ChatDOC/OCRFlux-bench-single huggingface dataset:
# 9 TAXATION (Continued)

# Deferred tax liabilities (Continued)

The Group did not recognize deferredi ncome tax assets of approximately HK\$1,112,000 (2017: approximately HK\$2,571,000) in respect of taxl osses of approximately HK\$4,449,000 (2017: approximately HK\$10,282,000) that will expirei n five years from the yeari ncurred. The remaining tax losses of approximately HK\$334,571,000 (2017: approximately HK\$334,571,000) can be carried forwardi ndefinitely to offset against future taxablei ncome.

Deferredi ncome taxl iabilities of HK\$2,306,000 have not been recognized for the withholding tax and other taxes that would be payable on the unremitted earnings of certain subsidiaries andj oint ventures for the year ended 31 December 2017. Total unremitted earnings amounted to HK\$23,059,000 as at 31 December 2017. The unrecognized deferredi ncome taxl iabilitiesi n relation to the unremitted earnings decrease to nil is attributed to the disposal of Hao You during the year ended 31 December 2018.

# 10 EARNINGS/(LOSS) PER SHARE

Basic earnings/(loss) per sharei s calculated by dividing the profit/(loss) attributable to equity holders of the Company by the weighted average number of ordinary sharesi ni ssue during the year. Diluted earnings/(loss) per sharei s calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. Diluted earnings/(loss) per share for the years ended 31 December 2018 and 2017 were the same as basic earnings/(loss) per share as the Company had no potentially dilutive ordinary sharesi ni ssue during these years.

2018	2017
Weighted average number of ordinary shares in issue (thousands)	13,498,107	13,498,107
Loss from continuing operations attributable to equity
holders of the Company (HK$’000)	(67,026)	(142,528)
Basic and diluted loss per share from continuing operations
attributable to equity holders of the Company
(HK cents per share)	(0.49)	(1.06)
Profit from discontinued operations attributable to
equity holders of the Company (HK$’000)	140,763	38,859
Basic and diluted earnings per share from discontinued operations
attributable to equity holders of the Company
(HK cents per share)	1.04	0.29
Earnings/(loss) per share attributable to equity holders of the
Company
(HK cents per share)	0.55	(0.77)
In 2021, the Senior Management of the Bank discussed the substantive assessment results of previous years and decided to continue using the substantive assessment results of previous years considering that there are no significant changes in the business and operating environment.

# Response to the UN SDG

The Bank actively responds to UN Sustainable Development Goals to contribute to the global SDG in implementing social responsibility strategies.
SDG	Specific measures	Social responsibility
toipcs	Section(s)
cimonocE	Improve governance system
Equal emlpoyment and
protect emlpoyees’ rihgts
and interests
Offer reasonable
professional development
channels
Provide strong support to
real economy
Support small and micro
enterprises	Serve small and micro
enterprises
Favourable emlpoyment
environment
Promote professional
development
Improve business
performance
Overall risk management	Optimising
corporate
governance
Serving private,
small and micro
enterprises
Facilitating rural
revitalisation
Driving emerging
industries
Broadening career
channels
Diigtisation
Support economic
transformation
Serve agriculture, rural areas
and farmers
Boost infrastructure
construction	Promote economic
development
Improve real economy
Build intelligent outlets
Inclusive finance in rural
areas	Serving private,
small and micro
enterprises
Facilitating rural
revitalisation
Driving emerging
industries
Supporting
projects for public
benefits
laicoS	Conduct targeted poverty
alleviation in an efficient and
orderly way
Boost infrastructure
construction	Practice targeted poverty
relief
Inclusive finance in rural
areas	Facilitating rural
revitalisation
Supporting
projects for public
benefits
Create a healthy working
environment
Care about emlpoyees’
hillhpysca and menta ealth	Safety protection
measures
Pay attention to health
and safety	Caring for
emlpoyees’
hilpysca and
mental health
Building a warm
and family-like
corporate culture
# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Sole Member and the Board of Directors of LG&E and KU Energy LLC

# Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of LG&E and KU Energy LLC and subsidiaries (the “Company”) as of December 31, 2017 and 2016, the related consolidated statements of income, comprehensive income, equity, and cash flows, for the years then ended, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

# Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Louisville, Kentucky

February 22, 2018

We have served as the Company’s auditor since 2015.
# Report of Independent Registered Public Accounting Firm

# The Board of Directors and Sole Member of LG&E and KU Energy LLC

We have audited the accompanying consolidated statements of income, comprehensive income, equity, and cash flows of LG&E and KU Energy LLC and subsidiaries for the year ended December 31, 2015. Our audit also included the financial statement schedule listed in the Index at Item 15(a)(2) for the year ended December 31, 2015. These financial statements and schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and schedule based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated results of operations and cash flows of LG&E and KU Energy LLC and subsidiaries for the year ended December 31, 2015, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule for the year ended December 31, 2015, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

/s/ Ernst & Young LLP

Louisville, Kentucky

February 19, 2016
# Finance costs – net

Finance costs increased by approximately RMB0.1 million, or 11.8%, from approximately RMB1.1 million for 6M2018 to approximately RMB1.2 million for 6M2019 primarily due to the increase in bank borrowings drawn in 6M2019.

# Income tax expense

Our income tax expense increased by approximately RMB1.1 million, or 15.8%, from approximately RMB6.7 million for 6M2018 to approximately RMB7.7 million for 6M2019 primarily due to the increase in Listing expenses incurred from nil for 6M2018 to approximately RMB6.4 million for 6M2019, which was not deductible for tax purpose. For further details, please refer to the paragraph headed “Selected items of consolidated statements of comprehensive income— Income tax expense” in this section.

# Profit for the year

As a result of the foregoing, our profit for the period decreased by approximately RMB3.3 million, or approximately 16.5%, from approximately RMB19.8 million for 6M2018 to approximately RMB16.5 million for 6M2019.

# FY2018 compared to FY2017

# Revenue

Our revenue increased by approximately RMB155.5 million, or 52.1%, from approximately RMB298.7 million for FY2017 to approximately RMB454.2 million for FY2018. This increase was primarily due to the combined effect of the increase in both the sales volume and average selling price of all our PHC pile and commercial concrete products as a result of the increased market demand. The increases were primarily driven by the growth in the construction industry in Jiangsu Province and the increased demand from our customers for the development of residential and commercial projects in Qidong City.

• PHC pile. Our revenue from sales of PHC pile increased from approximately RMB158.6 million in FY2017 and to approximately RMB230.9 million in FY2018. The increase in revenue from sales of PHC pile for FY2018 of approximately RMB72.3 million, or 45.6% was primarily due to the increase in sales volume of our PHC pile.

We sold approximately 1.1 million metres and 1.2 million metres of PHC pile for FY2017 and FY2018, respectively. The increase in sales volume was primarily due to the increase in sales volume of grade 500 PHC pile as a result of the new orders from Customer N (one of our ten largest customers in FY2018) of approximately 61,000 metres combined with the increase sales volume of grade 600 PHC pile as a result of the additional orders in FY2018 from Customer G (one of our five largest customers in FY2017 and FY2018) of approximately 36,000 metres. The increase was partially offset by the decrease in sales volume of grade 400 PHC pile as we tend to focus on the production of grade 500 PHC pile and grade 600 PHC pile which are of relatively higher strength as compared to grade 400 PHC pile.
• Square pile. Our revenue from sales of square pile increased from approximately RMB0.2 million in FY2017 to approximately RMB2.4 million in FY2018. The increase in revenue from sales of square pile for FY2018 of approximately RMB2.2 million, or 1,182.8%, was primarily due to the increase in sales volume of our square pile.

We sold approximately 2,000 metres and 15,000 metres of square pile for FY2017 and FY2018, respectively. The increase in sales volume was primarily due to increase in sales volume of our square pile as a result of new orders from Customer R of approximately 11,000 metres in FY2018.

• Commercial concrete. Our revenue from sales of commercial concrete increased from approximately RMB139.9 million in FY2017 to approximately RMB220.9 million in FY2018. The increase in revenue from sales of commercial concrete for FY2018 of approximately RMB81.0 million, or 57.9% was primarily due to the increase in sales volume of our commercial concrete.

We sold approximately 0.4 million m3 and 0.5 million m3 of commercial concrete for FY2017 and FY2018, respectively. The increase in sales volume was primarily due to the increase in sales volume of grade C10-C25 commercial concrete as a result of the new orders in FY2018 from Customer K (one of our five largest customers in FY2018) of approximately 63,000 m3.

# Cost of sales

Our cost of sales increased by approximately RMB127.8 million, or 51.7%, from approximately RMB247.0 million for FY2017 to approximately RMB374.7 million for FY2018 primarily due to the combined effect of the increase in sales volume of both our PHC pile and commercial concrete products. The increase was generally in line with the growth of revenue for FY2018.

# Gross profit and gross profit margin

As a result of the foregoing, our gross profit increased by approximately RMB27.8 million, or 53.7%, from approximately RMB51.7 million for FY2017 to approximately RMB79.5 million for FY2018. Our gross profit margin remained relatively stable at approximately 17.3% and 17.5% for FY2017 and FY2018.

• PHC piles. Gross profit margin of PHC pile increased from approximately 14.4% for FY2017 to approximately 18.1% for FY2018. The increase in gross profit margin of PHC pile was primarily due to the increase in average selling price of the product increased at a faster rate than the cost of sales as a result of our pricing strategy. The strong pricing power we enjoyed was primarily due to the highly concentrated market landscape for PHC pile in Nantong. According to the F&S Report, the PHC pile industry in Nantong was very concentrated with only four PHC pile manufacturers and our Group had a market share of approximately 7.1% in Nantong in terms of PHC pile production volume in 2018.
# 33 IMMEDIATE AND ULTIMATE CONTROLLING PARTIES

As at 31 December 2021, the directors consider the immediate parent to be MicroPort Scientific, which is incorporated in British Virgin Islands and does not produce financial statements available for public use.

As at 31 December 2021, the directors consider the ultimate controlling party is MicroPort, which is incorporated in Cayman Islands. MicroPort is listed on the Main Board of The Stock Exchange of Hong Kong Limited and produces financial statements available for public use.

# 34 POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE FOR THE RELEVANT PERIODS

Up to the date of issue of the Historical Financial Information, the HKICPA has issued a number of amendments, new standards and interpretations which are not yet effective for the accounting period beginning on 1 January 2022 and which have not been adopted in the Historical Financial Information. These include the following:

Effective for
accounting periods
beignning on or after
Annual Improvements to HKFRSs 2018-2020	1 January 2022
Amendments to HKFRS 3, Reference to the Conceptual Framework	1 January 2022
Amendments to HKAS 16, Property, Plant and Equipment: Proceeds beforeI ntended Use	1 January 2022
Amendments to HKAS 37, Onerous Contracts– Cost of Fulfilling a Contract	1 January 2022
Amendments to HKAS 1, Classification ofL iabilities as Current orN on-current	1 January 2023
HKFRS 17, Insurance contracts	1 January 2023
Amendments to HKAS 1 and HKFRS Practice Statement 2, Disclosure ofA ccounting Policies	1 January 2023
Amendments to HKAS 8, Definition ofA ccounting Estimates	1 January 2023
Amendments to HKAS 12, Deferred Tax related toA ssets andL iabilities arisinlgf rom a Singe
Transaction	1 January 2023
Amendments to HKFRS 10 and HKAS 28, Sale or contribution of assets between an investor and its
associate orj oint venture	To be determined

The Group is in the process of making an assessment of what the impact of these amendments is expected to be in the period of initial application. So far the Group has concluded that the adoption of them is unlikely to have a significant impact on the Group’s consolidated financial statements.

# 35 SUBSEQUENT EVENTS

On 22 June 2022, a share subdivision was approved by the shareholders of the Company, pursuant to which, each issued and unissued share capital was subdivided to five shares of the corresponding class with par value of US\$0.00002 each.

# SUBSEQUENT FINANCIAL STATEMENTS

No audited financial statements have been prepared by the Company and its subsidiaries in respect of any period subsequent to 31 December 2021.
# A . 財務資料

# 合併全面收益表

附註	截至十二月三十一日止年度
二零零八年	二零零九年	二零一零年
人民幣千元	人民幣千元	人民幣千元
收益 . . . . . . . . . . . . . . . . . . . . . . . . . .	5	133,349	346,549	374,883
營運成本 . . . . . . . . . . . . . . . . . . . . . . .	(71,987)	(222,937)	(204,823)
毛利 . . . . . . . . . . . . . . . . . . . . . . . . . .	61,362	123,612	170,060
其他收入 . . . . . . . . . . . . . . . . . . . . . . .	6	4,292	4,803	26
市場推廣及宣傳開支 . . . . . . . . . . . . . . . .	(820)	(1,779)	(2,979)
行政開支 . . . . . . . . . . . . . . . . . . . . . . .	(2,093)	(3,348)	(6,267)
[ . ]開支 ........................	—	—	(21,531)
融資成本 . . . . . . . . . . . . . . . . . . . . . . .	7	(816)	(1,317)	(3,640)
除稅前溢利 . . . . . . . . . . . . . . . . . . . . . .	61,925	121,971	135,669
所得稅開支 . . . . . . . . . . . . . . . . . . . . . .	8	(16,261)	(33,130)	(40,639)
年度溢利及全面收益總額 . . . . . . . . . . . . .	45,664	88,841	95,030
每股盈利	11
基本（ 人民幣）. . . . . . . . . . . . . . . . . . . .	0.57	0.80	0.38
# 合併財務狀況表

附註	於
十二月三十一日
二零零八年	二零零九年	二零一零年
人民幣千元	人民幣千元	人民幣千元
非流動資產
物業、廠房及設備 . . . . . . . . . . . . . . . .	13	43,272	40,407	376,300
已付收購物業、廠房及設備的按金 . . . . .	18,700	28,494	273
租賃按金 . . . . . . . . . . . . . . . . . . . . . .	14 (a)	1,000	3,000	—
62,972	71,901	376,573
流動資產
貿易及其他應收款項 . . . . . . . . . . . . . . .	14 (b)	65,707	230,249	280,440
應收一名董事款項 . . . . . . . . . . . . . . . .	15	29,216	82,121	—
銀行結餘及現金 . . . . . . . . . . . . . . . . . .	16	973	1,764	12,520
95,896	314,134	292,960
流動負債
貿易及其他應付款項 . . . . . . . . . . . . . . .	17	44,535	130,009	127,678
應付一名董事款項 . . . . . . . . . . . . . . . .	15	11,382	11,395	26,464
應付稅項 . . . . . . . . . . . . . . . . . . . . . .	16,664	49,503	39,185
有抵押銀行借貸 . . . . . . . . . . . . . . . . . .	18	7,500	27,500	40,000
80,081	218,407	233,327
流動資產淨值 . . . . . . . . . . . . . . . . . . .	15,815	95,727	59,633
資產淨值 . . . . . . . . . . . . . . . . . . . . . .	78,787	167,628	436,206
資本及儲備
實繳資本╱[ . ] . . . . . . . . . . . . . . . . . . .	19	39,406	39,406	39,451
儲備 . . . . . . . . . . . . . . . . . . . . . . . . .	39,381	128,222	396,755
權益總額 . . . . . . . . . . . . . . . . . . . . . .	78,787	167,628	436,206
# 35. OPERATING LEASE ARRANGEMENTS

# (a) As lessor

The Group leases its investment properties (note 14 to the financial statements) under operating lease arrangements, with leases negotiated for terms mainly ranging from five to ten years. The terms of the leases generally also require the tenants to pay security deposits and provide for periodic rent adjustments according to the then prevailing market conditions.

As at 31 December 2018, the Group had total future minimum lease receivables under non-cancellable operating leases with its tenants falling due as follows:

2018	2017
HK$’000	HK$’000
Within one year	20,491	17,079
In the second to fifth years, inclusive	88,342	74,662
After five years	65,456	99,347
174,289	191,088

# (b) As lessee

The Group leases certain of its office buildings, retail shops and warehouses under operating lease arrangements. Leases for the properties are negotiated for terms ranging from one to ten years.

At 31 December 2018, the Group had total future minimum lease payments under non-cancellable operating leases falling due as follows:

2018	2017
HK$’000	HK$’000
Within one year	2,765	4,240
In the second to fifth years, inclusive	4,426	7,339
After five years	8,966	–
16,157	11,579
# 36. COMMITMENTS

In addition to the operating lease commitments detailed in note 35 above, the Group had the following capital commitments at the end of the reporting period:

2018	2017
HK$’000	HK$’000
Contracted, but not provided for:
Plant and machinery	7,796	–
Acquisition of equity investment	1,138	–
8,934	–

# 37. RELATED PARTY TRANSACTIONS

# (a) Compensation of key management personnel of the Group

2018	2017
HK$’000	HK$’000
Short term employee benefits	14,017	11,092
Equity-settled share option benefits	5,625	5,081
Total compensation paid to key management personnel	19,642	16,173

Further details of directors’ emoluments are included in note 8 to the financial statements.

# (b) Loans from a director

2018	2017
HK$’000	HK$’000
Mr. Tse Kam Pang	12,000	12,000

Mr. Tse Kam Pang is one of the directors and also the Chairman of the Company. As at 31 December 2018, loans with an aggregate amount of HK\$12,000,000 are unsecured, interest-free and not repayable within the next twelve months.

# (c) Other transactions with related parties:

The Chairman of the Company has unconditional guaranteed certain bank loans and other loans made to the Group of up to HK\$90,000,000 (2017: HK\$40,000,000) as at the end of the reporting period, as further detailed in note 26(ii) to the financial statements.

# (d) Outstanding balances with related parties:

(i) The Group had an outstanding balance due to its non-controlling interests of HK\$41,102,000 (2017: HK\$42,438,000) as at the end of the reporting period, as further detailed in note 31 to the financial statements.

(ii) Details of the Group’s other receivable balances with its associate as at the end of the reporting period are disclosed in note 21 to the financial statements.