ZHONGMIN BAIHUI RETAIL GROUP LTD.
(Incorporated in the Republic of Singapore)
(Company Registration No. 200411929C)
MATERIAL VARIANCES BETWEEN THE UNAUDITED FINANCIAL STATEMENTS AND AUDITED
FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020
The Board of Directors of Zhongmin Baihui Retail Group Ltd. (the "Company", and together with its subsidiaries, collectively, the "Group") refers to the announcement in relation to the unaudited financial statement for the financial year ended 31 December 2020 ("FY2020") released via SGXNet on 1 March 2021 (the "Unaudited Financial Statements").
Pursuant to Rule 704(6) of the Listing Manual of the Singapore Exchange Securities Trading Limited (the "SGX-ST"), the Board wishes to clarify the material variances between the audited financial statements of the Group for FY2020 (the "Audited Financial Statements") and the Unaudited Financial Statements following the finalisation of the audit.
The details of the material variances between the Audited Financial Statements and the Unaudited Financial Statements are set out in the Appendix of this announcement.
By Order of the Board
Lee Swee Keng
Executive Chairman
14 July 2021
Appendix
Consolidated Statement of Comprehensive Income for FY2020
Group | ||||
Audited | Unaudited | |||
Financial | Financial | |||
Statements Statements Variance | Note | |||
RMB'000 | RMB'000 | RMB'000 | ||
Revenue | 1,230,234 | 1,230,234 | - | |
Cost of sales | (946,928) | (946,928) | - | |
Gross profit | 283,306 | 283,306 | - | |
Other income | 94,260 | 94,260 | - | |
Interest income | 6,677 | 6,677 | - | |
Selling and distribution expenses | (199,440) | (199,440) | - | |
Finance costs | (15,005) | (15,005) | - | |
Impairment loss on financial assets | - | - | - | |
Administrative expenses | (100,768) | (100,402) | (366) | A |
Profit before taxation and share | 69,030 | 69,396 | (366) | |
of results of associates and joint | ||||
ventures | ||||
Share of results of joint ventures | (3,978) | (3,690) | (288) | B |
Share of results of associates | 12,872 | 12,872 | - | |
Profit before taxation | 77,924 | 78,578 | (654) | |
Income tax expense | (22,688) | (22,688) | - | |
Profit after taxation | 55,236 | 55,890 | (654) | |
Other comprehensive income: | ||||
Items that may be reclassified | ||||
subsequently to profit or loss | ||||
Currency translation loss | (532) | (532) | - | |
Other comprehensive income, net of tax | (532) | (532) | - | |
Total comprehensive income for the | ||||
for the period attributable to the | ||||
owners of the Company | 54,704 | 55,358 | (654) |
Consolidated Statement of Financial Position for FY2020
Group | Company | |||||||
Audited | Unaudited | Audited | Unaudited | |||||
Financial | Financial | Financial | Financial | |||||
Statements Statements Variance | Statements Statements Variance | Note | ||||||
RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | |||
Non-current assets | ||||||||
Property, plant and equipment | 151,569 | 141,094 | 10,475 | 29 | 29 | - | C | |
Right-of-use assets | 199,398 | 199,398 | - | 130 | 130 | - | ||
Intangible assets | 3,810 | 3,810 | - | - | - | - | ||
Investment in subsidiaries | - | - | - | 63,257 | 63,257 | - | ||
Investment in joint ventures | 8,554 | 8,842 | (288) | - | - | - | B | |
Investment in associates | 42,568 | 42,934 | (366) | - | - | - | A | |
Prepayments | 5,066 | - | 5,066 | - | - | - | C | |
Other receivables | 11,864 | 11,864 | - | 77 | 77 | - | ||
Deferred tax assets | 17,214 | 17,214 | - | 1 | 1 | - | ||
Other assets | 3,786 | 3,786 | - | - | - | - | ||
443,829 | 428,942 | 14,887 | 63,494 | 63,494 | - | |||
Current assets | ||||||||
Inventories | 159,544 | 159,544 | - | - | - | - | ||
Prepayments | 67,526 | 67,526 | - | 29 | 29 | - | ||
Trade and other receivables | 45,290 | 45,290 | - | - | - | - | ||
Amount due from a subsidiary | - | - | - | 65,473 | 65,473 | - | ||
Amount due from associates | 41,400 | 41,400 | - | - | - | - | ||
Amount due from related parties | 10,364 | 10,364 | - | - | - | - | ||
Cash and cash equivalents | 324,346 | 339,790 | (15,444) | 15,293 | 15,293 | - | C | |
648,470 | 663,914 | (15,444) | 80,795 | 80,795 | - | |||
Less: Current liabilities | ||||||||
Loans and borrowings | 2,572 | 2,572 | - | 2,572 | 2,572 | - | ||
Trade and other payables | 429,703 | 429,606 | 97 | - | - | - | C | |
Lease liabilities | 62,783 | 62,783 | - | 137 | 137 | - | ||
Other liabilities | 38,871 | 38,871 | - | 2,858 | 2,858 | - | ||
Amount due to related parties | 68,885 | 68,885 | - | - | - | - | ||
Income tax payable | 20,175 | 20,175 | - | - | - | - | ||
622,989 | 622,892 | 97 | 5,567 | 5,567 | - | |||
Net current assets | 25,481 | 41,022 | (15,541) | 75,228 | 75,228 | - | ||
Non-current liabilities | ||||||||
Loans and borrowings | 61,620 | 61,620 | - | 61,620 | 61,620 | - | ||
Lease liabilities | 180,022 | 180,022 | - | - | - | - | ||
Deferred tax liabilities | 14,521 | 14,521 | - | 10,821 | 10,821 | - | ||
256,163 | 256,163 | - | 72,441 | 72,441 | - | |||
Net assets | 213,147 | 213,801 | (654) | 66,281 | 66,281 | - | ||
Equity attributable to the holders | ||||||||
of the Company | ||||||||
Share capital | 67,148 | 67,148 | - | 67,148 | 67,148 | - | ||
Treasury shares | (25,031) | (25,031) | - | (25,031) | (25,031) | - | ||
Statutory common reserve | 32,796 | 32,796 | - | - | - | - | ||
Currency translation reserve | (290) | (290) | - | (299) | (299) | - | ||
Revenue reserve | 138,524 | 139,178 | (654) | 24,463 | 24,463 | - | A, B | |
Total equity | 213,147 | 213,801 | (654) | 66,281 | 66,281 | - |
Consolidated Statement of Cash Flows for FY2020
Group | ||||
Audited | Unaudited | |||
Financial | Financial | |||
Statements Statements | Variance | Note | ||
RMB'000 | RMB'000 | RMB'000 | ||
Cash flows from operating activities | ||||
Profit/(loss) before taxation | 77,924 | 78,578 | (654) | |
Adjustments for: | ||||
Depreciation of property, plant and equipment | 12,284 | 12,284 | - | |
Depreciation of right-of-use assets | 66,641 | 66,641 | - | |
Impairment on right-of-use assets | 6,151 | 6,151 | - | |
Net (gain)/loss on disposal of property, plant and equipment | (6) | (6) | - | |
Amortisation of step rental income | 132 | 132 | - | |
Accrued step rental income written off | 822 | 822 | - | |
Rent concession | (7,110) | (7,110) | - | |
Interest income | (6,677) | (6,677) | - | |
Finance costs | 15,005 | 15,005 | - | |
Share of results of joint venture | 3,978 | 3,690 | 288 | B |
Share of results of associates | (12,872) | (12,872) | - | |
Unrealised exchange difference | (1,490) | (1,490) | - | |
Operating cash flows before changes in working capital | 154,782 | 155,148 | (366) | |
(Increase)/decrease in inventories | (41,740) | (41,740) | - | |
(Increase)/decrease in prepayments | (53,570) | (53,570) | - | |
Increase in trade and other receivables | (29,067) | (29,067) | - | |
Increase in trade and other payables | 110,999 | 110,902 | 97 | C |
Cash flows generated from operation | 141,404 | 141,673 | (269) | |
Interest received | 5,380 | 5,380 | - | |
Interest paid | - | (1,587) | 1,587 | D |
Tax paid | (13,444) | (13,444) | - | |
Net cash flows generated from operating activities | 133,340 | 132,022 | 1,318 | |
Cash flows from financing activities | ||||
Dividends paid | (24,059) | (24,059) | - | |
Interest on lease liabilities paid | (13,034) | (13,034) | - | |
Interest paid on loans and bonds | (1,587) | - | (1,587) | D |
Purchase of treasury shares | (178) | (178) | - | |
Proceeds from loans and borrowings | 65,010 | 65,010 | - | |
Repayment of lease liabilities | (68,897) | (68,897) | - | |
Net cash flows used in financing activities | (42,745) | (41,158) | (1,587) | |
Cash flows from investing activities | ||||
Dividend income | 4,051 | 3,685 | 366 | A |
Purchases of property, plant and equipment | (14,148) | (3,673) | (10,475) | C |
(Investment in)/disposal of joint ventures | (9,000) | (9,000) | - | |
Amount due from associates | (11,700) | (11,700) | - | |
Prepayments | (5,066) | - | (5,066) | C |
Proceeds from disposal of property, plant and equipment | 15 | 15 | - | |
Bank deposit pledged | 10,000 | 10,000 | - | |
Net cash flows used in investing activities | (25,848) | (10,673) | (15,175) | |
Net increase in cash and cash equivalents | 64,747 | 80,191 | (15,444) | |
Effect of exchange rate changes on cash and cash equivalents | (442) | (442) | - | |
Cash and cash equivalents at beginning of financial period | 207,024 | 207,024 | - | |
Cash and cash equivalents at end of financial period | 271,329 | 286,773 | (15,444) |
Notes:
- Variance is due to the adjustment of dividend income received from an associate. The previously recorded dividend income included administrative expenses of the associate to be borne by the Group, has been disclosed separately as "dividend income" and "administrative expenses".
- Variance is due to an adjustment to the share of pre-operating loss of a joint venture which was finalised only after the release of the Unaudited Financial Statements.
- Variance is due to recognition of renovation costs for new department stores which was finalised only after the release of the Unaudited Financial Statements.
- Variance is due to reclassification of interest paid on loans and bonds from operating activities to financing activities.