Aseana Prop. Regulatory News (ASPL)

26 August 2016

Aseana Properties Limited("Aseana" or the "Company")

Half-Year Results for the Six Months Ended 30 June 2016

Aseana Properties Limited (LSE: ASPL), a property developer investing in Malaysia and Vietnam, listed on the Main Market of the London Stock Exchange, announces its unaudited half-year results for the six-month period ended 30 June 2016.

Operational highlights:

· Aseana disposed of the Aloft Kuala Lumpur Sentral Hotel ("Aloft") to Prosper Group Holdings for a gross transaction value of RM418.7 million (approximately US$104.2 million) and the transaction was completed on 23 June 2016.

· The cinema located at the Harbour Mall Sandakan ("HMS") opened for business on 30 July 2016 and the mall is approximately 62% let.

· SENI Mont' Kiara ("SENI") achieved approximately 97% sales to date.

· The RuMa Hotel and Residences ("The RuMa") achieved approximately 56% sales based on sales and purchase agreement signed.

· Four Points by Sheraton Sandakan Hotel ("FPSS") recorded an average occupancy rate of approximately 35% for the six-month period ended 30 June 2016.

· Since the period end, Aseana disposed of an additional 2.2 million Nam Long shares in August 2016 at an average price of VND21,837 per share generating gross proceeds of approximately US$2.1 million. Following the recent disposal of shares and Nam Long's Employee Stock Ownership Plan ("ESOP") exercise, Aseana's stake in Nam Long now stands at 3.95%.

Financial highlights:

· Revenue of US$3.9 million for the six-month period ended 30 June 2016 (H1 2015: US$16.9 million)

· Profit before tax for the six-month period ended 30 June 2016 of US$29.2 million (H1 2015: loss of US$5.1 million)

· Profit after tax for the six-month period ended 30 June 2016 of US$28.9 million (H1 2015: loss of US$6.6 million)

· Consolidated comprehensive income of US$33.5 million for the six months period ended 30 June 2016 (H1 2015: loss of US$14.1 million)

· Net asset value of US$165.0 million at 30 June 2016 (31 December 2015 (audited): US$130.2 million) or US$0.778 per share* (31 December 2015 (audited): US$0.614 per share)

· Realisable net asset value of US$209.7 million at 30 June 2016 (31 December 2015 (unaudited): US$209.6 million) or US$0.989 per share* (31 December 2015 (unaudited): US$0.989 per share)

· Following the completion of the Aloft disposal, RM394.0 million (US$97.7 million) of Medium Term Notes ("MTNs") associated with the Aloft and the Sandakan Harbour Square properties have been repaid as at 19 August 2016, resulting in a reduction of Aseana's gearing level from 1.1 to 0.6 times.

* NAV per share and RNAV per share as at 30 June 2016 are calculated based on 212,025,000 voting shares (31 December 2015: 212,025,000 voting shares).

First Distribution Update:

Following completion of the disposal of the Aloft hotel, the Manager is engaging further with the lenders to seek necessary consents for the capital distribution. Consideration will be given to make further capital distributions based on the availability of surplus cash within the Company and the receipt of consents from the lenders. A further announcement will be made when there is further clarity on the progress and timeline of obtaining these consents.

Commenting on the results, Mohammed Azlan Hashim, Chairman of Aseana, said:

"The Group's results have turned around positively following the disposal of the Aloft and the proceeds were used to repay borrowings. However, general business conditions continued to be affected by the weak economy and poor property market sentiment especially in Malaysia. Nevertheless, the Board and the Manager are continuing their efforts to achieve optimum performance and value for the Group's assets and repositioning the Group's portfolio to capture any recovery and growth of both the economy and property markets in Malaysia and Vietnam. "

The Group has also published its Quarterly Investment Update (including updates on projects and RNAV figures) for the period to 30 June 2016, which can be obtained on its website at www.aseanaproperties.com/quarterly.htm.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 which is disclosed in accordance with the Market Abuse Regulation.

For further information:

Notes to Editors:

London-listed Aseana Properties Limited (LSE: ASPL) is a property developer investing in Malaysia and Vietnam.

Ireka Development Management Sdn Bhd ("IDM") is the exclusive Development Manager for Aseana. It is a wholly-owned subsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysia since 1993, which has over 49 years' experience in construction and property development. IDM is responsible for the day-to-day management of Aseana's property portfolio.

CHAIRMAN'S STATEMENT

Introduction

I am pleased to report on the half-year results for Aseana Properties Limited ("Aseana") and its group of companies (the "Group") for the six months ended 30 June 2016.

The global recovery continued during the first half of the year, but at an increasingly fragile pace and is still struggling to regain momentum. Major macroeconomic realignments are affecting prospects differently across countries and regions. Growth continues to falter in advanced economies and the overall growth in the emerging market and developing economies remains below potential. Global growth prospects have become more susceptible to increased downside risks. However, some improved data releases such as the firming oil prices, lower capital outflows from China and decisions by major central banks in recent months have all contributed to improved sentiment. Despite the slower growth recorded in the early part of the year, Malaysia's economy continues to display an underlying resilience supported by strong domestic demand and positive employment growth. Malaysia recorded a Gross Domestic Product ("GDP") growth of 4.1% in the first half of the year. Fiscal reform measures such as the introduction of the Goods and Services Tax ("GST") in April last year and subsidy rationalization have been effective in shielding the country from the effects of lower oil related revenues, capital outflows and domestic political controversy. In July, the central bank of Malaysia unexpectedly slashed the Overnight Policy Rate by 25 basis points to 3.0%, the first cut in seven years with the intention of helping the country to remain on a steady growth path.

Vietnam's economy slowed in the first half of 2016 after the country suffered a historic drought which took a heavy toll on the country's agricultural sector. In addition, the less active global trade and investment, unpredictable upheavals in the world's financial and monetary markets have also adversely affected Vietnam's economy. GDP growth dropped to 5.5% during the first half of 2016 compared to 6.3% during the same period last year. Notwithstanding the drop in GDP growth, Foreign Direct Investment ("FDI") continued to be the highlight for the Vietnamese economy in the first half of the year. Total FDI registered in Vietnam reached more than US$11.3 billion for the first six months of the year, a significant surge of 105.4% against the same period last year.

Results

For the six months ended 30 June 2016, the Group recorded unaudited revenue of US$3.9 million (H1 2015: US$16.9 million), which was mainly attributable to the sale of completed units in SENI Mont' Kiara. No revenue was recognised for The RuMa, in accordance with IFRIC 15 - Agreements for Construction of Real Estate which prescribes that revenue be recognised only when the properties are completed and occupancy permits are issued.

The Group recorded an unaudited profit before tax for the period of US$29.2 million (H1 2015: loss of US$5.1 million), predominantly due to the gain on disposal of the Aloft of US$36.3 million, which was offset by operating losses and financing costs of City International Hospital of US$4.2 million and of Four Points by Sheraton Sandakan Hotel and Harbour Mall Sandakan totaling US$2.3 million.

The Group's unaudited profit after tax for the six-months ended 30 June 2015 stood at US$28.9 million (H1 2015: loss of US$6.6 million). The Group's unaudited consolidated comprehensive profit for the period of US$33.5 million (H1 2015: loss of US$14.1 million) has included a foreign currency translation gain of US$5.2 million (H1 2015: loss of US$8.1 million) which was attributable to the strengthening of the Malaysian Ringgit against the US Dollar by 6.1%, but offset by a decrease in fair value of the share of investment in Nam Long of US$0.6 million.

Unaudited net asset value for the Group for the period under review increased to US$165.0 million (31 December 2015 (audited): US$130.2 million) due to the gain recorded on sale of the Aloft during the period. This is equivalent to US$0.778 per share (31 December 2015 (audited): US$0.614 per share). Meanwhile, unaudited realisable net asset value for the Group increased slightly to US$209.7 million as at 30 June 2016 (31 December 2015 (unaudited): US$209.6 million). This is equivalent to US$0.989 per share (31 December 2015 (unaudited): US$0.989 per share).

Review of Activities and Property Portfolio

Sales status (based on Sales and Purchase agreements signed):

Malaysia

The disposal of the Aloft hotel to Prosper Group Holdings Limited for a gross transaction value of RM418.7 million (approximately US$104.2 million) was completed on 23 June 2016. The disposal represents a significant milestone in the divestment investment policy approved by Shareholders, pursuant to which the Company is seeking to realise the Company's assets in a controlled, orderly and timely manner.

In light of the slowdown in the Malaysian property sector as a result of a number of external and domestic shocks, the sales performance of both SENI and The RuMa have been adversely affected. To date, SENI has recorded approximately 97% sales based on sales and purchase agreements signed.

Meanwhile, sales at the RuMa progressed marginally to 56% to date. The Manager participated in marketing, and promotional events and activities both locally and internationally to boost sales, and is planning further activities throughout the rest of the year, focusing on China and Taiwan. Construction of the main building is underway and completion is expected in Q3 2017.

In Sabah, the overall economic condition remains gloomy and the adverse travel advisory notices for travels to the coastal areas of Sabah issued by several countries are still in place. Against a backdrop of weak market sentiment, FPSS recorded an average occupancy rate of 35% for the six-months to 30 June 2016. However, the outlook for HMS looks more promising with the signing of a number of new tenants which lifted the occupancy rate of the mall to approximately 62% to date. The Lotus Five Star ("LFS") Cinema was officially launched by Sabah's Chief Minister, Datuk Seri Panglima Musa Aman on 30 July 2016. The cinema which is located on the 11th floor of the mall is a modern purpose built cinema with seven digital screens, 1,000 seats and is equipped with the most advanced audio and visual technology.

Aseana will continue its efforts to dispose of the remaining units of SENI and to increase the sales at The RuMa. In addition, the Company will continue to strive to achieve optimum performance and value for the Group's assets, in line with the Company's commitment to realise its assets at the appropriate time and manner.

Vietnam

The performance of City International Hospital ("CIH") has seen consistent improvement over the past six months. As at 15 August 2016, CIH had registered 3,938 in-patient days (15 August 2015: 2,561), equivalent to a daily average of 16 in-patient days (15 August 2015: 12), with an average revenue per in-patient day of US$512.1 (15 August 2015: US$525.6). Outpatients visits as at 15 August 2016 had reached 18,665 visits (15 August 2015: 11,049), equivalent to an average of 101 outpatients daily (15 August 2015: 64), which generated average revenue per visit of US$91.3 (15 August 2015: US$101.7). Dr Le Quoc Su, an experienced Chief Executive Officer with a proven track record in the Vietnamese healthcare sector, has been appointed to lead the operations team at CIH following the cessation of Parkway Pantai Limited as the operator of CIH. The new hospital management under Dr Le Quoc Su's leadership is working hard to improve the cost structure and efficiency of operations, and at the same time growing revenue streams through improved awareness and new service lines.

Meanwhile, Nam Long Investment Corporation ("Nam Long") has recently launched 450 affordable villas and townhouses under the Valora brand name. On the back of its commendable performance, Nam Long was recently crowned the Best Developer 2016 during the second annual Vietnam Property Awards gala dinner. On top of that, Nam Long was also awarded with another top accolade which is the Special Recognition in Corporate Social Responsibility ("CSR") for its efforts in creating long-term benefits for local Vietnamese Communities through fundraising, sustainable urban planning campaigns and construction of schools. Aseana has successfully realised a further 2.2 million Nam Long shares in August 2016 at an average price of VND21,837 per share generating gross proceeds of approximately US$2.1 million. Following the recent disposals and an increase in Nam Long's issued share capital due to an ESOP exercise, Aseana's stake in Nam Long now stands at 3.95% (5.5% as at 30 June 2016). The disposal reflects Aseana's on-going effort to strategically divest its holding in Nam long at the appropriate time and price. At the date of this publication, Nam Long shares closed at VND 21,600 per share.

Passing of Non-Executive Director

It is with great regret that the Board of Aseana Properties Limited reports that Dato' Seri Ismail Shahudin passed away on 30 July 2016. 

On behalf of the Company and its shareholders, the Board would like to express its recognition and gratitude for his dedication over many years of service as a director, and to express its sympathy and condolences to his family.

MOHAMMED AZLAN HASHIM

Chairman

25 August 2016

Despite its solid macroeconomic fundamentals, Malaysia has been adversely affected by the lingering decline in commodity prices, China's growth slowdown and political uncertainties in the country. These factors combined have impaired the confidence of investors. The recovery in oil and gas prices during the first three months of 2016 saw the Ringgit surged 10.1% in the first quarter. However, the gains proved to be short-lived as oil prices faltered in the second quarter, leading to weaker exports and an easing in private investment. Despite outperforming all other regional currencies in the first quarter of the year, the Ringgit dwindled 3.3% in the second quarter. Meanwhile, domestic demand continues to be the main driver of growth, albeit its pace is expected to have slowed. The Malaysian economy registered a Gross Domestic Product growth ("GDP") of 4.0% in the second quarter of 2016 and 4.1% in the first half of 2016.

The central bank of Malaysia, Bank Negara Malaysia ("BNM") surprised markets in July 2016 by cutting its key interest rate for the first time in seven years. BNM unexpectedly cut the Overnight Policy Rate ("OPR") by 25 basis points to 3.0% due to the uncertainties in the global environment, which could negatively impact Malaysia's growth prospects. The cut in OPR will likely have a positive impact on borrowers and the property sector as well as lowering inflation forecasts for the year. Inflation is projected to be lower at 2.0% to 3.0% in 2016, compared to an earlier projection of 2.5% to 3.5%.

Notwithstanding weaker external demand, the Consumer Sentiment Index issued by the Malaysian Institute of Economic Research exhibited a slight increase of 5.6 points quarter-on-quarter to 78.5 points, albeit still below the threshold level of 100 points as consumer confidence level remains low. Job security and household income are the key concerns among consumers amidst the current state of economy. Business Conditions Index on the other hand, gained 13.6 points quarter-on-quarter to settle at 106.4 points, surpassing the 100-point threshold, indicating that manufacturing activities are making a recovery.

In the World Competitiveness Yearbook 2016, Malaysia's performance has declined to 19th position compared to 14th out of 61 economies last year. However, Malaysia's engagement in a new generation of regional agreements such as the Trans-Pacific Partnership Agreement and the European Union Free Trade Agreement can provide the needed impetus to boost Malaysia's economy to greater heights. These agreements help to attract investments, provide greater access to more advanced skills and technologies and also provide a platform to open up the Malaysian exports of goods and services to the rest of the world. That being said, the Foreign Direct Investment in Malaysia recorded a net inflow of RM8.8 billion in the second quarter of the year, compared to a net inflow of RM15.0 billion in the first quarter of 2016.

Source: Bank Negara Malaysia website, Jones Lang Wootton Q2 report, MIER, various publications

Exchange rate - 30 June 2016: US$1:RM4.0323

The first half of the year saw a dip in Vietnam's economic growth as a result of global economic volatility as well as the disappointing agricultural output that was severely hit by unfortunate weather conditions. Vietnam's GDP growth contracted to 5.5%, marking its first slowdown in economic growth since 2014. The World Bank has recently revised Vietnam's growth forecast downward to 6.0% from 6.2% due to the severe impact of the drought and slowing growth in key industries. However, robust export growth, buoyant private consumption and higher Foreign Direct Investment ("FDI") inflows are expected to offset the impact of lower agricultural yield and help the economy to recover in the second half of the year.

Apart from that, rising food prices due to the crippling drought are pushing up inflation, which may exceed the Vietnamese Government's 5.0% target for the year. Vietnam's Consumer Price Index for the first six months of the year rose by 1.7% as compared to the same period in 2015. Planned hikes in health care and education services, minimum wage as well as the rising global commodity prices are expected to place upward pressure on the country's inflation.

FDI continued to be the highlight of the Vietnamese economy during the first half of the year. Total FDI registered in Vietnam reached more than US$11.3 billion, a significant surge of 105.4% against the same period last year, with most of the funds going to manufacturing, processing and real estate projects. In addition, the total disbursed FDI escalated to an estimated US$7.3 billion in the six-month period, a year-on-year increase of 15.1%. On the back of the Free Trade Agreements that Vietnam has established over the last couple of years, the biggest being the Trans-Pacific Partnership Agreement , Vietnam has emerged as an attractive investment destination to foreign investors.

Meanwhile, Vietnam posted a trade surplus of approximately US$1.5 billion in the first six months of the year, owing to strong exports to major markets. Export revenue reached US$82.2 billion, a year-on-year increase of 5.9%, and spent US$80.7 billion on imports, down 0.5% over the same period last year. Foreign-invested enterprises are the main contributors to Vietnam's trade surplus as their exports have been US$11.2 billion higher than their imports while domestic firms have caused a trade deficit of US$9.7 billion for the six-month period.

The introduction of visa waivers to a number of European countries by the Vietnamese Government has paid off. Foreign arrivals to Vietnam recovered strongly after a year of lukewarm performance, with more than 4.7 million foreign visitors recorded in the first half of 2016. This is an increase of 21.3% compared to the same period last year. It is expected that with Vietnam's political stability and the gradual effort by the Government in loosening the visa regulations, the country's tourism industry should see a similar growth moving forward.

Source: General Statistics Office of Vietnam, Savills, CBRE, various publications

Exchange rate - 30 June 2016: US$1:VND22,305

LAI VOON HON

President / Chief Executive Officer

Ireka Development Management Sdn. Bhd.

Development Manager

25 August 2016

PROPERTY PORTFOLIO AS AT 30 JUNE 2016

*Shareholding as at 30 June 2016

n/a: Not available / not applicable

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 JuNE 2016 - Unaudited

* represents 2 management shares at US$0.05 each

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 JuNE 2015 - Unaudited

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 DECEMBER 2015 - audited

* represents 2 management shares at US$0.05 each

(ii) During the financial period/year, US$113,000 (30 June 2015: US$757,000; 31 December 2015: US$2,498,000) of ordinary shares of subsidiaries were issued to non-controlling shareholders, of which US$113,000 (30 June 2015: US$757,000; 31 December 2015: US$1,058,000) was satisfied via cash consideration. The remaining of US$1,440,000 was satisfied via capitalisation of amount due to non-controlling interests for 31 December 2015.

* represents 2 management shares at US$0.05 each

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2016

1 General Information

The principal activities of the Group are acquisition, development and redevelopment of upscale residential, commercial, hospitality and healthcare projects in the major cities of Malaysia and Vietnam. The Group typically invests in development projects at the pre-construction stage and may also selectively invests in projects in construction and newly completed projects with potential capital appreciation.

2 Summary of Significant Accounting Policies

2.1 Basis of Preparation

The interim condensed consolidated financial statements for the six months ended 30 June 2016 has been prepared in accordance with IAS 34, Interim Financial Reporting.

The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2015 which has been prepared in accordance with IFRS.

Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings.

The interim results have not been audited nor reviewed and do not constitute statutory financial statements.

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2015 as described in those annual financial statements.

The interim report and financial statements were approved by the Board of Directors on 25 August 2016.

3 SegmentAL Information

The Group's assets and business activities are managed by Ireka Development Management Sdn. Bhd. ("IDM") as the Development Manager under a management agreement dated 27 March 2007.

Segmental information represents the level at which financial information is reported to the Executive Management of IDM, being the chief operating decision maker as defined in IFRS 8. The Executive Management consists of the Chief Executive Officer, the Chief Financial Officer, Chief Operating Officer and Chief Investment Officer of IDM. The management determines the operating segments based on reports reviewed and used by the Executive Management for strategic decision making and resource allocation. For management purposes, the Group is organised into project units.

The Group's reportable operating segments are as follows:

(i) Investment Holding Companies - investing activities;

(ii) Ireka Land Sdn. Bhd. - develops Tiffani by i-ZEN;

(iii) ICSD Ventures Sdn. Bhd. - owns and operates Harbour Mall Sandakan and Four Points by Sheraton Sandakan Hotel;

(iv) Amatir Resources Sdn. Bhd. - develops SENI Mont' Kiara;

(v) Iringan Flora Sdn. Bhd. - owns and operates Aloft Kuala Lumpur Sentral Hotel;

(vi) Urban DNA Sdn. Bhd.- develops The RuMa Hotel and Residences; and

(vii) Hoa Lam-Shangri-La Healthcare Group - master developer of International Healthcare Park; owns and operates City International Hospital.

Other non-reportable segments comprise the Group's other development projects. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2016 and 2015.

Information regarding the operations of each reportable segment is included below. The Executive Management monitors the operating results of each segment for the purpose of performance assessments and making decisions on resource allocation. Performance is based on segment gross profit/(loss) and profit/(loss) before taxation, which the Executive Management believes are the most relevant in evaluating the results relative to other entities in the industry. Segment assets and liabilities are presented inclusive of inter-segment balances and inter-segment pricing is determined on an arm's length basis.

The Group's revenue generating development projects are in Malaysia and Vietnam.

Operating Segments - ended 30 June 2016 - Unaudited

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

Operating Segments - ended 30 June 2015 - Unaudited

# Cost of acquisition relates to the fair value adjustment in relation to the inventories upon the acquisition of certain subsidiaries of the Group. The cost of acquisition written down is charged to profit or loss as part of cost of sales upon the sales of these inventories.

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

Operating Segments - ended 31 December 2015 - Audited

# Cost of acquisition relates to the fair value adjustment in relation to the inventories upon the acquisition of certain subsidiaries of the Group. The cost of acquisition written down is charged to profit or loss as part of cost of sales upon the sales of these inventories.

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

* Included in segment assets for other non-reporting segment is US102.46 million (RM413.13 million) represent the consideration received for the disposal of Aloft Hotel which had been transferred by the buyer into Silver Sparrow's bank account as at 23 June 2016. Subsequent to 30 June 2016, the Group had redeemed the MTN for Series 3 amounting US$66.71 million (RM269.00 million) and MTN for Series 2 amounting US$31.00 million (RM125.00 million) by using the consideration received.

Geographical Information - ended 30 June 2016 - Unaudited

For the financial period ended 30 June 2016, no single customer exceeded 10% of the Group's total revenue.

Geographical Information - ended 30 June 2015 - Unaudited

For the financial period ended 30 June 2015, no single customer exceeded 10% of the Group's total revenue.

Geographical Information - ended 31 December 2015 - Audited

For the financial year ended 31 December 2015, no single customer exceeded 10% of the Group's total revenue.

4 Seasonality

The Group's business operations have not been materially affected by seasonal factors for the period under review.

5 Cost of Sales

6 Foreign exchange (loss)/GAIN

7 Taxation

The numerical reconciliation between the income tax expense and the product of accounting results multiplied by the applicable tax rate is computed as follows:

The applicable corporate tax rate in Malaysia is 24%.

The Company is treated as a tax resident of Jersey for the purpose of Jersey tax laws and is subject to a tax rate of 0%.

The applicable corporate tax rates in Singapore and Vietnam are 17% and 22% respectively.

A subsidiary of the Group, Hoa Lam-Shangri-La Healthcare Ltd Liability Co is granted preferential corporate tax rate of 10% for the results of the hospital operations. The preferential income tax is given by the government of Vietnam due to the subsidiary's involvement in the healthcare industry.

A Goods and Services Tax was introduced in Jersey in May 2008. The Company has been registered as an International Services Entity so it does not have to charge or pay local GST. The cost for this registration is £200 per annum.

The Directors intend to conduct the Group's affairs such that the central management and control is not exercised in the United Kingdom and so that neither the Company nor any of its subsidiaries carries on any trade in the United Kingdom. The Company and its subsidiaries will thus not be residents in the United Kingdom for taxation purposes. On this basis, they will not be liable for United Kingdom taxation on their income and gains other than income derived from a United Kingdom source.

8 EARNINGS/(LOSS) Per Share

Basic and diluted earnings/(loss) per ordinary share

The calculation of basic and diluted earnings/(loss) per ordinary share for the period/year ended was based on the profit/(loss) attributable to equity holders of the parent and a weighted average number of ordinary shares outstanding, calculated as below:

9 Loans and Borrowings