ASIA ENERGY LOGISTICS GROUP 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.
ASIA ENERGY LOGISTICS GROUP LIMITED 亞 洲 能 源 物 流 集 團 有 限 公 司(Incorporated in Hong Kong with limited liability)
(Stock Code: 351) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 RESULTSThe board (the "Board") of directors (the "Directors") of Asia Energy Logistics Group Limited (the "Company") announces the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2016, together with the comparative figures for the previous corresponding period, as follows:
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFor the six months ended 30 June 2016
For the six months ended 30 June 2016 2015HK$'000 HK$'000
Notes (Unaudited) (Unaudited)
Revenue 3 3,755 13,153
Cost of sales (8,092) (10,047)
Gross (loss)/profit (4,337) 3,106
Other income, gains and (losses) 4 (1,640) 42
Depreciation and amortisation (799) (1,416)
Staff costs (8,899) (9,544)
Change in fair value of contingent consideration
payable - (17,985)
Change in fair value of derivative component of
convertible notes 13 356 8,794 Change in fair value of options/commitment to issue
convertible notes | 13 | (1,544) | (94,847) |
Impairment loss on property, plant and equipment | 11 | (420) | - |
Impairment loss on construction in progress | 11 | (187,076) | - |
Impairment loss on railway construction prepayment | 11 | (978) | - |
Share of results of jointly controlled entity | (6,950) | (3,744) | |
Other operating expenses | (8,148) | (11,722) | |
Finance costs | 6 | (40,872) | (54,117) |
Notes | 2016 HK$'000 (Unaudited) | 2015 HK$'000 (Unaudited) | |
Loss before income tax | 7 | (261,307) | (181,433) |
Income tax | 8 | - | - |
Loss for the period | (261,307) | (181,433) | |
Other comprehensive income Exchange difference arising on translation of financial statements of foreign operations which may be reclassified subsequently to profit or loss | (3,494) | 36 | |
Total comprehensive income for the period | (264,801) | (181,397) | |
Loss for the period attributable to: Owners of the Company | (164,750) | (157,414) | |
Non-controlling interests | (96,557) | (24,019) | |
(261,307) | (181,433) | ||
Total comprehensive income for the period attributable to: Owners of the Company | (166,800) | (157,431) | |
Non-controlling interests | (98,001) | (23,966) | |
(264,801) | (181,397) | ||
Loss per share - basic and diluted (HK cent per share) | 9 | (1.16) | (1.16) |
As at 30 June 2016
Notes | At 30 June 2016 HK$'000 (Unaudited) | At 31 December 2015 HK$'000 (Audited) | |
Non-current assets | |||
Property, plant and equipment | 41,159 | 40,579 | |
Intangible assets | 1,000 | 1,000 | |
Construction in progress | 11 | 1,779,321 | 2,002,985 |
Railway construction prepayment Interest in a jointly controlled entity | 11 | 9,299 - | 10,468 - |
1,830,779 | 2,055,032 | ||
Current assets | |||
Other receivables and prepayments | 51,923 | 51,522 | |
Cash and cash equivalents | 12,140 | 30,512 | |
64,063 | 82,034 | ||
Current liabilities | |||
Trade and other payables | 12 | 170,335 | 154,512 |
Bank loans and other borrowings | 629,080 | 617,662 | |
Convertible notes | 13 | 4,925 | 364 |
Amount due to a jointly controlled entity | 143,961 | 137,060 | |
Amounts due to minority equity owners of subsidiaries | 8,558 | 8,731 | |
956,859 | 918,329 | ||
Net current liabilities | (892,796) | (836,295) | |
Total assets less current liabilities | 937,983 | 1,218,737 | |
Non-current liabilities Bank loans | 872,261 | 889,846 | |
Contingent consideration payable | - | - | |
872,261 | 889,846 | ||
Net assets | 65,722 | 328,891 | |
Capital and reserves attributable to owners of the Company Share capital | 14 | 1,588,011 | 1,586,379 |
Other reserves | (1,530,020) | (1,363,220) | |
Equity attributable to owners of the Company | 57,991 | 223,159 | |
Non-controlling interests | 7,731 | 105,732 | |
TOTAL EQUITY | 65,722 | 328,891 |
1. BASIS OF PREPARATION AND GOING CONCERN ASSUMPTION
The unaudited condensed consolidated interim financial statements have been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"), including compliance with the Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA").
The financial information relating to the year ended 31 December 2015 that is included in these interim financial statements as comparative information does not constitute the Company's statutory annual consolidated financial statements for that year but is derived from those financial statements for the year ended 31 December 2015 which had been delivered to the Registrar of Companies in Hong Kong. The auditor had reported on those financial statements, which the auditor had expressed a disclaimer of opinion and had included a statement under section 407(3) of the Hong Kong Companies Ordinance.
During the period, the Group incurred a loss of approximately HK$261,307,000 and as at 30 June 2016, it had net current liabilities of approximately HK$892,796,000 which principally included bank loans and related interest, and construction costs payable incurred for the development of the Zunxiao railway as discussed below. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern, and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business.
The Group's net current liabilities as at 30 June 2016 are mainly attributable to its three non-wholly owned subsidiaries, 承德寬平鐵路有限公司 (Chengde Kuanping Railway Limited*) ("Kuanping Company"), 承德遵小鐵路有限公司 (Chengde Zunxiao Railway Limited*) ("Zunxiao Company") and 唐山唐承鐵 路運輸有限責任公司 (Tangshan Tangcheng Railway Transportation Company Limited*) ("Tangcheng Company") (collectively the "Railway Companies") which are principally engaged in the construction and operations of a railway connecting Tangshan City (唐山市) and Chengde City (承德市), Hebei Province (河 北省), the People's Republic of China (the "PRC"), (the "Zunxiao Railway").
As described in the Company's announcement dated 28 February 2014, the Group, through its wholly- owned subsidiary, entered into three disposal agreements dated 14 February 2014 as amended subsequently, by three supplemental agreements (collectively the "Disposal Agreements") with 河北建投交通投資 有限責任公司 (Hebei Construction, Transportation and Investment Co., Ltd.*) ("Hebei CTICL" or the "Purchaser") for the disposal of its majority equity interests in Kuanping Company and Zunxiao Company (with 9.48% equity interest to be retained by the Group) and the entire equity interest in Tangcheng Company ("the Disposal") at an aggregate cash consideration of RMB433,270,000.
In accordance with the Disposal Agreements, if the competent authority in charge of commerce (the "Competent Authority") has not approved the Disposal Agreements within the specified time limit, the Group or the Purchaser can terminate the Disposal Agreements by giving written notice to the other party.
* for identification purposes only
Asia Energy Logistics Group Ltd. published this content on 19 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 19 August 2016 14:45:08 UTC.
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