jc international group limited consolidated interim ... · to the directors of jc international...
TRANSCRIPT
JC International Group Limited CONSOLIDATED INTERIM FINANCIAL REPORT HALF-YEAR ENDED 30 JUNE 2017
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JC International Group Limited
Contents
Page
Directors’ 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
Directors’ Declaration 21
Independent Auditor’s Review Report 22
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JC International Group Limited
1
Directors' Report
Your Director submits the financial report of the Group for the half-year ended 30 June 2017.
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 11/08/2017
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 -
Review of operations
The consolidated profit of the Group for the financial half-year after providing for income tax amounted to AUD 3,537,937 (30 Jun 2016: AUD 4,870,514). The first half-year business performance of 2017 is described as below: The Group’s business has been growing continuously. The revenue for the first half of 2017 is AUD 33,787,726, showing a 13.5% growth compared with the revenue for the half-year ended 2016. Most of the revenue comes from the Group’s principal activity as contracted projects income. The Group incurred a foreign currency translation loss of $1,137,168 (30 June 2016: $1,117,174 loss) for the first half of 2017 due to the devaluation of RMB. The Group’s working capital for the half-year ended 2017 was $29,889,885 (31 December 2016: $23,447,400), which was a symbol of healthier working capital management by the Group. The Group is in the progress of 12 project contracts in four countries, i.e., Algeria, Bangladesh, China 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.
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JC International Group Limited
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Directors' Report
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 2017. This report is signed in accordance with a resolution of the Board of Directors. _____________________ Mr Yonghong Tang Dated this 31 day of August 2017
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An independent South Australian Partnership ABN 36 112 219 735 Pitcher Partners is an association of independent firms
Level 1, 100 Hutt Street, Adelaide SA 5000 Melbourne | Sydney | Perth | Adelaide | Brisbane| Newcastle Liability limited by a scheme approved under Professional Standards Legislation An independent member of Baker Tilly International
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AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF JC INTERNATIONAL GROUP LIMITED
In relation to the independent auditor’s review for the period ended 30 June 2017, to the best of my knowledge and belief there have been no contraventions of APES 110 Code of Ethics for Professional Accountants.
This declaration is in respect of JC International Group Limited and the entities it controlled during the year.
Jim Gouskos PITCHER PARTNERS Principal Adelaide
31 August 2017 F
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Consolidated Statement of Profit or Loss and Other Comprehensive Income for the Half-Year Ended 30 June 2017
Note Consolidated Group
Half-year Ended
30 June 2017 Half-year Ended
30 June 2016
$ $
Revenue 3 33,787,726 29,765,314
Cost of sales (27,506,607) (23,734,733)
Gross profit 6,281,119 6,030,581
Other income 3 96,308 1,804,514
Administration expenses (1,098,283) (1,089,784) Finance costs (320,982) (145,152)
Profit before income tax 4,958,162 6,600,159
Income tax expense (1,420,225) (1,729,645)
Profit for the half year 3,537,937 4,870,514
Other comprehensive income (1,137,168) (1,117,174)
Total comprehensive income for the half year 2,400,769 3,753,340
Total comprehensive income attributable to:
Members of the parent entity (the Company) 2,098,524 3,496,547
Ma’anshan Jiancheng Occupational Training School
302,245 256,793
Total comprehensive income for the half year 2,400,769 3,753,340
Earnings per share for profit attributable to the owners of JC International Group Limited
– basic earnings per share (cents) 6.21 8.55
– diluted earnings per share (cents) 5.88 8.52
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Consolidated Statement of Financial Position as at 30 June 2017
Note Consolidated Group
30 June 2017 31 December 2016
$ $
Current assets
Cash and cash equivalents 4 3,221,754 1,487,866
Trade and other receivables 5 62,279,646 52,616,713
Inventory 5,675 10,457
Other current assets 45,609 12,500
Total current assets 65,552,684 54,127,536
Non-current assets
Trade and other receivables 5 4,794,971 6,057,324
Property, plant and equipment 5,967,947 6,367,765
Intangible assets - Land use rights 363,532 380,543
Deferred tax assets 353,888 366,422
Total non-current assets 11,480,338 13,172,054
Total assets 77,033,022 67,299,590
Current liabilities
Trade and other payables 24,269,753 20,098,059
Short-term borrowings 6 7,202,259 7,457,344
Current tax liabilities 4,190,787 3,124,733
Total current liabilities 35,662,799 30,680,136
Total liabilities 35,662,799 30,680,136
Net assets 41,370,223 36,619,454
Equity
Share capital 7 9,991,585 9,991,585
Contributed share capital 8 2,350,000 -
Reserves 4,985,724 5,459,351
Retained earnings 24,042,914 21,168,518
Total equity 41,370,223 36,619,454 For
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Consolidated Statement of Changes in Equity for the Half-Year Ended 30 June 2017
Share Capital
Contributed Share Capital
Statutory Reserve
Training School Profits
Reserve
Foreign Currency
Translation Reserve
Retained Earnings
Consolidated Total
$ $ $ $ $ $ $
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
Balance at 1 January 2017
9,991,585 - 2,530,805 1,217,588 1,710,958 21,168,518 36,619,454
Private placement received during the half year
- 2,500,000 - - - - 2,500,000
Cost of private placement capitalised
- (150,000) - - - - (150,000)
Total comprehensive income for the half year
- - - - - 3,537,937 3,537,937
Transferred to Statutory Reserve
- - 361,296 - - (361,296) -
Transferred to Training School Profits Reserve
- - - 302,245 - (302,245) -
Other comprehensive income
- - - - (1,137,168) - (1,137,168)
Balance at 30 June 2017
9,991,585 2,350,000 2,892,101 1,519,833 573,790 24,042,914 41,370,223
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Consolidated Statement of Cash Flows for the Half-Year Ended 30 June 2017
Note Consolidated Group
Half-year Ended
30 June 2017 Half-year Ended
30 June 2016 $ $ Cash flows from operating activities Receipts from customers 23,544,606 23,402,665 Payments to suppliers and employees (23,428,176) (28,596,385) Interest received 964 18,548 Finance costs (320,982) (145,152) Income tax paid (247,527) (2,451,556)
Net cash provided by (used in) operating activities (451,115) (7,771,880)
Cash flows from investing activities Purchase of property, plant and equipment (31,254) (318,698)
Net cash provided by (used in) investing activities (31,254) (318,698)
Cash flows from financing activities Proceeds (Repayment) from (of) borrowings - 4,056,200 Cash receipts (Advanced) From (to) related parties 14(b), 14(c) (86,727) - Proceeds from issue of shares - 5,259,541 Proceeds received under subscription agreement 2,350,000 -
Net cash provided by (used in) financing activities 2,263,273 9,315,741
Net change in cash and cash equivalents held 1,780,904 1,225,163 Effect of exchange rates on cash holdings in foreign currencies (47,016) (188,191) Cash and cash equivalents at beginning of period 1,487,866 1,413,059
Cash and cash equivalents at end of period 4 3,221,754 2,450,031
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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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 2017
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
2016, together with any public announcements made during the following half-year.
These interim financial statements were authorised for issue on 31 August 2017.
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.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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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 2017 Half-year Ended
30 June 2016 $ $ Operating activities Contracted projects income 33,349,162 29,352,854 Labour brokerage income - 66,707 Training school income 438,564 345,753
Total Revenue 33,787,726 29,765,314
Non-operating activities Interest received 964 18,548 Government subsidies 94,936 1,785,966 Other non-operating income 408 -
Other Income 96,308 1,804,514
Note 4: Cash and Cash Equivalents Cash and Cash Equivalents include cash on hand (AUD 353,444) and cash at bank (AUD 2,868,310) as at 30 June 2017.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 5: Trade and Other Receivables
Note Consolidated Group 30 June 2017 31 December 2016 $ $ Current Trade receivables 32,968,367 20,690,146 Note receivables - - Other receivables 148,190 138,772 Contracted project costs 5(a) 29,163,089 31,787,795 Total current trade and other receivables 62,279,646 52,616,713 Non - Current Trade receivables 1,665,775 1,832,930 Other receivables 4,544,749 5,690,082 Provision for impairment (1,415,553) (1,465,688) Total non-current trade and other receivables 4,794,971 6,057,324
a. Contracted project costs
Consolidated Group 30 June 2017 31 December 2016 $ $ Contracted project costs incurred 188,821,170 167,955,105 Recognised profits 46,661,309 41,862,661
235,482,479 209,817,766 Progress billings (206,319,390) (178,029,971) Provision for expected loss on contracted project - -
Total Contracted Project Costs 29,163,089 31,787,795
As at 30 June 2017, trade receivable included retentions of AUD 5,418,624 (31 December 2016: AUD 6,088,014) related to contracted project in progress.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 5: Trade and Other Receivables (Cont)
The Group has no significant concentration of credit risk with respect to any single counterparty or group of counterparties. 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 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 2017
Trade receivables 34,634,142 - 362,942 1,302,833 - - 32,968,367
Other receivables 4,664,235 - 114,880 4,004,456 - - 544,899
Contracted project costs
29,163,089 - - - - - 29,163,089
Total 68,461,466 - 477,822 5,307,289 - - 62,676,355
Consolidated Group
31 December 2016
Trade receivables 21,057,389 - 327,350 1,119,200 306,380 - 19,224,459
Other receivables 5,828,854 - 118,949 3,380,663 - - 2,329,242
Contracted project costs
31,787,795 - - - - - 31,787,795
Total 58,674,038 - 446,299 4,579,863 306,380 - 53,341,496
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 2017 31 December 2016 $ $ Opening Balance 1,465,688 1,557,799 Impairment (write back) incurred for the period - - Write-off incurred for the period - - Foreign currency translation difference (50,135) (92,111)
Closing Balance 1,415,553 1,465,688
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 6: Short-term Borrowings
Consolidated Group 30 June 2017 Maturity Date 31 December 2016 $ $ Current Bank loan secured: - Huishang Bank (HSB) 1,440,452 29/09/2017 1,491,469 - Shanghai Pudong Development Bank (SPD)
960,302 27/12/2017
994,312
- Dangtu Xinhua Town Bank (XHB) 1,920,602 09/03/2018 1,988,625 - Agricultural Bank of China Dangtu Branch (ABC)
960,301 16/05/2018 2,982,938
- Agricultural Bank of China Dangtu Branch (ABC)
960,301 24/05/2018 -
- Agricultural Bank of China Dangtu Branch (ABC)
960,301 05/07/2017 -
Total Short-term Borrowings 7,202,259 7,457,344
In 2017, the bank borrowings from XHB and ABC were renewed. Interest is charged at 7.80% by HSB, 4.785% by SPD, 6.09% 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 $5,367,455 (2016: $5,705,194). The bank borrowings from SPD and 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. The bank borrowings from XHB are secured by personal guarantees of the Director, Mr Yonghong Tang and his wife, Mrs Jinxiang Wang. Note 7: Issued Capital
Consolidated Group
30 June 2017 31 December
2016 $ $ At the beginning of reporting period 9,991,585 4,732,045 Shares issued during the year Transaction costs
- -
5,584,765 (325,225)
Total Issued Capital 9,991,585 9,991,585
The company has authorised share capital amounting to 56,980,955 ordinary shares.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 7: Issued Capital (con’t)
a. Ordinary shares
Consolidated Group
30 June 2017 31 December
2016 No. No. At the beginning of the reporting period 56,980,955 50,000,000 Shares issued during the year:
- 23 March 2016 - 6,980,955
Total Issued Capital 56,980,955 56,980,955
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: Contributed Share Capital
On 29 June 2017, the Group entered a subscription agreement with Mr Jiatuan Lin. As per the subscription agreement, the Group will issue 2,996,883 fully paid ordinary shares at the price of $0.8342 no later than 30 June 2017 or at any other time agreed to the Group and the investor.
The Group received AUD 2,500,000 from Mr Jiatuan Lin on 16 June 2017 and incurred AUD 150,000 success fee for the fund raised. 2,996,883 ordinary shares were issued on 3 July 2017 pursuant to the subscription agreement.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 9: 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 2017 approximately 70% (2016: 75%) of the Group’s external revenue was derived from subcontracting workforce to one customer. Note 10: Contingent Liabilities There has been no change in contingent liabilities since the last reporting period. Note 11: Events after the End of the Interim Period On 3 July 2017, the Company issued 2,996,883 fully paid ordinary shares at $0.8342 to Mr Jiatuan Lin pursuant to the Subscription Agreement entered on 29 June 2017. Note 12: Fair Value Measurements The value of the Group’s financial assets and financial liabilities are determined by its book value, which is a reasonable approximation of fair value.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 13: 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 2016 200,000 - Granted - - Forfeited - - Exercised - - Expired - -
Options outstanding as at 30 June 2017 200,000 -
d. No share were granted to key management personnel as share-based payments during the half
year ending 30 June 2017.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 14: 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 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
AOJIN Group Pty Ltd A company in which Mr Luo Qi is a shareholder and holding a director's role and a secretary’s role
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 14: Related Party Transactions (con’t)
a. Transaction with related parties:
Transactions between related parties are on normal commercial terms and conditions no more favourable than
those available to other parties unless otherwise stated.
Consolidated Group
30 June 2017 31 December 2016
$ $
(i) Other related entities:
Purchase of goods and services:
Success fee paid to AOJIN Group Pty Ltd for fund raised
150,000 -
b. Amounts receivable from related parties:
Consolidated Group
30 June 2017 31 December 2016
$ $
Other receivables
(i) Loans from key management personnel:
Beginning of the year - -
Loan advanced 60,828 -
Loan repayment received (23) -
Foreign currency translation difference 564 -
End of the year 61,369 -
c. Amounts payable to related parties:
Consolidated Group
30 June 2017 31 December 2016
$ $
Other payables
(i) Loans from key management personnel:
Beginning of the year 25,922 27,551
Loan advanced - -
Loan repayment made (25,922) -
Foreign currency translation difference - (1,629)
End of the year - 25,922
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.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 15: Offsetting Agreements
As at 30 June 2017, Jiancheng International Economic and Technical Cooperation Co., Ltd (the wholly owned main operating subsidiary) has a payable balance of AUD 1,536,482 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 1,536,482 from Ma'anshan Zhongji Chengjian Contruction Engineering Co., Ltd.
The Group entered into a tripartite offsetting agreement on 30 June 2017 which gives the Group a legally enforceable right to offset its AUD 1,536,482 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 2017 and the Group intends to settle the liability and receivable in the future on a ‘net basis’.
On this basis, for the half-year ended 30 June 2017, in accordance with AASB 132, the Group has offset in its consolidated financial statements its AUD 1,536,482 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.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 16: 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 2017
31 December 2016
% % Jiancheng International Holdings Limited Hong Kong 100 100
Ma'anshan City Jiancheng Human Resources Service Limited
Anhui, China 100 100
Anhui 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 2017 31 December 2016 $ $ Current assets Cash and cash equivalents 16,565 41,988 Trade and other receivables 2,585 35,857
Total current assets 19,150 77,845
Non-current assets Property, plant and equipment 117,503 135,558
Total non-current assets 117,503 135,558
Total assets 136,653 213,403
The subsidiary’s contribution to the Group’s results for 30 June 2017 (AUD 302,245) 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.
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JC International Group Limited Notes to Financial Statements For the half-year ended 30 June 2017
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Note 17: Parent Entity Information JC International Group Limited (“the Company”) is a limited liability company, incorporated and domiciled in Australia on 13 April 2015
30 June 2017 31 December 2016
Statement of financial position $ $
Assets
Current assets 6,440,672 4,440,561
Non-current assets 50,000 50,000
Total Assets 6,490,672 4,490,561
Liabilities
Current liabilities 668,719 641,429
Non-current liabilities - -
Total Liabilities 668,719 641,429
Net Assets 5,821,953 3,849,132
Equity
Issued capital 5,309,542 5,309,542
Contributed share capital 2,350,000 -
Retained earnings (1,837,589) (1,460,410)
Total Equity 5,821,953 3,849,132
Total profit/(loss) (377,179) (993,962)
Total comprehensive income/(loss) (377,179) (993,962)
The parent entity has no contingent liabilities or contingent assets as at 30 June 2017. .
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JC International Group Limited
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Directors’ 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 20, 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
2017 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
Date 31 August 2017
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An independent South Australian Partnership ABN 36 112 219 735 Pitcher Partners is an association of independent firms Level 1, 100 Hutt Street, Adelaide SA 5000 Melbourne | Sydney | Perth | Adelaide | Brisbane| Newcastle Liability limited by a scheme approved under Professional Standards Legislation An independent member of Baker Tilly International
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 2017, 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 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 2017 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 other 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.
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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
2017 and of its performance for the half-year ended on that date; and
(ii) complying with Accounting Standard AASB 134: Interim Financial Reporting and Corporations Regulations 2001.
JIM GOUSKOS PITCHER PARTNERS Principal ADELAIDE Dated this 31st day of August 2017
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