Issuer/ Manager | METRO HOLDINGS LTD |
Securities | METRO HOLDINGS LIMITED SG1I11878499 M01 |
Stapled Security | No |
Announcement Title | Financial Statements and Related Announcement |
Date & Time of Broadcast | 13Feb2017 17:25:01 |
Status | New |
Announcement Sub Title | Third Quarter Results |
Announcement Reference | SG170213OTHRHXJO |
Submitted By (Co./ Ind. Name) | Tan Ching Chek |
Designation | Company Secretary |
Description (Please provide a detailed description of the event in the box below Refer to the Online help for the format) | Please refer to the 2 attachments to this announcement:
|
For Financial Period Ended | 31/12/2016 |
Attachments | MHLQ3 ended 31Dec2016.pdfMHL Q3News Release.pdf Total size =363K |
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METRO HOLDINGS LIMITEDThe Board of Directors of Metro Holdings Limited is pleased to announce the following:- UNAUDITED RESULTS FOR THE THIRD QUARTER ENDED 31 DECEMBER 2016
1(a) (i) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year
Group 3rd Qtr 3rd Qtr | Group 9 months 9 months | |||
ended ended 31-Dec-2016 31-Dec-2015 $'000 $'000 | % Change | ended ended 31-Dec-2016 31-Dec-2015 $'000 $'000 | % Change | |
Revenue | 37,300 41,006 | (9.04) | 97,508 122,027 | (20.09) |
Cost of revenue | (34,330) (38,021) | (9.71) | (91,366) (114,095) | (19.92) |
Gross profit | 2,970 2,985 | (0.50) | 6,142 7,932 | (22.57) |
Other income including interest income Changes in fair value of | 14,745 3,990 | 269.55 | 27,411 24,872 | 10.21 |
short term investments (4,017) 705 n.m. (4,324) (6,844) (36.82)
General and administrative
expenses (6,005) (11,908) (49.57) (16,908) (30,074) (43.78)
Interest on borrowings (94) (3) n.m. (100) (557) (82.05) Share of associates'
results, net of tax 9,029 57,648 (84.34) 22,379 67,703 (66.95)
Share of joint ventures' results, net of tax | 5,050 5,961 | (15.28) 15,452 58,061 | (73.39) |
Profit from operations | 21,678 59,378 | (63.49) 50,052 121,093 | (58.67) |
before taxation | |||
Taxation | (1,188) (3,429) | (65.35) (3,373) (8,948) | (62.30) |
Profit net of taxation | 20,490 55,949 | (63.38) 46,679 112,145 | (58.38) |
Attributable to: | |||
Owners of the Company | 20,494 55,862 | (63.31) 46,459 111,975 | (58.51) |
Non-controlling interests | (4) 87 | n.m. 220 170 | 29.41 |
20,490 55,949 | (63.38) 46,679 112,145 | (58.38) |
n.m. - not meaningful
Statement of Comprehensive Income
Group Group
3rd Qtr 3rd Qtr 9 months 9 months
ended ended % ended ended % 31-Dec-2016 31-Dec-2015 Change 31-Dec-2016 31-Dec-2015 Change
$'000 $'000 $'000 $'000
Profit net of taxation 20,490 55,949 (63.38) 46,679 112,145 (58.38)
Other comprehensive income/ (expense):
Items that may be reclassified subsequently to profit or loss:
Currency translation adjustments on foreign subsidiaries, associates and
joint ventures 23,734 (15,044) n.m. 11,750 (621) n.m.
Available-for-sale financial assets
(6,872) | 4,992 | n.m. | (5,546) | 9,820 | n.m. |
- | (1,474) | n.m. | (3,336) | (1,698) | 96.47 |
net fair value changes
net fair value changes reclassified to profit or loss
Translation and other reserve of joint ventures transferred to profit or loss upon disposal (see note under
1(a)(v) on page 6) - - n.m. - (12,329) n.m. Share of other comprehensive
expense of associates and joint ventures | (4,535) | (9,670) | (53.10) | (11,419) | (14,559) | (21.57) |
Other comprehensive income /(expense), net of tax: | 12,327 | (21,196) | n.m. | (8,551) | (19,387) | (55.89) |
Total comprehensive income |
for the period 32,817 34,753 (5.57) 38,128 92,758 (58.90)
Total comprehensive income
/(expense) attributable to:
Owners of the Company | 33,060 34,480 | (4.12) 39,234 92,005 | (57.36) |
Non-controlling interests | (243) 273 | n.m. (1,106) 753 | n.m. |
32,817 34,753 | (5.57) 38,128 92,758 | (58.90) |
Note:
Currency translation adjustments on foreign subsidiaries, associates and joint ventures are mainly a result of the Group's exposure to the effects of fluctuations in foreign currency exchange rates in relation to Chinese Renminbi as the Group's investment properties and projects are situated in the People's Republic of China. There is also a small exposure to British pounds in respect of the projects in the United Kingdom. Whenever possible, the Group seeks to maintain a natural hedge through the matching of liabilities, including borrowings, against assets in the same currency. Share of other comprehensive income/(expense) of associates and joint ventures mainly relate to similar currency translation adjustments.
Changes in fair value of available-for-sale financial assets mainly relate to fluctuations in the fair value of the Group's investment in Shui On Land Ltd, which is classified under Investments (Non- current assets).
1(a) (ii) Revenue
Revenue of the Group comprises sales of goods and services and net commission from concessionaires.
Revenue of the Group reported on a gross transaction basis, which includes the value of the overall activity of the Group based on the gross value achieved by the concessionaire on the sale, is presented as follows:-
Group | Group | ||
3rd Qtr 3rd Qtr | 9 months 9 months | ||
ended ended | % | ended ended | % |
31-Dec-2016 31-Dec-2015 | Change | 31-Dec-2016 31-Dec-2015 | Change |
$'000 $'000 | $'000 $'000 |
Retail | 56,620 | 65,144 | (13.08) | 146,889 189,938 | (22.66) |
Property | 1,605 | 1,927 | (16.71) | 4,901 6,740 | (27.28) |
58,225 | 67,071 | (13.19) | 151,790 196,678 | (22.82) |
1(a) (iii) Profit from operations before taxation is arrived at after accounting for:-
Cost of revenue and general and administrative expenses includes:-
Group Group
3rd Qtr 3rd Qtr 9 months 9 months
ended ended % ended ended % 31-Dec-2016 31-Dec-2015 Change 31-Dec-2016 31-Dec-2015 Change
$'000 $'000 $'000 $'000
Inventories recognised as an (21,606) (21,689) (0.38) (56,000) (62,670) (10.64) expense
Depreciation of plant and equipment | (386) | (629) | (38.63) | (1,262) | (2,277) | (44.58) |
Write-back/(allowance for) | 17 | (12) | n.m. | (533) | 93 | n.m. |
of obsolete inventories | ||||||
Inventories written down | (457) | (365) | 25.21 | (591) | (1,063) | (44.40) |
Rental expense | (6,012) | (7,355) | (18.26) | (17,541) | (22,846) | (23.22) |
Other income including interest income includes:-
Interest income | 3,591 | 4,597 | (21.88) | 8,047 | 8,724 | (7.76) |
Dividends from quoted | ||||||
investments | 1,054 | 184 | 472.83 | 2,815 | 3,529 | (20.23) |
Gain on disposal of
short term investments - 370 n.m. 857 563 52.22
- 1,656 | n.m. | 3,336 | 1,953 | 70.81 |
- 133 | n.m. | - | 4,430 | n.m. |
Gain on disposal of/distribution from available-for-sale investments
Gain on disposal of an investment property * Management fee income
from associates 250 286 (12.59) 695 718 (3.20)
Foreign exchange gain/(loss) 9,294 (3,935) n.m. 8,980 2,777 223.37
Foreign exchange gain realised on
liquidation of an associate - - n.m. 1,248 - n.m.
n.m. - not meaningful
* In the previous 9 months ended 31 December 2015, the gain on disposal of an investment property refers to the gain arising on the sale of Frontier Koishikawa Building being net proceeds over and above the valuation as at 31 March 2015.
1(a) (iv) Share of Associates' results (net of tax)
The Group's share of associates' results consists of:
Group Group
3rd Qtr 3rd Qtr 9 months 9 months
ended ended % ended ended % 31-Dec-2016 31-Dec-2015 Change 31-Dec-2016 31-Dec-2015 Change
$'000 $'000 $'000 $'000
| 22,601 | 95,777 | (76.40) | 31,994 | 86,940 | (63.20) |
investment properties | 2,336 | 5,241 | (55.43) | 20,037 | 25,897 | (22.63) |
- Negative goodwill | - | - | n.m. | - | 917 | n.m. |
- Taxation | (16,158) | (44,134) | (63.39) | (28,995) | (46,403) | (37.51) |
- Others | 250 764 | (67.28) (657) 352 | n.m. | |||
9,029 57,648 | (84.34) 22,379 67,703 | (66.95) | ||||
n.m. - not meaningful | ||||||
Note:
The Group, in 3QFY2017, equity accounted for Top Spring's latest available results, which were for the quarter ended 30 September 2016, after making adjustment for such gain or loss on properties under development for sale, already initially recognised in arriving at acquisition date fair value and for the effects of significant transactions or events that occur between 1 October 2016 and the reporting date of the Group.
1(a) (v) Share of Joint Ventures' results (net of tax)
Group 3rd Qtr ended
Group
% 9 months ended %
The Group's share of joint ventures' results consists of:
31-Dec-2016 31-Dec-2015 Change 31-Dec-2016 31-Dec-2015 Change
$'000 $'000 $'000 $'000
- Operating results | 8,408 8,738 (3.78) | 26,858 26,402 | 1.73 |
- Fair value loss on | |||
investment properties | (1,696) (996) 70.28 | (6,309) (5,136) | 22.84 |
- Non-operating results * | - - n.m. | - 53,747 | n.m. |
- Taxation * | (1,662) (1,781) (6.68) | (5,097) (16,952) | (69.93) |
5,050 5,961 (15.28) | 15,452 58,061 | (73.39) |
Note:
Revenue 12,581 23,364 (46.15) 56,590 64,165 (11.81) Direct expenses (4,476) (14,262) (68.62) (29,519) (36,738) (19.65)
8,105 | 9,102 | (10.95) | 27,071 | 27,427 | (1.30) |
960 | 555 | 72.97 | 1,993 | 55,284 | (96.39) |
Gross profit
Other income including interest income
Fair value loss on
investment properties (1,696) (996) 70.28 (6,309) (5,136) 22.84 General and administrative
expenses | (657) (917) | (28.35) | (2,206) | (2,556) | (13.69) |
Profit from operating | 6,712 7,744 | (13.33) | 20,549 | 75,019 | (72.61) |
activities | |||||
Interest on borrowings | - (2) | n.m. | - (6) | n.m. | |
Profit from operations | 6,712 7,742 | (13.30) | 20,549 75,013 | (72.61) | |
before taxation | |||||
Taxation | (1,662) (1,781) | (6.68) | (5,097) (16,952) | (69.93) | |
Profit net of taxation n.m. - not meaningful | 5,050 5,961 | (15.28) | 15,452 58,061 | (73.39) | |
Note:
Results of joint ventures include the results of Metro City, Metro Tower and The Crest.
* For the previous 9 months ended 31 December 2015, the non-operating results of joint ventures of $53.7 million refer to a divestment gain from the disposal of the Group's effective interest of 50% in the joint ventures owning EC Mall, Beijing, People's Republic of China in 1QFY2016. This included exchange difference on translation and other reserves of the joint ventures, totaling
$12.3 million, transferred to profit or loss upon disposal. The taxation charge included a tax expense incurred in respect of this divestment gain of $12.0 million.
Other expenses relating to this divestment, offset by realised exchange gains on repayment of shareholders' loans, totaling about $3.6 million are classified under general and administrative expenses of the Group of $30.1 million for the previous 9 months ended 31 December 2015.
The net gain on this divestment included for the 9 months ended 31 December 2015 was $38.1 million.
1(a) (vi) Taxation
Group Group
3rd Qtr 3rd Qtr 9 months 9 months
ended ended % ended ended % 31-Dec-2016 31-Dec-2015 Change 31-Dec-2016 31-Dec-2015 Change
$'000 $'000 $'000 $'000
Current Year Tax 232 383 (39.43) 1,102 6,137 (82.04)
Overprovision in respect
of prior year - - n.m. (12) (1) n.m.
Deferred Tax 953 3,046 (68.71) 2,280 2,806 (18.75)
Withholding Tax 3 - n.m. 3 6 (50.00)
1,188 3,429 (65.35) 3,373 8,948 (62.30)
n.m. - not meaningful
The tax charge of the Group for the period ended 31 December 2016, excluding share of results of associates and joint ventures which is already stated net of tax, is higher than that derived by applying the Singapore statutory income tax rate of 17% applicable to company profits, mainly due to deferred tax expense being withholding tax provided on undistributed profits of joint ventures and an associate and expenditure not deductible for tax purposes.
19,296 | - |
721 | 4 |
10,492 | 176 |
267 | - |
33,919 | - |
- | - |
493,606 | 4,357 |
558,301 | 4,537 |
- | - |
52,683 | 3,881 |
69,050 | - |
4,813 | 56 |
126,546 | 3,937 |
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
Balance Sheets as at | Group Company 31-Dec-2016 31-Mar-2016 31-Dec-2016 31-Mar-2016 | |
$'000 $'000 $'000 $'000 | ||
Non-current assets | ||
Plant and equipment | 4,564 4,872 80 58 | |
Investment properties | 106,173 106,653 - - | |
Subsidiaries | - - 17,790 17,790 | |
Amounts due from subsidiaries | - - 388,149 318,972 | |
Associates | 423,548 396,785 500 500 | |
Amounts due from associates | 112,741 70,266 - - | |
Joint ventures | 201,857 216,249 - - | |
Amounts due from joint ventures | 144,791 128,972 - - | |
Investments | 43,796 51,429 - - | |
1,037,470 975,226 406,519 337,320 | ||
Current assets | ||
Inventories | 19,721 - | |
Prepayments | 1,162 8 | |
Accounts and other receivables | 7,831 172 | |
Tax recoverable | - - | |
Short term investments | 44,418 - | |
Pledged fixed bank deposits | 64,278 - | |
Cash and cash equivalents | 368,504 18,805 | |
505,914 18,985 | ||
Current liabilities | ||
Bank borrowings | 34,632 - | |
Accounts and other payables | 46,457 15,943 | |
Amount due to an associate | 69,109 - | |
Provision for taxation | 5,160 75 | |
155,358 16,018 | ||
Net current assets | 350,556 431,755 600 2,967 | |
Non-current liabilities | ||
Amounts due to subsidiaries | - - 172,712 46,065 | |
Deferred income | 11,903 12,010 - - | |
Deferred taxation | 16,466 15,479 7 9 | |
(28,369) (27,489) (172,719) (46,074) | ||
Net assets | 1,359,657 1,379,492 234,400 294,213 | |
Equity attributable to owners of the Company | ||
Share capital | 169,717 | 169,717 169,717 169,717 |
Treasury shares | (1,768) | (1,768) (1,768) (1,768) |
Reserves | 1,188,969 | 1,207,698 66,451 126,264 |
1,356,918 | 1,375,647 234,400 294,213 | |
Non-controlling interests | 2,739 | 3,845 - - |
Total equity | 1,359,657 | 1,379,492 234,400 294,213 |
1(b) (ii) Aggregate amount of group's borrowings and debt securities
Amount repayable in one year or less, or on demand
As at 31-Dec-2016 | As at 31-Mar-2016 | ||
Secured | Unsecured | Secured | Unsecured |
34,632,000 | - | - | - |
Amount repayable after one year
As at 31-Dec-2016 | As at 31-Mar-2016 | ||
Secured | Unsecured | Secured | Unsecured |
- | - | - | - |
Subsidiaries:
Fixed deposits totaling S$64.3 million have been mortgaged to banks for banking facilities of GBP33.0 million granted to certain subsidiaries. Total loans drawn on such facilities as at 31 December 2016 amounted to GBP19.5 million (equivalent to S$34.6 million).
1(c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year
Consolidated Statement of Cash Flows for the period ended
Group Group
3rd Qtr 3rd Qtr 9 months 9 months ended ended ended ended
31-Dec-2016 31-Dec-2015 31-Dec-2016 31-Dec-2015
(restated) (restated)
$'000 $'000 $'000 $'000
Cash flows from operating activities Operating loss before reinvestment in working capital | (922) | (8,690) | (6,413) | (10,997) |
Decrease/(increase) in inventories | 575 | 2,240 | (1,549) | 4,967 |
Decrease in accounts and other receivables | 14 | 3,089 | 2,489 | 1,915 |
Increase/(decrease) in accounts and other payables | 3,397 | 7,454 | (6,227) | (2,316) |
Cash from/(used in) operations | 3,064 | 4,093 | (11,700) | (6,431) |
Interest expense paid | (94) | (3) | (100) | (557) |
Interest income received | 2,107 | 2,181 | 5,397 | 6,308 |
Income taxes paid | (288) | (525) | (968) | (5,345) |
Net cash flows from/(used in) operating activities | 4,789 | 5,746 | (7,371) | (6,025) |
Cash flows from investing activities Purchase of plant & equipment | (551) | (118) | (1,019) | (371) |
Decrease/(increase) in investments | 249 | (813) | 2,142 | 488 |
Purchase of short term investments | - | - | (19,999) | (2,321) |
Proceeds from liquidation of associates | - | - | 128 | - |
Proceeds from disposal of an investment property | - | 131 | - | 60,233 |
Proceeds from disposal of plant and equipment | - | - | 41 | 217 |
Proceeds from disposal of short term investments Proceeds from disposal of/distribution from | 3 | 370 | 6,034 | 8,727 |
available-for-sale investments | - | 3,630 | 3,336 | 4,438 |
Investment in associates | (6,530) | - | (15,442) | (30,908) |
Increase/(decrease) in amount due to an associate | 206 | (26,185) | 389 | (37,276) |
(Increase)/decrease in amounts due from associates | (52,034) | (138) | (42,597) | 11,955 |
(Increase)/decrease in amounts due from joint ventures | (6,726) | (1,543) | (15,473) | 75,237 |
Dividends received from quoted investments | 1,054 | 184 | 2,815 | 3,529 |
Dividends received from an associate | 619 | - | 13,642 | 24,151 |
Dividends received from joint ventures | 3,480 | 1,414 | 27,804 | 136,919 |
Changes in pledged fixed bank deposits | (29,178) | 28,951 | (64,278) | 28,849 |
Currency realignment | 1,952 | (109) | 811 | 1,817 |
Net cash flows (used in)/generated from investing activities | (87,456) | 5,774 | (101,666) | 285,684 |
Cash flows from financing activities | ||||
Drawdown of bank borrowings | 24,930 | - | 34,588 | - |
Repayment of bank borrowings | - | (29,244) | - | (60,357) |
Dividend paid | - | - | (57,963) | (49,682) |
Currency realignment | 44 | (681) | 44 | 918 |
Net cash flows generated from/(used in) financing activities | 24,974 | (29,925) | (23,331) | (109,121) |
Net (decrease)/increase in cash and cash equivalents | (57,693) | (18,405) | (132,368) | 170,538 |
Effect of exchange rate changes in cash and cash equivalents | 8,234 | (4,582) | 7,266 | (2,268) |
Cash & cash equivalents at beginning of financial period | 417,963 | 541,244 | 493,606 | 349,987 |
Cash & cash equivalents at end of financial period 368,504 518,257 368,504 518,257
Consolidated Statement of Cash Flows for the period ended (Cont'd)
Reconciliation between profit from operations before taxation and operating cash flows before changes in working capital:
Group Group
3rd Qtr 3rd Qtr 9 months 9 months ended ended ended ended
31-Dec-2016 31-Dec-2015 31-Dec-2016 31-Dec-2015
(restated) (restated)
$'000 $'000 $'000 $'000
Profit from operations before taxation | 21,678 | 59,378 | 50,052 | 121,093 |
Adjustments for: | ||||
Interest expense | 94 | 3 | 100 | 557 |
Depreciation of plant and equipment | 386 | 629 | 1,262 | 2,277 |
Share of results of associates | (9,029) | (57,648) | (22,379) | (67,703) |
Share of results of joint ventures | (5,050) | (5,961) | (15,452) | (58,061) |
Interest and investment income | (4,645) | (4,781) | (10,862) | (12,253) |
Inventories written down | 457 | 365 | 591 | 1,063 |
(Write-back of)/allowance for obsolete inventories | (17) | 12 | 533 | (93) |
Write-back of doubtful debts | - | - | (2) | - |
Plant and equipment written off | 64 | 24 | 65 | 118 |
Gain on disposal of an investment property | - | (133) | - | (4,430) |
Gain on disposal of plant and equipment | - | - | (41) | (217) |
Changes in fair value of short term investments | 4,017 | (705) | 4,324 | 6,844 |
Gain on disposal of short term investments | - | (370) | (857) | (563) |
Gain on disposal of/distribution from | ||||
available-for-sale investments | - | (1,656) | (3,336) | (1,953) |
Foreign exchange adjustments | (8,877) | 2,153 | (10,411) | 2,324 |
Operating loss before reinvestment in working capital
(922) (8,690) (6,413) (10,997)