honghua group (196) Snapshot

Honghua Group Limited announced unaudited interim consolidated cash flows results for the six months ended June 30, 2018. For the period, Cash flows used operating activities-net was RMB 279,112,000 compared to cash flows from operating activities-net of RMB 224,523,000 a year ago. Payments for additions of property, plant and equipment and construction in progress were RMB 50,785,000 compared to RMB 28,909,000 a year ago.

Honghua Group Limited reported unaudited consolidated earnings results for the half year ended June 30, 2018. For the period, the company reported revenue of RMB 1,146,723,000 against RMB 701,006,000 a year ago. Operating loss was RMB 56,143,000 against RMB 285,964,000 a year ago. Loss before income tax was RMB 109,218,000 against RMB 380,270,000 a year ago. Loss from continuing operations was RMB 108,808,000 against RMB 336,260,000 a year ago. Loss attributable to owners of the company was RMB 118,414,000 or 2.24 cents per basic and diluted share against RMB 390,908,000 or 9.64 cents per basic and diluted share a year ago. Basic and diluted loss per share for loss from continuing operations attributable to the ordinary equity holders of the company was 2.17 cents against 8.17 cents a year ago. Net cash flow from operating activities was RMB 636,000 against net cash flow used in operating activities of RMB 29,587,000 a year ago. During the period, capital expenditure of the Group on infrastructure and technical improvements amounted to approximately RMB 56 million, representing a decrease of approximately RMB 8 million as compared to the same period last year, which was mainly used for the maintenance of the equipment and manufacturing base of the land drilling rigs segment as well as the optimization of the Group's business and production capacity. The estimated average annual tax rate used for the year ending December 31, 2018 is 20%, compared to 18% (as restated) for the six months ended June 30, 2017.

The board of directors of Honghua Group Limited announced that Mr. He Bin has been appointed as a vice president of the company, due to the change of position, he resigned as the joint company secretary with effect from 30 August 2018. The Board also announced that, Ms. Zhuang Wenmin be appointed as the joint company secretary of the Company with effect from 30 August 2018. Ms. Zhuang joined in the Company since 2009, has been the president of the Legal & Securities Department of the Company since January 2016. She is responsible for capital operation corporate governance and compliance, risk management investor relationship and legal affairs of the Company.