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Ying Li International Real Estate Limited
(Incorporated in the Republic of Singapore)
(Company Registration No.: 199106356W)
Unaudited Condensed Interim Consolidated Financial Statements
For the six months ended 30 June 2024
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Table of Contents
Page | ||
A. | Unaudited condensed interim consolidated statements of profit or loss and other | 3 |
comprehensive income | ||
B. | Unaudited condensed interim consolidated statements of financial position | 4 |
C. | Unaudited condensed interim consolidated statements of changes in equity | 5 |
D. | Unaudited condensed interim consolidated statements of cash flows | 7 |
E. | Notes to the unaudited condensed interim consolidated financial statements | 8 |
F. | Other information required by Listing Rule Appendix 7.2 | 19 |
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- Unaudited condensed interim consolidated statements of profit or loss and other comprehensive income
The Group | ||||
6 months ended | 6 months ended | Increase / | ||
Note | 30 June 2024 | 30 June 2023 | (Decrease) | |
RMB'000 | RMB'000 | % | ||
Revenue | 4.2 | 103,405 | 99,029 | 4.4% |
Cost of sales | (31,326) | (28,993) | 8.0% | |
Gross profit | 72,079 | 70,036 | 2.9% | |
Other income | 6.1 | 3,662 | 9,238 | (60.4%) |
Other (losses)/gains - net | 6.1 | (51,441) | 4,167 | n.m. |
Marketing expenses | (7,241) | (6,726) | 7.7% | |
Administrative expenses | (37,569) | (33,237) | 13.0% | |
Finance expenses | (79,067) | (77,138) | 2.5% | |
Loss before income tax | (99,577) | (33,660) | 195.8% | |
Income tax | 7 | - | - | - |
Net loss for the financial period | (99,577) | (33,660) | 195.8% | |
Other comprehensive income/(loss) | ||||
Item that may be reclassified to profit or loss in | ||||
subsequent period (net of tax) | ||||
Currency translation differences arising from | ||||
consolidation, net | 32,927 | (45,062) | n.m. | |
Total comprehensive loss for the period | (66,650) | (78,722) | (15.3%) | |
Net (loss)/profit attributable to: | ||||
Equity holders of the Company | (99,696) | (35,307) | 182.4% | |
Non-controlling interests | 119 | 1,647 | (92.8%) | |
(99,577) | (33,660) | 195.8% | ||
Total comprehensive (loss)/income attributable to: | ||||
Equity holders of the Company | (66,769) | (80,369) | (16.9%) | |
Non-controlling interests | 119 | 1,647 | (92.8%) | |
(66,650) | (78,722) | (15.3%) | ||
Loss per share for net loss for the period attributable | ||||
to equity holders of the Company | ||||
Basic loss per share (RMB per share) | 8(a) | (0.039) | (0.014) | |
Diluted loss per share (RMB per share) | 8(b) | (0.039) | (0.014) |
n.m. - not meaningful
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- Unaudited condensed interim consolidated statements of financial position
Note | |
ASSETS | |
Current assets: | |
Development properties | 11 |
Trade and other receivables | 10 |
Cash and cash equivalents |
Non-current assets:
The Group | The Company | ||
30 June | 31 December | 30 June | 31 December |
2024 | 2023 | 2024 | 2023 |
RMB'000 | RMB'000 | RMB'000 | RMB'000 |
946,237 | 951,564 | - | - |
364,550 | 370,725 | 2,632,188 | 2,592,800 |
242,973 | 318,370 | 61,735 | 14,071 |
1,553,760 | 1,640,659 | 2,693,923 | 2,606,871 |
Property, plant and equipment | 12 |
Investments in subsidiaries | 13 |
Investment properties | 15 |
Financial asset, at fair value | |
through profit or loss ("FVPL") | 14 |
Total assets | |
LIABILITIES | |
Current liabilities: | |
Trade and other payables | 16 |
Current income tax liabilities | |
Borrowings | 17 |
Provisions | 18 |
Non-current liabilities:
45,523 | 47,677 | 1,113 | 1,519 |
- | - | 3,116,474 | 3,116,474 |
4,367,977 | 4,371,400 | - | - |
- | - | - | - |
4,413,500 | 4,419,077 | 3,117,587 | 3,117,993 |
5,967,260 | 6,059,736 | 5,811,510 | 5,724,864 |
404,319 | 406,227 | 1,141,779 | 1,461,506 |
187,615 | 188,073 | - | - |
1,606,623 | 1,605,942 | 922,082 | 472,769 |
416,800 | 395,948 | - | - |
2,615,357 | 2,596,190 | 2,063,861 | 1,934,275 |
Other payable - related party
Deferred income tax liabilities
Borrowings
Total liabilities
NET ASSETS
EQUITY
Capital and reserves attributable to equity holders of the Company:
16
17
285,081 | 271,619 | 285,081 | 271,619 |
396,709 | 396,709 | - | - |
785,532 | 825,996 | - | - |
1,467,322 | 1,494,324 | 285,081 | 271,619 |
4,082,679 | 4,090,514 | 2,348,942 | 2,205,894 |
1,884,581 | 1,969,222 | 3,462,568 | 3,518,970 |
Share capital | 19 | 4,028,372 | 4,028,372 | 4,028,372 | 4,028,372 |
Reverse acquisition reserve | (2,034,754) | (2,034,754) | - | - | |
Statutory common reserve | 91,018 | 91,018 | - | - | |
Perpetual convertible securities | 878,970 | 878,970 | 878,970 | 878,970 | |
Currency translation reserve | (109,693) | (142,620) | (50,166) | (59,579) | |
Accumulated losses | (960,982) | (843,295) | (1,394,608) | (1,328,793) | |
Equity attributable to equity holders of the | |||||
Company | 1,892,931 | 1,977,691 | 3,462,568 | 3,518,970 | |
Non-controlling interests | (8,350) | (8,469) | - | - | |
TOTAL EQUITY | 1,884,581 | 1,969,222 | 3,462,568 | 3,518,970 |
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- Unaudited condensed interim consolidated statements of changes in equity
Attributable to equity holders of the Company | ||||||||||
Reverse | Statutory | Convertible | Perpetual | Currency | Non- | |||||
Share | acquisition | common | bonds | convertible | translation | Accumulated | controlling | Total | ||
The Group | capital | reserve | reserve | reserve | securities | reserve | losses | Sub-total | interests | equity |
RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | |
Balance at 1 January 2024 | 4,028,372 | (2,034,754) | 91,018 | - | 878,970 | (142,620) | (843,295) | 1,977,691 | (8,469) | 1,969,222 |
Total comprehensive | ||||||||||
income/(loss) for the period | - | - | - | - | - | 32,927 | (99,696) | (66,769) | 119 | (66,650) |
Distribution on perpetual | ||||||||||
convertible securities | - | - | - | - | - | - | (17,991) | (17,991) | - | (17,991) |
Balance at 30 June 2024 | 4,028,372 | (2,034,754) | 91,018 | - | 878,970 | (109,693) | (960,982) | 1,892,931 | (8,350) | 1,884,581 |
Balance at 1 January 2023 | 4,028,372 | (2,034,754) | 91,018 | 42,458 | 878,970 | (93,769) | (866,536) | 2,045,759 | (9,996) | 2,035,763 |
Total comprehensive | ||||||||||
(loss)/income for the period | - | - | - | - | - | (45,062) | (35,307) | (80,369) | 1,647 | (78,722) |
Distribution on perpetual | ||||||||||
convertible securities | - | - | - | - | - | - | (17,894) | (17,894) | - | (17,894) |
Balance at 30 June 2023 | 4,028,372 | (2,034,754) | 91,018 | 42,458 | 878,970 | (138,831) | (919,737) | 1,947,496 | (8,349) | 1,939,147 |
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- Unaudited condensed interim consolidated statements of changes in equity (continued)
Convertible | Perpetual | Currency | ||||
Share | bonds | convertible | translation | Accumulated | Total | |
The Company | capital | reserve | securities | reserve | losses | equity |
RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | |
Balance at 1 January 2024 | 4,028,372 | - | 878,970 | (59,579) | (1,328,793) | 3,518,970 |
Total comprehensive income/(loss) for the | ||||||
period | - | - | - | 9,413 | (47,824) | (38,411) |
Distribution on perpetual convertible securities | - | - | - | - | (17,991) | (17,991) |
Balance at 30 June 2024 | 4,028,372 | - | 878,970 | (50,166) | (1,394,608) | 3,462,568 |
Balance at 1 January 2023 | 4,028,372 | 42,458 | 878,970 | (41,098) | (1,337,504) | 3,571,198 |
Total comprehensive (loss)/income for the | ||||||
period | - | - | - | (13,259) | 14,135 | 876 |
Distribution on perpetual convertible securities | - | - | - | - | (17,894) | (17,894) |
Balance at 30 June 2023 | 4,028,372 | 42,458 | 878,970 | (54,357) | (1,341,263) | 3,554,180 |
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- Unaudited condensed interim consolidated statements of cash flows
The Group | |||
6 months ended | 6 months ended | ||
30 June 2024 | 30 June 2023 | ||
RMB'000 | RMB'000 | ||
Operating activities | |||
Loss before income tax | (99,577) | (33,660) | |
Adjustments for: | |||
Depreciation of property, plant and equipment | 2,131 | 2,140 | |
Interest expenses | 79,067 | 77,138 | |
Interest income | (1,951) | (7,945) | |
Provision on legal cases and penalties | 20,852 | 20,737 | |
Gain on disposal of property, plant and equipment | (8) | - | |
Gain on disposal of investment properties | (1,338) | (92) | |
Unrealised exchange differences | 28,324 | (4,658) | |
Operating cash flows before working capital changes | 27,500 | 53,660 | |
Development properties | 5,327 | 3,407 | |
Trade and other receivables | 6,175 | (702) | |
Trade and other payables | (2,220) | 9,098 | |
Cash generated from operations | 36,782 | 65,463 | |
Interest received | 1,951 | 7,945 | |
Income tax paid | - | (2) | |
Net cash generated from operating activities | 38,733 | 73,406 | |
Investing activities | |||
Purchase of property, plant and equipment | (28) | (58) | |
Proceeds from disposal of property, plant and equipment | 27 | - | |
Proceeds from disposal of investment properties | 4,761 | 272 | |
Net cash generated from investing activities | 4,760 | 214 | |
Financing activities | |||
(Increase)/decrease in restricted cash | (6,557) | 212,886 | |
Proceeds from borrowings | 430,000 | 941,592 | |
Interest paid | (53,949) | (71,880) | |
Repayment of borrowings | (492,037) | (709,627) | |
Repayment of bond notes | - | (215,912) | |
Net cash (used in)/generated from financing activities | (122,543) | 157,059 | |
Net (decrease)/increase in cash and cash equivalents | (79,050) | 230,679 | |
Effects of exchange rate changes on cash and cash equivalents | (2,904) | 1,818 | |
Cash and cash equivalents at beginning of the period | 266,751 | 111,822 | |
Cash and cash equivalents at end of period | 184,797 | 344,319 | |
Restricted bank balances | 58,176 | 46,065 | |
Cash and cash equivalents in the consolidated statements | |||
of financial position | 242,973 | 390,384 | |
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- Notes to the unaudited condensed interim consolidated financial statements
1. General information
Ying Li International Real Estate Limited (the "Company") is listed on the Mainboard of the Singapore Exchange Securities Trading Limited (the "Singapore Exchange" or "SGX-ST") and incorporated and domiciled in Singapore. These unaudited condensed interim consolidated financial statements as at and for the six months ended 30 June 2024 ("1H2024") comprise the Company and its subsidiaries (collectively, the "Group").
The principal activity of the Company is investment holding. The principal activities of its subsidiaries are:
- Property development;
- Mall and property management;
- Property consultancy, sale, marketing and management;
- Commercial property leasing services; and
- Others - Investment holding.
2. Basis of preparation
The unaudited condensed interim financial statements for 1H2024 have been prepared in accordance with SFRS(I) 1- 34 Interim Financial Reporting issued by the Accounting Standards Committee Singapore. The unaudited condensed interim financial statements do not include all the information required for a complete set of financial statements and should be read in conjunction with the Group's audited financial statements for the financial year ended 31 December 2023. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and its performance since the last annual financial statements for the financial year ended 31 December 2023.
The accounting policies adopted are consistent with those of the previous financial year which were prepared in accordance with SFRS(I)s, except for the adoption of new and amended standards as set out in Note 2.1.
The unaudited condensed interim financial statements are presented in Chinese Renminbi ("RMB") and all values are rounded to the nearest thousand ("RMB'000") as indicated.
The condensed interim financial statements have been prepared on a going concern basis as the directors have assessed that the Group and the Company would have the ability to meet the obligations for the next twelve months from the reporting date, taking into consideration available cash balances, profitability and cashflow of the Group's operations.
2.1. New and amended standards adopted by the Group
A number of amendments to standards have become applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting those standards.
2.2. Use of judgements, estimates and assumptions
In preparing the unaudited condensed interim financial statements, Management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
The significant judgements made by Management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the financial year ended 31 December 2023.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
- Valuation of investment properties
- Estimation of net realisable value for development properties
- Valuation of financial asset, at FVPL
- Assessment of expected credit loss ("ECL") of trade and other receivables
- Provision on litigation cases and penalties
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- Deferred income tax
- Classification of unquoted investment in limited partnership
3. Seasonal operations
The Group's businesses were not affected significantly by seasonal or cyclical factors during the financial period.
4. Segment and revenue information
The Group is organised into the following main business segments:
Property investment | : Leasing of investment properties to generate rental income, facilities management | |
income and holding of properties for capital appreciation | ||
Property development | : | Development and sales of residential, commercial and other types of properties and |
equity investment in property development companies | ||
Others | : | Mainly related with corporate office functions and investment holding |
These operating segments are reported in a manner consistent with the internal reporting provided to the executive committee for allocating resources and assessing performance. Interest income and interest expenses are not allocated to the operating segments for the financial period ended 30 June 2024 as they were no longer a measurement of the performance of the operating segments with the replacement of the majority of bank loans with loans from a subsidiary of controlling shareholder. Accordingly, the segment information regarding interest income and interest expenses for the financial period ended 30 June 2023 has been restated for comparative purpose.
4.1. | Reportable segments | ||||
Property | Property | ||||
investment | development | Others | Total | ||
RMB'000 | RMB'000 | RMB'000 | RMB'000 | ||
1 January 2024 to 30 June 2024 | |||||
Revenue | |||||
Total segment revenue | 96,224 | 7,181 | - | 103,405 | |
Segment results | 54,619 | (21,106) | (55,974) | (22,461) | |
Interest expenses | (79,067) | ||||
Interest income | 1,951 | ||||
Loss before income tax | (99,577) | ||||
Depreciation of property, plant and | |||||
equipment | - | - | 2,131 | 2,131 | |
As at 30 June 2024 | |||||
Segment assets | 4,383,150 | 1,280,854 | 303,256 | 5,967,260 | |
Segment assets includes: | |||||
Additions to: | |||||
- Property, plant and equipment | - | - | 28 | 28 | |
Segment liabilities | 1,142,143 | 749,628 | 2,190,908 | 4,082,679 |
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Property | Property | ||||||||
investment | development | Others | Total | ||||||
RMB'000 | RMB'000 | RMB'000 | RMB'000 | ||||||
1 January 2023 to 30 June 2023 | |||||||||
Revenue | |||||||||
Total segment revenue | 94,486 | 4,543 | - | 99,029 | |||||
Segment results | 52,048 | (9,611) | (6,904) | 35,533 | |||||
Interest expenses | (77,138) | ||||||||
Interest income | 7,945 | ||||||||
Loss before income tax | (33,660) | ||||||||
Depreciation of property, plant and | |||||||||
equipment | - | - | 2,140 | 2,140 | |||||
As at 30 June 2023 | |||||||||
Segment assets | 4,117,646 | 1,532,112 | 447,908 | 6,097,666 | |||||
Segment assets includes: | |||||||||
Additions to: | |||||||||
- Property, plant and equipment | - | - | 58 | 58 | |||||
Segment liabilities | 1,696,545 | 775,786 | 1,686,188 | 4,158,519 | |||||
4.2 | Disaggregation of Revenue | ||||||||
The Group | |||||||||
6 months ended | 6 months ended | ||||||||
30 June 2024 | 30 June 2023 | ||||||||
RMB'000 | RMB'000 | ||||||||
Property investment | |||||||||
Rental income - People's Republic of China ("PRC") | 96,224 | 94,486 | |||||||
Property development | |||||||||
Revenue from contracts with customers - PRC | |||||||||
- Sales of completed properties - at a point in time | 7,181 | 4,543 | |||||||
103,405 | 99,029 |