Creative Technology Ltd.SGX: C76

Creative Technology Announces First Half Year Of FY2025 Financial Results

Feb 7, 2025 at 12:22 PM UTC · Issued by Creative Technology Ltd.

CREATIVE TECHNOLOGY LTD

FIRST HALF YEAR ENDED 31 DECEMBER 2024

FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT

TABLE OF CONTENTS
Description	Page
CONDENSED INTERIM CONSOLIDATED INCOME STATEMENT	2
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	3
CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION	4
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS	5
CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY	6
SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS	8
OTHER INFORMATION	13

UNAUDITED RESULTS FOR THE FIRST HALF YEAR ENDED 31 DECEMBER 2024

CONDENSED INTERIM CONSOLIDATED INCOME STATEMENT

			GROUP
	Half year ended
		31 December
	2024	2023		% change
	US$'000		US$'000		+ / (-)
Sales, net	37,384	31,793		18
Cost of goods sold	(27,159)	(22,177)		22

Gross profit	10,225	9,616		6
Expenses:
Selling, general and administrative	(11,585)	(10,793)		7
Research and development	(4,985)	(4,755)		5

Total expenses	(16,570)		(15,548)		7
Interest income	221	703		(69)
Other income	7	268		(97)
Other gains, net	96	1,014		(91)
Interest expense on lease liabilities	(59)	(98)		(40)

Loss before income tax	(6,080)	(4,045)		50
Income tax expense	(21)	(13)		62

Net loss	(6,101)	(4,058)		50
Attributable to:

Equity holders of the Company	(6,069)	(4,072)		49
Non-controlling interests	(32)	14		n.m.
Loss per share attributable to
equity holders of the Company
- Basic (US$ per share)	(0.09)	(0.06)		50
- Diluted (US$ per share)	(0.09)	(0.06)		50

n.m. - not meaningful

CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

			GROUP
	Half year ended
		31 December
	2024	2023		% change
	US$'000 US$'000	+ / (-)
Net loss	(6,101)		(4,058)		50
Other comprehensive income (loss):
Items that will not be reclassified subsequently to profit or loss:
Financial assets at fair value through other comprehensive income
("Financial assets at FVOCI"):
Fair value loss	139	198		(30)

Total comprehensive loss for the period	(5,962)	(3,860)		54
Attributable to:

Shareholders of the Company	(5,930)	(3,874)		53
Non-controlling interests	(32)	14		n.m.

Total comprehensive loss for the period	(5,962)	(3,860)		54

CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION

	Group			Company
	31 December	30 June		31 December		30 June
	2024		2024	2024	2024
	US$'000	US$'000		US$'000		US$'000
ASSETS
Current assets:
Cash and cash equivalents	32,924		42,122	24,914	34,802
Trade receivables	5,733		3,748	51	50
Amounts due from subsidiaries	-		-	25,954	18,278
Inventories	18,299		21,139	224	-
Other current assets	1,794		2,232		399		199
	58,750		69,241	51,542	53,329
Non-current assets:
Financial assets at fair value through profit or loss (FVPL)	350		1,515	-	-
Financial assets at fair value through other comprehensive
income (FVOCI)	9,830		7,112	-	-
Amounts due from subsidiaries	-		-	9,262	8,156
Investments in subsidiaries	-		-	11,307	11,307
Property and equipment	68		79	34	47
Right-of-use assets (ROU)	1,448		1,987	1,241	1,784
Other non-current assets	131		130		-		-
	11,827		10,823		21,844		21,294
Total assets	70,577		80,064	73,386	74,623
LIABILITIES
Current liabilities:
Trade payables	3,858		7,058	53	51
Amounts due to subsidiaries	-		-	5,097	5,038
Other creditors, accrued liabilities and provisions	11,982		11,702	4,156	4,432
Contract liabilities	77		77	-	-
Lease liabilities	1,034		1,237	897	1,072
Current income tax liabilities	-		19		-		-
	16,951		20,093	10,203	10,593
Non-current liabilities:
Amounts due to subsidiaries	-		-	50,413	50,384
Lease liabilities	324		825	259	811
Deferred income tax liabilities	8,535		8,709		-		-
	8,859		9,534		50,672		51,195
Total liabilities	25,810		29,627		60,875		61,788

NET ASSETS	44,767		50,437	12,511	12,835
EQUITY

Share capital	49,040		49,040	49,040	49,040
Treasury shares	(16,035)		(16,035)	(16,035)	(16,035)
Fair value reserve	2,063		1,924	-	-
Other reserves	42,539		42,247	30,192	29,900
Accumulated losses	(33,201)		(27,132)		(50,686)		(50,070)
	44,406		50,044	12,511	12,835
Non-controlling interests	361		393		-		-
Total equity	44,767		50,437	12,511	12,835

CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

		GROUP
		Half year ended 31 December
	2024			2023
		US$'000	US$'000
Cash flows from operating activities:
Net loss	(6,101)			(4,058)
Adjustments for:
Income tax expense	21			13
Depreciation	703			713
Employee share-based expenses	292			163
Loss on property and equipment written-off	1			-
Fair value gain on financial assets at FVPL	(11)			-
Currency translation gain	(122)			(833)
Interest income	(221)			(703)
Interest expense on lease liabilities		59			98
	(5,379)			(4,607)
Changes in working capital, net of effects from acquisition and
disposal of subsidiaries
Trade receivables	(1,985)			(790)
Inventories	2,840			1,474
Other assets and receivables	418			(196)
Trade payables	(3,200)			(1,247)
Accrued liabilities and provisions	280			142
Contract liabilities		-			(33)
Cash used in operations	(7,026)			(5,257)
Interest received	240			741
Income tax refunded		14			24
Net cash used in operating activities	(6,772)			(4,492)
Cash flows from investing activities:
Purchase of property and equipment	(20)			(18)
Purchase of financial assets at FVOCI		(1,403)			-
Net cash used in investing activities	(1,423)			(18)
Cash flows from financing activities:
Principal payment of lease liabilities	(856)			(741)
Interest paid on lease liabilities		(59)			(98)
Net cash used in financing activities		(915)			(839)
Net decrease in cash and cash equivalents	(9,110)			(5,349)
Cash and cash equivalents at beginning of financial year	42,122			56,320
Effects of currency translation on cash and cash equivalents		(88)			1,079
Cash and cash equivalents at end of the period	32,924			52,050

CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY

Statements of Changes in Equity of the Group

															Non-
	Share			Treasury			Fair Value			Other		Accumulated			controlling	Total
	Capital			Shares			Reserve			Reserves		Losses		Total	Interests	Equity
	US$'000			US$'000			US$'000			US$'000		US$'000		US$'000	US$'000	US$'000
FY2025
Balance at 1 July 2024	49,040	(16,035)	1,924	42,247	(27,132)	50,044	393	50,437
Loss for the period	-	-	-	-	(6,069)	(6,069)	(32)	(6,101)
Other comprehensive income for the period	-	-	139	-	-	139	-	139
Total comprehensive income (loss) for the
period	-		-		139		-		(6,069)		(5,930)	(32)	(5,962)
Employee share-based expense	-	-	-	292	-	292	-	292
Total transactions with owners, recognised
directly in equity	-		-		-		292		-		292	-	292

Balance at 31 December 2024	49,040	(16,035)	2,063	42,539	(33,201)	44,406	361	44,767
FY2024

Balance at 1 July 2023	49,040	(16,035)	1,599	42,586	(17,498)	59,692	386	60,078
Loss for the period	-	-	-	-	(4,072)	(4,072)	14	(4,058)
Other comprehensive income for the period	-		-		198		-		-		198	-	198
Total comprehensive loss for the period	-		-		198		-		(4,072)		(3,874)	14	(3,860)
Employee share-based expense	-	-	-	163	-	163	-	163
Total transactions with owners, recognised
directly in equity	-		-		-		163		-		163	-	163

Balance at 31 December 2023	49,040	(16,035)	1,797	42,749	(21,570)	55,981	400	56,381

Statements of Changes in Equity of the Company

	Share			Treasury	Other	Accumulated	Total
	Capital			Shares	Reserves		Losses	Equity
	US$'000			US$'000	US$'000		US$'000	US$'000
FY2025
Balance at 1 July 2024	49,040	(16,035)	29,900	(50,070)	12,835
Total comprehensive loss for the period	-	-	-	(616)	(616)
Employee share-based expense	-	-	292	-	292

Balance at 31 December 2024	49,040	(16,035)	30,192	(50,686)	12,511
FY2023

Balance at 1 July 2023	49,040	(16,035)	29,047	(40,057)	21,995
Total comprehensive loss for the period	-	-	-	(411)	(411)
Employee share-based expense	-	-	163	-	163

Balance at 31 December 2023	49,040	(16,035)	29,210	(40,468)	21,747

CHANGES IN THE COMPANY'S SHARE CAPITAL

Issued and paid up capital

As at 31 December 2024, the Company's issued and paid up capital excluding treasury shares comprises 70,396,649 (30 June 2024: 70,396,649) ordinary shares.

As at 31 December 2024, the Company's issued and paid up share capital was US$49.04 million (30 June 2024: US$49.04 million).

Employee share options plan

The Company did not issue any treasury shares under the Creative Share Option Scheme (2019) in the first half year of FY2025 (first half year of FY2024: Nil).

As at 31 December 2024, there were 4,065,000 unissued ordinary shares under the options granted to eligible employees and directors (31 December 2023: 4,581,000).

Treasury shares

As at 31 December 2024, the Company held 4,603,351 (31 December 2023: 4,603,351) treasury shares against 70,396,649

(31 December 2023: 70,396,649) issued ordinary shares excluding treasury shares.

The movement of treasury shares for the period is as follows:

Half year ended

31 December

20242023

Balance at beginning of period	4,603,351	4,603,351
Issued for employee share options plan	-	-

Balance at end of period	4,603,351		4,603,351

SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

BASIS OF PREPARATION
The condensed interim financial statements for the six months ended 31 December 2024 have been prepared in accordance with SFRS(I) 1-34 Interim Financial Reporting issued by the Accounting Standards Council Singapore. The condensed interim financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance of the Group since the last annual financial statements for the year ended 30 June 2024.
The Group has applied the same accounting policies and methods of computation in the preparation of the financial statements for the current reporting period compared with the most recent audited financial statements as at 30 June 2024, except for the mandatory adoption of new standards effective as of 1 July 2024. The adoption of the new standards has no significant impact on the financial statements.
PROFIT BEFORE INCOME TAX
Profit before income tax is arrived at after accounting for:

	GROUP
	Six months ended
	31 December
	2024	2023
	US$'000 US$'000
Grant income	7		268
Write-back for inventory obsolescence	569	348
Depreciation	(703)	(713)
Foreign exchange (loss) gain	(27)	965

3. INCOME TAX

Tax expense attributable to profit is made up of:

	GROUP
	Six months ended
	31 December
	2024	2023
	US$'000		US$'000
Current income tax	34	42
Deferred income tax - under provision in prior financial years	(55)	(55)

	(21)		(13)

4. DIVIDENDS

No dividends have been recommended in the first half year of FY2025 and no dividends were recommended or declared for the same period last year.

5. NET ASSETS VALUE
	GROUP		COMPANY
	31 December	30 June	31 December		30 June
	2024		2024	2024	2024
	US$		US$		US$	US$
Net asset value per ordinary share	0.64		0.72	0.18	0.18

6. FAIR VALUE MEASUREMENTS

The following table presents assets and liabilities measured at fair value and classified by level of the following fair value measurement hierarchy:

quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (ie. as prices) or indirectly (ie. derived from prices) (Level 2); and
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

				US$'000
		Level 1		Level 2		Level 3		Total
Group
31 December 2024
Financial assets at FVPL	-	-	350	350
Financial assets at FVOCI	1,497		8,233		100		9,830
		1,497	8,233	450	10,180
30 June 2024
Financial assets at FVPL	-	1,165	350	1,515
Financial assets at FVOCI	1,358		5,654		100		7,112
		1,358		6,819		450		8,627

Fair values for listed equity securities are determined using quoted market prices at the balance sheet date. These instruments are included in Level 1.

Fair values for unlisted equity securities determined by reference to the last transacted price are included in Level 2.

Fair values for unlisted equity securities and fund investments determined using net asset values which approximate the fair value of the investments are included in Level 3.

7. FINANCIAL INSTRUMENTS BY CATEGORY

The carrying amount of the different categories of financial instruments are as follows:

	GROUP
	31 December	30 June
	2024		2024
	US$'000	US$'000
Financial assets, at FVPL	350		1,515
Financial assets, at FVOCI	9,830		7,112
Financial assets, at amortised cost	39,462		46,907
Financial liabilities, at amortised cost	15,875		19,739

8. GROUP BORROWINGS
		GROUP
		31 December	30 June
		2024			2024
		US$'000	US$'000
Amount repayable:
In one year or less, or on demand
Secured	1,034			1,237
Unsecured	-			-
		1,034			1,237
After one year
Secured	324			825
Unsecured	-			-
		324			825

Total		1,358			2,062

Secured borrowings relate to lease liabilities which are secured over right-of-use assets.

9. SHARE CAPITAL AND TREASURY SHARES

		Number of ordinary
		shares		Amount
		Issued
		share		Treasury	Share	Treasury
		capital		shares	capital	shares
		'000		'000	US$'000	US$'000
Group and Company
31 December 2024
Beginning and end of period	75,000	(4,603)	49,040	(16,035)
30 June 2024
Beginning and end of period		75,000		(4,603)	49,040	(16,035)

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