SERIAL SYSTEM LTD
Company Registration No.: 199202071D (Incorporated in Singapore on 22 April 1992)
Unaudited Second Quarter and Half Year Financial Statement and Dividend Announcement for the Period Ended 30 June 2019
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF- YEAR AND FULL YEAR RESULTS
1(a)(i) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.
The Group | |||||||
Second Quarter | Year-To-Date | ||||||
2Q2019 | 2Q2018 | 30/06/2019 | 30/06/2018 | ||||
Note | US$'000 | US$'000 | US$'000 | US$'000 | |||
Sales | 201,367 | 408,703 | -51% | 431,252 | 813,923 | -47% | |
Cost of sales | (187,956) | (375,095) | -50% | (401,166) | (748,922) | -46% | |
Gross profit | 13,411 | 33,608 | -60% | 30,086 | 65,001 | -54% | |
Gross profit margin | 6.7% | 8.2% | -1.5 pt | 7.0% | 8.0% | -1.0 pt | |
Other income: | |||||||
Other operating income | 9,435 | (137) | NM | 17,488 | 2,806 | 523% |
Expenses:
Distribution | (10,471) | (13,259) | -21% | |
Administrative | (2,440) | (4,460) | -45% | |
Finance | (2,324) | (3,329) | -30% | |
Other: | ||||
Loss allowance on trade and other receivables | (212) | (453) | -53% | |
Other operating | (5,563) | (7,766) | -28% | |
Total expenses | (21,010) | (29,267) | -28% | |
1,836 | 4,204 | -56% | ||
Share of results of associated companies | ||||
(after income tax) | 365 | (59) | NM | |
Share of loss of joint venture | ||||
(after income tax) | (165) | (15) | 1,000% | |
Profit before income tax | 1 | 2,036 | 4,130 | -51% |
Income tax expense | 2 | (204) | (1,873) | -89% |
Profit after income tax | 1,832 | 2,257 | -19% | |
Attributable to: | ||||
Equity holders of the Company | 2,251 | 2,042 | 10% | |
Non-controlling interests | (419) | 215 | NM | |
1,832 | 2,257 | -19% |
(20,391) | (27,368) | -25% |
(4,884) | (9,042) | -46% |
(5,419) | (6,409) | -15% |
(469) | (1,231) | -62% |
(12,305) | (10,955) | 12% |
(43,468) | (55,005) | -21% |
4,106 | 12,802 | -68% |
385 | (288) | NM |
(205) | (78) | 163% |
4,286 | 12,436 | -66% |
67 | (4,148) | NM |
4,353 | 8,288 | -47% |
5,429 | 7,232 | -25% |
(1,076) | 1,056 | NM |
4,353 | 8,288 | -47% |
1
Notes : | |||||||||
1. Profit before income tax | |||||||||
The Group | |||||||||
Second Quarter | Year-To-Date | ||||||||
2Q2019 | 2Q2018 | 30/06/2019 | 30/06/2018 | ||||||
US$'000 | US$'000 | % | US$'000 | US$'000 | % | ||||
Profit from operations is arrived at after | |||||||||
charging/(crediting):- | |||||||||
a. | Depreciation and amortisation | 1,231 | 731 | 68 | 2,586 | 1,469 | 76 | ||
b. | Amortisation of distribution rights | 4 | 3 | 33 | 7 | 7 | - | ||
c. | Gain on closure of a subsidiary | (14) | - | NM | (14) | - | NM | ||
d. | Loss on disposal of property, plant and | ||||||||
equipment | - | 1 | NM | - | 9 | NM |
- Fair value (gain)/loss on financial assets, at fair
value through profit or loss | (521) | 1,166 | NM | (1,012) | 1,165 | NM |
- Gain on sale of financial assets, at fair value
through profit or loss | (598) | - | NM | (952) | (25) | 3,708 |
- Dividend income from financial assets, at fair
value through profit or loss | (45) | (47) | -4 | (45) | (47) | -4 |
- Impairment losses on goodwill arising from
acquisition of subsidiaries | 540 | 600 | -10 | 940 | 900 | 4 |
- Impairment loss on investment in an associated
company | - | 1,500 | NM | - | 1,500 | NM | ||
j. | Currency translation loss/(gain) (net) | 754 | 1,972 | -62 | (241) | 331 | NM | |
k. | Loss/(gain) on derivative financial instruments | 104 | (47) | NM | 97 | (272) | NM | |
l. | Loss allowance on trade receivables | 212 | 318 | -33 | 469 | 716 | -34 | |
m. | Loss allowance on other receivables | - | 135 | NM | - | 515 | NM | |
n. | Allowance/(write-back) of allowance for | |||||||
inventory obsolescence | 945 | 347 | 172 | 3,082 | (884) | NM | ||
o. | Write-off of inventories | 22 | 14 | 57 | 23 | 54 | -57 | |
p. | Hong Kong IPO expenses | - | 957 | NM | - | 2,019 | NM | |
q. | Consideration in relation to transfer of TI | |||||||
distribution business to an authorized | ||||||||
distributor | (7,621) | - | NM | (12,683) | - | NM | ||
r. | Interest income | (570) | (477) | 19 | (1,168) | (989) | 18 | |
2Q2019 | 2Q2018 | 30/06/2019 | 30/06/2018 | |||||
2. Income tax expense | US$'000 | US$'000 | % | US$'000 | US$'000 | % | ||
Under/(over) provision in preceding financial | ||||||||
years | ||||||||
- Current income tax | 60 | 15 | 300 | (304) | 215 | NM | ||
- Deferred income tax | 21 | - | NM | - | - | NM | ||
81 | 15 | 440 | (304) | 215 | NM |
NM - Not Meaningful
2
1(a)(ii) A statement of comprehensive income for the Group together with a comparative statement for the corresponding period of the immediately preceding financial year
The Group | ||||||||
Second Quarter | Year-To-Date | |||||||
2Q2019 | 2Q2018 | 30/06/2019 | 30/06/2018 | |||||
US$'000 US$'000 | US$'000 | US$'000 | ||||||
Net profit after income tax | 1,832 | 2,257 | -19% | 4,353 | 8,288 | -47% | ||
Other comprehensive (loss)/income for the period: | ||||||||
Items that will not be reclassified subsequently to | ||||||||
profit or loss: | ||||||||
Share of associated company's other comprehensive loss | (14) | - | NM | (14) | - | NM | ||
(14) | - | NM | (14) | - | NM | |||
Items that may be reclassified subsequently to profit | ||||||||
or loss: | ||||||||
Share of associated companies' other comprehensive | ||||||||
income/(loss) | 31 | (183) | NM | 46 | (286) | NM | ||
Share of joint venture's other comprehensive | ||||||||
(loss)/income | (5) | (156) | -97% | 4 | (44) | NM | ||
Currency translation differences | (1,002) | (4,947) | -80% | 334 | (2,363) | NM | ||
(976) | (5,286) | -82% | 384 | (2,693) | NM | |||
Other comprehensive (loss)/income for the period | (990) | (5,286) | -81% | 370 | (2,693) | NM | ||
Total comprehensive income/(loss) for the period | 842 | (3,029) | NM | 4,723 | 5,595 | -16% | ||
Total comprehensive income/(loss) attributable to: | ||||||||
Equity holders of the Company | 1,339 | (3,049) | NM | 5,600 | 4,394 | 27% | ||
Non-controlling interests | (497) | 20 | NM | (877) | 1,201 | NM | ||
842 | (3,029) | NM | 4,723 | 5,595 | -16% |
NM - Not Meaningful
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1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
The Group | The Company | ||||
30/06/2019 | 31/12/2018 | 30/06/2019 | 31/12/2018 | ||
US$'000 | US$'000 | US$'000 | US$'000 | ||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 46,924 | 59,180 | 7,693 | 8,057 | |
Trade and other receivables | 139,643 | 181,161 | 18,980 | 18,418 | |
Inventories | 113,068 | 144,995 | - | - | |
Financial assets, at fair value through profit or loss | 35,654 | 70,953 | - | - | |
Other current assets | 2,368 | 2,232 | 545 | 261 | |
337,657 | 458,521 | 27,218 | 26,736 | ||
Non-current assets | |||||
Income tax recoverable | 1,667 | 1,667 | - | - | |
Loans and other receivables | - | - | 38,491 | 34,970 | |
Financial assets, at fair value through profit or loss | 3,486 | 3,506 | - | - | |
Financial assets, at fair value through other comprehensive income | 594 | 1,995 | - | - | |
Investments in associated companies | 4,159 | 3,742 | 1,390 | 1,390 | |
Investment in joint venture | 1,614 | 1,815 | - | - | |
Investments in subsidiaries | - | - | 68,653 | 68,653 | |
Property, plant and equipment | 34,039 | 35,323 | 624 | 720 | |
Investment properties | 4,351 | 4,402 | - | - | |
Right-of-use assets(1) | 3,468 | - | - | - | |
Intangible assets | 8,266 | 9,062 | 139 | 58 | |
Other assets | 518 | 566 | - | - | |
Deferred income tax assets | 490 | 481 | - | - | |
62,652 | 62,559 | 109,297 | 105,791 | ||
Total Assets | 400,309 | 521,080 | 136,515 | 132,527 | |
LIABILITIES | |||||
Current liabilities | |||||
Trade and other payables | 102,430 | 156,621 | 21,496 | 13,766 | |
Current income tax liabilities | 2,382 | 3,438 | 145 | 163 | |
Borrowings(1) | 135,698 | 211,443 | 54 | 6,496 | |
240,510 | 371,502 | 21,695 | 20,425 | ||
Non-current liabilities | |||||
Other payables | - | - | 11,544 | 12,028 | |
Borrowings(1) | 12,186 | 3,594 | 6,096 | 208 | |
Defined benefit plans liabilities | 962 | 863 | - | - | |
Deferred income tax liabilities | 662 | 660 | 288 | 288 | |
13,810 | 5,117 | 17,928 | 12,524 | ||
Total Liabilities | 254,320 | 376,619 | 39,623 | 32,949 | |
Net Assets | 145,989 | 144,461 | 96,892 | 99,578 |
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The Group | The Company | |||
30/06/2019 | 31/12/2018 | 30/06/2019 | 31/12/2018 | |
US$'000 | US$'000 | US$'000 | US$'000 | |
EQUITY | ||||
Capital and reserves attributable to the equity holders of | ||||
the Company | ||||
Share capital | 72,648 | 72,648 | 72,648 | 72,648 |
Treasury shares | (736) | (736) | (736) | (736) |
Capital reserve | 1,276 | 1,276 | 180 | 180 |
Defined benefit plans reserve | (206) | (206) | - | - |
Fair value reserve | (742) | (742) | - | - |
Revaluation reserve | 45 | 59 | - | - |
Other reserve | (765) | (765) | - | - |
Currency translation reserve | 4,979 | 4,794 | - | - |
Retained earnings (1) | 62,634 | 60,401 | 24,800 | 27,486 |
139,133 | 136,729 | 96,892 | 99,578 | |
Non-controlling interests | 6,856 | 7,732 | - | - |
Total Equity | 145,989 | 144,461 | 96,892 | 99,578 |
- The effect on adoption of the SFRS(I) 16 has resulted in an increase in right-of-use assets of approximately US$4,755,000, an increase in lease liabilities of US$4,925,000 (included in current borrowings of US$2,292,000 and non-current borrowings of US$2,633,000), with a corresponding decrease in retained earnings of US$170,000 as at 1 January 2019 (see Section 5 below). The right-of-use assets and lease liabilities were further reduced by US$1,287,000 and US$1,255,000 respectively in 1H2019.
1(b)(ii) Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand
30/06/2019 | 31/12/2018 | ||
Secured | Unsecured | Secured | Unsecured |
US$'000 | US$'000 | US$'000 | US$'000 |
5,568 | 130,130 | 8,811 | 202,632 |
Amount repayable after one year | |||
30/06/2019 | 31/12/2018 | ||
Secured | Unsecured | Secured | Unsecured |
US$'000 | US$'000 | US$'000 | US$'000 |
9,278 | 2,908 | 3,594 | - |
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