New World Department Store China : ANNUAL RESULTS ANNOUNCEMENT 2016/2017

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ANNUAL RESULTS ANNOUNCEMENT 2016/2017

HIGHLIGHTS

Same-store sales(1)growth for the year was 0.7% which reverses the downtrend as compared with -8.9% in the Previous Year.

Revenue for the year was HK$3,484.3 million compared with HK$3,659.9 million in the Previous Year.

Operating profit for the year increased to HK$277.8 million from HK$209.7 million in the Previous Year, with year-on-year growth of approximately 32.5%.

Profit for the year increased to HK$128.3 million from HK$45.4 million in the Previous Year, with year-on-year growth of approximately 182.6%.

Earnings per share increased by 166.7% to HK$0.08 from the Previous Year.

(1) Same-store sales calculation reflects the gross sales proceeds and the adjustment of the operational strategy for the stores in operation.

ANNUAL RESULTS FOR THE YEAR ENDED 30 JUNE 2017

The board of directors (the "Board" or "Directors") of New World Department Store China Limited (the "Company") is pleased to announce the audited annual results of the Company and its subsidiaries (together, the "Group") for the year ended 30 June 2017 as follows:

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2017
Note	2017 HK$'000	2016 HK$'000
Revenue	2	3,484,322	3,659,896
Other income	3	192,758	170,424
Other losses, net	4	(76,920)	(25,164)
Changes in fair value of investment properties	(6,591)	(25,437)
Purchases of and changes in inventories, net	(788,333)	(756,036)
Employee benefit expense	(623,154)	(633,223)
Depreciation and amortisation	(261,492)	(300,730)
Operating lease rental expense	(1,051,935)	(1,163,895)
Other operating expenses, net	5	(590,814)	(716,135)
Operating profit	277,841	209,700
Finance income	36,364	67,240
Finance costs	(24,069)	(38,031)
Finance income, net	12,295	29,209
290,136	238,909
Share of results of associated companies	416	(130)
Profit before income tax	290,552	238,779
Income tax expense	6	(162,263)	(193,381)
Profit for the year	128,289	45,398
Attributable to: Shareholders of the Company	128,611	45,643
Non-controlling interests	(322)	(245)
128,289	45,398
Earnings per share attributable to shareholders of

the Company for the year

(expressed in HK$ per share)

- Basic and diluted 8 0.08 0.03

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2017

2017 2016

HK$'000 HK$'000

Profit for the year 128,289 45,398

Other comprehensive income

Items that will not be reclassified to profit or loss

Fair value loss on equity instrument at fair value through

other comprehensive income (16,376) - Revaluation of properties upon reclassification from

property, plant and equipment and land use rights to investment properties	1,826	20,113
- Deferred income tax thereof	(456)	(5,028)
(15,006)	15,085
Items that may be reclassified subsequently to profit and loss Fair value loss on available-for-sale financial asset	-	(4,399)
Translation differences	(98,462)	(405,776)
(98,462)	(410,175)
Other comprehensive income for the year, net of tax	(113,468)	(395,090)
Total comprehensive income for the year	14,821	(349,692)
Attributable to: Shareholders of the Company	15,147	(349,454)
Non-controlling interests	(326)	(238)
14,821	(349,692)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

Note	2017 HK$'000	2016 HK$'000
Assets Non-current assets Property, plant and equipment	1,278,071	1,482,758
Investment properties	4,528,348	4,567,522
Land use rights	627,466	671,759
Intangible assets	1,718,333	1,748,725
Interests in associated companies	1,619	361
Other non-current assets	9	627,848	616,336
Prepayments, deposits and other receivables Financial asset at fair value through other comprehensive income	291,264 19,331	332,816 -
Available-for-sale financial asset	-	35,893
Financial asset at fair value through profit or loss	4,695	9,040
Deferred income tax assets	134,713	150,866
9,231,688	9,616,076
Current assets Inventories	221,332	231,117
Debtors	10	106,053	114,183
Prepayments, deposits and other receivables	525,352	542,733
Amounts due from fellow subsidiaries	4,069	2,842
Amounts due from related companies	106	2,210
Fixed deposits	132,621	39,269
Cash and cash equivalents	2,003,676	1,163,409
2,993,209	2,095,763
Total assets	12,224,897	11,711,839
Equity and liabilities Equity Share capital	168,615	168,615
Reserves	5,759,367	5,744,224
Shareholders' funds	5,927,982	5,912,839
Non-controlling interests	(48)	(4)
Total equity	5,927,934	5,912,835