Naim Berhad : Q1 FY2022

NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FIRST QUARTER ENDED 31 MARCH 2022

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the first quarter and three months ended 31 March 2022

(The figures have not been audited)

CURRENT QUARTER	CUMULATIVE QUARTER
3 months ended	3 months ended
31 March	31 March

Revenue

Cost of sales

Gross profit

Other operating income
Selling and promotional expenses
Administrative expenses
Other operating expenses
Results from operating activities
Finance income
Finance costs
Net finance costs
Other non-operating expense
Share of results (net of tax) of equity-accounted:
- associates
- joint ventures
Profit/(Loss) before tax	Note 21
Tax expense	Note 18
Profit/(Loss) for the period
Other comprehensive income/(expenses), net of tax
Items that are or may be reclassified subsequently to
profit or loss
Foreign currency translation differences for foreign operations
Realisation of reserves to profit or loss arising from deemed
disposal of equity interest in an associate
Share of other comprehensive income of associates
Other comprehensive income for the period
Total comprehensive income/(expenses) for the period
Profit/(Loss) attributable to:
Owners of the Company
Non-controlling interests
Profit/(Loss) for the period
Total comprehensive income/(expenses) attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income/(expenses) for the period
Basic earnings/(loss) per ordinary share (EPS) attributable
to owners of the Company (sen)	Note 9

2022	2021	2022	2021
RM'000	RM'000	RM'000	RM'000
99,167	83,915	99,167	83,915
(88,735)	(78,202)	(88,735)	(78,202)
10,432	5,713	10,432	5,713
1,568	1,207	1,568	1,207
(879)	(1,150)	(879)	(1,150)
(5,930)	(4,283)	(5,930)	(4,283)
(2,172)	(2,067)	(2,172)	(2,067)
3,019	(580)	3,019	(580)
1,558	2,096	1,558	2,096
(2,538)	(3,191)	(2,538)	(3,191)
(980)	(1,095)	(980)	(1,095)
(16)	(1,943)	(16)	(1,943)
7,352	(7,561)	7,352	(7,561)
251	284	251	284
9,626	(10,895)	9,626	(10,895)
(2,488)	(893)	(2,488)	(893)
7,138	(11,788)	7,138	(11,788)

3	3	3	3
-	(1,344)	-	(1,344)
974	7,179	974	7,179
977	5,838	977	5,838
8,115	(5,950)	8,115	(5,950)
6,900	(11,486)	6,900	(11,486)
238	(302)	238	(302)
7,138	(11,788)	7,138	(11,788)
7,877	(5,648)	7,877	(5,648)
238	(302)	238	(302)
8,115	(5,950)	8,115	(5,950)
1.38	(2.29)	1.38	(2.29)

The notes set out on pages 5 to 21 form an integral part of, and should be read in conjunction with, these condensed consolidated interim financial statements.

The consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the audited financial statements for the year ended 31 December 2021.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FIRST QUARTER ENDED 31 MARCH 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 March 2022

(The figures have not been audited)	Unaudited	Audited
	31 March	31 December
	2022	2021
	RM'000	RM'000
ASSETS
Property, plant and equipment	122,862	124,879
Interests in associates	404,371	396,062
Interests in joint ventures	2,235	1,904
Inventory - Land held for property development	172,242	172,242
Investment properties	75,778	76,086
Intangible assets	624	794
Deferred tax assets	2,405	2,396
Other investments	3,028	3,028
Trade and other receivables	42,268	46,268
Total non-current assets	825,813	823,659
Inventories	566,092	549,053
Contract costs	5,055	4,883
Contract assets	46,886	43,389
Trade and other receivables	100,450	126,996
Deposits and prepayments	8,288	8,179
Current tax recoverable	969	1,103
Cash and cash equivalents	282,942	290,172
	1,010,682	1,023,775
Assets classified as held for sale	82	82
Total current assets	1,010,764	1,023,857
Total assets	1,836,577	1,847,516
EQUITY

Share capital

Treasury shares

Reserves

Total equity attributable to owners of the Company

Non-controlling interests

Total equity
LIABILITIES
Loans and borrowings	Note 8
Deferred tax liabilities
Total non-current liabilities
Loans and borrowings	Note 8
Trade and other payables
Contract liabilities
Provisions
Current tax payable
Total current liabilities
Total liabilities
Total equity and liabilities
Net assets (NA) per ordinary share attributable to owners of the
Company (RM), based on total paid up share capital

454,802	454,802
(34,748)	(34,748)
818,648	810,771
1,238,702	1,230,825
21,975	21,737
1,260,677	1,252,562
61,684	68,459
21,990	22,097
83,674	90,556
198,019	200,358
275,414	292,326
11,128	5,566
3,472	3,472
4,193	2,676
492,226	504,398
575,900	594,954
1,836,577	1,847,516

2.412.40

The notes set out on pages 5 to 21 form an integral part of, and should be read in conjunction with, these condensed consolidated interim financial statements. The consolidated statement of financial position should be read in conjunction with the audited financial statements for the year ended 31 December 2021.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FIRST QUARTER ENDED 31 MARCH 2022

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the first quarter and three months ended 31 March 2022 (The figures have not been audited)

Total equity attributable to owners of the Company

		Non-Distributable			Distributable
		Foreign
		currency
	Share	translation	Treasury	Other		Retained		Non-controlling	Total
	capital	reserve	shares	reserve		earnings	Sub-total	interests	equity
	RM '000	RM '000	RM '000	RM '000		RM '000	RM '000	RM '000	RM '000
For the 3 months ended 31 March 2021 (Unaudited)
At 1 January 2021, audited	454,802	6,172	(34,748)	166	922,342	1,348,734	15,906	1,364,640
Foreign currency translation differences for foreign operations	-	3	-	-	-	3	-	3
Realisation of reserves to profit or loss arising from deemed disposal
of equity interest in an associate	-	(1,344)	-	-	-	(1,344)	-	(1,344)
Share of other comprehensive income of associates	-	7,179	-	-	-	7,179	-	7,179
Total other comprehensive income for the period	-	5,838	-	-	-	5,838	-	5,838
Loss for the period	-	-	-	-	(11,486)	(11,486)	(302)	(11,788)
Total comprehensive income/(expenses) for the period	-	5,838	-	-	(11,486)	(5,648)	(302)	(5,950)
At 31 March 2021	454,802	12,010	(34,748)	166	910,856	1,343,086	15,604	1,358,690
For the 3 months ended 31 March 2022 (Unaudited)
At 1 January 2022, audited	454,802	12,662	(34,748)	123	797,986	1,230,825	21,737	1,252,562
Foreign currency translation differences for foreign operations	-	3	-	-	-	3	-	3
Share of other comprehensive income of associates	-	974	-	-	-	974	-	974
Total other comprehensive income for the period	-	977	-	-	-	977	-	977
Profit for the period	-	-	-	-	6,900	6,900	238	7,138
Total comprehensive income for the period	-	977	-	-	6,900	7,877	238	8,115
At 31 March 2022	454,802	13,639	(34,748)	123	804,886	1,238,702	21,975	1,260,677

The notes set out on pages 5 to 21 form an integral part of, and should be read in conjunction with, these condensed consolidated interim financial statements.

The consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the year ended 31 December 2021.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FIRST QUARTER ENDED 31 MARCH 2022

CONSOLIDATED STATEMENT OF CASH FLOWS

For the first quarter and three months ended 31 March 2022

(The figures have not been audited)	Unaudited	Audited
	31 March	31 March
	2022	2021
	RM'000	RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(Loss) before tax	9,626	(10,895)
Adjustments for:
Amortisation of:
- intangible asset	170	170
- investment properties	531	531
Depreciation of property, plant and equipment	2,229	2,393
Finance income	(1,558)	(2,096)
Finance costs	2,538	3,191
(Gain)/Loss on disposal of:
- property, plant and equipment	-	(62)
- deemed disposal of associate(s)	16	1,943
Net change in impairment loss on financial assets and contract assets	(623)	-
Share of results of equity-accounted:
- associates	(7,352)	7,561
- joint ventures	(251)	(284)
Unrealised foreign exchange gain	(44)	(139)
Operating profit before changes in working capital	5,282	2,313
Changes in working capital:
Inventories	(21,113)	5,948
Contract assets/liabilities	2,065	(13,633)
Contract costs	(172)	(1,202)
Trade and other receivables, deposits and prepayments	35,103	55,089
Trade and other payables	(16,860)	(45,262)
Provisions	-	(2)
Cash generated from operations	4,305	3,251
Net income taxes paid	(1,033)	(10,582)
Net cash from/(used in) operating activities	3,272	(7,331)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of:
- property, plant and equipment	(264)	(242)
- investment properties	(223)	-
Proceeds from disposal of:
- property, plant and equipment	-	62
Changes in pledged deposits	56	(11)
Interest received	1,641	2,328
Net cash from investing activities	1,210	2,137
CASH FLOWS FROM FINANCING ACTIVITIES
Net repayments of loans and borrowings	(9,077)	(2,763)
Net repayment of finance lease liabilities	(37)	(8)
Interest paid	(2,586)	(3,406)
Net cash used in financing activities	(11,700)	(6,177)
Net decrease in cash and cash equivalents	(7,218)	(11,371)
Effects of exchange rate changes on cash and cash equivalents	44	139
Cash and cash equivalents at beginning of period	274,751	337,950
CASH AND CASH EQUIVALENTS AT END OF PERIOD	267,577	326,718
Representing by:
Deposits with licensed banks with maturities less than three months, net of deposits pledged	222,737	275,789
Cash in hand and at banks	44,840	50,929
Total cash and cash equivalents as shown in statement of cash flows	267,577	326,718

The notes set out on pages 5 to 21 form an integral part of, and should be read in conjunction with, these condensed consolidated interim financial statements. The consolidated statement of cash flows should be read in conjunction with the audited financial statements for the year ended 31 December 2021.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FIRST QUARTER ENDED 31 MARCH 2022

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Naim Holdings Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad ("Bursa Securities").

The condensed consolidated interim financial statements of the Group as at and for the period ended 31 March 2022 comprise the Company and its subsidiaries (together referred to as the "Group" and individually referred to as "Group entities") and the Group's interests in associates and joint ventures.

1. Basis of preparation
   These condensed consolidated interim financial statements have been prepared in accordance with the applicable disclosure provisions of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, MFRS 134, Interim Financial Reporting in Malaysia and IAS 134, Interim Financial Reporting.
   The condensed consolidated interim financial statements do not include all of the information required for a complete annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2021. The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December 2021.
   The annual financial statements of the Group as at and for the year ended 31 December 2021 are available upon request from the Company's registered office at 9th floor, Wisma Naim, 2 ½ Mile, Rock Road, 93200 Kuching, Sarawak, Malaysia.
2. Significant accounting policies
   The accounting policies adopted by the Group in preparing the condensed consolidated interim financial statements are consistent with those adopted in the annual financial statements for the year ended 31 December 2021, except as explained below.
   During the current period under review, the Group has adopted the following accounting standards and amendments which are effective for annual periods beginning on and after 1 January 2022:
3. • Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards 2018−2020)
   • Amendments to MFRS 3, Business Combinations - Reference to the Conceptual Framework
   • Amendments to MFRS 9, Financial Instruments (Annual Improvements to MFRS Standards 2018−2020)
   • Amendments to Illustrative Examples accompanying MFRS 16, Leases (Annual Improvements to MFRS Standards 2018 - 2020)

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