Financial Statements and Related Announcement::Full Yearly Results

ST GROUP FOOD INDUSTRIES HOLDINGS LIMITED

(Incorporated in the Republic of Singapore on 11 January 2018)

(Company Registration Number: 201801590R)

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS AND FULL YEAR ENDED 30 JUNE ("FY") 2021

This announcement has been prepared by ST Group Food Industries Holdings Limited (the "Company") and its contents have been reviewed by the Company's sponsor, United Overseas Bank Limited (the "Sponsor"), for compliance with Rules 226(2)(b) and 753(2) of the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Manual Section B: Rules of Catalist.

This announcement has not been examined or approved by the SGX-ST. The SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr David Tham, Senior Director, Equity Capital Markets, who can be contacted at 80 Raffles Place, #03-03 UOB Plaza 1, Singapore 048624, Telephone: [phone].

Unless otherwise defined, capitalised terms used in this announcement shall have the same meaning ascribed to them in the offer document of ST Group Food Industries Holdings Limited dated 26 June 2019 (the "Offer Document").

Background

ST Group Food Industries Holdings Limited (the "Company", and together with its subsidiaries, "ST Group" or the "Group") was incorporated in the Republic of Singapore on 11 January 2018 and was listed on the Catalist Board of the SGX-ST ("Catalist") on 3 July 2019. ST Group was formed pursuant to a restructuring exercise (the "Restructuring Exercise") undertaken as part of its corporate re- organisation, which involved the rationalisation of its corporate and shareholding structure for the purposes of the Company's listing on Catalist. Please refer to the Company's Offer Document for further details on the Restructuring Exercise.

Founded in 2011, ST Group holds the exclusive franchise and licence rights to six internationally popular food and beverage ("F&B") brands, namely, "PappaRich", "NeNe Chicken", "Gong Cha", "Hokkaido Baked Cheese Tart", "IPPUDO" and "iDarts", in various territories. ST Group has developed two of its own brand concepts, "PAFU" and "KURIMU", which were launched in December 2017 and July 2019, respectively. ST Group had also opened a "Go Noodle House" outlet in Melbourne, Australia in November 2020.

ST Group operates in the key geographical markets of Australia, New Zealand, Malaysia and United Kingdom through four main business segments - F&B retail sales under the various brands through outlets owned and operated by the Group, the sub-franchising and sub-licensing of brands to sub- franchisees and sub-licensees, the sale of F&B ingredients and other supplies to its franchise network through its Central Kitchen, and receipt of machine income from electronic dart machines installed at sub-franchised "iDarts" outlets.

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As at 30 June 2021, ST Group has a network of 130 outlets comprising 48 Group-owned outlets and 82 outlets owned and operated by its sub-franchisees and sub-licensees across its key geographical markets.

Number of outlets by brands (as at the end of the financial year)

		FY2021			FY2020
		Owned	Sub-franchised/		Owned		Sub-franchised/
		sub-licensed			sub-licensed
PappaRich
- Australia	8	25	7	22
- New Zealand	-	4	-	5
NeNe Chicken
- Australia	4	18	2	16
- Malaysia	-	5	4	6
Gong Cha
- New Zealand	11	12	10	7
- United Kingdom	4	-	2	-
Hokkaido Baked Cheese Tart
- Australia	7	8	8	7
iDarts
- Australia	-	4	-	5
PAFU
- Australia	5	4	6	4
IPPUDO
- Australia	2	-	2	-
- New Zealand	2	-	1	-
KURIMU
- Australia	4	2	2	-
Go Noodle House
- Australia	1	-	-	-
Total	48	82	44	72

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Table of Contents
A. Condensed interim consolidated statements of comprehensive income	.... 4
B.	Condensed interim statements of financial position......................................	7
C. Condensed interim statements of changes in equity .....................................	9
D. Condensed interim consolidated statement of cash flows ..........................	12
E. Notes to the condensed interim consolidated financial statements ...........	14
F.	Other information required under Appendix 7C of the Catalist Rules ........	30

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1. Condensed interim consolidated statements of comprehensive income

				Group
		2H	2H	Increase/	FY2021	FY2020	Increase/
		FY2021(1)	FY2020(2)
	Note	(AUD)	(AUD)	(Decrease)	(AUD)	(AUD)	(Decrease)
		(Unaudited)	(Unaudited)	%	(Unaudited)	(Restated)	%
Continuing operations
Revenue	4.2	24,261,403	14,463,342	67.7	44,883,352	42,219,067	6.3
Other income		1,215,369	3,422,579	(64.5)	3,447,641	4,253,707	(18.9)
Expenses
Changes in inventories		608,289	(290,833)	NM	76,750	752,665	(89.8)
Purchases of inventories		(7,987,160)	(4,147,923)	92.6	(14,016,885)	(12,819,773)	9.3
Franchise restaurants and
stores related
establishment costs		(739,907)	(152,250)	NM	(1,426,753)	(875,066)	63.0
Rental expenses		(74,179)	124,700	NM	437,121	(373,726)	NM
Staff costs		(8,705,162)	(7,185,617)	21.1	(15,651,905)	(16,597,926)	(5.7)
Depreciation expense
- Property, plant and
equipment		(1,531,302)	(1,284,224)	19.2	(2,832,912)	(2,559,392)	10.7
- Right-of-use assets		(2,647,590)	(2,500,175)	5.9	(5,063,370)	(4,595,970)	10.2
Amortisation expense		(260,094)	(187,169)	39.0	(396,026)	(328,627)	20.5
IPO expenses		-	(9,789)	NM	-	(247,896)	NM
Finance costs
- Lease liabilities		(716,322)	(750,327)	(4.5)	(1,403,728)	(1,430,479)	(1.9)
- Borrowings and others		(35,701)	(7,221)	NM	(79,501)	(86,706)	(8.3)
Impairment losses on
right-of-use assets		(158,199)	-	NM	(158,199)	-	NM
Impairment losses on
trade and other
receivables		(112,951)	(154,388)	(26.8)	(112,951)	(154,388)	(26.8)
Other expenses		(2,263,177)	(2,613,813)	(13.4)	(5,291,883)	(5,249,988)	0.8
Share of results of
associated company		20,889	-	NM	20,889	-	NM
Profit/(loss) before tax		874,206	(1,273,108)	NM	2,431,640	1,905,502	27.6
Tax (expense)/credit	6	(207,601)	169,767	NM	(841,853)	(618,892)	36.0
Profit/(loss) from
continuing operations,
net of tax		666,605	(1,103,341)	NM	1,589,787	1,286,610	23.6
Loss from discontinued
operations, net of tax		(123,684)	(759,371)	(83.7)	(865,143)	(1,051,122)	(17.7)
Profit/(loss) for the
period/year	5	542,921	(1,862,712)	NM	724,644	235,488	NM

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			Group
	2H	2H	Increase/	FY2021	FY2020	Increase/
	FY2021(1)	FY2020(2)
Note	(AUD)	(AUD)	(Decrease)	(AUD)	(AUD)	(Decrease)
	(Unaudited)	(Unaudited)	%	(Unaudited)	(Restated)	%
Other comprehensive
(loss)/income
Item that is or may be
reclassified
subsequently to profit
or loss:
- Currency translation
differences on
consolidation	(57,953)	39,005	NM	46,837	45,609	2.7
Item that will not be
reclassified
subsequently to profit
or loss:
- Financial assets at fair
value through other
comprehensive income
("FVOCI") - Fair value
loss - equity instrument	-	(63,888)	NM	-	(63,888)	NM
Other comprehensive
(loss)/income for the
period/year, net of tax	(57,953)	(24,883)	NM	46,837	(18,279)	NM
Total comprehensive
income/(loss) for the
period/year	484,968	(1,887,595)	NM	771,481	217,209	NM
Profit/(loss) attributable
to:
Equity holders of the
Company	684,878	(1,034,818)	NM	1,129,969	848,858	33.1
Non-controlling interests	(141,957)	(827,894)	(82.9)	(405,325)	(613,370)	(33.9)
Profit/(loss) for the
period/year	542,921	(1,862,712)	NM	724,644	235,488	NM
Profit/(loss) attributable
to equity holders of
the Company relates
to:
Profit/(loss) from
continuing operations	853,118	(662,350)	NM	1,612,191	1,379,578	16.9
Loss from discontinued
operations	(168,240)	(372,468)	(54.8)	(482,222)	(530,720)	(9.1)
	684,878	(1,034,818)	NM	1,129,969	848,858	33.1
Total comprehensive
income/(loss)
attributable to:
Equity holders of the
Company	626,925	(1,027,757)	NM	1,176,806	862,523	36.4
Non-controlling interests	(141,957)	(859,838)	(83.5)	(405,325)	(645,314)	(37.2)
Total comprehensive
income/(loss) for the
period/year	484,968	(1,887,595)	NM	771,481	217,209	NM

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