Financial Statements and Related Announcement::Third Quarter Results

CAPITAL WORLD LIMITED

(Company Registration No: CT-276295)

(Incorporated in the Cayman Islands on 15 March 2013)

UNAUDITED FINANCIAL STATEMENTS FOR THE THIRD QUARTER ENDED 31 MARCH 2021

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		Group
		Third quarter ended 31		Nine months ended 31
		March		March
		2021	2020	Change	2021	2020	Change
		(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
Description	RM'000	RM'000	%	RM'000	RM'000	%
Revenue	-	128	n.m.	509	2,770	(81.6)
Cost of sales	(22)	(690)	(96.8)	(134)	(5,208)	(97.4)
Gross Profit/(Loss)	(22)	(562)	(96.1)	375	(2,438)	(115.4)
Other income	2,426	6,000	(59.6)	7,542	7,546	(0.1)
Selling and distribution				-
expenses	-	(9)	n.m.	(182)	n.m.
General and
administrative expenses	(5,446)	(4,573)	19.1	(12,650)	(23,843)	(46.9)
Finance costs	(742)	(1,451)	(48.9)	(2,279)	(4,561)	(50.0)
Loss before income tax	(3,784)	(595)		(7,012)	(23,478)
Income tax credit/
(expense)	16	93	(82.8)	(62)	278
Loss for the year	(3,768)	(502)		(7,074)	(23,200)
Other comprehensive
income
Items that may be
reclassified subsequently
to profit or loss:
Exchange differences
arising from translation of
foreign operations, net of
tax	1,116	(558)	(300.0)	1,291	(30)	(4403.3)
Total comprehensive
loss for the year	(2,652)	(1,060)		(5,783)	(23,230)
Loss for the year
attributable to:
Owners of the Company	(3,768)	(1,615)	133.3	(7,074)	(24,030)	(70.6)
Non-controlling interests	-	1,113	n.m.	-	830	n.m.
		(3,768)	(502)		(7,074)	(23,200)
Total comprehensive
loss for the year
attributable to:
Owners of the Company	(2,652)	(2,173)	22.0	(5,783)	(24,060)	(76.0)
Non-controlling interests	-	1,113	n.m.	-	830	n.m.
		(2,652)	(1,060)		(5,783)	(23,230)

n.m: Denotes not meaningful

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1(a). (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		Group
	Third quarter ended 31		Nine months ended 31
	March		March
	2021	2020	Change	2021	2020	Change
	(Unaudited)	(Unaudited)		(Unaudited)	(Unaudited)
Description	RM'000	RM'000	%	RM'000	RM'000	%

Loss for the year is arrived at after (crediting)/charging:

Interest income	-	(40)	n.m.	(37)	(334)	(88.9)
Reimbursement of
operating expenses	(2,394)	-	n.m.	(7,183)	-	n.m.
Gain on disposal of
subsidiaries	-	(5,566)	n.m.	-	(5,183)	n.m.
Audit fees:
- Auditors of the Company	70	-	n.m.	238	-	n.m.
Depreciation of property,
plant and equipment	445	998	(55.5)	1,225	3,697	(66.9)
Depreciation of investment
properties	-	1,156	n.m.	-	3,467	n.m.
Amortisation of mining
rights	-	224	n.m.	40	973	(95.9)
Employee benefit expense:
- Salaries and bonuses	197	2,407	(91.8)	539	3,611	(85.0)
- Social security
contributions	1	8	(75.0)	4	11	(72.7)
- Contributions to defined
contribution plan	24	176	(86.4)	67	264	(74.6)
Unrealised foreign exchange
losses	1,518	-	n.m.	-	-	n.m.
Interest expense:
- Loans and borrowings	742	1,451	(48.9)		2,276	4,561	(50.1)

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	As at
		31/03/2021	30/06/2020	31/03/2021	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	-	-
Trade receivables	7,293	7,144	-	-
Other receivables, deposits, and prepayments	9,913	2,110	152	325
Amount due from subsidiaries	-	-	81,561	80,492
Cash on hand and at banks	1,108	1,299		9	11
		357,250	353,928	81,722	80,828
Non-current assets held for sale	226,539	226,539		-	-
		583,789	580,467	81,722	80,828
Non-current assets
Property, plant, and equipment	59,794	61,062	167	179
Intangible assets	392	432	-	-
Investment in subsidiaries	-	-		107,434	107,434
		60,186	61,494	107,601	107,613
Total assets	643,975	641,961	189,323	188,441
Current liabilities
Trade payables	320,706	302,775	3,232	-
Other payables and accruals	89,899	101,575	19,349	22,854
Amount due to subsidiaries	-	-	5,995	-
Deferred revenue	4,818	5,000	-	-
Loans and borrowings	46,369	44,689	17,002	17,027
Provision for taxation	35,429	35,386		275	294
		497,221	489,425	45,853	40,175
Non-current liabilities
Deferred tax liabilities	1,312	1,312		-	-
		1,312	1,312		-	-
Total liabilities	498,533	490,737	45,853	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 loan	186	186	186	186
Foreign currency translation reserve	2,816	1,525	3,015	2,392
Capital reserve	-	-	487	487
Accumulated losses	(42,624)	(35,551)		(731,165)	(725,746)
Total equity	145,442	151,224	143,470	148,266
Total liabilities and equity		643,975	641,961		189,323	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 31/03/2021			As at 30/06/2020
	(Unaudited)			(Audited)
	RM'000			RM'000
	Secured	Unsecured			Secured	Unsecured
Amount repayable within one year	46,369	-	44,689	-
Amount repayable after one year	-	-			-	-
	46,104	-			44,689	-

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

The Group's secured borrowings as at 31 March 2021 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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