ALLAN INTERNATIONAL HOLDINGS LIMITED 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.
ALLAN INTERNATIONAL HOLDINGS LIMITED(Incorporated in Bermuda with limited liability)
(Stock Code: 684) ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 MARCH 2016 RESULTSThe board of directors of Allan International Holdings Limited announces the audited consolidated results of the Company and its subsidiaries ("the Group") for the year ended 31 March 2016 together with the comparative figures for the year ended 31 March 2015, as follows:
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFor the year ended 31 March 2016
Revenue | 2 | HK$'000 1,565,325 | HK$'000 1,946,003 |
Cost of sales | (1,376,692) | (1,724,655) | |
Gross profit | 188,633 | 221,348 | |
Other income | 13,420 | 10,566 | |
Other gains and losses | 3 | (3,211) | 4,063 |
Selling and distribution expenses | (30,148) | (34,599) | |
Administrative expenses (Loss)/gain from changes in fair value of investment properties | (129,511) (6,000) | (144,017) 30,000 | |
Gain on sale and leaseback arrangement | 110,788 | - | |
Finance costs on bank loans | (959) | (1,428) | |
Profit before tax | 143,012 | 85,933 | |
Income tax expense | 4 | (7,356) | (15,453) |
Profit for the year attributable to owners of the Company | 5 | 135,656 | 70,480 |
Other comprehensive expense | |||
Item that may be reclassified subsequently to profit or loss: Exchange differences arising on translating foreign | |||
operations | (6,408) | (613) | |
Fair value (loss)/gain on available-for-sale investments | (727) | 143 |
Notes 2016 2015
Reclassified to profit or loss upon disposal of
available-for-sale investments 47 (507)
Translation reserve released upon dissolution of a
foreign operation - (5,993)
Other comprehensive expense for the year (7,088) (6,970)
Total comprehensive income for the year attributable to
owners of the Company 128,568 63,510
Earnings per share | 7 | |
Basic | HK40.4 cents | HK21.0 cents |
At 31 March 2016
Notes | 2016 HK$'000 | 2015 HK$'000 | |
Non-current assets | |||
Investment properties | 242,000 | 248,000 | |
Property, plant and equipment | 229,057 | 300,312 | |
Prepaid lease payments | 24,833 | 26,394 | |
Club debentures | 13,866 | 13,866 | |
Available-for-sale investments | 16,031 | 13,563 | |
Financial assets designated at fair value through profit or loss ("FVTPL") | 3,495 | 3,635 | |
Deposits paid for acquisition of property, | |||
plant and equipment | 108 | 2,967 | |
529,390 | 608,737 | ||
Current assets Inventories | 74,589 | 103,724 | |
Trade receivables and bills receivable | 8 | 300,729 | 400,033 |
Other receivables | 8 | 29,918 | 99,244 |
Mould deposits paid | 13,012 | 16,457 | |
Prepaid lease payments | 704 | 716 | |
Available-for-sale investments | 3,538 | 1,617 | |
Tax recoverable | 11,695 | 7,692 | |
Short-term deposits | 305,732 | 197,307 | |
Bank balances and cash | 424,879 | 208,304 | |
1,164,796 | 1,035,094 | ||
Current liabilities Trade payables | 9 | 200,717 | 262,593 |
Other payables and accruals | 133,242 | 140,540 | |
Deferred income | 19,252 | - | |
Mould deposits received | 26,919 | 33,912 | |
Tax liabilities | 33,261 | 40,294 | |
Secured bank loans - due within one year | 10,672 | 26,441 | |
424,063 | 503,780 | ||
Net current assets | 740,733 | 531,314 | |
Total assets less current liabilities | 1,270,123 | 1,140,051 |
Non-current liabilities
Deferred tax liabilities | 12,855 | 12,939 |
Deferred income | 36,901 | - |
Secured bank loans - due after one year | 46,533 | 51,657 |
96,289 | 64,596 | |
Net assets | 1,173,834 | 1,075,455 |
Capital and reserves | ||
Share capital | 33,543 | 33,543 |
Reserves | 1,140,291 | 1,041,912 |
1,173,834 | 1,075,455 | |
Notes: | ||
1. APPLICATION OF NEW AND REVISED ("HKFRSs") | HONG KONG FINANCIAL REPORTING | STANDARDS |
Application of amendments to HKFRSs |
The Group has applied for the following amendments to HKFRSs issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA") for the first time in the current year:
Amendments to HKAS 19 Defined Benefit Plans: Employee Contributions
Amendments to HKFRSs Annual Improvements to HKFRSs 2010 - 2012 Cycle
Amendments to HKFRSs Annual Improvements to HKFRSs 2011 - 2013 Cycle
The application of amendments to HKFRSs in the current year has had no material impact on the Group's financial performance and positions for the current and prior years and/or on the disclosures set out in these consolidated financial statements.
New and revised HKFRSs in issue but not yet effective
The Group has not early applied the following new and revised HKFRSs that have been issued but are not yet effective:
HKFRS 9 Financial Instruments1
HKFRS 15 Revenue from Contracts with Customers1
HKFRS 16 Leases4
Amendments to HKFRS 11 Accounting for Acquisitions of Interests in Joint Operations2 Amendments to HKAS 1 Disclosure Initiative2
Amendments to HKAS 16 and HKAS 38
Clarification of Acceptable Methods of Depreciation and Amortisation2
Amendments to HKFRSs Annual Improvements to HKFRSs 2012 - 2014 Cycle2
Amendments to HKAS 16 and HKAS 41
Amendments to HKFRS 10 and HKAS 28
Amendments to HKFRS 10, HKFRS 12 and HKAS 28
Agriculture: Bearer Plants2
Sale or Contribution of Assets between an Investor and its Associate or Joint Venture3
Investment Entities: Applying the Consolidation Exception2
1 Effective for annual periods beginning on or after 1 January 2018
2 Effective for annual periods beginning on or after 1 January 2016
3 Effective for annual periods beginning on or after a date to be determined
4 Effective for annual periods beginning on or after 1 January 2019
HKFRS 9 Financial Instruments
HKFRS 9 issued in 2009 introduced new requirements for the classification and measurement of financial assets. HKFRS 9 was subsequently amended in 2010 to include requirements for the classification and measurement of financial liabilities and for derecognition, and in 2013 to include the new requirements for general hedge accounting. Another revised version of HKFRS 9 was issued in 2014 mainly to include a) impairment requirements for financial assets and b) limited amendments to the classification and measurement requirements by introducing a "fair value through other comprehensive income" (FVTOCI) measurement category for certain simple debt instruments.
Key requirements of HKFRS 9 are described below:
all recognised financial assets that are within the scope of HKAS 39 Financial Instruments: Recognition and Measurement are subsequently measured at amortised cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortised cost at the end of subsequent accounting periods. Debt instruments that are held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets, and that have contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured at FVTOCI. All other debt investments and equity investments are measured at their fair value at the end of subsequent accounting periods. In addition, under HKFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognised in profit or loss.
in relation to the impairment of financial assets, HKFRS 9 requires an expected credit loss model, as opposed to an incurred credit loss model under HKAS 39. The expected credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition. In other words, it is no longer necessary for a credit event to have occurred before credit losses are recognised.
The directors of the Company anticipate the application of HKFRS 9 in the future may have a material impact on amounts reported in respect of the Group's financial assets and financial liabilities (e.g. the Group's investments in unlisted investment fund and debt securities that are currently classified as available-for-sale investments will have to be measured at fair value at the end of subsequent reporting periods, with changes in the fair value being recognised in profit or loss or in other comprehensive income (if certain criteria are met)). Furthermore, the directors of the Company expect that the application of the expected credit loss model will result in earlier recognition of credit losses in relation to the Group's financial assets. However, it is not practicable to provide a reasonable estimate of that effect until a detailed review has been completed.
HKFRS 15 Revenue from Contracts with Customers
HKFRS 15 was issued which establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. HKFRS 15 will supersede the current revenue recognition guidance including HKAS 18 Revenue , HKAS 11 Construction Contracts and the related Interpretations when it becomes effective.
The core principle of HKFRS 15 is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the Standard introduces a 5-step approach to revenue recognition:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation
Allan International Holdings Limited published this content on 27 June 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 June 2016 11:33:08 UTC.
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