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Unaudited Financial Statements and Related Announcement for the Financial Year ended 30 June 2021

Financials Archive

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Consolidated Statement of Comprehensive Income

Profit & Loss

 

Balance Sheet

Balance Sheet

Review of Performance

STATEMENT OF COMPREHENSIVE INCOME

Revenue

The Group posted revenue of approximately S$16.13 million in FY2021 as compared to S$15.25 million in FY2020. The increase in the reported revenue for FY2021 was attributed to the Group’s property investment segment due to increased leasing activities while rental rebates given to eligible tenants as mandated by the COVID-19 (Temporary Measures) (Amendment) Act (“Act”) in FY2020 also contributed to the lower revenue in FY2020.

Gross Profit ("GP") /Gross profit margin (“GPM”)

The Group recorded a higher gross profit of approximately S$15.04 million in FY2021 as compared to approximately S$13.89 million in FY2020. The higher gross profit in FY2021 was largely attributed to the increase in revenue and cost of sales decreasing by approximately S$0.27 million in FY2021 due to lesser repair and maintenance performed in FY2021 as compared to FY2020, savings in utilities expenses also contributed to the decrease in cost of sales for FY2021. As a result, the Group’s GPM was higher at 93.2% in FY2021 as compared to 91.1% in FY2020.

Other income

Other income for FY2021 was lower at approximately S$1.34 million as compared to S$4.81 million in FY2020. Amongst others, the decrease was largely attributed to the absence of one-off income derived from the gain on disposal of investment properties of approximately S$1.10 million, grant income of approximately S$1.62 million, gain from surrendering of an insurance policy and the dividend income from the Group’s investment in a financial asset at fair value through profit or loss in FY2021. Other income in FY2021 mainly derive from S$0.93 million of grant income.

Other expenses

Other expenses for FY2021 decreased to approximately S$5.71 million as compared to S$25.10 million in FY2020. The decrease was mainly attributed to the lower diminution of value of properties for sale and fair value loss on the Group’s investment properties as the industrial property market segment is gradually recovering from the economic impact of COVID-19 pandemic.

Loss allowance on trade and other receivables

Impairment loss on trade and other receivables decreased to approximately S$0.18 million in FY2021 from S$1.20 million in FY2020 mainly due to less impairment loss on amount due from a joint venture made in FY2021 as less cost was incurred on behalf of the joint venture.

General and administrative expenses

General and administrative expenses decreased by 28.2% from approximately S$6.78 million in FY2020 to S$4.87 million in FY2021. The decrease was largely due to lesser grant expenses for rental rebates provided to tenants in FY2021, lower bad debt expenses and lower staff and related costs.

Finance costs

Finance costs decreased by 34.0% from approximately S$5.87 million in FY2020 to S$3.87 million in FY2021. The decrease was due to the lower outstanding bank loans and shareholder loans in FY2021 due to repayments made in FY2020.

Share of profits (losses) of associates

Share of profits of associate increased to S$1.88 million in FY2021 from a share of losses of S$1.43 million in FY2020 mainly due to lesser fair value change in valuations of the associates’ investment properties as the industrial property market segment gradually recovers from the COVID-19 pandemic.

Income tax expense

For FY2021, income tax expense amounts to S$nil as compared to S$0.69 million in FY2020.

Profit for the year

As a result of the foregoing, the Group registered a total profit of approximately S$3.63 million in FY2021 as compared to a loss of S$22.36 million in FY2020.

STATEMENT OF FINANCIAL POSITION

As at June 30, 2021, total current assets stood at approximately S$16.75 million as compared to S$22.90 million as at June 30, 2020. The decrease in total current assets was largely attributed the reclassification of units in properties for sale to investment properties due to them being leased out, and the diminution of value of properties for sale, the decrease was partially offset by higher cash and bank balances.

Total non-current assets stood at approximately S$196.65 million as at June 30, 2021 as compared to approximately S$191.29 million as at June 30, 2020. The increase was a result of the transfer of units in properties for sale to investment properties and increase in investment in associates due to equity accounting for the share of profits of associates. The increase was partially offset by fair value loss on the Group’s investment properties and sale of 1 unit of investment property.

As at June 30, 2021, total current liabilities increased to approximately S$90.17 million as compared to approximately S$53.27 million as at June 30, 2020. This was largely attributed to reclassification of a bank loans from non-current liabilities to current labilities as the maturity date of the bank loans is within 1 year of June 30, 2021. The increase was partially offset by the lower lease liabilities balance due to repayment during the year.

Total non-current liabilities decreased to approximately S$51.57 million as at June 30, 2021 as compared to approximately S$93.63 million as at June 30, 2020. The decrease was largely due to reclassification of a bank loans from non-current liabilities to current labilities and lower lease liabilities balance.

CONSOLIDATED STATEMENT OF CASH FLOWS

Net cash from operating activities

For the financial year ended June 30, 2021, the Group generated a net cash from operating activities of approximately S$9.01 million as compared to a net cash of approximately S$5.34 million in for the corresponding period in the preceding financial year. The net cash inflow was primarily due to the collection from rental of investment properties and lower interest paid.

Net cash from investing activities

The Group recorded a net cash of approximately S$0.95 million for the 12 months period ended June 30, 2021 from investing activities as compared to net cash from investing activities of approximately S$30.82 million in the corresponding period in the preceding year. The net cash inflow in FY2021 is largely due to proceeds from the disposal of investment property in the current year whereas the higher net cash from investing activities in the prior year is due to disposal of more investment properties and property, plant and equipment and dividends received from the Group’s investment in associates and a financial asset at fair value through profit or loss.

Net cash used in financing activities

The Group recorded net cash used in financing activities of approximately S$6.52 million in the 12 months period ended June 30, 2021 as compared to a net cash outflow of S$30.98 million in the corresponding period last year. The net cash outflow was largely due to a repayment of bank loans and lease liabilities.

As a result of the above, the Group recorded a net increase in cash and cash equivalents of approximately S$3.44 million for the 12 months period ended June 30, 2021.

Cash and cash equivalents as at June 30, 2021 stood at S$10.62 million.

Commentary

The current state of the industrial real estate market in Singapore continues to remain challenging amidst the COVID-19 pandemic. This has impacted global economies and many businesses. There is no certainty on when the global economy will recover to pre-COVID-19 levels and when each country will fully resume normal business operations and/or normal daily social activities.

In accordance to guidelines issued by the relevant authorities, the Group has established precautionary measures to protect the health and safety of our employees and the Group will implement additional shortterm precautionary measures, as and when required.

The Group owns a portfolio of development and investment properties. As part of its continuous review, the Group is assessing the relevance of the properties against its overall strategies. The Group may monetise some of these assets through sales so as to further strengthen the financial strength of the Group as it explores new business opportunities.