Biosensors : Financial Statements and Related Announcement :: Half Yearly Results

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BIOSENSORS INTERNATIONAL GROUP, LTD.

Second Quarter And Half Year Financial Statements Announcement For The Period Ended 30 September 2015 (In accordance with International Financial Reporting Standards)

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.

Consolidated Income Statement for the second quarter and half year ended 30 September 2015

Note	The Group
	2nd Quarter Ended			Half Year Ended
	30-Sep-15	30-Sep-14	Change	30-Sep-15	30-Sep-14	Change
A	US$'000	US$'000	%	US$'000	US$'000	%
	56,704	68,864	(18)	117,236	139,332	(16)
B	3,306	5,922	(44)	9,801	15,664	(37)
	60,010	74,786	(20)	127,037	154,996	(18)
	(17,762)	(20,886)	(15)	(33,761)	(41,366)	(18)
	42,248	53,900	(22)	93,276	113,630	(18)
	(19,875)	(25,959)	(23)	(40,164)	(52,883)	(24)
C	(8,080)	(9,452)	(15)	(15,915)	(20,104)	(21)
D	(5,583)	(8,259)	(32)	(10,205)	(15,309)	(33)
E	(33,538)	(43,670)	(23)	(66,284)	(88,296)	(25)
	8,710	10,230	(15)	26,992	25,334	7
F	5,044	(137)	NM	3,961	(398)	NM
G	1,825	1,815	1	3,871	3,546	9
H	(3,266)	(3,454)	(5)	(6,617)	(6,866)	(4)
I	12,313	8,454	46	28,207	21,616	30
	(4,524)	(4,563)	(1)	(9,157)	(9,199)	(0)
	(3,206)	510	NM	(3,960)	510	NM
	4,583	4,401	4	15,090	12,927	17
	(573)	522	NM	(1,619)	1,867	NM
	4,010	4,923	(19)	13,471	14,794	(9)

Revenue

Product revenue

Licensing and royalties revenue

Total revenue

Total cost of sales

Gross profit

Operating expenses

Sales and marketing expenses General and administrative expenses Research and development expenses

Profit from operations

Other income/(expenses), net Financial income

Financial expenses

Profit before exceptional and non-operating items

Amortisation of customer lists and patents

Exceptional items

- restructuring of operations

Profit before tax Income tax
Net profit for the period
Attributable to: Equity holders of the Company	4,010	4,923	13,471	14,794
Earnings per share (US cent) Before exceptional items Basic	(see footnotes)	0.43	0.26	1.04	0.84
Diluted After exceptional items Basic	0.43 0.24	0.26 0.29	1.03 0.80	0.84 0.87
Diluted	0.24	0.29	0.80	0.86

NM - Not meaningful

Consolidated Statement of Comprehensive Income

The Group
2nd Quarter Ended			Half Year Ended
30-Sep-15	30-Sep-14	Change	30-Sep-15	30-Sep-14	Change
US$'000	US$'000	%	US$'000	US$'000	%
4,010	4,923	(19)	13,471	14,794	(9)
(36,653)	(23,912)	53	(32,549)	(2,058)	NM
(32,643)	(18,989)		(19,078)	12,736

Net profit for the period

Other comprehensive income:

Exchange differences on translation of financial statements of foreign subsidiaries

Total comprehensive income

Attributable to:

Equity holders of the Company (32,643) (18,989) (19,078) 12,736

Footnotes

1 Weighted average ordinary shares issued ('000)	1,685,808 1,698,679	1,683,710 1,698,060
2 Weighted average ordinary shares and equivalents outstanding ('000)	1,688,277 1,709,701	1,686,519 1,710,438

Basic earnings per share is calculated by dividing the profit for the period by the weighted average number of shares in issue during the period excluding ordinary shares purchased by the Company and held as treasury shares.

Diluted earnings per share is calculated by dividing the profit for the period by the weighted average number of shares in issue during the period excluding ordinary shares purchased by the Company and held as treasury shares adjusted for the effects of dilutive options.

Notes to the Income Statements

1. Product revenue

   The Group 2nd Quarter Ended

   
   

   Half Year Ended

   30-Sep-15 30-Sep-14 30-Sep-15 30-Sep-14 US$'000 US$'000 US$'000 US$'000

   
   

   Critical care products 3,988 3,655 7,744 8,031

   Interventional cardiology products 49,038 61,303 102,542 122,998 Cardiac diagnostic 3,678 3,906 6,950 8,303

   56,704 68,864 117,236 139,332

   
   

2. Sales and marketing expenses decreased 23% to US$19.9 million for the quarter ended 30 September 2015 compared to US$26.0 million for the quarter ended 30 September 2014 mainly due to reduced payroll related expenses, marketing, exhibition and travelling related expenses.

   
   

3. General and administrative expenses decreased 15% to US$8.1 million from US$9.5 million in the corresponding quarter of last year mainly due to lower professional fee and share-based payment expenses.

   
   

4. Research and development expenses decreased 32% to US$5.6 million compared to US$8.3 million in the quarter ended 30 September 2014 mainly due to lower clinical trial expenses.

   
   

5. Profit from operations is determined after (charging)/crediting the following:

The Group 2nd Quarter Ended

Half Year Ended

30-Sep-15 30-Sep-14 30-Sep-15 30-Sep-14

Depreciation of property, plant and equipment	US$'000 (1,423)	US$'000 (1,995)	US$'000 (2,840)	US$'000 (3,712)
Amortisation of intangible assets (excluding customer lists and patents)	(472)	(247)	(952)	(506)
Realisation of deferred revenue	1,501	1,342	3,526	3,940
(Allowance for)/write-back of doubtful trade debts, net	(311)	1,206	1,108	516
Write-back for doubtful non-trade debts, net	2	3	5	6
Inventories write-down, net	(550)	(1,607)	(864)	(4,078)
Provision for warranty, net	(3)	(12)	(5)	(33)
(Provision)/Reversal for sales return	(40)	(237)	16	(492)
Impairment of property, plant and equipment	-	-	(58)	66
Intangible assets written off	-	(15)	-	(15)
Property, plant and equipment written off	8	(18)	(7)	(73)
Inventories written off	(253)	(122)	(1,232)	(317)
(Loss)/gain on disposal of property, plant and equipment	(2)	-	(7)	1
Foreign exchange gains/(losses)	5,097	(127)	4,073	(376)

F	Other income/(expenses), net
The Group
2nd Quarter Ended		Half Year Ended
30-Sep-15	30-Sep-14	30-Sep-15	30-Sep-14
US$'000	US$'000	US$'000	US$'000
(Loss)/gain on disposal of property, plant and equipment, net	(2)	-	(7)	1
Foreign exchange gain/(loss), net	5,097	(127)	4,073	(376)
Other miscellaneous expenses, net	(51)	(10)	(105)	(23)
5,044	(137)	3,961	(398)
Other operating expenses for the quarter was mainly the exchange gain from the appreciation of JPY and EUR against USD during the period.
G	Financial income	2nd Quarter Ended		Half Year Ended
30-Sep-15	30-Sep-14	30-Sep-15	30-Sep-14
US$'000	US$'000	US$'000	US$'000
Interest income
- bank balances	217	340	438	709
- fixed deposits	1,589	1,455	3,395	2,797
- others	19	20	38	40
1,825	1,815	3,871	3,546
H	Financial expenses	2nd Quarter Ended		Half Year Ended
30-Sep-15	30-Sep-14	30-Sep-15	30-Sep-14
US$'000	US$'000	US$'000	US$'000
Interest expense
- long term loan	(403)	(282)	(810)	(477)
- notes payable	(2,856)	(3,160)	(5,793)	(6,356)
- others	(7)	(12)	(14)	(33)
(3,266)	(3,454)	(6,617)	(6,866)
I	Income tax
Income tax for the current quarter and the half year ended 30 September 2015 includes mainly corporate income tax expenses.

1(b)(i)	A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.
Consolidated Balance Sheets as at 30 September 2015
The Group		The Company
Note	30-Sep-15	31-Mar-15	30-Sep-15	31-Mar-15
US$'000	US$'000	US$'000	US$'000
Non-Current Assets
Property, plant and equipment	81,177	86,289	-	-
Investment in subsidiaries	-	-	584,716	584,716
Other investments	A	30,844	28,836	30,844	28,836
Intangible assets	125,090	134,875	13,177	12,199
Deposit pledged for bank loan	1,049	1,092	-	-
Goodwill	424,682	439,576	52,579	52,579
Deferred tax assets	255	258	-	-
Long term loan to a third party	1,500	1,500	-	-
Long term loans to subsidiaries	-	-	57,039	56,616
Current Assets
Inventories	B	45,751	44,474	-	-
Trade receivables	C	62,632	73,121	-	-
Other receivables	3,495	4,059	1,180	-
Deposits and prepayments	D	18,941	15,058	1,330	523
Due from subsidiaries (non-trade)	-	-	15,261	13,303
Due from subsidiaries (trade)	-	-	5,762	7,042
Short term loan to a third party	500	500	-	-
Deposits pledged for bank loans	44,090	47,793	-	-
Cash and cash equivalents	523,686	518,253	288,520	298,656
699,095	703,258	312,053	319,524
Less:
Current Liabilities
Trade payables	8,557	6,605	-	-
Other payables	17,467	18,939	560	768
Accruals	E	23,140	26,702	1,666	2,291
Provisions	2,603	2,747	-	-
Due to subsidiaries (non-trade)	-	-	10,076	18,413
Provision for income tax	6,204	6,845	389	23
Deferred revenue, current portion	F	1,849	1,678	-	-
Finance lease liabilities, current portion	18	19	-	-
Borrowings	G	41,303	41,433	39,000	41,046
Contingent consideration	2,410	2,410	2,410	2,410
103,551	107,378	54,101	64,951
Net Current Assets	595,544	595,880	257,952	254,573
Less:
Non-Current Liabilities
Deferred tax liabilities	13,669	15,220	-	-
Deferred revenue, non-current portion	F	903	1,561	-	-
Finance lease liabilities, non-current portion	48	60	-	-
Borrowings	G	243,699	254,260	205,612	211,819
Other payable - non current	63	78	63	78
Pension funds	2,774	2,701	-	-
261,156	273,880	205,675	211,897
998,985	1,014,426	790,632	777,622
Capital and Reserves
Share capital	118	117	118	117
Share premium	750,266	746,042	750,266	746,042
Treasury shares	(54,692)	(54,692)	(54,692)	(54,692)
Translation reserves	13,078	45,627	-	-
Other reserves	18,937	19,525	17,891	18,479
Accumulated profits	271,278	257,807	77,049	67,676
998,985	1,014,426	790,632	777,622
Net assets values
Net assets per share (US cent)	59.16	60.36	46.82	46.27
Footnote
Number of shares in issue at end of period ('000)	1,688,550	1,680,706	1,688,550	1,680,706
Net assets per share is calculated by dividing the net assets by the number of shares in issue as at the balance sheet date.

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