CREATIVE TECHNOLOGY LTD
SECOND HALF YEAR AND FINANCIAL YEAR ENDED 30 JUNE 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 |
1
UNAUDITED RESULTS FOR THE SECOND HALF YEAR AND FINANCIAL YEAR ENDED 30 JUNE 2024
CONDENSED INTERIM CONSOLIDATED INCOME STATEMENT
GROUP
Six months ended
30 June
2024 | 2023 | % change | ||
US$'000 | US$'000 | + / (-) |
GROUP
Financial year ended
30 June
2024 | 2023 | % change | ||
US$'000 | US$'000 | + / (-) |
Sales, net | 30,986 | 28,025 | 11 | 62,779 | 56,236 | 12 | |||
Cost of goods sold | (21,588) | (20,015) | 8 | (43,765) | (42,312) | 3 | |||
Gross profit | 9,398 | 8,010 | 17 | 19,014 | 13,924 | 37 | |||
Expenses: | |||||||||
Selling, general and administrative | (10,453) | (9,232) | 13 | (21,246) | (20,793) | 2 | |||
Research and development | (4,936) | (5,037) | (2) | (9,691) | (14,334) | (32) | |||
Total expenses | (15,389) | (14,269) | 8 | (30,937) | (35,127) | (12) | |||
Interest income | 457 | 891 | (49) | 1,160 | 1,458 | (20) | |||
Other income | 9 | 24 | (63) | 277 | 54 | n.m. | |||
Other (losses) gains, net | (1,074) | (672) | 60 | (60) | 3,214 | n.m. | |||
Interest expense on lease liabilities | (77) | (22) | n.m. | (175) | (72) | n.m. | |||
Loss before income tax | (6,676) | (6,038) | 11 | (10,721) | (16,549) | (35) | |||
Income tax expense | (85) | (74) | 15 | (98) | (140) | (30) | |||
Net loss | (6,761) | (6,112) | 11 | (10,819) | (16,689) | (35) | |||
Attributable to: | |||||||||
Equity holders of the Company | (6,754) | (6,119) | 10 | (10,826) | (16,710) | (35) | |||
Non-controlling interests | (7) | 7 | n.m. | 7 | 21 | (67) | |||
(6,761) | (6,112) | (10,819) | (16,689) | ||||||
Loss per share attributable to | |||||||||
equity holders of the Company | |||||||||
- Basic (US$ per share) | (0.10) | (0.09) | 11 | (0.15) | (0.24) | (38) | |||
- Diluted (US$ per share) | (0.10) | (0.09) | 11 | (0.15) | (0.24) | (38) |
n.m. - not meaningful
2
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
GROUP | GROUP | |||||||||||
Six months ended | Financial year ended | |||||||||||
30 June | 30 June | |||||||||||
2024 | 2023 | % change | 2024 | 2023 | % change | |||||||
US$'000 US$'000 | + / (-) | US$'000 | US$'000 | + / (-) | ||||||||
Net loss | (6,761) | (6,112) | 11 | (10,819) | (16,689) | (35) | ||||||
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 | 127 | (545) | n.m. | 325 | (644) | n.m. | ||||||
Total comprehensive loss for the period/year | (6,634) | (6,657) | (0) | (10,494) | (17,333) | (39) | ||||||
Attributable to: | ||||||||||||
Shareholders of the Company | (6,627) | (6,664) | (1) | (10,501) | (17,354) | (39) | ||||||
Non-controlling interests | (7) | 7 | n.m. | 7 | 21 | (67) | ||||||
Total comprehensive loss for the period/year | (6,634) | (6,657) | (0) | (10,494) | (17,333) | (39) | ||||||
3
CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
Group | Company | ||||||||
30 June | 30 June | 30 June | 30 June | ||||||
2024 | 2023 | 2024 | 2023 | ||||||
US$'000 | US$'000 | US$'000 | US$'000 | ||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | 42,122 | 56,320 | 34,802 | 49,134 | |||||
Trade receivables | 3,748 | 3,004 | 50 | 17 | |||||
Amounts due from subsidiaries | - | - | 18,278 | 13,979 | |||||
Inventories | 21,139 | 18,433 | - | 50 | |||||
Other current assets | 2,232 | 1,825 | 199 | 461 | |||||
69,241 | 79,582 | 53,329 | 63,641 | ||||||
Non-current assets: | |||||||||
Financial assets at fair value through profit or loss (FVPL) | 1,515 | 1,444 | - | - | |||||
Financial assets at fair value through other comprehensive | |||||||||
income (FVOCI) | 7,112 | 6,787 | - | - | |||||
Amounts due from subsidiaries | - | - | 8,156 | 7,778 | |||||
Investments in subsidiaries | - | - | 11,307 | 11,557 | |||||
Property and equipment | 79 | 111 | 47 | 68 | |||||
Right-of-use assets (ROU) | 1,987 | 3,109 | 1,784 | 2,870 | |||||
Other non-current assets | 130 | 134 | - | - | |||||
10,823 | 11,585 | 21,294 | 22,273 | ||||||
Total assets | 80,064 | 91,167 | 74,623 | 85,914 | |||||
LIABILITIES | |||||||||
Current liabilities: | |||||||||
Trade payables | 7,058 | 6,582 | 51 | 16 | |||||
Amounts due to subsidiaries | - | - | 5,038 | 5,083 | |||||
Other creditors, accrued liabilities and provisions | 11,702 | 12,443 | 4,432 | 5,354 | |||||
Contract liabilities | 77 | 133 | - | - | |||||
Lease liabilities | 1,237 | 1,255 | 1,072 | 1,026 | |||||
Current income tax liabilities | 19 | 18 | - | - | |||||
20,093 | 20,431 | 10,593 | 11,479 | ||||||
Non-current liabilities: | |||||||||
Amounts due to subsidiaries | - | - | 50,384 | 50,556 | |||||
Lease liabilities | 825 | 1,941 | 811 | 1,884 | |||||
Deferred income tax liabilities | 8,709 | 8,717 | - | - | |||||
9,534 | 10,658 | 51,195 | 52,440 | ||||||
Total liabilities | 29,627 | 31,089 | 61,788 | 63,919 | |||||
NET ASSETS | 50,437 | 60,078 | 12,835 | 21,995 | |||||
EQUITY | |||||||||
Share capital | 49,040 | 49,040 | 49,040 | 49,040 | |||||
Treasury shares | (16,035) | (16,035) | (16,035) | (16,035) | |||||
Fair value reserve | 1,924 | 1,599 | - | - | |||||
Other reserves | 42,247 | 42,586 | 29,900 | 29,047 | |||||
Accumulated losses | (27,132) | (17,498) | (50,070) | (40,057) | |||||
50,044 | 59,692 | 12,835 | 21,995 | ||||||
Non-controlling interests | 393 | 386 | - | - | |||||
Total equity | 50,437 | 60,078 | 12,835 | 21,995 | |||||
4
CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
GROUP | |||||
Financial year ended 30 June | |||||
2024 | 2023 | ||||
US$'000 | US$'000 | ||||
Cash flows from operating activities: | |||||
Net loss | (10,819) | (16,689) | |||
Adjustments for: | |||||
Income tax expense | 98 | 140 | |||
Depreciation | 1,436 | 2,066 | |||
Employee share-based expense | 853 | 399 | |||
Gain on disposal of property and equipment | - | (3) | |||
Right-of-use assets written off | - | 484 | |||
Fair value (gain) loss on financial assets at FVPL | (71) | 64 | |||
Currency translationloss (gain) | 186 | (487) | |||
Interest income | (1,160) | (1,458) | |||
Interest expense on lease liabilities | 175 | 72 | |||
(9,302) | (15,412) | ||||
Changes in working capital | |||||
Trade receivables | (744) | (190) | |||
Inventories | (2,706) | 2,321 | |||
Other assets and receivables | (575) | 1,034 | |||
Trade payables | 476 | 530 | |||
Accrued liabilities and provisions | (741) | (1,692) | |||
Contract liabilities | (56) | (28) | |||
Cash used in operations | (13,648) | (13,437) | |||
Interest received | 1,332 | 1,284 | |||
Income tax refunded (paid) | 17 | (13) | |||
Net cash used in operating activities | (12,299) | (12,166) | |||
Cash flows from investing activities: | |||||
Purchase of property and equipment | (48) | (80) | |||
Proceeds from sale of property and equipment | - | 3 | |||
Purchase of financial assets at FVOCI | - | (100) | |||
Purchase of financial assets at FVPL | - | (1,000) | |||
Net cash used in investing activities | (48) | (1,177) | |||
Cash flows from financing activities: | |||||
Repayment of lease liabilities | (1,358) | (2,409) | |||
Interest paid on lease liabilities | (175) | (72) | |||
Net cash used in financing activities | (1,533) | (2,481) | |||
Net decrease in cash and cash equivalents | (13,880) | (15,824) | |||
Cash and cash equivalents at beginning of financial year | 56,320 | 71,294 | |||
Effects of currency translation on cash and cash equivalents | (318) | 850 | |||
Cash and cash equivalents at end of the financial year | 42,122 | 56,320 | |||
5
CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY
Statements of Changes in Equity of the Group
Retained Earnings | 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 | ||||||||||
FY2024 | |||||||||||||||||
Balance at 1 July 2023 | 49,040 | (16,035) | 1,599 | 42,586 | (17,498) | 59,692 | 386 | 60,078 | |||||||||
(Loss) income for the year | - | - | - | - | (10,826) | (10,826) | 7 | (10,819) | |||||||||
Other comprehensive income for the year | - | - | 325 | - | - | 325 | - | 325 | |||||||||
Total comprehensive income (loss) for the | |||||||||||||||||
year | - | - | 325 | - | (10,826) | (10,501) | 7 | (10,494) | |||||||||
Employee share-based expense | - | - | - | 853 | - | 853 | - | 853 | |||||||||
Transfer upon liquidation of subsidiary | - | - | - | (1,192) | 1,192 | - | - | - | |||||||||
Total transactions with owners, recognised | |||||||||||||||||
directly in equity | - | - | - | (339) | 1,192 | 853 | - | 853 | |||||||||
Balance at 30 June 2024 | 49,040 | (16,035) | 1,924 | 42,247 | (27,132) | 50,044 | 393 | 50,437 | |||||||||
FY2023 | |||||||||||||||||
Balance at 1 July 2022 | 49,040 | (16,035) | 2,243 | 42,187 | (788) | 76,647 | 365 | 77,012 | |||||||||
Loss for the year | - | - | - | - | (16,710) | (16,710) | 21 | (16,689) | |||||||||
Other comprehensive loss for the year | - | - | (644) | - | - | (644) | - | (644) | |||||||||
Total comprehensive (loss) income for the | |||||||||||||||||
year | - | - | (644) | - | (16,710) | (17,354) | 21 | (17,333) | |||||||||
Employee share-based expense | - | - | - | 399 | - | 399 | - | 399 | |||||||||
Total transactions with owners, recognised | |||||||||||||||||
directly in equity | - | - | - | 399 | - | 399 | - | 399 | |||||||||
Balance at 30 June 2023 | 49,040 | (16,035) | 1,599 | 42,586 | (17,498) | 59,692 | 386 | 60,078 | |||||||||
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 | |||||
FY2024 | |||||||||
Balance at 1 July 2023 | 49,040 | (16,035) | 29,047 | (40,057) | 21,995 | ||||
Total comprehensive loss for the year | - | - | - | (10,013) | (10,013) | ||||
Employee share-based expense | - | - | 853 | - | 853 | ||||
Balance at 30 June 2024 | 49,040 | (16,035) | 29,900 | (50,070) | 12,835 | ||||
FY2023 | |||||||||
Balance at 1 July 2022 | 49,040 | (16,035) | 28,648 | (24,682) | 36,971 | ||||
Total comprehensive loss for the year | - | - | - | (15,375) | (15,375) | ||||
Employee share-based expense | - | - | 399 | - | 399 | ||||
Balance at 30 June 2023 | 49,040 | (16,035) | 29,047 | (40,057) | 21,995 | ||||
6
CHANGES IN THE COMPANY'S SHARE CAPITAL
Issued and paid up capital
As at 30 June 2024, the Company's issued and paid up capital excluding treasury shares comprises 70,396,649 (30 June 2023: 70,396,649) ordinary shares.
As at 30 June 2024, the Company's issued and paid up share capital was US$49.04 million (31 December 2023: US$49.04 million).
Employee share options plan
The Company did not issue any treasury shares under the Creative Share Option Scheme (2019) in the second half year of FY2024 (second half year of FY2023: Nil).
As at 30 June 2024, there were 4,554,000 unissued ordinary shares under the options granted to eligible employees and directors (30 June 2023: 1,256,000).
Treasury shares
As at 30 June 2024, the Company held 4,603,351 (30 June 2023: 4,603,351) treasury shares against 70,396,649 (30
June 2023: 70,396,649) issued ordinary shares excluding treasury shares.
The movement of treasury shares for the period is as follows:
Half year ended
30 June
20242023
Balance at beginning and end of period | 4,603,351 | 4,603,351 |
7
SELECTED NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
-
BASIS OF PREPARATION
The condensed interim financial statements for the six months ended 30 June 2024 have been prepared in accordance with SFRS(I) 1-34Interim Financial Reporting issued by the Accounting Standards Council Singapore. The condensed interim financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance of the Group since the last interim financial statements for the period ended 31 December 2023.
The Group has applied the same accounting policies and methods of computation in the preparation of the financial statements for the current reporting period compared with the most recent audited financial statements as at 30 June 2023, except for the mandatory adoption of new standards effective as of 1 July 2023. The adoption of the new standards has no significant impact on the financial statements. - BREAKDOWN OF SALES
GROUP | ||||||
Financial | Financial | |||||
year ended | year ended | |||||
30 June 2024 | 30 June 2023 | % change | ||||
US$'000 | US$'000 | + / (-) | ||||
First Half Year | ||||||
(a) | Sales | 31,793 | 28,211 | 13% | ||
(b) | Net loss | (4,058) | (10,577) | (62%) | ||
Second Half Year | ||||||
(a) | Sales | 30,986 | 28,025 | 11% | ||
(b) | Net loss | (6,761) | (6,112) | 11% |
3. LOSS BEFORE INCOME TAX
Loss before income tax is arrived at after accounting for:
GROUP | |||||||
Six months ended | Financial year ended | ||||||
30 June | 30 June | ||||||
2024 | 2023 | 2024 | 2023 | ||||
US$'000 US$'000 | US$'000 | US$'000 | |||||
Income | |||||||
Grant income | 9 | 24 | 277 | 54 | |||
Expenses | |||||||
(Write-off/write-down)write-back for inventory obsolescence | (40) | 169 | 308 | 235 | |||
Depreciation | (723) | (901) | (1,436) | (2,066) | |||
Fair value gain (loss) on financial assets at FVPL | 71 | (8) | 71 | (64) | |||
Foreign exchange (loss) gain | (1,176) | (638) | (211) | 461 |
8
4. INCOME TAX
Tax credit (expense) attributable to profit is made up of:
GROUP | |||||||
Six months ended | Financial year ended | ||||||
30 June | 30 June | ||||||
2024 | 2023 | 2024 | 2023 | ||||
US$'000 US$'000 | US$'000US$'000 | ||||||
Current income tax | (29) | (20) | 13 | (33) | |||
Deferred income tax - under provision in prior financial years | (56) | (54) | (111) | (107) | |||
(85) | (74) | (98) | (140) | ||||
- DIVIDENDS
No dividends have been recommended in the second half year of FY2024 and no dividends were recommended or declared for the same period last year. - NET ASSETS VALUE
GROUP | COMPANY | |||||||
30 June | 30 June | 30 June | 30 June | |||||
2024 | 2023 | 2024 | 2023 | |||||
US$ | US$ | US$ | US$ | |||||
Net asset value per ordinary share | 0.72 | 0.85 | 0.18 | 0.31 |
7. 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$'000 | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||
Group | ||||||||
30 June 2024 | ||||||||
Financial assets at FVPL | - | 1,165 | 350 | 1,515 | ||||
Financial assets at FVOCI | 1,358 | 5,654 | 100 | 7,112 | ||||
1,358 | 6,819 | 450 | 8,627 | |||||
30 June 2023 | ||||||||
Financial assets at FVPL | - | 1,000 | 444 | 1,444 | ||||
Financial assets at FVOCI | 1,033 | 5,654 | 100 | 6,787 | ||||
1,033 | 6,654 | 544 | 8,231 |
Fair values for listed equity securities are determined using quoted market prices at the balance sheet date. These instruments are included in Level 1.
Fair values for unlisted equity securities determined by reference to the last transacted price are included in Level 2.
9
Fair values for unlisted equity securities and fund investments determined using net asset values which approximate the fair value of the investments are included in Level 3.
8. FINANCIAL INSTRUMENTS BY CATEGORY
The carrying amount of the different categories of financial instruments are as follows:
GROUP | ||||||||||||||||
30 June | 30 June | |||||||||||||||
2024 | 2023 | |||||||||||||||
US$'000 | US$'000 | |||||||||||||||
Financial assets, at FVPL | 1,515 | 1,444 | ||||||||||||||
Financial assets, at FVOCI | 7,112 | 6,787 | ||||||||||||||
Financial assets, at amortised cost | 46,907 | 60,192 | ||||||||||||||
Financial liabilities, at amortised cost | 19,739 | 20,942 | ||||||||||||||
9. GROUP BORROWINGS | ||||||||||||||||
GROUP | ||||||||||||||||
30 June | 30 June | |||||||||||||||
2024 | 2023 | |||||||||||||||
US$'000 | US$'000 | |||||||||||||||
Amount repayable: | ||||||||||||||||
In one year or less, or on demand | ||||||||||||||||
Secured | 1,237 | 1,255 | ||||||||||||||
Unsecured | - | - | ||||||||||||||
1,237 | 1,255 | |||||||||||||||
After one year | ||||||||||||||||
Secured | 825 | 1,941 | ||||||||||||||
Unsecured | - | - | ||||||||||||||
825 | 1,941 | |||||||||||||||
Total | 2,062 | 3,196 | ||||||||||||||
Secured borrowings relate to lease liabilities which are secured over right-of-use assets. | ||||||||||||||||
10. SHARE CAPITAL AND TREASURY SHARES | ||||||||||||||||
Number of ordinary | ||||||||||||||||
shares | Amount | |||||||||||||||
Issued | ||||||||||||||||
share | Treasury | Share | Treasury | |||||||||||||
capital | shares | capital | shares | |||||||||||||
'000 | '000 | US$'000 | US$'000 | |||||||||||||
Group and Company | ||||||||||||||||
30 June 2024 | ||||||||||||||||
Beginning and end of period | 75,000 | (4,603) | 49,040 | (16,035) | ||||||||||||
30 June 2023 | ||||||||||||||||
Beginning and end of period | 75,000 | (4,603) | 49,040 | (16,035) |
10