Capital Environment : Announcements and Notices -

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CAPITAL ENVIRONMENT HOLDINGS LIMITED

首創環境控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 3989) ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

The board of directors (the "Board") of Capital Environment Holdings Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2016.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2016

Six months ended 30 June

NOTES	2016 HK$'000 (unaudited)	2015 HK$'000 (unaudited)
Revenue	4	361,499	446,854
Cost of sales	(282,461)	(360,150)
Gross profit	79,038	86,704
Other income, gains and losses	5	8,985	1,517
Administrative expenses	(82,864)	(68,626)
Gain on fair vale change of warrants	-	79
Share of results of associates	2,020	5,277
Finance costs	6	(25,516)	(42,798)
Loss before tax	(18,337)	(17,847)
Income tax (expense) credit	7	(6,772)	1,236
Loss for the period	8	(25,109)	(16,611)

Six months ended 30 June 2016 2015

NOTE HK$'000 HK$'000

(unaudited) (unaudited) Other comprehensive (expense) income: Items that will not be reclassified to profit or loss:

Exchange differences on translation:

Exchange difference arising during the period (48,296) 659

Exchange difference arising from associates

during the period (2,288) 13

Item that may be subsequently reclassified to profit or loss:

Fair value loss on available-for-sale investments	(33,494)	-
Other comprehensive (expense) income for the period	(84,078)	672
Total comprehensive expense for the period	(109,187)	(15,939)
(Loss) profit for the period attributable to: Owners of the Company	(25,967)	(20,724)
Non-controlling interests	858	4,113
(25,109)	(16,611)
Total comprehensive (expense) income for the period attributable to: Owners of the Company	(106,320)	(20,645)
Non-controlling interests	(2,867)	4,706
(109,187)	(15,939)
LOSS PER SHARE	10
Basic	HK(0.27) cents	HK(0.36) cents
Diluted	HK(0.27) cents	HK(0.36) cents

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 June 2016

NOTES	30 June 2016 HK$'000 (unaudited)	31 December 2015 HK$'000 (audited)
Non-current assets Property, plant and equipment	136,764	121,472
Intangible assets	477,934	411,151
Goodwill	21,035	21,035
Prepaid lease payments	84,994	87,637
Amounts due from grantors for contract work	11	1,317,023	1,155,168
Available-for-sale investments	71,359	103,207
Interests in associates Deposits paid for construction of infrastructure in service concession arrangements	12	116,152 68,008	114,372 63,043
Deposits, prepayments and other receivables	56,802	65,244
Deferred tax assets	10,365	11,475
Amount due from an associate	7,254	-
2,367,690	2,153,804
Current assets Inventories	14	18,659	31,137
Trade receivables	13	400,659	317,560
Deposits, prepayments and other receivables	120,306	82,262
Amounts due from grantors for contract work	11	74,859	52,742
Prepaid lease payments	1,626	1,997
Amount due from an associate	42,082	42,919
Bank balances and cash	924,319	1,201,352
1,582,510	1,729,969
Assets classified as held for sale	15	308,310	308,037
1,890,820	2,038,006
Current liabilities Trade payables	16(a)	82,882	25,934
Other payables and accruals	16(b)	171,559	156,613
Provisions	936	955
Deferred income	1,638	1,671
Taxation payable	40,702	41,304
Borrowings	17	450,607	458,723
Liabilities associated with assets classified	748,324	685,200
as held for sale	15	135,101	132,964
883,425	818,164
Net current assets	1,007,395	1,219,842
Total assets less current liabilities	3,375,085	3,373,646

NOTE	30 June 2016 HK$'000 (unaudited)	31 December 2015 HK$'000 (audited)
Deferred income 44,111				45,585
Borrowings	17	560,052	479,452
Deferred tax liabilities	26,602	21,664
630,765	546,701
2,744,320	2,826,945
Share capital 975,315				975,315
Reserves	1,517,371	1,623,691
Equity attributable to owners of the Company	2,492,686	2,599,006
Non-controlling interests	251,634	227,939
2,744,320	2,826,945

Non-current liabilities Capital and reserves