at 31 March 2020 (Unaudited)

7,980

56,125

169,321

300

14,958

24,644

59,622

332,950

Balance at 1 January 2021 (Audited)

7,980

56,125

169,321

300

17,500

30,135

68,192

349,553

Profit and total comprehensive

  income for the period

-

-

-

-

-

-

11,204

11,204

Appropriation to safety reserves

-

-

-

-

-

951

(951)

-

Balance at 31 March 2021 (Unaudited)

7,980

56,125

169,321

300

17,500

31,086

78,445

360,757

Notes:

  1. STATUTORY RESERVES
    In accordance with the Company Law of the People's Republic of China ("PRC") and the articles of association of the Group's PRC subsidiary, the Group's PRC subsidiary is required to appropriate 10% of its profits after tax, as determined in accordance with relevant accounting principles generally accepted in the PRC and other applicable regulations, to the statutory reserve until such reserve reaches 50% of its registered capital. The appropriation to the reserve must be made before any distribution of dividends to equity holders of the PRC subsidiary. The statutory reserve can be used to offset previous years' losses, if any, and part of the statutory reserve can be capitalised as the PRC subsidiary's capital provided that the amount of such reserve remaining after the capitalisation shall not be less than 25% of its capital.
  2. SAFETY RESERVES
    Pursuant to certain regulations issued by the Ministry of Finance and the State Administration of Work Safety of the PRC, the Group's PRC subsidiary is required to set aside an amount to safety reserves at progressive rates from 0.2% to 4% of the total revenue from the sales of hazardous chemical since 14 February 2012. The reserve can be utilised for the spending in improvements and maintenances of work safety on the Group's daily operations, which are considered expenses in nature and charged to the profit and loss as incurred.

- 2 -

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  1. GENERAL INFORMATION
    The Company was incorporated in the Cayman Islands on 23 October 2014 as an exempted company with limited liability under the Companies Law Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The address of the Company's registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands.
    The Company is an investment holding company. The Company and its subsidiaries (together, the "Group") are principally engaged in the blending and sale of fuel oil, sale of refined oil and other petrochemicals in the People's Republic of China (the "PRC").
    The Company's shares were listed on GEM of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 17 January 2018.
    The ultimate holding company of the Company is Thrive Shine Limited, a company incorporated in the British Virgin Islands, which is owned as to 80% and 20% by Mr. Xu Ziming ("Mr. Xu") and Ms. Huang Sizhen ("Ms. Huang"), respectively. The ultimate controlling party of the Group is Mr. Xu and Ms. Huang (collectively, the "Controlling Shareholders").
    The unaudited condensed consolidated financial statements for the three months ended 31 March 2021 are presented in Renminbi ("RMB"), unless otherwise stated, and have been approved for issue by the Company's Board on 14 May 2021.
  2. BASIS OF PREPARATION AND ACCOUNTING POLICIES
    The unaudited condensed consolidated financial statements of the Group for the three months ended 31 March 2021 have been prepared in accordance with the disclosure requirements of the Rules Governing the Listing of Securities on GEM of the Stock Exchange. The unaudited condensed consolidated financial statements have been prepared under the historical cost convention.
    The accounting policies adopted in preparing the unaudited consolidated results for the three months ended 31 March 2021 are consistent with those adopted in the financial statements of the Group for the year ended 31 December 2020. The Hong Kong Institute of Certified Public Accountants has issued a number of new standards and amendments to Hong Kong Financial Reporting Standards ("HKFRSs") which are effective for the current accounting period of the Group, none of those developments have had a material effect on how the Group's results and financial position for the current or prior periods have been prepared or presented. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.

- 3 -

3. REVENUE

The Group principally engages in the blending and sale of fuel oil, and sale of refined oil and other petrochemical products in the PRC.

The major operating entity of the Group is domiciled in Mainland China, and the Group's revenue for the three months ended 31 March 2021 and 2020 respectively were derived in Mainland China.

Analysis of revenue is as follows:

For the three months ended

31 March

2021

2020

RMB'000

RMB'000

(Unaudited)

(Unaudited)

Sales of goods:

- Refined oil

305,489

124,663

- Fuel oil

50,816

7,805

- Other petrochemical products

74,490

-

430,795

132,468

Service income

2,670

4,161

433,465

136,629

4. INCOME TAX EXPENSE

The Company was incorporated in the Cayman Islands as an exempted company with limited liability and accordingly, is exempted from the Cayman Islands income tax.

No provision for Hong Kong profits tax was provided as the Group did not have assessable profit in Hong Kong for the three months ended 31 March 2021 (three months ended 31 March 2020: same). The profit of the group company in Hong Kong is mainly derived from dividend income from its subsidiary, which is not subject to Hong Kong profits tax.

The income tax provision of the Group in respect of its operations in Mainland China has been calculated at the applicable tax rate on the estimated assessable profit for the period.

Pursuant to the Enterprise Income Tax Law of the PRC (the "EIT Law") and the Implementation Rules of the EIT Law, the EIT is unified at 25% for all types of entities, effective from 1 January 2008. The standard tax rate of the Group's PRC entities was 25% for the three months ended 31 March 2021 (three months ended 31 March 2020: 25%).

According to the EIT Law and the Implementation Rules, starting from 1 January 2008, a withholding income tax of 10% is levied on the immediate holding company outside the PRC when its PRC subsidiary declares dividends out of profits earned after 1 January 2008. A lower 5% withholding income tax rate may be applied when the immediate holding company of the PRC subsidiary is established in Hong Kong and fulfils requirements under the tax treaty arrangements between the relevant authorities of Mainland China and Hong Kong. The applicable withholding income tax rate of the group company in Hong Kong was 10% for the three months ended 31 March 2021 (three months ended 31 March 2020: 10%).

- 4 -

5. EARNINGS/(LOSS) PER SHARE

Basic earnings/(loss) per share is calculated by dividing the profit/(loss) for the period by the weighted average number of ordinary shares in issue during the three months ended 31 March 2021 and 2020 respectively.

For the three months ended

31 March

20212020

(Unaudited) (Unaudited)

Profit/(loss) for the period (RMB'000)

11,204

(1,398)

Weighted average number of ordinary shares in issue

930,000,000

900,329,670

Basic earnings/(loss) per share (RMB)

1.2 cents

(0.2 cents)

Diluted earnings/(loss) per share is equal to basic earnings/(loss) per share as there was no potential diluted shares outstanding for the reporting period.

6. DIVIDENDS

The Board does not recommend the payment of an interim dividend for the three months ended 31 March 2021.

- 5 -

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JTF International Holdings Ltd. published this content on 14 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2021 14:04:22 UTC.