O Net Technologies : Announcements and Notices - Interim Results for the Six Months Ended 30 June 2019

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O-NET TECHNOLOGIES (GROUP) LIMITED

昂 納 科 技（ 集 團 ）有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 877)

INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 JUNE 2019

RESULTS

The board (the ''Board'') of directors (the ''Directors'') of O-Net Technologies (Group) Limited (the ''Company'') is pleased to announce the unaudited condensed consolidated interim financial statements of the Company and its subsidiaries (collectively, the ''Group'') for the six months ended 30 June 2019 together with the comparative figures. The unaudited condensed consolidated interim financial statements have not been audited or reviewed by the Company's auditor, but have been reviewed by the Company's audit committee (the ''Audit Committee'').

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CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (All amounts in Hong Kong dollar thousands unless otherwise stated)

		(Unaudited)
		For the six months
		ended 30 June
		2019		2018
	Note(s)	HKD'000	HKD'000
Revenue	4	1,403,363		1,207,636
Cost of sales		(989,202)	(845,367)
Gross profit		414,161		362,269
Other gains - net		22,096		60,451
Selling and marketing costs		(45,239)	(45,301)
Research and development expenses		(154,750)	(131,318)
Administrative expenses		(113,004)	(104,718)
Operating profit		123,264		141,383
Finance expenses - net	8	(15,355)	(12,921)
Share of losses of investments accounted for
using equity method		(4,615)	(609)
Profit before income tax	7	103,294		127,853
Income tax expenses	9	(23,003)	(18,470)
Profit for the period		80,291		109,383
Profit attributable to:
Equity holders of the Company		83,114		111,854
Non-controlling interests		(2,823)	(2,471)
		80,291		109,383
Earnings per share for profit attributable to equity
holders of the Company (HKD per share)
- Basic	11	0.10		0.14
- Diluted	11	0.10		0.14

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CONDENSED CONSOLIDATED BALANCE SHEET

(All amounts in Hong Kong dollar thousands unless otherwise stated)

		As at		As at
		30 June		31 December
		2019	2018
		(Unaudited)		(Audited)
	Note(s)	HKD'000		HKD'000
ASSETS
Non-current assets
Land use right		-	23,120
Property, plant and equipment		1,061,945	957,831
Right-of-use assets		95,622		-
Intangible assets		244,547	90,423
Investments accounted for using equity method		26,504	31,119
Deferred income tax assets		-	698
Financial assets at fair value through
other comprehensive income		8,590	1,656
Derivative financial instruments		97	97
Other non-current receivables	5	-	126,832
Other non-current assets		30,768		157,154
		1,468,073	1,388,930
Current assets
Inventories		562,257	501,025
Contract assets		16,357	27,180
Trade and other receivables	5	958,705	865,885
Other current assets		547	4,186
Financial assets at fair value through profit or loss		17,408	24,891
Pledged bank deposits		6,239	65,672
Cash and cash equivalents		520,451		341,591
		2,081,964		1,830,430
Total assets		3,550,037	3,219,360

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		As at	As at
		30 June	31 December
		2019		2018
		(Unaudited)	(Audited)
	Note(s)	HKD'000	HKD'000
EQUITY
Capital and reserves attributable to
equity holders of the Company
Share capital		8,025		8,020
Share premium		1,107,726		1,105,589
Treasury shares		(60,847)	(60,847)
Other reserves		69,163		56,918
Retained earnings		1,207,732		1,139,778
		2,331,799		2,249,458
Non-controlling interests		(4,817)	(1,994)
Total equity		2,326,982		2,247,464
LIABILITIES
Non-current liabilities
Deferred tax liabilities		27,472		11,953
Leased liabilities		64,117		-
Deferred government grants		10,694		11,676
		102,283		23,629
Current liabilities
Trade and other payables	6	500,982		428,750
Contract liabilities		13,589		9,997
Leased liabilities		12,840		-
Current income tax liabilities		44,101		21,750
Borrowings		549,260		487,770
		1,120,772		948,267
Total liabilities		1,223,055		971,896
Total equity and liabilities		3,550,037		3,219,360

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(All amounts in Hong Kong dollar thousands unless otherwise stated)

	(Unaudited)
	For the six months
	ended 30 June
	2019		2018
	HKD'000	HKD'000
Profit for the period	80,291		109,383
Other comprehensive expense
Item that may be reclassified to profit or loss
Currency translation differences	(6,693)	(24,797)
Total comprehensive income for the period	73,598		84,586
Attributable to:
Equity holders of the Company	76,421		87,055
Non-controlling interests	(2,823)	(2,469)
Total comprehensive income for the period	73,598		84,586

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