SUNVIC CHEMICAL HOLDINGS LIMITED (Registration Number: E)

Transcription

1 SUNVIC CHEMICAL HOLDINGS LIMITED (Registration Number: E) Financial Statement and Dividend Announcement for the Third Quarter Ended INFORMATION REQUIRED FOR ANNOUNCEMENT OF THIRD QUARTER RESULTS 1(a) A statement of comprehensive income for the group together with a comparative statement for the corresponding period of the immediately preceding financial year. Statement of Comprehensive Income Q Q /(-) /(-) RMB 000 RMB 000 % RMB 000 RMB 000 % Revenue 1,603,651 1,080, ,486,940 2,935, Cost of sales (1,373,543) (989,616) 38.8 (3,878,483) (2,648,062) 46.5 Gross profit 230,108 91, , , Other operating income 18,050 10, ,585 25, Distribution expenses (48,186) (30,876) 56.1 (119,689) (86,722) 38.0 Administrative expenses (35,252) (28,818) 22.3 (83,027) (77,297) 7.4 Other operating expenses (15,168) (2,406) (19,116) (10,157) 88.2 Results from operating activities 149,552 39, , , Finance expenses (39,921) (44,919) (11.1) (113,682) (122,210) (7.0) Profit/(loss) before income tax 109,631 (5,592) NM 301,528 17, Income tax (expense)/credit (23,374) 1,146 NM (62,101) (4,984) Profit for the period 86,257 (4,446) NM 239,427 12, Other comprehensive income Translation differences relating to financial statements of subsidiaries with functional currencies other than RMB (682) 490 (239.2) (4,961) 8,676 (157.2) Total comprehensive income for the period 85,575 (3,956) NM 234,466 20, Attributable to: Owners of the Company 85,538 (3,474) NM 234,449 21, Non-controlling interests 37 (482) (977) Total comprehensive income for the period 85,575 (3,956) NM 234,466 20,

2 The following items have been included in arriving at profit/(loss) before income tax:- Q Q /(-) /(-) RMB 000 RMB 000 % RMB 000 RMB 000 % Interest income (8,847) (9,974) (11.3) (15,856) (21,277) (25.5) Exchange loss/(gain), net 747 2,556 (70.8) (1,993) 10, Depreciation of property, plant and equipment 59,038 41, , , Amortisation of lease prepayments ,435 2,982 (51.9) Amortisation of intangible assets (54.8) (19.1) Interest paid and payable 39,921 44,919 (11.1) 113, ,210 (7.0) Property, plant and equipment written off 13, ,

3 1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year. Group Company As at As at 31 December 2012 As at As at 31 December 2012 RMB 000 RMB 000 RMB 000 RMB 000 Non-current assets Property, plant and equipment 2,871,939 2,815, Intangible assets 2,658 2, Land use rights 36,570 38, Subsidiaries , ,946 Deposits paid for property, plant and equipment and land use rights 286, , ,197,263 3,161, , ,946 Current assets Inventories 419, , Trade and other receivables 2,027,129 1,435,280 28,162 29,066 Pledged deposits 396, , Cash and bank balances 600, ,610 2,472 1,640 3,444,095 2,721,410 30,634 30,706 Total assets 6,641,358 5,882, , ,652 Equity Share capital 291, , , ,516 Reserves 1,820,015 1,585, , ,156 Total equity attributable to equity holders of the Company 2,111,531 1,877, , ,672 Non-controlling interests 57,199 57, Total equity 2,168,730 1,934, , ,672 Non-current liabilities Interest bearing liabilities 323, , Deferred tax liabilities 7,500 7, Total non-current liabilities 331, , Current liabilities Trade and other payables 1,599,415 1,430,054 26,146 26,419 Interest-bearing liabilities 2,536,547 2,150, Derivative liabilities Current tax payable 5,191 20, Total current liabilities 4,141,437 3,601,226 26,662 26,980 Total equity and liabilities 6,641,358 5,882, , ,652 3

4 1(b)(ii) Aggregate amount of group s borrowings and debt securities Amount repayable in one year or less, or on demand As at As at 31 December 2012 Secured Unsecured Secured Unsecured RMB 000 RMB 000 RMB 000 RMB 000 1,773, ,000 1,645, ,342 Amount repayable after one year As at As at 31 December 2012 Secured Unsecured Secured Unsecured RMB 000 RMB 000 RMB 000 RMB , , ,000 - Details of any collateral The secured bank borrowings are secured by certain of the Group s leasehold buildings, plant and machinery, land use rights and trade receivables. Unsecured bank loans are guaranteed by Mr and Mrs Sun Liping, Mr Sun Liping s son, Jiangsu Yinyan Specialty Chemicals Co., Ltd, a company in which Mr Sun Liping is deemed to have significant interest, and certain unrelated third parties. 4

5 1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. Q Q RMB 000 RMB 000 RMB 000 RMB 000 Operating activities (Loss)/Profit before income tax 109,631 (5,592) 301,528 17,250 Adjustments for: Interest expense 39,921 44, , ,210 Interest income (8,847) (9,974) (15,856) (21,277) Amortisation of intangible assets Amortisation of lease prepayments ,435 2,982 Depreciation of property, plant and equipment 59,038 41, , ,840 Property, plant and equipment written off 13,843-14,858 - Exchange difference (682) 490 (4,961) 8,676 Operating profit before working capital changes 213,907 71, , ,985 Changes in working capital: Inventories (36,004) 18,355 92,612 (5,375) Trade and other receivables (61,035) 32,570 (591,849) (278,312) Trade and other payables (38,896) (209,750) 230, ,929 Cash generated from operations 77,972 (87,718) 327,408 85,227 Income taxes (paid)/credited (21,010) 1,835 (76,927) (6,744) Cash flows from operating activities 56,962 (85,883) 250,481 78,483 Investing activities Interest received 8,847 9,974 15,856 21,277 Purchase of property, plant and equipment (119,134) (34,230) (298,574) (331,089) Payments for additions to land use rights - (1,820) - (42,088) Purchase of intangible assets - (7) - (640) Downpayments for property, plant and equipment - (25,542) - (90,963) Cash flows from investing activities (110,287) (51,625) (282,718) (443,503) Financing activities Proceeds from bank loans 1,082,622 1,028,585 3,363,331 3,107,349 Repayments of bank loans (854,838) (1,082,273) (2,977,622) (3,122,534) Net proceeds from/(repayment to) factoring facilities - 6,367 (16,342) (43,372) Proceeds from issuance of bonds , ,000 Redemption of bonds - - (250,000) - Interest paid (39,921) (44,919) (113,682) (122,210) Deposits pledged 178, ,491 50, ,658 Cash flows from financing activities 366,077 73, , ,891 Net increase/(decrease) in cash and cash equivalents 312,752 (64,257) 273,745 38,871 Cash and cash equivalents at beginning of the period 287, , , ,184 Cash and cash equivalents at end of the period 600, , , ,055 5

6 1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. Statement of Changes in Equity The Group Foreign Share capital Treasury shares Merger reserve Capital reserve currency translation reserve Accumulated profits Total Noncontrolling interests Total equity RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 RMB 000 At 1 January ,516 - (499) 235,946 (10,345) 1,360,464 1,877,082 57,182 1,934,264 Total comprehensive income for the period (4,961) 239, , ,466 At ,516 - (499) 235,946 (15,306) 1,599,874 2,111,531 57,199 2,168,730 At 1 January ,254 (40,738) (499) 213,844 (15,676) 1,291,028 1,780,213 61,108 1,841,321 Total comprehensive income for the period ,676 13,243 21,919 (977) 20,942 At ,254 (40,738) (499) 213,844 (7,000) 1,304,271 1,802,132 60,131 1,862,263 Statement of Changes in Equity The Company Share Treasury Accumulated Total capital shares profits equity RMB 000 RMB 000 RMB 000 RMB 000 At 1 January , , ,672 Total comprehensive income for the period At , , ,918 At 1 January ,254 (40,738) 102, ,236 Total comprehensive income for the period ,432 10,432 At ,254 (40,738) 113, ,668 6

7 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as well as the numbers of shares held as treasury shares, if any, against the number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. The Company did not buy back any shares for the period The Company does not have any treasury shares as at As at 30 As at December 2012 ( 000) ( 000) Number of issued shares 533, ,451 Number of treasury shares - (19,800) Number of issued shares excluding treasury shares 533, ,651 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year. As at Company As at 31 December 2012 Number of shares excluding treasury shares at the end of the period ( 000) 533, ,651 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. There are no sales, transfers, disposal, cancellation and/or use of treasury shares as at end of Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. The figures have not been audited or reviewed by our auditors. 7

8 3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter). Not applicable. 4. Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied. The Group has applied the same accounting policies and methods of computation in the preparation of the financial statements for the current reporting period and the previous financial year. 5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. Please refer to Point 4 above. 6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. Q Q Earnings per share (RMB cents):- Basic and diluted 16.2 (0.7) Q Q RMB 000 RMB 000 RMB 000 RMB 000 Basic earnings per share is based on: Net profit/(loss) attributable to ordinary shareholders 86,220 (3,964) 239,410 13,243 Number of shares Q Q ( 000) ( 000) ( 000) ( 000) Weighted average number of ordinary shares outstanding at beginning and end of the period 533, , , ,651 8

9 7. Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the:- (a) Current financial period reported on; and (b) Immediately preceding financial year. As at Group As at 31 December 2012 As at Company As at 31 December 2012 Net assets attributable to the shareholders of the Company (RMB 000) 2,111,531 1,877, , ,672 Net asset value per ordinary share (RMB cents) Number of shares at the end of the period ( 000) 533, , , , A review of the performance of the group, to the extent necessary for a reasonable understanding of the group s business. It must include a discussion of the following:- (a) Any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and Revenue Our revenue in Q increased by RMB522.8 million to RMB1,603.7 million compared to RMB1,080.8 million in Q This was mainly due to an increase in revenue from acrylic acid ( AA ) and acrylate esters ( AE ), PMIDA and glyphosate as well as other chemical products by RMB486.9 million, RMB13.1 million and RMB22.8 million respectively. The increase in revenue from AA and AE was attributable to higher sales volume as well as higher average selling prices when compared to Q Sales volume of AA and AE increased by 35,400 tonnes to 126,000 tonnes in Q compared to 90,600 tonnes in Q due to additional outputs coming from our new Phase II Taixing AA plants. Gross profit Total gross profit for Q amounted to RMB230.1 million, representing an increase of 152.3%, compared to RMB91.2 million in Q Sale of AA and AE contributed RMB181.1 million whilst sale of PMIDA and glyphosate contributed RMB34.6 million to the total gross profit in Q Overall gross profit margin increased from 8.4% in Q to 14.3% in Q Gross profit margins for AA and AE improved from 7.2% in Q to 12.6% in Q This was largely attributable to higher average selling prices of AA & AE which increased from RMB10,800 per tonne in Q to RMB12,400 per tonne in Q

10 Other operating income Other operating income increased by RMB7.8 million to RMB18.1 million in Q from RMB10.2 million in Q Distribution expenses Distribution expenses increased by RMB17.3 million to RMB48.2 million in Q compared to RMB30.9 million in Q This was mainly due to an increase in freight and transportation charges due to increase in sales volume. Distribution expenses consisted of transportation charges and packaging costs as well as other sales related expenses. Administrative expenses Administrative expenses increased by RMB6.4 million to RMB35.3 million in Q compared to RMB28.8 million in Q Other operating expenses Other operating expenses increased by RMB12.8 million to RMB15.2 million in Q compared to RMB2.4 million in Q This was mainly due to written off of property, plant and equipment amounted to RMB13.8 million in Q relating to our Yancheng AA plants currently undergoing maintenance and improvement works. Finance expenses Finance expenses decreased by RMB5.0 million to RMB39.9 million in Q compared to RMB44.9 million in Q Income tax expense Income tax expense for Q amounted to RMB23.4 million due to profits incurred in Q (b) Any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. Balance Sheet Property, plant and equipment increased by RMB56.0 million to RMB2,871.9 million as at compared to RMB2,815.9 million as at 31 December This was mainly due to additions of property, plant and equipment for the 2013 which was partially offset by depreciation charge for the period. Deposits paid for property, plant and equipment decreased by RMB18.7 million to RMB286.1 million as at compared to RMB304.8 million as at 31 December Inventories decreased by RMB92.6 million to RMB419.6 million as at compared to RMB512.3 million as at 31 December This was mainly due to a decrease in finished goods and raw materials. 10

11 Trade and other receivables increased by RMB591.8 million to RMB2,027.1 million as at compared to RMB1,435.3 million as at 31 December This was mainly due to an increase in trade receivables as a result of higher sales revenue generated in Q These receivables from sales in Q are not due as at In addition, there was an advance to a related company amounted to RMB104.2 million in Q Trade and other payables increased by RMB169.4 million to RMB1,599.4 million as at compared to RMB1,430.1 million as at 31 December This was mainly due to higher trade and notes payables as a result of higher purchases made in Q Total non-current and current interest-bearing liabilities increased by RMB369.4 million to RMB2,860.2 million as at compared to RMB2,490.9 million as at 31 December This was mainly due to proceeds from drawn down of new banking facilities during the Cash Flow Statement Our Group generated positive operating cash flow of RMB57.0 million in Q mainly due to profit incurred, interest expense, depreciation charge as well as property, plant and equipment written off. These were partially offset by interest income as well as an increase in inventories and receivables and a decrease in payables. Financing activities resulted in positive cash flow of RMB366.1 million in Q mainly due to a decrease in pledged deposits and proceeds from bank loans. These were partially offset by repayments of interest-bearing liabilities and interest paid. There was a net cash outflow of RMB110.3 million in Q from the Group s investing activities mainly due to acquisitions of property, plants & equipments which was partially offset by interest received. Cash and cash equivalents increased from RMB273.7 million as at 31 December 2012 to RMB600.4 million as at

12 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. Sales of our main products, AA and AE, are expected to remain robust. Our AA plants in Yancheng City with an annual capacity of 205,000 tonnes are alternately undergoing maintenance and improvement works currently. The conversion and modification works on our catalyst-assisted cracking plant are expected to be finished and be operational in Q Dividend (a) Current Financial Period Reported On No dividend has been declared or recommended. (b) Corresponding Period of the Immediately Preceding Financial Year No dividend has been declared or recommended in Q (c) Date payable Not applicable. (d) Books closure date Not applicable. 12. If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared or recommended. 12

13 13. Interested Person Transactions Pursuant to Rule 920(1)(a)(ii) of the Listing Manual, the Group discloses the aggregate value of interested person transactions for the 2013 as follows: Name of Interested Person Aggregate value of all interested person transactions during financial year under review (excluding transactions less than $100,000 and transactions conducted under shareholders mandate pursuant to Rule 920) RMB 000 Aggregate value of all interested person transactions conducted under shareholders mandate pursuant to Rule 920 (excluding transactions less than $100,000) RMB 000 Sales of chemical products:- - Jiangsu Yinyan Specialty Chemical Co., Ltd Sales of chemical products:- - Jiangsu Jurong Petrochemicals Co., Ltd Purchase of inventories:- - Jiangsu Yinyan Specialty Chemical Co., Ltd - 103,939-15,487-11,666 Purchase of inventories:- - Jiaxing Jinyan Chemical Co., Ltd - 47,536 13

14 The Company refers to the announcement released on 30 April 2013 in relation to Interested Person Transactions ( IPTs ) entered into with Yixing Danson Technology Co., Ltd ( Yixing Danson ). Sales of chemical products to Yixing Danson in the 2013 amounted to RMB362.8 million. The transactions with Yixing Danson are regarded as IPTs within the meaning of the listing manual (the Listing Manual ) of Singapore Exchange Securities Trading Limited. The Company is in the process of seeking ratification from its shareholders (the Shareholders ) of such transactions in accordance with the requirements of Chapter 9 of the Listing Manual. As such, the Audit Committee shall be seeking advice from an Independent Financial Advisor (to be appointed) in relation to the Past Recurring IPTs and the Company will be convening the extraordinary general meeting (the EGM ) in due course to seek Shareholders ratification for the Past Recurring IPTs. In addition, the Group anticipates that as those Past Recurring IPTs with Yixing Danson will continue in the future and thus proposes to seek Shareholders approval for a general mandate for this purpose at the EGM. 14. The Directors of the Company do hereby confirm that, to the best of their knowledge, nothing has come to the attention of the Board of Directors of the Company which may render the third quarter financial statements 2013 to be false or misleading in any material aspect. BY ORDER OF THE BOARD Sun Xiao Executive Director and Chief Executive Officer 14 November