Naim Berhad : Q4 FY2021

NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FOURTH QUARTER ENDED 31 DECEMBER 2021

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the fourth quarter and twelve months ended 31 December 2021

(The figures have not been audited)

		CURRENT QUARTER	CUMULATIVE QUARTER
		3 months ended	12 months ended
		31 December	31 December
		2021	2020	2021	2020
		RM'000	RM'000	RM'000	RM'000
Revenue		169,223	402,900	427,816	589,295
Cost of sales		(147,000)	(260,926)	(386,352)	(437,301)
Gross profit		22,223	141,974	41,464	151,994
Other operating income		2,802	122	6,482	19,410
Selling and promotional expenses		(1,013)	(1,199)	(3,909)	(4,746)
Administrative expenses		(5,401)	(3,418)	(18,993)	(24,268)
Other operating expenses		(2,343)	(20,999)	(10,435)	(26,339)
Results from operating activities		16,268	116,480	14,609	116,051
Finance income		2,607	2,990	9,758	9,422
Finance costs		(3,190)	(4,334)	(12,151)	(20,928)
Net finance costs		(583)	(1,344)	(2,393)	(11,506)
Other non-operating expense		(37)	(101)	(2,004)	(7,701)
Share of results (net of tax) of equity-accounted:
- associates		(77,633)	(1,629)	(79,619)	3,475
- joint ventures		127	306	777	873
(Loss)/Profit before tax	Note 21	(61,858)	113,712	(68,630)	101,192
Tax expense	Note 18	(5,138)	(47,336)	(5,598)	(51,571)
(Loss)/Profit for the period/year		(66,996)	66,376	(74,228)	49,621
Other comprehensive income/(expenses), net of tax
Items that will not be reclassified subsequently to
profit or loss
Change in fair value of equity investments designated at fair value
through other comprehensive income		(43)	(8)	(43)	(8)
Items that are or may be reclassified subsequently to
profit or loss
Foreign currency translation differences for foreign operations		(105)	(24)	(5)	(46)
Realisation of reserves to profit or loss arising from deemed
disposal of equity interest in an associate		-	-	(1,344)	-
Share of other comprehensive (expenses)/income of associates		(651)	(7,464)	7,839	(3,718)
Other comprehensive (expenses)/income for the period/year		(799)	(7,496)	6,447	(3,772)
Total comprehensive (expenses)/income for the period/year		(67,795)	58,880	(67,781)	45,849
(Loss)/Profit attributable to:
Owners of the Company		(68,543)	70,103	(75,958)	53,537
Non-controlling interests		1,547	(3,727)	1,730	(3,916)
(Loss)/Profit for the period/year		(66,996)	66,376	(74,228)	49,621
Total comprehensive (expenses)/income attributable to:
Owners of the Company		(69,342)	62,607	(69,511)	49,765
Non-controlling interests		1,547	(3,727)	1,730	(3,916)
Total comprehensive (expenses)/income for the period/year		(67,795)	58,880	(67,781)	45,849
Basic (loss)/earnings per ordinary share (EPS) attributable
to owners of the Company (sen)	Note 9	(13.69)	14.00	(15.17)	10.69

The notes set out on pages 5 to 24 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 2020.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FOURTH QUARTER ENDED 31 DECEMBER 2021

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2021

(The figures have not been audited)	Unaudited	Audited
	31 December	31 December
	2021	2020
	RM'000	RM'000
ASSETS
Property, plant and equipment	124,879	132,892
Interests in associates	396,062	475,395
Interests in joint ventures	1,904	2,412
Inventory - Land held for property development	172,242	172,242
Investment properties	76,086	78,152
Intangible assets	794	1,475
Deferred tax assets	2,396	4,433
Other investments	3,028	3,071
Trade and other receivables	46,268	60,463
Total non-current assets	823,659	930,535
Inventories	549,053	589,771
Contract costs	4,883	4,938
Contract assets	46,127	39,580
Trade and other receivables	126,996	133,253
Deposits and prepayments	8,179	6,855
Current tax recoverable	1,103	1,279
Cash and cash equivalents	290,172	353,313
	1,026,513	1,128,989
Assets classified as held for sale	82	82
Total current assets	1,026,595	1,129,071
Total assets	1,850,254	2,059,606
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)
813,478	928,680
1,233,532	1,348,734
21,768	15,906
1,255,300	1,364,640
68,459	95,752
22,097	23,037
90,556	118,789
200,358	218,117
292,326	324,295
5,566	15,940
3,472	3,539
2,676	14,286
504,398	576,177
594,954	694,966
1,850,254	2,059,606

2.402.63

The notes set out on pages 5 to 24 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 2020.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FOURTH QUARTER ENDED 31 DECEMBER 2021

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the fourth quarter and twelve months ended 31 December 2021

(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 12 months ended 31 December 2020 (Audited)

At 1 January 2020	454,802
Foreign currency translation differences for foreign operations	-
Change in fair value of equity investments designated at FVOCI	-
Share of other comprehensive income of associates	-
Total other comprehensive expense for the year	-
Profit/(Loss) for the year	-
Total comprehensive (expenses)/income for the year	-
Distributions to the owners of the Company
- Dividends paid to the owners of the Company	-
At 31 December 2020	454,802
For the 12 months ended 31 December 2021 (Unaudited)
At 1 January 2021	454,802
Foreign currency translation differences for foreign operations	-
Realisation of reserves to profit or loss arising from deemed disposal
of equity interest in an associate	-
Change in fair value of equity investments designated at FVOCI	-
Share of other comprehensive income of associates	-
Total other comprehensive income/(expenses) for the year	-
(Loss)/Profit for the year	-
Total comprehensive income/(expenses) for the year	-
Changes in ownership interests in a subisidiary	-
Distributions to the owners
- Dividends paid to the owners of the Company	-
- Dividends paid to non-controlling interests	-
At 31 December 2021	454,802

9,936	(34,748)	174	918,379	1,348,543	19,822	1,368,365
(46)	-	-	-	(46)	-	(46)
-	-	(8)	-	(8)	-	(8)
(3,718)	-	-	-	(3,718)	-	(3,718)
(3,764)	-	(8)	-	(3,772)	-	(3,772)
-	-	-	53,537	53,537	(3,916)	49,621
(3,764)	-	(8)	53,537	49,765	(3,916)	45,849
-	-	-	(49,574)	(49,574)	-	(49,574)
6,172	(34,748)	166	922,342	1,348,734	15,906	1,364,640
6,172	(34,748)	166	922,342	1,348,734	15,906	1,364,640
(5)	-	-	-	(5)	-	(5)
(1,344)	-	-	-	(1,344)	-	(1,344)
-	-	(43)	-	(43)	-	(43)
7,839	-	-	-	7,839	-	7,839
6,490	-	(43)	-	6,447	-	6,447
-	-	-	(75,958)	(75,958)	1,730	(74,228)
6,490	-	(43)	(75,958)	(69,511)	1,730	(67,781)
-	-	-	(6,132)	(6,132)	6,132	-
-	-	-	(39,559)	(39,559)	-	(39,559)
-	-	-	-	-	(2,000)	(2,000)
12,662	(34,748)	123	800,693	1,233,532	21,768	1,255,300

The notes set out on pages 5 to 24 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 2020.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FOURTH QUARTER ENDED 31 DECEMBER 2021

CONSOLIDATED STATEMENT OF CASH FLOWS

For the fourth quarter and twelve months ended 31 December 2021

(The figures have not been audited)	Unaudited	Audited
	31 December	31 December
	2021	2020
	RM'000	RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss)/Profit before tax	(68,630)	101,192
Adjustments for:
Amortisation of:
- intangible asset	680	680
- investment properties	2,126	2,125
Change in fair value of equity investments designated at FVOCI	43	8
Depreciation of property, plant and equipment	9,399	9,038
Dividend income from unquoted shares	(42)	(249)
Finance income	(9,758)	(9,422)
Finance costs	12,151	20,928
(Gain)/Loss on disposal of:
- associate	-	(8)
- property, plant and equipment	(511)	(4,057)
- investment properties	-	66
- assets held for sale	-	(9,729)
- deemed disposal of associates	2,004	7,701
Property, plant and equipment written off	4	32
Net change in impairment loss on financial assets and contract assets	1,348	6,658
Impairment loss on:
- property, plant and equipment	-	3,323
- intangible asset	-	1,361
Inventories written down	-	554
Share of results of equity-accounted:
- associates	79,619	(3,475)
- joint ventures	(777)	(873)
Unrealised foreign exchange gain	(159)	(129)
Operating profit before changes in working capital	27,497	125,724
Changes in working capital:
Inventories	41,004	219,847
Contract assets/liabilities	(16,922)	66,275
Contract cost	105	(340)
Trade and other receivables, deposits and prepayments	17,616	(20,072)
Trade and other payables	(31,602)	(12,865)
Provisions	(67)	(75)
Cash generated from operations	37,631	378,494
Net income taxes paid	(16,179)	(31,332)
Net cash from operating activities	21,452	347,162
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of:
- property, plant and equipment	(1,014)	(1,385)
- investment properties	(59)	-
Proceeds from disposal of:
- property, plant and equipment	512	7,664
- assets held for sale	-	3,341
- an associate	-	15
Changes in pledged deposits	(58)	(176)
Distribution of profit received from a joint venture	1,530	1,020
Dividends received	4,247	249
Interest received	9,922	9,829
Net cash from investing activities	15,080	20,557
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid to the:
- owners of the Company	(39,559)	(49,574)
- non-controlling interests	(2,000)	-
Net repayments of loans and borrowings	(45,779)	(169,684)
Net repayment of finance lease liabilities	(28)	(16)
Interest paid	(12,524)	(21,808)
Net cash used in financing activities	(99,890)	(241,082)
Net (decrease)/increase in cash and cash equivalents	(63,358)	126,637
Effects of exchange rate changes on cash and cash equivalents	159	(83)
Cash and cash equivalents at beginning of year	337,950	211,396
CASH AND CASH EQUIVALENTS AT END OF YEAR	274,751	337,950
Representing by:
Deposits with licensed banks with maturities less than three months, net of deposits pledged	227,067	289,228
Cash in hand and at banks	47,684	48,722
Total cash and cash equivalents as shown in statement of cash flows	274,751	337,950

The notes set out on pages 5 to 24 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 2020.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE FOURTH QUARTER ENDED 31 DECEMBER 2021

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 year ended 31 December 2021 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 2020. 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 2020.
   The annual financial statements of the Group as at and for the year ended 31 December 2020 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 2020, except as explained below.
   During the current year under review, the Group has adopted the following accounting standards and amendments which are effective for annual periods beginning on and after 1 June 2020 and 1 January 2021:
3. • Amendments to MFRS 16, Leases - Covid-19-Related Rent Concessions
   • Amendments to MFRS 9, Financial Instruments, MFRS 139, Financial Instruments: Recognition and Measurement, MFRS 7, Financial Instruments: Disclosures, MFRS 4, Insurance Contracts and MFRS 16, Leases - Interest Rate Benchmark Reform - Phase 2

The adoption of the above MFRS standards and associated amendments did not have any material financial impact on the financial statements of the Group.

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