Financials

Half Year Results Financial Statement And Related Announcement


Financials Archive

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Income Statement

Balance Sheet

Review of Performance

Income Statement

In the six months financial period ended 30 September 2017 ("HY2018"), the Group registered a turnover of US$29.1 million. This represents an increase of 4,546% or US$28.5 million as compared to US$0.6 million for the comparative six months financial period ended 30 September 2016 ("HY2017"). The increase is mainly due to the increase in shareholdings in Jubilee Industries Holdings Ltd ("Jubilee") where the latter is being accounted for as a subsidiary corporation of the Company rather than, an associated company as at 31 March 2017, commencing on 29 June 2017. This accounting treatment is a result of converting the convertible loan to shares in Jubilee. Gross profits for HY2018 increased by US$2.3 million compared to HY2017 of US$0.1million. This again is primarily due to the increase in shareholdings in Jubilee being a subsidiary corporation of the Company.

Other income was US$0.6 million for HY2018 as compared to US$0.2 million in HY2017. The increase of US$0.4 million in HY2018 was largely due to gain on currency translation.

Operating expenses rose from US$1.1 million in HY2017 to US$5.2 million in HY2018. Marketing and distribution expenses increased by 408% from US$0.04 million in HY2017 to US$0.2 million in HY2018. Administration expenses increased by 93% from US$0.9 million in HY2017 to US$1.8 million in HY2018. This is due to staff cost incurred with Jubilee being a subsidiary corporation of the Company. Finance costs increased from US$0.003 million in HY2017 to US$0.2 million in HY2018. Other charges escalated from US$0.1 million in HY2017 to US$3.0 million in HY2018 mainly due to remeasurement loss arising from consolidation of Jubilee and the fair value loss for the convertible loan amounting to US$2.7 million and US$0.3 million. Excluding these one-off expenses of US$3.0 million, the Group's net profit before tax stands at US$1 million.

Balance Sheet

Non-current assets increased by 8% from US$14.6 million as at 31 March 2017 to US$15.9 million as at 30 September 2017. As mentioned above, the increase is mainly due to the increase in shareholdings in Jubilee resulting in Jubilee being a subsidiary corporation rather than an associated company as at 31 March 2017.

Current assets as at 30 September 2017 comprise of inventories, trade and other receivables, other assets and cash and cash equivalents. Total current assets amounted to US$38.0 million as at 30 September 2017 as compared to US$21.7 million as at 31 March 2017. The increase of US$16.4 million is attributable to the increase in cash and cash equivalents of US$2.8 million, increase in trade, other receivables of US$13.6million and increase in inventories of US$9.5 million. This increase is due to accounting Jubilee as a subsidiary corporation rather than, an associated company.

Current liabilities as at 30 September 2017 comprise of income tax payable, trade and other payables and other financial liabilities. Total current liabilities amounted to US$17.9 million as at 30 September 2017 as compared to US$3.4 million as at 31 March 2017. The increase of US$14.4 million is mainly due to an increase in trade and other payables and other financial liabilites of US$13.0 million and US$1.4 million respectively from accounting Jubilee as a subsidiary corporation rather than, an associated company.

Non-current liabilities comprise deferred tax liabilities, convertible loan and other financial liabilities. Total non-current liabilities remains unchanged at US$3.8 million for HY2017 and HY2018.

The Group had working capital of US$11.9 million as at 30 September 2017 as compared to US$18.3 million as at 31 March 2017. The decrease is due to the trade and other payables increasing at a greater rate than trade and other receivables being in line with the increase in cash and cash equivalents.

Cash Flow Statement

Net cash flow generated from operating activities for HY2018 was US$0.9 million, comprising operating loss before working capital changes of US$0.1 million and working capital inflow of US$1.0 million. The working capital inflow was mainly due to the decrease in trade and other receivables of US$19.3 million offset by the decrease in trade and other payables of US$17.6 million and increase in inventories of US$0.7 million . Net cash provided by investing activities for HY2018 of US$3.8 was mainly due to the acquisition of Jubilee being a subsidiary corporation of the company and disposal of property, plant and equipment of S$3.6 million and S$0.2 million respectively. Cash used in financing activities was due to repayment of borrowings and short term bank deposits. The Group recorded a net increase in cash and cash equivalents of US$1.4 million during HY2018.

Commentary

The Group noted that the operating environment would be challenging going forward. The Group will work and devote its resources to seek new opportunities in new business segments. The Group will remain vigilant on cost, credit and cash management in response to the volatile operating environment as it carries out its expansion strategies.

The Company announced on 11 October 2017 that it would raise S$4.0 million in gross proceeds via proposed new share placements in two equal tranches of S$2.0 million each to investors, Mr. Liu Song and Summit Planners Advisory Group Pte. Ltd. 75% of the net proceeds of S$3.94 million from the proposed share plcaements would be used to support mergers and acquisitions activities in the e-medical arena, for WE Crowdfunding Pte Ltd,whereas 25% of the residual would be utilised for working capital purposes for WE Pay Pte Ltd.