Full Year Financial Statement And Dividend Announcement

Transcription

1 Listed companies must provide the information required by Appendix 7.2 of the Listing Manual. Adequate disclosure should be given to explain any material extraordinary item either as a footnote of the material extraordinary item or in the "Review of the performance of the group". TECKWAH INDUSTRIAL CORPORATION LTD Full Year Financial Statement And Dividend Announcement PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS 1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year Group Company S$'000 % S$'000 % incr/ incr/ 2,002 2,001 (decr) 2,002 2,001 (decr) 1 a Turnover 102, ,702 (21.5) 15,543 13, b Investment Income ,260 1,500 1,650.7 c Other income including interest income : ,712 (79.6) 24 1,488 (98.4) ( i ) Gain on sale of investments, (70.1) properties, and/or plant & equipment d Changes in inventories of FG & WIP (595) (2,632) (77.4) e Raw Materials and consumables used (54,327) (76,687) (29.2) (1,653) (725) f Staff costs (17,365) (17,484) (0.7) (4,826) (4,304) 12.1 g Depreciation and amortisation (6,457) (6,384) 1.1 (2,041) (1,879) 8.6 h Interest on borrowings (1,324) (2,265) (41.5) (892) (1,667) (46.5) I Other operating income :- (15,400) (14,004) 10.0 (6,132) (6,125) 0.1 ( i ) foreign exchange gain /(loss) (919) 1,675 (154.9) (196) 177 (210.7) ( ii ) allowance for doubtful debts on trade receivables (258) (38) (269) 2 (13,550.0) ( iii ) Write back (allowance) for inventories (446) (756) (41.0) ( iv ) impariment loss on long-term investments (11) (140) (92.1) (11) (140) (92.1) j Exceptional items - (1,049) (100.0) ( i ) gain on disposal of subsidiaries/ associates nm ( ii ) impairment loss on unquoted equity shares - (2,047) nm and associates. k Operating profit/(loss) before income tax, 7,434 11,909 (37.6) 26,283 1,344 1,855.6 minority interests and extraordinary items but after interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items

2 Group Company S$'000 % S$'000 % incr/ incr/ 2,002 2,001 (decr) 2,002 2,001 (decr) l Income from associated companies m Operating profit before income tax 7,745 11,991 (35.4) 26,283 1,344 1,855.6 n Less income tax ( indicate basis of computation) (1,405) (3,185) (55.9) (6,322) (969) ( i ) Adjustment for under or (over) provision of tax in respect of prior periods. (400) (579) (30.9) 293 (475) NM o (a) Operating profit after tax 6,340 8,806 (28.0) 19, ,222.9 before deducting minority interests (b ) Less minority interests (57) (52) p Operating profit after tax 6,283 8,754 (28.2) 19, ,222.9 attributable to members of the company q ( i ) Extraordinary items ( provide separate disclosure of i ( ii ) Less minority interests (iii) Extraordinary items attributable to members of the company r Operating profit/(loss) after tax 6,283 8,754 (28.2) 19, ,222.9 and extraordinary items attributable to members of the company

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 Actual Previous Actual Previous 31-Dec Dec Dec Dec-01 S$'000 S$'000 S$'000 S$'000 Fixed Assets 77,929 75,333 49,121 50,713 Investments - long term Investment in Subsidiary companies ,045 13,045 Investment in Joint Venture Companies - - 4,216 4,216 Investment in Associated companies Other Assets Current Assets 42,322 50,306 26,862 9,288 Total Assets 121, ,738-93,447 77,476 Current Liabilities 23,240 27,963 10,797 9,722 Long-Term Liabilities 22,620 27,490 21,274 25,179 Deferred Taxation 4,230 4,622 2,700 2,799 Total Liabilities 50,090 60,075-34,771 37,700 Minority Interest Net Assets 70,471 66,106-58,676 39,776 Share capital 22,603 22,603 22,603 22,603 Share premium Proposed ordinary dividend 1,763 1,024 1,763 1,024 Non-distributable reserves 1,661 2, Retained Earnings 44,442 39,956 34,306 16,142 Shareholders' Equity 70,471 66,106-58,676 39,776 1(b)(ii) Aggregate amount of group s borrowings and debt securities Amount repayable in one year or less, or on demand As at 31/12/02 As at 31/12/01 Secured Unsecured Secured Unsecured 0 3, ,276 Amount repayable after one year As at 31/12/02 As at 31/12/01 Secured Unsecured Secured Unsecured 0 22, ,490 Details of any collateral NIL

4 1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year $'000 $'000 Cash flow from operating activities: Operating profit before share of results of associates 7,434 11,909 Adjustment for : Amortisation of reserve arising on consolidation (9) (9) Amortisation of goodwill 2 0 Impairment loss on associate 0 30 Depreciation 6,452 6,383 Impairment loss on long term investments 11 2,157 Loss (Gain) on disposal of plant and equipment 70 (88) Gain on disposal of subsidiaries and associates (69) (998) Impairment loss of fixed assets Goodwill written off Interest income (227) (1,635) Interest expense 1,325 2,265 Operating profit before working capital changes 15,518 20,014 Trade receivables 8,514 6,882 Other receivables and prepayments (165) 2,885 Inventories 1,643 6,287 Trade payables (3,069) (11,141) Other payables 1,450 (1,783) Cash generated from operations 23,891 23,144 Interest received 227 1,635 Interest paid (1,325) (2,265) Dividend paid (1,058) (1,024) Income tax paid (3,284) (3,929) Net cash from operating activities 18,451 17,561

5 $'000 $'000 Cash flow from investing activities: Proceeds from disposal of property, plant & equipment Purchase of property, plant & equipment (9,393) (4,437) Proceeds from disposal of subsidiaries 0 2,242 Acquisition of joint venture 0 (4,149) Proceeds from disposal of associate 7 3,212 Increase in long term investments 0 (13) Net cash used in investing activities (8,778) (2,920) Net cash flows from financing activities: Proceeds from issue of shares 0 5 Increase (Decrease) in bank loans 79 (6,453) Decrease in long term debts (8,450) (3,526) Net cash in financing activities (8,371) (9,974) Net effect of exchange rate changes in 260 1,240 consolidating foreign subsidiaries Net increase in cash 1,562 5,907 Cash at beginning of year 10,645 4,738 Cash at end of year 12,207 10,645

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 GROUP Share Share Capital Currency Proposed Accumulated (S$'000) Capital Premium Reserves Translation Dividends Profits Total Reserves Balance at 31 Dec , (432) 1,024 32,226 55,418 Warrants exercised Dividends paid (1,024) (1,024) Proposed dividend 1,024 (1,024) - Currency translation 2,778 2,778 Net profit for the year 8,754 8,754 Goodwill on acquisition of joint venture Amortization (9) (9) Balance at 31 Dec , ,346 1,024 39,956 66,106 Balance at 31 Dec , ,346 1,024 39,956 66,106 Dividends paid (1,024) (34) (1,058) Proposed dividend 1,763 (1,763) - Currency translation (10) (841) (851) Net profit for the year 6,283 6,283 Amortization (9) (9) Balance at 31 Dec , ,505 1,763 44,442 70,471 COMPANY Share Share Capital Currency Proposed Accumulated (S$'000) Capital Premium Reserves Translation Dividends Profits Total Reserves Balance at 31 Dec , ,024 16,791 40,421 Warrants exercised Dividends paid (1,024) (1,024) Proposed dividend 1,024 (1,024) - Currency translation (1) (1) Net profit for the year Balance at 31 Dec , ,024 16,142 39,776 Balance at 31 Dec , ,024 16,142 39,776 Dividends paid (1,024) (34) (1,058) Proposed dividend 1,763 (1,763) - Currency translation (3) (3) Net profit for the year 19,961 19,961 Balance at 31 Dec , ,763 34,306 58,676

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 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 NIL 2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard) The figures are unaudited and not reviewed. 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 Saved as disclosed in paragraph 5 below, the same accounting policies and methods of computation are followed in the financial statements compared with the most recent audited annual financial statements. 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 With effect from 1 January 2002, the Group changed its accounting policy with respect to the treatment of deferred tax in order to conform with the new requirements of SAS 12, Income Taxes. The adoption of the revised SAS 12 does not affect the results of current or prior periods.

8 6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends GROUP Earnings per Ordinary Share for the year based on net profit attributable to shareholders:- (I) Based on the weighted average number of ordinary shares on issue (ii) On a fully diluted basis Notes: (a) In 2002, the earnings per ordinary share ( EPS ) are calculated on the issue capital of 226,028,248 ( 2001=226,028,248). (b) Fully diluted EPS for 2002 is calculated on 227,116,711 ( 2001 = 231,828,248) ordinary shares assuming all the full exercise of employees share option during the year and adjusting for the number of ordinary shares in issue to reflect the effect of all potentially diluted ordinary share. 7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year GROUP COMPANY Net Asset Value Per Ordinary Share based on issued share capital at the end of the year 8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group s business. The review must discuss 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. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on The information technology industry did not recover from the slowdown in year Coupled with the fact that a customer has discontinued a major product line, the Group s turnover declined by 21.5% from $131million to $103 million. The Group pre-tax operating profit reduced by 37.6% from $ 11.9 million to $7.4 million due to the decline in sales; start up costs in Suzhou, Shenzhen and Shanghai and the loss in foreign exchange as a result of the volatility of the U.S. Dollars exchange rate last year. The austerity measures put in by the Group in the year 2002 has helped to maintain the staff costs as compared to 2001despite the group s expanded activities.

9 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results No forecast or prospect statement was disclosed to the shareholder previously. 10. A commentary at the date of the announcement of the 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 The prospects of the global IT industry remains soft for 2003; business sentiments of the industry is also uncertain due to the imminent war in Iraq. Notwithstanding this industry outlook, management s assessment is that the group may exceed its 2002 performance in 2003 as a result of aggressive business development in terms of building existing revenue base and expanding into new related opportunities. 11. Dividend (a) Current Financial Period Reported On Name of Dividend First & final Dividend Type Cash Dividend Rate 6% per ordinary share Par Value of Shares S$0.10 Tax Rate 22.0% Name of Dividend Special Dividend Type Cash Dividend Rate 4% per ordinary share Par Value of Shares S$0.10 Tax Rate 22.0%

10 (b) Corresponding Period of the Immediately Preceding Financial Year Name of Dividend First & final Dividend Type Cash Dividend Rate 6% per ordinary share Par Value of Shares S$0.10 Tax Rate 22.0% (c) Date payable To be announced later. (d) Books closure date To be announced later. 12. If no dividend has been declared/recommended, a statement to that effect NIL PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results) 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

11 Segmental Results -By Business Segment Year 2002 (S$'000) Revenue P&P VC SVC Elim TOT External Sales 44,110 56,839 1, ,553 Inter-segment sales 11, ,388 (27,140) 0 Total Revenue 55,752 56,949 16,992 (27,140) 102,553 Segment Result Op.Profit before income tax 5,772 1, ,434 Income from Associates Income tax expense (1,405) Op.Profit after tax 6,340 Other Information P&P VC SVC Other TOT Capital expenditure 9,400 1, ,186 Depreciation & amortisation 3, ,926 6,456 BALANCE SHEET P&P VC SVC Other TOT Assets Segment Assets 47,848 22,015 50, ,556 Investments in Associates Consolidated Total Assets 47,848 22,577 50, ,161 Liabilities Segment liabilities 9,503 7,440 25,715 42,658 Unallocated corporate 7,432 7,432 liabilities 0 Consolidated Total Liabilities 9,503 7,440 25,715 7,432 50,090

12 Year 2001(S$'000) Revenue P&P VC SVC Elim TOT External Sales 52,283 76,942 1, ,702 Inter-segment sales 21,410 3,728 13,883 (39,021) 0 Total Revenue 73,693 80,670 15,360 (39,021) 130,702 Segment Result Op.Profit before income tax 8,031 3,090 (924) 10,197 Other operating income 1,712 Income from Associates 93 (11) 82 Income tax expense (3,185) Op.Profit after tax 8,806 Other Information P&P VC SVC Other TOT Capital additions 1,907 1,607 1,725 5,239 Depreciation & amortisation 4, ,901 6,383 BALANCE SHEET P&P VC SVC Other TOT Assets Segment Assets 42,339 27,416 56, ,402 Investments in Associates Consolidated Total Assets 42,339 27,752 56, ,738 Liabilities Segment liabilities 10,726 8,965 31,315 51,006 Unallocated corporate 9,069 9,069 liabilities Consolidated Total Liabilities 10,726 8,965 31,315 9,069 60,075 Segmental Results -By Geographical Segment (S$'000) Revenue Carrying amount of assets Additions to fixed assets Y2002 Y2001 Y2002 Y2001 Y2002 Y2001 Singapore 71, ,722 85,334 98, Malaysia 9,154 10,072 10,917 9,762 3, China 14,155 10,560 18,513 11,665 7, Indonesia 7,298 7,348 6,397 6, Total 102, , , ,738 11,186 5,239

13 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 The Value Chain operations have been affected by the continued weakness in the IT industry and the discontinuation of a major product line by a customer. As such, sales for the Value Chain operations reduced by 26% from $76.9 million to $56.8million. Pre-Tax profits reduced by 55% from $3.1 million to $1.4million due to the above factors and the business startup costs in Suzhou and Shenzhen. The recession in Singapore and overall slowdown in the global economy have also led to the Print and Pack operations to show a decline in Sales by 16% from $52.3 million to $44.1 million. Pre-tax profit reduced by 28% from S$8.1 million to $5.8 million. Geographically, the decline in sales was due to the decrease in sales from the Singapore segment. Contribution from China in terms of sales has increased significantly although it is still loss making. This is due to setup operations in Suzhou and Shenzhen, as well as the setting up of a corporate office in China to manage the whole operations. 15. A breakdown of sales (S$'000) GROUP COMPANY / ( - ) % / ( - ) % (a) Sales reported for the first half year 50,942 62,818 (18.9) 6,935 6, (b) Operating profit after tax before 2,539 3,085 (17.7) deducting minority interests reported for the first half year ( c) Sales reported for the second half year 51,611 67,884 (24.0) 8,608 6, (d) Operating profit after tax before 3,801 5,721 (33.6) 19, ,588.8 deducting minority interests reported for the 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 Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details) Latest Full Year (31/12/02) Previous Full Year (31/12/2001) Ordinary 1,763 1,058 Preference 0 0 Total: 1,763 1,058 BY ORDER OF THE BOARD Thomas Chua Kee Seng Chairman & Managing Director 19 March 2003 Singapore