Sinjia Land Limited

Email This Print ThisFinancials

Half Year Financial Statement And Dividend Announcement 2015

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

HALF YEAR FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR PERIOD ENDED 30 JUNE 2015 (UNAUDITED)

Income Statement

Review of Performance

The principal historical activities of our Group involve the manufacture and sale of a wide range of customised precision elastomeric, polymeric and metallic components which are used in a variety of industries principally in office automation, lifestyle products, industrial application, consumer electronics and automotive industries.

For new development of the Group's activities, please refer to paragraph 10 of this announcement.

Income Statement

Group revenue achieved for 1H2015 was $7.62 million, an increase of 5.2% or $0.38 million higher than revenue for 1H2014 of $7.24 million mainly due to the contribution from the key customers from the Elastomeric business units in Malaysia.

Gross profit for 1H2015 grew by 9.2% or $0.20 million to $2.39 million on the back of improved revenue and higher gross margin recorded in 1H2015. The overall gross profit margin for 1H2015 was 31.4% compared to 30.2% for 1H2014.

Distribution costs and administrative expenses declined by 3.6% in 1H2015 to $3.50 million from $3.63 million in 1H2014 mainly due to decrease of staff related cost, depreciation, recruitment expenses offset by increase in travelling expenses, legal fees, rental fee. Finance costs of $0.17 million for 1H2015 were $0.15 million higher than 1H2014 largely due to the interest incurred for the debenture loan, term loan, revolving credit facilities and the hire purchase interest for motor vehicles.

The Group recorded other charges of $0.34 million in 1H2015 (1H2014: $0.29 million) mainly due to the fair value adjustment on the bank borrowings of $20,000 (1H2014: NIL), foreign exchange loss of $197,000 (1H2014: $79,000), provision for doubtful debt of $47,000 (1H2014: NIL) and write-down in inventories of $72,000 (1H2014: $149,000). In 1H2014, the Group also recorded loss on disposal of plant and equipment of $23,000, the plant and equipment written off of $30,000 and provision for obsolete stock of $5,000.

Other credits in 1H2015 amounted to $0.75 million compared to $0.59 million in 1H2014 largely due to gain on disposal of power generation system equipment of $0.66 million in Myanmar, operating lease income from Process Innovation Technology SE Asia Pte Ltd of $80,000 (1H2014: $80,000), Government Grants of $8,000 (1H2014: $44,000) and reversal for impairment on trade and other receivables of $4,000 (1H2014: $6,000). In 1H2014, the Group also recorded rental income of $5,000 and forfeiture of the deposit of $0.45 million.

In 1H2015, the Group reported a loss before tax of $0.74 million compared to the loss before tax of $1.15 million in 1H2014 and a loss after tax of $0.98 million (1H2014: $1.29 million).

The Group posted a loss attributable to equity holders of the Company of $0.90 million in 1H2015 compared to a loss of $1.21 million in 1H2014.

Financial Position

Non-current Assets

As at 30 June 2015, the total non-current assets of the Group decreased by $1.79 million to $14.32 million compared to $16.11 million as at 31 December 2014 mainly due to the depreciation of plant and equipment of $0.38 million and the foreign currency translation loss for plant and equipment in overseas operations of $77,000; offset by the purchase of new plant and equipment of $0.29 million and assets under construction of $0.72 million and gain on disposal of plant and equipment of $0.66 million .

Current Assets

The Group's current assets amounted to $20.73 million as at 30 June 2015, a decrease of $4.51 million compared to 31 December 2014. Inventories decreased by $0.08 million and trade and other receivables decreased by $1.48 million due to better cash flow management by elastomeric business unit.

Cash and cash equivalents decreased by $2.86 million mainly due to the payment for finance leases & borrowings of $7.01 million, purchase of new plant and equipment of $0.29 million and assets under construction of $0.66 million, offset against the new increase of bank borrowings of $1.29 million and cash inflow for disposal of plant and equipment $3.0 million.

Total Liabilities

Total liabilities of the Group as at 30 June 2015 decreased by $5.04 million to $14.75 million compared to $19.79 million as at 31 December 2014. During the period, the Group has repaid its bank borrowings of approximately $7.01 million offset against the additional borrowings of $1.29 million. The Group has also paid the income tax of $0.32 million.

Trade and other payables of $12.40 million was recorded as at 30 June 2015, an increase of $0.79 million mainly due to increase orders from suppliers of elastomeric business unit.

Deferred tax as at 30 June 2015 decreased by $0.01 million mainly due to the foreign currency translation gain in overseas operations.

Total Equity

The equity decreased by $1.26 million to $20.29 million as at 30 June 2015 from $21.55 million as at 31 December 2014. While retained earnings decreased by $0.90 million during the year, the increase in losses from foreign currency translation reserve which mainly due to the depreciation of the MYR & IDR against SGD and the appreciation of the RMB against SGD and loss attributable to non-controlling interest reduced the effect of higher retained earnings on total equity.

Commentary

The Group faces rising cost pressures due to the increase in minimum wages in the countries of operations in the PRC, Indonesia and Malaysia during the financial year.

The Group has implemented various measures to stay lean and cash flow positive in order to stay competitive for the challenging business environment.

The board is of the view that at this juncture, given the uncertain global economic outlook, it will be more prudent to focus on the existing business to ensure a steady income for the Group.

Sinjia Land has, and will continue to explore new business opportunities and further develop existing businesses to enhance the proftability of the Group.

Balance Sheet

balance sheet