GSS ENERGY LIMITED 
By PART I - INFORMATION REQUIRED FOR ANNOUNCEMENT OF QUARTERLY (Q1, Q2 & Q3) , HALF YEAR AND FULL YEAR RESULTS.
1(a) A consolidated statement of comprehensive income (for the group) for the financial year ended 31 August 2011 together with a comparative figures for the financial period from 1 April 2009 to 31 August 2010 as follows:
Group
For the 12 | For the 17 | Increase/ |
months ended | months ended | (Decrease) |
31 Aug 2011 (S$'000) | 31 Aug 2010 (S$'000) | % |
Revenue 39,056 70,487 (44.59)% Cost of sales (31,876) (52,732) (39.55)% Gross profit 7,180 17,755 (59.56)% Other items of income
Other income 155 835 (81.44)% Interest income 46 37 24.32%
Other items of expense
Distribution and selling expenses (5,857) (9,850) (40.54)% Administrative expenses (2,812) (4,148) (32.21)% Other expenses (420) (903) (53.49)% Finance costs (342) (663) (48.42)% Share of results of an associate - (25) NM (Loss)/Profit before tax (2,050) 3,038 NM Income tax expense (372) (287) 29.62% (Loss)/Profit for the financial year/period (2,422) 2,751 NM
Other comprehensive income:
Exchange differences arising from translation of operation (358) (626) (42.81)% Reclassification of currency translation reserves on
deconsolidation of foreign subsidiaries - (235) NM Other comprehensive income for the year/period, net of tax (358) (861) (58.42)% Total comprehensive income for the year/period (2,780) 1,890 NM
(Loss)/Profit attributable to:
Owners of the parent (2,456) 2,663 NM Non-controlling interests 34 88 (61.36)%
(2,422) 2,751 NM
Total comprehensive (loss)/income attributable to:
Owners of the parent (2,796) 1,833 NM Non-controlling interests 16 57 (71.93)%
(2,780) 1,890 NM
Note:
The change of the financial year end from 31 March to 31 August is pursuant to the change of year-end announcement as made on 30 October 2009.
1(a) (ii) Other information
Group
For the 12 | For the 17 | Increase/ |
months ended | months ended | (Decrease) |
31/08/2011 (S$'000) | 31/08/2010 (S$'000) | % |
Allowance for doubtful trade receivables-written back 28 207 (86.47)%
Allowance for inventory obsolescence | - | (256) | NM |
Depreciation of property, plant and equipment | (2,001) | (3,013) | (33.59)% |
Foreign exchange loss, net | (420) | (812) | (48.28)% |
Gain on disposal of property, plant and equipment | - | 70 | NM |
Gain in winding up of subsidiaries | - | 433 | NM |
Property, plant and equipment written off | (1) | (11) | (90.91)% |
NM-Not Meaningful
(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.
Statement of Financial Position as at 31 August 2011Group Group Increase/ Company Company Increase/
31 Aug 2011 31 Aug 2010 (Decrease) 31 Aug 2011 31 Aug 2010 (Decrease)
S$ '000 S$ '000 % S$ '000 S$ '000 % ASSETS
Non-current assets
Property, plant and equipment 6,138 6,541 (6.16)% 75 151 (50.33)% Computer software - - NM - - NM Investment in subsidiaries - - NM 4,533 4,533 NM Goodwill on consolidation 112 112 - - - - Due from subsidiaries (non-trade) - - NM 5,271 5,096 3.42%
6,250 6,653 (6.06)% 9,879 9,780 1.01%
Current assets
Inventories 3,906 4,880 (19.96)% 1,958 2,876 (31.91)% Trade receivables 6,001 7,469 (19.65)% 2,820 3,575 (21.13)% Other receivables and deposits 290 290 - 88 103 (14.56)% Prepayments 164 147 11.56% 41 49 (16.33)% Due from holding company (trade) 34 44 (22.73)% 34 44 (22.73)% Due from related company (trade) 9 37 (75.68)% - - NM Cash and cash equivalents 4,507 8,799 (48.78)% 1,934 4,343 (55.47)%
14,911 21,666 (31.18)% 6,875 10,990 (37.44)% Total assets 21,161 28,319 (25.28)% 16,754 20,770 (19.34)% Current liabilities
Trade payables 5,076 5,943 (14.59)% 1,711 2,326 (26.44)%
Other payables and accruals 1,858 2,510 (25.98)% 1,378 1,422 (30.94)% Due to related company (trade) 4 4 - 4 4 - Due to subsidiaries (trade) - - NM 603 726 (16.92)% Provisions - 50 (100.00)% - 50 (100.00)% Income tax payable 142 135 5.19% - - NM Loan and borrowings 2,415 3,232 (25.28)% 1,885 1,885 -
9,495 11,874 (20.04)% 5,581 6,413 (12.97)%
Net current assets 5,416 9,792 (44.69)% 1,294 4,577 (71.73)%
Non-current liabilities
Provisions 480 473 1.48% 252 230 9.57% Loan and borrowings 3,818 5,777 (33.91)% 3,771 5,656 (33.33)%
4,298 6,250 (31.23)% 4,023 5,886 (31.66)% Total liabilities 13,793 18,124 (23.90)% 9,604 12,299 (21.92)% Net assets 7,368 10,195 (27.73)% 7,150 8,471 (15.59)%
Equity
Share capital 21,332 21,332 - 21,332 21,332 - Reserves (14,261) (11,465) 24.39% (14,182) (12,861) 10.27%
Equity attributable to equity holders of the par 7,071 9,867 (28.34)% 7,150 8,471 (15.59)%
Non-controlling interests 297 328 (9.45)% - - NM
Total equity 7,368 10,195 (27.73)% 7,150 8,471 (15.59)%(b) (ii) Aggregate amount of group's borrowing and debt securities
Amount repayable in one year or less, or on demand
As at 31.08.2011
As at 31.08.2010
Secured S$ ' 000 | Unsecured S$ ' 000 | Secured S$ ' 000 | Unsecured S$ ' 000 |
2,415 | - | 3,232 | - |
Amount repayable after one year
As at 31.08.2011
As at 31.08.2010
Secured S$ ' 000 | Unsecured S$ ' 000 | Secured S$ ' 000 | Unsecured S$ ' 000 |
3,818 | - | 5,777 | - |
Details of any collateral
(a) A fixed and floating charge has been created on the assets and properties of the Company and its subsidiary, PT Giken Precision
Indonesia, in favour of the banks currently serving the Company.
(b) The secured debts include a fixed term lease by the Company and its subsidiary, Changzhou Giken Precision Co Ltd. The short- term bank loans of a subsidiary company are secured by its office buildings and land.
1 (c) A consolidated statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial period from 1 April 2009 to 31 August 2010.
Consolidated statement of cash flows for the year/period ended
For the 12 For the 17 months ended months ended
31 Aug 2011 31 Aug 2010
S$'000 S$'000 Cash flows from operating activities
(Loss)/Profit before income tax (2,050) 3,038
Adjustments:
Allowance for doubtful trade receivables - 133
Allowance for doubtful trade receivables-written back (28)
(346) Allowance for inventory obsolescence - 256
Allowance for inventory obsolescence-written bank (22) -
Depreciation of property, plant and equipment 2,001 3,013
Finance costs 342 663
Gain on disposal of property, plant and equipment - (70) Gain
on winding up of subsidiaries - (433) Interest income (46)
(37) Loss on disposal of associate - 8
Property, plant and equipment written off 1 11
Share of results of an associate - 25
Operating cash flows before working capital changes 198 6,261 (Increase)/decrease in:
Inventories 974 1,832
Trade receivables 1,389 893
Other receivables and deposits (5) 113
Prepayments (20) 27
Due from an associate - 30
Due from holding company 10 (46) Due from related company 28
(37)
(Decrease)/increase in:
Trade payables (951) (1,006) Other payables and accruals
(689) (944) Due to a corporate shareholder - (26) Due to a
related party - 4
Provisions (43) (580)
Cash flows generated from operations 891 6,521
Interest received 46 37
Interest paid (342) (663) Income tax paid (327) (178)
Net cash generated from operating activities 268 5,717
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment -
70
Proceeds from sales of associate - 100
Purchase of property, plant and equipment (1,761) (2,126)
Net cash used in investing activities (1,761) (1,956) Cash flows from financing activities
Bank balances pledged - 131
Dividend paid (47) - Proceeds from bank loans 454 1,272
Proceeds from obligations under finance leases 9 - Repayment
of bank loans (2,618) (2,495) Repayment of obligations under
finance leases (544) (789)
Net cash used in financing activities (2,746) (1,881)
Net (decrease)/increase in cash and cash equivalents (4,239)
1,880
Effect of foreign exchange rate changes in
cash and cash equivalent (53) (11) Cash and cash equivalents
at beginning of year/period 8,799 6,930
Cash and cash equivalents at end of year/period 4,507 8,799
Reconciliation of cash and cash equivalents
Cash and bank balances 2,243 3,125
Fixed deposits 2,264 5,674
Less: Bank balances pledged - -
4,507 8,799
The Group's additions to property, plant and equipment during the financial year/period were financed as follows:
Additions of property, plant and equipment 1,761 2,326
Acquired under finance lease agreements - (200) Cash payments
to acquire property, plant and equipment 1,761 2,126
1 (d) (i) A statement (for the issuer and group) showing either (i) all changes in equity or
(ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.
Statement of Changes in Equity For the year ended 31 August 2011Share Statutory Foreign currency Accumulated Total equity Non-controlling Total
Capital reserve translation losses attributable to interests fund reserves holders of the
company
The Group S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000
Balance at 1 April 2009 19,832 36 901 (14,235) 6,534 271 6,805Net profit for the financial period - - - 2,663 2,663 88 2,751
Other comprehensive income for the financial period
Exchange differences arising from translation of
operation - - (595) - (595) (31) (626) Reclassification of
currency translation reserves on
deconsolidation of foreign subsidiaries - - (235) - (235) -
(235)
Total other comprehensive income for the
financial period - - (830) - (830) (31) (861)
Total comprehensive income for the
financial period - - (830) 2,663 1,833 57 1,890
Transactions with owners of the parent recognised directly in equity
Conversion of short-term loan to ordinary shares 1,500 - - - 1,500 - 1,500
Total transactions with owners of the
parent recognised directly in equity 1,500 - - - 1,500 - 1,500
Balance at 1 September 2010 21,332 36 71 (11,572) 9,867 328 10,195Net loss for the financial year - - - (2,456) (2,456) 34 (2,422)
Other comprehensive income for the financial year
Exchange differences arising from translation of
operation - - (340) - (340) (18) (358)
Total other comprehensive incomefor the
financial year | - - (340) | - | (340) | (18) | (358) |
Total comprehensive income for the financial year | - - (340) | (2,456) | (2,796) | 16 | (2,780) |
Transactions with owners of the parent recognised directly in equity
Dividend paid | - - | - - | - (47) | (47) |
Transfer to statutory reserve fund | - 115 | - (115) | - - | - |
Total transactions with owners of the |
parent recognised directly in equity - 115 - (115) - (47) (47)
Balance at 31 August 2011 21,332 151 (269) (14,143) 7,071 297 7,368 Statement of Changes in Equity For the year ended 31 August 2011Share Statutory Foreign currency Accumulated Total equity Non-controlling Total
Capital reserve translation losses attributable to interests fund reserves holders of the
company
The Company S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000
Balance at 1 April 2009 19,832 - - (13,946) 5,886 - 5,886Net profit for the financial period - - - 1,085 1,085 - 1,085
Total other comprehensive income for the
financial period - - - - - - -
Total comprehensive income for the
financial period - - - 1,085 1,085 - 1,085
Transactions with owners of the parent recognised directly in equity
Conversion of short-term loan to ordinary shares 1,500 - - - 1,500 - 1,500
Total transactions with owners of the
parent recognised directly in equity 1,500 - - - 1,500 - 1,500
Balance at 1 August 2010 21,332 - - (12,861) 8,471 - 8,471
Net profit for the financial year - - - (1,321) (1,321) - (1,321)
Total other comprehensive income for the
financial year - - - - - - -
Total comprehensive income for the
financial year - - - (1,321) (1,321) - (1,321)
Balance at 31 August 2011 21,332 - - (14,182) 7,150 - 7,1501 (d) (ii) Details of any changes in the company's share capital arising from right issue, bonus issue , share buy backs, exercise of share options or warrants, conversion of others issues of equity securities, issues of shares for cash or as consideration for acquisition or for any others purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.
The Company did not issue any shares during the financial year. There are no outstanding convertible securities nor treasury shares.
1 (d) (iii) Total number of issued shares excluding treasury shares as at the end of the current financial period and as at end of the immediately preceding year.
31 Aug 2011 31 Aug 2010
Total number of issued shares (excluding treasury shares) 131,509,657 131,509,657
1 (d) (iv) A statement showing all sales, transfers, disposals, cancellation and/or use of treasury shares as at the end of the current financial period reported on.
There were no sales, transfer, disposal, cancellation and/or use of treasury shares for the financial period ended 31 Aug 2011.
2 Whether are the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on
Auditing 910 (Engagement to review Financial Statement), or an equivalent standard)
The figures have not been audited or reviewed by the external auditor.
3 Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter)
Not applicable
4 Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
The Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the audited financial statements for the period ended 31.08.2010 as well as applicable Financial Reporting Standards (FRS) which became effective for financial years beginning on or after 1.9.2010.
5 If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effects of, the change.
The adoption of the new/revised FRS did not result in any material impact on the Group's results.
6 Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.
31 Aug 2011 31 Aug 2010
Cents Cents
Based on the No. of shares in issue during the year (1.84)
2.26
On fully diluted basis (1.84) 2.26
"Item 6: The earnings per share for the financial year
ended 31 August 2011 is calculated based on the weighted
average share capital in issue during the period of
131,509,657 ordinary shares (31 August 2010: 117,630,817
ordinary shares)"
7 Net asset value (for the issuer and group) per ordinary share based on issued share capital excluding treasury shares of the issuer at the end of the (a) current financial period reported on and (b) immediately preceding financial year.
Group Company
31 Aug 2011 31 Aug 2010 31 Aug 2011 31 Aug 2010
Cents Cents Cents Cents
Net assets value per ordinary share based on 5.37 7.50 5.44
6.44 issued share of the company at the end of the
financial year /period (cents)
"Item 7: The net assets value per share for the year
ended 31 August 2011 is calculated based on the share capital
in issue at the end of the year of 131,509,657 ordinary
shares (31 August 2010: 131,509,657 ordinary shares)"
8 A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:-
(a) any significant factors that affected the turnover, costs and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.
General
(i) The current financial year ended 31 August 2011 (FY 2011) covers 12 months while the comparative period (financial period ended 31 August 2010) (FP 2010) covers 17 months. This is due to a change in the financial year-end during FP 2010.
Consolidated Statement of Comprehensive Income
(ii) The Group's turnover for FY 2011 was S$39.1 million. There was a completion of a project during the financial year while the commencement of a new project was deferred due to the disasters in Japan.
(iii) Lower sales turnover and higher material cost has resulted in a reduced gross profit margin of 18.4%, as compared to 25.2% in FP 2010. Gross profit for FY 2011 was S$7.2 million
(iv) Other operating expenses were lower as a result of the lower turnover.
(v) The lower turnover and lower gross profit has resulted in a net loss after tax of S$2.4 million for the financial year.
Statements of Financial Position
(vi) With the reduced turnover, inventory had decreased to S$3.9 million, as compared to S$4.9 million at 31 August 2010. Trade receivables and trade payables are also lower.
(vii) Loans & borrowings decreased by S$2.8 million, as compared to 31 August 2011 due primarily to the schedued loan repayment under the debt restructuring agreement.
(viii) The net current asset of the Group at 31 August 2011 was S$5.4 million while the net asset of the Group was S$7.4 million.
Consolidated Statement of Cash Flows
(ix) The Group generated a net cash inflow of S$0.3 million from its operating activities during the financial year. After utilisation for investing and financing activities, the group had a net cash and cash equivalent position at S$4.5 million as at 31 August 2011.
9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.
The Group did not make any forecast or prospect statement for the current period to shareholders.
10 A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may effect the group in the next reporting period and the next 12 months.
The Group operates in a challenging and competitive environment. In view of the threat of a global financial crisis resulting from the state of the Western economies, the Group is maintaining a cautious outlook.
11 Dividend
(a) Current Financial Period Reported On
Any dividend declared for the current financial period reported on? None
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year? No
(c) Date payable
NA
(d) Books closure date
NA
12 If no dividend has been declared /recommended , a statement to that effect.
No dividend has been declared or recommended.
13 Interested Person Transactions
The aggregate value of interested person transactions for the financial year ended 31 August 2011 is as follows:
Nature of transaction and name of
Interested Person
Aggregate value of all interested person transactions conducted during the period
under review (excluding transactions less than
$100,000 and transactions conducted under shareholders' mandate pursuant to Rule 920)
Aggregate value of all interested person transactions conducted under shareholder's mandate pursuant to Rule 920 (excluding transactions less than $100,000)
S$'000 S$'000
Sales
-Miyoshi Precision Ltd
14 Negative confirmation pursuant to Rule 705(5).
NA
- 335
PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1,Q2,Q3 or Half Year Results)15 Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year.
GIKEN GROUP
BUSINESS SEGMENTS FOR THE FINANCIAL YEAR ENDED 31 AUGUST 2011
Mechanisms Microshafts Others Eliminations GroupMC MS
S$'000 S$'000 S$'000 S$'000 S$'000 Revenue
Sales to external customers 23,018 16,038 - - 39,056
Inter-segment sales - - - - - Total revenue 39,056
Operating (loss)/profit (3,267) 2,334 - (821) (1,754) Net finance costs (296) Tax (372) Non-controlling interests (34)Net loss (2,456)
BUSINESS SEGMENTS FOR THE FINANCIAL PERIOD ENDED 31 AUGUST 2010 Mechanisms Microshafts Others Eliminations GroupMC MS
S$'000 S$'000 S$'000 S$'000 S$'000 Revenue
Sales to external customers 48,255 22,128 104 - 70,487
Inter-segment sales - - - - - Total revenue 70,487
Operating (loss)/profit (670) 4,333 248 (222) 3,689
Net finance costs (626) Share of results of an associate (25)
Tax (287) Non-controlling interests (88)Net
profit 2,663
Group Turnover Group Assets Group Capital Expenditure
FY 2011 FP 2010 FY 2011 FP 2010 FY 2011 FP 2010
S$'000 S$'000 S$'000 S$'000 S$'000 S$'000
Singapore 17,979 39,334 6,931 11,203 - 3
Japan 1,100 4,326 - - - -
Indonesia 5,239 4,661 6,002 6,672 886 820
Germany 5,768 9,477 - - - -
China 5,684 8,457 8,228 10,444 875 1,503
Other Countries 3,286 4,232 - - - -
Total 39,056 70,487 21,161 28,319 1,761 2,326
16 In the review of performance, the factors leading to any material changes in contribution to turnover and earnings by the business or geographical segments
(a) The Mechanism Division recorded a turnover of S$23.0 million for FY 2011, as compared to S$48.3 million for the 17 months in FP 2010. This is due to the completion of an existing project and the deferment of a new project due to the disaster in Japan. The Division incurred a loss of S$3.3 million for FY 2011.
(b) The Microshaft Division achieved a turnover of S$16.0 million for FY 2011, as compared to S$22.1 million in FP 2010. The
Division achieved an operating profit of S$2.3 million for FY 2011.
17 A breakdown of sales
Group
Latest Previous Increase /(Decrease) Financial Year Financial Period
S$'000 S$'000 %
(a) Revenue reported for first half year 22,465 26,867 (16.38)%
(b) Profit after income tax but before non-controlling (475) 425 NM
interests reported for first half year
(c) Revenue reported for second half year 16,591 43,620 (61.97)%
(d) Profit after income tax but before non-controlling (1,947) 2,326 NM
interests reported for second half year
Due to the change in financial year end, the second half for FP2010 ended Aug 2010 consist of 11 months results
(October 2009 to August 2010)
18 A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full period.
Total Annual Dividend ( Refer to Para 16 of Appendix 7D, Section B of the Listing Manual: Rules of Catalist for the required details)
Latest Full Year (S$'000) | Previous Full Period (S$'000) | |
Ordinary | 0 | 0 |
Preference | 0 | 0 |
Total : | 0 | 0 |
NA
19 Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(10).
The Company confirms that there is no person occupying any managerial positions in the Company or any of its prinicipal subsidiaries who is a relative of a director, chief executive officer or substantial shareholder of the Company.
BY ORDER OF THE BOARD
Ng Say Tiong
Company Secretary
25 October 2011
This document has been prepared by the Company and its contents have been reviewed by the Company's Sponsor, Stamford Corporate Services Pte Ltd, for compliance with the relevant rules of Singapore Exchange Securities Trading Limited ("SGX-ST"). The Company's Sponsor has not independently verified the contents of this document. This document has not been examined or approved by SGX-ST and SGX-ST assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document.
The contact person for the Sponsor is Mr Bernard Lui: telephone no. (65) 6389 3000; email address bernard.lui@stamfordlaw.com.sg.
