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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| China New Energy Limited | LSE:CNEL | London | Ordinary Share | JE00B3RWLF12 | ORD 0.025P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 7.50 | 7.00 | 15.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMCNEL
RNS Number : 0153O
China New Energy Ltd
27 September 2019
27 September 2019
China New Energy Limited ("China New Energy", "CNE", "the Company" or together with its subsidiaries "the Group")
Half-yearly report for the six months to 30 June 2019
The Board of CNE (AIM: CNEL), the AIM quoted engineering and technology solutions provider to the bioenergy sector, presents its unaudited interim results for the six months ended 30 June 2019.
Financial Highlights
-- Revenue of RMB 163.9m (GBP18.5m) (H1 2018: RMB 69.1m (GBP7.8m)), which represents a 137.3% increase over the same period last year
-- Gross profit of RMB 49.9m (GBP5.6m) (H1 2018: RMB 16.1m (GBP1.8m)) -- Net profit of RMB 21.4m (GBP2.4m) (H1 2018: RMB 13.5m (GBP1.5m)) -- Basic earnings per share of RMB 0.048 (0.54p) (H1 2018 RMB 0.030 (0.34p))
RMB 8.8692: GBP GBP1 used as an indicative exchange rate on 20 Sept 2019.
Yu Weijun, Chairman, commented: "I am very pleased to report the Company's remarkably strong interim results, which are a result of completing contracts in the existing order book rolled over from 2018 and new contracts won from companies such as Heilongjiang Hongzhan Bioenergy Co., Ltd and Inner Mongolia Zhongneng Biotechnology Company Limited.
The implementation of the People's Republic of China ("PRC") 13(th) Five Year Plan for Renewable Energy Development continues to drive the ethanol fuel industry. We believe that our advanced technologies and research and development capabilities have given us a competitive edge and allowed us to continue to secure contracts from customers through our provision of ethanol production system technology integrated services in the PRC.
I am very confident about the outlook for the remainder of 2019 and into 2020. During the period, a listing application of the Company, including an application proof of the prospectus (the "Application Proof") of the Company, has been submitted to the Main Board of the Hong Kong Stock Exchange (the "HKEx") on 21 June 2019. The Company's fundamentals and outlook have substantially grown over the last three years, but this is not reflected in the Company's share price on AIM. It is expected that the proposed listing on the HKEx will deliver a better valuation for shareholders and provide the Company with the ability to gain more opportunity to raise capital to expand the business."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please contact:
China New Energy Limited www.chinanewenergy.co.uk Richard Bennett Tel: +44 (0)20 7148 3148 or rbennett@zkty.com.cn Ivy Xu Tel: +86 (0)20 8705 9371 or xuhj@zkty.com.cn Cairn Financial Advisers LLP (NOMAD and Broker) Jo Turner / Sandy Jamieson Tel: +44 (0)20 7213 0880
Chairman's Statement
I am pleased to report that the Group recorded remarkably strong interim results for the six months ended 30 June 2019 and is on track to record its fourth annual consecutive profit after tax ("net profit").
Financial Review
Revenue for the first six months of the year has substantially grown to RMB 163.9 million (H1 2018: RMB 69.1 million), an increase of approximately 137.3% which was due to fulfilling orders rolled over from 2018 and new contracts won during the period mainly due to the continuous growth in demand for ethanol production systems and the ability in securing ethanol fuel projects and alcoholic beverage upgrade projects.
Our net profit increased from RMB 13.5 million (c. GBP1.6 million) for the period H1 2018 to RMB 21.4 million (c. GBP2.4 million) for the period H1 2019, representing an increase of 58.5%.
We have achieved a stable and steady performance in our business operations which was primarily due to the increased market demand as well as the favourable policies introduced by the PRC government, such as: i.) The 13(th) Five Year Plan for Renewable Energy Development clearly demonstrated the intention of the PRC government to vigorously develop the ethanol fuel industry. In September 2017, the PRC government announced a new nationwide ethanol mandate (NEA) that was designated to expand the mandatory use of E10 fuel (gasoline containing 10 percent ethanol) from 12 trial provinces to the entire country by 2020. In addition, the State Council of the PRC executive meeting decided to promote the usage of ethanol fuel in another 14 provinces in addition to the original 12 trial provinces; and ii.) The building of "ecological civilization" is listed as one of the top ten goals of the 13(th) Five Year Plan. Driven by the policies mentioned above, ethanol producers have to replace outdated equipment by investing in more advanced production systems that generate high production efficiency and low pollutant discharge. The necessity for upgrades of manufacturing facilities, replacement of production systems and mass-production trends drive demand for advanced ethanol production system in the alcoholic beverage industry in the PRC. We believe that, with our extensive experience and expertise in ethanol production system industry, we are well positioned to capture growth opportunities in the PRC. For the period ended H1 2019, the major ethanol production system technology integrated services projects for the ethanol fuel industry were with Heilongjiang Hongzhan Bioenergy Co., Ltd, Inner Mongolia Zhongneng Biotechnology Co., Ltd, Heilongjiang Wanlirunda Bioenergy Co., Ltd and for the alcoholic beverage industry were with Fuyu Huihai Wine Industry Co., Ltd, Jilin Xintianlong Industries Co., Ltd, Henan Xinheyang Alcohol Co., Ltd respectively.
The gross profit increased by 209.7% to RMB 49.9 million (c. GBP5.6 million) for the H1 2019 period from RMB 16.1 million (c. GBP1.8 million) for H1 2018. Our overall gross profit margin increased to 30.4% for the H1 2019 period from 23.4% for H1 2018.
Order Book and Contract Backlog
We commenced H1 2019 with a strong order book of RMB 768.1 million (c. GBP86 million). This number includes new contracts to be started and the proportion of anticipated revenue from contracts which have started but not yet completed.
The following table sets forth the movement of backlog of our projects during the year ended 31 December 2018 and for the six months end 2019:
Hot Features
Premium
Year to 31 December Six months to
2018 30 June 2019
RMB'000 RMB'000
Contract value (exclusive of value-added
tax) of the beginning of the year/period 98,565 329,577
Contract value (exclusive of value-added
tax) of new contracts awarded during the
year/period 480,990 602,378
Less:
Revenue recognised during the year/period. (249,978) (163,897)
Total 329,577 768,058
Business
The Group is a leading ethanol production system technology integrated service provider in the PRC. The Group primarily provide integrated services including engineering design, equipment manufacturing, installation and commissioning and subsequent maintenance for the core system of ethanol production system in the ethanol fuel and alcoholic beverage industries in the PRC. In addition, the Group also provided its technology integrated services for other chemical production systems in Canada, Russia, Thailand and other countries.
With thirteen years of operating history, the Company has gained substantial experience and established a solid reputation in terms of advanced technology skills and proven track records in ethanol production system industry in the PRC. According to a recently commissioned report from the China Insights Consultancy Limited, an independent market research and consulting company, we ranked first in terms of revenue with a market share of approximately 7.2%, in the ethanol production system industry in the PRC in 2018.
Research and Development
We have established a solid reputation in terms of advanced technology skills and proven track records in the ethanol production system industry in the PRC. Over the years, we have been devoted to research and development to drive improvement and innovation in technologies to be applied to the core system of the ethanol production system, we intend to continue to invest in our research and development efforts.
As at the date of this report, we had 31 patented technologies, which we have incorporated into our production procedures. In addition, as at the date of this report, the Group has submitted 13 patent registrations in the PRC, one patent application in Brazil and two ongoing research and development projects. We believe our advanced technologies and research and development capabilities have given us a competitive edge and allowed us to continue in securing contracts from customers through our provision of ethanol production system technology integrated services.
Business Strategies
Our goal is to continue to enhance our overall competitiveness and to capture greater market share in the ethanol production system industry and expand our presence to solidify our position as a leading ethanol production system technology integrated service provider in the PRC. To achieve this goal, we intend to pursue the following strategies:
-- continue to maintain our leading market position by undertaking more projects in the PRC; and
-- continue to focus on research and development to strengthen our design and engineering capability.
Whilst the business fundamentals and outlook have substantially grown over the last three years, we are not seeing the value reflected in the Company's share price. This is both causing frustration amongst the Board and investors, as well as making it unattractive for the Company to raise additional capital to expand the business. Our Directors are of the view that we will be better served by listing our shares on the Main Board of the HKEx, conditional upon which we would seek to withdraw our shares from AIM, and we have submitted an application to list the Company's shares on the Main Board of HKEx on 21 June 2019. The Listing Application is currently being vetted by the HKEx.
The HKEx is a larger and more liquid stock market with investors who can more readily understand our business operations and the industry and market we are in. We believe this will better accommodate our growth and, at the same time, increase the investment value of our shares which is expected to be reflected in our medium to long term market valuation. This is expected to lead to an increased share price and offer more opportunity to raise capital. There is no certainty when or if our application will be approved by the listing committee of the board of directors of HKEx. As such, there can be no certainty at this stage that the application to HKEx will be successful. We will continue to stress that we are committed to remaining public and for our shares to be traded on an internationally recognised stock exchange. The Company will keep the market appraised of developments with the application process and the intended withdrawal from AIM during the course of the application process.
Download link for the Listing Application: https://www1.hkexnews.hk/app/sehk/2019/2019062106/documents/sehk201906240017.pdf
Outlook
The Board and I are very optimistic about the remainder of 2019 and the long-term future of CNE. The continuous favourable changes in the PRC ethanol production policies in recent year such as the implementation of the 13(th) Five Year Plan for Renewable Energy Development clearly demonstrated the intention of the PRC government to develop the ethanol fuel industry. We believe that, our advanced technologies and research and development capabilities have given us a competitive edge and allowed us to continue in securing contracts from customers through our provision of high-quality and innovative ethanol production system technology integrated services in the PRC.
I am very confident about the outlook for 2020 and the investment value of our shares which is expected to be reflected in our medium to long term market valuation.
On behalf of the Board, I would like to extend my appreciation to our valued shareholders, supportive business partners and associates, insightful management and dedicated staff for all their contribution and commitment towards the Company. I would also like to thank the Board for their invaluable counsel in steering the Group through this exciting time.
Yu Weijun
Chairman
Consolidated Income Statements
Unaudited Unaudited Audited
Six months to 30 June 2019 Six months to 30 June 2018 Year to 31 December 2018
RMB'000 RMB'000 RMB'000
Revenue 163,897 69,065 249,978
Cost of sales (114,034) (52,922) (177,374)
=========================== =========================== =========================
Gross profit 49,863 16,143 72,604
Selling and marketing expenses (3,477) (2,882) (5,801)
Administrative expenses (14,897) (6,617) (20,218)
(Impairment losses)/ net
reversal of impairment losses
on financial assets and
contract assets (1,871) 2,179 (362)
Other income 791 50 1,685
Other (losses)/gains - net (2,730) (54) 263
=========================== =========================== =========================
Operating profit 27,679 8,819 48,171
Finance income 20 16 22
Finance costs (635) (702) (1,094)
=========================== =========================== =========================
Finance costs-net (615) (686) (1,072)
Profit before income tax 27,064 8,133 47,099
=========================== =========================== =========================
Income tax (expenses)/credits (5,713) 5,372 (1,278)
--------------------------- --------------------------- -------------------------
Profit for the period/year 21,351 13,505 45,821
--------------------------- --------------------------- -------------------------
Profit attributable to Owners of
the Company 21,351 13,505 45,821
--------------------------- --------------------------- -------------------------
Earnings per share for profit
attributable to Owners of the
Company (expressed in RMB per
share)
Basic 0.048 0.030 0.102
=========================== =========================== =========================
Diluted 0.046 0.030 0.102
=========================== =========================== =========================
Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
Six months to 30 June 2019 Six months to 30 June 2018 Year to 31 December 2018
RMB'000 RMB'000 RMB'000
Profit for the period/year 21,351 13,505 45,821
Other comprehensive income
Items that may be reclassified
to profit or loss
- Exchange differences on
translation of foreign
operations (169) (210) (224)
--------------------------- --------------------------- -------------------------
Other comprehensive income for
the period/year, net of tax (169) (210) (224)
Total comprehensive income for
the period/year 21,182 13,295 45,597
--------------------------- --------------------------- -------------------------
Total comprehensive income
attributable to Owners of the
Company 21,182 13,295 45,597
--------------------------- --------------------------- -------------------------
Consolidated Statement of Financial Position
As at 30 June As at 31 December
2019 2018
RMB'000 RMB'000
ASSETS
Non-current assets
Financial assets at fair value through
other comprehensive income 5,000 -
Investment in an associate - -
Property, plant and equipment 8,262 6,457
Land use rights - 2,608
Intangible assets 15,221 12,782
Right-of-use assets 6,846 -
Deferred tax assets 5,883 5,752
============== ==================
41,212 27,599
============== ==================
Current assets
Inventories 7,898 3,661
Contract assets 110,308 88,465
Trade and bills receivables 104,567 103,629
Other receivables and prepayment 60,472 17,980
Restricted cash 1,658 1,230
Cash and cash equivalents 3,140 6,358
============== ==================
288,043 221,323
============== ==================
Total assets 329,255 248,922
============== ==================
EQUITY
Equity attributable to Owners of the
Company
Share capital 1,541 1,541
Other reserves 67,890 67,828
Retained earnings 23,008 1,657
============== ==================
Total equity 92,439 71,026
============== ==================
LIABILITIES
Non-current liabilities
Lease liabilities 3,315 -
============== ==================
Current liabilities
Contract and refund liabilities 10,203 21,028
Bank and other borrowings 15,000 6,540
Convertible notes 12,786 -
Trade payables 72,162 69,250
Other payables 94,818 59,355
Lease liabilities 1,082 -
Current income tax liabilities 27,450 21,723
============== ==================
233,501 177,896
============== ==================
Total liabilities 236,816 177,896
============== ==================
Total equity and liabilities 329,255 248,922
============== ==================
Net current assets 54,542 43,427
-------------- ------------------
Consolidated Statement of Changes in Equity
(Accumulated losses)/retained
Share capital Other reserves earnings Total
RMB'000 RMB'000 RMB'000 RMB'000
Balance at 1
January 2018 1,541 72,273 (44,164) 29,650
Comprehensive
income
- Profit for
the year - - 45,821 45,821
- Other
comprehensive
income - (224) - (224)
================================ ============================== =====================
Total
comprehensive
income for
the year - (224) 45,821 45,597
================================ ================= ============================== =====================
Transactions
with owners,
recognised
directly in
equity
Share-based
payment
expenses - 460 - 460
Buy-back of
shares - (4,681) - (4,681)
================================ ----------------- ==============================
Total
transactions
with owners - (4,221) - (4,221)
================================ ----------------- ============================== =====================
Balance at 31
December 2018 1,541 67,828 1,657 71,026
================================ ================= ============================== =====================
(Unaudited):
Balance at 1
January 2018 1,541 72,273 (44,164) 29,650
Comprehensive
income
- Profit for
the period - - 13,505 13,505
- Other
comprehensive
income - (210) - (210)
Total
comprehensive
income for
the period - (210) 13,505 13,295
Transactions
with owners,
recognised
directly in
equity
Share-based
payment
expenses - 230 - 230
Buy-back of
shares - (4,681) - (4,681)
================================ ------------------------------
Total
transactions
with owners - (4,451) - (4,451)
================================ ================= ------------------------------ =====================
Balance at 30
June 2018 1,541 67,612 (30,659) 38,494
================================
Balance at 1
January 2019 1,541 67,828 1,657 71,026
Comprehensive
income
- Profit for
the period - - 21,351 21,351
- Other
comprehensive
income - (169) - (169)
-------------------------------- ----------------- ------------------------------ ---------------------
Total
comprehensive
income for
the period - (169) 21,351 21,182
-------------------------------- ----------------- ------------------------------ ---------------------
Transactions
with owners,
recognised
directly in
equity
Share-based
payment
expenses - 231 - 231
================================ ================= ============================== =====================
Total
transactions
with owners - 231 - 231
================================ ================= ============================== =====================
Balance at 30
June 2019 1,541 67,890 23,008 92,439
================================ ================= ============================== =====================
Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
Six months to 30 June 2019 Six months to 30 June 2018 Year to 31 December 2018
RMB'000 RMB'000 RMB'000
Cash flows from operating
activities
Cash (used in)/generated from
operations (6,680) 22,790 10,069
Income tax paid (116) (2,910) (3,425)
Interest paid (615) (686) (1,072)
=========================== =========================== =========================
Net cash (used in)/generated
from operating activities (7,411) 19,194 5,572
=========================== =========================== =========================
Cash flows from investing
activities
Purchases of property, plant and
equipment (3,378) (206) (889)
Purchases of intangible assets (2,800) (2,572) (5,954)
Proceeds from disposal of
property, plant and equipment 230 3 3
Investment in financial assets
at fair value through other
comprehensive income (5,000) - -
=========================== =========================== =========================
Net cash used in investing
activities (10,948) (2,775) (6,840)
=========================== =========================== =========================
Cash flows from financing
activities
Proceeds from bank and other
borrowings 13,080 3,300 6,800
Proceeds from convertible notes 10,122 - -
Repayments of bank and other
borrowings (4,620) (1,649) (10,367)
Principal elements of lease
payments (407) - -
Cash advance from related
parties 1,972 4,740 15,404
Repayment to related parties (1,597) (7,133) (11,165)
Payment for listing related
expenses (1,739) - -
Increase in guarantee deposits
for borrowings (1,658) - (1,230)
Net cash generated from/(used
in) financing activities 15,153 (742) (558)
--------------------------- --------------------------- -------------------------
Net (decrease)/increase in cash
and cash equivalents (3,206) 15,677 (1,826)
Cash and cash equivalents at
beginning of period/year 6,358 8,180 8,180
Translation differences on cash
and cash equivalents (12) (237) 4
Cash and cash equivalents at end
of period/year 3,140 23,620 6,358
--------------------------- --------------------------- -------------------------
Notes to the Interim Financial Information - Period ended 30 June 2019
1. General information
The Company was incorporated in Jersey on 2 May 2006 as a public company with limited liability under the Jersey Companies Law. The address of its registered office is at Queensway House, Hilgrove Street, St Helier, Jersey, Channel Islands, JE1 1ES.
The Company is an investment holding company and its subsidiaries are principally engaged in the provision of ethanol production system technology integrated service in the ethanol fuel and alcoholic beverage industries in the PRC.
The Financial Information is presented in Renminbi ("RMB"), unless otherwise stated.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of the consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
2.1 Basis of preparation
The consolidated financial statements of the Group has been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB"), including related interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC").
The consolidated financial statements has been prepared under the historical cost convention, except for certain financial assets and liabilities measured at fair value.
The preparation of the consolidated financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies.
Except as described below, the accounting policies applied are consistent with those of the 2018 financial statements as described therein.
(a) IFRS 16
The Group has adopted IFRS 16 retrospectively from 1 January 2019, but has not restated the comparative reporting periods, as permitted under the specific transitional provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 January 2019.
(i) Adjustments recognised on adoption of IFRS 16
On adoption of IFRS 16, the Group recognised lease liabilities in relation to leases which had previously been classified as 'operating leases' under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate as of January 1, 2019. The lessee's incremental borrowing rate applied to the lease liabilities on 1 January 2019 was 6.53%.
Operating lease commitments disclosed as at 31 December
2018 6,019
Less: short-term leases recognised on a straight-line
basis as expense (423)
------------
5,596
------------
Discounted using the lessee's incremental borrowing
rate of at the date of initial application 4,804
Lease liability recognised as at 1 January 2019 4,804
------------
Of which are:
Current lease liabilities 1,489
Non-current lease liabilities 3,315
------------
4,804
------------
Right-of use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the balance sheet as at 31 December 2018. There were no onerous lease contracts that would have required an adjustment to the right-of-use assets at the date of initial application.
The recognised right-of-use assets relate to properties.
The change in accounting policy affected the following items in the balance sheet on 1 January 2019:
-- land use rights - decreased by RMB 2,608,000 -- right-of-use assets - increased by RMB 7,412,000 -- lease liabilities - increased by RMB 4,804,000
(ii) Practical expedients applied
In applying IFRS 16 for the first time, the Group has used the following practical expedients permitted by the standard:
-- reliance on previous assessments on whether leases are onerous;
-- the accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-term leases; and
-- the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application.
The Group has also elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for contracts entered into before the transition date the Group relied on its assessment made applying IAS 17 and IFRIC 4 Determining whether an Arrangement contains a Lease.
(iii) The Group's leasing activities and how these are accounted for
The Group leases an office, the rental contract for which is made for a fixed period of 5 years. The lease agreement does not impose any covenants, but leased asset may not be used as security for borrowing purposes.
Until the 2018 financial year, payments made under operating leases (net of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the lease.
From 1 January 2019, leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
Right-of-use assets are measured at cost comprising the following:
-- the amount of the initial measurement of lease liability;
-- any lease payments made at or before the commencement date less any lease incentives received;
-- any initial direct costs, and -- restoration costs.
Payments associated with short-term leases are recognised on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
3. Earnings per share
Unaudited Unaudited Audited
Basic earnings per share Six months to 30 June 2019 Six months to 30 June 2018 Year to 31 December 2018
RMB'000 RMB'000 RMB'000
Profit attributable to Owners of
the Company 21,351 13,505 45,821
Weighted average number of
ordinary shares in issue
(thousand shares) 444,448 449,077 449,319
--------------------------- --------------------------- -------------------------
Basic earnings per share 0.048 0.030 0.102
--------------------------- --------------------------- -------------------------
Unaudited Unaudited Audited
Diluted earnings per share Six months to 30 June 2019 Six months to 30 June 2018 Year to 31 December 2018
RMB'000 RMB'000 RMB'000
Profit attributable to Owners of
the Company 21,351 13,505 45,821
Weighted average number of
ordinary shares in issue
(thousand shares) 462,325 449,077 449,319
--------------------------- --------------------------- -------------------------
Dilutive earnings per share 0.046 0.030 0.102
--------------------------- --------------------------- -------------------------
The Company has one category of dilutive potential ordinary shares: share options granted under the Pre-IPO Share Option Scheme for the year ended 31 December 2018 and six months ended 30 June 2018 and 2019. The number of shares that would have been issued assuming the exercise of the share options less the number of shares that could have been issued at fair value (determined as the average market price per share for the year/period) for the same total proceeds is the number of shares issued for no consideration. The resulting number of shares issued for no consideration is included in the weighted average number of ordinary shares as the denominator for calculating diluted earnings per share. The Group has one additional category of dilutive potential ordinary shares for the six months ended 30 June 2019: convertible notes which could be converted into ordinary shares of the Company.
The share options granted under the Pre-IPO Share Option Scheme are not included in the calculation of diluted earnings per share because they are antidilutive for the year ended 31 December 2018 and six months ended 30 June 2018 and 2019. These options could potentially dilute basic earnings per share in the future.
Convertible notes are included in the determination of dilutive earnings per share from their date of issue.
4. Comparative figures
Management revisited the accounting treatments for certain transactions entered into by the Group in previous years and concluded that adjustments are required to be made to the comparative information presented (i.e. consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the six months period ended 30 June 2018). The nature of adjustments are consistent with those disclosed in the consolidated financial statements for the year ended 31 December 2018. In addition, certain reclassification and adjustment related to the adoption of IFRS9 are also made to ensure the comparability with the current period's results. Details of the adjustments are available on the Company's website.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR BSGDCGSDBGCR
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