Guoco : GL Limited - Unaudited Financial Statement and Related Announcement for Half Year and Second Quarter Ended 31 December 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

OVERSEAS REGULATORY ANNOUNCEMENT

(This overseas regulatory announcement is issued pursuant to Rule 13.10(B) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.)

Please refer to the attached announcement on the next page.

As at the date of this announcement, the board of directors of Guoco Group Limited comprises Mr. Kwek Leng Hai as Executive Chairman; Mr. Tang Hong Cheong as President & CEO; Mr. Kwek Leng San as Non-executive Director and Mr. Roderic N. A. Sage, Mr. David Michael Norman and Mr. Huang Lester Garson, SBS, JP as Independent Non-executive Directors.

2/7/2020

Financial Statements and Related Announcement::Second Quarter and/ or Half Yearly Results

FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT::SECOND QUARTER AND/ OR HALF YEARLY RESULTS

Issuer & Securities

Issuer/ Manager

GL LIMITED

Securities

GL LIMITED - BMG392401094 - B16

Stapled Security

No

Announcement Details

Announcement Title

Financial Statements and Related Announcement

Date &Time of Broadcast

07-Feb-2020 17:43:33

Status

New

Announcement Sub Title

Second Quarter and/ or Half Yearly Results

Announcement Reference

SG200207OTHRQQR1

Submitted By (Co./ Ind. Name)

Susan Lim

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 attachment.

Additional Details

For Financial Period Ended

31/12/2019

Attachments

SGX-FS-Q2-2019Dec31.pdf

Total size =503K MB

https://links.sgx.com/1.0.0/corporate-announcements/BMVDVERQ96I44YFW/5e6ba123d512af59d948b5b89422a9efcb62a5ec14c57dceefebb9e… 1/1

Unaudited Financial Statement And Related Announcement For Half Year and Second Quarter Ended 31 December 2019

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

		Unaudited			Unaudited
		1st Half Year ended			2nd Quarter ended
		1 July to	1 July to	Favourable /		1 Oct to	1 Oct to	Favourable /
		31 Dec 2019	31 Dec 2018	(unfavourable)		31 Dec 2019	31 Dec 2018	(unfavourable)
		US$m	US$m	variance %		US$m	US$m	variance %
			(Re-presented)				(Re-presented)
Continuing operations
Revenue		193.3	191.0		1		97.8	95.1		3
Cost of sales		(85.2)	(78.8) ^ #	(8)		(43.1)	(39.2) ^ #	(10)
Gross profit		108.1	112.2		(4)		54.7	55.9		(2)
Other operating income		0.3	*		N.M.		0.2	*		N.M.
Administrative expenses		(43.5)	(60.0) ^ #	28		(22.3)	(30.3) ^ #	26
Reversal of impairment loss / (impairment loss)
on trade receivable		0.4	(0.9)		N.M.		0.6	(0.4)		N.M.
Other operating expenses		(1.4)	(0.3)		(367)		(0.8)	0.1		N.M.
Operating profit		63.9	51.0		25		32.4	25.3		28
Finance income		0.7	0.7		-		0.4	0.4		-
Finance costs		(25.9)	(6.8)		(281)		(11.9)	(3.0)		(297)
Net financing costs		(25.2)	(6.1)		(313)		(11.5)	(2.6)		(342)
Profit before tax		38.7	44.9		(14)		20.9	22.7		(8)
Income tax expense		(11.8)	(11.7)		(1)		(6.0)	(6.0)		-
Profit from continuing operations, net of tax		26.9	33.2		(19)		14.9	16.7		(11)
Discontinued operation
Loss from discontinued operation, net of tax		-	(0.8)		N.M.		-	(0.5)		N.M.
Profit for the period		26.9	32.4		(17)		14.9	16.2		(8)
Profit / (loss) attributable to:
Owners of the Company		26.9	32.4		(17)		14.9	16.2		(8)
Non-controlling interests		-	*		N.M.		-	*		N.M.
Profit for the period		26.9	32.4		(17)		14.9	16.2		(8)

^ Reclassification of hotel direct payroll from administrative expenses to cost of sales.

• Reclassification of hotel rental expense from cost of sales to administrative expenses for comparative purpose.

Note to Income Statement

		Unaudited			Unaudited
		1st Half Year ended			2nd Quarter ended
		1 July to	1 July to	Favourable /		1 Oct to	1 Oct to	Favourable /
		31 Dec 2019	31 Dec 2018	(unfavourable)		31 Dec 2019	31 Dec 2018	(unfavourable)
		US$m	US$m	variance %		US$m	US$m	variance %
Profit before tax is stated after (charging) / crediting:
Depreciation of hotels, property and equipment		(14.6)	(9.3)	(57)		(7.6)	(4.7)	(62)
Amortisation of intangible assets		(1.5)	(1.6)	6		(0.8)	(0.8)	-
Impairment loss on property and equipment		(0.8)	(0.3)	(167)		(0.8)	0.1	N.M.

• Amount less than US$0.1m Note: N.M. - not meaningful

Page 1 of 11

1(a)(ii) Statement of Comprehensive Income

		Unaudited			Unaudited
		1st Half Year ended			2nd Quarter ended
		1 July to	1 July to	Favourable /		1 Oct to	1 Oct to	Favourable /
		31 Dec 2019	31 Dec 2018	(unfavourable)		31 Dec 2019	31 Dec 2018	(unfavourable)
		US$m	US$m	variance %		US$m	US$m	variance %
Profit for the period		26.9	32.4	(17)		14.9	16.2		(8)
Other comprehensive income:
Items that will not be reclassified to profit or loss:
Change in fair value equity investments at fair value through other
comprehensive income		*	*	N.M.		*	*		N.M.
Items that are or may be reclassified subsequently to profit or loss:
Effective portion of changes in fair value of cash flow hedges, net of tax		*	2.1	N.M.		*	0.1		N.M.
Net change in fair value of cash flow hedges reclassified to profit or loss		1.0	(0.7)	N.M.		1.0	-	N.M.
Net exchange differences from consolidation of foreign operations		26.6	(29.9)	N.M.		45.2	(19.9)		N.M.
Other comprehensive income for the period, net of income tax		27.6	(28.5)	N.M.		46.2	(19.8)		N.M.
Total comprehensive income for the period		54.5	3.9	1,297		61.1	(3.6)		N.M.
Total comprehensive income attributable to:
- Owners of the Company
Continuing operations		54.6	4.3	1,170		61.3	(3.7)		N.M.
Discontinued operation		-	(0.5)	N.M.		-	-	N.M.
- Non-controlling interests		(0.1)	0.1	N.M.		(0.2)	0.1		N.M.
Total comprehensive income for the period		54.5	3.9	1,297		61.1	(3.6)		N.M.

• Amount less than US$0.1m Note: N.M. - not meaningful

Page 2 of 11

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

		GROUP		COMPANY
		Unaudited	Audited		Unaudited	Audited
		31 Dec 2019	30 June 2019		31 Dec 2019	30 June 2019
		US$m	US$m		US$m	US$m
ASSETS
Hotels, property and equipment		1,596.5	985.5		-	-
Intangible assets		61.9	63.5		-	-
Investments in subsidiaries		-	-		1,225.6	1,225.6
Pensions surplus		7.4	7.1		-	-
TOTAL NON-CURRENT ASSETS		1,665.8	1,056.1		1,225.6	1,225.6
Other investment		-	0.1		-	-
Corporate tax recoverable		-	1.1		-	-
Inventories		1.2	1.3		-	-
Development properties		184.8	184.7		-	-
Trade and other receivables		29.8	29.4		0.3	0.3
Derivative financial assets		-	0.3		-	0.3
Advances to subsidiaries		-	-		78.9	72.0
Cash and cash equivalents		74.0	95.1		10.0	38.3
TOTAL CURRENT ASSETS		289.8	312.0		89.2	110.9
TOTAL ASSETS		1,955.6	1,368.1		1,314.8	1,336.5
LIABILITIES
Loans and borrowings		179.4	209.7		-	-
Lease liabilities		728.2	-		-	-
Pension obligations		2.3	2.4		-	-
Deferred tax liabilities		14.7	13.9		-	-
Derivative financial liability		1.9	3.4		-	-
TOTAL NON-CURRENT LIABILITIES		926.5	229.4		-	-
Loans and borrowings		7.9	-		-	-
Lease liabilities		2.7	-		-	-
Provisions		6.1	5.5		-	-
Trade and other payables		57.6	58.5		0.6	0.8
Corporate tax payable		1.0	0.9		-	-
TOTAL CURRENT LIABILITIES		75.3	64.9		0.6	0.8
TOTAL LIABILITIES		1,001.8	294.3		0.6	0.8
NET ASSETS		953.8	1,073.8		1,314.2	1,335.7
SHARE CAPITAL AND RESERVES
Equity attributable to owners of the Company		956.4	1,076.3		1,314.2	1,335.7
Non-controlling interests		(2.6)	(2.5)		-	-
TOTAL EQUITY		953.8	1,073.8		1,314.2	1,335.7

Page 3 of 11

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 2019		As at 30 June 2019
Secured		Unsecured	Secured		Unsecured
US$m		US$m	US$m		US$m
-		7.9	-		-
Amount repayable after one year
As at 31 Dec 2019		As at 30 June 2019
Secured		Unsecured	Secured		Unsecured
US$m		US$m	US$m		US$m
74.2		105.2	71.9		137.8

Details of any collateral

As at 31 December 2019, the Group's unsecured borrowings that are repayable within one year was US$7.9 million, and after one year was US$105.2 million. The Group continues to have banking lines for its funding requirements.

The Group's secured borrowings as at 31 December 2019 of US$74.2 million and repayable after one year, are secured by a hotel owned by the Group with a net book value of US$128.6 million.

Page 4 of 11

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

	Unaudited		Unaudited
	1st Half Year ended		2nd Quarter ended
	1 July to	1 July to		1 Oct to	1 Oct to
	31 Dec 2019	31 Dec 2018		31 Dec 2019	31 Dec 2018
	US$m	US$m		US$m	US$m
		(Re-presented)			(Re-presented)
OPERATING ACTIVITIES
Profit before tax from continuing operations	38.7	44.9		20.9	22.7
Loss before tax from discontinued operation	-	(0.8)		-	(0.5)
Adjustments for non-cash items
Depreciation of hotels, property and equipment	14.6	9.3		7.6	4.7
Amortisation of intangible assets	1.5	1.6		0.8	0.8
(Reversal of impairment loss) / impairment loss
on trade receivable	(0.4)	0.9		(0.6)	0.4
Share option (benefits) / expenses	(0.5)	0.2		-	(0.5)
Impairment loss of property and equipment	0.8	0.3		0.8	(0.1)
Gain on disposal of property and equipment	-	*		-	*
Net financing costs	25.2	6.1		11.5	2.7
Net change in working capital items
Inventories and development properties	0.1	(0.3)		(0.1)	*
Trade and other receivables	0.1	19.8		(1.0)	14.6
Trade and other payables	(1.3)	(26.7)		(3.6)	(23.8)
Pension surplus and obligations	(0.1)	(0.3)		-	(0.2)
Provisions	0.6	-		(0.1)	-
Cash generated from operations	79.3	55.0		36.2	20.8
Interest received	0.4	0.5		0.3	0.3
Income tax paid	(10.5)	(4.1)		(10.2)	(0.6)
CASH FLOWS FROM OPERATING ACTIVITIES	69.2	51.4		26.3	20.5
INVESTING ACTIVITIES
Proceeds from disposal of hotels, property and equipment	-	*		-	*
Cash distribution from other investment	0.1	-		0.1	-
Acquisition of hotels, property and equipment	(15.0)	(20.4)		(8.6)	(10.3)
CASH FLOWS USED IN INVESTING ACTIVITIES	(14.9)	(20.4)		(8.5)	(10.3)
FINANCING ACTIVITIES
Repayment of long-term borrowings	(28.3)	(36.8)		-	-
Repayment of lease liabilities	(21.2)	-		(11.0)	-
Interest paid	(5.4)	(6.2)		(4.1)	(4.6)
Other finance costs paid	(0.6)	(0.1)		(0.3)	(0.1)
Realised exchange (loss) / gain on financial derivatives	(0.4)	0.2		(0.3)	0.2
Dividend paid to shareholders of the Company	(21.0)	(20.9)		(21.0)	(20.9)
CASH FLOWS USED IN FINANCING ACTIVITIES	(76.9)	(63.8)		(36.7)	(25.4)
NET DECREASEIN CASH AND CASH EQUIVALENTS	(22.6)	(32.8)		(18.9)	(15.2)
Cash and cash equivalents at the beginning of the year	95.1	105.4		90.4	87.2
Restricted cash	0.4	-		-	-
Effect of exchange rate fluctuations on cash held	1.1	(1.7)		2.5	(1.1)
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	74.0	70.9		74.0	70.9
* Amount less than US$0.1m	-			#REF!	-
	-

Page 5 of 11

1 (d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year

Statement of Changes in Equity - Group

						Capital
						Reserve	Equity
				Fair		Share	Compen-				Non-
	Share	Contributed	Translation	Value	Hedging	Based	sation	ESOS	Retained		Controlling	Total
	Capital	Surplus	Reserve	Reserve	Reserve	Payment	Reserve	Reserve	Earnings	Total	Interests	Equity
	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m
Balance at 1 July 2019	273.6	654.2	(301.6)	(0.9)	(2.5)	(1.6)	3.5	(46.2)	497.8	1,076.3	(2.5)	1,073.8
Effect on initial application of IFRS16	-	-	-	-	-	-	-	-	(153.0)	(153.0)	-	(153.0)
Adjusted balance at 1 July 2019	273.6	654.2	(301.6)	(0.9)	(2.5)	(1.6)	3.5	(46.2)	344.8	923.3	(2.5)	920.8
Profit / (loss) for the period	-	-	-	-	-	-	-	-	26.9	26.9	-	26.9
Other comprehensive income:
Effective portion of changes in fair
value of cash flow hedges, net of tax	-	-	-	-	*	-	-	-	-	*	-	*
Net change in fair value of cash flow
hedges reclassified to profit or loss	-	-	-	-	1.0	-	-	-	-	1.0	-	1.0
Net exchange differences from
consolidation of foreign operations	-	-	26.7	-	-	-	-	-	-	26.7	(0.1)	26.6
Change in fair value of equity investments
at fair value through other	-	-	-	*	-	-	-	-	-	*	-	*
comprehensive income
Total other comprehensive income,
net of tax	-	-	26.7	*	1.0	-	-	-	-	27.7	(0.1)	27.6
Total comprehensive income for
the period, net of tax	-	-	26.7	*	1.0	-	-	-	26.9	54.6	(0.1)	54.5
Transactions with owners, recorded
directly in equity:
Value of employee services received
for issue of share options	-	-	-	-	-	-	(0.5)	-	-	(0.5)	-	(0.5)
First and final dividend of SGD0.022
per share for the year ended
30 June 2019	-	-	-	-	-	-	-	-	(21.0)	(21.0)	-	(21.0)
Total transactions with owners	-	-	-	-	-	-	(0.5)	-	(21.0)	(21.5)	-	(21.5)
Balance at 31 Dec 2019	273.6	654.2	(274.9)	(0.9)	(1.5)	(1.6)	3.0	(46.2)	350.7	956.4	(2.6)	953.8
Balance at 1 July 2018	273.6	654.2	(250.8)	(0.8)	(3.5)	(1.6)	3.0	(46.2)	474.7	1,102.6	(2.6)	1,100.0
Profit / (loss) for the period	-	-	-	-	-	-	-	-	32.4	32.4	*	32.4
Other comprehensive income:
Effective portion of changes in fair
value of cash flow hedges, net of tax	-	-	-	-	2.1	-	-	-	-	2.1	-	2.1
Net change in fair value of cash flow
hedges reclassified to profit or loss	-	-	-	-	(0.7)	-	-	-	-	(0.7)	-	(0.7)
Net exchange differences from
consolidation of foreign operations	-	-	(30.0)	-	-	-	-	-	-	(30.0)	0.1	(29.9)
Change in fair value of equity investments
at fair value through other
comprehensive income	-	-	-	*	-	-	-	-	-	*	-	*
Total other comprehensive income,
net of tax	-	-	(30.0)	*	1.4	-	-	-	-	(28.6)	0.1	(28.5)
Total comprehensive income for
the period, net of tax	-	-	(30.0)	*	1.4	-	-	-	32.4	3.8	0.1	3.9
Transactions with owners, recorded
directly in equity:
Value of employee services received
for issue of share options	-	-	-	-	-	-	0.2	-	-	0.2	-	0.2
First and final dividend of SGD0.022
per share for the year ended 30
June 2018	-	-	-	-	-	-	-	-	(20.9)	(20.9)	-	(20.9)
Total transactions with owners	-	-	-	-	-	-	0.2	-	(20.9)	(20.7)	-	(20.7)
Balance at 31 Dec 2018	273.6	654.2	(280.8)	(0.8)	(2.1)	(1.6)	3.2	(46.2)	486.2	1,085.7	(2.5)	1,083.2

* Amount less than US$0.1m

Page 6 of 11

Statement of Changes in Equity - Company

			Capital
			Reserve	Equity
			Share	Compen-
	Share	Contributed	Based	sation	ESOS	Retained
	Capital	Surplus	Payment	Reserve	Reserve	Earnings	Total
	US$m	US$m	US$m	US$m	US$m	US$m	US$m
Balance at 1 July 2019	273.6	654.2	(1.6)	2.7	(46.2)	453.0	1,335.7
Loss for the period	-	-	-	-	-	(0.5)	(0.5)
Total comprehensive income for the period,
net of tax	-	-	-	-	-	(0.5)	(0.5)
Transactions with owners, recorded directly
in equity:
First and final dividend of SGD0.022 per
share for the year ended 30 June 2019	-	-	-	-	-	(21.0)	(21.0)
Total transactions with owners	-	-	-	-	-	(21.0)	(21.0)
Balance at 31 Dec 2019	273.6	654.2	(1.6)	2.7	(46.2)	431.5	1,314.2
Balance at 1 July 2018	273.6	654.2	(1.6)	2.7	(46.2)	459.7	1,342.4
Loss for the period	-	-	-	-	-	(0.6)	(0.6)
Total comprehensive income for the period,
net of tax	-	-	-	-	-	(0.6)	(0.6)
Transactions with owners, recorded directly
in equity:
First and final dividend of SGD0.022 per
share for the year ended 30 June 2018	-	-	-	-	-	(20.9)	(20.9)
Total transactions with owners	-	-	-	-	-	(20.9)	(20.9)
Balance at 31 Dec 2018	273.6	654.2	(1.6)	2.7	(46.2)	438.2	1,320.9

1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, subdivision, consolidation, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year

Issued Shares	As at 31 Dec 2019	As at 30 June 2019
Issued and fully paid ordinary shares	1,368,063,633	1,368,063,633
	Half Year ended
Share Options	31 Dec 2019	31 Dec 2018
(a) Grant of share options under ESOS 2008:
As at 1 July	26,250,000	37,250,000
Options granted	-	-
Options lapsed	(16,000,000)	(3,500,000)
As at 31 December	10,250,000	33,750,000
(b) Number of shares held in the ESOS Trust to be transferred to eligible
employees to satisfy the outstanding share options under the ESOS 2008	68,295,000	68,295,000

There has been no change in the Company's share capital since the immediate preceding financial period.

Page 7 of 11

1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year

	As at	As at
	31 Dec 2019	30 June 2019
Total issued ordinary shares	1,368.1 million	1,368.1 million
Less: Number of shares acquired by the ESOS Trust for ESOS 2008	(68.3) million	(68.3) million
Total issued ordinary shares excluding shares acquired by the ESOS Trust for ESOS 2008
1,299.8 million	1,299.8 million

1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.

Not applicable.

1. Whether the figures have been audited, or reviewed and in accordance with which auditing standard or practice.
   These figures have neither been audited nor reviewed by the Group's auditors.
2. Where the figures have been audited or reviewed, the auditors' report (including any modifications or emphasis of a matter).
   Not applicable.

3A. Where the latest financial statements are subject to an adverse opinion, qualified opinion or disclaimer of opinion:-

1. Updates on the efforts taken to resolve each outstanding audit issue.
2. Confirmation from the Board that the impact of all outstanding audit issues on the financial statements have been adequately disclosed. This is not required for any audit issue that is a material uncertainty relating to going concern.

Not applicable.

1. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
   Except as disclosed in Note 5, the Group has applied the same accounting policies and methods of computation in the preparation of the financial statements for the financial period ended 31 December 2019 as with the audited financial statements for the financial year ended 30 June 2019.
2. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.
   IFRS 16 Leases
   IFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A lessee recognises a right-of-use (ROU) asset representing its rights to use the underlying asset and a lease liability representing its obligation to make lease payments. Remaining lease payments under the operating leases will be recognised at their present value discounted using an appropriate discount rate and the nature of expenses will now change as IFRS 16 replaces the straight-line operating lease expense with depreciation charge of ROU assets and interest expense on lease liabilities.
   The Group adopted IFRS 16 retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening retained earnings at the date of initial application, 1 July 2019.
   The Group applied the practical expedient to recognise the ROU asset at its carrying amount as if IFRS 16 had been applied since the commencement date, but discounted using the lessee's incremental borrowing rate as of 1 July 2019, and recognition exemptions for short-term leases and leases of low value items in accordance with the principles of IFRS 16.
   As a result of initially applying IFRS 16, the Group recognised ROU assets of US$557.0 million and lease liabilities of US$707.0 million as at 1 July 2019. For ROU assets, the Group presents them as part of hotels, property and equipment.
3. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.

	Unaudited	Unaudited
	1st Half Year ended	2nd Quarter ended
	1 July to	1 July to	1 Oct to	1 Oct to
	31 Dec 2019	31 Dec 2018	31 Dec 2019	31 Dec 2018
Earnings per share
Basic earnings per share (US cents)	2.1	2.5	1.2	1.2
Diluted earnings per share (US cents)	2.1	2.5	1.2	1.2
Earnings per share - continuing operations
Basic earnings per share (US cents)	2.1	2.6	1.2	1.3
Diluted earnings per share (US cents)	2.1	2.6	1.2	1.3

Based on 1,299.8 million shares, which is the weighted average number of ordinary shares in issue after adjusting for the shares held by the ESOS Trust for ESOS 2008.

Page 8 of 11

7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the:-

1. current financial period reported on; and
2. immediately preceding financial year.

	Unaudited Half Year	Audited Full Year
Net assets per share (US cents)	31 Dec 2019	30 June 2019
The Group	73.6	82.8
The Company	101.1	102.8

Based on 1,299.8 million shares, which is the weighted average number of ordinary shares in issue after adjusting for the shares held by the ESOS Trust for ESOS 2008.

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:-

1. any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and
2. any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

Income Statement

Profit after tax for the half year ended 31 December 2019 was US$26.9 million, a decrease of 17% compared to US$32.4 million in the previous corresponding period. The following review sets out the factors that affected profit after tax for the period:

Revenue

Revenue was 1% higher than previous corresponding period due mainly to higher revenue generated from hotel segment.

The hotel revenue was higher primarily driven by improved RevPAR generally across the hotel estate and from the newly launched Hard Rock Hotel London, which opened in April 2019. However, the increase was partially offset by the weakening of GBP against USD compared to last year.

This was offset by lower revenue from oil and gas segment due to lower average crude oil price, lower production as well as the weakening of AUD against USD.

Cost of sales

The increase of cost of sales was in line with the increase in hotel revenue during the period.

Administrative expenses

Lower administrative expenses was mainly due to the adoption of IFRS 16 which replaces the straight-line operating lease expense with depreciation charge of ROU assets and interest expense on lease liabilities. The interest expense is included in net financing cost.

Impairment loss on trade receivables

Reversal of impairment loss on trade receivables was mainly due to lower provision required on an improved aged trade debt balances.

Other operating expenses

The increase in other operating expenses was relating to the provision of value added tax ("VAT") arising from discretionary service charge billed to customers in UK and impairment loss on hotel property.

Net financing costs

Higher financing costs was mainly due to interest expense on lease liabilities upon the adoption of IFRS 16.

Income tax expense

Higher income tax expense was mainly due to lower tax credit available to offset the tax expenses in the hotel segment during the period.

Page 9 of 11

Statement of Comprehensive Income

Total comprehensive income for the half year ended 31 December 2019 was US$54.5 million. This included a net foreign exchange gain of US$26.6 million as a result of translating the books of the Group's UK and Australia subsidiaries which are denominated in GBP into the Group's reporting currency, which is USD. As at the end of 31 December 2019, GBP appreciated by 4% against the USD as compared to 30 June 2019.

Statement of Financial Position

The Group's net assets before non-controlling interests decreased by 11% from US$1,076.3 million as at 30 June 2019 to US$956.4 million as at 31 December 2019.

Excluding the effects of currency translation, other significant factors that affected the Group's net assets as at 31 December 2019 were as follows:

1. Hotels, property and equipment - increase was mainly due to the adoption of IFRS16 and recognition of ROU assets since 1 July 2019.
2. Cash and cash equivalents - decrease was mainly due to the partial repayment of long-term loan and borrowings and dividend during the period.
3. Long term loan and borrowings - decrease was due to partial repayment during the period.

d) Lease liabilities - increase was mainly due to the adoption of IFRS16 and recognition of lease liabilities since 1 July 2019.

1. Derivative financial liability - decrease was mainly due to expiry of certain interest rate swap contract during the period.
2. Short term loan and borrowings - increase was mainly due to reclassification of long-term loan and borrowings which is due within the next 12 months.
3. Provisions - increase was mainly due to provision for value added tax arising from discretionary service charge billed to customers in UK.
4. Trade and other payables - decrease was due to scheduled settlement of creditor balances and timing differences on suppliers' billing.
5. Corporate tax payable - increase in corporate tax payable was mainly due to tax provision for the hotel earnings and oil and gas royalty income during the period.

Statement of Cash Flows

Net cash outflow of US$22.6 million at the end of the period compared with net cash outflow of US$32.8 million in the previous corresponding period. This was primarily due to lower partial repayment of long-term loan and borrowings and lower capital expenditures in hotel segment during the period.

1. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.
   The Group had not previously released any forecast or prospect statements.
2. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months
   Despite post-Brexit uncertainty dampening travel into UK, London's hotel occupancy rate over the medium term is likely to remain resilient, as major international events such as the ICC Cricket World Cup, Netball World Cup and the UEFA Euro 2020 football championships will bolster international tourism in 2020. However, an anticipated increase in room supply will moderate occupancy and room rate growth in the London hotel market.
   Near term, the current coronavirus outbreak may lead to a retrenchment in travel and reduced hotel room demand in London. Early signs of a softening in demand has been noted in some of our hotels favoured by Asian travellers.
   Upon opening in April 2019, the Hard Rock Hotel London faced competition and, following resolution of post- renovation challenges, enhanced promotional efforts are being undertaken across booking channels to boost occupancy. The room refurbishment of The Grosvenor Hotel has been completed and the hotel was re-launched as Amba Hotel Grosvenor on 10 December 2019.
   The profit contribution from the Group's interest in the Bass Strait oil and gas royalty will likely be affected by the recent decline in oil and gas prices.
   The Group maintains a cautious outlook and will continue to focus on a rate-led strategy to improve its hotel occupancy and room rate.

Page 10 of 11

1. Dividend
2. 1. Current Financial Period Reported On
      Any dividend declared for the current financial period reported on? None.
   2. Corresponding Period of the Immediately Preceding Financial Year
      Any dividend declared for the corresponding period of the immediately preceding financial year? None.
   3. Date payable Not applicable.
   4. Record date Not applicable.
3. If no dividend has been declared/recommended, a statement to that effect Not applicable.
4. If the group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect
   The Group does not have a general mandate from shareholders for interested person transactions.
5. Confirmation by the Board of Directors
   The Directors confirm that, to the best of their knowledge, nothing has come to the attention of the Board of Directors which may render the unaudited consolidated financial statements of GL Limited for the half year ended 31 December 2019 to be false or misleading in any material aspect.
6. Confirmation pursuant to Rule 720(1) of the Listing Manual
   GL Limited confirms that undertakings under Rule 720(1) have been obtained from all its directors and executive officers in the format set out in Appendix 7.7.

BY ORDER OF THE BOARD

SUSAN LIM

Group Company Secretary

7 February 2020

Page 11 of 11