Elec & Eltek International : UNAUDITED FINANCIAL RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 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.

The Singapore Exchange Securities Trading Limited assumes no responsibility for the correctness of any of the statements made, reports contained, or opinions expressed in this announcement.

Elec & Eltek International Company Limited

依利安達集團有限公司*

(Incorporated in the Republic of Singapore with Limited Liability)

Singapore Company Registration Number: 199300005H

(Hong Kong Stock Code: 1151)

(Singapore Stock Code: E16.SI)

UNAUDITED FINANCIAL RESULTS

FOR THE THIRD QUARTER AND NINE MONTHS ENDED 30 SEPTEMBER 2019

This announcement is made by Elec & Eltek International Company Limited (the "Company") pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited ("SEHK"). This announcement is originally prepared in English. In the case of any inconsistency between the English version and the Chinese version, the English version shall prevail.

This announcement is prepared in accordance with the relevant regulations of the Singapore Exchange Securities Trading Limited ("SGX"). The financial information set out in this announcement has been prepared in accordance with the Singapore Financial Reporting Standards (International) ("SFRS(I)") and has not been audited or reviewed by auditors. Shareholders of the Company and public investors should exercise caution when trading in the shares of the Company.

This announcement contains projections and forward-looking statements regarding the objectives and expectations of the Company and its subsidiaries (collectively referred to as the "Group") with respect to the Group's business opportunities and business prospects. Such forward-looking statements do not constitute guarantees of the future performance of the Group and are subject to factors that could cause the Group's actual results, plans and objectives to differ materially from those expressed in the forward-looking statements. These factors include, but are not limited to, general industry and economics conditions, shifts in customer demands, customers and partners and government and policy changes. The Group undertakes no obligation to update or revise any forward-looking statements contained in this announcement to reflect subsequent events or circumstances.

• For identification purpose only

1

FINANCIAL HIGHLIGHTS
	Nine months ended
	30 September	30 September
	2019 ("YTD	2018 ("YTD	%
	3QCY19")	3QCY18")	Change
	US$' 000	US$' 000
Revenue	435,310	444,261	-2.0%
EBITDA	59,917	57,263	4.6%
EBITDA margin	13.8%	12.9%
Profit before taxation	24,958	25,831	-3.4%
Net profit attributable to owners
of the Company	20,603	21,380	-3.6%
Basic and diluted earnings per share	US11.02 cents	US11.44 cents	-3.7%
	30 September	31 December
	2019	2018
Net asset value per share	US$2.27	US$2.19	3.7%
Net gearing ratio	20.6%	20.5%

2

RESULTS

The board of directors ("Directors" and each a "Director") of the Company (the "Board") is pleased to announce the unaudited consolidated results of the Group for the third quarter ("3QCY19") and nine months ended 30 September 2019 ("YTD 3QCY19") together with the comparative figures for the third quarter ("3QCY18") and nine months ended 30 September 2018 ("YTD 3QCY18").

Consolidated Statement of Profit or Loss

										YTD	YTD
	Notes			3QCY19	3QCY18			3QCY19	3QCY18
				US$' 000	US$' 000	% Change		US$' 000	US$' 000	% Change
		(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
Revenue	2	155,089		164,142		-5.5%	435,310		444,261		-2.0%
Cost of sales		(134,945)	(144,683)	-6.7%	(386,778)	(392,895)	-1.6%
Gross profit		20,144		19,459		3.5%	48,532		51,366		-5.5%
Gross profit margin		13.0%		11.9%			11.1%		11.6%
Other operating income and gains		1,263		432		192.4%	2,883		1,813		59.0%
Distribution and selling costs		(2,216)	(2,612)	-15.2%	(6,847)	(7,471)	-8.4%
Administrative expenses		(6,858)	(7,953)	-13.8%	(17,306)	(18,183)	-4.8%
Other operating expenses and losses		(157)	(86)	82.6%	(270)	(368)	-26.6%
Finance costs	3		(781)	(646)	20.9%	(2,034)	(1,326)	53.4%
Profit before taxation			11,395		8,594		32.6%		24,958		25,831		-3.4%
Income tax expense	4	(1,236)	(1,693)	-27.0%	(3,640)	(3,842)	-5.3%
Profit for the period		10,159		6,901		47.2%	21,318		21,989		-3.1%
Profit attributable to:
Owners of the Company		9,772		6,530		49.6%	20,603		21,380		-3.6%
Non-controlling interests		387		371		4.3%	715		609		17.4%
		10,159		6,901		47.2%	21,318		21,989		-3.1%
Earnings per share (US cents)	6
- Basic and diluted		5.23		3.49		49.9%	11.02		11.44		-3.7%

3

Notes to Consolidated Statement of Profit or Loss:

								YTD	YTD
		3QCY19	3QCY18			3QCY19	3QCY18
		US$' 000	US$' 000 % Change		US$' 000	US$' 000 % Change
	(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
Depreciation	10,876		10,519		3.4%	32,881		30,054		9.4%
Amortisation of prepaid land use rights	41		41		n/m	123		123		n/m
Allowance for doubtful debts	91		2,476		-96.3%	732		2,362		-69.0%
(Reversal of allowance) allowance
for inventory obsolescence	(178)	(13)	1269.2%	1,371		183		649.2%
Consolidated Statement of Profit or Loss and Other Comprehensive Income
								YTD	YTD
		3QCY19	3QCY18			3QCY19	3QCY18
		US$' 000	US$' 000 % Change		US$' 000	US$' 000 % Change
	(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
Profit for the period	10,159		6,901		47.2%	21,318		21,989		-3.1%
Other comprehensive (expense) income:
Items that may be reclassified subsequently to
profit or loss:
Exchange differences arising on translation of
foreign operations	(144)	108		-233.3%	(65)	(44)	47.7%
Other comprehensive (expense) income for the period,
net of tax	(144)	108		-233.3%	(65)	(44)	47.7%
Total comprehensive income for the period	10,015		7,009		42.9%	21,253		21,945		-3.2%
Total comprehensive income attributable to:
Owners of the Company	9,628		6,638		45.0%	20,538		21,336		-3.7%
Non-controlling interests	387		371		4.3%	715		609		17.4%
	10,015		7,009		42.9%	21,253		21,945		-3.2%

n/m percentage not meaningful

4

Statements of Financial Position
								THE GROUP							THE COMPANY
		30 September	31 December	30 September	31 December
		2019		2018	2019		2018
	Notes							US$' 000							US$' 000							US$' 000						US$' 000
		(Unaudited)							(Audited)							(Unaudited)						(Audited)
ASSETS
Current assets
Cash and bank balances		29,518		25,077	82		98
Trade receivables	10	188,630		186,477							-						-
Bills receivables	10	746		1,148							-						-
Other receivables		18,662		13,294	24		7
Prepaid land use rights		399		399							-						-
Inventories	11		46,857			39,631							-							-
Total current assets		284,812		266,026	106		105
Non-current assets
Property, plant and equipment	8	319,418		335,141							-						-
Prepaid land use rights		12,244		12,367							-						-
Deposits for acquisition of plant and equipment	8	7,322		8,398							-						-
Investment properties	9	129,509		104,554							-						-
Subsidiary companies								-							-	474,430		474,747
Deferred tax assets		39		39							-						-
Total non-current assets			468,532			460,499		474,430			474,747
Total assets		753,344		726,525	474,536		474,852
LIABILITIES AND EQUITY
Current liabilities
Bank loans	13	65,773		55,353							-						-
Trade payables	12	154,176		150,176							-						-
Bills payables	12	11,059		15,442							-						-
Other payables		35,896		31,418	4,355		4,385
Amounts due to subsidiary companies								-							-	255,749		247,163
Contract liabilities		1,690		679							-						-
Provision for taxation		5,614		5,095							-						-
Total current liabilities		274,208		258,163	260,104		251,548
Non-current liabilities
Bank loans	13	50,848		53,850							-						-
Deferred tax liabilities		3,403		3,403							-						-
Deferred income		1,162		1,162							-						-
Total non-current liabilities		55,413		58,415							-						-
Capital, reserves and non-controlling interests
Share capital	14	113,880		113,880	113,880		113,880
Reserves		297,170		284,109	100,552		109,424
Equity attributable to owners of the Company		411,050		397,989	214,432		223,304
Non-controlling interests		12,673		11,958							-						-
Total equity		423,723		409,947	214,432		223,304
Total liabilities and equity		753,344		726,525	474,536		474,852

5

Consolidated Statement of Changes in Equity
							Attributable to owners of the Company
																		Foreign
																	currency				Non-
		Share	Capital	Statutory	Revaluation	Other	Retained	translation			controlling	Total
		capital	reserve		reserve		reserve	reserve		earnings		reserve	Total		interests	equity
	US$' 000	US$'000		US$'000		US$'000	US$'000		US$'000		US$'000	US$'000		US$'000	US$'000
				(Note i)		(Note ii)		(Note iii)	(Note iv)
THE GROUP
3QCY19
Balance at 1 July 2019 (unaudited)	113,880		1,916	9,947		42,684	166	219,923	12,906	401,422	12,286	413,708
Change in equity for 3QCY19
Profit for the period		-	-		-		-	-	9,772		-	9,772	387	10,159
Exchange differences arising on
translation of foreign operations		-	-		-		-	-		-	(144)	(144)		-	(144)
Other comprehensive expenses
for the period, net of tax		-	-		-		-	-		-	(144)	(144)		-	(144)
Total comprehensive income
(expenses) for the period		-	-		-		-	-	9,772	(144)	9,628	387	10,015
Balance at 30 September 2019
(unaudited)	113,880		1,916	9,947		42,684	166	229,695	12,762	411,050	12,673	423,723
3QCY18
Balance at 1 July 2018 (unaudited)	113,880		1,916	6,826		42,684	166	210,241	14,057	389,770	11,580	401,350
Change in equity for 3QCY18
Profit for the period		-	-		-		-	-	6,530		-	6,530	371	6,901
Exchange differences arising on
translation of foreign operations		-	-		-		-	-		-	108	108		-	108
Other comprehensive income for
the period, net of tax		-	-		-		-	-		-	108	108		-	108
Total comprehensive income for
the period		-	-		-		-	-	6,530	108	6,638	371	7,009
Balance at 30 September 2018
(unaudited)	113,880		1,916	6,826		42,684	166	216,771	14,165	396,408	11,951	408,359

6

						Attributable to owners of the Company
																	Foreign				Non-
																currency
	Share	Capital	Statutory	Revaluation	Other	Retained	translation			controlling	Total
	capital	reserve		reserve		reserve	reserve		earnings		reserve	Total		interests	equity
	US$'000	US$'000		US$'000		US$'000	US$'000		US$'000		US$'000	US$'000		US$'000	US$'000
			(Note i)		(Note ii)		(Note iii)	(Note iv)
THE GROUP
YTD 3QCY19
Balance at 1 January 2019 (audited)	113,880		1,916	9,947		42,684	166	216,569	12,827	397,989	11,958	409,947
Change in equity for YTD 3QCY19
Profit for the period	-	-		-		-	-	20,603		-	20,603	715	21,318
Exchange differences arising on
translation of foreign operations	-	-		-		-	-		-	(65)	(65)		-	(65)
Other comprehensive expenses for
the period, net of tax	-	-		-		-	-		-	(65)	(65)		-	(65)
Total comprehensive income
(expenses) for the period	-	-		-		-	-	20,603	(65)	20,538	715	21,253
Transactions with owners,
recognised directly in equity
Dividend paid in respect
of previous year	-	-		-		-	-	(7,477)		-	(7,477)		-	(7,477)
Total comprehensive expenses for
the period	-	-		-		-	-	(7,477)		-	(7,477)		-	(7,477)
Balance at 30 September 2019
(unaudited)	113,880		1,916	9,947	42,684	166	229,695	12,762	411,050	12,673	423,723
YTD 3QCY18
Balance at 1 January 2018 (audited)	113,880		1,916	6,826		42,684	166	210,345	14,209	390,026	11,342	401,368
Change in equity for YTD 3QCY18
Profit for the period	-	-		-		-	-	21,380		-	21,380	609	21,989
Exchange differences arising on
translation of foreign operations	-	-		-		-	-		-	(44)	(44)		-	(44)
Other comprehensive expenses
for the period, net of tax	-	-		-		-	-		-	(44)	(44)		-	(44)
Total comprehensive income
(expenses) for the period	-	-		-		-	-	21,380	(44)	21,336	609	21,945
Transactions with owners,
recognised directly in equity
Dividend paid in respect of
previous year	-	-		-		-	-	(14,954)		-	(14,954)		-	(14,954)
Total comprehensive expenses
for the period	-	-		-		-	-	(14,954)		-	(14,954)		-	(14,954)
Balance at 30 September 2018
(unaudited)	113,880		1,916	6,826		42,684	166	216,771	14,165	396,408	11,951	408,359

7

Notes:

1. Capital reserve represents amounts transferred from share option reserve upon the exercise of share options.
2. Statutory reserve represents amounts set aside by subsidiary companies operating in the People's Republic of China (the "PRC") and Thailand for declaration of dividends as required under the laws of the PRC and Thailand.
3. The revaluation reserve of the Group represents the gain on revaluation of certain properties of the Group as a result of the transfer from property for own use to investment properties.
4. The amount credited to other reserve represents the difference between the fair value of consideration and the carrying amount of the net assets attributable to the additional interest in subsidiaries being acquired from non-controlling shareholders, which will be recognised to the profit and loss upon the disposal of the subsidiaries or the disposal of assets by the subsidiaries.

8

	Share		Capital		Retained	Total
	capital		reserve		earnings	equity
	US$' 000		US$' 000		US$' 000	US$' 000
			(Note i)
THE COMPANY
3QCY19
Balance at 1 July 2019 (unaudited)	113,880	1,916	99,090	214,886
Loss for the period, representing total
comprehensive expense for the period	-		-	(454)	(454)
Balance at 30 September 2019 (unaudited)	113,880	1,916	98,636	214,432
3QCY18
Balance at 1 July 2018 (unaudited)	113,880	1,916	105,447	221,243
Loss for the period, representing total
comprehensive expense for the period	-		-	(190)	(190)
Balance at 30 September 2018 (unaudited)	113,880	1,916	105,257	221,053
YTD 3QCY19
Balance at 1 January 2019 (audited)	113,880	1,916	107,508	223,304
Loss for the period, representing total
comprehensive expense for the period	-		-	(1,395)	(1,395)
Transactions with owners, recognised
directly in equity
Dividend paid in respect of previous year	-		-	(7,477)	(7,477)
Balance at 30 September 2019 (unaudited)	113,880	1,916	98,636	214,432
YTD 3QCY18
Balance at 1 January 2018 (audited)	113,880	1,916	120,996	236,792
Loss for the period, representing total
comprehensive expense for the period	-		-	(785)	(785)
Transactions with owners, recognised
directly in equity
Dividend paid in respect of previous year	-		-	(14,954)	(14,954)
Balance at 30 September 2018 (unaudited)	113,880	1,916	105,257	221,053

Note:

1. Capital reserve represents amounts transferred from share option reserve upon the exercise of share options.

9

Consolidated Statement of Cash Flows

3QCY19 3QCY18 YTD 3QCY19 YTD 3QCY18 US$' 000 US$' 000 US$' 000 US$' 000 (Unaudited) (Unaudited) (Unaudited) (Unaudited)

Operating activities
Profit before taxation	11,395			8,594		24,958		25,831
Adjustments for:
Allowance for doubtful debts	91			2,476		732		2,362
Finance costs	781			646		2,034		1,326
Depreciation of property, plant and equipment	10,876			10,519		32,881		30,054
Amortisation of prepaid land use rights	41			41		123		123
Gain on disposal of property, plant and equipment	241			(2)	264		(87)
(Reversal of allowance) allowance for inventory obsolescence	(178)	(13)	1,371		183
Interest income	(20)	(21)	(79)	(71)
Operating income before movements in working capital	23,227		22,240		62,284		59,721
Decrease (increase) in inventories	274			(1,035)	(8,597)	(3,624)
Increase in trade, bills and other receivables	(780)	(49)	(8,020)	(21,512)
Increase (decrease) in trade, bills and other payables	1,023			117		(3,123)	1,106
Net cash generated from operations	23,744		21,273		42,544		35,691
Interest income received	20			21		79		71
Interest paid	(1,291)	(646)	(2,544)	(1,433)
Income taxes paid	(1,012)	(1,098)	(3,640)	(3,190)
Net cash generated from operating activities	21,461		19,550		36,439		31,139
Investing activities
Proceeds from disposal of property, plant and equipment	102		2		239		196
Purchase of property, plant and equipment	(9,993)	(21,128)	(23,857)	(51,498)
Costs incurred for investment properties under development	(1,262)	-	(1,262)	-
Deposits paid for acquisition of property, plant and equipment	(741)	(1,730)	(7,110)	(5,977)
Net cash used in investing activities	(11,894)	(22,856)	(31,990)	(57,279)

10

		3QCY19	3QCY18 YTD 3QCY19 YTD 3QCY18
		US$' 000	US$' 000		US$' 000	US$' 000
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Financing activities
Proceeds from bank borrowings	8,424		11,936		33,496		52,536
Repayment of bank borrowings	(8,958)	(7,229)	(26,078)	(16,304)
Dividends paid by the Company		-		-	(7,477)	(14,954)
Net cash (used in) generated from financing activities		(534)	4,707		(59)	21,278
Net increase (decrease) in cash and cash equivalents		9,033		1,401			4,390		(4,862)
Cash and cash equivalents at the beginning of the period	20,830		20,019		25,077		25,985
Effect of foreign exchange rate changes on the balances of
cash held in foreign currencies, net	(345)	188		51		485
Cash and cash equivalents at the end of the period	29,518		21,608		29,518		21,608
Cash and cash equivalents consist of:
				30 September 30 September
							2019				2018
					US$' 000	US$' 000
Cash and bank balances							29,518				21,608

11

Notes:

1. Basis of preparation and principal accounting policies

The same accounting policies and methods of computation have been applied in the preparation of the quarterly consolidated financial statements for 3QCY19 as the most recent audited financial statements as at 31 December 2018.

The Group adopted the following Singapore Financial Reporting Standards (International) ("SFRS(I)") pronouncements that are effective for annual periods beginng on or after 1 January 2019:

• SFRS(I)16 Lease
• SFRS(I) INT 23 Uncertainty over Income Tax Treatments

The adoption of these new and revised SFRS(I) does not result in changes to the Group's and the Company's accounting policies and has no material effect on the amounts reported for the current or prior financial period.

2. Revenue and segment information

The Group's operating activities are attributable to two single reporting and operating segments on: (i) fabrication and distribution of printed circuit boards ("PCB"); and (ii) property investments. These segments have been identified on the basis of internal management reports prepared in accordance with accounting policies conforming to SFRS(I) that are regularly reviewed by the executive Directors of the Company.

12

		Fabrication
		and
Nine months period ended		distribution	Property
30 September 2019		of PCB	investments	Total
		US$' 000	US$' 000	US$' 000
Segment revenue
Revenue from external customers		429,184	6,126	435,310
Segment Results
	21,292		5,061	26,353
Corporate and other unallocated expenses						(1,395)
Profit before taxation						24,958
	Fabrication
	and
	distribution	Property
	of PCB	investments	Unallocated	Total
	US$' 000	US$' 000	US$' 000	US$' 000
ASSETS
Segment assets	594,317	129,509	-	723,826
Unallocated assets	-	-	29,518	29,518
Consolidated total assets						753,344
LIABILITIES
Segment liabilities	(316,489)	(7,518)	-	(324,007)
Unallocated liabilities	-	-	(5,614)	(5,614)
Consolidated total liabilities						(329,621)

13

		Fabrication
		and
Nine months period ended		distribution	Property
30 September 2018		of PCB	investments	Total
		US$' 000	US$' 000	US$' 000
Segment revenue
Revenue from external customers		437,919	6,342	444,261
Segment Results
	21,155		5,461	26,616
Corporate and other unallocated expenses						(785)
Profit before taxation						25,831
	Fabrication
	and
	distribution	Property
	of PCB	investments	Unallocated	Total
	US$' 000	US$' 000	US$' 000	US$' 000
ASSETS
Segment assets	582,260	107,053	-	689,313
Unallocated assets	-	-	21,608	21,608
Consolidated total assets						710,921
LIABILITIES
Segment liabilities	(298,202)	(1,526)	-	(299,728)
Unallocated liabilities	-	-	(2,834)	(2,834)
Consolidated total liabilities						(302,562)

14

3.	Finance costs
		YTD	YTD
		3QCY19	3QCY18
		US$' 000	US$' 000
		(Unaudited)	(Unaudited)
	Interest on bank loans wholly repayable within five years	2,192		1,556
	Less: Amounts capitalised	(158)	(230)
		2,034		1,326
4.	Income tax expense
		YTD	YTD
		3QCY19	3QCY18
		US$' 000	US$' 000
		(Unaudited)	(Unaudited)
	Current tax
	- Singapore income tax	-	-
	- PRC enterprise income tax	3,349		2,696
	- Hong Kong income tax	291		355
		3,640		3,051
	Deferred tax	-	791
		3,640		3,842

The Group is subject to taxation at the place of its operations where its profit is generated. Taxation arising in other jurisdictions is calculated at rates prevailing in the relevant jurisdictions.

5. Dividend

No dividend has been declared or recommended for the third quarter ended 30 September 2019 and the same period last year.

15

6. Earnings per share

The calculation of the basic and diluted earnings per share attributable to the owners of the Company is based on the following:

	Earnings	Earnings
						YTD		YTD
	3QCY19		3QCY18	3QCY19		3QCY18
	US$' 000		US$' 000	US$' 000		US$' 000
	(Unaudited)		(Unaudited)	(Unaudited)		(Unaudited)
Earnings for the purpose of calculating
basic and diluted earnings per share	9,772	6,530	20,603	21,380
	Number of shares	Number of shares
						YTD		YTD
	3QCY19		3QCY18	3QCY19		3QCY18
	' 000		' 000	' 000		' 000
Weighted average number of ordinary
shares for the purpose of calculating
basic and diluted earnings per share	186,920	186,920	186,920	186,920
Earnings per share (US cents)
- basic and diluted	5.23		3.49	11.02	11.44

The Group had not granted options over shares. There are no dilutive potential ordinary shares.

7.	Net asset value
			The Group		The Company
		30 September		31 December	30 September	31 December
		2019	2018	2019	2018
			US$		US$		US$	US$
			(Unaudited)		(Audited)		(Unaudited)	(Audited)
	Net asset value (including non-controlling
	interests) per ordinary share based on total
	number of issued shares excluding treasury
	shares at the end of the period*	2.27	2.19	1.15	1.19

• Based on 186,919,962 issued shares as at 30 September 2019 (31 December 2018: 186,919,962 issued shares).

16

1. Additions to property, plant and equipment
   During the reporting period, the Group spent approximately US$31.0 million (YTD 3QCY18: approximately US$57.5 million) on acquisition of property, plant and equipment including deposits paid.
   The deposits for acquisition of plant and equipment relate to down payments made when new plant and equipment are purchased for operational needs. The amount of down payments reported at each quarter end will depend on factors such as (but not limited to) timing of orders placed for respective equipment, the delivery and the commissioning of the equipment purchased.
2. Investment Properties
   During the reporting period, property, plant and equipment of US$25.0 million is transferred to the investment properties as a result of a change in use.
3. Trade and bills receivables

				THE GROUP
	30 September	31 December
	2019		2018
				US$' 000	US$' 000
				(Unaudited)	(Audited)
Trade receivables
- Third parties	180,145		179,250
- Related companies (note)	13,009		12,721
- less: Allowance for expected credit losses	(4,524)	(5,494)
	188,630		186,477
Bills receivables	746		1,148
Total	189,376		187,625

Note: Related companies are subsidiaries of the ultimate holding company other than the Group.

The following is an ageing analysis of the Group's trade receivables net of allowance for doubtful debts presented based on the invoice date at the end of the reporting period:

		THE GROUP
	30 September		31 December
	2019	2018
		US$' 000		US$' 000
		(Unaudited)		(Audited)
Within 90 days	149,080	156,701
91 to 180 days	39,550	29,776
	188,630	186,477

Trade receivables are non-interest bearing and generally on 30 to 120 days' credit terms.

At the end of the reporting period, the bills receivables are aged within 180 days (31 December 2018: within 180 days).

17

11.	Inventories
					THE GROUP
		30 September			31 December
		2019	2018
					US$' 000			US$' 000
					(Unaudited)			(Audited)
	Raw materials	15,319	11,477
	Work-in-progress	14,358	11,903
	Finished goods	17,180	16,251
		46,857	39,631
12.	Trade and bills payables
					THE GROUP
		30 September			31 December
		2019	2018
					US$' 000			US$' 000
					(Unaudited)			(Audited)
	Trade payables
	- Third parties	97,011	99,985
	- Related companies (note)	57,165	50,191
		154,176	150,176
	Bills payables	11,059	15,442
	Total	165,235	165,618

Note: Related companies are subsidiaries of the ultimate holding company other than the Group.

18

The following is an ageing analysis of trade payables presented based on the invoice date at the end of the reporting period:

			THE GROUP
	30 September		31 December
	2019	2018
			US$' 000		US$' 000
			(Unaudited)		(Audited)
Within 90 days	88,976	91,938
91 to 180 days	38,907	41,132
Over 180 days	26,293	17,106
	154,176	150,176

Trade payables are non-interest bearing and generally on 15 to 120 days' terms.

At the end of the reporting period, the bills payables are aged within 180 days (31 December 2018: within 180 days). The bills payables were mainly related to the purchase of equipment through issuing irrevocable letters of credit as the payment mode.

13. Bank loans
			THE GROUP
	30 September		31 December
	2019	2018
			US$' 000		US$' 000
			(Unaudited)		(Audited)
Unsecured:
Bank loans	116,621	109,203
Comprising the following amounts due:
- within one year	65,773	55,353
- more than one year	50,848	53,850
	116,621	109,203

The Group's total external borrowings increased by approximately 6.8% to approximately US$116.6 million as at 30 September 2019 compared with 31 December 2018.

19

1. Share capital
   As at 30 September 2019, the Company had a total of 186,919,962 (31 December 2018: 186,919,962) issued ordinary shares.
2. Share options
   There were no share options outstanding as at 30 September 2019 and 31 December 2018 respectively. No share options have been granted under the 2018 Elec & Eltek Employees' Share Option Scheme as at the date of this annoucement.
3. Net current assets and total assets less current liabilities
   As at 30 September 2019, the Group's net current assets, defined as current assets less current liabilities, amounted to approximately US$10.6 million (31 December 2018: approximately US$7.9 million).
   As at 30 September 2019, the Group's total assets less current liabilities amounted to approximately US$479.1 million (31 December 2018: approximately US$468.4 million).
4. Reconciliation between SFRS(I) and International Financial Reporting Standards ("IFRS")
   For the nine months ended 30 September 2019, there were no material differences between the consolidated financial statements of the Group prepared under SFRS(I) and IFRS.

20

BUSINESS REVIEW

The Group announces its results for 3QCY19 and YTD3QCY19 (the "Period"). During the Period, the Group's production capacity was maintained well with a relatively high utilisation rate of equipment. The Group's revenue for 3QCY19 decreased by 5.5% from 3QCY18 to US$155.1 million (3QCY18: US$164.1 million). During the Period, due to the positive impact of depreciation of Renminbi on the Group, and additionally satisfactory cost control, the Group's net attributable profit for 3QCY19 significantly increased as compared with 3QCY18. The net attributable profit (profit after tax and non-controlling interests) in 3QCY19 increased by 49.6% to US$9.8 million as compared with 3QCY18 (3QCY18: US$6.5 million).

The Group's gross profit for 3QCY19 increased by 3.5% from US$19.5 million in 3QCY18 to US$20.1 million in 3QCY19, and gross profit margin was 13.0% (3QCY18: 11.9%). Earnings before interest, tax, depreciation and amortisation for the Group ("EBITDA") increased by approximately 16.7% to US$23.1 million as compared with 3QCY18 (3QCY18: US$19.8 million). The Group continued to generate steady operating cash flow.

In terms of product mix, in YTD 3QCY19, communication & networking products (including mobile phones) accounted for approximately 45.1% (YTD 3QCY18: 46.6%) of the Group's PCB sales, while automotive PCB sales accounted for approximately 20.3% (YTD 3QCY18: 22.7%) of the Group's PCB sales. Other products (including computer & peripherals, consumer electronics and industrial related products) accounted for 34.6% (YTD 3QCY18: 30.7%) of the Group's PCB sales. High Density Interconnect ("HDI") PCB accounted for approximately 22.1% (YTD 3QCY18: 25.0%) of the Group's total PCB sales in YTD 3QCY19.

LIQUIDITY AND CAPITAL RESOURCES

As at 30 September 2019, the Group's net current assets was approximately US$10.6 million (31 December 2018: approximately US$7.9 million), making the current ratio 1.04 as compared to 1.03 as at 31 December 2018. The net working capital cycle was 37 days as at 30 September 2019 (31 December 2018: 36 days) based on the following key metrics:

• Inventories, in terms of stock turnover days, increased to 27 days (31 December 2018: 25 days).
• Trade receivables, in terms of debtors' turnover days, increased to 118 days (31 December 2018: 107 days).
• Trade payables, in terms of creditors' turnover days, increased to 108 days (31 December 2018: 96 days).

21

The Group's net gearing ratio (ratio of interest bearing borrowings net of cash and cash equivalents to total equity) as at 30 September 2019 was approximately 20.6% (31 December 2018: approximately 20.5%). The proportion of short-term and long-term bank borrowings stood at 56%: 44% (31 December 2018: 51%: 49%). The total equity of the Group as at 30 September 2019 was approximately US$423.7 million (31 December 2018: approximately US$409.9 million). As at 30 September 2019, the Group had cash on hand and undrawn loan facilities of approximately US$29.5 million and US$55.3 million, respectively. The Group's transactions and monetary assets are principally denominated in United States dollars, Renminbi and Hong Kong dollars, and the Group is subject to risks associated with fluctuations in exchange rate between Renminbi and other currencies in which the Group conducts its businesses.

HUMAN RESOURCES

As at 30 September 2019, the Group had approximately 8,600 employees (31 December 2018: 8,400). Salaries of employees are maintained at a competitive level and are reviewed annually, with reference to the relevant labour market as well as the minimum wage guideline, as prescribed by the relevant local government from time to time. The Group awards discretionary bonuses to eligible employees based upon profit target achievements of the Company and individual performance. The Company has adopted an employees' share option scheme this year in order to, among other purposes, attract and retain the best available personnel and to align employees' individual interests with the Group's interests.

PROSPECTS

The Group has made continual investments into the 5G area, and has upgraded its production facilities to expand production capacity and optimise product performance so as to welcome the arrival of the new 5G telecommunication era. Currently, as the Group approaches the last quarter of the year, the Group's sales and marketing team has commenced negotiations with its customers on order allocations for the coming year. The Group is confident that it will be able to obtain more orders and capture a higher market share in its target market segments.

22

AUDIT OR REVIEW OF THE FINANCIAL RESULTS

The figures for 3QCY19 and YTD 3QCY19, prepared in accordance with SFRS(I), have not been audited or reviewed by the Group's auditors.

FORECAST STATEMENT

No forecast statement has been previously disclosed to the shareholders of the Company.

DISCLOSURE ON THE WEBSITE OF THE EXCHANGES

This announcement shall be published on the website of SGX (http://www.sgx.com), the SEHK (http://www.hkexnews.hk) and on the Company's website (http://www.eleceltek.com).

APPRECIATION

On behalf of the Board, we would like to take this opportunity to express our gratitude to our employees around the world for their continued loyalty, diligence and unreserved support to the Group.

23

INTERESTED PERSONS TRANSACTIONS

Interested persons transactions carried out during the reporting period, which fall under Chapter 9 of the SGX Listing Manual, are as follows:

	Aggregate value of all interested persons
	transactions during the financial period
		under review (including transactions		Aggregate value of all interested
		of less than S$100,000 and excluding	persons transactions conducted under a
		transactions conducted under a	shareholders' mandate pursuant to Rule
	shareholders' mandate pursuant to Rule	920 (including transactions of less than
Name of Interested Person	920)					S$100,000)
US$' 000		YTD 3QCY19	YTD 3QCY18		YTD 3QCY19	YTD 3QCY18
Purchases of plant and equipment
Chung Shun Laminates (Macao Commercial
Offshore) Limited		-	-	8,203					9,091
		-	-	8,203		9,091
Purchases of goods and services
Chung Shun Laminates (Macao Commercial
Offshore) Limited		-	-	108,171		81,607
Delta Realty Limited	132			62				-	-
Heng Yang Kingboard Chemical Co., Ltd.		-	-	1,681		1,795
Hong Kong Fibre Glass Company Limited		-	-	20,627		21,168
Huizhou Chung Shun Chemical Co., Ltd.		-	-	885		1,525
	132			62	131,364		106,095
Provision of goods and services
Chung Shun Laminates (Macao Commercial
Offshore) Limited		-	-	3,412		3,194
Express Electronics Ltd		-	-	136		1
Techwise (Macao Commercial Offshore)
Circuits Limited		-	-	11,468		17,023
		-	-	15,016		20,218

24

CONFIRMATION OF DIRECTORS' AND EXECUTIVE OFFICERS' UNDERTAKINGS PURSUANT TO LISTING RULE 720(1) OF THE SGX LISTING MANUAL

The Company confirms that it has procured the undertakings required under Rule 720(1) of the SGX Listing Manual from all its directors and executive officers, in the form set out in Appendix 7.7 of the SGX Listing Manual.

CONFIRMATION BY THE BOARD

We, Stephanie Cheung Wai Lin and Chang Wing Yiu, being two of the Directors, do hereby confirm on behalf of the Board that, to the best of the Board's knowledge, nothing has come to the attention of the Board which may render the unaudited financial results for the third quarter and nine months ended 30 September 2019 as set out in this announcement to be false or misleading.

On behalf of the Board of Directors
Stephanie Cheung Wai Lin	Chang Wing Yiu
Executive Director	Executive Director
	By order of the Board
	Elec & Eltek International Company Limited
	依利安達集團有限公司*
	Stephanie Cheung Wai Lin
	Chairman
Hong Kong, 8 November 2019

As at the date of this announcement, the Board of the Company comprises the following Directors:

Executive Directors:-	Independent Non-executive Directors:-
Stephanie Cheung Wai Lin	Stanley Chung Wai Cheong
Chang Wing Yiu	Ong Shen Chieh
	Kong Tze Wing

• For identification purpose only

25