KEONG HONG HOLDINGS LIMITED
(Incorporated in the Republic of Singapore)
(Company Registration No.: 200807303W)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
KEONG HONG HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
TABLE OF CONTENTS | ||
A. | Condensed interim consolidated statement of profit or loss and other comprehensive income | 1 |
B. | Condensed interim statements of financial position | 3 |
C. | Condensed interim statements of changes in equity | 5 |
D. | Condensed interim consolidated statement of cash flows | 8 |
E. | Notes to the condensed consolidated financial statements | 10 |
F. | Other information required by Listing Rule Appendix 7.2 | 25 |
KEONG HONG HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
- CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
The Group | |||||||
Six months | Six months | Full year | Full year | ||||
ended 30 | ended 30 | ended 30 | ended 30 | ||||
September | September | September | September | ||||
2024 | 2023 | Change | 2024 | 2023 | Change | ||
(Restated) | (Restated) | ||||||
Note | S$'000 | S$'000 | % | S$'000 | S$'000 | % | |
Revenue | 4 | 94,639 | 71,053 | 33.2 | 176,561 | 199,789 | (11.6) |
Cost of sales | (92,098) | (96,361) | (4.4) | (176,989) | (226,155) | (21.7) | |
Gross (loss)/profit | 2,541 | (25,308) | n.m. | (428) | (26,366) | (98.4) | |
Other income | 4,495 | 4,612 | (2.5) | 8,739 | 16,892 | (48.3) | |
Administrative expenses | (10,877) | (4,716) | >100 | (18,310) | (18,998) | (3.6) | |
Reversal of loss allowance/(loss allowance) on | |||||||
financial assets | |||||||
- Trade and other receivables | (284) | (794) | (64.2) | 438 | (662) | n.m. | |
- Contract assets | 18 | (193) | n.m. | 283 | 714 | (60.4) | |
- Long-term interests | 23,285 | (8,532) | n.m. | 23,285 | (8,532) | n.m. | |
- Financial guarantee contracts | (187) | 205 | n.m. | (187) | 205 | n.m. | |
Finance costs | (923) | (1,966) | (53.1) | (2,138) | (4,093) | (47.8) | |
Other expenses | - | (1,746) | n.m. | - | (1,746) | n.m. | |
Share of results of joint ventures, net of tax | 86 | (26) | n.m. | 44 | 300 | (85.3) | |
Share of results of associates, net of tax | (7,550) | (5,676) | 33.0 | (10,642) | (8,362) | 27.3 | |
Profit/(Loss) before income tax | 6 | 10,604 | (44,140) | n.m. | 1,084 | (50,648) | n.m. |
Income tax expense | 7 | - | (838) | n.m. | - | (568) | n.m. |
Profit/(loss) for the period/year | 10,604 | (44,978) | n.m. | 1,084 | (51,216) | n.m. | |
Other comprehensive income: | |||||||
Items that may be reclassified subsequently to profit or loss: | |||||||
Exchange differences on translating | |||||||
foreign operations | 2,720 | (1,373) | n.m. | 3,248 | 1,582 | >100 | |
Items that may not be reclassified subsequently to profit or loss: | |||||||
Fair value gain/(loss) on financial | |||||||
assets at FVTOCI | (240) | (709) | (66.1) | (90) | (649) | (86.1) |
Other comprehensive income for the period/year, net of tax
Total comprehensive income for the period/year
Profit/(loss) attributable to: Owners of the company Non-controllinginterests
2,480 | (2,082) | n.m. | 3,158 | 933 | >100 |
13,084 | (47,060) | n.m. | 4,242 | (50,283) | n.m. |
10,604 | (44,326) | n.m. | 1,084 | (49,900) | n.m. |
- | (652) | n.m. | - | (1,316) | n.m. |
10,604 | (44,978) | n.m. | 1,084 | (51,216) | n.m. |
Total comprehensive loss attributable to Owners of the company Non-controllinginterests
13,084 | (46,408) | n.m. | 4,242 | (48,967) | n.m. |
- | (652) | n.m. | - | (1,316) | n.m. |
13,084 | (47,060) | n.m. | 4,242 | (50,283) | n.m. |
Profit/(loss) per share (cents) | |||||
∙Basic | 9 | 4.51 | (18.86) | 0.46 | (21.23) |
∙Diluted | 9 | 4.51 | (18.86) | 0.46 | (21.23) |
1
KEONG HONG HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
-
CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (continued)
Additional notes - Other income of S$8.7 million (FY2023: S$16.9 million) included gain on disposal of investment properties of nil (FY2023: S$7.8 million).
- Administrative expenses of S$18.3 million (FY2023: S$19.0 million) included net foreign exchange loss of S$6.0 million (FY2023: S$4.6 million) that is mainly unrealised.
- Reversal of loss allowance / (loss allowance) onlong-term interests of S$23.3 million (FY2023: (S$8.5 million)) related to reversal of impairment loss on investment in an associate determined based on valuation of its fair value.
- Restatement- The Group has restated its condensed interim consolidated statement of profit and loss and other comprehensive income, for the 6 months financial period and full year ended 30 September 2023, and the statement of financial position, condensed interim consolidated statements of changes in equity, and condensed interim consolidated statements of cash flows as at 30 September 2023 in order to remedied ACRA's findings on its review of the Group's FY2022 financial statements (see announcement dated 25 October 2024).
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KEONG HONG HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
B. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||
The Group | The Company | |||||
30 | 30 | 1 | 30 | 30 | ||
September | September | October | September | September | ||
2024 | 2023 | 2022 | 2024 | 2023 | ||
(Restated) | (Restated) | |||||
Note | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | |
Non-current assets | ||||||
Property, plant and equipment | 11 | 11,218 | 13,180 | 15,140 | - | - |
Right-of-use assets | 4,391 | 6,636 | 6,805 | - | - | |
Investment properties | 12 | - | - | 16,910 | - | - |
Investments in subsidiaries | - | - | - | 21,139 | 21,139 | |
Investments in associates | 26,480 | 46,105 | 65,351 | 7,123 | 7,123 | |
Investments in joint ventures | 4,453 | 6,181 | 6,717 | - | - | |
Intangible assets | 13 | 43 | 142 | 165 | - | - |
Financial assets at FVTOCI | 14 | 2,385 | 2,475 | 2,414 | 2,385 | 2,475 |
Deferred tax assets | 28 | 28 | 70 | - | - | |
Total non-current assets | 48,998 | 74,747 | 113,572 | 30,647 | 30,737 | |
Current assets | ||||||
Inventories | - | - | 671 | - | - | |
Trade and other receivables | 60,434 | 67,714 | 95,558 | 29,998 | 12,414 | |
Contract assets | 28,754 | 22,347 | 38,514 | - | - | |
Prepayments | 173 | 190 | 1,262 | 18 | 17 | |
Tax recoverable | - | 1,323 | - | - | - | |
Fixed deposits | 2,964 | 2,883 | 4,820 | 1,505 | - | |
Cash and bank balances | 18,811 | 11,760 | 20,097 | 214 | 733 | |
111,136 | 106,217 | 160,922 | 31,735 | 13,164 | ||
Non-current assets classified as held | ||||||
for sale | 34,117 | - | - | - | - | |
Total current assets | 145,253 | 106,217 | 160,922 | 31,735 | 13,164 | |
Total assets | 194,251 | 180,964 | 274,494 | 62,382 | 43,901 | |
Equity | ||||||
Share capital | 15 | 25,048 | 25,048 | 25,048 | 25,048 | 25,048 |
Treasury shares | 15 | (3,303) | (3,303) | (3,303) | (3,303) | (3,303) |
Share option reserve | 2,041 | 2,041 | 2,041 | 2,041 | 2,041 | |
Foreign currency translation reserve | 3,451 | 203 | (1,379) | - | - | |
Merger reserve | (4,794) | (4,794) | (4,794) | - | - | |
Fair value reserve | 28,102 | 28,192 | 28,841 | (4,440) | (4,350) | |
Other reserve | 1,125 | 1,125 | 1,125 | - | - | |
Retained earnings | 3,831 | 2,747 | 52,647 | 28,654 | 10,618 | |
Equity attributable to owners of the | 55,501 | 51,259 | 100,226 | 48,000 | 30,054 | |
company | ||||||
Non-controlling interests | - | - | (1,755) | - | - | |
Total equity | 55,501 | 51,259 | 98,471 | 48,000 | 30,054 | |
Non-current liabilities | ||||||
Trade and other payables | 16 | 17,636 | 16,401 | 14,644 | 12,750 | 12,750 |
Bank borrowings | 17 | 4,353 | 6,201 | 7,627 | - | - |
Lease liabilities | 4,120 | 4,649 | 4,960 | - | - | |
Provisions | 512 | 512 | 512 | - | - | |
Deferred tax liabilities | 1 | 1 | 1 | - | - | |
Total non-current liabilities | 26,622 | 27,764 | 27,744 | 12,750 | 12,750 |
- Please refer to note on Restatementon page 2
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KEONG HONG HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
B. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (continued) | ||||||
The Group | The Company | |||||
30 | 30 | 1 | 30 | 30 | ||
September | September | October | September | September | ||
2024 | 2023 | 2022 | 2024 | 2023 | ||
(Restated) | (Restated) | |||||
Note | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | |
Current liabilities | ||||||
Contract liabilities | 12,280 | 3,155 | 997 | - | - | |
Trade and other payables | 79,462 | 61,720 | 70,749 | 1,632 | 1,097 | |
Bank borrowings | 17 | 9,855 | 19,859 | 21,054 | - | - |
Lease liabilities | 635 | 2,294 | 1,993 | - | - | |
Medium term notes | 17 | - | - | 35,228 | - | - |
Provisions | 8,070 | 12,967 | 15,942 | - | - | |
Current income tax payable | 1,826 | 1,946 | 2,316 | - | - | |
Total current liabilities | 112,128 | 101,941 | 148,279 | 1,632 | 1,097 | |
Total liabilities | 138,750 | 129,705 | 176,023 | 14,382 | 13,847 | |
Total equity and liabilities | 194,251 | 180,964 | 274,494 | 62,382 | 43,901 |
- Please refer to note on Restatementon page 2
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KEONG HONG HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
C. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |||||||||||||
Foreign | Equity | ||||||||||||
Share | currency | Fair | attributable | Non- | |||||||||
Share | Treasury | option | translation | Merger | value | Other | Retained | to owners of | controlling | ||||
The Group | capital | shares | reserve | reserve | reserve | reserve | reserve | earnings | the company | interests | Total | ||
S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | |||
Full year ended 30 September 2024 | |||||||||||||
Balance at 1 October 2023, as previously reported | 25,048 | (3,303) | 2,041 | 203 | (4,794) | (23,999) | 1,125 | 68,090 | 64,411 | - | 64,411 | ||
Prior year restatements | - | - | - | - | - | 52,191 | - | (65,343) | (13,152) | - | (13,152) | ||
Balance at 1 October 2023, as restated | 25,048 | (3,303) | 2,041 | 203 | (4,794) | 28,192 | 1,125 | 2,747 | 51,259 | - | 51,259 | ||
Profit for the financial year | - | - | - | - | - | - | - | 1,084 | 1,084 | - | 1,084 | ||
Other comprehensive income for the financial year: | |||||||||||||
Exchange differences on translating foreign operations | - | - | - | 3,248 | - | - | - | - | 3,248 | - | 3,248 | ||
Fair value loss on financial assets at FVTOCI | - | - | - | - | - | (90) | - | - | (90) | - | (90) | ||
Total comprehensive income for the financial year | - | - | - | 3,248 | - | (90) | - | 1,084 | 4,242 | - | 4,242 | ||
Transactions with company, recognised directly in equity | |||||||||||||
Liquidation of a subsidiary | - | - | - | - | - | - | - | - | - | - | - | ||
Balance at 30 September 2024 | 25,048 | (3,303) | 2,041 | 3,451 | (4,794) | 28,102 | 1,125 | 3,831 | 55,501 | - | 55,501 | ||
- Please refer to note on Restatementon page 2
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KEONG HONG HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
C. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (continued)
The Group
Full year ended 30 September 2023
Balance at 1 October 2022, as previously reported Prior year restatements
Balance at 1 October 2022, as restated
Loss for the financial year:
- As previously reported
- Prior year restatements
- As restated
Other comprehensive income for the financial year:
Exchange differences on translating foreign operations
Fair value gain/ (loss) on financial assets at FVTOCI:
- As previously reported
- Prior year restatements
- As restated
Total comprehensive income for the financial year
Foreign | Equity | |||||||||
Share | currency | Fair | attributable | Non- | ||||||
Share | Treasury | option | translation | Merger | value | Other | Retained | to owners of | controlling | |
capital | shares | reserve | reserve | reserve | reserve | reserve | earnings | the company | interests | Total |
S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 |
25,048 | (3,303) | 2,041 | (1,379) | (4,794) | (25,289) | 1,125 | 117,578 | 111,027 | (1,755) | 109,272 |
- | - | - | - | - | 54,130 | - | (64,931) | (10,801) | - | (10,801) |
25,048 | (3,303) | 2,041 | (1,379) | (4,794) | 28,841 | 1,125 | 52,647 | 100,226 | (1,755) | 98,471 |
- | - | - | - | - | - | - | (49,488) | (49,488) | (1,316) | (50,804) |
- | - | - | - | - | - | - | (412) | (412) | - | (412) |
- | - | - | - | - | - | - | (49,900) | (49,900) | (1,316) | (51,216) |
- | - | - | 1,582 | - | - | - | - | 1,582 | - | 1,582 |
- | - | - | - | - | 1,290 | - | - | 1,290 | - | 1,290 |
- | - | - | - | - | (1,939) | - | - | (1,939) | - | (1,939) |
- | - | - | - | - | (649) | - | - | (649) | - | (649) |
- | - | - | 1,582 | - | (649) | - | (49,900) | (48,967) | (1,316) | (50,283) |
Transactions with company, recognised directly in equity | ||||||||||||
Liquidation of a subsidiary | - | - | - | - | - | - | - | - | - | 3,071 | 3,071 | |
Balance at 30 September 2023 | 25,048 | (3,303) | 2,041 | 203 | (4,794) | 28,192 | 1,125 | 2,747 | 51,259 | - | 51,259 | |
- Please refer to note on Restatementon page 2
6
KEONG HONG HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
C. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (continued) | ||||||||
Share | ||||||||
Share | Treasury | option | Fair value | Retained | ||||
The Company | Capital | shares | reserve | reserve | earnings | Total | ||
S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | |||
Full year ended 30 September 2024 | ||||||||
Balance at 1 October 2023 | 25,048 | (3,303) | 2,041 | (4,350) | 10,618 | 30,054 | ||
Profit for the financial year | - | - | - | - | 18,036 | 18,036 | ||
Other comprehensive income for the financial year: | ||||||||
Fair value loss on financial assets at FVTOCl | - | - | - | (90) | - | (90) | ||
Total comprehensive income for the financial year | - | - | - | (90) | 18,036 | 17,946 | ||
Balance at 30 September 2024 | 25,048 | (3,303) | 2,041 | (4,440) | 28,654 | 48,000 | ||
Full year ended 30 September 2023 | ||||||||
Balance at 1 October 2022 | 25,048 | (3,303) | 2,041 | (4,410) | (10,341) | 9,035 | ||
Profit for the financial year | - | - | - | - | 20,959 | 20,959 | ||
Other comprehensive income for the financial year: | ||||||||
Fair value gain on financial assets at FVTOCl | - | - | - | 60 | - | 60 | ||
Total comprehensive income for the financial year | - | - | - | 60 | 20,959 | 21,019 | ||
Balance at 30 September 2023 | 25,048 | (3,303) | 2,041 | (4,350) | 10,618 | 30,054 |
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KEONG HONG HOLDINGS LIMITED AND ITS SUBSIDIARIES
FOR THE SIX MONTHS AND FULL YEAR ENDED 30 SEPTEMBER 2024
D. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
The Group | ||||
Full year | Full year | |||
ended | ended | |||
30 September | 30 September | |||
2024 | 2023 | |||
(Restated) | ||||
Note | S$'000 | S$'000 | ||
Operating activities | ||||
Profit/(Loss) before income tax | 1,084 | (50,648) | ||
Adjustments for: | ||||
(Reversal of loss allowance)/loss allowance on financial assets | ||||
- Trade and other receivables | (438) | 662 | ||
- Contract assets | (283) | (714) | ||
- Long term interests | (23,285) | 8,532 | ||
- Financial guarantee contracts | 187 | (205) | ||
Loss on liquidation of a subsidiary | - | 1,746 | ||
Amortisation of intangible assets | 13 | 99 | 160 | |
Depreciation of investment properties | 12 | - | 166 | |
Depreciation of property, plant and equipment | 2,382 | 2,384 | ||
Depreciation of right-of-use assets | 2,415 | 2,513 | ||
Gain on disposal of investment properties | - | (7,755) | ||
Gain on disposal of plant and equipment | - | (108) | ||
Reversal of loss allowance for inventory obsolescence | - | (12) | ||
Interest income | (6,344) | (6,749) | ||
Interest expense | 2,138 | 4,093 | ||
(Decrease)/increase in provisions | ||||
- Provision for onerous contract | (4,897) | (4,256) | ||
- Provision for warranty | - | (619) | ||
- Provision for restatement cost | - | 1,900 | ||
Loss on unrealised foreign exchange | 6,047 | 4,626 | ||
Share of results of joint ventures | (44) | (300) | ||
Share of results of associates | 10,642 | 8,362 | ||
Operating cash flows before working capital changes | (10,297) | (36,222) | ||
Working capital changes: | ||||
Inventories | - | 577 | ||
Trade and other receivables | (3,474) | 8,696 | ||
Prepayments | 17 | 859 | ||
Contract assets | (6,124) | 17,718 | ||
Contract liabilities | 9,125 | 2,158 | ||
Trade and other payables | 18,258 | (5,080) | ||
Cash generated from/(used in) operations | 7,505 | (11,294) | ||
Income tax refund/(paid) | 1,293 | (2,308) | ||
Net cash generated from/(used in) operating activities | 8,798 | (13,602) |
- Please refer to note on Restatementon page 2
8