Golden Agri Resources : 2018 Third Quarter Financial Statement and Dividend Announcement.

GOLDEN AGRI-RESOURCES LTD

Third Quarter Financial Statement And Dividend Announcement

FINANCIAL HIGHLIGHTS

Revenue Gross Profit EBITDA1 Underlying profit2 Underlying profit per share (USD cents) Net (loss)/profit attributable to owners of the Company

Ytd Sept 2018 US$'000 5,514,911 745,054 370,105 79,421 0.62 (81,086)

Ytd Sept 2017 US$'000 5,584,499 836,066 508,277 216,531 1.70 103,107

Change % (1.2) (10.9) (27.2) (63.3) (63.3) n.m.

3rd Qtr 2018 US$'000 1,838,680 277,025 132,169 38,041 0.30 (53,915)

3rd Qtr 2017 US$'000 1,781,539 289,533 180,009 79,477 0.62 43,680

Change % 3.2 (4.3) (26.6) (52.1) (52.1) n.m.

Notes:

• (1) Earnings before tax, non-controlling interests, interest on borrowings, depreciation and amortisation, net (loss)/gain from changes in fair value of biological assets and foreign exchange loss.

• (2) Net (loss)/profit attributable to owners of the Company excluding net effect of net gain or loss from changes in fair value of biological assets and depreciation of bearer plants and other non-operating items (foreign exchange gain or loss, net tax impact from tax-based asset revaluations, and other deferred tax income or expense).

• (3) n.m. - not meaningful.

PART I - INFORMATION REQUIRED FOR QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR

ANNOUNCEMENTS

1(a)An income statement and statement of comprehensive income for the group together with a comparative statement for the corresponding period of the immediately preceding financial year

UNAUDITED CONSOLIDATED INCOME STATEMENT FOR THE PERIOD ENDED 30 SEPTEMBER 2018

Ytd Sept	Ytd Sept	3rd Qtr	3rd Qtr
2018	2017	Change	2018	2017
US$'000	US$'000	%	US$'000	US$'000
Revenue	5,514,911	5,584,499	(1.2)	1,838,680	1,781,539	3.2
Cost of sales	(4,769,857)	(4,748,433)	0.5	(1,561,655)	(1,492,006)	4.7
Gross Profit	745,054	836,066	(10.9)	277,025	289,533	(4.3)
Operating expenses
Selling expenses	(395,781)	(409,486)	(3.3)	(137,110)	(135,243)	1.4
General and administrative
expenses	(237,989)	(232,818)	2.2	(88,597)	(80,743)	9.7
Total operating expenses	(633,770)	(642,304)	(1.3)	(225,707)	(215,986)	4.5
Operating profit	111,284	193,762	(42.6)	51,318	73,547	(30.2)
Other income/(expenses)
Financial income	28,058	23,514	19.3	9,300	9,238	0.7
Financial expenses	(121,132)	(102,812)	17.8	(43,803)	(31,521)	39.0
Share of results of associated
companies, net of tax	991	1,485	(33.3)	571	454	25.8
Share of results of joint ventures,
net of tax	(7,313)	1,957	n.m.	1,797	(882)	n.m.
Foreign exchange loss	(45,816)	(3,725)	n.m.	(28,676)	(7,430)	285.9
Other operating income/(loss)	9,680	32,392	(70.1)	(1,013)	20,512	n.m.
(135,532)	(47,189)	187.2	(61,824)	(9,629)	542.1
(Loss)/Profit before tax	(24,248)	146,573	n.m.	(10,506)	63,918	n.m.
Tax	(52,942)	(41,149)	28.7	(42,361)	(19,028)	122.6
(Loss)/Profit for the period	(77,190)	105,424	n.m.	(52,867)	44,890	n.m.
Attributable to:
Owners of the Company	(81,086)	103,107	n.m.	(53,915)	43,680	n.m.
Non-controlling interests	3,896	2,317	68.1	1,048	1,210	(13.4)
(77,190)	105,424	n.m.	(52,867)	44,890	n.m.
Note:
(1) n.m. - not meaningful.

Change %

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 SEPTEMBER 2018

Ytd Sept	Ytd Sept	3rd Qtr	3rd Qtr
2018	2017	2018	2017
US$'000	US$'000	US$'000	US$'000
(Loss)/Profit for the period	(77,190)	105,424	(52,867)	44,890
Other comprehensive (loss)/income:
Items that may be reclassified subsequently to
profit or loss:
Foreign currency translation differences on
consolidation	(24,496)	11,652	(8,181)	4,712
Share of other comprehensive (loss)/income of:
Joint ventures	(2,881)	61	(825)	(396)
Associated companies	(1,112)	-	(1,112)	-
Changes in fair value of cash flow hedges	-	(146)	-	-
Changes in fair value of cash flow hedges transferred
to income statement	-	(222)	-	-
Changes in fair value of available-for-sale financial
assets	2,254	(7,510)	2,156	¤	662
(26,235)	3,835	(7,962)	4,978
Items that will not be reclassified subsequently to
profit or loss:
Actuarial gain/(loss) on post-employment benefits	6,000	(8,732)	-	(1,113)
Share of other comprehensive loss of a joint venture	(51)	-	(51)	-
5,949	(8,732)	(51)	(1,113)
Other comprehensive (loss)/income, net of tax	(20,286)	(4,897)	(8,013)	3,865
Total comprehensive (loss)/income for the period,
net of tax	(97,476)	100,527	(60,880)	48,755
Total comprehensive (loss)/income attributable to:
Owners of the Company	(99,397)	98,021	(60,987)	47,441
Non-controlling interests	1,921	2,506	107	1,314
(97,476)	100,527	(60,880)	48,755
ADDITIONAL INFORMATION

Earnings before tax, non-controlling interests, interest on borrowings, depreciation and amortisation, net (loss)/gain from changes in fair value of biological assets and foreign exchange loss ("EBITDA")

Ytd Sept 2018 US$'000

Ytd Sept 2017 US$'000

Change %

3rd Qtr 2018 US$'000

3rd Qtr 2017 US$'000

Change %Earnings before tax, non-controlling interests, interest on borrowings, depreciation and amortisation, net (loss)/gain from changes in fair value of biological assets and foreign exchange loss ("EBITDA")

370,105

508,277

• Interest on borrowings (118,770) (101,695)

• Depreciation and amortisation (212,986) (262,084)Net (loss)/gain from changes in fair value of biological assets

Foreign exchange loss

(Loss)/Profit before tax

Note:

(1)n.m. - not meaningful.

(16,781)

(45,816)

(24,248)

5,800

(3,725)

146,573

(27.2)

132,169

16.8 (18.7)

(42,684) (70,462)

n.m.

(853)

n.m. n.m.

(28,676)

(10,506)

180,009 (26.6)

• (31,106) 37.2

• (83,225) (15.3)

5,670

(7,430)

63,918

n.m.

285.9

n.m.

1(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

UNAUDITED STATEMENTS OF FINANCIAL POSITION

Group

Company

As at	As at	As at	As at
30/09/2018	31/12/2017	30/09/2018	31/12/2017
US$'000	US$'000	US$'000	US$'000
Assets
Current Assets
Cash and cash equivalents	137,605	159,189	45	43
Short-term investments	235,233	234,370	-	-
Trade receivables	442,838	486,045	-	-
Other current assets (note (a))	818,578	812,739	50	487
Inventories	1,098,836	992,418	-	-
Assets of disposal group held
for sale	-	189,914	-	-
2,733,090	2,874,675	95	530
Non-Current Assets
Long-term receivables and
assets (note (b))	234,332	260,745	-	-
Long-term investments	899,252	756,725	173,425	156,925
Subsidiary companies	-	-	3,414,346	2,092,902
Associated companies	12,946	12,352	-	-
Joint ventures	87,787	69,595	-	-
Investment properties	113	124	-	-
Property, plant and equipment	2,591,120	2,590,159	-	-
Bearer plants	1,102,074	1,101,513	-	-
Deferred tax assets	264,067	299,134	-	-
Intangible assets	185,637	172,758	-	-
5,377,328	5,263,105	3,587,771	2,249,827
Total Assets	8,110,418	8,137,780	3,587,866	2,250,357
4

UNAUDITED STATEMENTS OF FINANCIAL POSITION (cont'd)

Group

Company

As at
31/12/2017
US$'000
1,435,561	-	-
306,224	-	-
544,432	-	-
240,910	23,525	30,505
32,888	-	-
37,779	-	-
2,597,794	23,525	30,505
125,106	-	-
1,125,248	-	-
78,243	-	-
102,836	-	-
1,431,433	-	-
4,029,227	23,525	30,505
Issued capital	320,939	320,939	320,939	320,939
Share premium	1,216,095	1,216,095	1,850,965	1,850,965
Treasury shares	(31,726)	(31,726)	(31,726)	(31,726)
Other paid-in capital	184,318	184,318	-	-
Other reserves
Option reserve	31,471	31,471	31,471	31,471
Currency translation reserve	(20,942)	2,866	-	-
Reserve of disposal group
held for sale	-	2,502	-	-
Fair value reserve	(495)	3,121	-	-
PRC statutory reserve	3,820	3,820	-	-
Other reserve	18,890	13,145	-	-
32,744	56,925	31,471	31,471
Retained earnings	2,128,154	2,260,432	1,392,692	48,203
3,850,524	4,006,983	3,564,341	2,219,852
Non-Controlling Interests	103,163	101,570	-	-
Total Equity	3,953,687	4,108,553	3,564,341	2,219,852
Total Liabilities and Equity	8,110,418	8,137,780	3,587,866	2,250,357
5

As at 30/09/2018 US$'000

Liabilities and Equity Current Liabilities

Short-term borrowings

1,463,103

Bonds and notes payable 124,430

Trade payables 668,233

Other payables (note(c)) 186,836

Taxes payable 14,723 Liabilities directly associated with

disposal group held for saleNon-Current Liabilities

Bonds and notes payables

- 2,457,325

109,730

Long-term borrowings 1,419,464

Deferred tax liabilities 72,721 Long-term payables and

liabilities 97,491

Total Liabilities

1,699,406

4,156,731

Equity Attributable to Owners of the Company

As at	As at
30/09/2018	31/12/2017
US$'000	US$'000