Sfk Construction : Announcements and Notices - Announcement of Interim Consolidated Results for the Six Months Ended 30 June 2017

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.

SFK Construction Holdings Limited

新 福 港 建 設 集 團 有 限 公 司

(Incorporated in Bermuda with limited liability)

(Stock Code: 1447) ANNOUNCEMENT OF INTERIM CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 HIGHLIGHTS

• Our overall revenue for the six months ended 30 June 2017 increased to HK$1,592.67 million as compared with that of HK$1,427.18 million for the corresponding period last year, representing an increase of approximately 11.60%.

• Our overall gross profit increased by approximately HK$17.74 million, or approximately 21.39%, from HK$82.93 million for the six months ended 30 June 2016 to HK$100.67 million for the six months ended 30 June 2017.

• Profit attributable to the equity shareholders of the Company increased by approximately HK$16.37 million, or approximately 41.75%, from HK$39.21 million for the six months ended 30 June 2016 to HK$55.58 million for the six months ended 30 June 2017.

• During the six months ended 30 June 2017, 9 new projects were awarded to us as a main contractor in Hong Kong (out of which 4 projects were from the public sector and 5 projects were from the statutory institutions), with a total original contract sum of approximately HK$2,352 million.

• As at 30 June 2017, we had a total of 18 projects for general building works and 6 projects for civil engineering works on hand and the total original contract sum amounted to approximately HK$18,169 million (31 December 2016: HK$17,063 million). The outstanding value of our ongoing projects as at 30 June 2017 was approximately HK$11,099 million (31 December 2016: HK$10,525 million).

• The directors of the Company resolved to declare an interim dividend of HK12.5 cents per share, amounting to approximately HK$50 million (2016: HK9 cents per share totalling HK$36 million).

INTERIM CONSOLIDATED RESULTS

The board (the "Board") of directors (the "Directors") of SFK Construction Holdings Limited (the "Company") is pleased to present the unaudited interim consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30 June 2017 (the "Period"), together with the comparative figures for the corresponding period in 2016 as follow:

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 June 2017 - unaudited (Expressed in Hong Kong dollars)

Six months ended 30 June
2017	2016
Notes	$'000	$'000
Revenue	3	1,592,668	1,427,177
Direct costs	(1,491,994)	(1,344,248)
Gross profit	100,674	82,929
Other revenue	189	207
Other net income	385	296
Administrative expenses	(33,713)	(34,170)
Profit from operations	67,535	49,262
Finance costs	(1,916)	(1,209)
Share of profits less losses of joint ventures	954	(216)
Profit before taxation	4	66,573	47,837
Income tax	5	(10,846)	(8,216)
Profit for the period	55,727	39,621
Attributable to:
Equity shareholders of the Company	55,577	39,207
Non-controlling interests	150	414
Profit for the period	55,727	39,621
Earnings per share - Basic/Diluted	6	13.89 cents	9.80 cents

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2017 - unaudited (Expressed in Hong Kong dollars)

Six months ended 30 June
2017	2016
$'000	$'000
Profit for the period	55,727	39,621
Other comprehensive income for the period (after tax)
Items that may be reclassified subsequently to profit or loss or have been reclassified:
Exchange differences on translation of financial statements of overseas subsidiary	161	-
Total comprehensive income for the period	55,888	39,621
Attributable to:
Equity shareholders of the Company	55,738	39,207
Non-controlling interests	150	414
Total comprehensive income for the period	55,888	39,621

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the six months ended 30 June 2017 - unaudited (Expressed in Hong Kong dollars)

30 June 2017	31 December 2016
Notes	$'000	$'000
Non-current assets
Plant and equipment	7	30,148	27,149
Interest in joint ventures	3,027	2,067
Deferred tax assets	1,553	1,217
34,728	30,433
Current assets
Gross amount due from customers for contract work	8	651,569	570,330
Trade and other receivables	9	541,103	524,689
Current tax recoverable	3,051	2,742
Pledged deposits	19,985	19,941
Cash and cash equivalents	10	133,465	215,828
1,349,173	1,333,530
Current liabilities
Gross amount due to customers for contract work	8	55,199	124,458
Trade and other payables	11	547,807	674,780
Amount due to a joint venture	232	1,032
Bank overdraft	10	1,115	-
Bank loans	319,758	100,732
Current tax payable	18,490	8,060
942,601	909,062
Net current assets	406,572	424,468
Total assets less current liabilities	441,300	454,901
Non-current liability
Deferred tax liabilities	3,676	3,165
NET ASSETS	437,624	451,736