Metal construction segment Other
products materials total operations Eliminations Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
REVENUE
External sales 416,801 519,955 936,756 44,981 - 981,737
Inter-segment sales 4,647 - 4,647 - (4,647) -
Total 421,448 519,955 941,403 44,981 (4,647) 981,737
SEGMENT RESULT 44,992 35,181 80,173 (2,939) 54 77,288
Unallocated other income 2,351
Unallocated corporate expenses (11,111)
Fair value loss on put option derivative (317)
Finance costs (5,760)
Share of result of a joint venture 154
Share of result of an associate (2,050)
Profit before taxation 60,555
The accounting policies of the operating segments are the same as the Group's accounting policies. Segment
result represents the gross profit or loss generated/suffered from each segment, net of selling and distribution
costs and administrative expenses directly attributable to each segment without allocation of certain other
income, corporate expenses, fair value loss on put option derivative, finance costs and share of results of a joint
venture and an associate. This is the measure reported to the chief operating decision makers for the purposes of
resource allocation and performance assessment.
-6-
4. OTHER GAINS AND LOSSES
Six months ended 30th June,
2017 2016
HK$'000 HK$'000
(unaudited) (unaudited)
-
Fair value loss on put option derivative 317
(4,729)
Gain on disposal of property, plant and equipment (269)
(1,570)
Net exchange (gain) loss 2,919
(7,928)
(Reversal of allowance) allowance for bad and doubtful debts, net 1,096
(14,227) 4,063
5. FINANCE COSTS
Six months ended 30th June,
2017 2016
HK$'000 HK$'000
(unaudited) (unaudited)
Interest on:
8,240
Bank borrowings 5,710
35
Finance leases 50
8,275 5,760
(765)
Less: amounts capitalised in the cost of qualifying assets -
7,510 5,760
6. INCOME TAX EXPENSES
Six months ended 30th June,
2017 2016
HK$'000 HK$'000
(unaudited) (unaudited)
The charge comprises:
Current period
6,355
Hong Kong 4,356
3,496
Other regions in The People's Republic of China (the "PRC") 6,789
9,851 11,145
(Overprovision) underprovision in prior years
-
Hong Kong 103
(1,597)
Other regions in the PRC 1,108
(1,597) 1,211
140
Deferred tax 240
8,394 12,596
Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable profit for both periods.
-7-
Under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and Implementation Regulation of the
EIT Law, the tax rate of the PRC subsidiaries is 25%. In addition, a PRC subsidiary of the Company was
qualified as "High-tech Enterprise" in Tianjin. Accordingly, the PRC subsidiary was subject to an Enterprise
Income Tax rate of 15% for futher three years starting from 2016.
The EIT Law requires withholding tax to be levied on distribution of profits earned by a PRC entity to a Hong
Kong resident company (which is the beneficial owner of the dividend received) for profits generated after 1st
January, 2008 at the rate of 5%. As at 30th June, 2017 and 2016, deferred tax was provided for in full in respect
of the temporary differences attributable to such profits.
7. PROFIT FOR THE PERIOD
Six months ended 30th June,
2017 2016
HK$'000 HK$'000
(unaudited) (unaudited)
Profit for the period has been arrived at after charging (crediting):
225
Amortisation of prepaid lease payments 232
18,469
Depreciation of property, plant and equipment 19,239
(11,071)
Reversal of write down of inventories (included in cost of sales) (7,163)
8. DIVIDEND
During the current period, a final dividend of HK3.0 cents per share in respect of the year ended 31st December,
2016 (six months ended 30th June, 2016: HK3.5 cents per share in respect of the year ended 31st December,
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