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HK Bourse: Results Announcement From Chaoda Modern Agriculture (Holdings) Ltd. -3-

28 Feb 2018 10:42 am
 
 
 
     Loss before income tax is arrived at after charging/(crediting): 
 
     (a)   Finance costs 
 
                                                                        Six months ended 31 December 
                                                                                2017             2016 
                                                                            RMB '000         RMB '000 
 
                                                                                  24 
           Bank and finance charges                                                               18 
           Interest on bank loans wholly repayable 
                                                                                   - 
              within five years                                                                   17 
                                                                                  24              35 
 
     (b)   Staff costs 
 
                                                                        Six months ended 31 December 
                                                                                2017             2016 
                                                                            RMB '000         RMB '000 
 
                                                                             144,131 
           Salaries, wages and other benefits                                                 286,232 
                                                                               3,630 
           Employee share option benefits                                                      12,003 
                                                                               2,143 
           Retirement benefit costs                                                             2,444 
                                                                             149,904          300,679 
 
 
 
 
                                                  -6- 
     (c)   Other items 
 
                                                                       Six months ended 31 December 
                                                                               2017             2016 
                                                                           RMB '000         RMB '000 
 
                                                                                 (247) 
           Interest income                                                                          (1,021) 
           Amortisation of deferred expenditure, 
                                                                                5,539 
              net of amount capitalised                                                             49,636 
           Amortisation of prepaid premium for land leases, 
                                                                                5,875 
              net of amount capitalised                                                            31,804 
                                                                              210,831 
           Cost of inventories sold                                                               713,703 
           Depreciation of property, plant and equipment, 
                                                                               61,283 
              net of amount capitalised                                                           178,694 
                                                                                1,983 
           Depreciation of investment properties                                                    1,983 
           Operating lease expense in respect of 
                                                                               26,724 
              land and buildings                                                                    65,071 
 
7.   INCOME TAX EXPENSE 
 
     (a)   No provision for the PRC enterprise income tax has been made in the condensed 
           consolidated financial statements for six months ended 31 December 2017 and 2016 as the 
           PRC companies within the Group either has no assessable profits arising from the PRC or 
           exempt from the enterprise income tax. 
 
           According to the PRC tax law and its interpretation rules (the "PRC Tax Law"), enterprises 
           that engage in qualifying agricultural business are eligible for certain tax benefits, including 
           full enterprise income tax exemption or half reduction of enterprise income tax on profits 
           derived from such business. Fujian Chaoda Modern Agriculture Group Company Limited, 
           the Company's principal subsidiary, and other PRC subsidiaries engaged in qualifying 
           agricultural business, which include the growing and sales of crops and the breeding and 
 
           sales of livestock, are entitled to full exemption of the enterprise income tax. 
 
           The enterprise income tax rate of other PRC subsidiaries of the Company not engaged in 
           qualifying agricultural business is 25% for the six months ended 31 December 2017 and 
           2016. 
 
     (b)   No provision for Hong Kong profits tax has been made as the Company and its subsidiaries 
           operating in Hong Kong either do not derive material estimated assessable profits or have 
           unused tax losses brought forward to offset against the current period's estimated assessable 
           profits for the six months ended 31 December 2017 and 2016. 
 
8.   DIVIDENDS 
 
     The Directors do not recommend the payment of interim dividend for the six months ended 31 
     December 2017 and 2016. 
 
 
 
 
                                                 -7- 
9.    LOSS PER SHARE 
 
      (a)      Basic loss per share 
 
               The calculation of basic loss per share is based on the loss attributable to the owners of the 
               Company of RMB655,410,000 (Six months ended 31 December 2016: RMB1,743,207,000) 
               and the weighted average number of 3,292,902,000 (Six months ended 31 December 2016: 
               3,291,798,000) ordinary shares in issue during the period. 
 
      (b)      Diluted loss per share 
 
               The calculation of diluted loss per share is based on the loss attributable to the owners of the 
               Company of RMB655,410,000 (Six months ended 31 December 2016: RMB1,743,207,000) 
               and the weighted average number of 3,292,902,000 (Six months ended 31 December 2016: 
               3,291,798,000) ordinary shares. The computation of diluted loss per share does not assume 
               the conversion of the Company's share options outstanding since their exercise would result 
               in a decrease in loss per share for the six months ended 31 December 2017 and 2016. 
 
10.   PROPERTY, PLANT AND EQUIPMENT 
 
                                                                            31 December              30 June 
                                                                                   2017                2017 
                                                                               RMB '000             RMB '000 
 
                                                                                  553,438 
      Net book value at 1 July 2017/1 July 2016 (Audited)                                           2,108,972 
                                                                                    4,892 
      Additions                                                                                        31,636 
                                                                                        - 
      Transfer from construction-in-progress                                                           27,545 
      Disposals/Write off (note (a))                                             (408,520)           (371,019) 
                                                                                  (61,814) 
      Depreciation charges                                                                           (277,073) 
                                                                                      (16) 
      Disposal of subsidiaries                                                                        (11,235) 
      Impairment loss (note (b))                                                        -            (955,450) 
                                                                                      (72) 
      Exchange realignment                                                                                 62 
                                                                                   87,908 
      Net book value as at 31 December 2017/30 June 2017                                              553,438 
 
      Notes: 
 
      (a)      During the six months ended 31 December 2017, loss on disposal/write off of approximately 
               RMB408,330,000 due to the early termination of certain farmland areas (During the year 
               ended 30 June 2017: RMB371,019,000). 
 
      (b)      During the year ended 30 June 2017, an impairment loss of approximately RMB808,267,000 
               was recognised during the period ended 31 December 2016 to impair the carrying amount of 
               certain farmland infrastructures of subsidiaries engaged in the growing and sales of crops due 
               to the plan of early termination of certain farmland areas. Subsequent, those farmland areas 
               were fully terminated. In addition, due to the integration of resources to the Group's core 
 
 
 
 

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