E193243A ZJ United 1. - zjuv8366.com fileThis announcement, for which the Directors of the Company...

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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

ZHEJIANG UNITED INVESTMENT HOLDINGS GROUP LIMITED浙江聯合投資控股集團有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8366)

ANNOUNCEMENT OF FIRST QUARTERLY RESULTSFOR THE THREE MONTHS ENDED 31 JULY 2019

CHARACTERISTICS OF THE GEM (“GEM”) OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE “STOCK EXCHANGE”)

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

This announcement, for which the directors (the “Directors”) of Zhejiang United Investment Holdings Group Limited (the “Company”) collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the “GEM Listing Rules”) for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

The board (the “Board”) of directors (the “Directors”) of Zhejiang United Investment Holdings Group Limited (the “Company”) is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (together, the “Group”) for the three months ended 31 July 2019. This announcement, containing the full text of the First Quarterly Report 2019 of the Company, complies with the relevant requirements of the GEM Listing Rules in relation to information to accompany preliminary announcements of first quarterly results.

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By order of the BoardZHEJIANG UNITED INVESTMENT HOLDINGS GROUP LIMITED

Zhou YingChairman

Hong Kong, 10 September 2019

As at the date of this announcement, the executive Directors are Mr. Zhou Ying and Ms. Meng Ying, the independent non-executive Directors are Mr. Zheng Xuchen, Mr. Wong Man Hin, Raymond and Mr. Tsui Chung Ho.

This announcement will remain on the website of the GEM of The Stock Exchange of Hong Kong Limited at www.hkgem.com on the “Latest Company Announcements” page for at least 7 days from the date of its posting. This announcement will also be published and remains on the website of the Company at http://www.zjuv8366.com.

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE “STOCK EXCHANGE”)

GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors.

Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss however arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors (the “Director(s)”) of Zhejiang United Investment Holdings Group Limited (the “Company”) collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM (the “GEM Listing Rules”) for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

CONTENTSPages

Financial Highlights 3Management Discussion and Analysis 4Disclosure of Interests 9Other Information 11Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)

14

Condensed Consolidated Statement of Changes in Equity (Unaudited)

15

Notes to the Condensed Consolidated Financial Statements

16

03First Quarterly Report 2019

FINANCIAL HIGHLIGHTS

• Revenue amounted to approximatelyHK$36.1million for the threemonths ended 31 Ju ly 2019 ( the “Report ing Per iod” ) (2018: approx imate ly HK$25.9 mi l l ion ) , represent ing an increase o fapproximately39.5%ascomparedwith thecorrespondingperiodof lastyear.

• Lossattributable toequityholdersof theCompany for the threemonthsended31 July2019amounted toapproximatelyHK$3.3million (2018:approximatelyHK$3.7million).

• BasiclosspershareamountedtoapproximatelyHK0.21centsforthethreemonthsended31July2019(2018:approximatelyHK0.26cents).

• TheBoarddoesnot recommend thepaymentofdividend for the threemonthsended31July2019(2018:Nil).

04 Zhejiang United Investment Holdings Group Limited

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS REVIEW AND OUTLOOKTheGroup is a contractor principally engaged in undertaking slopeworks,foundationworksandothergeneralbuildingworks inHongKong.Slopeworksgenerally refer to landslip preventive and remedialworks for improving ormaintaining the stabilityof slopesand/or retainingwalls.Foundationworksaregenerallyconcernedwiththeconstructionoffoundations.Generalbuildingworksmainlyincludethegeneralconstructionofbuildings.FraserConstructionCompanyLimited,ourprincipaloperatingsubsidiary, isanapprovedspecialistcontractorincludedintheListofApprovedSpecialistContractorsforPublicWorksmaintainedby theDevelopment Bureau of theGovernment of theHongKong SpecialAdministrativeRegion (the“Hong Kong Government“)under thecategoriesof“LandslipPreventive/RemedialWorkstoSlopes/RetainingWalls”withaconfirmedstatusand“LandPiling(GroupII)”.Beingonsuchlistisaprerequisitefortenderingforpublic sectorprojects in the relevantworkscategories. Inaddition, FraserConstructionCompany Limited is registered under theBuildingsOrdinance(Chapter123of theLawsofHongKong)asa (i)RegisteredSpecialistContractorunder the sub-register of “Site FormationWorks” and “FoundationWorks”categories;and(ii)RegisteredGeneralBuildingContractor.

HongKongconstructioncompaniesare facing toughercompetitivecondition,aswellas theslowerprogressof scrutinising the fundingproposals forpublicworksprojectsby theFinanceCommitteeand thePublicWorksSubcommitteedue topolitical and social chaos inHongKong. TheGroup has also been facingchallenging operating environment resulting from increasing costs of operation including,inparticular,highersubcontractingrate.Assuch,theDirectorsconsiderthatcompetitioninthemarkethasbecomemoreintenserecently.

Nevertheless,webelievethattheHongKongGovernment’scontinuingincreaseinmajorconstructionand infrastructureprojects inHongKongwill increase thedemand for slopeworksbecauseof thecontinued implementationof the“TenMajor InfrastructureProjects”and the fact thatslopeworksaredirectly related topublic safety.TheHongKongGovernment stillmaintain its stand to launcharollingLandslipPreventionandMitigationProgrammetosystematicallydealwiththelandslideriskassociatedwithbothman-madeslopesandnaturalhillsides.Thestandenable steady flowof slopesconstructionworks load to theconstructionindustry.All inall, theDirectors remaincautiouslyoptimisticabout the slopeworksindustryinHongKong.


On4April2019, theCompanyhasentered intoa letterof intentwithHengjiWeiyeInvestmentDevelopmentGroupCo.,Ltd.(“Hengji”)* (恒基偉業投資發展集團有限公司) forthepurposeof,interalia,possiblestrategiccooperationregardingestablishinga jointventurecompanytodevelopspecialequipmentbasedonfifthgenerationwireless communication technology (“5G Network Technology”).Duringtheperiodended31July2019,ajointventurecompanywasformedinthePeople’sRepublicofChina(the“PRC”).

On 24May 2019, the Company entered into relevant license and serviceagreementswitha largeworld-renowned ICchipsupplier to redevelopsoftwaresandbecomeoneof thepioneersengaged in themassproductionof5GMobileBroadband(“5G MBB”)products.

On31May2019,theCompanyhasenteredintoastrategiccooperationframeworkagreementwithanindependentparty,BeijingBaicellsTechnologyCo.Ltd.*(北京佰才邦技術有限公司) (the“Beijing Baicells”),which isprincipallyengaged in thebusinessoftechnologyservicesinthePRC.

For the abovementionedprojects, please refer to theCompany’s voluntaryannouncementdated4April2019,24May2019and31May2019accordinglyformoredetails.

On24April2019, theCompanyenteredintoaplacingagreementwithaplacingagent(“Placing Agent”),pursuanttowhichtheCompanyhasconditionallyagreedtoplace, through thePlacingAgent,onabest effortbasis,up to137,200,000placing shares tonot less than six independentplaceesat theplacingpriceofHK$0.365perplacingshare.

Thegrossproceeds from theplacing (“Placing”)wasapproximatelyHK$50.1million and the net proceeds from the Placing (after deducting the placing commission for thePlacing andother relevant expenses)was approximatelyHK$49.0million.Thenetproceeds from thePlacingwillbeutilized forgeneralworkingcapitaloftheGroupandfinancingtheexpansionofthe5Gbusiness,thefuture expansion of the existing construction business and future businessopportunity.ThePlacingwascompleted8May2019.DetailsofthePlacingaresetoutintheannouncementoftheCompanydated8May2019.


Looking forward, theGroupanticipates that theHongKongconstructionmarketwill remainchallengingwith rising trend in subcontractingcostsand intensivecompetition,whichisexpectedtocontinuetoplacerepeatedpressureonourprofitmargin.Tocopewiththeimpactofthistoughconditions,theGrouphasinitiatedtoexpand itsconstructionbusiness in thePRC. Inorder toenhanceanddiversifytheGroup’sbusinessprospect, theGroup is seekingor suitableopportunities(including acquisitions or cooperation opportunities) in the telecommunication industryespecially indeveloping5GNetworkTechnologyand relatedservices.Duetothepopularityofmobilecommunications,theGroupisoptimisticabouttheprospectsof the telecommunication industryandhope that the telecombusinesscanbecomeoneof thecorebusinessesof theGroup. In the longrun, theGroupaimsatextending itsconstruction,building telecommunicationespecially in5GNetworkTechnologyand relatedbusiness in thePRCaswellas the localHongKongmarkettoenhancevaluestoourshareholders.TheBoardconsidersthatthesestrategicinitiativeswillenabletheGrouptobroadenitsincomestreamsandassetbase,thuscontributingtofuturedevelopmentandgrowthoftheGroup.

FINANCIAL REVIEW

RevenueTheGroup’soverall revenue increasedbyapproximatelyHK$10.2millionorapproximately39.5%fromapproximatelyHK$25.9million for the threemonthsended31July2018toapproximatelyHK$36.1millionforthethreemonthsended31July2019.Theincreaseinrevenuewasmainlyduetotheincreaseinrevenuederived fromundertakingslopeworksand foundationworks,as furtherdiscussedbelow.

TheBoard regards theGroup’sbusinessof constructionas a singleoperatingsegmentandreviewstheoverallresultsoftheGroupasawholetomakedecisionabout resources allocation.Accordingly, no segment analysis information ispresented.Noseparateanalysisofsegmentinformationbygeographicalsegmentispresented as theGroup’s revenue and non-current assets are principallyattributable toa singlegeographical region,which isHongKong.TheGroup’sprincipaloperatingactivitiesduring the threemonthsended31 July2019areasfollows:


Slopeworks:Undertakinglandslippreventiveandremedialworksforimprovingormaintainingthestabilityofslopesand/orretainingwalls.Revenuefromundertakingslopeworks increased fromapproximatelyHK$21.7million for the threemonthsended31July2018toapproximatelyHK$31.8millionforthethreemonthsended31 July2019, representingan increaseofapproximately46.7%.The increase inrevenuewasprimarilyattributable toahighernumbersof slopeworksprojectsparticipatedforthethreemonthsended31July2019.

Foundationworks:Undertakingworksinrelationtotheconstructionoffoundationsforgeneralbuildingconstruction.Revenue fromundertaking foundationworksslightly increasedfromapproximatelyHK$4.2million for the threemonthsended31July2018toapproximatelyHK$4.3millionforthethreemonthsended31July2019,representinganincreaseofapproximately2.3%.

Gross Profit and Gross Profit MarginTheGroup’s gross profit decreased by approximatelyHK$0.3million orapproximately34.6% fromapproximatelyHK$0.8million for the threemonthsended31 July2018toapproximatelyHK$0.5million for the threemonthsended31 July2019and theGroup’sgrossprofitmargindecrease fromapproximately2.9%forthethreemonthsended31July2018toapproximately1.4%forthethreemonthsended31July2019.Thedecreaseingrossprofitmarginwasmainlyduetoahighersubcontractingrateandoverallconstructioncostsfortheexistingprojectsas a result of the tougher competitive conditions and challenging operating environmentintheHongKongconstructionmarket.

TheGroup’s direct costs increased by approximatelyHK$10.5million orapproximately41.7%fromapproximatelyHK$25.1million for the threemonthsended31July2018toapproximatelyHK$35.6millionforthethreemonthsended31 July2019.Such increasewasmainlyattributable to the increase inamountofworksperformedresultingintheincreaseinoursubcontractingcharges.

Other IncomeTheGroup’sother income increased fromapproximatelyHK$0.6million for thethreemonthsended31 July2018 toapproximatelyHK$0.8million for the threemonthsended31July2019.TheincreaseintheGroup’sotherincomemainlyduetotheincreaseinsundryincomeforthethreemonthsended31July2019whilenosuchitemsreportedincorrespondingperiodlastyear.


Administrative ExpensesTheGroup’sadministrativeexpensesdecreasebyapproximatelyHK$0.5millionorapproximately10.8% fromapproximatelyHK$5.0million for the threemonthsended31 July2018toapproximatelyHK$4.5million for the threemonthsended31 July2019.Thedecrease in theGroup’sadministrativeexpenseswasprimarilyduetothedecreaseinlegalandprofessionalfee.

Net LossAsaresultoftheforegoingcombinedeffectsoftheabove,thelossattributabletoequityholdersforthethreemonthsended31July2019wasapproximatelyHK$3.3millionascomparedtoapproximatelyHK$3.7millionforthethreemonthsended31July2018.


DISCLOSURE OF INTERESTS

DIRECTORS’ AND CHIEF EXECUTIVE’S INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURESAsat31 July2019, the interests and shortpositionsof theDirectorsor chiefexecutiveof theCompany in shares,underlying shares anddebenturesof theCompanyoranyof itsassociatedcorporations (within themeaningofPartXVoftheSecuritiesandFuturesOrdinance(Chapter571ofthelawsofHongKong)(the“SFO”)whichwerenotified to theCompanyand theStockExchangepursuant toDivisions7and8ofPartXVof theSFO (including interestsandshortpositionswhichanysuchdirectororchiefexecutiveistakenordeemedtohaveundersuchprovisionsoftheSFO)orwhichwererequiredpursuanttosection352oftheSFO,tobeenteredintheregisterofmembersoftheCompany,orwhichwererequired,pursuanttostandardofdealingsbyDirectorsastotheListingRules,tobenotifiedtotheCompanyandtheStockExchangewereasfollows:

(i) Long position in the Company’s Shares

Name of Director Capacity/Nature

Number of shares held/

interested

Approximate percentage of shareholding

Mr.ZhouYing Interest of a controlled corporation

1,080,000,000 68.48%

Note:

Mr.ZhouYingbeneficiallyowns theentire issued sharecapitalofCentury InvestmentHoldings Limited,whichwhollyowns the shares inUnited FinancialHoldingsGroupLimited.Therefore,Mr.ZhouYingisdeemedortakentobeinterestedinallthesharesoftheCompanyheldbyUnitedFinancialHoldingsGroupLimitedforthepurposeoftheSFO.


(ii) Long position in the shares of associated corporations

Name of Director

Name of associatedCorporation Capacity/ Nature


interestedPercentage of shareholding

Mr.ZhouYing United Financial Holdings Group Limited

Beneficialowner 1,000,000 100%

Century Investment Holdings Limited

Interest of a controlled corporation

1 100%

Note:

Mr.ZhouYingbeneficiallyowns theentire issued sharecapitalofCentury InvestmentHoldings Limited,whichwhollyowns the shares inUnited FinancialHoldingsGroupLimited.Therefore,Mr.ZhouYingisdeemedortakentobeinterestedinallthesharesoftheCompanyheldbyUnitedFinancialHoldingsGroupLimitedforthepurposeoftheSFO.

SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS’ INTERESTS AND SHORT POSITIONS IN SHARES, UNDERLYING SHARES AND DEBENTURESAsat31July2019,sofarasisknowntotheDirectors,thefollowingpersons(notbeingaDirectororchiefexecutiveoftheCompany)hadinterestsorshortpositionsin thesharesorunderlyingsharesof theCompanywhichweredisclosed to theCompanyandtheStockExchangeundertheprovisionsofDivisions2and3ofPartXVof theSFOorwere required tobeentered in the registermaintainedby theCompanypursuanttoSection336oftheSFO:

Name Capacity/nature


interested

Approximate percentage of shareholding

United Financial Holdings Group Limited

Beneficialowner 1,080,000,000 68.48%

Century Investment Holdings Limited

Interest of a controlled corporation

1,080,000,000 68.48%


OTHER INFORMATION

COMPETING INTERESTSNoneof theDirectors, thecontrollingshareholdersandsubstantial shareholders,neither themselves nor their respective associates (as defined in the GEM Listing Rules)hadheldanypositionorhad interest inanybusinessesorcompanies thatwereormightbemateriallycompetingwiththebusinessoftheGroup,orgaverisetoanyconcern regardingconflictof interestsduring the threemonthsended31July2019.

PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIESDuring the threemonthsended31 July2019andup to thedateof this report,neither theCompanynoranyof itssubsidiarieshadpurchased,soldorredeemedanyoftheCompany’ssecurities.

DISCLOSURE OF CHANGES IN INFORMATION OF DIRECTORPursuant to Rule 17.50A(1) of theGEMListingRules, change inDirectors’informationsincethedateoftheAnnualReport2019issetoutbelow:

Mr.TsuiChungHo (“Mr. Tsui”)hasbeenappointedas an independentnon-executiveDirector,amemberofauditcommitteeand thechairmanofeachofremunerationcommitteeand legalcompliancecommitteeof theCompany,witheffectfrom31August2019.

GiventhatMr.Tsuihasbeenappointedasanindependentnon-executiveDirector,amemberofauditcommitteeandthechairmanofeachofremunerationcommitteeandlegalcompliancecommitteeoftheCompanywitheffectfrom31August2019,(i)the Company has three independent non-executiveDirectors, and is incompliancewiththerequirementsunderRule5.05oftheGEMListingRules;(ii)theaudit committee of theCompany is comprised of threemembers, and is incompliancewiththerequirementsunderRule5.28of theGEMListingRules;and(iii)theremunerationcommitteeoftheCompanyischairedbyanindependentnon-executiveDirector,andisincompliancewiththerequirementsunderRule5.34oftheGEMListingRules.


CORPORATE GOVERNANCE CODEDuringthethreemonthsended31July2019anduptothedateofthisreport,theCompanyhas compliedwith theapplicablecodeprovisionsof theCorporateGovernanceCode(the“CG Code”)containedinAppendix15oftheGEMListingRulessaveforthedeviationfromcodeprovisionA.2.1explainedbelow.

SincetheCompanyhasappointedMr.ZhouYingaschairmanandchiefexecutiveofficer,therolesofthechairmanandchiefexecutiveofficerarenotseparatedandperformedbytwodifferentindividuals.

TheBoardbelieves that thevestingof the rolesofchairmanandchiefexecutiveofficer inMr.Zhou isbeneficial to thebusinessoperationsandmanagementofGroup andwill provide a strong and consistent leadership to theGroup. Inaddition,duetothepresenceofthreeindependentnon-executiveDirectorswhichrepresentmajorityof theBoard, theBoardconsiders that there isabalanceofpowerandauthoritysuchthatnooneindividualhasunfetteredpowerofdecision.Accordingly, theCompanyhasnotsegregated the rolesof itschairmanandchiefexecutiveofficerasrequiredbyCodeProvisionA.2.1ofAppendix15totheGEMListingRules.

CODE OF CONDUCT REGARDING SECURITIES TRANSACTIONS BY DIRECTORSThe Group has adopted a code of provisions of conduct regarding securities transactionsby theDirectors the (“Code of Conduct”)on termsno lessexactingthan the requiredstandardsofdealingssetout inRules5.48 to5.67of theGEMListingRules.HavingmadespecificenquirieswiththeDirectors,allDirectorshaveconfirmedthattheyhavecompliedwiththerequiredstandardssetoutintheCodeofConductduringthethreemonthsended31July2019anduptothedateofthisreport.

DIVIDENDSTheBoarddidnot recommendanypaymentofdividend for the threemonthsended31July2019(2018:Nil).


SHARE OPTION SCHEMETheCompanyhasconditionallyadopteda shareoptionschemeon15October2015 (the “Scheme”). The terms of the Scheme are in accordancewith theprovisionsofChapter23oftheGEMListingRules.

NoshareoptionhasbeengrantedsincetheadoptionoftheSchemeandtherewasnoshareoptionoutstandingasat31July2019.

AUDIT COMMITTEETheCompanyestablished theAuditCommitteeon14October2015withwrittentermsof referenceandamendedwitheffect from1 January2019 incompliancewith theGEMListingRuleswhichare availableon thewebsitesof the StockExchangeand theCompany.TheAuditCommitteecurrently consistsof threeindependentnon-executiveDirectors,namelyMr.ZhengXuchen,Mr.WongManHin,RaymondandMr.TsuiChungHo.Thechairmanof theAuditCommittee isMr.WongManHin,Raymond,whohasappropriateprofessionalqualificationsandexperienceinaccountingmatters.

TheAuditCommitteehadreviewedtheunauditedcondensedconsolidatedresultsoftheGroupforthethreemonthsended31July2019withthemanagementandisof theview that suchresultscompliedwith theapplicableaccountingstandards,the requirements under theGEM Listing Rules and other applicable legalrequirements,andthatadequatedisclosureshadbeenmade.

ByorderoftheBoardZhejiang United Investment Holdings Group Limited

Zhou YingChairman

HongKong,10September2019


Theboard (the“Board”) of Directors of the Company is pleased to present the unaudited condensed consolidated financial results of the Company and its subsidiaries (collectively the“Group”) for the threemonthsended31 July2019togetherwiththecomparativefiguresforthecorrespondingperiodin2018.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)FOR THE THREE MONTHS ENDED 31 JULY 2019

For the three months ended 31 July2019 2018

Notes HK$’000 HK$’000(Unaudited) (Unaudited)

Revenue 3 36,089 25,869Direct costs (35,592) (25,109)

Gross profit 497 760Other income 3 831 582Administrativeexpenses (4,530) (5,021)Finance costs 4 (96) (3)

Lossbeforeincometax 6 (3,298) (3,682)Incometaxexpense 5 – –

Loss for the period (3,298) (3,682)Othercomprehensiveexpense for the periodItems that may be reclassified subsequently to profit or loss:—Exchangedifferencesontranslationof financialstatementsofPRCsubsidiary (344) (1,232)

Lossandtotalcomprehensiveexpense for the period (3,642) (4,914)

HK cents HKcents

Losspershareforlossattributableto equity holders of the company—Basicanddiluted 8 (0.21) (0.26)


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)FOR THE THREE MONTHS ENDED 31 JULY 2019

Sharecapital

Sharepremium

Mergerreserve

Exchange reserve

Retainedearnings Total

HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000(Note)

At 1 May 2019 14,400 24,457 18,001 (1,027) 7,221 63,052

Loss for the period – – – – (3,298) (3,298)Othercomprehensiveexpenses for the period—Exchangedifferenceson translation of financial statementsofPRCsubsidiary – – – (344) – (344)

Totalcomprehensiveexpense for the period – – – (344) (3,298) (3,642)

Placingofnewshares 1,372 48,706 – – – 50,078Shareissuingexpenses – (1,032) – – – (1,032)

At31July2019(unaudited) 15,772 72,131 18,001 (1,371) 3,923 108,456

At 1 May 2018 14,400 24,457 18,001 – 16,040 72,898

Loss for the period – – – – (3,682) (3,682)Othercomprehensiveexpenses for the period—Exchangedifferenceson translation of financial statementsofPRCsubsidiary – – – (1,232) – (1,232)

Totalcomprehensiveexpense for the period – – – (1,232) (3,682) (4,914)

At31July2018(unaudited) 14,400 24,457 18,001 (1,232) 12,358 67,984

Note: MergerreserverepresentsthedifferencebetweenthesharecapitalissuedbytheCompanyfor acquisitionof the subsidiariespursuant to a reorganisation for the listingand theaggregatecapitalofthesubsidiariesbeingacquiredatthetimeofthereorganisation.


NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. CORPORATE INFORMATIONZhejiangUnited InvestmentHoldingsGroupLimited (the“Company”)wasincorporated in theCayman Islands on 20May 2015 as an exemptedcompanywithlimitedliabilityanditsshareshavebeenlistedontheGEMofThe Stock Exchangeon2November 2015. Its immediate andultimateholdingcompaniesareUnitedFinancialHoldingsGroupLimited (“United Financial Holdings”)andCentury InvestmentHoldingsLimited (“Century Investment”), respectively.UnitedFinancialHoldingswas incorporated inHongKongandholds68.48%of issued sharesof theCompany.UnitedFinancialHoldings is 100%ownedbyCentury Investment, a companyincorporatedintheCaymanIslandsandiswhollyownedbyMr.ZhouYing.

Theaddressesof the registeredofficeand theprincipalplaceofbusinessoftheCompanyareUnit1901,19/F., FarEastFinanceCentre,16HarcourtRoad,Admiralty,HongKong. TheCompany is an investment holdingcompanyand its subsidiaries (collectively, the “Group”) are principally engaged inundertaking slopeworks, foundationworksandothergeneralbuildingworksinHongKong.

2. BASIS OF PREPARATIONThe unaudited condensed consolidated financial statements of the Group for thethreemonthsended31July2019havebeenpreparedinaccordancewithHongKongFinancialReportingStandardsissuedbytheHongKongInstituteofCertifiedPublicAccountantsandtheapplicabledisclosurerequirementsofthe Rules Governing the Listing of Securities on the GEM of The Stock ExchangeofHongKongLimited.ExceptfortheadoptionofnewandrevisedHongKongFinancialReportingStandards (“HKFRSs”) issuedby theHongKong Institute of Certified PublicAccountants (“HKICPA”),which areeffective for theGroup’s financial period beginning 1May 2019, theaccountingpolicies adoptedby theGroupare consistentwith financialstatementsfortheyearended30April2019.

TheGrouphasinitiallyappliedHKFRS16Leasesat1May2019.Underthetransactionmethodscomparativeinformationisnotrestated.

Thefinancialstatementshavebeenpreparedonthehistoricalcostbasis.


3. REVENUE, OTHER INCOME AND SEGMENT INFORMATIONTheGroup isprincipallyengaged inundertaking slopeworks, foundationworksandothergeneralbuildingworksinHongKong.

BreakdownoftheGroup’srevenueissetoutasfollows:

Three months ended 31 July2019 2018

HK$’000 HK$’000(Unaudited) (Unaudited)

Contracting revenue 36,089 25,869

Revenue 36,089 25,869

Thechief operatingdecision-makerhasbeen identified as theBoardofDirectors of theCompany. TheBoard ofDirectors regard theGroup’sbusinessofconstructionasasingleoperatingsegmentandreviewstheoverallresultsoftheGroupasawholetomakedecisionaboutresourcesallocation.Accordingly,no segment analysis information ispresented.No separateanalysisof segment informationbygeographical segment ispresentsas theGroup’srevenueandnon-currentassetsareprincipallyattributabletoasinglegeographicalregion,whichisHongKong.


3. REVENUE, OTHER INCOME AND SEGMENT INFORMATION (CONTINUED)AnanalysisoftheGroup’srevenueandcontributiontoprofitfromoperatingactivitiesfromundertakingslopeworks, foundationworksandothergeneralbuildingworks inHongKong in theordinarycourseofbusinessduring thethreemonthsended31July2019and2018areasfollows:



Slopeworks 31,792 21,668Foundationworks 4,297 4,201

36,089 25,869

Ananalysisofotherincomeisasfollows:



Netforeignexchangegain – 422Rental income from lease of machinery – 120Interest income 51 40Sundry income 780 –

831 582


3. REVENUE, OTHER INCOME AND SEGMENT INFORMATION (CONTINUED)Information about major customersRevenuefromcustomersofthecorrespondingperiodscontributingover10%ofthetotalrevenueoftheGroupduringtheReportingPeriodareasfollows:



Customer A 5,894 10,580CustomerB 21,021 8,712Customer C 3,936 N/A1

Customer D 3,662 N/A1

1 Thecorresponding revenuedidnot individuallycontributeover10%of theGroup’srevenueduringtheperiod.

4. FINANCE COSTSAnanalysisoffinancecostsisasfollows:



Interest on finance leases 3 3Imputedinterestonleaseliability 93 –

96 3


5. INCOME TAX EXPENSE



Currenttax—HongKong: — charge for the period – –

HongKongProfitsTaxhasbeenprovidedattherateof16.5%(2018:16.5%)ontheCompany’sestimatedassessableprofitsfortheperiod.

NoprovisionforHongKongProfitsTaxhasbeenmadefortheperiodended31July2019,sincetherewerenoassessableprofitsinHongKong.

Nodeferredtaxhasbeenprovidedintheunauditedcondensedconsolidatedfinancial statements as there is no material temporary difference as at the reportingdates.

6. LOSS BEFORE INCOME TAXLossbeforeincometaxhasbeenarrivedataftercharging:



Staffcosts(includingdirectors’ emoluments) —salaries,allowancesand benefitsinkind 1,496 1,309 —retirementbenefitsscheme contributions 42 35

Total staff costs 1,538 1,344




Lossbeforeincometaxfortheperiod hasbeenarrivedataftercharging:

Depreciation in respect of plant and equipment — leased assets 6 6 —ownedassets 173 141 Depreciation in respect of right of use assets 1,149 –

1,328 147

Operating lease charges: —Landandbuildings – 1,953Rentalexpensesinrespect ofshort-termlease 96 –Subcontractingcharges(includedin direct costs) 35,280 24,824

7. DIVIDENDThe Directors do not recommend a payment of dividend for the three months ended31July2019(2018:Nil).

6. LOSS BEFORE INCOME TAX (CONTINUED)


8. LOSS PER SHAREThecalculationofbasic losspershareattributable toequityholdersof theCompanyisbasedonthefollowing:



Thecalculationofbasiclossper shareattributabletoequityholders oftheCompanyisbasedonthe following:

LossLossfortheperiodattributableto equity holders of the Company for thepurposeofbasiclosspershare 3,298 3,682

Three months ended 31 July2019 2018’000 ’000

(Unaudited) (Unaudited)

Number of sharesWeightedaveragenumberofordinary shares for the purpose of basiclosspershare 1,565,270 1,440,000

Thecalculationbasisof lossper share for the threemonthsended31 July2019isbasedonthelossattributabletoequityholdersoftheCompanyandtheweightedaveragenumberofordinarysharesforthepurposeofbasiclosspershare.

Therewerenodilutivepotentialordinary sharesduringbothperiodsandtherefore,dilutedlosspershareisthesameasthebasiclosspershare.

Date post:	15-Sep-2019
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E193243A ZJ United 1. - zjuv8366.com fileThis announcement, for which the Directors of the Company...

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