Financial Statements and Related Announcement: Full Yearly Results

ENGRO CORPORATION LIMITED (Incorporated in the Republic of Singapore) Co. Reg. No. 197302229H FULL YEAR FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016 1(a)

CONSOLIDATED INCOME STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016

GROUP
4Q2016	4Q2015	Change	FY 2016	FY 2015	Change
$'000	$'000	%	$'000	$'000	%
Revenue	43,144	43,308	(0.4)	153,297	180,770	(15.2)
Changes in inventories of finished goods and work-in-progress	(4,025)	2,066	n.m.	(2,507)	1,779	n.m.
Raw materials	(30,191)	(35,460)	14.9	(114,659)	(142,603)	19.6
(Loss)/ gain on disposal of property, plant and equipment	(90)	246	n.m.	230	362	(36.5)
(Loss)/ gain on disposal of investments	(6)	-	n.m.	3,466	56	n.m.
Investment income	3	1,003	(99.7)	220	1,110	(80.2)
Interest income	4	20	(80.0)	766	162	n.m.
Dividend income	221	397	(44.3)	436	844	(48.3)
Other income	801	555	n.m.	2,883	5,302	(45.6)
Exchange gain/ (loss)	1,301	(129)	n.m.	46	1,049	(95.6)
Allowance for doubtful debts and bad debts written off, net	(445)	(513)	(13.3)	(866)	(482)	79.7
(Allowance for)/ write-back of inventory obsolescence	(64)	-	n.m.	(64)	59	n.m.
Depreciation of property, plant and equipment	(1,014)	(1,133)	10.5	(4,358)	(4,768)	8.6
Amortisation of intangible assets	(128)	(5)	n.m.	(152)	(5)	n.m.
Impairment loss on property, plant and equipment	-	-	n.m.	-	(1,540)	n.m.
Allowance for impairment on investments	(98)	(2,144)	95.4	(1,261)	(2,957)	57.4
Net change in fair value of financial assets at fair value through profit or loss	823	944	(12.8)	745	655	(13.7)
Staff costs	(3,258)	(4,475)	27.2	(14,296)	(17,439)	18.0
Rental expenses	(620)	(777)	20.2	(2,854)	(2,900)	1.6
Other expenses	(5,135)	(6,198)	17.2	(18,689)	(23,441)	20.3
Interest expense	(80)	(135)	40.7	(415)	(454)	8.6
Profit/ (loss) before share of profit of associates and joint	1,143	(2,430)	n.m.	1,968	(4,441)	n.m.
ventures
Share of profit/ (loss) of associates and joint ventures, net of tax	1,666	(1,241)	n.m.	4,884	(698)	n.m.
Profit/ (loss) before tax	2,809	(3,671)	n.m.	6,852	(5,139)	n.m.
Tax (expense)/ credit	(267)	237	n.m.	(971)	(306)	n.m.
Profit/ (loss) for the year	2,542	(3,434)	n.m.	5,881	(5,445)	n.m.
Attributable to:
Owners of the Company	2,574	(3,362)	n.m.	5,768	(5,283)	n.m.
Non-controlling interests	(32)	(72)	(55.6)	113	(162)	n.m.
Profit/ (loss) for the year	2,542	(3,434)	n.m.	5,881	(5,445)	n.m.
n.m. - not meaningful

1(b) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 GROUP

4Q2016 $'000	4Q2015 $'000	Change %	FY 2016 $'000	FY 2015 $'000	Change %
2,542	(3,434)	n.m.	5,881	(5,445)	n.m.
1,512	(2,411)	n.m.	(2,937)	180	n.m.
2,330	(299)	n.m.	941	2,459	(61.7)
(1,177)	744	n.m.	(3,486)	1,557	n.m.
763	(824)	n.m.	(1,528)	245	n.m.
3,428	(2,790)	n.m.	(7,010)	4,441	n.m.
5,970	(6,224)	n.m.	(1,129)	(1,004)	12.5
5,980	(6,152)	n.m.	(1,190)	(933)	27.5
(10)	(72)	(86.1)	61	(71)	n.m.
5,970	(6,224)	n.m.	(1,129)	(1,004)	12.5

Profit/ (loss) for the year 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 year, net of tax

Total comprehensive income for the year 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

4Q2016 4Q2015 FY 2016 FY 2015 Cents Cents Cents Cents

2.17 (2.83) 4.86 (4.45)

2.17 (2.83) 4.86 (4.45)

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

ASSETS

Property, plant and equipment 14,250 15,199 2,760 2,948

Subsidiaries - - 54,475 47,333

Intangible asset 425 328 130 -

Associates and joint ventures 101,096 101,007 60,555 60,243

Other investments 17,742 21,914 1,217 1,217

Other assets 97 172 98 172

Amounts due from associates and a joint venture 1,037 1,607 - - Loan to subsidiaries - - 5,059 - Deferred tax assets 29 29 - -

Non-current assets 134,676 140,256 124,294 111,913

Other investments 21,717 23,611 - -

Inventories 10,132 13,725 5,114 8,170

Trade and other receivables 47,964 51,580 49,012 67,135 Loan to a subsidiary - - - 7,498 Cash and cash equivalents 39,393 33,621 20,363 10,992

Current assets 119,206 122,537 74,489 93,795

TOTAL ASSETS 253,882 262,793 198,783 205,708 EQUITY

Share capital 85,270 85,270 85,270 85,270 Reserves 133,938 138,181 90,112 95,129

Equity attributable to owners of the Company 219,208 223,451 175,382 180,399

Non-controlling interests	123 62	- -
Total equity	219,331 223,513	175,382 180,399

LIABILITIES
Loans and borrowings	6,919 7,291	244 433
Deferred tax liabilities	756 655	- -
Non-current liabilities	7,675 7,946	244 433

Loans and borrowings	3,633 4,440	13,775 11,867
Trade and other payables	22,881 26,685	9,382 13,009
Current tax liabilities	362 209	- -
Current liabilities	26,876 31,334	23,157 24,876
TOTAL LIABILITIES	34,551 39,280	23,401 25,309
TOTAL EQUITY AND LIABILITIES	253,882 262,793	198,783 205,708

ANALYSIS OF BALANCE SHEETS

Other investments decreased by $6.1 million due to disposals of investments and cash distributions of $7.1 million and fair value movements of $1.6 million on available-for-sale financial assets, offset by additional investments of $2.6 million.

Inventories decreased by $3.6 million due to higher sales volume in 4Q 2016, expediting drawdown of inventory.

Trade and other receivables decreased by $3.6 million due to lower trade receivables balance in line with slow down in sales, and refund of loan from a joint venture, partially offset by payment in transit for investment.

Loans and borrowings decreased by $1.2 million due to settlement of short-term borrowings and finance liabilities. Trade and other payables decreased by $3.8 million due to settlement for amount owing to a related party.

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

Secured 2,360 2,569

Unsecured 1,273 1,871

3,633 4,440

Amount repayable after one year

Secured 6,919 7,291

Unsecured - -

6,919 7,291

Total 10,552 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 4Q2016 4Q2015 4Q2016 4Q2015 Cents Cents Cents Cents

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

1.85 1.88 1.48 1.55