China Rundong Auto : 2017-8-29 Announcements and Notices - Interim Results-ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2017.pdf

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China Rundong Auto Group Limited

中 國 潤 東 汽 車 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 1365) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2017

The board (the "Board") of directors (the "Directors") of China Rundong Auto Group Limited 中國潤東汽車集團有限公司 (the "Company") is pleased to announce the unaudited consolidated interim results of the Company and its subsidiaries (collectively, the "Group", "our Group", "we" or "us") for the six months ended June 30, 2017 (the "Period Under Review"), as follows:

FINANCIAL HIGHLIGHTS

For the Period Under Review:

• Revenue increased by 18.1% to RMB9,292.9 million as compared with the same period of 2016.

• Sales revenue from new automobiles increased by 19.7% to RMB8,191.8 million as compared with the same period of 2016.

• After-sales service revenue increased by 7.0% to RMB1,101.1 million as compared with the same period of 2016.

• Commission income increased by 45.8% to RMB176.2 million as compared with the same period of 2016.

• Profit attributable to owners of the parent increased by 13.7% to RMB125.2 million as compared with the same period of 2016.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the six months ended June 30, 2017

2017	2016
Notes	RMB'000	RMB'000
(Unaudited)	(Unaudited)
REVENUE	4(a)	9,292,905	7,871,545
Cost of sales	5(b)	(8,612,503)	(7,119,720)
Gross profit	680,402	751,825
Other income and gains, net	4(b)	192,495	136,257
Selling and distribution costs	(221,263)	(218,482)
Administrative expenses	(238,845)	(226,521)
Other expenses	(6,702)	(40,266)
Finance costs	6	(204,743)	(216,117)
Profit before tax	5	201,344	186,696
Income tax expense	7	76,142	(70,140)
Profit for the period	125,202	116,556
Profit for the period attributable to:
Owners of the parent	125,202	110,158
Non-controlling interests	-	6,398
125,202	116,556
Earnings per share attributable to ordinary equity holders of the parent:
Basic (RMB)	8	0.13	0.12
Diluted (RMB)	8	0.08	0.07

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended June 30, 2017

2017	2016
RMB'000	RMB'000
(Unaudited)	(Unaudited)
Profit for the period	125,202	116,556
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Available-for-sale investments:
Changes in fair value	(3,400)	-
Income tax effect	850	-
(2,550)	-
Exchange differences on translation of foreign operations	997	313
Net other comprehensive (loss)/income to be reclassified to profit or loss in subsequent periods	(1,553)	313
Other comprehensive income for the period, net of tax	(1,553)	313
Total comprehensive income for the period, net of tax	123,649	116,869
Total comprehensive income for the period attributable to:
Owners of the parent	123,649	110,471
Non-controlling interests	-	6,398
123,649	116,869

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at June 30, 2017

As at 30 June 2017	As at 31 December 2016
Notes	RMB'000	RMB'000
(Unaudited)	(Audited)
NON-CURRENT ASSETS
Property, plant and equipment	9	3,146,285	3,209,989
Land use rights	10	450,878	467,157
Other intangible assets	435,309	451,579
Deferred tax assets	7,974	7,794
Goodwill	700,724	700,724
Available-for-sale investments	11	149,900	149,300
Prepayments	12	609,209	609,209
Finance lease receivables	1,831	1,179
Total non-current assets	5,502,110	5,596,931
CURRENT ASSETS
Inventories	13	2,274,270	2,175,151
Trade receivables	14	254,452	337,570
Finance lease receivables	5,527	3,148
Prepayments, deposits and other receivables	2,996,315	2,616,354
Cash in transit	36,196	31,550
Pledged bank deposits	1,809,794	2,207,144
Cash and cash equivalents	733,206	1,238,962
Total current assets	8,109,760	8,609,879
TOTAL ASSETS	13,611,870	14,206,810
NON-CURRENT LIABILITIES
Interest-bearing bank and other borrowings	15	-	896,775
Long-term payables	21	427,200	-
Deferred tax liabilities	146,126	151,386
Total non-current liabilities	573,326	1,048,161
CURRENT LIABILITIES
Trade and bills payables	16	2,577,764	3,036,578
Other payables and accruals	1,378,301	1,817,941
Amounts due to a related party	20	173,107	168,822
Interest-bearing bank and other borrowings	15	5,181,334	4,437,234
Income tax payable	215,255	281,981
Total current liabilities	9,525,761	9,742,556