Cosmo Lady China : Interim Results for the Six Months Ended 30 June 2017

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Cosmo Lady (China) Holdings Company Limited

都市麗人（中國）控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2298) INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 FINANCIAL HIGHLIGHTS Six months ended 30 June

Unaudited 2017	Unaudited 2016	Change
RMB'000	2,079,229	2,211,369	-6.0%
RMB'000	197,343	222,950	-11.5%
RMB'000	144,887	174,019	-16.7%
%	45.1%	47.7%
%	9.5%	10.1%

Revenue

Operating profit

Profit attributable to equity holders of the Company

Gross profit margin

Operating profit margin

Margin of profit attributable to

equity holders of the Company % 7.0% 7.9%

Earnings per share

- basic and diluted RMB cents 7.40 9.13

Interim dividend per share	HK cents	2.58	-
(RMB cents)	(2.20)	-

INTERIM FINANCIAL INFORMATION

The board of directors (the "Board") of Cosmo Lady (China) Holdings Company Limited (the "Company") is pleased to announce the unaudited consolidated interim financial information of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2017, together with the comparative figures for the corresponding period of 2016 and selected explanatory notes. The interim financial information has been reviewed by the Company's audit committee and the Company's auditor, PricewaterhouseCoopers, in accordance with the Hong Kong standard on Review Engagement 2410 "Review of Interim Financial Information performed by the independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Six months ended 30 June

Note	2017 Unaudited RMB'000		2016 Unaudited RMB'000
Revenue	4	2,079,229		2,211,369
Cost of sales	(1,142,034)		(1,157,341)
Gross profit	937,195		1,054,028
Selling and marketing expenses	(644,757)		(714,660)
General and administrative expenses	(120,620)		(141,330)
Other income	5	23,968		24,216
Other gains - net	1,557		696
Operating profit	197,343		222,950
Finance income	6,376		12,180
Finance expenses	(6,039)		-
Finance income - net	337		12,180
Share of loss of an associate	(515)		-
Profit before income tax	6	197,165		235,130
Income tax expense	7	(52,278)		(61,111)
Profit for the period	144,887		174,019
Other comprehensive income for the period (Item that may be reclassified subsequently to profit or loss) Exchange differences	(8,608)		761
Total comprehensive income for the period	136,279	174,780

Profit attributable to equity holders of the Company 144,887 174,019 Total comprehensive income attributable to equity holders of the Company 136,279 174,780 Earnings per share attributable to equity

holders of the Company during the period	8	RMB cents	RMB cents
- Basic and diluted	7.40	9.13

CONDENSED CONSOLIDATED BALANCE SHEET

Note

As at 30 June 2017

As at 31 December 2016

ASSETS Non-current assets Unaudited Audited

RMB'000 RMB'000

Property, plant and equipment 557,498 545,646

Land use rights 88,351 89,391

Intangible assets 44,032 39,449

Investment in a joint venture 1,990 1,990

Investment in an associate 3,485 -

Available-for-sale financial assets 19,169 18,600

Deposits, prepayments and other receivables 33,580 25,815

Deferred income tax assets 37,942 39,209

786,047 760,100 Current assets

Inventories 1,156,801 1,150,679

Trade receivables 10 423,378 451,230

Loan to a third party 11 - 105,000 Deposits, prepayments and other receivables 575,301 503,199

Term deposits 370,021 9,645

Cash and cash equivalents 1,012,002 799,533

3,537,503 3,019,286 Total assets 4,323,550 3,779,386 EQUITY Capital and reserves attributable to equity holders of the Company

Share capital	12	133,792	117,320
Share premium	12	1,651,164	1,254,574
Other reserves	250,729	260,929
Retained earnings	1,205,893	1,061,006
Total equity	3,241,578	2,693,829
LIABILITIES Current liabilities Trade payables	13	531,071	554,254
Accruals and other payables	283,124	305,614
Current income tax liabilities	39,275	24,088
Borrowings	14	8,920	-
862,390	883,956
Non-current liabilities Borrowings	14	218,070	200,000
Deferred income tax liabilities	1,512	1,601
219,582	201,601
Total liabilities	1,081,972	1,085,557
Total equity and liabilities	4,323,550	3,779,386

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Unaudited Attributable to equity holders of the Company

Share capital RMB'000	Share premium RMB'000	Other reserves RMB'000	Retained earnings RMB'000	Total equity RMB'000
As at 1 January 2017	117,320	1,254,574	260,929	1,061,006	2,693,829
Comprehensive income Profit for the period	-	-	-	144,887	144,887
Other comprehensive income Exchange differences	-	-	(8,608)	-	(8,608)
Total comprehensive income for the period	-	-	(8,608)	144,887	136,279
Transactions with equity holders Proceeds from shares issued (Note 12)	16,472	511,978	-	-	528,450
Dividends relating to 2016 paid in June 2017	-	(115,388)	-	-	(115,388)
Equity-settled share-based compensation	-	-	(1,592)	-	(1,592)
Total transactions with equity holders	16,472	396,590	(1,592)	-	411,470
As at 30 June 2017	133,792	1,651,164	250,729	1,205,893	3,241,578
As at 1 January 2016	117,320	1,431,994	244,196	845,352	2,638,862
Comprehensive income Profit for the period	-	-	-	174,019	174,019
Other comprehensive income Exchange differences	-	-	761	-	761
Total comprehensive income for the period	-	-	761	174,019	174,780
Transactions with equity holders Dividends relating to 2015 paid in June 2016	-	(177,420)	-	-	(177,420)
Appropriation to statutory reserves	-	-	47,731	(47,731)	-
Equity-settled share-based compensation	-	-	2,423	-	2,423
Total transactions with equity holders	-	(177,420)	50,154	(47,731)	(174,997)
As at 30 June 2016	117,320	1,254,574	295,111	971,640	2,638,645