Financials

Half Year Results Financial Statement And Related Announcement

Financials Archive

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Income Statement

Balance Sheet

Review of Performance

  1. 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

    The Group's revenue rose by 3.2% or S$3.5 million from S$111.3 million in previous corresponding period ("1H2014") to S$114.8 million in current reporting period ("1H2015").

    Total revenue of China operations had recorded an increased of 2.8% or S$2.6 million in the Group's reporting currency mainly due to the strengthening of Renminbi ("RMB") against Singapore Dollar ("SGD") by 7.1% as compared to 1H2014.

    Total revenue of Singapore entities increased by 5% or S$0.9 million mainly due to the improvement of Singapore operations.

    The Group's gross profit rose by 8.2% or S$1.8 million from S$22.4 million in 1H2014 to S$24.2 million in 1H2015. This is mainly attributed to increase of sales and reduction of factory overhead costs of Singapore operations.

    Other income increased by S$0.5 million in 1H2015 as compared to 1H2014. The increase was mainly derived from the gains on disposal of available-for-sale financial assets.

    The distribution and selling expenses increased by S$0.2 million or 3.6% was in line with increase in Group's revenue.

    General and administrative expenses increased marginally by S$0.1 million or 1.9% in 1H2015 as compared to 1H2014 was mainly attributed to higher staff cost.

    Other expenses increased by $0.1 million in 1H2015 as compared to 1H2014 was mainly due to higher allowance made for doubtful trade receivables.

    Finance costs decreased by S$0.3 million or 25.7% in 1H2015 as compared to 1H2014 due to lower utilisation of credit facilities during the period.

    Income tax expense rose by S$0.5 million or 26.2% in 1H2015 as compared to 1H2014 which mainly due to additional provision of current year's deferred tax.

    As a result, the net profit attributable to owners of the Company had increased by S$1.5 million or 32.2% in 1H2015 as compared to 1H2014.

  2. any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

    The Group has realised a gain of S$648k as a result of disposal of investment securities in April 2015.

    Inventory of the Group increased by $2.1 million as compared to 31 December 2014 was mainly due to anticipation of higher production.

    The net increase in trade and bills receivables of S$0.1 million as compared to 31 December 2014 were mainly due to strengthening of RMB against SGD amounted to S$1.7 million and partially offset by the reduction in trade and bills receivables of S$1.6 million.

    Other receivables and deposits increased by S$1.5 million was mainly due to advance payments made to suppliers and the deposit placed for the upgrade of machinery.

    Cash and bank balances, excluding bank balances pledged as security, increased by $4.4 million and was mainly generated from operating activities.

    Trade and other payables increased by S$3.3 million as compared to 31 December 2014 was mainly due to higher volume of materials purchased for current quarter amounted to S$2.4 million and strengthening of RMB against SGD amounted to S$0.9 million.

    The increase of S$7.0 million in the Group's bill payables and the decrease in Group's loans and borrowings by $5.8 million was primarily due to the Group's strategy to utilise more trade finance facilities rather than through loans borrowings.

    Other liabilities decreased by S$1.0 million was mainly due to the provision for staff cost made in 1H2015 were for 6 months as compared to 12 months for FY2014.

Commentary On Current Year Prospects

Singapore's operating environment is expected to remain challenging on the back of weakened demand on manufacturing sector, as well as the increase of raw material costs due to higher US dollars exchange rate.

China's operating environment also start to slowdown with some of our China subsidiaries experiencing lower order from the customers.

In view of the above, the Group is focusing on improving productivity in order to keep the operating costs under control and upgrading of machinery in order to achieve better production efficiency for growth position in the future.

Barring any unforeseen circumstances, the Group remains cautiously optimistic of its performance in 2015.