Financial Statements and Related Announcement::First Quarter Results

CAPITAL WORLD LIMITED

(Company Registration No: CT-276295)

(Incorporated in the Cayman Islands on 15 March 2013)

UNAUDITED FINANCIAL STATEMENTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2020

Pursuant to Rule 705(2C) of the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Manual Section B: Rules of Catalist, the Company is required to announce its quarterly financial statements in view of the qualified opinion and material uncertainty relating to going concern issued by the Company's auditors in the latest audited financial statements for the financial year ended 30 June 2020.

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

1(a)(i). An income statement and statement of comprehensive income, or a statement of comprehensive income (for the Group) together with a comparative statement for the corresponding period of the immediately preceding financial year.

		Group
		First quarter ended 30 September
		2020	2019	Change
		(Unaudited)	(Unaudited)
Description	RM'000	RM'000	%
Revenue	387	1,656	(76.6%)
Cost of sales	(101)	(2,139)	(95.3%)
Gross Profit/(Loss)	286	(483)	(159.2%)
Other income	2,696	992	171.8%
Selling and distribution expenses	-	(154)	n.m.
General and administrative expenses	(3,375)	(7,590)	(55.5%)
Finance costs	(778)	(628)	23.9%
Loss before tax	(1,170)	(7,863)
Income tax (expense)/credit	(61)	93	(165.8%)
Loss for the year	(1,231)	(7,770)
Other comprehensive income
Items that may be reclassified subsequently to profit
or loss:
Exchange differences arising from translation of
foreign operations, net of tax	7	(928)	(100.7%)
Total comprehensive loss for the year	(1,225)	(8,698)
Loss for the year attributable to:
Owners of the Company	(1,231)	(7,620)	(83.8%)
Non-controlling interests	-	(150)	n.m.
		(1,231)	(7,770)
Total comprehensive loss for the year
attributable to:
Owners of the Company	(1,225)	(8,548)	(85.7%)
Non-controlling interests	-	(150)	n.m.
		(1,225)	(8,698)

n.m: Denotes not meaningful

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1(a). (ii) . (ii) The following items (with appropriate breakdowns and explanations), if significant, must either be included in the income statement or in the notes to the income statement for the current financial period reported on and the corresponding period of the immediately preceding financial year:

	Group
	First quarter ended 30
	September
	2020		2019	Change
	(Unaudited)		(Unaudited)
Description	RM'000		RM'000	%
Loss for the year is arrived at after (crediting)/charging:
Interest income	(37)		(251)	(85.3%)
Reimbursement of operating expenses	(2,394)	-		n.m.
Depreciation of property, plant, and equipment	391		1,385	(71.8%)
Depreciation of investment properties	-		1,156	n.m.
Amortisation of mining rights	32		392	(91.8%)
Rental of premises	38		47	(19.1%)
Rental of office equipment	-		16	n.m.
Employee benefit expense:
- Salaries and bonuses	195		1,204	(83.8%)
- Social security contributions	1		4	(75.0%)
- Contributions to defined contribution plan	22		88	(75.0%)
Interest expense:
- Loans and borrowings	777		628	23.7%

n.m: Denotes not meaningful

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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.

		Group		Company
					As at	As at
		As at 30.09.2020	As at 30.06.2020	30.09.2020	30.06.2020
		(Unaudited)	(Audited)		(Unaudited)	(Audited)
Description	RM'000	RM'000		RM'000	RM'000
Current assets
Inventory properties	338,869	343,308	-	-
Inventories	67	67	-	-
Deferred expenditure	-	-	-	-
Trade receivables	7,795	7,144	-	-
Other receivables, deposits, and
prepayments	1,991	2,110	90	325
Amount due from subsidiaries	-	-	80,357	80,492
Cash on hand and at banks	1,309	1,299		28	11
		350,031	353,928	80,475	80,828
Non-current assets held for sale	226,539	226,539		-	-
		576,570	580,467	80,475	80,828
Non-current assets
Property, plant, and equipment	60,673	61,062	173	179
Intangible assets	400	432	-	-
Investment in subsidiaries	-	-		107,434	107,434
		61,073	61,494	107,607	107,613
Total assets	637,643	641,961	188,082	188,441
Current liabilities
Trade payables	315,926	302,775	2,361	-
Other payables and accruals	84,455	101,575	16,352	22,854
Amount due to subsidiaries	-	-	5,535	-
Deferred revenue	5,306	5,000	-	-
Loans and borrowings	45,170	44,689	16,720	17,027
Provision for taxation	35,473	35,386		319	294
		486,330	489,425	41,287	40,175
Non-current liabilities
Deferred tax liabilities	1,312	1,312		-	-
		1,312	1,312	-	-
Total liabilities	487,642	490,737	41,287	40,175
Equity attributable to owners of
the Company
Share capital	176,240	176,240	225,365	225,365
Share premium	3,824	3,824	645,582	645,582
Merger reserve	5,000	5,000	-	-
Equity component of convertible
bond	186	186	186	186
Foreign currency translation
reserve	1,532	1,525	2,542	2,392
Capital reserve	-	-	487	487
Accumulated losses	(36,781)	(35,551)		(727,367)	(725,746)
Total equity	150,000	151,224	146,795	148,266
Total liabilities and equity		637,643	641,961		188,082	188,441

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1(b)(ii). In relation to the aggregate amount of the Group's borrowings and debt securities, specify the following at the end of the financial period reported on with comparative figures at the end of the immediately preceding financial year.

			Group
	As at 30.09.2020			As at 30.06.2020
	(Unaudited)			(Audited)
	RM'000			RM'000
	Secured	Unsecured			Secured	Unsecured
Amount repayable within one year	45,170	-	44,689	-
Amount repayable after one year	-	-			-	-
	45,170	-			44,689	-

The loans and borrowings are mainly secured by the following: -

The Group's secured borrowings as at 30 September 2020 and 30 June 2020 comprised (i) a HK$ loan which was secured by pledge and charge of certain shares by the controlling shareholders and corporate guarantee by the Company; and (ii) Convertible Loan which were secured by personal guarantees by the Company's CEO and an associate of the Company's controlling shareholders.

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