Full Year Financial Statement And Dividend Announcement

Transcription

1 (Company Registration No W) Full Year Financial Statement And Dividend Announcement PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY, HALF-YEAR AND FULL YEAR RESULTS Full-year financial statements on consolidated results for the period ended 31 December 2008 These figures have not been audited. 1(a) An income statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. Group (Full-year Ended) Change $ '000 $ '000 % Sales 58,865 83,353 (29) Cost of sales (48,348) (62,830) (23) Gross profit 10,517 20,523 (49) Other gains (net) - Miscellaneous 528 8,585 (94) Expenses - Distribution (4,418) (4,401) 0 - Administrative (10,986) (11,121) (1) - Finance (367) (496) (26) (Loss) / Profit before share of profit / (losses) of associated companies (4,726) 13,090 (136) Share of profit / (losses) of associated companies (net) 297 (256) (216) (Loss) / Profit before income tax (4,429) 12,834 (135) Income tax credit (23) Net (loss) / profit (3,976) 13,419 (130) Attributable to: Equity holders of the Company (3,976) 13,429 (130) Minority interests - (10) (100) (3,976) 13,419 (130) Pg 1

2 Profit / (loss) for the financial year is arrived at after (charging) / crediting the following : Group (Full-year Ended) Change $ '000 $ '000 % Other Income including interest income 1, Interest expense (367) (496) (26) Depreciation and Amortisation (5,797) (6,955) (17) Allowance for impairment of trade and other receivables (net) (1,208) (264) 358 Currency exchange loss (net) (1,432) (218) 557 Adjustments for overprovision of prior year tax Net (loss) / gain on sale of property, plant & equipment & investment properties (21) 8,064 (100) Impairment of investment properties - (57) N/M The miscellaneous gains/losses (net) comprise the following: Group (Full-year Ended) Change $ '000 $ '000 % Impairment of investment properties - (57) N/M Impairment of financial assets, available for sale - (26) N/M Gain on disposal of investment property and property, plant & equipment (Summit Bldg) - 8,015 N/M (Loss) / Gain on disposal of property, plant and equipment (others) (21) 49 (143) Cost incurred in relation to mandatory conditional cash offer - (196) N/M Net on other income (non-recurring) (21) 7,785 (100) Rental income Interest income Currency exchange loss (net) (1,432) (218) 557 Others 204 (258) (179) Net on other income (recurring) (31) Other miscellaneous gains - net 528 8,585 (94) Income tax credit / (expense) attributable to profit is made up of : Current income tax Change $ '000 $ '000 % - Singapore (349) (1,172) (70) - Foreign (35) (170) (79) (384) (1,342) (71) Deferred income tax (82) 1,284 (106) Overprovision in the prior financial years: Group (Full-year Ended) (466) (58) current income tax deferred income tax - 32 (100) (23) N/M : Not meaningful Pg 2

3 1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year. Group Company 31 Dec Dec Dec Dec 07 $ '000 $ '000 $ '000 $ '000 Current assets Cash and cash equivalents 26,941 33,736 12,037 23,466 Trade and other receivables 24,172 35,623 9,614 6,592 Inventories 3,328 3, Other current assets 1,988 2, ,473 Current income tax recoverable ,905 75,917 22,795 31,531 Non-current asset held for sale 1,469 1, ,374 77,381 22,795 31,531 Non-current assets Trade and other receivables ,817 22,825 Financial assets, available-for-sale 5, , Investments in associated companies 2,290 2,008 1,298 1,298 Investments in subsidiaries - - 9,884 9,884 Investment properties - 1,049-1,049 Property, plant & equipment 19,714 25, Intangible assets Deferred income tax assets ,692 29,631 35,418 35,957 Total assets 86, ,012 58,213 67,488 Current liabilities Trade and other payables (16,207) (22,090) (2,151) (5,551) Borrowings (1,954) (2,229) (34) (34) Current income tax liabilities (465) (1,721) - (1,341) (18,626) (26,040) (2,185) (6,926) Non-current liabilities Borrowings (1,359) (3,037) (89) (129) Other Payables (3,914) (4,189) (2,262) (2,850) Deferred income tax liabilities (981) (1,277) (72) (177) (6,254) (8,503) (2,423) (3,156) Total liabilities (24,880) (34,543) (4,608) (10,082) Net assets 61,186 72,469 53,605 57,406 Equity Share capital 40,194 40,194 40,194 40,194 Other reserves (3,130) 1,765 (476) - Retained earnings 24,122 30,417 13,887 17,212 61,186 72,376 53,605 57,406 Minority interests Total equity 61,186 72,469 53,605 57,406 Pg 3

4 1(b)(ii) Aggregate amount of group's borrowings and debt securities (a) Amount repayable in one year or less, or on demand As at 31 Dec 08 As at 31 Dec 07 Secured Unsecured Secured Unsecured S$'000 S$'000 S$'000 S$'000 1, , (b) Amount repayable after one year As at 31 Dec 08 As at 31 Dec 07 Secured Unsecured Secured Unsecured S$'000 S$'000 S$'000 S$'000 1,359-3,037 - (c) Details of any collateral The Group's secured borrowings include bank loans and lease liabilities. The bank loans and lease liabilities are secured by fixed charges over the plant and machinery and leasehold land and building of the subsidiaries. Pg 4

5 1 (c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. Consolidated Cash Flow Statement for the year ended 31 December 2008 Group (Full-year Ended) 31-Dec Dec-07 $ '000 $ '000 Cash flows from operating activities Net (loss) / profit (3,976) 13,419 Adjustment for: Tax credit (453) (585) Depreciation and amortisation 5,797 6,955 Net gain from sale of property, plant and equipment (110) (49) Net loss / (gain) on disposal of an investment property 131 (8,015) Impairment / (reversal of impairment) of investment properties - 57 Interest income (882) (476) Interest expense Share of (profits) / losses of associated companies (net) (297) 256 Impairment of financial assets, available-for-sale - 26 Operating cash flow before working capital changes ,084 Changes in operating assets and liabilities, Inventories 550 (131) Trade and other receivables 11,451 (4,761) Other current assets 692 (2,024) Trade and other payables (6,441) 2,683 Currency translation differences (943) 302 Cash generated from operations 5,886 8,153 Income tax (paid) / recovered - net (1,168) 1,271 Net cash provided by operating activities 4,718 9,424 Cash flows from investing activities Proceeds from sale of property, plant and equipment ,787 Proceeds from sale of investment properties 907 7,256 Proceeds from sale of financial assets, available-for-sale - 1,200 Purchase of property, plant and equipment (3,335) (4,196) Purchase of financial assets, available-for-sale (5,175) - Acquisition of additional interest in a subsidiary - (671) Capital injection in an associated company - (749) Interest received Short-term deposits charged as security to bank (840) - Purchase of intangible asset (236) (702) Net cash (used in) / provide by investing activities (7,353) 17,401 Cash flows from financing activities Proceeds from borrowings 190 3,054 Repayment of borrowings (1,721) (7,915) Interest paid (367) (496) Dividends paid to shareholders (1,812) (1,486) Net cash used in financing activities (3,710) (6,843) Net (decrease) / increase in cash and cash equivalents held (6,345) 19,982 Cash and cash equivalents at beginning of the financial year 32,616 12,624 Effects of exchange rate changes on cash and cash equivalents (1,491) 10 Cash and cash equivalents at end of the financial year * 24,780 32,616 * The consolidated cash and cash equivalents comprise the following: Cash and bank balances 26,941 33,736 Bank overdraft (521) (320) Short-term bank deposits charged as security to bank (1,640) (800) 24,780 32,616 Pg 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 capitalization issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. Attributable to equity holders of the Company Share Other Retained Minority Total GROUP Capital Reserves Earnings Total Interest Equity 2008 $'000 $'000 $'000 $'000 $'000 $'000 Beginning of financial year 40,194 1,765 30,417 72, ,469 Currency translation differences Financial assets, available-for-sale - Fair value loss Others - (4,419) - (4,419) - (4,419) - (476) - (476) - (476) - - (507) (507) (93) (600) Net losses recognised directly in equity - (4,895) (507) (5,402) (93) (5,495) Net loss for the financial year Total losses recognised for the financial year Dividends relating to 2007 End of financial year - - (3,976) (3,976) - (3,976) - (4,895) (4,483) (9,378) (93) (9,471) - - (1,812) (1,812) - (1,812) 40,194 (3,130) 24,122 61,186-61,186 Share Other Retained Minority Total GROUP Capital Reserves Earnings Total Interest Equity 2007 $'000 $'000 $'000 $'000 $'000 $'000 Beginning of financial year 40,194 1,364 18,912 60, ,806 Currency translation differences Financial asset, available-for-sale - Fair value gains - Transfer to income statement on impairment Adjustment on acquisition of additional shares in a subsidiary from minority shareholder Net income / (loss) recognised directly in equity Net profit for the financial year Total recognised income / (losses) for the financial year Dividend relating to 2006 End of financial year (438) (438) (233) (671) (438) (37) (233) (270) ,429 13,429 (10) 13, ,991 13,392 (243) 13, (1,486) (1,486) - (1,486) 40,194 1,765 30,417 72, ,469 Pg 6

7 Share Other Retained COMPANY Capital Reserves Earnings Total 2008 $'000 $'000 $'000 $'000 Beginning of financial year Net fair value changes on available-forsale financial assets 40,194-17,212 57,406 - (476) - (476) Net loss recognised directly in equity Net loss for the financial year Total losses recognised for the financial year Dividends relating to 2007 End of financial year - (476) - (476) - - (1,513) (1,513) - (476) (1,513) (1,989) - - (1,812) (1,812) 40,194 (476) 13,887 53,605 Share Other Retained COMPANY Capital Reserves Earnings Total 2007 $'000 $'000 $'000 $'000 Beginning of financial year Net fair value changes on available-forsale financial assets 40,194 (135) 10,571 50, Net income recognised directly in equity Net profit for the financial year Total recognised income for the financial year Dividend relating to 2006 End of financial year ,127 8, ,127 8, (1,486) (1,486) 40,194-17,212 57,406 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 number of shares held as treasury shares, if any, against the total 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. There were no changes in the Company's issued share capital. The Company did not have any outstanding convertibles and treasury shares as at 31 December 2007 and 31 December (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. 31 Dec Dec 07 Total number of issued shares excluding treasury shares 362,419, ,419,500 Pg 7

8 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. Not applicable. 2 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 the Company's auditors. 3 Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of 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 compared with the audited financial statements as at 31 December 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. Not applicable 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. Group Full-year Ended (a) Based on weighted average number of ordinary shares on issue (1.10) cents 3.71 cents (b) On a fully diluted basis (1.10) cents 3.71 cents Note: The earnings per share is calculated based on weighted average number of ordinary shares in issue of 362,419,500 (2007: 362,419,500) ordinary shares. 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 period reported on; and (b) immediately preceding financial year. Group Company 31 Dec Dec Dec Dec 07 Net asset value per ordinary share cents cents cents cents Note The net asset per share is calculated based on existing issued share capital of 362,419,500 (2007: 362,419,500) ordinary shares. Pg 8

9 8 Group Performance Review 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 (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. Group performance review Turnover for the Group reduced by 29% from $83.4 million to $58.9 million in FY08. The reduction was mainly due to weaker market demand for the Group s optical disc products especially during the last quarter of FY08. Uncertainty in the global economy led to a drastic contraction of customers manufacturing orders during the peak season in the last quarter. With the decrease in turnover but fixed manufacturing overheads, the gross profit decreased $10 million or 49% from $20.5 million to $10.5 million. Other gains (net) - miscellaneous reduced $8.0 million from $8.6 million in FY07 to a small gain of $528k in FY08. This was mainly due to the following: a) a decrease in non recurring net income of $7.8 million mainly due to the sales and leaseback of its Singapore leasehold building ( Summit Building ) in FY07. There was no such income received in FY08. b) an increase in exchange loss of $1.2 million in FY08 as a result of the significant weakening in the Australian Dollar and Indonesian Rupiah against US Dollar and Singapore Dollar starting September 2008 amid the financial crisis. The Group's subsidiaries in Australia and Indonesia have trade purchases and bank borrowings, which are denominated in US and Singapore Dollars. c) an increase in interest, rental and miscellaneous income of $960k in FY08 resulted mainly from its higher bank balances and placement into higher yield bank deposits and fixed income investments. Administrative expenses had reduced by $0.1 million from $ 11.1 million to $ 11.0 million. This increase was mainly due to: a) an increase in rental expense of $0.9 million. The Group had concluded a sales and leaseback of its Summit Building towards the end of year 2007 which resulted in an additional rental expense for FY08 b) an increase in the provision of doubtful debts of $1 million as certain customers went into liquidation towards the end of 2008 amid the financial crisis. c) a one-off $0.5 million employee termination benefits expense. The Group had conducted a restructuring exercise in its Australia operations to manage its high operating cost in response to the reduction in market demand. The above increase in administrative expenses were however offset by a reduction in staff bonuses of about $1.0 million in FY08 due to the poorer group financial performance, a reduction of $0.4 million in depreciation and a reduction of $0.4 million in legal and professional fees. The share of gains of associated companies was $0.3 million profit as compared to a loss of $0.3 million in FY07. Our associated company in China had managed to turnaround due to improving customer base and cost structures. Income tax was a credit of $0.5 million in FY08 due mainly to the finalization of some prior years tax issues. With the drastic reduction in turnover during second half of the year, an increase in foreign exchange losses and provision of doubtful debts as explained above, the Group incurred a net loss of $3.98 million in FY08 as compared to net profit of $13.42 million (or $6.30 million after excluding the non recurring income on asset sale) in FY07. Review of Group balance sheet Group cash and cash equivalents reduced $6.8 million as the Group invested $5.2 million in higher yielding fixed income investments. This had resulted in a corresponding increase of $5 million in the financial assets, available for sale. Detailed movement in cash and cash equivalents is explained in the Cash Flow Statement. Lower sales and production activities resulted in reduced current trade receivables and trade payables respectively. Pg 9

10 Review of Company balance sheet The reduction in cash and cash equivalents of $11 million was mainly due to the following: a) purchase of fixed income investments of $5.2 million, mentioned above, which accounted for the increase in the company financial assets, available for sale. b) dividend paid during the year of $1.8 million. c) short term funding to its subsidiaries of $2 million and an additional cost of $0.8 million paid relating to the acquisition of TES Group which will be recovered from TES Group upon completion. These had resulted in the increase in the company s trade and other receivables. d) payment of Goods and Services Tax about $1.6 million in relation to the sale of Summit Building. A reduction in trade and other payables of $3.4 million is mainly due to a reduction in the provision of staff bonuses and the payment of Goods and Services Tax in relation to the sales of Summit Building in FY08. Non-current receivables had reduced $4 million due to the repayment of loan from its subsidiaries and exchange translation of its Australian Dollar denominated loan to its subsidiary in Australia. Australian Dollar had significantly weakened against the Singapore Dollars during the year. 9 Where a forecast, or a prospect statement has been previously disclosed to shareholders, any variance between it and the actual results. The Company had announced on 23 January 2009 that the Group is expected to report a net loss for the full year ended 31 December The Group's full year results are in line with the announcement made. 10 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. In view of the current global economic downturn, the Group's performance in 2009 will continue to be adversely affected. The Group's turnover is expected to decline further as manufacturing demands from our customers remain weak. Further foreign exchange losses of the Group can be expected should currencies in countries where the Group is operating in such as the Australia Dollar and Indonesia Rupiah weaken against the US Dollar and Singapore Dollar. The Group will monitor the demand situation closely and would adopt appropriate cost cutting strategies including restructuring to reduce its fixed manufacturing cost. With regards to the proposed acquisition of TES-Envirocorp Pte Ltd, the Company has made an announcement on 31 December 2008 that the Company has provided the Singapore Exchange Securities Trading Limited ("SGX-ST") with an updated Circular on 17 November 2008 and the Company is currently responding to queries by SGX ST. 11 Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial year reported on? Name of Dividend: Dividend Type: First & Final 1-tier tax exempt dividend Cash Dividend Amount per Share (in cents) 0.25 cent Tax Rate: Nil (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? Name of Dividend: Dividend Type: Dividend Amount per Share (in cents) Tax Rate: First & Final 1-tier tax exempt dividend Cash 0.5 cent Nil (c) Date Payable To be advised later (d) Books Closure Date To be advised later Pg 10

11 12 If no dividend has been declared / recommended, a statement to that effect. Not applicable PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT 13 Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year. Primary reporting format - geographical segments by location of assets Asia Australia Intersegment eliminations Group Year ended 31 December 2008 $'000 $'000 $'000 $'000 External sales 24,785 34,080-58,865 Inter-segment sales 4, (4,273) - 29,046 34,092 (4,273) 58,865 Segment results / operating loss (864) (4,377) - (5,241) Interest income 882 Finance expense (367) Share of profit of associated companies 297 Loss before tax (4,429) Income tax credit 453 Net loss (3,976) Segment assets 42,961 23,262-66,223 Short-term bank deposits 17,077 Tax recoverable 476 Investments in associated companies 2,290 Consolidated total assets 86,066 Segment liabilities 13,704 6,417 20,121 Borrowings 3,313 Current income tax liabilities 465 Deferred income tax liabilities 981 Consolidated total liabilities 24,880 Capital expenditure 2,082 1,195 3,277 Depreciation and Amortisation 2,593 3,204 5,797 Asia Australia Intersegment eliminations Group Year ended 31 December 2007 $'000 $'000 $'000 $'000 External sales 31,159 52,194-83,353 Inter-segment sales 7,785 2 (7,787) - 38,944 52,196 (7,787) 83,353 Segment results / operating profit 10,820 2,290-13,110 Interest income 476 Finance expense (496) Share of losses of associated companies (256) Profit before income tax 12,834 Income tax credit 585 Net profit 13,419 Segment assets 39,302 38,885-78,187 Short-term bank deposits 26,420 Deferred income tax assets 397 Investments in associated companies 2,008 Consolidated total assets 107,012 Segment liabilities 15,959 10,320-26,279 Borrowings 5,266 Current income tax liabilities 1,721 Deferred income tax liabilities 1,277 Consolidated total liabilities 34,543 Capital expenditure 3,523 1,285 4,808 Depreciation and Amortisation 2,957 3,998 6,955 As the Group operates substantially in one business segment which is the manufacture and sale of optical disc and related data storage products, no other segment information by business segment is presented. Pg 11

12 14 In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments. Explained under item Sales and Profit Breakdown /( - ) $ '000 $ '000 % Group Group Group 15 (a) Sales reported for first half year 30,889 33,935 (9) 15 (b) (Loss) / Profit after tax before minority interest (1,017) 1,124 (190) reported for first half year 15 (c) Sales reported for second half year 27,976 49,418 (43) 15 (d) (Loss) / Profit after tax before minority interest (2,959) 12,295 (124) reported for second half year 16 A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year S$'000 S$'000 Ordinary shares 906 1,812 Preference - - Total 906 1, Interested Person Transactions ("IPTs") Not applicable BY ORDER OF THE BOARD Lee Kerk Chong Chairman and Managing Director 26 February 2009 Pg 12