SAPPHIRE CORPORATION LIMITED REGISTRATION NUMBER: 198502465W
UNAUDITED CONDENSED INTERIM FINANCIAL
STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2021
Contents
A. Condensed interim consolidated statement of profit or loss and other comprehensive income .............. 1
B. Condensed interim statements of financial position .................................................................................... 2
C. Condensed interim consolidated statement of cash flows ........................................................................... 3
D. Condensed interim statements of changes in equity ................................................................................... 5
E. Notes to the condensed interim consolidated financial statements ............................................................ 7
F. Other information required by Listing Rule Appendix 7.2. ......................................................................... 21
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 A. Condensed interim consolidated statement of profit or loss and other comprehensive income
Note
Revenue 4.2 Cost of sales
Gross profit
Other income 5 Selling and distribution expensesAdministrative expenses Other expenses
Group 1H2020 Continuing Discontinued 1H2021 RMB'000 operations RMB'000 operations RMB'000 Total RMB'000 Change % | |
30,539 4,141 636,535 | 640,676 (95.2) |
(24,538) (2,167) (590,270) | (592,437) (95.9) |
6,001 1,974 46,265 | 48,239 (87.6) |
4,105 438 4,352 | 4,790 (14.3) |
- - (4,911) | (4,911)NM |
(7,025)(70.0)
(3,374)
(20,019)
(23,393)
Profit/(loss) from operating activities
Finance costs 6 Share of profit of associated company
Profit/(loss) before tax 7
Tax expense 8
Profit/(loss) for the period
Other comprehensive income
Items that are or may be reclassified to profit or loss in subsequent periods (net of tax): Foreign currency translation differences
Share of other comprehensive income of an associated company
(754) | (1,090) | (3,175) | (4,265) (82.3) |
2,327 | (2,052) | 22,512 | 20,460 (88.6) |
(1,117) | (11) | (9,483) | (9,494) (88.2) |
4,653 | - | 1,413 | 1,413 229.3 |
5,863 | (2,063) | 14,442 | 12,379 (52.6) |
(931) | (44) | (2,034) | (2,078) (55.2) |
4,932 | (2,107) | 12,408 | 10,301 (52.1) |
127 488
(30)
-
NM NM
Total other comprehensive income for the period
Total comprehensive income for the period
615 5,547
(30) 10,271
NM
Profit attributable to: Owners of the Company Non-controlling interests Profit for the period
Total comprehensive income attributable to:
Owners of the Company Non-controlling interest
Total comprehensive income for the period
Earnings per share for profit for the period attributable to the owners of the Company:
Basic (RMB in cent)
Diluted (RMB in cent)
4,711 221 | 9,980 (52.8) 321 (31.2) |
4,932 | 10,301 |
5,326 | 9,950 (46.5) |
221 | 321 (31.2) |
5,547 | 10,271 |
1.16 1.16 | (52.7) 2.45 2.45 (52.7) |
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 B. Condensed interim statements of financial position
Group
Company
30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | ||
Note | RMB'000 | RMB'000 | RMB'000 | RMB'000 | |
Assets | |||||
Property, plant and | |||||
equipment | 9 | 34,232 | 32,404 | 47 | 56 |
Subsidiaries | - | - | 418,480 | 430,472 | |
Associated company | 349,923 | 344,782 | - | - | |
Restricted cash | 10 | 91,698 | 35,698 | - | - |
Total non-current assets | 475,853 | 412,884 | 418,527 | 430,528 | |
Other investment | 11 | 3,285 | 2,316 | 3,285 | 2,316 |
Inventories | 1,047 | 1,517 | - | - | |
Contract assets | 12 | 564 | 6,271 | - | - |
Trade receivables | 12 | 9,917 | 18,565 | - | - |
Other receivables | 12 | 36,070 | 119,526 | 257 | 424 |
Cash and cash equivalents | 126,495 | 170,909 | 74 | 214 | |
Total current assets | 177,378 | 319,104 | 3,616 | 2,954 | |
Total assets | 653,231 | 731,988 | 422,143 | 433,482 | |
Equity | |||||
Share capital | 466,700 | 466,700 | 466,700 | 466,700 | |
Reserves | 144,370 | 139,044 | (53,359) | (40,280) | |
Equity attributable to owners | |||||
of the Company | 611,070 | 605,744 | 413,341 | 426,420 | |
Non-controlling interests | 12,116 | 11,895 | - | - | |
Total equity | 623,186 | 617,639 | 413,341 | 426,420 | |
Liabilities | |||||
Provisions | 13 | 6,017 | 6,517 | - | - |
Total non-current liabilities | 6,017 | 6,517 | - | - | |
Trade payables | 14 | 6,562 | 18,058 | - | - |
Other payables | 14 | 16,745 | 70,416 | 8,802 | 7,062 |
Current tax liabilities | 721 | 19,358 | - | - | |
Total current liabilities | 24,028 | 107,832 | 8,802 | 7,062 | |
Total liabilities | 30,045 | 114,349 | 8,802 | 7,062 | |
Total equity and liabilities | 653,231 | 731,988 | 422,143 | 433,482 |
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 C. Condensed interim consolidated statement of cash flows
Group
1H2021 | 1H2020 | |
RMB'000 | RMB'000 | |
Operating activities | ||
Profit before tax | 5,863 | 12,379 |
Adjustments for: | ||
Depreciation of property, plant and equipment | 1,298 | 14,764 |
Amortisation of investment properties | - | 1,205 |
Gain on disposal of property, plant and equipment, net | - | (312) |
Change in fair value of financial asset designated as fair value through profit | ||
or loss | (1,045) | 949 |
Reversal of impairment loss on trade and other receivables and contract | ||
assets | (44) | - |
Reversal of provisions | (500) | - |
Interest income | (2,375) | (207) |
Interest expense | 1,117 | 9,494 |
Share of profit of equity-accounted investees (net of tax) | (4,653) | (1,413) |
Operating (loss)/profit before working capital changes | (339) | 36,859 |
Changes in working capital: | ||
Inventories | 470 | 11,171 |
Contract assets | 5,752 | 47,198 |
Contract liabilities | - | (71,833) |
Trade and other payables | (12,630) | (242,728) |
Trade and other receivables | 5,596 | 137,962 |
Cash flows used in operations | (1,151) | (81,371) |
Tax paid | (2,635) | (5,929) |
Net cash used in operating activities | (3,786) | (87,300) |
Investing activities | ||
Interest received | 345 | 207 |
Payment for purchase of plant and equipment | (3,126) | (3,961) |
Proceeds from disposal of plant and equipment | - | 10,366 |
Payment for disposal of subsidiaries (tax paid) | (16,933) | - |
Remaining Tranche 2 proceeds received from the disposal of a subsidiary (see | ||
- | ||
Note A below) | 56,000 | |
Transfer to Escrow Accounts (see Note A below) | (56,000) | - |
Loan to an associated company (Note 12) | (20,000) | - |
Net cash (used in)/generated from investing activities | (39,714) | 6,612 |
Financing activities | ||
Interest paid | - | (7,603) |
Factoring expenses paid | (1,117) | - |
Proceeds from bank loans | - | 49,000 |
Payment of bank loans | - | (40,000) |
Proceeds from refinancing of lease liabilities | - | 47,000 |
Payment of finance lease liabilities | - | (28,032) |
(Placement)/withdrawal of fixed deposit pledged, net | - | (3,500) |
Net cash (used in)/generated from in financing activities | (1,117) | 16,865 |
3/28 |
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2021
Group
1H2021 | 1H2020 | |
RMB'000 | RMB'000 | |
Net decrease in cash and cash equivalents | (44,617) | (63,823) |
Cash and cash equivalents at beginning of the period | 170,909 | 169,341 |
Effect of exchange rate changes on the balances held in foreign currencies | 203 | 45 |
Cash and cash equivalents classified as held for sale | - | (104,074) |
Cash and cash equivalents at end of the period | 126,495 | 1,489 |
Significant non-cash transaction |
An amount of RMB 52,537,000 being amount due to associated company was offset against amount due from the same associated company (Ranken Railway) during the period.
Note:
As disclosed in the Circular dated 9 October 2020, in order for the Company to not be deemed as a cash company under Rule 1018 of the Listing Manual, the Company has voluntarily undertaken to SGX-ST that upon receipt of the full amount of the Sale Consideration from the Investor, the Company will place the Net Proceeds into the Escrow Account as follows:
(A) the remaining 35.7% of the Net Proceeds amounting to RMB 91,698,000 (of which RMB 56,000,000 was received in 1H2021), being the Tranche 2 Escrowed Sum, until (i) certain financial conditions are met and subject to SGX-ST's approval for the Company to cease such escrow arrangement. These are not included in "cash and cash equivalents" but classified as "restricted cash" under "non-current portion" in the consolidated statement of financial position as the amount has to be held in escrow in the Escrow Account until certain financial conditions are met and subject to SGX-ST's approval for the Company to cease such escrow arrangement, which is expected to be more than 12 months; and
(B) the Dividend Allocation Sum, being part of the Tranche 1 Escrowed Sum relates to an amount equivalent to 36.3% of the Net Proceeds being RMB 93,308,000, which will be allocated for distribution to Shareholders by way of dividends and is included in "cash and cash equivalents".
In the event that SGX-ST does not approve the cessation of the escrow arrangement as mentioned above before the expiry of three (3) years from the date that the shares in Ranken Railway are registered in the name of the Investor, the Company shall distribute the Tranche 2 Escrowed Sum to its Shareholders by way of dividends after a capital reduction exercise (which may not be required) to write off all accumulated losses of the Group after FY2020 (if any).
The SGX-ST will reject the Company's application to withdraw the Tranche 2 Escrowed Sum if the Company's latest audited full year consolidated accounts are subject to an adverse opinion, a qualified opinion, a disclaimer of opinion or the Company's auditors have stated that a material uncertainty related to going concern exists.
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