Yin He : FIRST QUARTERLY RESULTS FOR THE THREE MONTHS ENDED 30 JUNE 2017

(incorporated in the Cayman Islands with limited liability)

(Stock code: 8260)

FIRST QUARTERLY RESULTS FOR THE THREE MONTHS ENDED 30 JUNE 2017 CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes 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.

This announcement, for which the directors of Yin He Holdings Limited collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The directors, having made all reasonable enquires, confirm that, to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

SUMMARY

•

Revenue for the three months ended 30 June 2017 amounted to HK$69,039,000

(2016: HK$69,057,000), representing remained stable as compared with corresponding period of the previous year.

•

Profit attributable to owners of the Company for the three months ended 30

June 2017 amounted to HK$10,027,000 while profits attributable to owners of the Company for the three months ended 30 June 2016 amounted to HK$8,691,000.

•

Basic earnings per share for the three months ended 30 June 2017 amounted to

approximately HK$0.685 cents while basic earnings per share for the three months ended 30 June 2016 amounted to approximately HK$0.743 cent.

FIRST QUARTERLY RESULTS

The board of Directors (the "Board") is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (collectively the "Group") for the three months ended 30 June 2017 together with the comparative unaudited figures for the corresponding period in 2016 as follows:

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the three months ended 30 June 2017

(Unaudited) For the three months ended

Notes	30 June 2017 HK$'000	30 June 2016 HK$'000
Revenue	3	69,039	69,057
Direct costs	(39,452)	(51,455)
Gross profit	29,587	17,602
Other income	3	81	2,364
General and administrative expenses	(16,443)	(9,821)
Operating profit	13,225	10,145
Finance costs	4	-	(3)
Profit before income tax	13,225	10,142
Income tax expense	5	(3,198)	(1,451)
Profit for the period	10,027	8,691
Profit for the period attributable to Owners of the Company	10,005	8,672
Non-controlling interest	22	19
10,027	8,691
Total comprehensive income for the period attributable to Owners of the Company	10,005	8,672
Non-controlling interest	22	19
10,027	8,691
Earnings per share for profit attributable to owners of the Company - Basic (HK cent)	6	0.685	0.743
- Diluted (HK cent)	6	0.655	0.702

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the three months ended 30 June 2017

Share	Share	Convertible Preference	Merger	Investment revaluation	Statutory	Translation	Retained	Non- controlling	Total
Capital	Premium	Shares	Reserve	Reserve	Reserve	Reserve	Earnings	Total	interest	equity
HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
As at 31 March 2016 Total comprehensive Income	11,521	718,316	100,575	(213)	-	5,030	(3,379)	41,934	873,784	4,726	878,510

for the period	- - - - - - - 8,672 8,672	19 8,691
Issue of share upon placing	550 35,266 - - - - - - 35,816	- 35,816

At 30 June 2016 (Unaudited) 12,071 753,582 100,575 (213) - 5,030 (3,379) 50,606 918,272 4,745 923,017

As at 31 March 2017	14,616	997,994	99,085	(213)	7,171	10,936	(16,229)	73,033	1,186,393	4,514	1,190,907
Comprehensive income	-	-	-	-	-	-	-	10,005	10,005	22	10,027
Acquisition of subsidiary	-	-	-	-	-	-	-	-	-	-	-
Conversion of CPS	-	-	-	-	-	-	-	-	-	-	-
Placing of shares	-	-	-	-	-	-	-	-	-	-	-

At 30 June 2017 (Unaudited) 14,616 997,994 99,085 (213) 7,171 10,936 (16,229) 83,038 1,196,398 4,536 1,200,934