Synertone Communication : 20171129 Announcements and Notices – Interim Results Announcement for The Six Months Ended 30 September 2017

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協 同 通 信 集 團 有 限 公 司

Synertone Communication Corporation

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1613)

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2017

The board (the "Board") of directors (the "Directors") of Synertone Communication Corporation (the "Company", together with its subsidiaries, the "Group") announces the unaudited condensed consolidated interim results of the Group for the six months ended 30 September 2017 together with the comparative unaudited figures for the corresponding period in 2016. These interim financial results have not been audited, but have been reviewed by the Company's audit committee.

For the six months ended 30 September 2017	For the six months ended
30 September
Note	2017 2016 HK$'000 HK$'000
(Unaudited) (Unaudited)
Revenue	4	40,772 50,102
Cost of sales	(49,185) (48,323)
Gross (loss)/profit	(8,413) 1,779
Other income	5	6,674 21,434
Other gains and losses	5	1,422 -
Fair value change on derivative financial
instruments	- (34,697)
Selling and distribution expenses	(8,150) (7,602)
Administrative expenses	(37,252) (46,655)
Research and development expenditure	(13,518) (15,597)
Impairment loss of trade receivables	(12,502) -
Impairment loss of goodwill	(1,805) -
Loss from operations	(73,544) (81,338)
Finance costs	6(a)	(14,190) (13,714)
Share of results of an associate	(985) 240
Loss before taxation	6	(88,719) (94,812)
Income tax credit	7	1,856 7,591
Loss for the period	(86,863) (87,221)
Attributable to:
Owners of the Company	(84,403) (81,795)
Non-controlling interests	(2,460) (5,426)
(86,863) (87,221)
HK cents HK cents
Loss per share	9
- Basic	(2.52) (2.60)
- Diluted	(2.52) (2.60)

AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 September 2017

For the six months ended 30 September

2017 2016

HK$'000 HK$'000

(Unaudited) (Unaudited)

Loss for the period (86,863) (87,221)

Other comprehensive income (loss) for the period

Items that may be reclassified subsequently to profit or loss:

Exchange differences on translation of financial statements

of overseas and PRC subsidiaries 20,991 (15,484)

Total comprehensive loss for the period (65,872) (102,705)

Attributable to:

Owners of the Company	(64,149)	(93,629)
Non-controlling interests	(1,723)	(9,076)

(65,872) (102,705)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2017

As at 30 September 2017	As at 31 March 2017
Note	HK$'000	HK$'000
(Unaudited)	(Audited)
Non-current assets
Property, plant and equipment	10	102,372	98,703
Prepaid lease payments	8,681	8,405
Intangible assets	11	291,525	314,359
Goodwill	191,853	185,340
Interest in an associate	1,644	2,538
Available-for-sale investments	3,900	3,900
Prepayments for acquisition of property,

plant and equipment 128,103 8,062

608,078 621,307

Current assets Inventories	40,668	35,867
Trade and other receivables	12	255,725	282,359
Prepaid lease payments	203	194
Tax recoverable	94	90
Cash and cash equivalents	7,109	17,991
303,799	336,501
Current liabilities Trade and other payables	13	86,558	75,122
Bank and other borrowings	158,841	165,240
Finance lease payables	187,735	131,884
Amount due to a director	1	1
Current taxation	7,062	9,202
440,197	381,449
Net current liabilities	(136,398)	(44,948)
Total assets less current liabilities	471,680	576,359