Half Year Financial Statements Announcement for the financial period ended 31 January 2012

Transcription

1 SUNRIGHT LIMITED Half Year Financial Statements Announcement for the financial period ended 31 January 2012 PART 1 INFORMATION REQUIRED FOR QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR ANNOUNCEMENTS 1(a)(i) A statement of comprehensive income (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year Group S$'000 % 31 Jan Jan 2011 Change Turnover (i) 49,062 66,229 (26%) Revenue 26,010 37,475 (31%) Other items of income: Interest income % Dividend income % Fair value gain on held for trading investment securities 3 5 (40%) Miscellaneous income 1,357 1,244 9% 27,438 38,764 (29%) Other items of expenses: Raw materials and consumables used (13,657) (21,249) (36%) Changes in inventories of finished goods and work-in-progress (836) (2,668) (69%) Employee benefits expense (8,064) (9,152) (12%) Depreciation of property, plant and equipment (1,186) (1,017) 17% Operating lease rentals (822) (700) 17% Finance costs (119) (113) 5% Other operating expenses (2,673) (3,116) (14%) Share of results of associates (iii) 1,403 2,680 (48%) Profit before taxation 1,484 3,429 (57%) Income tax expense (119) (172) (31%) Profit for the period 1,365 3,257 (58%) Other comprehensive income: Foreign currency translation 741 (754) NM Other comprehensive income for the period, net of tax 741 (754) NM Total comprehensive income for the period 2,106 2,503 (16%) Profit attributable to: Owners of the Company 1,365 3,257 (58%) Total comprehensive income attributable to: Owners of the Company 2,106 2,503 (16%) Earnings per share (cents) - Basic (59%) - Diluted (iv) (100%) Notes: i. Group turnover includes share of revenue from associates, which amounted to approximately S$23,052,000 (2011: S$28,754,000). ii. NM - Percentage change not meaningful. iii. Share of results of associates is presented net of tax expense (tax expense was S$458,000, compared with S$1,045,000 for 2011). iv. As at the reporting date, there was no potential ordinary share as the Company s Employees Share Option Scheme had expired on 22 May

2 1(a)(ii) The following items (with appropriate breakdown and explanations), is significant, must either be included in the income statement or in the notes to the income statement for the current financial period reported on the corresponding period of the immediate preceding financial year: The following items have been included in arriving at profit before taxation: Group S$'000 % 31 Jan Jan 2011 Change (Write-down)/reversal of write-down of inventories (487) 32 NM Reversal of impairment loss on trade receivables (73%) Exchange gain/(loss), net 242 (705) NM Gain on disposal of property, plant and equipment (94%) (Under)/overprovision of tax in respect of prior years (23) 357 NM - 2 -

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 31 January July 2011 S$'000 S$'000 Group Company Group Company ASSETS Non-current assets Property, plant and equipment 8,336 1,016 8,428 1,005 Investment in subsidiaries - 14,393-14,393 Investment in associates 54,163 5,885 52,471 5,885 Deferred tax assets Loans to subsidiaries Loans to associates Total non-current assets 63,777 21,949 62,174 21,933 Current assets Investment securities Inventories 6,447-8,183 - Prepayments Trade and other receivables 13,094 9,969 11,957 12,213 Fixed deposits 3,807 1,502 3,304 - Cash and bank balances 10,420 3,370 11,928 3,607 Total current assets 34,510 15,231 35,902 16,187 Total assets 98,287 37,180 98,076 38,120 EQUITY AND LIABILITIES Equity Share capital 35,727 35,727 35,727 35,727 Retained earnings/(accumulated losses) 35,179 (14,428) 34,060 (17,239) Other s 6, , Total equity attributable to owners of the Company 77,461 21,454 75,601 18,643 Non-current liabilities Loans and borrowings 1,767 1,510 2,327 1,934 Loans from subsidiaries - 6,790-9,514 Long term payables Provisions Deferred income 1,236-1,468 - Deferred tax liabilities 4,191 2,154 4,180 2,141 Total non-current liabilities 7,347 10,454 8,121 13,589 Current liabilities Trade and other payables 8,113 1,337 9,971 2,127 Loans and borrowings 4,712 3,189 3,673 3,038 Provisions Provision for taxation Total current liabilities 13,479 5,272 14,354 5,888 Total equity and liabilities 98,287 37,180 98,076 38,

4 1(b)(ii) Aggregate amount of group s borrowings and debt securities Amount repayable in one year or less, or on demand As at As at Secured Unsecured Secured Unsecured S$1,329,000 S$3,383,000 S$1,002,000 S$2,671,000 Amount repayable after one year As at As at Secured Unsecured Secured Unsecured S$1,586,000 S$181,000 S$2,020,000 S$307,000 Details of any collaterals The Group s loans and borrowings include obligations under finance leases, term loans and bank overdrafts. Obligations under finance leases and term loans are secured on certain assets of the companies within the Group of net book value amounting to S$2,522,000 ( : S$3,970,000)

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 As at As at S$'000 S$'000 Cash flows from operating activities: Profit before taxation 1,484 3,429 Adjustments: Depreciation of property, plant and equipment 1,186 1,017 Interest income (62) (35) Gain on disposal of property, plant and equipment (13) (208) Write-down/(reversal of write-down) of inventories 487 (32) Reversal of impairment loss on trade receivables (11) (41) Net (decrease)/increase in deferred income (232) 309 Dividend income (6) (5) Net fair value gain on held for trading investment securities (3) (5) Finance costs Share of results of associates (1,403) (2,680) Currency realignment Operating cash flows before changes in working capital 1,668 1,964 (Increase)/decrease in debtors (1,315) 6,315 Decrease in inventories 1,249 4,092 Decrease in creditors (1,815) (11,408) (Increase)/decrease in current account with associates (57) 3,061 Cash flows (used in)/from operations (270) 4,024 Income taxes paid (160) (380) Net cash (used in)/from operating activities (430) 3,644 Cash flows from investing activities : Interest received Dividend received from associates Dividend received from investment securities 6 5 Purchase of property, plant and equipment (906) (1,690) Proceeds from disposal of property, plant and equipment Proceeds from disposal of investment securities - 5 Net cash used in investing activities (568) (1,173) Cash flows from financing activities : Interest paid (119) (113) Proceeds from term loans 600 1,722 Repayment of term loans (469) (1,319) Proceeds from obligations under finance leases Repayment of obligations under finance leases (202) (133) Dividend paid (246) (246) Net cash used in financing activities (273) (89) Net (decrease)/increase in cash and cash equivalents (1,271) 2,382 Cash and cash equivalents at beginning of period 15,232 12,951 Cash and cash equivalents at end of period 13,961 15,333 Notes: Included in cash and cash equivalents was an amount of S$266,000 (2011: S$3,000) bank overdrafts. During the financial period ended 31 January 2012, the Group used S$430,000, S$568,000 and S$273,000 in its operating activities, investing activities and financing activities respectively, resulting in a net decrease of S$1,271,000 in the Group s cash and cash equivalents as compared to 31 July

6 1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year Statement of changes in equity for financial period ended 31 January 2012 Total equity attributable to owners of the Company Share capital Retained earnings/ (accumulated losses) Asset revaluation Foreign currency translation Capital S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 The Group As at 1 August ,601 35,727 34,060 1,696 (7,144) 11,262 Total comprehensive income for 2,106-1, the period Dividend paid (246) - (246) As at 31 January ,461 35,727 35,179 1,696 (6,403) 11,262 The Company As at 1 August ,643 35,727 (17,239) Total comprehensive income for 3,057-3, the period Dividend paid (246) - (246) As at 31 January ,454 35,727 (14,428) Statement of changes in equity for financial period ended 31 January 2011 Total equity attributable to owners of the Company Share capital Retained earnings/ (accumulated losses) Asset revaluation Foreign currency translation Capital S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 The Group As at 1 August ,008 35,727 29,643 1,696 (4,320) 11,262 Total comprehensive income for 2,503-3,257 - (754) - the period Dividend paid (246) - (246) As at 31 January ,265 35,727 32,654 1,696 (5,074) 11,262 The Company As at 1 August ,325 35,727 (20,557) Total comprehensive income for the period Dividend paid (246) - (246) As at 31 January ,602 35,727 (20,280)

7 1(d)(ii) Details of any changes in the company s share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the company, 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 share capital during the financial period. 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 auditors. 3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter) Not applicable. 4. Whether the same accounting policies and methods of computation as in the company s most recently audited annual financial statements have been applied The Group had applied the same accounting policies and methods of computation in the financial statements for the current reporting period compared with those of the audited financial statements as at 31 July 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 31 January January 2011 Earnings per ordinary share (i) Based on weighted average number of 1.1 cents 2.7 cents ordinary shares on issue * (ii) On a fully diluted basis ** cents * The basic earnings per share was based on the profit for the period attributable to owners of the Company S$1,365,000 (2011: S$3,257,000) and the weighted average number of 122,806,000 (2011: 122,806,000) ordinary shares outstanding during the financial period. ** As at the reporting date, there was no potential ordinary share as the Company s Employees Share Option Scheme had expired on 22 May

8 7. Net asset value (for the issuer and group) per ordinary share based on the total number of issued share capital excluding treasury shares of the company at the end of the:- (a) current financial period reported on; and (b) immediately preceding financial year Group Company 31 January July January July 2011 Net asset value per ordinary share 63.1 cents 61.6 cents 17.5 cents 15.2 cents 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, 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 Turnover for the half-year ended 31 January 2012 decreased by S$17.2 million or 26%, in the corresponding period of 2011, from S$66.2 million to S$49.1 million. Revenue was lower by S$11.5 million or 31%, from S$37.5 million to S$26.0 million. These decreases were attributed to weaker demand, across all business segments. Raw materials and consumables used, as well as changes in inventories of finished goods and work-inprogress, decreased by S$9.4 million or 39%, from S$23.9 million to S$14.5 million, due to lower sales. Employee benefits expense was lower by S$1.1 million or 12%, as a result of lower average headcount. Depreciation expenses increased by S$0.2 million or 17%, following increased capital expenditure to support burn-in activities. Operating lease rentals increased by $0.1 million or 17%, mainly due to higher rental rates. Other operating expenses decreased by S$0.4 million or 14%, primarily due to (i) a net exchange gain of S$0.2 million (from a net exchange loss of S$0.7 million in the corresponding period of 2011), arising from appreciation of US Dollars against Singapore Dollars, from US denominated receivables; offset by (ii) a write-down of inventories of S$0.5 million (from a write-back of S$0.03 million in the corresponding period of 2011). Share of results of associates decreased by S$1.3 million or 48%, from S$2.7 million to S$1.4 million, as a result of weaker performance. Consequently, the Group s profit before tax decreased by S$1.9 million or 57%, from S$3.4 million in the corresponding period of 2011 to $1.5 million in the current reporting period. The Group s net worth grew by S$1.9 million, from S$75.6 million as at 31 July 2011, to S$77.5 million as at 31 January This was largely attributed to: (i) (ii) investment in associates being higher by S$1.7 million, from S$52.5 million to S$54.2 million, primarily due to its profitable performance; lower net working capital of S$0.5 million employed; and (iii) a decrease in non-current liabilities of S$0.8 million, following repayments of loans and borrowings

9 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results No significant variance. 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 The global semiconductor industry has been projected to grow modestly at 4%, from US$302 billion to US$316 billion in 2012, which will result in better capacity utilization and fresh inventory demands, led by media tablets, PCs and mobile phones. This is provided that the macro economic outlook remains stable. Notwithstanding the improving market sentiments, the Group remains focused on improving customers services, managing costs and achieving higher productivity. 11. Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? No (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? No (c) Date payable Not applicable (d) Books closure date Not applicable 12. If no dividend has been declared/recommended, a statement to that effect The directors do not recommend any interim dividend to be paid. 13. If the group has obtained a general mandate from shareholders for IPTs, 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 No IPT mandate had been obtained

10 14. Negative confirmation pursuant to Rule 705(5) of the Listing Manual The Board confirmed to the best of their knowledge that nothing has come to its attention which may render the unaudited interim financial results for the half-year ended 31 st January 2012 to be false or misleading in any material respect. On behalf of the Board, Samuel Lim Syn Soo Executive Chairman & CEO Kenneth Tan Teoh Khoon Executive Director BY ORDER OF THE BOARD Adeline Lim Kim Swan Company Secretary Date: 14 March