JUBILEE INDUSTRIES HOLDINGS LIMITED Company Registration Number: H

Transcription

1 UNAUDITED FINANCIAL STATEMENT ANNOUNCEMENT FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2017 This announcement has been reviewed by the Company s sponsor, RHT Capital Pte. Ltd. (the Sponsor ), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the SGX-ST ). The Sponsor has not independently verified the contents of this announcement. This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement. The contact person for the Sponsor is Mr. Nathaniel C.V., Registered Professional, RHT Capital Pte. Ltd., at 9 Raffles Place, #29-01 Republic Plaza Tower 1, Singapore , telephone (65) PART 1 - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF HALF-YEAR RESULTS 1(a)(i) An income statement and statement of comprehensive income (for the ) together with a comparative statement for the corresponding period of the immediately preceding financial year. For the six-month period 1 Apr 2017 to 30 Sep Apr 2016 to 30 Sep 2016 Increase / S$ 000 S$ 000 (Decrease) (Unaudited) (Unaudited) Revenue 87,477 47, % Cost of sales (81,893) (46,342) 76.7% Gross profit 5,584 1, % Other income % Other losses, net (500) (607) -17.6% Expenses: Distribution and marketing (517) (541) -4.4% Administration (3,875) (3,431) 12.9% Other expenses (193) (35) 451.4% Finance (422) (160) 163.8% Share of profit of associated company % Profit/(loss) before income tax 819 (2,691) nm Income tax (expense)/credit (11) 9 nm Net profit/(loss) attributable to equity holders of the Company 808 (2,682) nm Other comprehensive (loss)/income, net of tax: Share of comprehensive loss of associated company (321) (165) 94.5% Currency translation differences (245) 138 nm Total comprehensive income/(loss) attributable to equity holders of the Company 242 (2,709) nm nm: Not meaningful Page 1 of 12

2 1(a)(ii) Notes to the Income Statement The s profit/(loss) before income tax is arrived at after charging/(crediting): For the six-month period 1 Apr 2017 to 30 Sep Apr 2016 to 30 Sep 2016 Increase / S$ 000 S$ 000 (Decrease) (Unaudited) (Unaudited) Depreciation of property, plant and equipment % Amortisation of intangible assets % Gain on disposal of property, plant and equipment (78) - nm Foreign exchange loss % Interest income (8) (28) -71.4% Sale of scrap and other materials (11) (24) -54.2% Interest on borrowings % nm: Not meaningful Page 2 of 12

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 period. Company 30 Sep Mar 2017 Increase / 30 Sep Mar 2017 Increase / S$ 000 S$ 000 (Decrease) S$ 000 S$ 000 (Decrease) (Unaudited) (Audited) (Unaudited) (Audited) ASSETS Current assets Cash and cash equivalents 5,607 11, % % Financial assets, at fair value through profit or loss % - - nm Trade and other receivables 26,751 22, % 21,136 22, % Inventories 12,873 14, % - - nm Other current assets 1, % % 47,147 49, % 21,756 22, % Non-current assets classified as held-for sale 7,300 7, % - - nm 54,447 56, % 21,756 22, % Non-current assets Investment in subsidiary corporations - - nm 17,461 17, % Investment in associated company 8,550 8, % 9,722 9, % Property, plant and equipment 1,381 1, % 2 - nm Intangible assets 2,910 3, % % 12,841 13, % 27,247 27, % Total Assets 67,288 69, % 49,003 49, % LIABILITIES Current liabilities Trade and other payables 30,170 34, % 26,083 14, % Current income tax liabilities % - - nm Borrowings 1,853 10, % - 10, % Provision % - - nm 32,058 45, % 26,083 25, % Non-current liabilities Borrowings 11,363 11, % - 11, % Total liabilities 43,421 56, % 26,083 36, % Net Assets 23,867 12, % 22,920 12, % EQUITY Capital and Reserves attributable to equity holders of the Company Share capital 59,927 48, % 59,927 48, % Treasury shares (736) (736) 0.00% (736) (736) 0.00% Accumulated losses (38,344) (39,152) -2.06% (36,129) (35,566) 1.58% Statutory reserves 2,257 2, % - - nm Capital reserves (142) (142) 0.00% (142) (142) 0.00% Other reserves 905 1, % % Total equity 23,867 12, % 22,920 12, % nm: Not meaningful Page 3 of 12

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 30 Sep 2017 (Unaudited) As at 31 Mar 2017 (Audited) Secured Unsecured Secured Unsecured S$'000 S$'000 S$'000 S$'000-1, ,660 Amount repayable after one year As at 30 Sep 2017 (Unaudited) As at 31 Mar 2017 (Audited) Secured Unsecured Secured Unsecured S$'000 S$'000 S$'000 S$'000-11,363-11,363 Details of any collateral Bank borrowings are secured by short-term bank deposits and finance lease liabilities are secured by the rights to the leased machineries and motor vehicles which will revert to the lessor in the event of default by the. Page 4 of 12

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 period. For the six-month period 1 Apr 2017 to 30 Sep Apr 2016 to 30 Sep 2016 S$ 000 S$ 000 (Unaudited) (Unaudited) Cash flows from operating activities Net profit/(loss) 808 (2,682) Adjustments for: - Income tax expense/(credit) 11 (9) - Amortisation of intangible assets Depreciation of property, plant and equipment Reversal of impairment of property, plant and equipment (160) - - Gain on disposal of property, plant and equipment (78) - - Share of profit of associated company (414) (366) - Interest income - bank deposits (8) (28) - Interest expense Unrealised currency translation (gains)/losses (227) 185 1,350 (2,126) Changes in working capital: - Trade and other receivables (4,351) (804) - Inventories 1,753 (3,093) - Other current assets (1,250) 79 - Trade and other payables (4,694) 6,033 Cash (used in)/generated from operations (7,192) 89 - Income tax credit/(paid) 6 (25) Net cash (used in)/generated from operating activities (7,186) 64 Cash flows from investing activities Additions to property, plant and equipment (66) (191) Interest received 8 28 Net cash flows used in investing activities (58) (163) Cash flows from financing activities Proceeds from borrowings 1, Repayment of finance lease liabilities (1) (27) Interest paid (331) (101) Net cash flows generated from financing activities 1, Net (decrease)/increase in cash and cash equivalents (5,726) 461 Cash and cash equivalents at beginning of financial period 9, Effects of currency translation on cash and cash equivalents 47 - Cash and cash equivalents at end of financial period 3,700 1,348 Cash and cash equivalents comprised: Cash and bank balances 3,700 1,348 Short term bank deposits 1, ,607 1,553 Less: Short term bank deposits pledged as collateral (1,907) (205) 3,700 1,348 Page 5 of 12

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 comparative statement for the corresponding period of the immediately preceding financial period. Attributable to Equity Holders of the Share capital Accumulated losses Other reserves Statutory reserve Capital reserve Treasury share Total (Unaudited) S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Balance as at 1 April ,975 (39,152) 1,632 2,257 (142) (736) 12,834 Issuance of new shares 10,952 - (161) ,791 Total comprehensive income/(loss) for the financial period (566) Balance as at 30 September ,927 (38,344) 905 2,257 (142) (736) 23,867 Attributable to Equity Holders of the Share capital Accumulated losses Other reserves Statutory reserve Capital reserve Treasury share Total (Unaudited) S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Balance as at 1 April ,932 (31,670) 616 2,257 (142) (736) 19,257 Total comprehensive income/(loss) for the financial period - (2,682) (60) (2,709) Balance as at 30 September ,932 (34,352) 556 2,257 (109) (736) 16,548 Share Accumulated Other Capital Treasury Company Capital losses reserves reserve share Total (Unaudited) S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Opening Balance at 1 April ,975 (35,566) 161 (142) (736) 12,692 Issuance of new shares 10,952 - (161) ,791 Total comprehensive loss for the financial period - (563) (563) Balance as at 30 September ,927 (36,129) - (142) (736) 22,920 Share Accumulated Capital Treasury Capital Losses reserve share Total (Unaudited) S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Balance as at 1 April ,932 (15,708) (142) (736) 32,346 Total comprehensive loss for the financial period - (340) - - (340) Balance as at 30 September ,932 (16,048) (142) (736) 32,006 Page 6 of 12

7 1(d)(ii) Details of any changes in the company s share capital arising from right 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 the number of shares that may be issued on conversion of all the outstanding convertibles, if any, against the total number of issued shares excluding treasury shares and subsidiary holdings 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 period. State also the number of shares held as treasury shares and the number of subsidiary holdings, if any, and the percentage of the aggregate number of treasury shares and subsidiary holdings held against the total number of shares outstanding in a class that is listed 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. Issued and fully paid Number of ordinary shares Share Capital (S$) Balance as at 1 April ,226,617 48,975,419 Issuance of shares on 28 June ,006,296 10,951,404 Balance as at 30 September ,232,913 59,926,823 The outstanding convertibles and treasury shares on 30 September 2017 are as follow: Purchased and fully paid Number of treasury shares Share Capital (S$) Balance as at 1 April 2017 and 30 September ,682, ,384 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of current financial period and as at the end of the immediately preceding year. At 30 Sep 2017 At 31 Mar 2017 Total number of issued shares excluding treasury shares 672,550, ,544,617 There were no treasury shares purchased during the period from 1 April 2017 to 30 September (d)(iv) A statement showing all sales, transfers, cancellation and/or use of treasury share as at the end of the current financial period reported on. Not applicable. There were no uses of treasury shares during and as at the end of the current finanacial period ended 30 September (d)(v) A statement showing all sales, transfers, cancellation and/or use of subsidiary holdings 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 independent auditor. 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 has applied the same accounting policies and methods of computation in the preparation of the financial statements for the current financial period, which are consistent with those described in the audited financial statements for the financial year ended 31 March 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. For the six-month period 1 Apr 2017 to 30 Sep Apr 2016 to 30 Sep 2016 Profit/(loss) attributable to equity holders of the Company (S$ 000) 808 (2,682) Basic and diluted profit/(loss) per ordinary shares attributable to equity holders of the Company (SGD cents) 0.15 (0.77) Weighted average number of shares used in computation of basic and diluted LPS 521,847, ,505,469 Basic and diluted earnings/(loss) per share is computed by dividing the profit/(loss) attributable to the equity holders of the Company in each financial period by the weighted average number of ordinary shares outstanding as at the end of the respective financial period. There were no potentially dilutive ordinary shares in existence during the six months ended 30 September 2017 ("HY2018") and the six months ended 30 September 2016 ("HY2017"). Accordingly, the basic and fully diluted earnings/(loss) per share were the same for both HY2018 and HY2017. Page 7 of 12

8 7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the (a) (b) Current financial period reported on; and Immediately preceding financial year. Company 30-Sep Mar Sep Mar-2017 S$ cent S$ cent S$ cent S$ cent Net asset value ( NAV ) per ordinary share The NAV per ordinary share for the and the Company as at 30 September 2017 and 31 March 2017 were calculated based on 686,232,913 and 348,226,617 ordinary shares in issue as at the respective reporting dates. 8. 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, cost, 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. REVIEW OF STATEMENT OF COMPREHENSIVE INCOME FOR THE GROUP Revenue The s revenue increased by approximately S$39.9 million or 83.7% from S$47.6 million in HY2017 to S$87.5 million in HY2018. Revenue from the Precision Injection Moulding ("PPIM") and Design, Fabrication and Sale of Precision Injection Molds ("MDF") segment increased marginally from S$3.6 million in HY2017 to S$4.0 million in HY2018 while revenue from the electronic components distribution segment increased substantially from S$44.0 million in HY2017 to S$83.5 million in HY2018 to bring about a net increase in total revenue. The gross profit of the increased by S$4.3 million from S$1.3 million in HY2017 to S$5.6 million in HY2018. Gross profit margin was 6.4% in HY2018 as compared to 2.7% in HY2017. This increase was due to leaner manufacturing with tighter control on direct overheads and selection of products with higher margin and commission. Other income and Other losses, net The s other income have decreased by S$0.1 million or 26.6% from S$0.4 million in HY2017 to S$0.3 million in HY2018 primarily due to lesser claims of government grants. Other losses was S$0.5 million for HY2018 as compared to S$0.6 million in HY2017. The other losses in HY2017 was mainly due to the revaluation loss of foreign currencies of the electronic components distribution segment, which included United States Dollar ( USD ), Chinese Yuan ("RMB"), HK Dollar ("HKD"), Thai Baht ("THB") and Malaysia Ringgit ( MYR ). Distribution and marketing expenses The marginal decrease of approximately S$0.02 million or 4.4% was mainly due to a decrease in travelling expenses and salary cost. Page 8 of 12

9 Administrative expenses Administrative expenses increased by approximately S$0.5 million or 12.9% from S$3.4 million in HY2017 to S$3.9 million in HY2018. This was mainly from an increase in amortisation expense of S$0.3 million arising from the acquisition of 2 product distribution rights in the electronic components distribution segment, as well as an increase in staff cost of S$0.2 million, which is in line with the increased sales in the same segment. Other expenses The s other expenses increased by S$0.2 million in HY2018 as compared to HY2017. This was largely due to a write off of obsolete materials and inventories by a subsidiary corporation in the. Finance expenses The s finance expenses increased by S$0.2 million or 163.8% from S$0.2 million in HY2017 to S$0.4 million in HY2018. The increment was due to an increase in usage of Letter of Credit/Trade Receivables financing by the electronic components distribution segment and interest expenses incurred at the conversion of the convertible loan of US$8.0 million entered into on 7th October 2016 between the Company and Accrelist Ltd. Income Tax expense The s tax expense decreased by S$0.02 million from a tax credit of S$0.01 million in HY2017 to a tax expense of S$0.01 million in HY2018. This was from an increase in the tax expense paid on behalf of employees for a subsidiary corporation. REVIEW OF FINANCIAL POSITION Current Assets The s current assets decreased by approximately S$1.9 million or 3.3% from S$56.3 million as at 31 March 2017 to S$54.4 million as at 30 September This was due to the decrease in inventories of S$1.7 million and cash and cash equivalents of S$5.7 million, offset by an increase in trade and other receivables of S$4.4 million and other currents assets of S$1.3 million. Non-current Assets Non-current assets decreased by S$0.4 million or 3.6% from S$13.3 million as at 31 March 2017 to S$12.8 million as at 30 September 2017, mainly due to decrease in property, plant and equipment from depreciation of S$0.2 million and amortisation expenses of S$0.3 million on intangible assets. This decrease was offset by a marginal increase in investment in associated company, EG Industries Berhad, of S$0.1 million from the share of profits and other comprehensive income from the latter. Current Liabilities The s current liabilities decreased by approximately S$13.5 million or 29.5% from S$45.5 million as at 31 March 2017 to S$32.0 million as at 30 September This decrease was due to the decrease in borrowings of S$8.8 million from S$10.7 million as at 31 March 2017 to S$1.9 million as at 30 September 2017 as a result of conversion of the convertible loan into ordinary shares of the Company, a decrease in trade and other payables of S$3.9 million which was in line with the decrease in cash and cash equivalents. The reported positive working capital of S$22.4 million as at 30 September 2017 as compared to S$10.9 million as at 31 March This increase was mainly due to increase in trade and other receivables from the increase in sales, decrease in trade and other payables and decrease in short-term borrowings. Page 9 of 12

10 REVIEW OF CASHFLOW STATEMENT Net cash flow used in operating activities for HY2018 comprised of operating profit before working capital changes of S$1.4 million and cash used by operations of S$8.6 million, resulting in a net cash used in operating activities of S$7.2 million. The working capital ouflow was mainly due to an increase in trade and other receivables of S$4.4 million, a decrease in trade and other payables of S$4.7 million and increase in other current assets of S$1.3 million. The cash outflow was offset by a decrease in inventories of S$1.7 million. Net cash used in investing activities was S$0.06 million. This was mainly due to acquisition of additional property, plant and equipment offset by interest received. The cash generated from financing activities of S$1.5 million was mainly due to proceeds from borrowings of S$1.8 million and this was offset by interest paid of S$ 0.3 million. 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. Not applicable. No prospect statement or forecast has been previously disclosed to shareholders. 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 event that may affect the group in the next reporting period and the next 12 months. The remains cautiously optimistic about the overall outlook for the electronics manufacturing industry. According to the Semiconductor Industry Association s Global Sales Report for third quarter of 2017, worldwide sales of semiconductors reached US$107.9 billion in the third quarter of 2017, marking the industry's highest-ever quarterly sales and an increase of 10.2% compared to the previous quarter. Semiconductor product categories which registered strong growth include memory products like DRAM and NAND flash, both of which posted major year-to-year growth in September The encouraging demand for memory products is an indicator of improved global demand for a wide range of electronic products. Hence, the s Electronics as well as its Mechanical segment are poised for continued growth in the financial year ahead. Page 10 of 12

11 11. Dividend (a) Any dividend declared for the current financial period reported on? No b) Corresponding Period of the Immediately Preceding Financial Period Dividend declared for the corresponding period of the immediately preceding financial period? No (c) Whether the dividend is before tax, net of tax or tax exempt. If before tax or net of tax, state the tax rate and the country where the dividend is derived. (If the dividend is not taxable in the hands of shareholders, this must be stated). Not applicable. (d) The date the dividend is payable. Not applicable. (e) Book closure date. Not applicable. 12. If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared or recommended for the financial period ended 30 September If the has obtained a general mandate from shareholders for Interested Person Transactions ( IPT ), the aggregate value of such transactions as required under Rule 920 (1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect. For HY2018, the has not entered into any new IPT. The remaining IPT which is greater than S$100,000 was entered in FY2017 with Accrelist Ltd was in relation to : 1) Interest of US$1,200,000 payable under the Direct Loan Agreement and, 2) Repayment of the Direct Loan Agreement through the transfer of 24,972,616 ordinary shares held by the Company in EG Industries Berhad. The does not have a general mandate from its shareholders for IPT s. Page 11 of 12

12 14. Confirmation by the Board pursuant to Rule 705(5) of the listing manual The Board of Directors of the Company hereby confirms to the best of our knowledge that nothing has come to their attention which may render the unaudited financial statements for for the six months ended 30 September 2017 to be false or misleading in any material aspect. 15. Confirmation by the Board pursuant to Rule 720(1) of the listing manual On behalf of the Board of Directors of the Company, we hereby confirm that we have procured all the required undertakings to comply with the Exchange s listing rules from all the Directors and Executive Officers of the Company. BY ORDER OF THE BOARD Terence Tea Yeok Kian Non-Executive Chairman 14 November 2017 Page 12 of 12