Group Fourth Quarter Ended

Transcription

1 PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS 1(a) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year. Consolidated Income Statement Fourth Quarter Ended Year Ended 31-Dec Dec-15 Increase/ Increase/ 31-Dec Dec-15 (Decrease) (Decrease) S$ 000 S$ 000 % S$ 000 S$ 000 % Revenue 7,628 7, ,622 34,851 (26) Other income (21) 1,499 4,233 (65) Changes in inventories of work-in-progress and finished goods (436) (1,013) (57) (2,973) (2,943) 1 Raw materials and consumables used (2,496) (1,883) 33 (6,438) (15,185) (58) Staff and related costs (1,844) (2,735) (33) (8,467) (10,914) (22) Depreciation of property, plant and equipment (264) (268) (1) (1,022) (1,105) (8) Impairment loss on property, plant and equipment (60) (705) (91) (60) (783) (92) Other operating expenses (1,855) (2,536) (27) (7,932) (15,067) (47) Results from operating activities 1,354 (978) NM 229 (6,913) NM Finance income (27) Finance costs (30) (22) 36 (86) (122) (30) Net finance income (68) NM Profit/(loss) before income tax 1,365 (944) NM 339 (6,859) NM Income tax (expense)/credit (56) 88 NM (29) 173 NM Profit/(loss) for the period/year 1,309 (856) NM 310 (6,686) NM Other comprehensive income Items that will not be reclassified to profit or loss: Net surplus on revaluation, net of tax - property, plant and equipment Income tax on net surplus on revaluation of property, plant and equipment Items that are or may not be reclassified subsequently to profit or loss : Exchange differences on monetary items forming part of net investment in foreign operations Realisation of foreign currency translation differences arising from liquidation of a subsidiary Translation differences relating to financial statements of foreign subsidiaries Other comprehensive income for the period/year, net of income tax (44) (44) (29) (52) (44) (29) (52) (44) (223) (1,731) (87) (174) (2,756) (94) NM 363 (2,668) NM (546) 1,174 NM (585) 2,747 NM (313) (391) (20) (303) (2,511) (88) Total comprehensive income for the period/year 996 (1,247) NM 7 (9,197) NM Profit/ (loss) for the period attributable to : - Owners of the parent 1,390 (731) NM 581 (6,357) NM - Non-controlling interests (81) (125) (35) (271) (329) (18) Profit/(loss) for the period/year 1,309 (856) NM 310 (6,686) NM Total comprehensive income for the period attributable to : - Owners of the parent 1,084 (1,140) NM 286 (8,871) NM - Non-controlling interests (88) (107) (18) (279) (326) (14) Total comprehensive income for the period/year 996 (1,247) NM 7 (9,197) NM Profit/ (loss) per share - Basic 0.14 cent (0.08) cent 0.06 cent (0.68) cent - Diluted 0.14 cent (0.08) cent 0.06 cent (0.68) cent NM : not meaningful Page 1 of 13

2 1(a)(i) Profit before taxation is stated after charging/(crediting) the followings:- Fourth Quarter Ended Year Ended 31-Dec Dec Dec Dec-15 S$ 000 S$ 000 S$ 000 S$ 000 Allowance for doubtful debts ,558 Bad debts recovered (26) - (26) - Depreciation of property, plant and equipment ,022 1,105 Impairment loss on property, plant & equipment Reversal for obsolete inventories (189) (164) (189) (164) Exchange (gain)/loss (501) (459) (47) 4,052 (Gain)/loss on disposal of property, plant and equipment (21) 7 (25) 7 Gain on disposal of assets held for sale (110) Interest income from financial institution (41) (56) (196) (176) Change in fair value of investment properties (10) (9) (10) (9) Interest on borrowings Loss/(gain) on liquidation of a subsidiary (2,668) Page 2 of 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. Non-current assets Company 31-Dec Dec Dec Dec-15 S$ 000 S$ 000 S$ 000 S$ 000 Property, plant and equipment 7,725 8, Investment properties Subsidiaries - - 2,431 2,431 Long term receivables 2,916 3,345 3,254 3,716 10,741 11,817 6,057 6,547 Current assets Inventories 10,477 8,480 1, Trade and other receivables 14,669 12,773 22,355 35,549 Other investments Cash and cash equivalents 32,435 34,209 27,426 28,158 57,583 55,464 51,026 64,473 Total assets 68,324 67,281 57,083 71,020 Share capital and reserves Share capital 143, , , ,447 Capital reserve Revaluation reserve 2,453 2, Currency translation reserve (7,207) (6,819) - - Accumulated losses (76,011) (76,707) (126,228) (110,979) 62,772 58,800 16,905 28,468 Non-controlling interests (3,697) (3,418) - - Total equity 59,075 55,382 16,905 28,468 Non-current liabilities Loans and borrowings Long-term payables Deferred tax liabilities Current liabilities Trade and other payables 3,830 8,014 35,341 39,124 Provision for warranties Loans and borrowings 3,491 1,856 3,209 1,856 Current tax payable ,283 10,919 39,366 41,791 Total liabilities 9,249 11,899 40,178 42,552 Total equity and liabilities 68,324 67,281 57,083 71,020 Page 3 of 13

4 1(b)(ii) Aggregate amount of group's borrowings and debt securities. (a) Amount repayable in one year or less, or on demand 31-Dec Dec-15 S$ 000 S$ 000 S$ 000 S$ 000 Secured Unsecured Secured Unsecured 7 3, ,833 (b) Amount repayable after one year 31-Dec Dec-15 S$ 000 S$ 000 S$ 000 S$ 000 Secured Unsecured Secured Unsecured Page 4 of 13

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. Operating Activities Fourth Quarter Ended Year Ended 31-Dec Dec Dec Dec-15 S$ 000 S$ 000 S$ 000 S$ 000 Profit/(loss) for the period/year 1,309 (856) 310 (6,686) Adjustments for: (Gain)/loss on disposal of property, plant and equipment (21) 7 (25) 7 Depreciation of property, plant and equipment ,022 1,105 Impairment loss on property, plant and equipment Changes in fair value on investment properties (10) (9) (10) (9) Interest on borrowing Interest income from financial institutions (41) (56) (196) (176) Gain on disposal of assets held for sale (110) Reversal for obsolete inventories (189) (164) (189) (164) Allowance for doubtful receivables ,967 Loss/(gain) on liquidation of a subsidiary (2,668) Reversal of provision for warranties (50) (23) (140) (23) Bad debts recovered (26) - (26) - Income tax expense/(credit) 56 (88) 29 (173).. 1, ,309 (6,025) Changes in working capital: Inventories 549 1,310 (1,993) 4,292 Trade and other receivables (1,510) 1,340 (1,774) 3,059 Trade and other payables (1,320) (944) (4,231) 1,401 Cash (used in)/generated from operations (536) 2,136 (6,689) 2,727 Income tax refunded Income tax paid (8) (11) (47) (292) Cash (used in)/generated from operating activities (544) 2,170 (6,736) 2,480 Investing Activities Interest received Deposit placed for acquisition of property, plant and equipment (6,666) Proceeds from sale of property, plant and equipment Proceed from sale of assets held for sale Purchase of property, plant and equipment (144) (640) (391) (1,583) Cash used in investing activities (100) (577) (188) (7,541) Financing Activities Payment of finance lease liabilities (6) (7) (23) (32) Advances from bank term loans and trust receipts ,307 6,712 Repayment of bank term loans and trust receipts (1,169) (2,647) (3,938) (8,547) Proceeds from short term loans Repayment of short term loans (461) - (461) - Decrease in fixed deposit pledged Interest paid (30) (22) (86) (122) Proceeds from allotment of shares 3,550-3,686 8,353 Cash from/(used in) financing activities 2,504 (2,204) 5,227 6,368 Net increase/(decrease) in cash and cash equivalents 1,860 (611) (1,697) 1,307 Effect of exchange rate fluctuations on cash held (122) 107 (85) (574) Cash and cash equivalents as at beginning of period/ year (excluding pledged deposits) 30,659 34,683 34,179 33,446 Cash and cash equivalents as at end of period/ year (excluding pledged deposits) 32,397 34,179 32,397 34,179 Represented by : Cash at banks & in hands 9,638 8,928 9,638 8,928 Fixed deposits 22,797 25,281 22,797 25,281 Less : Fixed deposits pledged (38) (30) (38) (30) Cash and cash equivalents as at end of the period/ year 32,397 34,179 32,397 34,179 Page 5 of 13

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 the capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. As at 1 Jan 2016 Total comprehensive profit for the year : Profit for the year Other comprehensive income : Exchange differences on monetary items forming part of net investment in foreign operations Realisation of foreign currency translation arising from liquidation of a subsidiary Realisation of revaluation reserve Net surplus on revaluation of property, plant and equipment Translation differences relating to financial statements of foreign subsidiaries Income tax on net surplus on revaluation of property, plant and equipment Total other comprehensive income Attributable to owners of the parent Currency Non-controlling Capital Revaluation Accumulated Total equity Share capital translation Total interests reserve reserve losses reserve S$' 000 S$' 000 S$' 000 S$' 000 S$' 000 S$' 000 S$' 000 S$' , ,475 (6,819) (76,707) 58,800 (3,418) 55, (271) (174) - (174) - (174) (115) (577) - (577) (8) (585) - - (29) - - (29) - (29) - - (22) (388) 115 (295) (8) (303) Total comprehensive income - - (22) (388) (279) 7 Transactions with owners, recognised directly in equity Issue of shares from warrants exercised Total contributions by and distribution to owners As at 31 December , ,686-3,686 3, ,686-3, , ,453 (7,207) (76,011) 62,772 (3,697) 59,075 Page 6 of 13

7 As at 1 Jan 2015 Total comprehensive profit for the year : Loss for the year Other comprehensive income : Exchange differences on monetary items forming part of net investment in foreign operations Realisation of foreign currency translation arising from liquidation of a subsidiary Realisation of revaluation reserve Net surplus on revaluation on property,plant and equipment Translation differences relating to financial statements of foreign subsidiaries Income tax on net surplus on revaluation of property, plant and equipment Total other comprehensive income Total comprehensive income Transactions with owners, recognised directly in equity Share capital Capital reserve Attributable to owners of the parent Currency Revaluation translation reserve reserve Accumulated losses S$' 000 S$' 000 S$' 000 S$' 000 S$' 000 S$' 000 S$' 000 S$' , ,779 (4,139) (70,820) 59,318 (3,092) 56, (6,357) (6,357) (329) (6,686) (2,756) - (2,756) - (2,756) (2,668) - (2,668) - (2,668) - - (470) ,744-2, , (52) - - (52) - (52) - - (304) (2,680) 470 (2,514) 3 (2,511) - - (304) (2,680) (5,887) (8,871) (326) (9,197) Total Non-controlling interests Total equity Issue of shares from share placement Issue of shares from warrants exercised 7, ,970-7, Total conributions by and distribution to owners 8, ,353-8,353 As at 31 December , ,475 (6,819) (76,707) 58,800 (3,418) 55,382 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 the capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. Company As at 1 Jan 2016 Attributable to owners of the Company Share capital Accumulated losses Total S$' 000 S$' 000 S$' ,447 (110,979) 28,468 Total comprehensive income for the year Loss for the year - (15,249) (15,249) Transactions with owners, recognised directly in equity Issue of shares from warrants exercised 3,686-3,686 As at 31 December ,133 (126,228) 16,905 As at 1 Jan ,094 (108,578) 22,516 Total comprehensive income for the year Loss for the year - (2,401) (2,401) Transactions with owners, recognised directly in equity Issue of shares from share placement 7,970-7,970 Issue of shares from warrants exercised As at 31 December ,447 (110,979) 28,468 Page 7 of 13

8 1(d)(ii) Details of changes in the Company's share capital arising from right issue, bonus issues, 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 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. During the financial year ended 31 December 2016, the Company issued 184,300,660 new shares from warrants exercised. On 10 November 2016, 163,359,041 unexercised warrants expired. As at 31 December 2016, the Company has no outstanding warrants. During the financial year ended 31 December 2015, the Company has issued 19,168,000 new shares from warrants exercised. On 9 April 2015, the Company issued and allotted 160,000,000 new ordinary shares in the capital of the Company pursuant to a private placement at an issue price of $0.05 for each Placement Share. As at 31 December 2015, the Company has 347,659,701 outstanding warrants. 1(d)(iii) 1(d)(iv) 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 1 Jan 2016 Issue of shares from warrants exercised As at 31 December 2016 Number of ordinary shares 979,515, ,300,660 1,163,816,419 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. Whether the figures have been audited, or review and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagement to Review Financial Statements), or an equivalent standard). The figures have not been audited nor reviewed by our auditors. Whether the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis matter). Not applicable. 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 adopted the same accounting policies and method of the computation in the financial statements for the current period as compared with the audited financial statements for financial year ended 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. The has adopted the new/revised Singapore Financial reporting Standards (FRSs) that are mandatory for financial period beginning on and after 1 January The adoption of the new/revised FRSs does not have material financial impact on the 's results. 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. Earnings per ordinary share of the for the period based on net profit attributable to shareholders:- Based on weighted average of 1,016,017,022 ordinary shares (2015:934,025,388 ordinary shares) Year Ended 31-Dec cent Year Ended 31-Dec-15 (0.68) cent On a fully diluted basis 0.06 cent (0.68) cent 7 Net asset value (for the issuer and group) per ordinary share based on the issued share capital of the issuer at the end of the (a) current period reported and (b) immediately preceding financial year. Net asset value per ordinary share based on issued share capital of 1,163,816,419 ordinary shares (2015:979,515,759 ordinary shares) as at 31 December 2016 Company 31-Dec Dec Dec Dec cent 6.00 cent 1.45 cent 2.91 cent Page 8 of 13

9 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 year reported on. The 's revenue increased by $0.3 million from $7.3 million for fourth quarter ending 31 December 2015 (4Q2015) to $7.6 million for the fourth quarter ending 31 December 2016 (4Q2016). The increase was mainly due to quarter on quarter increase in project sales. The revenue decreased by $9.2 million from $34.8 million for the year ended 31 December 2015 (FY2015) to $25.6 million for year ended 31 December 2016 (FY2016). This was mainly due to decrease in sales from projects and sale of aluminium and related products in FY2016 compared to FY2015. Other income decreased by $0.2 million from $0.9 million in 4Q2015 to $0.7 million in 4Q2016 mainly due to less sale of scrap and rental income in 4Q2016. Other income decreased by $2.8 million from $4.2 million in FY2015 to $1.4 million in FY2016 mainly due to an absence of a one off gain on liquidation of subsidiary, PT Cakra of $2.7 million in FY2015. Changes in inventories of work-in-progress, finished goods, raw materials and consumables used decreased mainly due to lower sales for FY2016 and cost savings for projects which were mostly completed as there were less accrued costs. Staff and related costs decreased by $0.9 million from $2.7 million in 4Q2015 to $1.8 million in 4Q2016 mainly due to the Company's efforts to reduce costs. Costs were reduced in the following areas: (i) direct labour and contractor costs were reduced as the continue in its efforts to be more efficient, and (ii) provision for staff costs were greatly reduced. Staff and related costs decreased by $2.4 million from $10.9 million in FY2015 to $8.5 million in FY2016 mainly due to decrease in revenue during the year which resulted in less direct labour and subcontractors' costs and the Company's efforts to reduce costs during 4Q2016. Operating expenses decreased by $0.7 million from $2.5 million in 4Q2015 to $1.8 million in 4Q2016 mainly due to absence of a provision for doubtful debts of $0.2 million and reduction in rental of $0.4 million. Operating expenses decreased by $7.2 million from $15.1 million for FY2015 to $7.9 million in FY2016 mainly due to (i) exchange loss of $4.1 million in FY2015 and (ii) provision of doubtful debts of $1.6 million in FY2015. As a result, the has a profit before income tax of $1.5 million in 4Q2016 and $0.3 million in FY2016 compared to a loss of $0.9 million in 4Q2015 and $6.8 million in FY2015. Property, plant and equipment decreased by $0.7 million from $8.4 million in FY2015 to $7.7 million in FY2016 mainly due to depreciation of $1.0 million. The decrease was partly offset by additions to fixed assets of $0.4 million. Long term receivables decreased by $0.4 million from $3.3 million in FY2015 to $2.9 million in FY2016 mainly due to completion of projects in which the retention sum was refunded by the main contractor to the. Inventories increased by $2.0 million from $8.5 million in FY2015 to $10.5 million in FY2016 mainly due to increase in raw materials of $1.4 million which was purchased for production and increase in construction work-in-progress of $0.3 million which was work done but unbilled for projects. Trade and other receivables increased by $1.9 million from $12.8 million in FY2015 to $14.7 million in FY2016 mainly due to (i) higher sales at the end of period, and (ii) project sales which were invoiced near the end of the period/year as the negotiated with customers to finalise the outstanding projects. Most of these receivables were collected subsequent to year end. Trade and other payables decreased by $4.2 million from $8.0 million in FY2015 to $3.8 million in FY2016 mainly due to less accruals for projects and operating costs resulting from lower revenue, as well as reduction in staff costs due to 's efforts to reduce costs. Loans and borrowings increased by $1.6 million from $1.9 million in FY2015 to $3.5 million in FY2016 mainly due to increase in bank borrowings for purchases of raw materials to be used in production. The 's cash and cash equivalents as at 31 December 2016 was $32.4 million (31 December 2015: $34.2 million). Reportable Segment Project Segment This segment focused on the business of supply and installation of aluminium windows and doors for residential projects in both public and private sectors in Singapore. Revenue for FY2016 was $14.2 million, a decrease of 31.7% from $20.8 million reported in FY2015. Aluminium related products segment The aluminium related products segment reported a decrease of 18.7% revenue from $14.1 million in FY2015 to $11.4 million in FY2016. Cement segment The cement segment has not commenced production yet. Energy related products and services and Others segment The had shelved the project indefinitely since FY2014. The energy related products and services segment has not commenced production yet. Geographical segment Singapore's segment decreased by 28.4% from $26 million in FY2015 to $18.6 million in FY2016 mainly due to decrease in revenue from projects. The revenue from Malaysia segment decreased from $8.9 million in FY2015 to $7.0 million in FY2016, due to decrease in revenue from the aluminium related products segment. Page 9 of 13

10 9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. The 4Q 2016 financial results are in line with the comments made under paragraph 10 of 3Q 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 order book as of 31 December 2016 including variation orders was about S$25 million (30 September 2016 : S$28 million). The operating environment continues to be challenging. The will take steps to find ways to improve the 's performance. 11 Dividend. (a) Current Financial Period Reported on Any dividend declared for the current financial period reported on? None. (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? None. (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 recommended for the financial year ended 31 December If the group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transaction as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect. The has not obtained a general mandate for IPTs from the 's shareholders. Name of interested person Aggregate value of all interested person transactions during the financial year under review (excluding transactions less than $100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920) Aggregate value of all interested person transactions under shareholders' mandate pursuant to Rule 920(excluding transaction less than $100,000) Zhongcai International Mohir Cement Limited Liability Company ( ZIMC ) - Unsecured, interest free loan from ZIMC, repayable within one year. - ZIMC controlled by Mr Zhang Zengtao. USD500,000 Not applicable Asia Gain Investments Limited ( AGIL ) - Unsecured, interest free loan from AGIL, repayable within one year. - AGIL controlled by a family member of Mr Zhang Zengtao. USD100,000 Not applicable 14 Confirmation by the Board pursuant to Clause 705(4) of the Listing Manual. The Board of Directors of the Company hereby confirms to the best of our knowledge that nothing has come to the attention of the Board of Directors of the Company which may render the financial statements for the financial period ended 31 December 2016 to be false or misleading in any material respect. Page 10 of 13

11 14(a) Information about reportable segment profit or loss, assets and liabilities Reportable segments are operating segments that are based on differences in products & services. FY 2016 Project Aluminium related products Investment holding Cement Energy related products and services and Others Total S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 Revenue from external customers 14,175 11, ,622 Intersegment revenue 9,424 4, ,733 Interest revenue Interest expense (86) (86) Depreciation of property, plant and equipment (194) (620) (206) (2) - (1,022) Reportable segment profit/(loss) before income tax Income tax (expense)/credit 2,582 (936) (452) (504) (351) 339 (54) 43 (18) - - (29) Reportable segment profit/(loss) for the year 2,528 (893) (470) (504) (351) 310 Other material non-cash items : Changes in fair value on investment properties Reversal of obsolete inventories (88) (101) (189) Allowance for doubtful receivables Impairment loss on property, plant and equipment Reportable segment assets 38,893 18,420 3,612 7, ,324 Expenditure for reportable segment non-current assets (125) (193) - (73) - (391) Reportable segment liabilities 3,878 1, ,925 FY 2015 Revenue from external customers Intersegment revenue Interest revenue Interest expense Depreciation of property, plant and equipment Reportable segment profit/(loss) before income tax Income tax (expense)/credit Reportable segment profit/(loss) for the year Project Aluminium related products Investment holding Cement Energy related products and services and Others Total S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 20,772 14, ,851 9,582 4, , (120) (1) - - (1) (122) (208) (675) (222) - - (1,105) (185) (4,776) (1,174) (388) (336) (6,859) (141) (4,722) (1,099) (388) (336) (6,686) Other material non-cash items : Changes in fair value on investment properties - (9) (9) Reversal of obsolete inventories (54) (110) (164) Allowance for doubtful receivables 1, ,967 Impairment loss on property, plant and equipment Reportable segment assets 38,073 17,782 3,769 7, ,281 Expenditure for reportable segment non-current assets Reportable segment liabilities (348) (601) - (556) (78) (1,583) 7,460 1, ,904 Page 11 of 13

12 14(b) Reconciliation of reportable segment revenue, profit or loss, assets, liabilities and other material items FY 2016 FY 2015 S$'000 S$'000 Revenue Total revenue for reportable segments 39,356 49,070 Elimination of inter-segment revenue (13,734) (14,219) Consolidated revenue 25,622 34,851 Profit/(loss) before income tax Total profit/(loss) for reportable segments 339 (6,859) Assets 339 (6,859) Total assets for reportable segments 68,324 67,281 Consolidated total assets 68,324 67,281 Liabilities Total liabilities for reportable segments - Allocated liabilities 5,925 9,904 - Unallocated liabilities - loans and borrowings and deferred tax liabilities 3,324 1,995 - Consolidated total liabilities 9,249 11,899 Other material items - Depreciation of property, plant and equipment (1,022) (1,105) Consolidated depreciation of property, plant and equipment (1,022) (1,105) - Capital expenditure (391) (1,583) Consolidated capital expenditure (391) (1,583) - Impairment loss on property, plant and equipment Consolidated impairment loss on property, plant and equipment Changes in fair value on investment properties 10 (9) Consolidated changes in fair value on investment properties 10 (9) - Reversal of obsolete inventories (189) (164) Consolidated reversal of obsolete inventories (189) (164) - Allowance for doubtful receivables 25 1,558 Consolidated allowance for doubtful receivables 25 1,558 14(c) Information about geographical areas Revenues from external customers are attributed to the group member entities' country of domicile. Assets are based on the geographical loaction of the assets. Singapore Malaysia Kazakhstan Total S$'000 S$'000 S$'000 S$'000 FY 2016 Revenue 18,586 7,036-25,622 Non-current assets 2,810 7, ,741 Capital expenditure Singapore Malaysia Kazakhstan Total S$'000 S$'000 S$'000 S$'000 FY 2015 Revenue 25,954 8,897-34,851 Non-current assets 3,238 8, ,817 Capital expenditure ,583 Page 12 of 13

13 15 In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments Refer to Note 8 16 A breakdown of sales FY 2016 FY 2015 Change S$'000 S$'000 % 16(a) Sales reported for first half year 12,116 17,801-32% 16(b) Operating loss after tax before deducting Non-controlling interests reported for first half year (1,124) (1,647) -32% 16(c) Sales reported for second half year 13,506 17,050-21% 16(d) Operating profit/(loss) after tax before deducting Non-controlling interests 1,434 (5,039) -128% reported for second half year 17 Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to the Rule 704(13) in the format below. If there are no such persons, the issuer must make an appropriate negative statement. Name Age Family relationship with any director and/or substantial shareholder Current position and duties, and the year the position was held Detail of changes in duties and position held, if any, during the year Chng Beng Leong 49 Brother of Mr Chng Beng Hua, Chief Executive Officer of the Company. Chief Administrative Officer appointed on 01 November 2013 to handle all administrative functions, planning, and implementation of policies for the No change 18 Use of proceeds The Board wishes to provide an update on the use of the net proceeds as follows: Net proceeds from Rights Issue Net proceeds from Private Placement of 160,000,000 shares of $0.05 each Less: Use of proceeds Construction costs (including cost of materials for construction and construction services) and equipment and machinery for the new cement plant and business Balance of net proceeds S$ ,323 7,970 (6,666) 19,627 There was no material disbursement of proceeds during the period. The Board will continue to make periodic announcements on the utilisation of the balance of the proceeds as and when the proceeds are materially disbursed. 19 Undertaking from directors and executive officers The Company confirm it has procured undertakings from all its directors and executive officers in the format set out in Appendix 7.7 under Rule 720 (1) BY ORDER OF THE BOARD Zhang Zengtao Managing Director 16 February 2017 Page 13 of 13