HK Bourse: Results Announcement From Lee & Man Chemical Co. Ltd.

 
    For full details, please click on the following link: 
http://www.hkexnews.hk/listedco/listconews/sehk/2016/0810/LTN20160810650.pdf 
 
INTERIM 
 
 
 2016 
 
Content 
CORPORATE INFORMATION                                  2 
 
 
INTERIM RESULTS                                        4 
 
 
- CONDENSED CONSOLIDATED STATEMENT OF                  4 
 
    PROFIT OR LOSS AND OTHER 
    COMPREHENSIVE INCOME 
 
- CONDENSED CONSOLIDATED STATEMENT OF                  5 
 
    FINANCIAL POSITION 
 
- CONDENSED CONSOLIDATED STATEMENT OF                  6 
 
    CHANGES IN EQUITY 
 
- CONDENSED CONSOLIDATED STATEMENT OF                  7 
 
    CASH FLOWS 
 
- NOTES TO THE CONDENSED CONSOLIDATED                   8 
 
    FINANCIAL STATEMENTS 
 
- INTERIM DIVIDEND                                     18 
 
 
- CLOSURE OF REGISTER OF MEMBERS                       18 
 
 
MANAGEMENT DISCUSSION AND ANALYSIS                     19 
 
 
OTHER INFORMATION                                      22 
 
 
 
 
 
 
 Stock Market Quotes, Business News, Financial News from http://commodity-market-news.com
 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Corporate Information 
 
BOARD OF DIRECTORS 
 
Executive directors 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Lee Man Yan (Chief Executive Officer) 
 
Professor Chan Albert Sun Chi (appointed on 9 May 2016)            201659 
 
Mr. Yang Zuo Ning 
Ms. Wong Yuet Ming 
 
Independent non-executive directors 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
Mr. Heng Victor Ja Wei 
 
AUDIT COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
REMUNERATION COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
NOMINATION COMMITTEE 
 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Heng Victor Ja Wei 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
COMPANY SECRETARY 
 
Ms. Wong Yuet Ming 
 
REGISTERED OFFICE 
 
Cricket Square                                                Cricket Square 
Hutchins Drive                                                Hutchins Drive 
P.O. Box 2681                                                 P.O. Box 2681 
Grand Cayman, KY1-1111                                        Grand Cayman, KY1-1111 
Cayman Islands                                                Cayman Islands 
 
 
 
 
                                                          2 
 
                                                                                      Interim Report 2016 
 
 
 
 
HONG KONG OFFICE 
 
8th Floor, Liven House 
61-63 King Yip Street 
Kwun Tong 
Kowloon                                                   61-63 
Hong Kong                                                 8 
 
PRINCIPAL BANKERS 
 
Hong Kong: 
Hang Seng Bank Limited 
The Hongkong and Shanghai Banking Corporation Ltd. 
Mizuho Bank Ltd., Hong Kong Branch 
DBS Bank (Hong Kong) Limited 
Bank of China (Hong Kong) Limited 
 
AUDITORS 
 
Deloitte Touche Tohmatsu 
Certified Public Accountants 
 
PRINCIPAL SHARE REGISTRAR 
 
Royal Bank of Canada Trust Company (Cayman) Limited       Royal Bank of Canada Trust Company (Cayman) Limited 
4th Floor, Royal Bank House                               4th Floor, Royal Bank House 
24 Shedden Road, George Town                              24 Shedden Road, George Town 
Grand Cayman KY1-1110                                     Grand Cayman KY1-1110 
Cayman Islands                                            Cayman Islands 
 
HONG KONG BRANCH SHARE REGISTRAR 
 
Tricor Secretaries Limited 
Level 22, Hopewell Centre 
183 Queen's Road East                                     183 
Hong Kong                                                 22 
 
WEBSITE 
 
http://www.leemanchemical.com                             http://www.leemanchemical.com 
 
 
 
 
                                                      3 
 
 
 
 
 
 
 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Interim Results 
 
The board of directors (the "Board") of Lee & Man Chemical Company 
 
Limited (the "Company") is pleased to announce the unaudited interim 
 
results of the Company and its subsidiaries (the "Group") for the six   20166306 
months ended 30 June 2016 together with comparative figures for the 
last corresponding period as follows: 
 
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR 
LOSS AND OTHER COMPREHENSIVE INCOME 
For the six months ended 30 June 2016                                   20166306 
 
                                                                                   Six months ended 30 June 
                                                                                      6306 
                                                                                         2016           2015 
                                                                                   (Unaudited)    (Unaudited) 
 
                                                                                       HK$'000       HK$'000 
                                                                           Notes 
 
 
                                                                                      810,106 
Revenue                                                                                             794,803 
                                                                             3 
 
                                                                                     (513,501) 
Cost of sales                                                                                      (496,697) 
 
 
                                                                                      296,605 
Gross profit                                                                                        298,106 
 
 
                                                                                       33,430 
Other income                                                                                         59,747 
                                                                             4 
 
                                                                                      (58,171) 
Selling and distribution costs                                                                      (43,305) 
 
                                                                                      (75,750) 
General and administrative expenses                                                                 (58,598) 
 
                                                                                      (21,185) 
Research and administrative cost                                                                    (36,440) 
 
                                                                                       (6,965) 
Finance costs                                                                                       (11,270) 
                                                                             5 
 
                                                                                       (1,580) 
Share of loss of joint ventures                                                                      (2,428) 
 
 
                                                                                      166,384 
Profit before taxation                                                                              205,812 
 
                                                                                      (47,134) 
Income tax expense                                                                                  (42,699) 
                                                                             6 
 
 
Profit for the period                                                                 119,250       163,113 
                                                                             7 
 
 
Other comprehensive(expenses) income: 
 
 
Items that will not be reclassified to 
   profit or loss: 
                                                                                            - 
Exchange differences arising from translation                                                           261 
 
Net (loss) gain on hedging instruments in 
 
                                                                                          (18) 
   cash flow hedges                                                                                      87 
 
 
Other comprehensive (expenses) income for 
 
                                                                                          (18) 
  the period                                                                                            348 
 
Total comprehensive income for 
  the period                                                                          119,232       163,461 
 
 
Earnings per share: 
                                                                                         14.5 
  - Basic (HK cents)                                                                                    19.8 
                                                                             9 
 
 
 
 
 
                                                         4 
 
                                                                           Interim Report 2016 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL 
POSITION 
At 30 June 2016                                                2016630 
 
                                                                            30.06.2016   31.12.2015 
                                                                           (Unaudited)     (Audited) 
 
                                                                              HK$'000        HK'000 
                                                                   Notes 
 
 
NON-CURRENT ASSETS 
                                                                             3,400,603 
Property, plant and equipment                                                             3,295,041 
                                                                    10 
 
                                                                               121,257 
Prepaid lease payments                                                                      122,609 
 
                                                                                46,900 
Investment property                                                                          46,901 
 
                                                                                 2,987 
Intangible assets                                                                             3,570 
 
Deposits paid for the acquisition of property, 
                                                                               85,613 
   plant and equipment                                                                      48,964 
 
                                                                               17,579 
Interests in joint ventures                                                                 19,158 
 
                                                                               99,387 
Other deposits                                                                              99,387 
 
                                                                               23,526 
Deferred tax asset                                                                          23,780 
 
 
                                                                             3,797,852    3,659,410 
 
CURRENT ASSETS 
                                                                              188,976 
Inventories                                                                                206,715 
                                                                    11 
 
                                                                                3,222 
Prepaid lease payments                                                                       3,222 
 
                                                                              424,556 
Trade and other receivables                                                                379,206 
                                                                    12 
 
                                                                               14,371 
Tax recoverable                                                                             11,976 
 
                                                                               95,365 
Loan to a joint venture                                                                     93,652 
 
                                                                               16,965 
Amount due from a joint venture                                                             15,138 
 
                                                                               67,208 
Bank balances and cash                                                                     252,721 
 
 
                                                                              810,663      962,630 
 
CURRENT LIABILITIES 
                                                                              330,125 
Trade and other payables                                                                   301,886 
                                                                    13 
 
                                                                                2,896 
Amounts due to related companies                                                             3,793 
 
                                                                               53,856 
Taxation payable                                                                            42,517 
 
                                                                                  202 
Derivative financial instruments                                                                42 
 
 
                                                                              360,017 
Bank borrowings - due within 1 year                                                        611,444 
                                                 1 
 
                                                                              747,096      959,682 
 
NET CURRENT ASSETS                                                             63,567         2,948 
 
 
TOTAL ASSETS LESS CURRENT LIABILITIES                                        3,861,419    3,662,358 
 
 
NON-CURRENT LIABILITIES 
                                                                             1,402,055 
Bank borrowings - due after 1 year                                                        1,250,390 
                                                 1 
                                                                                35,104 
Other payables                                                                               65,506 
 
                                                                                     - 
Derivative financial instruments                                                                184 
 
 
                                                                             1,437,159    1,316,080 
 
NET ASSETS                                                                   2,424,260    2,346,278 
 
 
CAPITAL AND RESERVES 
                                                                                82,500 
Share capital                                                                                82,500 
                                                                    14 
 
                                                                             2,341,760 
Reserves                                                                                  2,263,778 
 
 
                                                                             2,424,260    2,346,278 
 
 
 
 
                                                        5 
 
 
 
 
 
 
 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Interim Results 
 
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN 
EQUITY 
For the six months ended 30 June 2016                                                                                       20166306 
 
                                                                                                         Non-                                              Share 
                                                                            Share       Share   distributable Safety fund   Translation     Hedging     options      Special Accumulated 
                                                                           capital   premium          reserve     reserve       reserve      reserve     reserve     reserve      profits       Total 
 
                                                                          HK$'000     HK$'000         HK$'000    HK$'000       HK$'000      HK$'000     HK$'000     HK$'000      HK$'000      HK$'000 
 
                                                                                                       (note i)                                                      (note ii) 
                                                                                                     i                                                          ii 
 
 
At 1 January 2015 (audited)                                                82,500      20,307       251,619        17,588         130,701      (816)     163,430     (97,362)   1,729,996    2,297,963 
                                                      201511 
 
 
 
Profit for the period                                                           -          -              -            -               -          -            -           -      163,113     163,113 
 
Other comprehensive (expense) income for 
 
  the period                                                                    -          -              -            -             261         87            -           -            -         348 
 
 
 
Total comprehensive (expense) income for the period                             -          -              -            -             261         87            -           -      163,113     163,461 
 
 
Dividend recognised as distribution                                             -          -              -            -               -          -            -           -      (66,000)    (66,000) 
 
Release of reserve for share options lapsed during 
  the period                                                                    -          -              -            -               -          -     (163,430)          -      163,430           - 
Transfer to non-distributable reserve                                           -          -         20,532            -               -          -            -           -      (20,532)          - 
 
 
 
At 30 June 2015 (unaudited)                                                82,500      20,307       272,151        17,588         130,962      (729)           -     (97,362)   1,970,007    2,395,424 
                                                      2015630 
 
 
At 1 January 2016 (audited)                                                82,500      20,307       289,475        20,348          32,456      (184)           -     (97,362)   1,998,738    2,346,278 
                                                      201611 
 
 
Profit for the period                                                           -          -              -            -               -          -            -           -      119,250     119,250 
 
Other comprehensive (expense) income for the period                       -          -              -            -               -        (18)           -           -            -         (18) 
 
 
 
Total comprehensive (expense) income for the period                             -          -              -            -               -        (18)           -           -      119,250     119,232 
 
 
Dividend recognised as distribution                                             -          -              -            -               -          -            -           -      (41,250)    (41,250) 
 
Transfer to non-distributable reserve                                           -          -         16,297            -               -          -            -           -      (16,297)          - 
 
Release upon deregistration of a subsidiary                                     -          -              -            -             224          -            -           -         (224)          - 
 
 
 
At 30 June 2016 (unaudited)                                                82,500      20,307       305,772        20,348          32,680      (202)           -     (97,362)   2,060,217    2,424,260 
                                                      2016630 
 
 
notes: 
 
i.        According to the relevant laws in the People's Republic of China ("PRC"), wholly                                  i. 
 
          foreign-owned enterprises in the PRC are required to transfer at least 10% of their net                                      10% 
          profits after taxation, as determined under the PRC accounting regulations, to a non- 
          distributable reserve fund until the reserve balance reaches 50% of their registered                                         50% 
          capital. The transfer to this reserve must be made before the distribution of a dividend 
          to equity owners. The non-distributable reserve fund can be used to offset the previous 
          years' losses, if any. The non-distributable reserve fund is non-distributable other than 
          upon liquidation. 
 
 
ii.       The special reserve of the Group represents the difference between the nominal value                              ii.        200112 
          of the share capital issued by the Company and the nominal value of the share capital 
          of the subsidiaries acquired pursuant to a group reorganisation in December 2001. 
 
 
 
 
                                                                                                   6 
 
                                                                           Interim Report 2016 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
For the six months ended 30 June 2016                            20166306 
 
                                                                          Six months ended 30 June 
                                                                             6306 
                                                                                2016          2015 
                                                                          (Unaudited)   (Unaudited) 
 
                                                                              HK$'000      HK$'000 
 
 
 
NET CASH FROM OPERATING ACTIVITIES                                           239,244       304,001 
 
 
 
INVESTING ACTIVITIES 
                                                                            (139,839) 
Purchase of property, plant and equipment                                                 (235,630) 
 
                                                                                   - 
Prepaid lease payments                                                                     (37,157) 
 
Deposits paid for acquisition of property, 
                                                                              (69,455) 
   plant and equipment                                                                    (116,222) 
 
                                                                                    - 
Other deposit paid                                                                         (67,539) 
 
                                                                                    - 
Investment in associate                                                                    (23,994) 
 
                                                                                    - 
Loan to a jointly venture                                                                   (2,329) 
 
                                                                                1,228 
Interest received                                                                           10,569 
 
Proceeds from disposal of property, 
                                                                                   94 
   plant and equipment                                                                          141 
 
                                                                              (46,027) 
(Decrease) increase in construction payable                                                 (20,515) 
 
 
 
 
NET CASH USED IN INVESTING ACTIVITIES                                       (253,999)     (492,676) 
 
 
 
FINANCING ACTIVITIES 
                                                                             517,591 
Bank borrowings raised                                                                     597,050 
 
                                                                            (617,353) 
Repayment of bank borrowings                                                              (592,451) 
 
                                                                             (27,733) 
Interest paid                                                                              (29,677) 
 
                                                                             (41,250) 
Dividends paid                                                                             (66,000) 
 
Settlement of derivative financial instruments under 
                                                                                (301) 
   hedge accounting                                                                          (1,160) 
 
 
 
NET CASH FROM FINANCING ACTIVITIES                                          (169,046)       (92,238) 
 
 
 
NET DECREASE IN CASH AND 
 
 CASH EQUIVALENTS                                                           (183,801)     (280,913) 
 
 
CASH AND CASH EQUIVALENTS AT BEGINNING 
  OF THE PERIOD                                                              252,721       596,752 
 
 
EFFECT OF CHANGES IN EXCHANGE RATE                                             (1,712)        (214) 
 
 
 
CASH AND CASH EQUIVALENTS AT END OF 
  THE PERIOD                                                                  67,208       315,625 
 
 
 
 
 
                                                        7 
 
 
 
 
 
 
 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Interim Results 
 
NOTE TO THE CONDENSED CONSOLIDATED FINANCIAL 
STATEMENTS 
 
Notes: 
 
1.   BASIS OF PREPARATION                                                    1. 
 
     The condensed consolidated financial statements have been 
     prepared in accordance with Hong Kong Accounting Standard 34 
 
     Interim Financial Reporting issued by the Hong Kong Institute                34 
     of Certified Public Accountants ("HKICPA") as well as with the 
 
     applicable disclosure requirements of Appendix 16 to the Rules                16 
 
     Governing the Listing of Securities on The Stock Exchange of Hong 
     Kong Limited (the "Listing Rules"). 
 
2.   PRINCIPAL ACCOUNTING POLICIES                                           2. 
 
     The condensed consolidated financial statements have been 
     prepared on the historical cost basis except for derivative financial 
     instruments that are measured at fair values. 
 
     Except as described below, the accounting policies and methods               2016630 
     of computation used in the condensed consolidated financial                  6 
     statements for the six months ended 30 June 2016 are the same                2015 
     as those followed in the preparation of the Group's financial                1231 
     statements for the year ended 31 December 2015. 
 
     In the current interim period, the Group has applied, for the first 
     time, certain amendments to Hong Kong Financial Reporting 
     Standards ("HKFRSs") and Interpretations issued by the HKICPA that 
 
     are mandatorily effective for the current interim period. 
 
 
     The application of the amendments to HKFRSs and Interpretations 
     in the current interim period has had no material effect on the 
     amounts reported and/or disclosures set out in these condensed 
     consolidated financial statements. 
 
3.   SEGMENT INFORMATION                                                     3. 
 
     (a) Operating segments                                                       (a) 
 
          Information reported to the Chief Executive Officer of the 
          Company, being the CODM, for the purposes of resources 
          allocation and assessment of segment performance focuses 
          on types of goods sold. 
 
 
          The CODM regards the Chemical Business as the Group's 
          sole operating reportable segment and reviews the Group's 
          results and financial position as a whole for the purpose 
          of performance measurement and resources allocation. 
          Accordingly, no segment analysis is presented other than entity 
          wide disclosure. 
 
 
 
                                                              8 
 
                                                                                        Interim Report 2016 
 
 
 
 
3.   SEGMENT INFORMATION (CONTINUED)                                      3. 
 
 
     (b) Geographical information                                              (b) 
 
           The Group's operations are located in the PRC. 
 
           The Group's revenue from external customers by geographical 
           location is detailed below: 
 
                                                                                         Revenue from external 
                                                                                              customers 
 
                                                                                       Six months ended 30 June 
                                                                                          6306 
                                                                                            2016          2015 
                                                                                          HK$'000       HK$'000 
 
 
 
                                                                                          810,106 
           PRC                                                                                          794,803 
 
 
 
     (c)   Revenue from major products                                         (c) 
 
           The following is an analysis of the Group's revenue from its 
           major products: 
 
                                                                                       Six months ended 30 June 
                                                                                          6306 
                                                                                            2016          2015 
                                                                                          HK$'000       HK$'000 
 
 
 
                                                                                          247,290 
           Chloromethane products                                                                       326,323 
 
                                                                                          389,762 
           Caustic soda                                                                                 327,605 
 
                                                                                           29,701 
           Hydrogen peroxide                                                                             57,644 
 
                                                                                          143,353 
           Others                                                                                        83,231 
 
 
 
                                                                                          810,106       794,803 
 
 
                                                                               (d) 
     (d) Information about major customers 
 
 
           No customer contributed over 10% of the total sales of the 
                                                                                     10% 
           Group in both periods. 
 
 
 
 
                                                            9 
 
 
 
 
 
 
 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Interim Results 
 
4.   OTHER INCOME                                     4. 
 
                                                                  Six months ended 30 June 
                                                                     6306 
                                                                       2016          2015 
                                                                     HK$'000       HK$'000 
 
 
 
                                                                       1,228 
     Bank interest income                                                           10,569 
 
                                                                      17,395 
     Government grant                                                               32,763 
 
                                                                      14,807 
     Others                                                                         16,415 
 
 
 
                                                                      33,430        59,747 
 
 
5.   FINANCE COSTS                                    5. 
 
                                                                  Six months ended 30 June 
                                                                     6306 
                                                                       2016          2015 
                                                                     HK$'000       HK$'000 
 
 
 
     Interest on bank borrowings wholly 
                                                                      27,733 
        repayable within five years                                                 29,678 
 
     Amount capitalized to property, 
                                                                     (21,069) 
        plant and equipment                                                        (19,568) 
 
     Net adjustment on interest rate swaps 
        designated as cash flow hedges of 
                                                                         301 
        floating rate debt                                                           1,160 
 
 
                                                                       6,965        11,270 
 
 
 
 
                                               10 
 
                                                                                          Interim Report 2016 
 
 
 
 
6.   INCOME TAX EXPENSE                                                      6. 
 
                                                                                       Six months ended 30 June 
                                                                                          6306 
                                                                                              2016          2015 
                                                                                            HK$'000       HK$'000 
 
 
 
     The charge comprises: 
       Current tax: 
                                                                                             46,881 
         PRC Enterprise Income Tax ("EIT")                                                                 30,585 
 
                                                                                                  - 
         Deferred tax liability                                                                            11,850 
 
 
       Deferred tax: 
                                                                                                253 
         Current period                                                                                       264 
 
 
 
                                                                                             47,134        42,699 
 
 
     The Group's major business is in the PRC. Under the Law of the 
     PRC on EIT and its Implementation Regulation, the tax rate of the 
     PRC subsidiaries is 25%.                                                     25% 
 
     For the year 2015 and 2016, Jiangsu Lee & Man Chemical Limited               20152016 
     was entitled to a reduced EIT rate of 15% as it has been qualified as 
 
     a High and New-Tech Enterprise.                                              15% 
 
 
     Taxation arising in other jurisdiction is calculated at the rate 
     prevailing in the relevant jurisdiction. 
 
     No provision for Hong Kong Profits Tax is made for both periods 
     since there is no assessable profit for both periods. 
 
 
 
 
                                                           11 
 
 
 
 
 
 
 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Interim Results 
 
7.   PROFIT FOR THE PERIOD                                            7. 
 
                                                                                  Six months ended 30 June 
                                                                                     6306 
                                                                                       2016          2015 
                                                                                     HK$'000       HK$'000 
 
 
 
     Profit for the period has been arrived at after 
       charging: 
                                                                                       4,885 
       Directors' emoluments                                                                         4,840 
 
                                                                                      77,982 
       Other staff costs                                                                            67,247 
 
       Retirement benefit schemes contributions 
                                                                                       4,018 
           (excluding directors)                                                                     3,673 
 
 
 
                                                                                      86,885 
       Total staff costs                                                                            75,760 
 
 
 
                                                                                       1,352 
       Amortisation of prepaid lease payments                                                          838 
 
                                                                                         584 
       Amortisation of intangible assets                                                               608 
 
                                                                                     513,501 
       Cost of inventories recognised as expenses                                                  496,697 
 
                                                                                      87,091 
       Depreciation of property, plant and equipment                                                91,049 
 
 
                                                                      8. 
8.   DIVIDENDS 
 
                                                                                  Six months ended 30 June 
                                                                                     6306 
                                                                                       2016          2015 
                                                                                     HK$'000       HK$'000 
 
 
 
     Final dividend paid during the period: 
     2015 final dividend HK5.0 cents per share         20155.0 
                                                                                      41,250 
        (2014: HK8.0 cents)                                                                         66,000 
                                                        20148.0 
 
 
     Interim dividend declared subsequent 
        to period end: 
     2016 interim dividend HK5.0 cents per share       20165.0 
                                                                                      41,250 
        (2015: HK7.0 cents)                                                                         57,750 
                                                        20157.0 
 
 
                                                                           2016630 
     The Board has declared that an interim dividend of HK5.0 cents 
                                                                           65.0   2015 
     (2015: HK7.0 cents) per share for the six months ended 30 June 
                                                                           7.02016817 
     2016 to shareholders whose names appear in the Register of 
 
     Members on 17 August 2016. 
 
 
 
 
                                                          12 
 
                                                                                         Interim Report 2016 
 
 
 
 
9.   EARNINGS PER SHARE                                                     9. 
 
     The calculation of the basic earnings per share from attributable to 
     the owners of the Company is based on the following data: 
 
                                                                                        Six months ended 30 June 
                                                                                           6306 
                                                                                             2016           2015 
                                                                                           HK$'000        HK$'000 
 
 
 
     Earnings for the purpose of basic earnings 
                                                                                           119,250 
       per share                                                                                          163,113 
 
 
 
                                                                                         Number of      Number of 
                                                                                            Shares         Shares 
 
 
     Weighted average number of ordinary shares 
                                                                                        825,000,000 
      for the purpose of basic earnings per share                                                     825,000,000 
 
 
 
10. ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT                              10. 
 
     During the period, the Group spent approximately HK$194 million 
     (2015: HK$454 million) on property, plant and equipment to                  1.9420154.54 
     expand its operation. 
 
 
 
 
                                                          13 
 
 
 
 
 
 
 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Interim Results 
 
11. INVENTORIES                                                            11. 
 
                                                                                                At            At 
 
                                                                                        30.06.2016   31.12.2015 
                                                                                          HK$'000       HK$'000 
 
 
 
                                                                                          101,181 
   Raw materials and consumables                                                                       123,889 
 
                                                                                           14,670 
   Work in progress                                                                                     12,044 
 
                                                                                           73,125 
   Finished goods                                                                                       70,782 
 
 
 
                                                                                          188,976      206,715 
 
 
12. TRADE AND OTHER RECEIVABLES                                            12. 
 
   The Group generally allows its trade customers an average credit 
   period ranged from 7 to 60 days.                                           760 
 
   Included in the balance are trade and bills receivables of 
   approximately HK$176,424,000 (31.12.2015: HK$132,322,000).                   176,424,000   31.12.2015 
 
   The aged analysis of trade and bills receivables based on the invoice      132,322,000 
   date at the end of the reporting period is as follows: 
 
                                                                                                At            At 
 
                                                                                        30.06.2016   31.12.2015 
                                                                                          HK$'000       HK$'000 
 
 
 
                                                                                          128,589 
   Not exceeding 30 days                                                                               102,176 
                                                    30 
                                                                                           32,083 
   31 to 60 days                                                                                        17,469 
                                                    3160 
                                                                                            8,515 
   61 to 90 days                                                                                         5,219 
                                                    6190 
                                                                                            7,237 
   Over 90 days                                                                                          7,458 
                                                    90 
 
 
                                                                                          176,424      132,322 
 
                                                                                           94,403 
   Prepayment, Deposit and other receivables                                                            53,105 
 
                                                                                          153,729 
   Value-added tax receivables                                                                         193,779 
 
 
 
                                                                                          424,556      379,206 
 
 
 
 
                                                           14 
 
                                                                                      Interim Report 2016 
 
 
 
 
13. TRADE AND OTHER PAYABLES                                              13. 
 
   Trade and other payables principally comprise amounts outstanding 
   for trade purchases and ongoing costs. The average credit period 
   obtained for trade purchases is 7 to 45 days.                            745 
 
   Included in trade and other payables are trade and bills payables of 
   approximately HK$162,409,000 (31.12.2015: HK$80,707,000).                  162,409,000   31.12.2015 
 
   The aged analysis of trade and bills payables based on the invoice       80,707,000 
   date at the end of the reporting period is as follows: 
 
                                                                                              At            At 
 
                                                                                      30.06.2016   31.12.2015 
                                                                                        HK$'000       HK$'000 
 
 
 
                                                                                        122,287 
   Not exceeding 30 days                                                                               56,757 
                                                    30 
                                                                                         19,806 
   31 to 60 days                                                                                        9,016 
                                                    3160 
                                                                                          3,081 
   61 to 90 days                                                                                        3,188 
                                                    6190 
                                                                                         17,235 
   Over 90 days                                                                                        11,746 
                                                    90 
 
 
                                                                                        162,409        80,707 
 
                                                                                         36,164 
   Receipt in advance                                                                                  41,122 
 
                                                                                        107,108 
   Construction payable                                                                               153,135 
 
                                                                                         59,548 
   Other payables and accruals                                                                         92,428 
 
 
 
                                                                                        365,229       367,392 
 
 
   The balance of construction costs payable comprises non-current 
   construction costs payables of HK$35,104,000 (31.12.2015:                 35,104,000   31.12.2015 
   65,506,000).                                                             65,506,000 
 
 
 
 
                                                        15 
 
 
 
 
 
 
 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Corporate Information 
 
BOARD OF DIRECTORS 
 
Executive directors 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Lee Man Yan (Chief Executive Officer) 
 
Professor Chan Albert Sun Chi (appointed on 9 May 2016)            201659 
 
Mr. Yang Zuo Ning 
Ms. Wong Yuet Ming 
 
Independent non-executive directors 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
Mr. Heng Victor Ja Wei 
 
AUDIT COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
REMUNERATION COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
NOMINATION COMMITTEE 
 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Heng Victor Ja Wei 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
COMPANY SECRETARY 
 
Ms. Wong Yuet Ming 
 
REGISTERED OFFICE 
 
Cricket Square                                                Cricket Square 
Hutchins Drive                                                Hutchins Drive 
P.O. Box 2681                                                 P.O. Box 2681 
Grand Cayman, KY1-1111                                        Grand Cayman, KY1-1111 
Cayman Islands                                                Cayman Islands 
 
 
 
 
                                                          2 
 
                                                                                      Interim Report 2016 
 
 
 
 
HONG KONG OFFICE 
 
8th Floor, Liven House 
61-63 King Yip Street 
Kwun Tong 
Kowloon                                                   61-63 
Hong Kong                                                 8 
 
PRINCIPAL BANKERS 
 
Hong Kong: 
Hang Seng Bank Limited 
The Hongkong and Shanghai Banking Corporation Ltd. 
Mizuho Bank Ltd., Hong Kong Branch 
DBS Bank (Hong Kong) Limited 
Bank of China (Hong Kong) Limited 
 
AUDITORS 
 
Deloitte Touche Tohmatsu 
Certified Public Accountants 
 
PRINCIPAL SHARE REGISTRAR 
 
Royal Bank of Canada Trust Company (Cayman) Limited       Royal Bank of Canada Trust Company (Cayman) Limited 
4th Floor, Royal Bank House                               4th Floor, Royal Bank House 
24 Shedden Road, George Town                              24 Shedden Road, George Town 
Grand Cayman KY1-1110                                     Grand Cayman KY1-1110 
Cayman Islands                                            Cayman Islands 
 
HONG KONG BRANCH SHARE REGISTRAR 
 
Tricor Secretaries Limited 
Level 22, Hopewell Centre 
183 Queen's Road East                                     183 
Hong Kong                                                 22 
 
WEBSITE 
 
http://www.leemanchemical.com                             http://www.leemanchemical.com 
 
 
 
 
                                                      3 
 
 
 
 
 
 

0

0

 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Corporate Information 
 
BOARD OF DIRECTORS 
 
Executive directors 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Lee Man Yan (Chief Executive Officer) 
 
Professor Chan Albert Sun Chi (appointed on 9 May 2016)            201659 
 
Mr. Yang Zuo Ning 
Ms. Wong Yuet Ming 
 
Independent non-executive directors 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
Mr. Heng Victor Ja Wei 
 
AUDIT COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
REMUNERATION COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
NOMINATION COMMITTEE 
 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Heng Victor Ja Wei 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
COMPANY SECRETARY 
 
Ms. Wong Yuet Ming 
 
REGISTERED OFFICE 
 
Cricket Square                                                Cricket Square 
Hutchins Drive                                                Hutchins Drive 
P.O. Box 2681                                                 P.O. Box 2681 
Grand Cayman, KY1-1111                                        Grand Cayman, KY1-1111 
Cayman Islands                                                Cayman Islands 
 
 
 
 
                                                          2 
 
                                                                                      Interim Report 2016 
 
 
 
 
HONG KONG OFFICE 
 
8th Floor, Liven House 
61-63 King Yip Street 
Kwun Tong 
Kowloon                                                   61-63 
Hong Kong                                                 8 
 
PRINCIPAL BANKERS 
 
Hong Kong: 
Hang Seng Bank Limited 
The Hongkong and Shanghai Banking Corporation Ltd. 
Mizuho Bank Ltd., Hong Kong Branch 
DBS Bank (Hong Kong) Limited 
Bank of China (Hong Kong) Limited 
 
AUDITORS 
 
Deloitte Touche Tohmatsu 
Certified Public Accountants 
 
PRINCIPAL SHARE REGISTRAR 
 
Royal Bank of Canada Trust Company (Cayman) Limited       Royal Bank of Canada Trust Company (Cayman) Limited 
4th Floor, Royal Bank House                               4th Floor, Royal Bank House 
24 Shedden Road, George Town                              24 Shedden Road, George Town 
Grand Cayman KY1-1110                                     Grand Cayman KY1-1110 
Cayman Islands                                            Cayman Islands 
 
HONG KONG BRANCH SHARE REGISTRAR 
 
Tricor Secretaries Limited 
Level 22, Hopewell Centre 
183 Queen's Road East                                     183 
Hong Kong                                                 22 
 
WEBSITE 
 
http://www.leemanchemical.com                             http://www.leemanchemical.com 
 
 
 
 
                                                      3 
 
 
 
 
 
 

1

1

 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Corporate Information 
 
BOARD OF DIRECTORS 
 
Executive directors 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Lee Man Yan (Chief Executive Officer) 
 
Professor Chan Albert Sun Chi (appointed on 9 May 2016)            201659 
 
Mr. Yang Zuo Ning 
Ms. Wong Yuet Ming 
 
Independent non-executive directors 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
Mr. Heng Victor Ja Wei 
 
AUDIT COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
REMUNERATION COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
NOMINATION COMMITTEE 
 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Heng Victor Ja Wei 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
COMPANY SECRETARY 
 
Ms. Wong Yuet Ming 
 
REGISTERED OFFICE 
 
Cricket Square                                                Cricket Square 
Hutchins Drive                                                Hutchins Drive 
P.O. Box 2681                                                 P.O. Box 2681 
Grand Cayman, KY1-1111                                        Grand Cayman, KY1-1111 
Cayman Islands                                                Cayman Islands 
 
 
 
 
                                                          2 
 
                                                                                      Interim Report 2016 
 
 
 
 
HONG KONG OFFICE 
 
8th Floor, Liven House 
61-63 King Yip Street 
Kwun Tong 
Kowloon                                                   61-63 
Hong Kong                                                 8 
 
PRINCIPAL BANKERS 
 
Hong Kong: 
Hang Seng Bank Limited 
The Hongkong and Shanghai Banking Corporation Ltd. 
Mizuho Bank Ltd., Hong Kong Branch 
DBS Bank (Hong Kong) Limited 
Bank of China (Hong Kong) Limited 
 
AUDITORS 
 
Deloitte Touche Tohmatsu 
Certified Public Accountants 
 
PRINCIPAL SHARE REGISTRAR 
 
Royal Bank of Canada Trust Company (Cayman) Limited       Royal Bank of Canada Trust Company (Cayman) Limited 
4th Floor, Royal Bank House                               4th Floor, Royal Bank House 
24 Shedden Road, George Town                              24 Shedden Road, George Town 
Grand Cayman KY1-1110                                     Grand Cayman KY1-1110 
Cayman Islands                                            Cayman Islands 
 
HONG KONG BRANCH SHARE REGISTRAR 
 
Tricor Secretaries Limited 
Level 22, Hopewell Centre 
183 Queen's Road East                                     183 
Hong Kong                                                 22 
 
WEBSITE 
 
http://www.leemanchemical.com                             http://www.leemanchemical.com 
 
 
 
 
                                                      3 
 
 
 
 
 
 

2

2

 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Corporate Information 
 
BOARD OF DIRECTORS 
 
Executive directors 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Lee Man Yan (Chief Executive Officer) 
 
Professor Chan Albert Sun Chi (appointed on 9 May 2016)            201659 
 
Mr. Yang Zuo Ning 
Ms. Wong Yuet Ming 
 
Independent non-executive directors 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
Mr. Heng Victor Ja Wei 
 
AUDIT COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
REMUNERATION COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
NOMINATION COMMITTEE 
 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Heng Victor Ja Wei 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
COMPANY SECRETARY 
 
Ms. Wong Yuet Ming 
 
REGISTERED OFFICE 
 
Cricket Square                                                Cricket Square 
Hutchins Drive                                                Hutchins Drive 
P.O. Box 2681                                                 P.O. Box 2681 
Grand Cayman, KY1-1111                                        Grand Cayman, KY1-1111 
Cayman Islands                                                Cayman Islands 
 
 
 
 
                                                          2 
 
                                                                                      Interim Report 2016 
 
 
 
 
HONG KONG OFFICE 
 
8th Floor, Liven House 
61-63 King Yip Street 
Kwun Tong 
Kowloon                                                   61-63 
Hong Kong                                                 8 
 
PRINCIPAL BANKERS 
 
Hong Kong: 
Hang Seng Bank Limited 
The Hongkong and Shanghai Banking Corporation Ltd. 
Mizuho Bank Ltd., Hong Kong Branch 
DBS Bank (Hong Kong) Limited 
Bank of China (Hong Kong) Limited 
 
AUDITORS 
 
Deloitte Touche Tohmatsu 
Certified Public Accountants 
 
PRINCIPAL SHARE REGISTRAR 
 
Royal Bank of Canada Trust Company (Cayman) Limited       Royal Bank of Canada Trust Company (Cayman) Limited 
4th Floor, Royal Bank House                               4th Floor, Royal Bank House 
24 Shedden Road, George Town                              24 Shedden Road, George Town 
Grand Cayman KY1-1110                                     Grand Cayman KY1-1110 
Cayman Islands                                            Cayman Islands 
 
HONG KONG BRANCH SHARE REGISTRAR 
 
Tricor Secretaries Limited 
Level 22, Hopewell Centre 
183 Queen's Road East                                     183 
Hong Kong                                                 22 
 
WEBSITE 
 
http://www.leemanchemical.com                             http://www.leemanchemical.com 
 
 
 
 
                                                      3 
 
 
 
 
 
 

3

3

 
 
LEE & MAN CHEMICAL COMPANY LIMITED 
 
 
Corporate Information 
 
BOARD OF DIRECTORS 
 
Executive directors 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Lee Man Yan (Chief Executive Officer) 
 
Professor Chan Albert Sun Chi (appointed on 9 May 2016)            201659 
 
Mr. Yang Zuo Ning 
Ms. Wong Yuet Ming 
 
Independent non-executive directors 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
Mr. Heng Victor Ja Wei 
 
AUDIT COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
REMUNERATION COMMITTEE 
 
Mr. Heng Victor Ja Wei (Chairman) 
 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
NOMINATION COMMITTEE 
 
Ms. Wai Siu Kee (Chairman) 
 
Mr. Heng Victor Ja Wei 
Mr. Wong Kai Tung, Tony 
Mr. Wan Chi Keung, Aaron BBS JP                               BBS 
 
COMPANY SECRETARY 
 
Ms. Wong Yuet Ming 
 
REGISTERED OFFICE 
 
Cricket Square                                                Cricket Square 
Hutchins Drive                                                Hutchins Drive 
P.O. Box 2681                                                 P.O. Box 2681 
Grand Cayman, KY1-1111                                        Grand Cayman, KY1-1111 
Cayman Islands                                                Cayman Islands 
 
 
 
 
                                                          2 
 
                                                                                      Interim Report 2016 
 
 
 
 
HONG KONG OFFICE 
 
8th Floor, Liven House 
61-63 King Yip Street 
Kwun Tong 
Kowloon                                                   61-63 
Hong Kong                                                 8 
 
PRINCIPAL BANKERS 
 
Hong Kong: 
Hang Seng Bank Limited 
The Hongkong and Shanghai Banking Corporation Ltd. 
Mizuho Bank Ltd., Hong Kong Branch 
DBS Bank (Hong Kong) Limited 
Bank of China (Hong Kong) Limited 
 
AUDITORS 
 
Deloitte Touche Tohmatsu 
Certified Public Accountants 
 
PRINCIPAL SHARE REGISTRAR 
 
Royal Bank of Canada Trust Company (Cayman) Limited       Royal Bank of Canada Trust Company (Cayman) Limited 
4th Floor, Royal Bank House                               4th Floor, Royal Bank House 
24 Shedden Road, George Town                              24 Shedden Road, George Town 
Grand Cayman KY1-1110                                     Grand Cayman KY1-1110 
Cayman Islands                                            Cayman Islands 
 
HONG KONG BRANCH SHARE REGISTRAR 
 
Tricor Secretaries Limited 
Level 22, Hopewell Centre 
183 Queen's Road East                                     183 
Hong Kong                                                 22 
 
WEBSITE 
 
http://www.leemanchemical.com                             http://www.leemanchemical.com 
 
 
 
 
                                                      3 
 
 
 
 
 
 

4

4