09 Nov 2016 Financial Statements and Related Announcement::Third Quarter Results

ENGRO CORPORATION LIMITED (Incorporated in the Republic of Singapore) Co. Reg. No. 197302229H UNAUDITED RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2016 1(a)

CONSOLIDATED INCOME STATEMENT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2016

GROUP
3Q2016	3Q2015	Change	YTD2016	YTD2015	Change
$'000	$'000	%	$'000	$'000	%
Revenue	35,717	40,850	(12.6)	110,153	137,462	(19.9)
Changes in inventories of finished goods and work-in-progress	617	3,884	(84.1)	1,518	(287)	n.m.
Raw materials	(28,140)	(35,279)	20.2	(84,468)	(107,084)	21.1
(Loss)/ gain on disposal of property, plant and equipment	(91)	39	n.m.	320	116	n.m.
(Loss)/ gain on disposal of investments	(3)	45	n.m.	3,472	56	n.m.
Investment income	99	1	n.m.	217	107	n.m.
Interest income	111	69	60.9	762	142	n.m.
Dividend income	48	284	(83.1)	215	447	(51.9)
Other income	482	950	(49.3)	2,082	4,747	(56.1)
Exchange gain/ (loss)	539	1,181	(54.4)	(1,255)	1,177	n.m.
Allowance for doubtful debts and bad debts written off, net	(421)	-	n.m.	(421)	32	n.m.
Depreciation of property, plant and equipment	(1,167)	(1,136)	(2.7)	(3,344)	(3,635)	8.0
Amortisation of intangible assets	(17)	-	n.m.	(24)	-	n.m.
Impairment loss on property, plant and equipment	-	(537)	n.m.	-	(1,540)	n.m.
Allowance for impairment on investments	(96)	(800)	88.0	(1,163)	(813)	(43.1)
Net change in fair value of financial assets held for trading	1,099	(648)	n.m.	(78)	(289)	73.0
Staff costs	(3,659)	(4,278)	14.5	(11,038)	(12,964)	14.9
Rental expenses	(706)	(792)	10.9	(2,234)	(2,123)	(5.2)
Other expenses	(4,502)	(5,329)	15.5	(13,554)	(17,243)	21.4
Interest expense	(111)	(106)	(4.7)	(335)	(319)	(5.0)
(Loss)/ profit before share of profit of associates and joint ventures	(201)	(1,602)	(87.5)	825	(2,011)	n.m.
Share of profit/ (loss) of associates and joint ventures, net of tax	1,780	(635)	n.m.	3,218	543	n.m.
Profit/ (loss) before tax	1,579	(2,237)	n.m.	4,043	(1,468)	n.m.
Tax expense	(116)	(64)	(81.3)	(704)	(543)	(29.7)
Profit/ (loss) for the period	1,463	(2,301)	n.m.	3,339	(2,011)	n.m.
Attributable to:
Equity holders of the Company	1,498	(2,252)	n.m.	3,194	(1,921)	n.m.
Non-controlling interests	(35)	(49)	(28.6)	145	(90)	n.m.
Profit/ (loss) for the period	1,463	(2,301)	n.m.	3,339	(2,011)	n.m.
n.m. - not meaningful

1(b) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2016 GROUP

3Q2016 $'000	3Q2015 $'000	Change %	YTD2016 $'000	YTD2015 $'000	Change %
1,463	(2,301)	n.m.	3,339	(2,011)	n.m.
744	2,371	(68.6)	(4,449)	2,591	n.m.
493	2,167	(77.2)	(1,389)	2,758	n.m.
99	800	n.m.	(2,309)	813	n.m.
(388)	(203)	(91.1)	(2,291)	1,069	n.m.
948	5,135	(81.5)	(10,438)	7,231	n.m.
2,411	2,834	(14.9)	(7,099)	5,220	n.m.
2,436	2,844	(14.3)	(7,170)	5,310	n.m.
(25)	(10)	150.0	71	(90)	n.m.
2,411	2,834	(14.9)	(7,099)	5,220	n.m.

Profit/ (loss) for the period Other comprehensive income: Items that are or maybe reclassified subsequently to profit or loss:

Foreign currency translation differences for

foreign operations

Exchange differences on monetary items forming part of the net investment

Net change in fair value of available-for-sale

financial assets reclassified to profit or loss Net change in fair value of available-for-sale financial assets

Other comprehensive income for the period, net of tax

Total comprehensive income for the period Total comprehensive income attributable to:

Equity holders of the Company Non-controlling interests

n.m. - not meaningful

1(c) EARNINGS PER ORDINARY SHARE (EPS) GROUP GROUP Earnings per ordinary shares profit/ (loss) attributable to equity holders of the Company:

1. Based on weighted average number of ordinary shares in issue

2. On a fully diluted basis

3Q2016 3Q2015 YTD2016 YTD2015 Cents Cents Cents Cents

1.26 (1.90) 2.69 (1.62)

1.26 (1.90) 2.69 (1.62)

1(d) BALANCE SHEETS GROUP COMPANY 30 Sept 2016 31 Dec 2015 30 Sept 2016 31 Dec 2015 $'000 $'000 $'000 $'000

ASSETS

Property, plant and equipment 13,834 15,199 3,048 2,948

Subsidiaries - - 46,330 47,333

Intangible assets 304 328 - -

Associates and joint ventures 97,233 101,007 60,555 60,243

Other investments 16,514 21,914 1,217 1,217

Other assets 158 172 159 172

Amounts due from associates and a joint venture 1,018 1,607 - - Deferred tax assets 29 29 - -

Non-current assets 129,090 140,256 111,309 111,913

Other investments 20,849 23,611 - -

Inventories 13,609 13,725 7,017 8,170

Trade and other receivables 38,658 51,580 46,804 67,135 Loan to a subsidiary - - 4,888 7,498 Cash and cash equivalents 43,310 33,621 28,264 10,992

Current assets 116,426 122,537 86,973 93,795

TOTAL ASSETS 245,516 262,793 198,282 205,708

Equity

Share capital 85,270 85,270 85,270 85,270 Reserves 127,958 138,181 91,097 95,129

Equity attributable to owners of the Company 213,228 223,451 176,367 180,399

Non-controlling interests	134 62	- -
Total equity	213,362 223,513	176,367 180,399

LIABILITIES
Loans and borrowings	7,189 7,291	300 433
Deferred tax liabilities	712 655	- -
Non-current liabilities	7,901 7,946	300 433

Loans and borrowings	3,556 4,440	13,612 11,867
Trade and other payables	20,264 26,685	8,003 13,009
Current tax liabilities	433 209	- -
Current liabilities	24,253 31,334	21,615 24,876
TOTAL LIABILITIES	32,154 39,280	21,915 25,309
TOTAL EQUITY AND LIABILITIES	245,516 262,793	198,282 205,708

ANALYSIS OF BALANCE SHEETS

Other investments decreased by $8.2 million due to disposal of investment of $6.7 million and fair value movements of $2.5 million on available-for-sale financial assets, offset by capital calls of $1.1 million.

Trade and other receivables decreased by $12.9 million due to slowing down in sales and refund of loan from a joint venture.

Loans and borrowings decreased by $1.0 million due to settlement of short-term borrowings and finance liabilities.

Trade and other payables decreased by $6.4 million due to slow down in raw material purchase in line with weaker demand particularly in Singapore, and settlement of amount owing to a related party.

1(e) GROUP BORROWINGS Amount repayable in one year As at As at 30 Sept 2016 31 Dec 2015 $'000 $'000

Secured 2,343 2,569

Unsecured 1,213 1,871

3,556 4,440

Amount repayable after one year

Secured 7,189 7,291

Unsecured - -

7,189 7,291

Total 10,745 11,731 Details of any collateral

1. The Group's banking facilities are unsecured

2. The hire purchase facilities of the Group are secured by the Company and its subsidiaries' plant and machinery and motor vehicles.

1(f)

NET ASSET VALUE

GROUP COMPANY 3Q2016 3Q2015 3Q2016 3Q2015 Cents Cents Cents Cents

Net asset value per ordinary share at end of the financial period/year

1.80 1.94 1.49 1.55