Old Chang Kee : Financial Statements And Related Announcement - Full Yearly Results

OLD CHANG KEE LTD.

(Company Registration No.: 200416190W)

(Incorporated in the Republic of Singapore on 16 December 2004)

FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT

FOR THE YEAR ENDED 31 MARCH 2021

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

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.
Consolidated statement of comprehensive income
				The Group				The Group
			2H2021	2H2020	+/(-)		FY2021	FY2020	+/(-)
			S$'000	S$'000	%		S$'000	S$'000	%
Revenue			37,138	43,424	(14.5)		75,319	88,040	(14.4)
Cost of sales			(12,918)	(15,698)	(17.7)		(25,888)	(31,998)	(19.1)
Gross profit			24,220	27,726	(12.6)		49,431	56,042	(11.8)
Other items of income
Interest income on short term deposits		15	54	(72.2)		45	106	(57.5)
Other income			2,880	712	304.5		7,326	1,192	514.6
Other items of expenses
Selling and distribution expenses		(16,020)	(19,616)	(18.3)		(30,575)	(39,048)	(21.7)
Administrative expenses		(6,291)	(5,616)	12.0		(13,615)	(11,687)	16.5
Finance costs		(318)	(460)	(30.9)		(682)	(958)	(28.8)
Other expenses		(1,444)	(2,990)	(51.7)		(1,953)	(3,771)	(48.2)
Profit before tax and share of results of joint venture		3,042	(190)	(1,701.1)		9,977	1,876	431.8
Share of results of joint venture		-	(17)	(100.0)		-	(160)	NM
Profit before tax		3,042	(207)	(1,569.6)		9,977	1,716	481.4
Income tax expense		(440)	(498)	(11.6)		(1,241)	(867)	43.1
Profit for the period/year
	2,602	(705)	(469.1)		8,736	849	929.0
Other comprehensive income
Exchange differences on translating foreign		(65)	77	(184.4)		(202)	122	(265.6)
operations
Other comprehensive income for the period/year,		(65)	77	(184.4)		(202)	122	(265.6)
net of tax
Other comprehensive income for the period/year,		2,537	(628)	(504.0)		8,534	971	778.9
net of tax

NM: Not meaningful

Page 1 of 17

1(a)(ii)

Notes to consolidated statement of comprehensive income

1. Profit before tax is arrived at after charging/(crediting) the following:

		The Group			The Group
	2H2021		2H2020	+/(-)	FY2021		FY2020	+/(-)
	S$'000		S$'000	%	S$'000		S$'000	%
Amortisation of intangible assets	8		35	(77.1)	31		70	(55.7)
Depreciation of property, plant and equipment	2,354		2,817	(16.4)	4,802		5,373	(10.6)
Depreciation of right-of-use assets	5,311		5,236	1.4	10,717		9,852	8.8
Impairment loss on
property, plant and equipment	113		271	(58.3)	113		271	(58.3)
right-of-use assets	499		136	266.9	499		136	266.9
Interest income from short-term deposits	(15)		(54)	(72.2)	(45)		(106)	(57.5)
Property, plant and equipment written off	1		196	(99.5)	2		196	(99.0)
Gain on disposal of property, plant and equipment	(169)		-	-	(185)		(10)	1,750.0
Gain on lease modification	(1)		-	-	(17)		-	NM
Interest expense from borrowings and finance lease	55		130	(57.7)	127		282	(55.0)
Interest expense from amortisation of lease liabilities	263		330	(20.3)	555		676	(17.9)
(Gain)/loss in foreign exchange, net	(17)		62	(127.4)	(157)		172	(191.3)
Loss on disposal of investment in unquoted shares	-		-	-	-		74	NM
Impairment of loan and receivables
-amount due from associated company	86		229	(62.4)	86		229	(62.4)
-amount due from joint venture	148		1,350	(89.0)	148		1,350	(89.0)
-trade and other receivables	-		4	(100.0)	-		4	(100.0)

NM: Not meaningful

2.	The major components of taxation comprise:
			The Group			The Group
		2H2021		2H2020	+/(-)	FY2021		FY2020	+/(-)
		S$'000	S$'000	%	S$'000		S$'000	%
Current income tax
-Current income taxation	474		452	4.9	1,517		1,012	49.9
-under(over) provision in respect of prior year	67		(40)	(267.5)	67		(40)	(267.5)
Deferred income tax
-Movement in temporary differences	(101)		86	(217.4)	(343)		(105)	226.7
Taxation recognised in the consolidated statement
of comprehensive income	440		498	(11.6)	1,241		867	43.1

NM: Not meaningful

Page 2 of 17

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.
		The Group		The Company
		31-03-2021	31-03-2020		31-03-2021		31-03-2020
		S$'000		S$'000		S$'000	S$'000
	Non-Current Assets
	Property, plant and equipment	21,311	25,149		-		-
	Right-of-use assets	19,749	19,344		-		-
	Intangible assets	155	186		-		-
	Investment in subsidiary companies	-	-		5,640		5,640
	Investment in associates and joint venture	-	-		-		-
	Deferred tax assets	10	10		10		10
	Long term deposits	2,517	2,358		-		-
		43,742	47,047		5,650		5,650
	Current Assets
	Inventories	1,046	1,285		-		-
	Trade and other receivables	1,292	2,738		6		159
	Deposits	1,063	1,355		-		-
	Prepayments	1,041	1,085		25		24
	Amount due from subsidiary companies	-	-		4,056		6,385
	Cash and bank balances	25,190	11,749		9,494		3,866
	Restricted cash	2,500	2,500		-		-
		32,132	20,712		13,581		10,434
	Current Liabilities
	Trade and other payables	9,361	8,297		3,561		906
	Other liabilities	147	182		-		-
	Provisions	2,506	2,435		50		47
	Bank loans	1,288	1,222		-		-
	Finance lease liabilities	200	170		-		-
	Lease liabilities	9,636	9,837		-		-
	Provision for taxation	1,498	1,011		40		26
		24,636	23,154		3,651		979
	Net Current Assets/(Liabilities)	7,496	(2,442)		9,930		9,455
	Non-Current Liabilities
	Bank loans	5,385	6,718		-		-
	Finance lease liabilities	309	401		-		-
	Lease liabilities	11,012	9,931		-		-
	Deferred tax liabilities	818	1,161		-		-
		17,524	18,211		-		-
	Net Assets
	33,714	26,394		15,580		15,105
	Equity attributable to owners of the
	Company
	Share capital	13,964	13,964		13,964		13,964
	Retained earnings	19,735	12,213		1,616		1,141
	Other reserves	15	217		-		-
	Total Equity
	33,714	26,394		15,580		15,105

Page 3 of 17

1(b)(ii)	In relation to the aggregate amount of group's borrowings and debt securities, specify the following as
	at the end of the current financial period reported on with comparative figures as at the end of the
	immediately preceding financial year.
	Amount repayable in one year or less, or on demand
		As at 31-03-2021	As at 31-03-2020
		Secured	Unsecured	Secured	Unsecured
		S$'000	S$'000	S$'000	S$'000
		1,488	-	1,392	-
	Amount repayable after one year
		As at 31-03-2021	As at 31-03-2020
		Secured	Unsecured	Secured	Unsecured
		S$'000	S$'000	S$'000	S$'000
		5,694	-	7,119	-
	Details of any collateral

The Group's borrowings are secured as follows:

1. Bank loans are secured by:
2. 1. a first legal mortgage on freehold and leasehold properties owned by the Group's wholly owned subsidiary companies as at 31 March 2021; and
   2. corporate guarantees by the Company as at 31 March 2021.
3. Finance lease obligations are secured by the lessors' title to the respective leased assets.

'

Page 4 of 17

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.

Cash flows from operating activities Profit//(loss) before tax Adjustments for:

Impairment loss on trade receivables Impairment loss on amount due from associate Impairment loss on amount due from joint venture Impairment loss for investment in unquoted shares Amortisation of intangible assets

Depreciation of property, plant and equipment Depreciation of right-of-use assets

Gain on disposal of property, plant and equipment Gain on lease modification

Impairment loss on property, plant and equipment Impairment loss on right-of-use assets Property, plant and equipment written off Share of results of joint venture

Interest expense from borrowings and finance lease Interest expense from amortisation of lease liabilities Interest income

Currency realignment

Operating profit before changes in working capital (Increase)/decrease in inventories Decrease/(increase) in trade and other receivables Increase in amount due from associates

Increase in amount due from joint venture (Increase)/decrease in deposits Decrease/(increase) in prepayments (Decrease)/increase in trade and other payables (Decrease)/increase in other liabilities Increase/(decrease) in provisions

Cash flows from operations Tax paid

Net cash flows from operating activities

Cash flows from investing activities Purchase of property, plant and equipment Purchase of intangible asset

Proceeds from disposal of property, plant and equipment

Proceeds from disposal of unquoted shares Loan to joint venture

Interest received

Net cash flows used in investing activities

The Group		The Group
2H2021	2H2020		FY2021	FY2020
S$'000	S$'000		S$'000	S$'000
3,042	(207)	9,977	1,716
-	4	-	4
86	229	86	229
148	1,350	148	1,350
-	74	-	74
8	35	31	70
2,354	2,817	4,802	5,373
5,311	5,236	10,717	9,852
(169)	-	(185)	(10)
(1)	-	(17)	-
113	271	113	271
499	136	499	136
1	196	2	196
-	17	-	160
55	130	127	282
263	330	555	676
(15)	(54)	(45)	(106)
(30)	71	(169)	136
11,665	10,635	26,641	20,409
(136)	55	239	(188)
322	(2,398)	1,430	(2,390)
(45)	(45)	(86)	(98)
(14)	(28)	(38)	(39)
(98)	(170)	133	(389)
586	152	44	(72)
(845)	667	1,064	806
(11)	4	(35)	6
24	(131)	(10)	(109)
11,448	8,741	29,382	17,936
(713)	(619)	(1,097)	(1,282)
10,735	8,122	28,285	16,654
(1,055)	(1,115)	(1,276)	(2,314)
-	-	-	(28)
540	2	571	12
-	160	-	160
(110)	(560)	(110)	(817)
15	38	61	90
(610)	(1,475)	(754)	(2,897)

Page 5 of 17