Co Reg No: 197401556E Half Year Financial Statement Announcement for the 6 months ended 30 June 2013 PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF HALF-YEAR RESULTS 1(a)(i) Consolidated Income Statement 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. 1H 2013 1H 2012 Increase/(Decrease) S$'000 S$'000 S$'000 % Revenue 6,547 5,783 764 13% Other income 43 23 20 87% Items of expenses Consumables used 576 456 120 26% Employee benefits expense 2,786 2,381 405 17% Depreciation of property, plant and equipment 692 678 14 2% Operating lease expenses 609 595 14 2% Maintenance of equipment 376 372 4 1% Laboratory and consultancy costs 1,016 749 267 36% Finance costs 22 18 4 22% Other operating expenses 857 621 236 38% Total operating expenses 6,934 5,869 1,065 18% Loss from operations (344) (64) (280) -438% Share of results of associates 148 81 67 83% (Loss) / Profit before income tax (196) 17 (213) NM Income tax - - - 0% (Loss) / Profit for the period (196) 17 (213) NM Attributable to: Owners of the Company (190) 66 (256) -388% Non-controlling interests (6) (49) 43 88% (196) 17 (213) NM Page 1 of 13
1(a)(ii) Statement of Comprehensive Income STATEMENT OF COMPREHENSIVE INCOME FOR HALF YEAR ENDED 30 JUNE 2013 1H 2013 1H 2012 Increase/(Decrease) S$ 000 S$ 000 S$ 000 % (Loss) / Profit for the period (196) 17 (213) NM Other comprehensive income: Foreign currency translation reserve 47-47 100% Other comprehensive income for the period, net of tax (149) 17 (166) NM 1(a)(iii) The following items have been included in determining the (loss)/profit before taxation 1H 2013 1H 2012 Increase/(Decrease) S$'000 S$'000 S$ 000 % Interest income 36 23 13 57% Foreign exchange loss (2) (17) (15) -88% Fair value loss on convertible loans (6) - (6) NM Impairment loss on doubtful trade receivables (4) - (4) NM Page 2 of 13
1(b)(i) Balance Sheets BALANCE SHEETS AS AT 30 JUNE 2013 Group Company 30 Jun 2013 31 Dec 2012 30 Jun 2013 31 Dec 2012 S$'000 S$'000 S$'000 S$'000 Non-Current Assets Property, plant and equipment 4,134 4,048 67 82 Investments in subsidiaries - - 2,411 911 Investments in associates 1,229 1,576 1,460 1,955 Convertible loan receivables 710 589 - - Goodwill 2,000 - - - Current Assets 8,073 6,213 3,938 2,948 Inventories 142 73 - - Trade receivables 1,003 988 2,337 1,897 Other receivables and deposits 675 435 471 240 Short-term loan receivables 280 - - - Prepayments 147 56 124 21 Cash and cash equivalents 8,241 9,179 6,751 7,734 Current Liabilities 10,488 10,731 9,683 9,892 Trade payables 602 318 129 37 Other payables and accruals 2,466 1,155 960 386 Deferred income 1 1 - - Obligations under finance lease 150 300 - - Loans and borrowings 118 161 - - 3,337 1,935 1,089 423 Net Current Assets 7,151 8,797 8,594 9,469 Non Current Liabilities Obligations under finance lease 950 950 - - Loans and borrowings 866 503 - - Deferred tax liabilities 151 151 - - 1,967 1,604 - - NET ASSETS 13,257 13,405 12,532 12,417 Equity attributable to owners of the Company Share capital 21,551 21,551 21,551 21,551 Treasury shares (3) (3) (3) (3) Foreign currency translation reserve 11 (36) - - Accumulated losses (7,986) (7,796) (9,016) (9,131) 13,573 13,716 12,532 12,417 Non-controlling interests (316) (311) - - Total equity 13,257 13,405 12,532 12,417 Page 3 of 13
1(b)(ii) Aggregate amount of group's borrowings 30 June 2013 31 Dec 2012 S$ 000 S$' 000 Amount repayable in one year or less, or on demand : Secured 150 300 Unsecured 118 161 Sub-Total 1 268 461 Amount repayable after one year : Secured 950 950 Unsecured 866 503 Sub-Total 2 1,816 1,453 Total borrowings 2,084 1,914 Details of any collateral The finance lease as at 30 June 2013 is secured by rights to the leased assets. The term loans are secured by a corporate guarantee of the Company. Page 4 of 13
1 (c) Consolidated Cash Flow Statement Consolidated Cash Flow Statement For the half year ended 30 June 2013 Cash flows from operating activities: The Group 1H 2013 1H 2012 $'000 $'000 (Loss)/Profit before taxation (196) 17 Adjustments : Depreciation of property, plant and equipment 692 678 Gain on disposal of property, plant and equipment 1 - Impairment loss on doubtful trade receivables 4 - Currency translation reserve 11 - Interest expense 20 15 Interest income (36) (23) Fair value loss on convertible loans 6 - Share of results of associates (148) (81) Operating profit before working capital changes 354 606 Changes in working capital: (Increase)/Decrease in inventories (69) 9 Increase in trade and other receivables and prepayments (349) (229) Increase in trade and other payables 80 277 Net cash generated from operating activities 16 663 Cash flows from investing activities: Interest received 36 23 Purchase of property, plant and equipment (750) (1,418) Proceeds from disposal of fixed assets 1 - Acquisition of subsidiary (860) - Convertible and short-term loan receivables (401) - Net cash flows used in investing activities (1,974) (1,395) Cash flows from financing activities: Interest paid (20) (15) Repayment of obligations under finance leases and loans and borrowings (230) (152) Proceeds from loans 400 2,295 Repayment of long-term loan from associate 495 - Purchase of treasury shares - (1) Advance from minority shareholder 375 - Net cash flows from financing activities 1,020 2,127 Net (decrease)/increase in cash and cash equivalents (938) 1,395 Cash and cash equivalents at the beginning of period 9,179 7,914 Cash and cash equivalents at the end of period 8,241 9,309 Page 5 of 13
1 (d)(i) Statements of changes in equity The Group S$'000 Share Capital Employee Share Option Reserve Foreign currency translation reserve Treasury Shares Accumulated Losses Total Minority Interests Total Equity Balance as at 1 Jan 2012 21,551 44 - (1) (7,919) 13,675 (265) 13,410 Total comprehensive income for the period - - - - 66 66 (49) 17 Purchase of treasury shares - - - (2) - (2) - (2) Balance as at 30 June 2012 21,551 44 - (3) (7,853) 13,739 (314) 13,425 Balance as at 1 Jan 2013 21,551 - (36) (3) (7,796) 13,716 (310) 13,406 Total comprehensive income for the period - - - - (190) (190) (6) (196) Foreign currency translation - - 47 - - 47-47 Balance as at 30 June 2013 21,551-11 (3) (7,986) 13,573 (316) 13,257 The Company S$'000 Share Capital Employee Share Option Reserve Foreign currency translation reserve Treasury Shares Accumulated Losses Total Minority Interests Total Equity Balance as at 1 Jan 2012 21,551 44 - (1) (9,302) 12,292-12,292 Total comprehensive income - - for the period - - 81 81-81 Purchase of treasury shares - - - (2) - (2) - (2) Balance as at 30 June 2012 21,551 44 - (3) (9,221) 12,371-12,371 Balance as at 1 Jan 2013 21,551 - - (3) (9,131) 12,417-12,417 Total comprehensive income for the period - - - - 115 115-115 Foreign currency translation - - - - - - - - Balance as at 30 June 2013 21,551 - - (3) (9,016) 12,532-12,532 Page 6 of 13
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 share 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 share, 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 corresponding period of the immediately preceding financial year. There was no change in the Company s share capital during the half year ended 30 June 2013. No share options were granted or exercised during the half year ended 30 June 2013. As at 30 June 2013, there were no outstanding share options (30/06/2012: 355,000). 1(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. 30 June 2013 31 December 2012 Total number of issued ordinary shares excluding treasury share 335,225,219 335,225,219 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. At 1 Jan Share buy back Sale Transfer Disposal Cancellation At 30 Jun 2013 during the year nor Use 2013 100,000 - - - - - 100,000 2. Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice. The figures have not been audited nor 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. Page 7 of 13
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 same accounting policies and methods of computation as in the Group s most recently audited annual financial statements have been applied, except for the changes mentioned in section 5. 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 The Group and the Company have adopted all the applicable new and revised Financial Reporting Standards (FRS) that become effective for accounting periods beginning 1 January 2013. The adoption of these new and revised FRS does not have any material impact to the Group s financial statements. 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 30 June 2013 30 June 2012 (a) Based on weighted average number of ordinary shares on issue (0.06) cents 0.02 cents (b) On a fully diluted basis (0.06) cents 0.02 cents Footnotes: (a) The basic earnings per share for the half year ended 30 June 2013 is computed based on weighted average share capital of 335,225,219 (30 June 2012 : 335,271,657) ordinary shares. (b) There are no dilutive potential ordinary shares for the current period. 7. Net asset value (for the issuer and group) per ordinary share based on issued share capital excluding treasury shares of the issuer at the end of the (a) current financial period reported on; and (b) immediately preceding financial year The Group 30 June 2013 31 Dec 2012 Net asset backing per ordinary share based on existing issued share capital 3.95 cents 4.00 cents The Company Net asset backing per ordinary share based on existing issued share capital 3.74 cents 3.70 cents Footnotes: (a) The total number of shares used for the computation of net asset value per share is 335,225,219 (31 Dec 2012: 335,225,219) ordinary shares. Page 8 of 13
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 effected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. GROUP OVERVIEW 1H 2013 1H 2012 % $'000 $'000 change Revenue 6,547 5,783 13% Earnings Before Interest, Tax, Depreciation & Amortisation ("EBITDA") 498 713-30% (Loss)/Profit attributable to owners of the company (190) 66-388% The Group s revenue increased by 13% to S$6.5 million for the half year ended 30 June 2013 ( 1H2013 ) compared with S$5.8 million in the previous corresponding period ( 1H2012 ) mainly due to higher revenue from the local diagnostic imaging and wellness businesses and maiden contribution from Complete Healthcare International Pte Ltd ( CHI ) which was acquired in May 2013. The core businesses of diagnostic imaging and wellness health screening have grown over the past year. Revenue from diagnostic imaging business grew from S$4.03 million in 1H2012 to S$4.62 million in 1H2013. Correspondingly, revenue from wellness health screening business increased to S$1.47 million from S$1.36 million in 1H2012. Staff costs increased due mainly to the increase in headcount, higher wages and the consolidation of CHI. Consumables expenses and laboratory and consultancy costs increased in line with the increase in revenue. The increase in other operating expenses was due mainly to higher local marketing expenses, business development expenses for the markets in China and Myanmar and costs incurred for the Group s acquisitions of CHI and Astique The Aesthetic Clinic ("Astique"). The contribution from the Group s associate companies increased due principally to improved performance of Positron Tracers Pte Ltd. During this period, Positron recorded higher profitability as sales improved. Page 9 of 13
As a result the above mentioned expenses, the Group registered a loss attributable to shareholders of S$190,000 for 1H2013 compared with a profit of S$66,000 in 1H2012. The Group s balance sheet remained healthy. Net current assets decreased to S$7.2 million from S$8.8 million as at the end of FY2012. The increase in other receivables and deposits was due to rental deposit for the new lease at 10th floor of Shaw House. Goodwill amounting to S$2 million arose from the acquisition of CHI. Other payables and accruals increased due mainly to the provision of the balance of the purchase consideration and the pre-acquisition profits payable to the vendor of CHI. The Group also obtained a term loan for the renovation of its new premises at 10th floor of Shaw House in June 2013. The Group s net cash generated from operating activities decreased to S$16,000 in 1H2013 from S$663,000 a year ago due to lower profitability. The increase in net cash flows used in investing activities to S$1.97 million was in line with the Group s expansion. Net cash from financing activities decreased to S$1 million in 1H2013 from S$2.1 million mainly due to lower loan borrowings as compared to 1H2012. Consequently, cash and cash equivalents decreased to S$8.2 million as compared with $9.2 million as at the end of FY2012. 9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. There was no forecast or prospect statement disclosed previously. Page 10 of 13
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 Group's local footprint has expanded over the past 18 months, from a single flagship centre at Orchard Road, Singapore, to an expanded healthcare portfolio comprising general practice and medical aesthetic treatments through the acquisitions of CHI and Astique. In July 2013, the Group has taken a 15-year tenancy for additional space on the 10th floor of Shaw House for capacity expansion, which will also house sub-tenants that will refer patients to the Group for imaging services. Among its new sub-tenants is Nichii International Clinic, a subsidiary of Tokyo-listed Nichii Gakkan. AsiaMedic will also be establishing the third local private cord blood bank via a joint venture with Cryoviva International Pte Ltd. As for its regional expansion, the Group provides management services to 2 centres in Shanghai and has an agreement to provide teleradiology service to 2 private hospitals in Mandalay. As a result of new business developments, the Group now has a more diverse portfolio of healthcare business. 11. If a decision regarding dividend has been made: a) Whether an interim (final) ordinary dividend has been declared (recommended); and Nil b) N/A (1) Amount per share: Nil cents (2) Previous corresponding period: Nil cents 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). N/A d) The date the dividend is payable : NA e) The date on which Registrable Transfers received by the company (up to 5.00 pm) will be registered before entitlements to the dividend are determined. N/A Page 11 of 13
12. If no dividend has been declared/recommended, a statement to that effect No dividend has been declared. 13. If the group has obtained 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 mandate. 14. Negative confirmation pursuant to Rule 705(5). We, Tan Wang Cheow and Goh Kian Chee, being two Directors of AsiaMedic Limited (the Company ), do hereby confirm on behalf of the Directors of the Company that, to the best of their knowledge, nothing has come to the attention of the Board of Directors of the Company which may render the financial results for the financial period ended 30 June 2013 to be false or misleading in any material aspect. On behalf of the Board of Directors Tan Wang Cheow Director Goh Kian Chee Director BY ORDER OF THE BOARD Foo Soon Soo (Ms) 06 August 2013 Page 12 of 13
This announcement has been prepared by the Company and reviewed by the Company s sponsor, Asiasons WFG Capital Pte Ltd (the Sponsor ), for compliance with the Listing Manual (Section B: Rules of Catalist) of the Singapore Exchange Securities Trading Limited (the SGX-ST ). The Sponsor has not independently verified the contents of this announcement including the accuracy or completeness of any of the information disclosed or the correctness of any of the statements made, opinions expressed or reports contained in this announcement. This announcement has not been examined or approved by the SGX-ST. The SGX-ST and the Sponsor assume no responsibility for the contents of this announcement including the correctness of any of the statements made, opinions expressed or reports contained in this announcement. Contact person for the Sponsor: Ms Pauline Sim (Registered Professional, Asiasons WFG Capital Pte Ltd) Address: Cross Street, #03-54/61 China Square Central, Singapore 048421 Telephone number: (65) 6319 4954 Page 13 of 13