HK Bourse: Results Announcement From Differ Group Holding Co. Ltd.


 
    For full details, please click on the following link: 
http://www.hkexnews.hk/listedco/listconews/sehk/2016/0810/LTN20160810261.pdf 
 
 
 
 
               INTERIM RESULTS ANNOUNCEMENT 
             FOR THE SIX MONTHS ENDED 30 JUNE 2016 
 
 FINANCIAL HIGHLIGHTS 
     Turnover of the Group for the six months ended 30 June 2016 was 
      approximately RMB132,880,000 (2015: RMB92,711,000), representing an 
      increase of approximately 43.3% as compared with the corresponding period in 
      2015. 
 
     Profit of the Group for the six months ended 30 June 2016 was approximately 
      RMB75,263,000 (2015: RMB59,256,000), representing an increase of 
      approximately 27.0% as compared with the corresponding period in 2015. 
 
     Profit attributable to owners of the Company for the six months ended 30 June 
      2016 was approximately RMB71,155,000 (2015: RMB59,256,000), representing 
      an increase of approximately 20.1% as compared with the corresponding period 
      in 2015. 
 
     Earnings per share of the Company for the six months ended 30 June 2016 was 
      approximately RMB1.68 cents (2015: RMB1.48 cents - restated). 
 
     The Directors do not recommend the payment of an interim dividend for the six 
      months ended 30 June 2016. 
 
UNAUDITED INTERIM RESULTS 
The board of Directors (the "Board") of the Company is pleased to announce the 
unaudited condensed consolidated results of the Company and its subsidiaries 
(collectively the "Group") for the six months ended 30 June 2016, together with the 
unaudited comparative figures for the corresponding period in 2015. 
 
 
 
 
                                               1 
 
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE 
INCOME 
For the six months ended 30 June 2016 
 
                                                       Six months ended 
                                                            30 June 
                                                          2016          2015 
                                                   (Unaudited)    (Unaudited) 
                                                     RMB'000 
                                             Notes                  RMB'000 
 
                                                        98,447 
Income from financial related services        3                        77,711 
 
                                                        34,433 
Income from assets management services        3                        15,000 
 
                                                         2,414 
Other income                                  3                         2,023 
 
                                                         4,704 
Gain on disposal of subsidiaries              5                             - 
 
                                                         (9,294) 
Employee benefit expenses                                              (5,225) 
 
                                                         (1,380) 
Depreciation and amortisation expenses                                 (1,418) 
 
                                                         (1,106) 
Operating lease expenses                                                 (655) 
 
                                                         (3,141) 
Equity-settled share-based payments                                         - 
 
                                                        (11,496) 
Other expenses                                                         (7,282) 
 
Change in fair value of the embedded 
                                                         2,513 
  derivative of the convertible bonds         15                            - 
 
                                                        (14,739) 
Financial costs                               6                             - 
 
Profit before income tax                               101,355 
                                              7                        80,154 
 
                                                        (26,092) 
Income tax expense                            8                       (20,898) 
 
Profit for the period                                   75,263         59,256 
 
 
 
 
                                         2 
 
 
 
 
 
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                                                            Six months ended 
                                                                 30 June 
                                                               2016          2015 
                                                        (Unaudited)    (Unaudited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
 
Other comprehensive income, net of tax 
  Items that may be reclassified to profit 
     or loss in subsequent periods 
  - Exchange differences on translating 
                                                              (3,641) 
     foreign operation                                                            (50) 
  - Fair value gain on available-for-sale 
                                                             22,262 
     financial assets                                                          4,342 
  - Release to profit or loss upon disposal of 
                                                              (9,700) 
     available-for-sale financial assets                                            - 
 
                                                             84,184 
Total comprehensive income for the period                                     63,548 
 
Profit for the period attributable to: 
                                                             71,155 
  Owners of the Company                                                       59,256 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             75,263           59,256 
 
Total comprehensive income for the period attributable to: 
                                                             80,076 
  Owners of the Company                                                       63,548 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             84,184           63,548 
 
Earnings per share 
                                                                1.68 
  - Basic (RMB cents)                               10                  1.48(restated) 
                                                                1.68 
  - Diluted (RMB cents)                                                 1.48(restated) 
 
 
 
 
                                            3 
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 30 June 2016 
                                                              As at          As at 
                                                           30 June    31 December 
                                                              2016           2015 
                                                        (Unaudited)      (Audited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
ASSETS AND LIABILITIES 
Non-current assets 
                                                             11,352 
Property, plant and equipment                      11                      14,406 
                                                              6,715 
Prepaid land lease                                                          6,919 
                                                              1,950 
Restricted bank deposits                                                    2,930 
                                                            335,001 
Finance lease, loan and account receivables        12                     380,591 
                                                             33,400 
Goodwill                                                                   33,400 
                                                            388,418       438,246 
Current assets 
                                                            130,312 
Available-for-sales financial assets               13                      81,500 
                                                            938,093 
Finance lease, loan and account receivables        12                     790,096 
                                                            214,439 
Prepayments, deposits and other receivables        14                      83,155 
                                                             89,361 
Restricted bank deposits                                                   94,178 
                                                             47,265 
Cash and bank balances                                                     89,510 
                                                          1,419,470      1,138,439 
Current liabilities 
Accruals, other payables, deposits received 
                                                             89,708 
  and deferred income                                                     106,122 
                                                             22,280 
Provision for taxation                                                     18,812 
                                                            110,767 
Bank borrowings                                                           124,837 
                                                             18,060 
Derivative financial instruments                   15                           - 
                                                            240,815       249,771 
Net current assets                                        1,178,655       888,668 
Total assets less current liabilities                     1,567,073      1,326,914 
Non-current liabilities 
                                                             67,519 
Deposits received and deferred income                                      93,684 
                                                            160,273 
Bank borrowings                                                           218,591 
                                                             73,270 
Corporate bonds                                                            16,800 
                                                            180,847 
Convertible bonds                                  15                           - 
                                                            481,909       329,075 
Net assets                                                1,085,164       997,839 
EQUITY 
                                                              8,292 
Share capital                                      16                       8,292 
                                                            976,720 
Reserves                                                                  893,503 
Equity attributable to owners of the Company                985,012       901,795 
Non-controlling interests                                   100,152        96,044 
Total equity                                              1,085,164       997,839 
 
 
                                              4 
 
 
 
 
 
 

 
 
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
For the six months ended 30 June 2016 
 
                                                                        Attributable to owners of the Company 
                                                                                                        Financial 
                                                                    Merger       Share                     assets                                            Non- 
                                   Share       Share    Capital   and other      option     Statutory revaluation Translation     Retained             controlling 
                                  capital   premium     reserve     reserve     reserve       reserve     reserve     reserve       profits      Total interests       Total 
                                RMB'000     RMB'000    RMB'000    RMB'000      RMB'000      RMB'000 RMB'000 RMB'000               RMB'000      RMB'000 RMB'000       RMB'000 
 
For the six months ended 
  30 June 2016 (Unaudited) 
 
                                   8,292     356,029    277,562      (8,345)           -       27,774           9,700   (2,639)    233,422      901,795     96,044    997,839 
At 1 January 2016 
                                       -           -          -           -            -            -               -        -      71,155       71,155      4,108     75,263 
Profit for the period 
Other comprehensive income 
                                       -           -          -           -            -            -       12,562      (3,641)           -       8,921          -      8,921 
  for the period 
 
Total comprehensive income 
                                       -           -          -           -            -            -       12,562      (3,641)     71,155       80,076      4,108     84,184 
  for the period 
 
Equity-settled share 
                                       -           -          -           -        3,141            -              -         -            -       3,141          -      3,141 
  based transactions 
                                       -           -          -           -            -        7,413              -         -       (7,413)          -          -          - 
Transfer to statutory reserve 
 
                                   8,292     356,029    277,562      (8,345)       3,141       35,187       22,262      (6,280)    297,164      985,012    100,152   1,085,164 
At 30 June 2016 
 
 
 
 
                                                                                   5 
 
                                                                                         Financial 
                                                                                             assets 
                                   Share       Share    Capital    Merger    Statutory revaluation Translation     Retained 
                                  capital   premium     reserve    reserve     reserve     reserve     reserve       profits      Total 
                                RMB'000     RMB'000    RMB'000    RMB'000    RMB'000 RMB'000 RMB'000              RMB'000      RMB'000 
 
For the six months ended 
  30 June 2015 (Unaudited) 
 
At 1 January 2015                  7,800     137,515    277,562          7     15,026           -         256      142,382      580,548 
 
Profit for the period                  -          -          -          -          -            -            -      59,256       59,256 
Other comprehensive income 
  for the period                       -          -          -          -          -        4,342          (50)           -       4,292 
 
Total comprehensive income 
  for the period                       -           -          -          -         -        4,342          (50)     59,256       63,548 
 
Transfer to statutory reserve          -           -          -          -      5,473           -            -       (5,473)          - 
 
At 30 June 2015                    7,800     137,515    277,562          7     20,499       4,342         206      196,165      644,096 
 
 
 
 
                                                                    6 
 
 
 
 
 
 

 
 
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
 
                                                           Six months ended 
                                                                30 June 
                                                              2016          2015 
                                                       (Unaudited)    (Unaudited) 
                                                         RMB'000        RMB'000 
 
Net cash (used in)/generated from 
                                                          (207,999) 
  operating activities                                                     61,183 
 
                                                            (3,226) 
Net cash used in investing activities                                       (441) 
 
                                                           170,770 
Net cash generated from financing activities                                    - 
 
Net (decrease)/increase in cash and cash equivalents       (40,455)        60,742 
 
Cash and cash equivalents at the beginning 
                                                            89,510 
  of the period                                                          164,579 
 
                                                            (1,790) 
Effect of foreign exchange rate changes, net                                  (50) 
 
Cash and cash equivalents at the end of the period          47,265       225,271 
 
 
 
 
                                             7 
 
NOTES 
 
1.   CORPORATE AND GENERAL INFORMATION 
     The Company was incorporated as an exempted company with limited liability in the Cayman 
     Islands on 4 December 2012. The Company's shares have been listed on the Growth Enterprise 
     Market ("GEM") of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") since 9 
     December 2013 and transferred listing to main board of the Stock Exchange on 6 July 2015. 
 
     The registered office of the Company is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand 
     Cayman KY1-1111, Cayman Islands. The principal place of business of the Company and its 
     subsidiaries (collectively the "Group") is located at 23rd Floor, Tower 11, 166 Tapu East Road, 
     Xiamen, the People's Republic of China (the "PRC"). 
 
     The principal activity of the Company is investment holding. The principal activities of the 
     Company's subsidiaries are provision of guarantee services, express loan services, financial 
     services, finance lease services and assets management services. 
 
2.   BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES 
     The unaudited condensed consolidated financial statements of the Group for the six months ended 
     30 June 2016 have been prepared in accordance with all applicable Hong Kong Financial 
     Reporting Standards, Hong Kong Accounting Standards and Interpretations (hereinafter 
     collectively referred to as the "HKFRSs") issued by the Hong Kong Institutes of Certified Public 
     Accountants ("HKICPA") and include applicable disclosures required by the Rules Governing the 
     Listing of Securities of the Stock Exchange (the "Listing Rules"). 
 
     The unaudited interim condensed consolidated financial statement do not include all the 
     information and disclosure required in the Group's annual financial statements and should be read 
     in conjunction with the Group's annual financial statements for the year ended 31 December 2015. 
 
     The functional currency of the Company is Hong Kong Dollar ("HK$"). The unaudited condensed 
     consolidated financial statements are presented in Renminbi ("RMB") since most of the companies 
     comprising the Group are operating in RMB environment and the functional currency of most of 
     the companies comprising the Group is RMB. 
 
     The accounting policies used in the preparation of the unaudited condensed consolidated financial 
     statements are consistent with those used in the preparation of the Group's annual financial 
     statements for the year ended 31 December 2015 except for the adoption of the standards, 
     amendments and interpretations issued by the HKICPA mandatory for the annual periods beginning 
     on 1 January 2016. The effect of the adoption of these standards, amendments and interpretations 
     was not material of the Group's results of operations and financial position. 
 
 
 
 
                                                 8 
 
 
 
 
 
 

 
 
3.   REVENUE AND OTHER INCOME 
     Revenue represents income from the Group's principal activities, net of value-added tax. 
 
                                                                              Six months ended 
                                                                                   30 June 
                                                                                2016           2015 
                                                                          (Unaudited)    (Unaudited) 
                                                                            RMB'000        RMB'000 
 
     Revenue: 
     Income from financial related services 
     Interest income from express loan service: 
                                                                                 7,669 
       - Pawn loan                                                                                8,245 
                                                                                40,068 
       - Entrusted loan                                                                          20,090 
                                                                                 6,399 
       - Money lending                                                                                - 
                                                                                15,512 
     Income from financial service                                                               32,825 
                                                                                 6,007 
     Income from guarantee services                                                               8,808 
                                                                                22,792 
     Income from finance lease services                                                           7,743 
 
                                                                                98,447           77,711 
 
     Income from assets management services                                     34,433           15,000 
 
                                                                               132,880           92,711 
 
 
     Other income: 
                                                                                   602 
       Bank interest income                                                                       1,265 
                                                                                 1,771 
       Government grant                                                                             707 
                                                                                    41 
       Others                                                                                        51 
 
                                                                                 2,414            2,023 
 
 
4.   SEGMENT INFORMATION 
     An operating segment is a component of the Group that is engaged in business activities from 
     which the Group may earn revenue and incur expenses, and is identified on the basis of the internal 
     management reporting information that is provided to and regularly reviewed by the Group's 
     executive directors in order to allocate resources and assess performance of the segment. Executive 
     directors have determined that the Group has only one single business component/reportable 
     segment as the Group is only engaged in provision of financial services which includes the 
     provision of entrusted loan, financial consultancy, guarantee, pawn loan, finance lease services, 
     money lending and assets management. The executive directors allocate resources and assess 
     performance on an aggregated basis. The Group's revenue from external customers is divided into 
     certain groups of products which is disclosed in note 3. 
 
     The Company is an investment holding company and the principal place of the Group's operation 
     is in the PRC and Hong Kong. For the purpose of segment information disclosures under HKFRS 
     8, the Group regarded the PRC as its country of domicile. 
 
 
 
                                                  9 
 
     The geographical location of customers is based on the location at which the services were 
     provided. The total revenue from external customers is mainly sourced from the PRC (including 
     Hong Kong). The total revenue is disclosed in note 3. The Group's non-current assets other than 
     financial instruments are principally located in the PRC (including Hong Kong). 
 
     The Group's customer base is diversified and includes only the following customers with whom 
     transactions have exceeded 10% of the Group's revenue: 
 
                                                                               Six months ended 
                                                                                    30 June 
                                                                                 2016           2015 
                                                                           (Unaudited)    (Unaudited) 
                                                                             RMB'000        RMB'000 
 
                                                                                      - 
     Customer A                                                                                15,000 
 
 
5.   GAIN ON DISPOSAL OF SUBSIDIARIES 
     On 24 June 2016, the Group entered into a sale and purchase agreement with an independent third 
     party to dispose of 100% equity share of DiPro Company Limited and its subsidiaries, namely 
     Differ Financial Development HK Limited, Xiamen City Wending Investment Consulting 
     Company Limited and Fujian Differ Pawn Company Limited (controlled through the structured 
     agreements) (collectively the "Disposal Group") at the consideration of RMB65,000,000. The 
     Disposal Group is principally engaged in pawn loan business in PRC. For details, please refer to 
     the announcements dated 24 June 2016. 
 
     The nest assets of the Disposal Group at the date of disposal were as follows: 
 
                                                                                          (Unaudited) 
                                                                                            RMB'000 
 
     Net assets disposed of: 
     Property, plant and equipment                                                              2,360 
     Loan and account receivables                                                              56,449 
     Cash and bank balances                                                                     2,744 
     Prepayments and other receivables                                                            144 
     Accruals and other payables                                                                 (522) 
     Provision for taxation                                                                      (879) 
 
                                                                                               60,296 
     Gain on disposal of subsidiaries                                                           4,704 
 
     Total consideration-satisfied by cash                                                     65,000 
 
     Net cash outflow arising on disposal: 
     Cash consideration (note)                                                                      - 
     Cash and bank balances disposed of                                                        (2,744) 
 
                                                                                               (2,744) 
 
 
     Note: The cash consideration of RMB65,000,000 shall be payable by the purchaser to the 
           Company within 2 months upon completion of disposal of the Disposal Group. 
 
 
                                                  10 
 
 
 
 
 
 

 
 
6.   FINANCE COSTS 
                                                                            Six months ended 
                                                                                 30 June 
                                                                              2016           2015 
                                                                        (Unaudited)    (Unaudited) 
                                                                          RMB'000        RMB'000 
 
                                                                              8,197 
     Interest on bank borrowings                                                                  - 
                                                                              2,126 
     Interest on corporate bonds                                                                  - 
     Interest on convertible bonds 
                                                                              4,416 
       (including imputed interest) (note 15)                                                     - 
 
 
                                                                             14,739               - 
 
 
7.   PROFIT BEFORE INCOME TAX 
     Profit before income tax is arrived at after charging: 
 
                                                                            Six months ended 
                                                                                 30 June 
                                                                              2016           2015 
                                                                        (Unaudited)    (Unaudited) 
                                                                          RMB'000        RMB'000 
 
                                                                              1,176 
     Depreciation of property, plant and equipment                                            1,214 
                                                                                204 
     Amortisation of prepaid land lease                                                         204 
     Employee benefit expenses (including Directors' remuneration) 
                                                                              8,223 
     Salaries                                                                                 4,398 
                                                                                404 
     Pension scheme contributions - Defined contribution plans                                  215 
                                                                                667 
     Other benefits                                                                             612 
                                                                              9,294           5,225 
                                                                              1,349 
     Impairment loss on finance lease, loan and account receivables                               - 
                                                                              1,106 
     Operating lease charges in respect of properties                                           655 
 
 
8.   INCOME TAX EXPENSE 
                                                                            Six months ended 
                                                                                 30 June 
                                                                              2016           2015 
                                                                        (Unaudited)    (Unaudited) 
                                                                          RMB'000        RMB'000 
 
                                                                             26,092 
     Current tax - PRC                                                                       20,898 
 
 
     The Group is subject to income tax on an entity basis on profits arising in or derived from the 
     jurisdictions in which members of the Group are domiciled and operated. 
 
 
 
 
                                                   11 
 
      Enterprise income tax arising from subsidiaries operated in the PRC for the six months ended 30 
      June 2016 as calculated at 25% (2015: 25%) of the estimated assessable profits during the period. 
 
      No provision for Hong Kong profits tax has been made as the Group had no assessable profits 
      arising in Hong Kong during the six months ended 30 June 2016(2015: Nil). 
 
9.    DIVIDENDS 
      The Board does not recommend the payment of an interim dividend for the six months ended 30 
      June 2016 (2015: Nil). 
 
10.   EARNINGS PER SHARE 
      The calculations of basic earnings per share for the six months ended 30 June 2016 is based on the 
      profit attributable to owners of the Company of approximately RMB71,155,000 (2015: 
      RMB59,256,000) and on the 4,236,009,880 (2015:4,000,000,000, restated) ordinary shares issued 
      throughout the six months ended 30 June 2016. 
 
      Diluted earnings per share for the six months ended 30 June 2016 is the same as the basic earnings 
      per share because the impact of the potential dilutive ordinary shares outstanding is anti-dilutive 
      (2015: no potential ordinary shares in issue). 
 
11.   PROPERTY, PLANT AND EQUIPMENT 
      During the six months ended 30 June 2016, the Group spent approximately RMB482,000 (2015: 
      RMB441,000) on acquisition of furniture, fixture and office equipment. 
 
12.   FINANCE LEASE, LOAN AND ACCOUNT RECEIVABLES 
                                                                                 As at            As at 
                                                                              30 June      31 December 
                                                                                 2016             2015 
                                                                           (Unaudited)        (Audited) 
                                                                             RMB'000          RMB'000 
 
      Non-current assets 
                                                                                305,251 
      Finance lease receivables                                                                  348,671 
                                                                                 29,750 
      Loan receivables                                                                            31,920 
 
 
                                                                                335,001          380,591 
 
 
      Current assets 
                                                                                      - 
      Pawn loan receivables                                                                       48,100 
                                                                                473,000 
      Entrusted loan receivables                                                                 371,800 
                                                                                224,973 
      Finance lease receivables                                                                  246,766 
                                                                                178,021 
      Loan receivables                                                                            84,200 
                                                                                 43,238 
      Receivables from guarantee customers                                                        32,009 
                                                                                 18,861 
      Account receivables                                                                          7,221 
 
 
                                                                                938,093          790,096 
 
 
 
 
                                                  12 
 
 
 
 
 
 

 
 
For finance lease receivables, the customers are obliged to settle the amounts according to the 
terms set out in the relevant contracts, and must acquire the leased assets at the end of the lease 
period. The maturity date for each loan contract is normally not more than 5 years. 
 
For pawn loan receivables, the customers are obliged to settle the amounts according to the terms 
set out in the relevant contracts, with options to renew the loan granted for a period of up to 180 
days. The maturity date for each loan contract is not more than 180 days. 
 
For entrusted loan receivables, they represented loans from the Group to customers through banks 
in the PRC. In an entrusted loan arrangement, the bank entered into loan agreements with the 
customers. The customers repaid the loan to the bank and then the bank returned the principal and 
accrued interest to the Group. While the bank exercises supervision over and receives repayment 
from the borrower, the bank does not assume any risk of default in repayment by the borrower. 
The maturity date for each loan contract is normally not more than 360 days. 
 
For loan receivables, the customers are obliged to settle the amounts according to the terms set out 
in the relevant contracts. The maturity date for each loan contract is normally not more than 2 
years. 
 
For account receivables, it represented interest receivables from pawn loans, entrusted loans, 
finance lease and loan receivables and financial consultancy fee receivable. The customers are 
obliged to settle the amounts according to the terms set out in relevant contracts and, normally, no 
credit period was granted to customers. 
 
For receivables from guarantee customers, it represented the repayment paid to the banks on behalf 
of the guarantee customers. The guarantee customers are obliged to settle the amounts according to 
the term set out in relevant contracts and no credit period was granted to customers. 
 
Based on the loan commencement date set out in the relevant contracts, ageing analysis of the 
Group's finance lease, loan and account receivables, net of impairment loss, as of each reporting 
date is as follows: 
 
                                                                            As at            As at 
                                                                         30 June      31 December 
                                                                            2016             2015 
                                                                      (Unaudited)        (Audited) 
                                                                        RMB'000          RMB'000 
 
                                                                           243,040 
0 to 30 days                                                                                358,542 
                                                                           193,852 
31 to 90 days                                                                               169,951 
                                                                           153,570 
91 to 180 days                                                                               50,731 
                                                                           682,632 
Over 180 days                                                                               591,463 
 
                                                                         1,273,094        1,170,687 
 
 
 
 
                                             13 
 
13.   AVAILABLE-FOR-SALES FINANCIAL ASSETS 
                                                                               As at            As at 
                                                                            30 June      31 December 
                                                                               2016             2015 
                                                                         (Unaudited)        (Audited) 
                                                                           RMB'000          RMB'000 
 
                                                                              130,312 
      Distressed assets                                                                        81,500 
 
 
      The available-for-sale financial assets are denominated in RMB and there is no public market for 
      investments. 
 
14.   PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES 
                                                                               As at            As at 
                                                                            30 June      31 December 
                                                                               2016             2015 
                                                                         (Unaudited)        (Audited) 
                                                                           RMB'000          RMB'000 
 
                                                                              122,000 
      Amounts paid for distressed assets                                                       62,000 
                                                                               65,000 
      Receivables from disposal of subsidiaries (note 5)                                            - 
                                                                               27,439 
      Prepaid expenses and other receivables                                                   21,155 
 
                                                                              214,439          83,155 
 
 
15.   CONVERTIBLE BONDS 
      The carrying values of the liability component and derivative component of the convertible bonds 
      are as follows: 
 
      Liability component-classified as non-current liabilities 
                                                                                          (Unaudited) 
                                                                                            RMB'000 
 
      Net carry amount at 1 January 2016                                                            - 
      Issue of Convertible Bonds                                                              178,327 
      Interest expenses                                                                         4,416 
      Interest on Convertible Bonds paid                                                       (1,896) 
 
      Net carry amount at 30 June 2016                                                        180,847 
 
 
      Derivative component - classified as current liabilities 
                                                                                          (Unaudited) 
                                                                                            RMB'000 
 
      Net carry amount at 1 January 2016                                                            - 
      Issue of Convertible Bonds                                                               20,573 
      Change in fair value of derivative financial instruments                                 (2,513) 
 
      Net carry amount at 30 June 2016                                                         18,060 
 
 
 
                                                   14 
 
 
 
 
 
 

 
 
Pursuant to the announcement of the Company dated 6 May 2016 and 18 May 2016, the Company 
issued the convertible bonds (the "Convertible Bonds") in an aggregate principal amount of 
US$30,000,000 at 6% coupon rate per annum (plus 2% administrative fee per annum) with 
maturity on 17 November 2017 (subject to an extension of a further eighteen months if agreed by 
the Company and the relevant bondholders) ("Maturity Date"). The Convertible Bonds are 
convertible (at any time on or after 18 November 2016 and up to the close of business on the 
business day immediately preceding the Maturity Date) by the bondholders into ordinary share of 
the Company at HK$0.0025 each (the "Shares") at the option of the bondholders, at a conversion 
price of HK$0.86 (the "Conversion Price") per share. The Conversion Price is subject to 
adjustment, including but not limited to the occurrence of events such as the consolidation, sub- 
division or reclassification of Shares, capitalization of profits or reserves, and capital distribution 
and the issue of new Shares at the issue price lower than the Conversion Price or lower than 80% 
of the current market price. Each bondholder shall have the right to convert all or any part (which 
shall be a minimum of US$2,500,000 and integral multiples of US$500,000 in excess thereof save 
that if at any time, the outstanding principal amount of the Convertible Bonds is less than 
US$2,500,000, the conversion right in respect of the whole (but not part only) of the outstanding 
principal amount of the Convertible Bonds may be exercised) of the principal amount of its 
Convertible Bonds into Shares at any time during the conversion period. The Company shall (i) 
redeem the outstanding Convertible Bonds on the Maturity Date at such redemption price as would 
result in an internal rate of return of no less than 4% per annum on all outstanding amounts 
payable by the Company to the bondholders; and (ii) upon the occurrence of any event of default 
as stipulated in the terms and conditions of the Convertible Bonds. 
 
The net proceeds from the issue of Convertible Bonds will be used for the Group's business 
development, including (i) lending to the Group's customers and acquisition of value assets in the 
ordinary and usual course of the Group's business; and (ii) general working capital of the Group. 
 
The Group determined that the above Conversion Price reset will not result in settlement by the 
exchange of a fixed amount of cash for a fixed number of the Company's shares. In accordance 
with the requirement of HKAS32, the bond contract is separated into two components: a compound 
derivative component consisting of the conversion option, and a liability component consisting of 
the straight debt element. 
 
The fair value of the derivative component of the Convertible Bonds was calculated using the 
Binominal model with the major inputs used in the model as follows: 
 
                                                                               As at             As at 
                                                                             30 June           18 May 
                                                                                2016             2016 
 
                                                                            HK$0.59 
Stock price                                                                                  HK$0.62 
                                                                               50% 
Volatility                                                                                       50% 
                                                                             0.37% 
Risk free rate                                                                                 0.40% 
 
Any changes in the major inputs into model will result in changes in the fair value of the derivative 
component. The change in the fair value of the derivative component during the six months ended 
30 June 2016 results in a fair value gain of RMB2,513,000 which has been included in the 
"Change in fair value of the embedded derivative of the convertible bonds" in the income 
statement for the six months ended 30 June 2016. 
 
Interest expenses are calculated using the effective interest method by apply the effective interest 
rate of 21% to the adjusted liability component. 
 
                                              15 
 
16.   SHARE CAPITAL 
                                                                                              Equivalent 
                                                         Number of           Nominal             nominal 
                                                          ordinary            value of           value of 
                                                            shares       share capital      share capital 
                                                              '000           HK$'000            RMB'000 
 
      Authorised: 
      Ordinary share of HK$0.0025 each 
      At 31 December 2015 and 30 June 2016               20,000,000             50,000             39,000 
 
 
      Issued and fully paid: 
      Ordinary share of HK$0.0025 each 
      At 31 December 2015 and 30 June 2016                4,236,009             10,590              8,292 
 
 
      During the six months ended 30 June 2016, there is no movement in share capital of the Company. 
 
17.   MAXIMUM EXPOSURE UNDER THE FINANCIAL GUARANTEE CONTRACTS 
      As at 30 June 2016, the Group's maximum exposure under the financial guarantee contracts is 
      RMB248.6 million (31 December 2015: RMB344.6 million). To mitigate such risk, the Group 
      requests the customers to provide collateral as appropriate. In the event of default or failure to 
      repay any outstanding guarantee amounts by the customers, the Group will proceed with sale of 
      collateral. As at 30 June 2016, the Group's exposures under unexpired financial guarantee 
      contracts were secured by the collateral of the customers in total amount of RMB483.2 million (31 
      December 2015: RMB790.0 million). 
 
      In respect of the Group's financial guarantee business, we have experienced default by certain 
      customers resulting in our Group having to honour our financing guarantee obligations amounted 
      to RMB16.9 million during the six months ended 30 June 2016 (2015: Nil). The management 
      considered that the Group will be able to recover the amount of approximately RMB15.6 million 
      by taking possession of the relevant collateral held by the Group and selling such collateral in the 
      market and/or claim the amounts from the counter-guarantors. As such, an impairment loss of 
      receivables from guarantee customers of approximately RMB1.3 million is recorded during the six 
      months ended 30 June 2016 (2015: Nil) 
 
 
 
 
                                                   16 
 
 
 
 
 
 

 
 
MANAGEMENT DISCUSSION AND ANALYSIS 
 
Business Review 
As an integrated financing service provider, the Group mainly provide short to medium- 
term financing and financing-related solutions in Fujian Province. During the six 
months ended 30 June 2016, the turnover was mainly derived from the provision of (i) 
guarantee services, (ii) express loan services (including pawn loan, entrusted loan and 
money lending services), (iii) financial services, (iv) finance lease services and (v) asset 
management services. 
 
Financial Review 
Revenue 
The revenue increased from approximately RMB92.7 million for the six months ended 
30 June 2015 to approximately RMB132.9 million for the six months ended 30 June 
2016, representing an increase of approximately RMB40.2 million or 43.3%. The 
increase was attributable to the net effect of the following reasons: 
 
Express loan services 
Pawn loan services 
Our Group's pawn loan service income decreased by 7.0% from approximately RMB8.3 
million for the six months ended 30 June 2015 to approximately RMB7.7 million for the 
six months ended 30 June 2016. Due to the decrease in turnover and profit of pawn loan 
business in recent year, the Group has disposed of the pawn loan business in late June 
2016. The proceeds from the disposal will enable the Group to have the more capital to 
focus on the other remaining business with higher profit contribution. 
 
Entrusted loan services 
In light of the tighten credit control by PRC banks and the strong demand for financing 
services to small and medium enterprises ("SMEs"), the Group continued to expand the 
entrusted loan business in the PRC. By using part of the proceeds from issuance of 
shares and bonds in past year, it allows the Group to grant more entrusted loans to 
customers and thereby generated more entrusted loan interest income. 
 
Our Group's entrusted loan service income increased sharply by 99.4% from 
approximately RMB20.1 million for the six months ended 30 June 2015 to RMB40.1 
million for the six months ended 30 June 2016. The increase of entrusted loan service 
income was mainly due to the (i) increase of outstanding entrusted loan receivables 
from approximately RMB311 million as at 30 June 2015 to RMB473 million as at 30 
June 2016. 
 
 
 
 
                                            17 
 
Money lending services 
The Group commenced its Hong Kong money lending business in second half of 2015 
and continued to expand the business in 2016. During the six months ended 30 June 
2016, the Group has recorded the income of approximately RMB3.9 million in relation 
to such business. Besides, the Group has also provided short-team financing to certain 
customers in the PRC and recorded the interest income of approximately RMB2.5 
million. 
 
Financial services 
The financial service income of our Group decreased from approximately RMB32.8 
million for the six months ended 30 June 2015 to RMB15.5 million for the six months 
ended 30 June 2016. We mainly focused on the financial services which charge our 
customers based on certain percentage of the amount of financing obtained by the 
customers as a result of our consultation. Due to the instability of the PRC economy in 
2016, there was a tightening of bank financing in the PRC. The process of obtaining a 
loan from the PRC banks for SMEs has become more difficult due to stricter criterions 
and the slow processing of approvals. Although our customers bases remain stable, the 
decrease of the successful rate and the amount of financing obtained from banks which 
lead to decrease of our income from financial services. 
 
Guarantee services 
We mainly provided the financing guarantee services during the six months ended 30 
June 2016 and 2015. Our Group's guarantee service income decreased by 31.8% from 
approximately RMB8.8 million for the six months ended 30 June 2015 to approximately 
RMB6.0 million for the six months ended 30 June 2016. In 2016, the financial risk 
became more prominent with a possible increase in company default rates in the PRC, 
the Company is adopting a more prudent approach for approval of the application of our 
guarantee services from potential customers. As such, the number of guarantee service 
decrease and the income from our guarantee services decrease accordingly. 
 
Finance lease services 
Following the acquisition of Jiashi International Financial Limited and its subsidiaries 
(collectively "Jiashi Group") in late October 2015 (the "Acquisition"), the Group 
further developed its finance lease business. The Acquisition has add momentum to the 
Group's finance lease business through Jiashi Group's extensive network and 
experience in the distant marine fisheries industry, agricultural drones, tourism and car 
leasing to individuals. 
 
Our Group's finance lease services income increased by 194.4% from approximately 
RMB7.7 million for the six months ended 30 June 2015 to RMB22.8 million for the six 
months ended 30 June 2016. The increase of finance lease service was mainly due to 
the contribution of the finance lease income from Jiashi Group. 
 
 
 
 
                                           18 
 
 
 
 
 
 

 
 
Asset management services 
In 2016, the Group has put more effort to expand the asset management business in 
order to capture the opportunities presented by abundant supply of distressed assets in 
Fujian Province. The Group is actively looking for the good quality distressed assets 
which potentially offer high-percentage returns. 
 
Our Group's income from assets management services increased by 129.6% from 
approximately RMB15 million for the six months ended 30 June 2015 to RMB34.4 
million for the six months ended 30 June 2016. The increase was mainly due to the fact 
that the Group has disposed/executed of five distressed assets during the six months 
ended 30 June 2016 as compared with only one distressed asset has been disposed for 
the corresponding period in 2015. 
 
Other income 
Other income increased from approximately RMB2.0 million for the six months ended 
30 June 2015 to approximately RMB2.4 million for the six months ended 30 June 2016, 
representing an increase of approximately RMB0.4 million or 19.3%. Our Group's other 
income mainly represented the bank interest income and the government grant. The 
increase in other income was mainly due to the fact that we have received more 
government grant. 
 
Employee benefit expenses 
The employee benefit expenses increased from approximately RMB5.2 million for the 
six months ended 30 June 2015 to approximately RMB9.3 million for the six months 
ended 30 June 2016, representing an increase of approximately RMB4.1 million or 
77.9%. Our Group's employee benefit expenses mainly comprised staff salaries, 
directors' emoluments and other benefits. The increase in employee benefit expenses 
was mainly attributable to the increase of number of staff as a result of completion of 
Acquisition and business expansion. 
 
Other expenses 
The other expenses increased from approximately RMB7.3 million for the six months 
ended 30 June 2015 to approximately RMB11.5 million for the six months ended 30 
June 2016, representing an increase of approximately RMB4.2 million or 57.9%. The 
increase in other expenses was mainly attributable to (i) the increase of operating 
expenses due to the Acquisition in late 2015 and (ii) increase of provision of bad debts 
of approximately RMB1.3 million. 
 
Profit for the period attributable to the owners of the Company 
Our Group's profit for the period attributable to the owners of the Company was 
approximately RMB71.2 million for the six months ended 30 June 2016, representing 
an increase of approximately RMB11.9 million, or 20.1%, from approximately 
RMB59.3 million for the six months ended 30 June 2015. 
 
 
 
                                          19 
 
Non-GAAP Financial Measures 
To supplemental the consolidated results of the Group prepared in accordance with 
HKFRSs, certain non-GAAP financial measures have been presented in this financial 
review. These unaudited non-GAAP financial measures should be considered in 
addition to, not as a substitute for, measures of the Group's financial performance 
prepared in accordance with HKFRSs. 
 
The Directors believe that, in conjunction with GAAP financial measures, the non- 
GAAP financial measures provide meaningful supplemental information to both 
investors and management in assessing the Group's financial performance. 
 
The non-GAAP financial measures do not include all items that impact the Group's 
financial performance prepared in accordance with HKFRSs. It excludes equity-settled 
share-based payments, change in fair value of the embedded derivative of the 
convertible bonds and imputed interests on convertible bonds, which have been and 
might continue to be significant non-cash expenses in the Group's financial 
performance prepared in accordance with HKFRSs. In addition, the non-GAAP 
financial measures may not be comparable to similar titled measures utilized by other 
companies since such other companies may not calculate such measures in the same 
manner as the Company does. 
 
The Directors expect to compute the non-GAAP financial measures using consistent 
methods going forward. The following table sets forth the reconciliations of the non- 
GAAP financial measures for the six months ended 30 June 2016 to the nearest 
measures prepared in accordance with HKFRSs: 
 
                                                            Six months ended 30 June 2016 
                                                                      Changes in 
                                                                     fair value of 
                                                                   the embedded 
                                                                       derivative       Imputed 
                                                    Equity-settled          of the   interests on 
                                                     shares based     convertible     convertible 
                                        As Reported     payments            bonds          bonds    Non-GAAP 
                                           RMB'000      RMB'000          RMB'000        RMB'000       RMB'000 
 
Profit before income tax                    101,355          3,141          (2,513)         2,520      104,503 
Profit for the period                        75,263          3,141          (2,513)         2,520       78,411 
Profit for the period attributable to 
  the owners of the Company                  71,155          3,141          (2,513)         2,520       74,303 
 
Basic earnings per share (RMB cents)           1.68                                                       1.75 
 
 
 
 
                                                       20 
 
 
 
 
 
 

 
 
                                                            Six months ended 
                                                                 30 June 
                                                               2016          2015 
                                                        (Unaudited)    (Unaudited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
 
Other comprehensive income, net of tax 
  Items that may be reclassified to profit 
     or loss in subsequent periods 
  - Exchange differences on translating 
                                                              (3,641) 
     foreign operation                                                            (50) 
  - Fair value gain on available-for-sale 
                                                             22,262 
     financial assets                                                          4,342 
  - Release to profit or loss upon disposal of 
                                                              (9,700) 
     available-for-sale financial assets                                            - 
 
                                                             84,184 
Total comprehensive income for the period                                     63,548 
 
Profit for the period attributable to: 
                                                             71,155 
  Owners of the Company                                                       59,256 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             75,263           59,256 
 
Total comprehensive income for the period attributable to: 
                                                             80,076 
  Owners of the Company                                                       63,548 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             84,184           63,548 
 
Earnings per share 
                                                                1.68 
  - Basic (RMB cents)                               10                  1.48(restated) 
                                                                1.68 
  - Diluted (RMB cents)                                                 1.48(restated) 
 
 
 
 
                                            3 
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 30 June 2016 
                                                              As at          As at 
                                                           30 June    31 December 
                                                              2016           2015 
                                                        (Unaudited)      (Audited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
ASSETS AND LIABILITIES 
Non-current assets 
                                                             11,352 
Property, plant and equipment                      11                      14,406 
                                                              6,715 
Prepaid land lease                                                          6,919 
                                                              1,950 
Restricted bank deposits                                                    2,930 
                                                            335,001 
Finance lease, loan and account receivables        12                     380,591 
                                                             33,400 
Goodwill                                                                   33,400 
                                                            388,418       438,246 
Current assets 
                                                            130,312 
Available-for-sales financial assets               13                      81,500 
                                                            938,093 
Finance lease, loan and account receivables        12                     790,096 
                                                            214,439 
Prepayments, deposits and other receivables        14                      83,155 
                                                             89,361 
Restricted bank deposits                                                   94,178 
                                                             47,265 
Cash and bank balances                                                     89,510 
                                                          1,419,470      1,138,439 
Current liabilities 
Accruals, other payables, deposits received 
                                                             89,708 
  and deferred income                                                     106,122 
                                                             22,280 
Provision for taxation                                                     18,812 
                                                            110,767 
Bank borrowings                                                           124,837 
                                                             18,060 
Derivative financial instruments                   15                           - 
                                                            240,815       249,771 
Net current assets                                        1,178,655       888,668 
Total assets less current liabilities                     1,567,073      1,326,914 
Non-current liabilities 
                                                             67,519 
Deposits received and deferred income                                      93,684 
                                                            160,273 
Bank borrowings                                                           218,591 
                                                             73,270 
Corporate bonds                                                            16,800 
                                                            180,847 
Convertible bonds                                  15                           - 
                                                            481,909       329,075 
Net assets                                                1,085,164       997,839 
EQUITY 
                                                              8,292 
Share capital                                      16                       8,292 
                                                            976,720 
Reserves                                                                  893,503 
Equity attributable to owners of the Company                985,012       901,795 
Non-controlling interests                                   100,152        96,044 
Total equity                                              1,085,164       997,839 
 
 
                                              4 
 
 
 
 
 
 

0

0


 
 
                                                            Six months ended 
                                                                 30 June 
                                                               2016          2015 
                                                        (Unaudited)    (Unaudited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
 
Other comprehensive income, net of tax 
  Items that may be reclassified to profit 
     or loss in subsequent periods 
  - Exchange differences on translating 
                                                              (3,641) 
     foreign operation                                                            (50) 
  - Fair value gain on available-for-sale 
                                                             22,262 
     financial assets                                                          4,342 
  - Release to profit or loss upon disposal of 
                                                              (9,700) 
     available-for-sale financial assets                                            - 
 
                                                             84,184 
Total comprehensive income for the period                                     63,548 
 
Profit for the period attributable to: 
                                                             71,155 
  Owners of the Company                                                       59,256 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             75,263           59,256 
 
Total comprehensive income for the period attributable to: 
                                                             80,076 
  Owners of the Company                                                       63,548 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             84,184           63,548 
 
Earnings per share 
                                                                1.68 
  - Basic (RMB cents)                               10                  1.48(restated) 
                                                                1.68 
  - Diluted (RMB cents)                                                 1.48(restated) 
 
 
 
 
                                            3 
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 30 June 2016 
                                                              As at          As at 
                                                           30 June    31 December 
                                                              2016           2015 
                                                        (Unaudited)      (Audited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
ASSETS AND LIABILITIES 
Non-current assets 
                                                             11,352 
Property, plant and equipment                      11                      14,406 
                                                              6,715 
Prepaid land lease                                                          6,919 
                                                              1,950 
Restricted bank deposits                                                    2,930 
                                                            335,001 
Finance lease, loan and account receivables        12                     380,591 
                                                             33,400 
Goodwill                                                                   33,400 
                                                            388,418       438,246 
Current assets 
                                                            130,312 
Available-for-sales financial assets               13                      81,500 
                                                            938,093 
Finance lease, loan and account receivables        12                     790,096 
                                                            214,439 
Prepayments, deposits and other receivables        14                      83,155 
                                                             89,361 
Restricted bank deposits                                                   94,178 
                                                             47,265 
Cash and bank balances                                                     89,510 
                                                          1,419,470      1,138,439 
Current liabilities 
Accruals, other payables, deposits received 
                                                             89,708 
  and deferred income                                                     106,122 
                                                             22,280 
Provision for taxation                                                     18,812 
                                                            110,767 
Bank borrowings                                                           124,837 
                                                             18,060 
Derivative financial instruments                   15                           - 
                                                            240,815       249,771 
Net current assets                                        1,178,655       888,668 
Total assets less current liabilities                     1,567,073      1,326,914 
Non-current liabilities 
                                                             67,519 
Deposits received and deferred income                                      93,684 
                                                            160,273 
Bank borrowings                                                           218,591 
                                                             73,270 
Corporate bonds                                                            16,800 
                                                            180,847 
Convertible bonds                                  15                           - 
                                                            481,909       329,075 
Net assets                                                1,085,164       997,839 
EQUITY 
                                                              8,292 
Share capital                                      16                       8,292 
                                                            976,720 
Reserves                                                                  893,503 
Equity attributable to owners of the Company                985,012       901,795 
Non-controlling interests                                   100,152        96,044 
Total equity                                              1,085,164       997,839 
 
 
                                              4 
 
 
 
 
 
 

1

1


 
 
                                                            Six months ended 
                                                                 30 June 
                                                               2016          2015 
                                                        (Unaudited)    (Unaudited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
 
Other comprehensive income, net of tax 
  Items that may be reclassified to profit 
     or loss in subsequent periods 
  - Exchange differences on translating 
                                                              (3,641) 
     foreign operation                                                            (50) 
  - Fair value gain on available-for-sale 
                                                             22,262 
     financial assets                                                          4,342 
  - Release to profit or loss upon disposal of 
                                                              (9,700) 
     available-for-sale financial assets                                            - 
 
                                                             84,184 
Total comprehensive income for the period                                     63,548 
 
Profit for the period attributable to: 
                                                             71,155 
  Owners of the Company                                                       59,256 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             75,263           59,256 
 
Total comprehensive income for the period attributable to: 
                                                             80,076 
  Owners of the Company                                                       63,548 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             84,184           63,548 
 
Earnings per share 
                                                                1.68 
  - Basic (RMB cents)                               10                  1.48(restated) 
                                                                1.68 
  - Diluted (RMB cents)                                                 1.48(restated) 
 
 
 
 
                                            3 
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 30 June 2016 
                                                              As at          As at 
                                                           30 June    31 December 
                                                              2016           2015 
                                                        (Unaudited)      (Audited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
ASSETS AND LIABILITIES 
Non-current assets 
                                                             11,352 
Property, plant and equipment                      11                      14,406 
                                                              6,715 
Prepaid land lease                                                          6,919 
                                                              1,950 
Restricted bank deposits                                                    2,930 
                                                            335,001 
Finance lease, loan and account receivables        12                     380,591 
                                                             33,400 
Goodwill                                                                   33,400 
                                                            388,418       438,246 
Current assets 
                                                            130,312 
Available-for-sales financial assets               13                      81,500 
                                                            938,093 
Finance lease, loan and account receivables        12                     790,096 
                                                            214,439 
Prepayments, deposits and other receivables        14                      83,155 
                                                             89,361 
Restricted bank deposits                                                   94,178 
                                                             47,265 
Cash and bank balances                                                     89,510 
                                                          1,419,470      1,138,439 
Current liabilities 
Accruals, other payables, deposits received 
                                                             89,708 
  and deferred income                                                     106,122 
                                                             22,280 
Provision for taxation                                                     18,812 
                                                            110,767 
Bank borrowings                                                           124,837 
                                                             18,060 
Derivative financial instruments                   15                           - 
                                                            240,815       249,771 
Net current assets                                        1,178,655       888,668 
Total assets less current liabilities                     1,567,073      1,326,914 
Non-current liabilities 
                                                             67,519 
Deposits received and deferred income                                      93,684 
                                                            160,273 
Bank borrowings                                                           218,591 
                                                             73,270 
Corporate bonds                                                            16,800 
                                                            180,847 
Convertible bonds                                  15                           - 
                                                            481,909       329,075 
Net assets                                                1,085,164       997,839 
EQUITY 
                                                              8,292 
Share capital                                      16                       8,292 
                                                            976,720 
Reserves                                                                  893,503 
Equity attributable to owners of the Company                985,012       901,795 
Non-controlling interests                                   100,152        96,044 
Total equity                                              1,085,164       997,839 
 
 
                                              4 
 
 
 
 
 
 

2

2


 
 
                                                            Six months ended 
                                                                 30 June 
                                                               2016          2015 
                                                        (Unaudited)    (Unaudited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
 
Other comprehensive income, net of tax 
  Items that may be reclassified to profit 
     or loss in subsequent periods 
  - Exchange differences on translating 
                                                              (3,641) 
     foreign operation                                                            (50) 
  - Fair value gain on available-for-sale 
                                                             22,262 
     financial assets                                                          4,342 
  - Release to profit or loss upon disposal of 
                                                              (9,700) 
     available-for-sale financial assets                                            - 
 
                                                             84,184 
Total comprehensive income for the period                                     63,548 
 
Profit for the period attributable to: 
                                                             71,155 
  Owners of the Company                                                       59,256 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             75,263           59,256 
 
Total comprehensive income for the period attributable to: 
                                                             80,076 
  Owners of the Company                                                       63,548 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             84,184           63,548 
 
Earnings per share 
                                                                1.68 
  - Basic (RMB cents)                               10                  1.48(restated) 
                                                                1.68 
  - Diluted (RMB cents)                                                 1.48(restated) 
 
 
 
 
                                            3 
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 30 June 2016 
                                                              As at          As at 
                                                           30 June    31 December 
                                                              2016           2015 
                                                        (Unaudited)      (Audited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
ASSETS AND LIABILITIES 
Non-current assets 
                                                             11,352 
Property, plant and equipment                      11                      14,406 
                                                              6,715 
Prepaid land lease                                                          6,919 
                                                              1,950 
Restricted bank deposits                                                    2,930 
                                                            335,001 
Finance lease, loan and account receivables        12                     380,591 
                                                             33,400 
Goodwill                                                                   33,400 
                                                            388,418       438,246 
Current assets 
                                                            130,312 
Available-for-sales financial assets               13                      81,500 
                                                            938,093 
Finance lease, loan and account receivables        12                     790,096 
                                                            214,439 
Prepayments, deposits and other receivables        14                      83,155 
                                                             89,361 
Restricted bank deposits                                                   94,178 
                                                             47,265 
Cash and bank balances                                                     89,510 
                                                          1,419,470      1,138,439 
Current liabilities 
Accruals, other payables, deposits received 
                                                             89,708 
  and deferred income                                                     106,122 
                                                             22,280 
Provision for taxation                                                     18,812 
                                                            110,767 
Bank borrowings                                                           124,837 
                                                             18,060 
Derivative financial instruments                   15                           - 
                                                            240,815       249,771 
Net current assets                                        1,178,655       888,668 
Total assets less current liabilities                     1,567,073      1,326,914 
Non-current liabilities 
                                                             67,519 
Deposits received and deferred income                                      93,684 
                                                            160,273 
Bank borrowings                                                           218,591 
                                                             73,270 
Corporate bonds                                                            16,800 
                                                            180,847 
Convertible bonds                                  15                           - 
                                                            481,909       329,075 
Net assets                                                1,085,164       997,839 
EQUITY 
                                                              8,292 
Share capital                                      16                       8,292 
                                                            976,720 
Reserves                                                                  893,503 
Equity attributable to owners of the Company                985,012       901,795 
Non-controlling interests                                   100,152        96,044 
Total equity                                              1,085,164       997,839 
 
 
                                              4 
 
 
 
 
 
 

3

3


 
 
                                                            Six months ended 
                                                                 30 June 
                                                               2016          2015 
                                                        (Unaudited)    (Unaudited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
 
Other comprehensive income, net of tax 
  Items that may be reclassified to profit 
     or loss in subsequent periods 
  - Exchange differences on translating 
                                                              (3,641) 
     foreign operation                                                            (50) 
  - Fair value gain on available-for-sale 
                                                             22,262 
     financial assets                                                          4,342 
  - Release to profit or loss upon disposal of 
                                                              (9,700) 
     available-for-sale financial assets                                            - 
 
                                                             84,184 
Total comprehensive income for the period                                     63,548 
 
Profit for the period attributable to: 
                                                             71,155 
  Owners of the Company                                                       59,256 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             75,263           59,256 
 
Total comprehensive income for the period attributable to: 
                                                             80,076 
  Owners of the Company                                                       63,548 
                                                              4,108 
  Non-controlling interests                                                        - 
 
                                                             84,184           63,548 
 
Earnings per share 
                                                                1.68 
  - Basic (RMB cents)                               10                  1.48(restated) 
                                                                1.68 
  - Diluted (RMB cents)                                                 1.48(restated) 
 
 
 
 
                                            3 
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
As at 30 June 2016 
                                                              As at          As at 
                                                           30 June    31 December 
                                                              2016           2015 
                                                        (Unaudited)      (Audited) 
                                                          RMB'000 
                                                  Notes                  RMB'000 
ASSETS AND LIABILITIES 
Non-current assets 
                                                             11,352 
Property, plant and equipment                      11                      14,406 
                                                              6,715 
Prepaid land lease                                                          6,919 
                                                              1,950 
Restricted bank deposits                                                    2,930 
                                                            335,001 
Finance lease, loan and account receivables        12                     380,591 
                                                             33,400 
Goodwill                                                                   33,400 
                                                            388,418       438,246 
Current assets 
                                                            130,312 
Available-for-sales financial assets               13                      81,500 
                                                            938,093 
Finance lease, loan and account receivables        12                     790,096 
                                                            214,439 
Prepayments, deposits and other receivables        14                      83,155 
                                                             89,361 
Restricted bank deposits                                                   94,178 
                                                             47,265 
Cash and bank balances                                                     89,510 
                                                          1,419,470      1,138,439 
Current liabilities 
Accruals, other payables, deposits received 
                                                             89,708 
  and deferred income                                                     106,122 
                                                             22,280 
Provision for taxation                                                     18,812 
                                                            110,767 
Bank borrowings                                                           124,837 
                                                             18,060 
Derivative financial instruments                   15                           - 
                                                            240,815       249,771 
Net current assets                                        1,178,655       888,668 
Total assets less current liabilities                     1,567,073      1,326,914 
Non-current liabilities 
                                                             67,519 
Deposits received and deferred income                                      93,684 
                                                            160,273 
Bank borrowings                                                           218,591 
                                                             73,270 
Corporate bonds                                                            16,800 
                                                            180,847 
Convertible bonds                                  15                           - 
                                                            481,909       329,075 
Net assets                                                1,085,164       997,839 
EQUITY 
                                                              8,292 
Share capital                                      16                       8,292 
                                                            976,720 
Reserves                                                                  893,503 
Equity attributable to owners of the Company                985,012       901,795 
Non-controlling interests                                   100,152        96,044 
Total equity                                              1,085,164       997,839 
 
 
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