LHL_FullYearResults_2013

7/30/2019 LHL_FullYearResults_2013

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FY2013 FY2012 FY2013 FY2012

4thQtr 4thQtr FullYear FullYear

1Apr13to 1Apr12to+/(-)

1Jul12to 1Jul11to

30Jun13 30Jun12 30Jun13 30Jun12

RMB000 RMB000 % RMB000 RMB000

Revenue 1,273,077 755,891 68 3,945,945 2,329,385

Costofsales (1,185,507) (673,763) 76 (3,651,373) (2,110,311)

Grossprofit 87,570 82,128 7 294,572 219,074

Otherincome 721 560 29 6,127 5,732

Distributioncosts (12,817) (6,057) 112 (38,407) (29,963)

Administrativeexpenses (53,683) (45,396) 18 (209,999) (196,394)

Impairmentoftradereceivables

- (71,405) nm - (71,405)Impairmentofother

receivables- (27,000) nm - (27,000)

Equity-settledshare-basedpaymentexpenses

(521) 576 nm 2,909 (773)

Otheroperatingexpenses (2,024) (533) 280 (2,927) (3,349)


2/22

StatementofComprehensiveIncome

FY2013 FY2012 FY2013 FY2012

4thQtr 4thQtr FullYear FullYear

1Apr13to 1Apr12to+/(-)

1Jul12to 1Jul11to

30Jun13 30Jun12 30Jun13 30Jun12

RMB000 RMB000 % RMB000 RMB000

Profit/(loss)forthe

period/year

17,783 (70,397) nm 58,898 (95,560)

Othercomprehensiveincome

Itemsthatmaybereclassifiedsubsequentlytoprofitorloss:

Changeinfairvalueonavailable-for-salefinancialassets

(58) (355) -84 (48) (2,787)

Reclassificationadjustment

- impairmentofavailable-for- - 3,387 nm - 3,387


3/22

, , , ,

(b)Interestincomeonotherreceivables

2,383 1,737 37 8,814 6,811

(c)Interestexpenses (1,611) (3,045) -47 (12,367) (10,369)

(d)Interestonputoptionliability - - nm - (257)

(e)Amortisationoflanduserights (100) (100) nm (399) (399)

(f)Amortisationofotherintangible

assets(1,468) (1,929) -24 (6,116) (7,810)

(g)Depreciationofproperty,plantandequipment

(2,459) (1,762) 40 (11,186) (12,624)

(h)Fairvaluegainoninvestment

properties2,500 218 1,047 2,500 218

(i)Foreignexchange(loss)/gain,net (5,676) (2,570) 121 (6,704) (1,710)

(j)Lossondisposalofproperty,plantandequipment,net

(48) (414) -88 (222) (1,088)

(k)Writeoffofotherintangibleassets (8) (451) -98 (8) (1,678)

(l)Impairmentoftradereceivables - (71,405) nm - (71,405)

(m)Impairmentofotherreceivables - (27,000) nm - (27,000)

(n)Impairmentofavailable-for-salefinancialassets

- (3,387) nm - (3,387)

(o)(Allowance)/writebackfor


4/22

Interestsinassociates 75,041 81,214 - -Available-for-salefinancialassets 3,407 3,538 - -

333,771 347,572 166,893 170,8 CurrentassetsCashanddepositbalances 187,215 119,691 1,589 386Restrictedbankbalancesandpledged

deposits512,687 66,121 - -

Amountsduefromsubsidiaries - - 47,911 53,0 Notereceivables 340,207 285,654 - -Tradereceivables 533,708 235,648 - -Otherreceivables 183,340 159,520 - -Tradedepositspaidtosuppliers 12,293 18,214 - -

Inventories 329,645 102,066 - -

2,099,095 986,914 49,500 53,4 CurrentliabilitiesBankborrowings 78,194 129,334 - -Tradeandbillpayables 1,502,901 453,636 - -Amountsduetosubsidiaries - - 29,259 24,2 Otherpayables 106,302 70,630 2,847 2,78 Tradedepositsreceivedfromcustomers 84,172 36,298 - -Incometaxpayable 6,854 4,886 - -

1,778,423 694,784 32,106 27,0

Netcurrentassets 320,672 292,130 17,394 26,3


5/22

RMB000 RMB000 RMB000 RMB000

- - 38,000 -

DetailsofCollateralforSecuredBorrowings:PledgedbankandstructurebankdepositsofRMB53.

million and corporate guarantees from subsidiaries of the Group and third parties. Meanwhil

subsidiaries of the Group provide guarantees to the third parties with reference to the terms an

conditionsintheguaranteesprovidedbythethirdparties.

1(c) Astatementofcashflow(forthegroup),togetherwithacomparativestatementforth correspondingperiodoftheimmediatelyprecedingfinancialyear.

StatementofCashFlowsfor4thQuarter/YearEnded30June

FY2013 FY2012 FY2013 FY201

4thQtr 4thQtr FullYear FullY

1Apr13to 1Apr12to 1Jul12to 1Jul11

30Jun13 30Jun12 30Jun13 30Jun

RMB000 RMB000 RMB000 RMB0

Cashflowfromoperatingactivities:

Profit/(loss)beforeincometax 21,301 (69,377) 66,986 (95,77


6/22

Operating cash flow before movements inworkingcapital

30,452 37,036 90,447 36,11

Increaseintradeandnotereceivables (116,746) (251,515) (352,613) (255,67

(Increase)/decreaseinotherreceivablesandtradedepositspaidtosuppliers

(1,236) 1,826 (8,675) 6,411

(Increase)/decreaseininventories (30,834) (7,010) (257,433) 7,203

Increaseintradeandbillpayables 89,279 257,057 1,049,265 108,64

Increase/(decrease)inotherpayablesandtradedepositsreceivedfromcustomers

55,531 (45,916) 84,166 (12,06

Cashgeneratedfrom/(usedin)operations 26,446 (8,522) 605,157 (109,3

Interestpaid (2,231) (3,045) (12,987) (10,36

Incometaxpaid 673 (49) (6,120) (2,361

Netcashgeneratedfrom/(usedin)operatingactivities

24,888 (11,616) 586,050 (122,0

Cashflowfrominvestingactivities:

Interestreceived 6,192 1,575 22,491 3,28

Proceeds from disposal of property, plantandequipment

2 6,391 361 54,39

Purchaseofproperty,plantandequipment (2,192) (9,787) (6,012) (56,00

Purchaseofotherintan ibleassets 1 107 273 2 404 3 54


7/22

Cashandcashequivalentsatthebeginningoftheperiod/year

201,579 170,073 119,014 254,21

Effectofforeignexchangeratechanges,net (909) (1,091) (1,363) (28)

Cashandcashequivalentsattheendoftheperiod/year

186,075 119,014 186,075 119,01

Analysisofcashandcashequivalents

Cashandbankdeposits 698,762 185,135 698,762 185,1

Less: Restrictedbankbalancesandpledgeddeposits

(512,687) (66,121) (512,687) (66,12

Cashandcashequivalents 186,075 119,014 186,075 119,01

Fixedbankdepositswithanoriginalmaturityofmorethan3months

1,140 677 1,140 677

Cashanddepositbalances187,215 119,691 187,215 119,6


8/22

arecapital

reasuryshares

arepremium

ap a reserve

ega reserve

awardreserve

lationreserve

re-valuationreserve

assetsrevaluationreserve

e a n e earnings

RMB'000RMB'000RMB'000RMB'000RMB'000RMB'000RMB'000RMB'000 RMB'000 RMB'000 R

Balanceat1Jul2012 65,608 (89,485) 138,818 64,290 69,691 5,345 (53,414) 10,994 - 321,766 5

Arisingfromshareawardplan - - - - - (2,909) - - - - (2Purchaseofnon-controlling

interestsinsubsidiary- - - - - - - - - (3,066) (3

Waiveofdividendbynon-controllinginterests

- - - - - - - - - 8,190 8

Purchaseoftreasuryshares - (746) - - - - - - - - (Transactionswithowners - (746) - - - (2,909) - - - 5,124 1

Profit fortheyear - - - - - - - - - 59,638 5


-Changeinfairvalueonavailable-for-salefinancialassets

- - - - - - - - (48) -

-Currenc translation


9/22

, , , , , , , , , , , ,

Arisingfromshareawardplan - - - - - 773 - - - - - 773 -

Redemptionofputoption - - - - - - - - - 13,477 5,429 18,906 8,6

Purchase of non-controllinginterestsinsubsidiaries

- - - - - - - - - - (18,157) (18,157) (9,5

Transactionswithowners - - - - - 773 - - - 13,477 (12,728) 1,522 (90

Loss fortheyear - - - - - - - - - - (94,793) (94,793) (76 Othercomprehensive

income

-Changeinfairvalueonavailable-for-salefinancialassets

- - - - - - - - (2,787) - - (2,787) --Reclassificationadjustment

-impairmentofavailable-for-salefinancial

- - - - - - 493 - 2,894 - - 3,387 -

l i

i il l l

i i l

i l i i


10/22


-Currencytranslation - - - - (4,427) - (4,427)

Totalcomprehensiveincomefortheyear

- - - - (4,427) (4,859) (9,286)

Balanceat30Jun2013 65,608 (90,231)138,818 2,436 (83,335) 150,991 184,287

Balanceat1Jul2011 65,608 (89,485) 138,818 4,572 (74,159) 164,708 210,062

Arisingfromshareawardplan

- - - 773 - - 773

Transactionswithowners - - - 773 - - 773

Lossfortheyear - - - - - (8,858) (8,858)


-Currencytranslation - - - - (4,749) - (4,749)


11/22

erewere no purc ases, sa es, rans ers, sposa ,cance a on an or use o reasury s are

duringthe3monthsended30June2013.

Asat30June2013,therewere4,399,000(30June2012:3,498,000)shareawardsoutstandin

whichwould result inan issueor transferofanequivalentnumberof shares in theCompany i

performanceconditionsaremet.

DetailsoftheShareAwardPlanareprovidedintheCirculartoshareholdersdated28Septembe

2007. Insummary,theseshareawardswouldvestovera3-yearperiod,andsubjecttoachieveme

of certainperformanceconditions.Shareswouldbe issuedor transferredtosuchparticipants i

accordancewiththeirentitlementsoftheshareawards.

1(d)(iii)Toshowthetotalnumberofissuedsharesexcludingtreasurysharesasattheendofthecurrentfinancialperiodandasattheendoftheimmediatelyprecedingyear.

Asat30Jun13

Asat30Jun12

Issuedshares 396,664,100 396,664,100

Less:Treasuryshares (43,019,250) (42,019,250)

Totalnumberofissuedsharesexcludingtreasuryshares

353,644,850 354,644,850


12/22

6. Earningsperordinaryshareofthegroupforthecurrentfinancialperiodreportedonandth corresponding period of the immediately preceding financial year, after deducting an provisionforpreferencedividends.

FY2013 FY2012 FY2013 FY20124 Qtr 4 Qtr FullYear FullYear

RMBcents RMBcents RMBcents RMBcent

Earnings/(loss)pershare 5.85 (21.26) 16.83 (26.73)

Weightedaveragenumberofshares 353,644,850 354,644,850 354,300,406 354,644,85

There was no dilutive potential ordinary shares. There is no dilution effect from contingentl

issuablesharesarisingfromtheshareawardsasperformanceconditionsforthecurrentfinanci

yearhasnotbeenmet.

7. Netassetvalue(fortheissuerandgroup)perordinarysharebasedonthetotalnumberissuedsharesexcludingtreasurysharesoftheissuerattheendofthe:(a)currentfinanci periodreportedon;and(b)immediatelyprecedingfinancialyear.


13/22

. .

Theincreaseinrevenuewasattributabletoanincreaseof91%intotalshipmentfrom3.48millio unitsinQ4FY12to6.65millionunitsinQ4FY13. Salesof3GsmartphonesinChinaaccountedf 55% of total shipment and 48% of revenue for the current quarter. Shipment for 3G product accountedfor75%oftotalshipmentand85%ofrevenueforQ4FY13.

Averagesellingprices(ASP)ofhandsetsolutionsforQ4FY13decreasedby6%toRMB189.3p unit compared to RMB 201.4 per unit in Q4 FY12. The decrease was due to keen mark competition.

FullYearReview(FY13vs.FY12)

RevenueforFY13increasedbyRMB1.6billionor69%toRMB3.95billioncomparedtoRMB2.3 billionforFY12.

Theincreaseinrevenuewasattributabletoanincreaseof39%intotalshipmentfrom14.17millio unitsinFY12to19.72millionunitsinFY13. Salesof3GsmartphonesinChinaaccountedfor54%totalshipmentand52%ofrevenueforthecurrentyear. Shipmentfor3Gproductsaccountedfor7 oftotalshipmentand84%ofrevenueforFY13.

Averagesellingprices(ASP)ofhandsetsolutionsforFY13increasedby27%toRMB197.9p unitcomparedtoRMB155.9perunitinFY12. ThisisattributabletotheGroupsstrategyofprodu rationalisationwithfocusonhighvalue3Gsmartphones.


14/22

controlovermanpoweralthoughthereissignificantincreaseinshipmentvolume.FullYearReview(FY13vs.FY12)

Operatingexpensescomprising,distributioncostsandadministrativeexpensesincreasedby10 toRMB248.4millioninFY13ascomparedtoRMB226.4millioninFY12duemainlytoincreasei distributioncostsassociatedwithincreaseinbusinessvolumeduringFY13.

As a result of improvement in productivity and efficiency, distribution costs and administrativ expensestorevenueratiodroppedfrom9.72%inFY12to6.30%inFY13byputtingstrictcontr overmanpoweralthoughthereissignificantincreaseinshipmentvolume.

OtherFinancialNetIncome

Otherfinancialnetincomecomprisedof interestincome,interestincomeonotherreceivablean gain/lossinforeignexchange,net.

4thQuarterReview(Q4FY13vs.Q4FY12)

ForeignexchangelossinQ4FY13increasedtoRMB5.7millionfromRMB2.6millioninQ4FY1 InterestincomeincreasedfromRMB3.3millioninQ4FY12toRMB8.8millioninQ3FY14asaresultofincreaseindepositbalancesandinterestincomeonotherreceivable.


15/22

FullYearReview(FY13vs.FY12)

FinancecostsforFY13increasedtoRMB12.4millioncomparedtoRMB10.6millioninFY12. Thi wasmainlyduetoincreaseinfinancecostonissuingbillpayablesanddiscountingnotereceivable inFY13ascomparedtolastyear.

BalanceSheets(30June2013comparedto30June2012)

Property,Plant&Equipment

Property,plantandequipmentamountedtoRMB87.3millionasat30June2013whichismainl

attributabletothefactoryandequipmentattheGroup'smanufacturingbaselocatedinHuizhou.

InvestmentProperties

ThismainlyrelatestotheGroupsinvestmentpropertieslocatedinShanghaiandXian.

InterestsInAssociates

ThismainlyrelatestotheGroupsinvestmentin20%-ownedassociate,Mentech.

RestrictedBankBalancesAndPledgedDeposits


16/22

Inventories

The increase in amount of inventories of RMB 227.6million or 223.0% is mainly due to (i) a increaseinbusinessvolumewithrevenueforFY13increasedtoRMB3.95billionfromRMB2.3 billioninFY12and(ii)increaseincontributionfromdeliveryofcompletehandsetinsteadofPCB Complete handsets normally composes greater portion of materials than for PCBA and henc balanceofinventoriesincreased.

TradeAndBillPayables

TradeandbillpayablesincreasedsignificantlybyRMB1,049.3millionor231.3%mainlydueto(i increaseintradepayablesasaresultofincreaseinprocurementtocopewithincreaseinbusines volume;and(ii)increaseinsettlementusingbillpayableswithmaturityrangedfrom3monthsto

year.Asaresultofthis,thetradepayablesturnoverdaysalsoincreasedduringtheyear.AmountbillpayablesincreasedfromRMB102.2millionasat30June2012toRMB748.4millionasat3 June2013. Forissuanceofbillpayables,theGrouphastoplacedepositswithbanksasrestricte bank balances and pledged deposits, hence balance of restricted bank balances and pledge depositsalsoincreasedfromRMB66.1millionasat30June2012toRMB512.7millionasat3

June2013whichisdiscussedabove.

Asa result of increase insettlementusingbill payables,net finance income (definedas intere incomeexcluding incomeonotherreceivablesover interestexpenses) improved fromRMB -6. millioninFY12toRMB8.1millioninFY13.


17/22

TheGroupreceiveddividendofRMB4.5millionfromanassociateduringthequarter.

Duringthequarter, theGroupdrewdownbankborrowingsofRMB58.2millionandplacedRM 50.9millionassecureddeposits.

FullYearReview

ForFY13,theGrouprecordednetcashgeneratedfromoperatingactivitiesofRMB586.1millio Thisismainlyattributableto(i)profitrecordedduringFY13and(ii)increaseinusingbillpayable withmaturityrangedfrom3monthsto1yearforsettlementofbalancewithsuppliers.Assuchtrad payablesturnoverdaysincreasedandresultingcashinflow.

Duringtheyear, theGrouppaidRMB8.4millionforacquisitionoffixedassetsandplacedRM

445.7millionasrestrictedbankbalancesandpledgeddepositsforissuingbillpayables.

TheGroupreceiveddividendofRMB4.5millionfromanassociateduringtheyear.

To reduce interest expenses, theGroupmadenet repayment of bank borrowings ofRMB88. millionduringFY13.

DuringFY13,theGrouppaidRMB0.7milliontopurchaseitssharesandheldastreasuryshares.

9. Whereaforecast,oraprospectstatement,hasbeenpreviouslydisclosedtoshareholder


18/22

ra ona se sc en e ean execu es r c cos con ro o mprove sopera nge c encyan esse

thepressureongrossprofitmargintocopewiththeintensivemarketcompetition. Barringfroman

unforeseeablecircumstances, theCompanywillbenefitfromthesuccessinproductsandcustomer

rationalizationandresultingprofitability..

Thisreleasemaycontainforward-lookingstatementsthat involve risksanduncertainties. Actu

future performance, outcomes and results may differ materially from those expressed i

forward-looking statements as a result of a number of risks, uncertainties and assumption

Representativeexamplesofthesefactorsinclude(withoutlimitation)generalindustryandeconomi

conditions, interest rate trends, cost of capital and capital availability, competition from oth

companiesandvenuesforthesale/distributionofgoodsandservices,shiftsincustomerdemand

customersandpartners,changesinoperatingexpenses,includingemployeewages,benefitsan

training, and governmental andpublicpolicy changes. You are cautioned not toplace undu

relianceontheseforward-lookingstatements,whicharebasedoncurrentviewofmanagemento

futureevents.

11. Dividends

(a) CurrentFinancialPeriodReportedOn

Anydividenddeclaredforthecurrentfinancialperiodreportedon?

None

b Corres ondin PeriodoftheImmediatel recedin FinancialYear


19/22

mobilehandset,

dataproductsandrelated

servicesProperty

investmentRMB'000 RMB'000

Revenue

Segmentrevenue(externalcustomers) 3,935,819 10,126 3,

Segmentprofit 43,492 12,626

UnallocatedcorporateexpenseOtherfinancialnetincomeEquity-settledshared-basedpayment

expensesFinancecosts (

Profitbeforeincometax

Incometaxexpense


20/22

Otherfinancialassets 3,407

Interestsinassociates 75,041 - 75,041

Othercorporateassets 290,980

2,432,866

Segmentliabilities 1,680,382 12,993 1,693,375Incometaxpayable 6,854

Bankborrowings 78,194

1,778,423

TheGroup'srevenuesfromexternalcustomersaredividedintothefollowinggeographicalareas:

Revenuefromexternalcustomers

FY2013 FY2012

FullYear FullYear

1Jul12to 1Jul11to

30Jun13 30Jun12

RMB000 RMB000


21/22

Salesreportedforfirsthalfyear 1,622,214 1,276,842

Profit/(loss)forfirsthalfyear 22,046 (10,747)

Salesreportedforsecondhalfyear 2,323,731 1,052,543

Profit/(loss)forsecondhalfyear 36,852 (84,813)

16. ABreakdownofthetotalannualdividend(indollarvalue)fortheissuerslatestfullyearan itspreviousfullyear

TotalAnnualDividend

PreviousFullYear

Paid Proposed Total Total

S$000 S$000 S$000 S$000

Ordinary - - - -

17. IftheGrouphasobtainedageneralmandatefromshareholdersforIPTs,theaggregatevalu of such transactions as required under Rule 920(1)(a)(ii). If no IPT Mandate has bee obtained,astatementtothateffect.


22/22

BYORDEROFTHEBOARD

DrDuJunhong

ExecutiveChairman

26August2013

Documents

LHL_FullYearResults_2013