JC International Group Limited CONSOLIDATED INTERIM ... · JC International Group Limited...

JC International Group Limited CONSOLIDATED INTERIM FINANCIAL REPORT HALF-YEAR ENDED 30 JUNE 2016

For

per

sona

l use

onl

y

JC International Group Limited

Contents

Page

Director’s Report 1

Auditor’s Independence Declaration 3

Consolidated Statement of Profit or Loss and Other Comprehensive Income 4

Consolidated Statement of Financial Position 5

Consolidated Statement of Changes in Equity 6

Consolidated Statement of Cash Flows 7

Director’s Declaration 19

Independent Auditor’s Review Report 20

For

per

sona

l use

onl

y


1

Director’s Report

Your Director submits the financial report of the Group for the half-year ended 30 June 2016.

Director

The name of director who held office during or since the end of the half year is:

Name Position Appointment Date

Cessation Date

Mr John Dixon Non-Executive Director and Chairman 07/09/2015 - Mr Yonghong Tang Managing Director/General Manager 13/04/2015 - Mr Min Wu Alternate Director 17/06/2016 - Mr Luo Qi Alternate Director 17/06/2016 -

Mr Youxi Sun Executive Director/Vice General Manager

07/09/2015 -

Mr Yangyu Zhu Executive Director/Vice General Manager

07/09/2015 -

Ms Bronwyn Barnes Non-executive director 07/09/2015 -

Shareholdings of Director

Shares held in JC International Group Limited (number) during the year ended 30 June 2016:

Name Balance

01/01/2016 Granted as

remuneration On exercise of options

Net change other

Balance 30/06/2016

Mr John Dixon - - - 5,000 5,000 Mr Yonghong Tang 34,500,000 - - - 34,500,000 Mr Min Wu - - - - - Mr Luo Qi - - - 52,742 52,742 Mr Youxi Sun 5,916,000 - - - 5,916,000 Mr Yangyu Zhu 2,500,000 - - - 2,500,000 Ms Bronwyn Barnes - - - - -

For

per

sona

l use

onl

y


2

Director’s Report cont

Review of Operations

The consolidated profit of the Group for the financial half-year after providing for income tax amounted to $4,870,514 (30 June 2015: $3,113,157). The first half-year business performance of 2016 is described as below: The Group’s business has been growing continuously. The revenue for the first half of 2016 is $29,765,314, showing a 22% growth compared with the revenue for the half-year ended 2015. Most of the revenue comes from the Group’s principal activity as contracted projects income. The Group incurred a foreign currency translation loss of $1,117,174 (30 June 2015: $1,218,915 gain) for the first half of 2016 due to the devaluation of RMB. The Group’s working capital for the half-year ended 2016 was $19,665,964 (31 December 2015: $12,125,986), which was a symbol of healthier working capital management by the Group. The Group is in the progress of 19 project contracts in five countries, i.e., Algeria, Bangladesh, China, Kuwait and Malaysia. The Group's business growth comes from the long-term collaborations with its strategic partners, namely China Machinery Industry Construction (SINOCONST), China Railway Construction (CRCEG), China Metallurgical Construction (MCC) and China State Construction Engineering Corporation (CSCEC). The long list of prestigious partners sets a solid base for the sustainable growth of the Group, placing JCI Group in the very frontier to follow China's national strategy of “One Belt & One Road” and “Overseas Expansion” promoted by Chinese government in the mid to long term.

Auditor’s Independence Declaration

The lead auditor’s independence declaration under s 307C of the Corporations Act 2001 is set out on page 3 for the half-year ended 30 June 2016. This report is signed in accordance with a resolution of the Board of Directors. _____________________ Mr Yonghong Tang Dated this 30th day of August 2016

For

per

sona

l use

onl

y

3

Auditor’s Independence Declaration under S 307C of the Corporations Act 2001 to the Directors of JC International Group Limited

I declare that, to the best of my knowledge and belief, during the half-year ended 30 June 2016 there have been no contraventions of:

i. the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

ii. any applicable code of professional conduct in relation to the review.

Jim Gouskos Director Assurance Adelaide Pty Ltd (Formerly Moore Stephens Assurance Adelaide Pty Ltd)

Dated this 30th day of August 2016

For

per

sona

l use

onl

y

4

Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Half-Year Ended 30 June 2016

Note Consolidated Group

Half-year Ended

30 June 2016 Half-year Ended

30 June 2015

$ $

Revenue 3 29,765,314 24,404,021

Cost of sales (23,734,733) (19,128,187)

Gross profit 6,030,581 5,275,834

Other income 3 1,804,514 107,007

Administration expenses (1,089,784) (1,036,809) Finance costs (145,152) (194,642)

Profit before income tax 6,600,159 4,151,390

Income tax expense (1,729,645) (1,038,233)

Profit for the half year 4,870,514 3,113,157

Other comprehensive income (1,117,174) 1,218,915

Total comprehensive income for the half year 3,753,340 4,332,072

Total comprehensive income attributable to:

Members of the parent entity (the Company) 3,496,547 4,328,507

Ma’anshan Jiancheng Occupational Training School

256,793 3,565

Total comprehensive income for the half year 3,753,340 4,332,072

Earnings per share for profit attributable to the owners of JC International Group Limited

– basic earnings per share (cents) 8.55 N/A

– diluted earnings per share (cents) 8.52 N/A

For

per

sona

l use

onl

y

5

Consolidated Statement of Financial Position as at 30 June 2016


30 June 2016 31 December 2015

$ $

Current assets

Cash and cash equivalents 4 2,450,031 1,413,059

Trade and other receivables 5 40,206,671 31,737,689

Inventory 13,610 15,136

Other current assets - 135,715

Total current assets 42,670,312 33,301,599

Non-current assets

Trade and other receivables 5 5,727,640 4,022,277

Property, plant and equipment 6,625,373 6,789,725

Intangible assets - Land use rights 392,316 413,251

Deferred tax assets 345,309 392,482

Total non-current assets 13,090,638 11,617,735

Total assets 55,760,950 44,919,334

Current liabilities

Trade and other payables 14,798,972 16,136,174

Short-term borrowings 6 6,591,325 2,642,000

Current tax liabilities 1,614,051 2,397,439

Total current liabilities 23,004,348 21,175,613

Total liabilities 23,004,348 21,175,613

Net assets 32,756,602 23,743,721

Equity

Issued capital 7 9,991,586 4,732,045

Reserves 5,180,477 5,522,033

Retained earnings 17,584,539 13,489,643

Total equity 32,756,602 23,743,721 For

per

sona

l use

onl

y

6

Consolidated Statement of Changes in Equity for the Half-Year Ended 30 June 2016

Share Capital

Statutory Reserve

Training School Profits

Reserve

Foreign Currency

Translation Reserve

Retained Earnings

Consolidated Total

$ $ $ $ $ $

Balance at 1 January 2015

4,730,405 862,141 218,407 2,413,968 7,591,396 15,816,317

Total comprehensive income for the half year

- - - - 3,113,157 3,113,157

Transferred to Statutory Reserve

- 297,047 - - (297,047) -

Transferred to Training School Profits Reserve

- - 3,565 - (3,565) -

Other comprehensive income

- - - 1,218,915 - 1,218,915

Balance at 30 June 2015 4,730,405 1,159,188 221,972 3,632,883 10,403,941 20,148,389

Balance at 1 January 2016

4,732,045 1,569,595 655,128 3,297,310 13,489,643 23,743,721

Shares issued during the half year

5,584,765 - - - - 5,584,765

Cost of shares issued capitalised

(325,224) - - - - (325,224)

Total comprehensive income for the half year

- - - - 4,870,514 4,870,514

Transferred to Statutory Reserve

- 518,825 - - (518,825) -

Transferred to Training School Profits Reserve

- - 256,793 - (256,793) -

Other comprehensive income

- - - (1,117,174) - (1,117,174)

Balance at 30 June 2016 9,991,586 2,088,420 911,921 2,180,136 17,584,539 32,756,602 For

per

sona

l use

onl

y

7

Consolidated Statement of Cash Flows for the Half-Year Ended 30 June 2016


Half-year Ended


30 June 2015 $ $ Cash flows from operating activities Receipts from customers 23,402,665 29,226,561 Payments to suppliers and employees (28,596,385) (27,142,620) Interest received 18,548 3,995 Finance costs (145,152) (194,546) Income tax paid (2,451,556) (2,137,070)

Net cash provided by (used in) operating activities (7,771,880) (243,680)

Cash flows from investing activities Purchase of property, plant and equipment (318,698) (156,469)

Net cash provided by (used in) investing activities (318,698) (156,469)

Cash flows from financing activities Proceeds (Repayment) from (of) borrowings 4,056,200 532,700 Cash receipts (Advanced) From (to) related parties - (684,705) Proceeds from issue of shares 5,259,541 -

Net cash provided by (used in) financing activities 9,315,741 (152,005)

Net change in cash and cash equivalents held 1,225,163 (552,154) Effect of exchange rates on cash holdings in foreign currencies (188,191) 167,360 Cash and cash equivalents at beginning of period 1,413,059 1,462,879

Cash and cash equivalents at end of period 4 2,450,031 1,078,085

For

per

sona

l use

onl

y

JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2016

8

Note 1: Summary of Significant Accounting Policies

a. Basis of Preparation

These general purpose interim financial statements for the half-year reporting period ended 30 June 2016

have been prepared in accordance with requirements of the Corporations Act 2001 and Australian

Accounting Standard AASB 134: Interim Financial Reporting. The Group is a for-profit entity for financial

reporting purposes under Australian Accounting Standards.

This interim financial report is intended to provide users with an update on the latest annual financial

statements of JC International Group Limited and its controlled entities (referred to as the “consolidated

group” or “group”). As such it does not contain information that represents relatively insignificant

changes occurring during the half-year within the Group. It is therefore recommended that this financial

report be read in conjunction with the annual financial statements of the Group for the year ended 31

December 2015, together with any public announcements made during the following half-year.

These interim financial statements were authorised for issue on 30 August 2016.

b. Accounting policies

The same accounting policies and methods of computation have been followed in this interim financial

report as were applied in the most recent annual financial statements.

The Group has considered the implications of new or amended Accounting Standards, but determined

that their application to the financial statements is either not relevant or not material.

Note 2: Business Combinations

Business combinations occur where an acquirer obtains control over one or more businesses.

A business combination is accounted for by applying the acquisition method, unless it is a combination involving businesses under common control. Business combinations other than those involving businesses under common control are accounted for from the date that control is attained, whereby the identifiable assets acquired and liabilities (including contingent liabilities) assumed are recognised at their acquisition-date fair values (except in a limited number of circumstances as identified in AASB 3: Business Combinations).

When measuring the consideration transferred in the business combination, any asset or liability resulting from a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability is remeasured each reporting period to fair value, recognising any change to fair value in profit or loss, unless the change in value can be identified as existing at acquisition date.

All transaction costs incurred in relation to the business combination are expensed to the statement of comprehensive income. The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.

For

per

sona

l use

onl

y


9

Note 3: Revenue for the Period The following revenue items are relevant in explaining the financial performance for the interim period: Consolidated Group

Half-year Ended


30 June 2015 $ $ Operating activities Contracted projects income 29,352,854 24,293,105 Labour brokerage income 66,707 - Training school income 345,753 110,916

Total Revenue 29,765,314 24,404,021

Non-operating activities Interest received 18,548 3,997 Government subsidies 1,785,966 104,819 Other non-operating income/(expense) - (1,809)

Other Income 1,804,514 107,007

Note 4: Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand (AUD 368,049) and cash at bank (AUD 2,081,982) as at 30 June 2016.

For

per

sona

l use

onl

y


10

Note 5: Trade and Other Receivables

Note Consolidated Group 30 June 2016 31 December 2015 $ $ Current Trade receivables 23,852,153 18,335,474 Note receivables - 126,816 Other receivables 170,065 93,034 Contracted project costs 5(a) 16,184,453 13,182,365

Total current trade and other receivables 40,206, 671 31,737,689

Non - Current Trade receivables 1,245,677 1,678,966 Other receivables 5,563,716 3,901,110 Provision for impairment (1,081,753) (1,557,799)

Total current trade and other receivables 5,727,640 4,022,277

a. Contracted project costs

Consolidated Group 30 June 2016 31 December 2015 $ $ Contracted project costs incurred 138,835,471 120,912,682 Recognised profits 35,259,835 30,789,122

174,095,306 151,701,804 Progress billings (157,903,090) (138,507,311) Provision for expected loss on contracted project (7,763) (12,128)

Total Contracted Project Costs 16,184,453 13,182,365

As at 30 June 2016, trade receivable included retentions of AUD 6,898,760 (31 December 2015: AUD 5,861,190) related to contracted project in progress.

For

per

sona

l use

onl

y


11

Note 5: Trade and Other Receivables (Cont)

The main sources of credit risk to the Group are considered to relate to the classes of assets described as “trade and other receivables”. The Group has a concentration of credit risk with respect to one single customer which account for 84% of trade receivable at 30 June 2016. (79% as at 31 December 2015). The following table details the Group’s trade and other receivables exposed to credit risk with ageing analysis.

Past Due and Impaired Past Due but Not Impaired Not Past Due

Gross

Amount <1 year >1 year 1~2 years 2~3 years >3 years <1 year

$ $ $ $ $ $ $

Consolidated Group

30 June 2016

Trade receivables 25,097,830 - 960,443 285,234 - - 23,852,153

Other receivables 5,733,781 - 121,310 5,442,406 - - 170,065

Contracted project costs

16,184,453 - - - - - 16,184,453

Total 47,016,064 - 1,081,753 5,727,640 - - 40,206,671

Consolidated Group

31 December 2015

Trade receivables 20,014,440 - 1,431,375 470,132 247,591 - 17,865,342

Other receivables 3,994,144 - 126,424 2,091,976 - 63,408 1,712,336

Note receivable 126,816 - - - - - 126,816

Contracted project costs

13,182,365 - - - - - 13,182,365

Total 37,317,765 - 1,557,799 2,562,108 247,591 63,408 32,886,859

The aging analysis at balance date for trade receivables is on the basis of the date of interim settlement statements rather than when the receivables are expected to be collected which relates to current and non-current classifications. Receivables that are past due are assessed for impairment by ascertaining solvency of the debtors and are provided for where there are specific circumstances indicating that the debt may not be fully repaid to the Group. The movement in the provision for impairment of trade receivables is as follows:

Consolidated Group 30 June 2016 31 December 2015 $ $ Opening Balance 1,557,799 996,591 Impairment (write back) incurred for the period (424,939) 505,912 Write-off incurred for the period - - Foreign currency translation difference (51,107) 55,296

Closing Balance 1,081,753 1,557,799

For

per

sona

l use

onl

y


12

Note 6: Short-term Borrowings Consolidated Group 30 June 2016 Maturity Date 31 December 2015 $ $ Current Bank loan secured: - Huishang Bank (HSB) 1,521,075 29/09/2016 1,585,200 - Ma’anshan Rural Commercial Bank (RCB) - 1,056,800 - Shanghai Pudong Development Bank (SPD) 1,014,050 25/12/2016 - - Dangtu Xinhua Town Bank (XHB) 2,028,100 03/03/2017 - - Agricultural Bank of China Dangtu Branch (ABC)

2,028,100 01/06/2017 -

Total Short-term Borrowings 6,591,325 2,642,000

In 2016, the bank borrowings from RCB were repaid. Interest is charged at 7.80% by HSB, 5.655% by SPD, 8.40% by XHB and 5.655% by ABC. The bank borrowings from HSB are secured by personal guarantees of the Director, Mr Yonghong Tang, his wife, Mrs Jinxiang Wang and the Group’s land and building with a carrying amount of $5,969,013 (2015: $6,377,568). The bank borrowings from SPD are secured by a financial guarantee company and counter guaranteed by personal guarantees of the Director, Mr Yonghong Tang and his wife, Mrs Jinxiang Wang, Ma'anshan Zhongji Chengjian Contruction Engineering Co., Ltd (unrelated party), Ma'anshan City Jiancheng Human Resources Service Limited (JCI WFOE) and Ma'anshan City Jiancheng International Economic and Technical Cooperation Co.,Ltd (JCI CHINA). The bank borrowings from ABC are secured by a financial guarantee company and counter guaranteed by personal guarantees of the Director, Mr Yonghong Tang and his wife, Mrs Jinxiang Wang. On 21 June 2016, Huishang Bank (HSB) has conditionally approved and granted total bank facilities available to the company amount to AUD 10,140,500 (RMB 50,000,000). Including in the total amount of facilities available AUD 4,563,225 (RMB 22,500,000) can be utilised for short term bank borrowings and the rest AUD 5,577,275 (RMB 27,500,000) can be utilised for bank notes drawing. Note 7: Issued Capital Consolidated Group 30 June 2016 31 December 2015 $ $ At the beginning of reporting period 4,732,045 4,730,405 Shares issued during the year 5,259,541 1,640

Total Issued Capital 9,991,586 4,732,045

The company has authorised share capital amounting to 56,980,955 ordinary shares.F

or p

erso

nal u

se o

nly


13

Note 7: Issued Capital (con’t)

a. Ordinary shares

Consolidated Group 30 June 2016 31 December 2015 No. No. At the beginning of the reporting period 50,000,000 - Shares issued during the year:

- 13 April 2015 - 1 - 13 July 2015 - 49,999,999 - IPO share issue, net of related issuance expenses 6,980,955

Total Issued Capital 56,980,955 50,000,000

The issue of 6,980,955 ordinary shares at an issue price of $0.80 per share pursuant to a public offer at ASX together with related issuance expenses of $325,223. Ordinary shares participate in dividends and the proceeds on winding-up of the parent entity in proportion to the number of shares held. At the shareholders’ meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

b. Capital Management

Management controls the capital of the company in order to maintain a capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business, and ensure that the company can fund its operations and continue as a going concern.

The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.

Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, and share issues.

Note 8: Operating Segments The Board of Directors (who are identified as the Chief Operating Decision Makers (CODM)) assess performance and determine the allocation of resources based on the internal reports which are organised in one operating segment for the subcontracting of workforce with State Owned Enterprise and private companies based in China. As a result there is only one operating segment and the statement of profit or loss and other comprehensive income and the statement of financial position is reflective of this operating segment.

Major customers

During the half-year ended 30 June 2016 approximately 75% (2015: 74%) of the Group’s external revenue was derived from subcontracting workforce to one customer.

For

per

sona

l use

onl

y


14

Note 9: Contingent Liabilities There has been no change in contingent liabilities since the last reporting period. Note 10: Events after the End of the Interim Period Other than the following, the directors are not aware of any significant events since the end of interim period. Subsequent to year end 30 June 2016, the Group borrowed additional AUD 999,500(RMB 5,000,000) on 6 July 2016 from Agricultural Bank of China, with a terms of 12 months and interest rate of 5.655%, to assist in working capital requirement. Note 11: Fair Value Measurements The value of the Group’s financial assets and financial liabilities are determined by its book value, which is also its fair value. Note 12: Share-based Payments a. On 16 March 2016, 200,000 Loyalty Options were granted to the Non-executive Chairman, John

Dixon for nil cash consideration. The options may be exercised at any time after the Vesting Date and prior to the Expiry Date. Share issued on exercise of these options will rank equally in all respects with then existing fully paid ordinary shares in the Company. The Options can only be transferred with the prior written consent of the Company.

b. Options granted to key management personnel are as follows:

Grant Date Number 16/03/2016 200,000

The Options will vest upon Mr Dixon remaining a Director of the Company until 7 September 2017 (representing 2 years of continuous service), or, if before 7 September 2017, Mr Dixon resigns at the request of the Company’s major shareholder or is removed by resolution (unless such removal is for cause). Once the 200,000 Loyalty Options vest, they may be exercised for nil consideration at any time before 31 December 2017, and 200,000 shares will be issued to Mr Dixon.

c. A summary of the movements of all Group options issues is as follows:

Number Weighted Average Exercise Price

Options outstanding as at 31 December 2015 - - Granted 200,000 - Forfeited - - Exercised - - Expired - -

Options outstanding as at 30 June 2016 200,000 -

d. No share granted to key management personnel as share-based payments during the half year

ending 30 June 2016.

For

per

sona

l use

onl

y


15

Note 13: Related Party Transactions

(i) Key management personnel:

Mr Yonghong Tang Managing director / general manager (Appointed 13/04/2015)

Mr Youxi Sun Executive director / vice general manager (Appointed 7/09/2015)

Mr Yangyu Zhu Executive director / vice general manager (Appointed 7/09/2015)

Mr John Dixon Non-executive chairman / director (Appointed 7/09/2015)

Ms Bronwyn Barnes Non-executive director (Appointed 7/09/2015)

Mr Dennis Wilkins Company secretary (Appointed 12/08/2015)

Mr Luo Qi Alternative director (Appointed on 17/06/2016)

Mr Min Wu Alternative director (Appointed on 17/06/2016)

Mr Yonghui Yu Chief financial officer – PRC

Ms Ru Shen Vice general manager - PRC

Mr Lei Du Operational general manager - PRC

(ii) Other related entities:

Other related entities include entities over which the director has joint control, entities in which the director hold a director’s position and individual shareholder:

Mr Yonghong Tang Shareholder

Sequoia Capital Asia Holdings Limited Shareholder

Mrs Jinxiang Wang Spouse of Managing Director

Mr Yonghui Yu and Mr Youxi Sun Shareholders of Sequoia Capital Asia Holdings Limited

Redstar Transport Pty Ltd A company in which Mr John Dixon is a shareholder and holding a director's role

Intermodal Staffing Pty Ltd A company in which Mr John Dixon is a shareholder and holding a director's role

Dixjac Pty Ltd A company in which Mr John Dixon is a shareholder and holding a director's role

Windward Resources Ltd A company in which Ms Bronwyn Barnes is holding an executive chair's role

Gumala Enterprises Ltd A company in which Ms Bronwyn Barnes is holding an independent director's role

DWCorporate Pty Ltd A company in which Mr Dennis Wilkins is the principal

Key Petroleum Limited A company in which Mr Dennis Wilkins is holding a non-executive director's role

TSX listed Mawson West Limited A company in which Mr Dennis Wilkins is holding a non-executive director's role

a. Amounts payable to related parties:

Consolidated Group


$ $

Other payables

(i) Loans from key management personnel:

Beginning of the year 27,551 1,064,786

Loan advanced - 480,567

Loan repayment received - (1,595,004)

Foreign currency translation difference (1,114) 77,202

End of the year 26,437 27,551

Related party balances comprise related party loans and no specific terms and conditions have been

attached to the above transactions. No interest is charged to or from related parties.

For

per

sona

l use

onl

y


16

Note 14: Offsetting Agreements

As at 30 June 2016, Jiancheng International Economic and Technical Cooperation Co., Ltd (the wholly owned main operating subsidiary) has a payable balance of AUD 1,622,480 to non-related party Ma'anshan Zhongji Chengjian Contruction Engineering Co., Ltd and the Company’s sponsored entity Ma'anshan Jiancheng Occupational Training School has a receivable balance of AUD 1,622,480 from Ma'anshan Zhongji Chengjian Contruction Engineering Co., Ltd.

The Group entered into a tripartite offsetting agreement on 30 June 2016 which gives the Group a legally enforceable right to offset its AUD 1,622,480 payable to Ma'anshan Zhongji Chengjian Contruction Engineering Co., Ltd and Ma'anshan Jiancheng Occupational Training School’s receivable for the same amount from Ma'anshan Zhongji Chengjian Contruction Engineering Co., Ltd as at half-year end 30 June 2016 and the Group intended to settle the liability and receivable in the future on a ‘net basis’.

On this basis, for the half-year ended 30 June2016, in accordance with AASB 132, the Group has offset in its consolidated financial statements its AUD 1,622,480 liability to Ma'anshan Zhongji Chengjian Contruction Engineering Co., Ltd against Ma'anshan Jiancheng Occupational Training School’s receivable for the same amount from Ma'anshan Zhongji Chengjian Contruction Engineering Co., Ltd, thereby recognising a net amount of AUD 0 in respect of the two balances.

For

per

sona

l use

onl

y


17

Note 15: Interests in subsidiaries

(a) Information about Principal Subsidiaries

The subsidiaries listed below have share capital consisting solely of ordinary shares or share capital

injection, which are held directly by the group unless otherwise stated. Each subsidiary’s principal place of

business is also its country of incorporation or registration.

Name of Subsidiary

Principal Place of Business

Ownership Interest Held by the Group

30 June 2016

31 December 2015

% % Jiancheng International Holdings Limited Hong Kong 100 100

Ma'anshan City Jiancheng Human Resources Service Limited

Anhui, China 100 100

Ma'anshan City Jiancheng International Economic and Technical Cooperation Co.,Ltd

Anhui, China 100 100

Ma'anshan Jiancheng Occupational Training School

Anhui, China N/A* N/A*

Subsidiary financial statements used in the preparation of these consolidated financial statements have also been prepared as at the same reporting date as the Group’s financial statements. *Refer 15(b) for information on ownership interest

(b) Significant Restrictions

Ma’anshan Jiancheng Occupational Training School is a not for profit entity and its constitution prohibits

realisation and distributions of its assets to its Sponsor, the parent company. The carrying amount of the

assets included within the consolidated financial statements to which these restrictions apply is as follows:

30 June 2016 31 December 2015 $ $ Current assets Cash and cash equivalents 8,558 152,853 Trade and other receivables 1,329 57,534

Total current assets 9,887 210,387

Non-current assets Property, plant and equipment 152,419 173,611

Total non-current assets 152,419 173,611

Total assets 162,306 383,998

The subsidiary’s contribution to the Group’s results for 30 June 2016 (AUD 256,793) is not available for distribution to the members of the Company. There are no other significant restrictions over the Group’s ability to settle liabilities of the Group.

For

per

sona

l use

onl

y


18

Note 16: Parent Entity Information JC International Group Limited (“the Company”) is a limited liability company, incorporated and domiciled in Australia on 13 April 2015


Statement of financial position $ $

Assets

Current assets 4,776,541 93,502

Non-current assets 50,000 50,000

Total Assets 4,826,541 143,502

Liabilities

Current liabilities 578,380 559,948

Non-current liabilities - -

Total Liabilities 578,380 559,948

Net Assets 4,248,161 (416,446)

Equity

Issued capital 5,309,542 50,001

Retained earnings (1,061,381) (466,447)

Total Equity 4,248,161 (416,446)

Total profit/(loss) (594,934) (466,447)

Total comprehensive income (594,934) (466,447)

The parent entity has no contingent liabilities or contingent assets as at 30 June 2016. .

For

per

sona

l use

onl

y

19

Director’s Declaration

In accordance with a resolution of the directors of JC International Group Limited, the directors of the company declare that: 1. The financial statements and notes, as set out on pages 4 to 18, are in accordance with the

Corporations Act 2001, including: a. complying with Accounting Standard AASB 134: Interim Financial Reporting; and b. giving a true and fair view of the consolidated entity’s financial position as at 30 June

2016 and of its performance for the half-year ended on that date.

2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

________________ Mr Yonghong Tang

Dated this 30th day of August 2016

For

per

sona

l use

onl

y

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF JC INTERNATIONAL GROUP LIMITED Report on the Half-year Financial Report We have reviewed the accompanying half-year financial report of JC International Group Limited and its controlled entities (the “Group”), which comprises the consolidated statement of financial position as at 30 June 2016, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity, and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration. Directors’ Responsibility for the Half-year Financial Report The directors of JC International Group Limited are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410: Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of JC International Group Limited’s financial position as at 30 June 2016 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of JC International Group Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Independence In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of JC International Group Limited, would be in the same terms if provided to the directors as at the time of this auditor’s review report.

For

per

sona

l use

onl

y

Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of JC International Group Limited is not in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of JC International Group Limited’s financial position as at 30 June

2016 and of its performance for the half-year ended on that date; and

(ii) complying with AASB 134: Interim Financial Reporting and the Corporations Regulations 2001.

ASSURANCE ADELAIDE PTY LTD (FORMERLY MOORE STEPHENS ASSURANCE ADELAIDE PTY LTD)

JIM GOUSKOS DIRECTOR ADELAIDE Dated this 30th day of August 2016

For

per

sona

l use

onl

y

JC International Group Limited CONSOLIDATED INTERIM ... · JC International Group Limited...

Documents

Transcript of JC International Group Limited CONSOLIDATED INTERIM ... · JC International Group Limited...