ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
UNAUDITED FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT
FOR THE FINANCIAL PERIOD ENDED 30 JUNE ("HY") 2020
This announcement has been prepared by the Company and its contents have been reviewed by the Company's sponsor, ZICO Capital Pte. Ltd. (the "Sponsor"), in accordance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Manual Section B: Rules of Catalist.
This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.
The contact person for the Sponsor is Ms. Alice Ng, Director of Continuing Sponsorship, ZICO Capital Pte. Ltd. at 8 Robinson Road, #09-00 ASO Building, Singapore 048544, telephone (65) 6636 4201.
Page 1 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
PART 1 - INFORMATION REQUIRED FOR HALF YEAR ANNOUNCEMENT
1(a)(i) 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.
Group | |||
Unaudited | Unaudited | Increase/ | |
HY2020 | HY2019 | (Decrease) | |
S$'000 | S$'000 | % | |
Revenue | 8,878 | 9,433 | (5.9) |
Cost of services | (7,459) | (7,378) | 1.1 |
Gross profit | 1,419 | 2,055 | (30.9) |
Other operating income | 2,825 | 358 | 689.1 |
Administrative expenses | (3,103) | (2,999) | 3.5 |
Other operating expenses | (636) | (824) | (22.8) |
Finance costs | (91) | (184) | (50.5) |
Profit/(Loss) before income tax | 414 | (1,594) | n/m |
Income tax expense | - | - | |
Profit/(Loss) for the period | 414 | (1,594) | n/m |
Other comprehensive income: | |||
Items that may be reclassified | |||
subsequently to profit or loss | |||
Exchange differences on translation | (9) | 37 | n/m |
of foreign operation | |||
Total comprehensive income for | 405 | (1,557) | n/m |
the period | |||
Profit/(Loss) attributable to: | |||
Owners of the Company | 774 | (1,215) | n/m |
Non-controlling interests | (360) | (379) | (5.0) |
Total comprehensive income | 414 | (1,594) | n/m |
attributable to: | |||
Owners of the Company | 769 | (1,196) | n/m |
Non-controlling interests | (364) | (361) | 0.8 |
405 | (1,557) | n/m |
n/m: not meaningful
Page 2 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
1(a)(ii) Notes to consolidated statement of comprehensive income.
Profit / (loss) for the period is arrived at after charging / (crediting) the following items:
Group | |||
Unaudited | Unaudited | Increase/ | |
HY2020 | HY2019 | (Decrease) | |
S$'000 | S$'000 | % | |
Depreciation of property, plant and equipment (a) | 627 | 807 | (22.3) |
Gain on disposal of property, plant and | |||
equipment (b) | (1,542) | - | n/m |
Interest expense | 91 | 184 | (50.5) |
Interest income | (32) | (14) | 128.6 |
Net foreign exchange gain (c) | (172) | (57) | 201.8 |
Loss allowance made for third party trade | 207 | - | n/m |
receivables (d) | |||
n/m: not meaningful
Notes:-
- Depreciation of property, plant and equipment decreased by S$0.2 million or 22.3% mainly due to the absence of depreciation charges for the Group's vessel, ES Bristol (the "Vessel"), which was disposed in February 2020.
- Relates to gain from the disposal of the Vessel, which was completed in February 2020.
- The increase in net foreign exchange gain was mainly due to the strengthening of USD against SGD. The average exchange rate was USD1 : SGD1.39 for HY2020 and USD1 : SGD1.35 for HY2019.
- Relates to two customers from the Group's new building and repair segment where the management has assessed that collection of these trade receivables is not likely.
Page 3 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
1(b)(i) A statement of financial position (for the issuer and the Group), together with a comparative statement as at the end of the immediately preceding financial year.
Group | Company | ||||||
Unaudited | Audited | Unaudited | Audited | ||||
30/6/2020 | 31/12/2019 | 30/6/2020 | 31/12/2019 | ||||
ASSETS | S$'000 | S$'000 | S$'000 | S$'000 | |||
Current assets | |||||||
Cash and cash equivalents | 18,175 | 15,471 | 42 | 56 | |||
Fixed deposit pledged | 463 | 448 | - | - | |||
Trade receivables | 5,506 | 7,122 | 1 | 2 | |||
Contract assets | 2,554 | 2,806 | - | - | |||
Other receivables | 1,116 | 847 | 26,048 | 26,800 | |||
Inventories | 560 | 513 | - | - | |||
Total current assets | 28,374 | 27,207 | 26,091 | 26,858 | |||
Non-current assets classified as held | - | 4,036 | - | - | |||
for sale | |||||||
28,374 | 31,243 | 26,091 | 26,858 | ||||
Non-current assets | |||||||
Deposits | 7 | 7 | - | - | |||
Investments in subsidiaries | - | - | 19,003 | 19,003 | |||
Club membership | 50 | 50 | - | - | |||
Property, plant and equipment | 13,530 | 14,146 | - | - | |||
Total non-current assets | 13,587 | 14,203 | 19,003 | 19,003 | |||
Total assets | 41,961 | 45,446 | 45,094 | 45,861 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Bank loans | 650 | 1,337 | - | - | |||
Trade payables | 992 | 1,178 | - | - | |||
Other payables | 5,855 | 6,100 | 19,795 | 20,151 | |||
Lease liabilities | 154 | 144 | - | - | |||
Income tax payable | 900 | 903 | - | - | |||
Total current liabilities | 8,551 | 9,662 | 19,795 | 20,151 | |||
Non-current liabilities | |||||||
Bank loans | 1,560 | 3,663 | - | - | |||
Lease liabilities | 846 | 887 | - | - | |||
Total non-current liabilities | 2,406 | 4,550 | - | - | |||
Capital, | reserves | and | non- | ||||
controlling interests | |||||||
Share capital | 23,698 | 23,698 | 23,698 | 23,698 | |||
Retained earnings | 26,421 | 26,282 | 1,601 | 2,012 | |||
Statutory surplus reserve | 451 | 451 | - | - | |||
Currency translation reserve | (209) | (204) | - | - | |||
Merger reserve | (18,570) | (18,570) | - | - | |||
Equity attributable to | owners of the | 31,791 | 31,657 | 25,299 | 25,710 | ||
Company | |||||||
Non-controlling interests | (787) | (423) | - | - | |||
Total equity | 31,004 | 31,234 | 25,299 | 25,710 | |||
Total liabilities and equity | 41,961 | 45,446 | 45,094 | 45,861 |
Page 4 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
1(b)(ii) Aggregate amount of Group's borrowings and debt securities. | ||||||
Amount repayable in one year or less, or on demand | ||||||
Group as at 30/06/2020 | Group as at 31/12/2019 | |||||
Unaudited | Audited | |||||
Secured | Unsecured | Secured | Unsecured | |||
S$'000 | S$'000 | S$'000 | S$'000 | |||
804 | - | 1,481 | - | |||
Amount repayable after one year | ||||||
Group as at 30/06/2020 | Group as at 31/12/2019 | |||||
Unaudited | Audited | |||||
Secured | Unsecured | Secured | Unsecured | |||
S$'000 | S$'000 | S$'000 | S$'000 | |||
2,406 | - | 4,550 | - |
Details of any collateral
The Group's bank loans are secured by (i) legal mortgage over the Group's leasehold land and property; (ii) a pledge over vessels; and (iii) corporate guarantees by the Company for all the monies owing.
The Group's obligations under finance leases are secured by the leased assets.
Page 5 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
1(c) A statement of cash flows (for the Group), together with a comparative statement for the corresponding period of the immediately preceding financial year.
Group | ||
Unaudited | Unaudited | |
HY2020 | HY2019 | |
Operating activities | S$'000 | S$'000 |
Profit/(Loss) before income tax | 414 | (1,594) |
Adjustments for: | ||
Interest income | (32) | (14) |
Interest expense | 91 | 184 |
Depreciation of property, plant and equipment | 627 | 807 |
Recovery of doubtful debt | (17) | - |
Loss allowance made for third party trade receivables | 207 | - |
Gain on disposal of property, plant and equipment | (1,542) | - |
Operating cash flows before movements in working capital | (252) | (617) |
Trade receivables | 1,425 | 5,236 |
Contract assets | 248 | 211 |
Other receivables | (268) | (200) |
Inventories | (46) | (91) |
Trade payables | (188) | (835) |
Other payables | (252) | 71 |
Cash generated from operations | 667 | 3,775 |
Interest received | 32 | 14 |
Income tax paid | (2) | 1 |
Net cash generated from operating activities | 697 | 3,790 |
Investing activities | ||
Proceeds from disposal of property, plant and equipment | 5,578 | - |
Purchases of property, plant and equipment | (12) | (1,122) |
Net cash generated from/(used in) investing activities | 5,566 | (1,122) |
Financing activities | ||
Dividend paid | (635) | - |
Interest paid | (91) | (184) |
Fixed deposit pledge | (15) | - |
Proceeds from term loans | - | 1,000 |
Repayment of term loans | (2,790) | (3,269) |
Repayment of obligations under finance leases | (31) | (62) |
Net cash used in financing activities | (3,562) | (2,515) |
Net increase in cash and cash equivalents | 2,701 | 153 |
Cash and cash equivalents at the beginning of the period | 15,471 | 7,027 |
Effects of exchange rate changes on the balance of cash | 3 | 44 |
held in foreign currencies | ||
Cash and cash equivalents at the end of the period | 18,175 | 7,224 |
Page 6 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
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.
Share | Currency | Merger | Statutory | Retained | Attributable to | Non- | Total | ||
capital | translatio | reserve | surplus | earnings | owners of the | controlling | |||
n reserve | reserve | Company | interests | ||||||
S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | S$'000 | ||
Group | |||||||||
Balance at 1 January 2020 | 23,698 | (204) | (18,570) | 451 | 26,282 | 31,657 | (423) | 31,234 | |
Total comprehensive income for the period | |||||||||
- Profit/(Loss) for the period | - | - | - | - | 774 | 774 | (360) | 414 | |
- Other comprehensive income for the period | - | (5) | - | - | - | (5) | (4) | (9) | |
Dividends | - | - | - | - | (635) | (635) | - | (635) | |
Balance at 30 June 2020 | 23,698 | (209) | (18,570) | 451 | 26,421 | 31,791 | (787) | 31,004 | |
Balance at 1 January 2019 | 23,698 | (233) | (18,570) | 419 | 21,655 | 26,969 | 379 | 27,348 | |
Total comprehensive income for the period | |||||||||
- Loss for the period | - | - | - | - | (1,214) | (1,214) | (380) | (1,594) | |
- Other comprehensive income for the period | - | 19 | - | - | - | 19 | 18 | 37 | |
Appropriations | - | - | - | 21 | (21) | - | - | - | |
Balance at 30 June 2019 | 23,698 | (214) | (18,570) | 440 | 20,420 | 25,774 | 17 | 25,791 | |
Share | Retained | Total | |||||||
capital | earnings | ||||||||
S$'000 | S$'000 | S$'000 |
Company | |||
Balance at 1 January 2020 | 23,698 | 2,012 | 25,710 |
Profit for the period, representing total | |||
comprehensive income for the period | - | 224 | 224 |
Dividends | - | (635) | (635) |
Balance at 30 June 2020 | 23,698 | 1,601 | 25,299 |
Balance at 1 January 2019 | 23,698 | 1,526 | 25,224 |
Profit for the period, representing total | |||
comprehensive income for the period | - | 126 | 126 |
Balance at 30 June 2019 | 23,698 | 1,652 | 25,350 |
Page 7 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
1(d)(ii) Details of any changes in the Company's share capital arising from rights issue, bonus issue, subdivision, consolidation, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State the number of shares that may be issued on conversion of all the outstanding convertibles, if any, against the total number of issued shares excluding treasury shares and subsidiary holdings of the issuer, as at the end of current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. State also the number of shares held as treasury shares and the number of subsidiary holdings, if any, and the percentage of the aggregate number of treasury shares and subsidiary holdings held against the total number of shares outstanding in a class that is listed 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.
Company | ||
No. of | Issued and | |
ordinary | paid-up share | |
shares | capital | |
S$ | ||
Balance as at 31 December 2019 | ||
and 30 June 2020 | 141,200,000 | 23,698,348 |
There were no changes in the Company's issued and paid-up share capital during HY2020.
As at 30 June 2020 and 30 June 2019, the Company has no outstanding options, convertibles, treasury shares and subsidiary holdings.
1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.
Company
30/06/2020 31/12/2019
Total number of issued shares | ||
(excluding treasury shares) | 141,200,000 | 141,200,000 |
There were no treasury shares as at 30 June 2020 and 31 December 2019.
1(d)(iv) A statement showing all sales, transfers, cancellation and/or use of treasury shares as at the end of the current financial period reported on.
Not applicable as the Company has no treasury shares.
1(d)(v) A statement showing all sales, transfers, cancellation and/or use of subsidiary holdings as at the end of the current financial period reported on.
Not applicable as the Company has no subsidiary holdings.
2 Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.
The figures in this announcement have not been audited or reviewed by the Company's auditors.
Page 8 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
3 Where the figures have been audited or reviewed, the auditor's report (including any modifications or emphasis of a matter).
Not applicable.
3A. Where the latest financial statements are subject to an adverse opinion, qualified opinion or disclaimer of opinion:-
- Updates on the efforts taken to resolve each outstanding audit issue.
- Confirmation from the Board that the impact of all outstanding audit issues on the financial statements have been adequately disclosed.
This is not required for any audit issue that is a material uncertainty relating to going concern.
Not applicable. The Group's latest audited financial statements for the financial year ended 31 December 2019 are not subject to an adverse opinion, qualified opinion or disclaimer of opinion issued by the auditors.
-
Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied.
Save as disclosed in paragraph 5 below, the Group has applied the same accounting policies and methods of computation in the Group's unaudited financial results for HY2020 as its most recently audited financial statements for the financial year ended 31 December 2019. - 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 effect of, the change.
The Group has adopted all new and/or revised Singapore Financial Reporting Standards (International) ("SFRS(I)") that are relevant for its operations and are effective for the financial year beginning on or after 1 January 2020. The adoption of these new/revised SFRS(I), amendments to and interpretation of SFRS(I) is not expected to have any material impact to the unaudited financial statements of the Group and of the Company for HY2020. - 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.
Group | |||
Unaudited | Unaudited | ||
HY2020 | HY2019 | ||
Earnings / (loss) per ordinary share for the financial | |||
period based on profit / (loss) attributable to | |||
owners of the Company:- | |||
(i) Based on the weighted average number of | 0.55 cents | (0.86) cents | |
ordinary shares | |||
(ii) On a fully diluted basis | 0.55 cents | (0.86) cents | |
Weighted average number of ordinary shares in | |||
issue | 141,200,000 | 141,200,000 |
Earnings / (loss) per ordinary share for HY2020 and HY2019 have been computed based on profit / (loss) attributable to owners of the Company divided by the weighted average number of ordinary shares in issue, during the respective financial periods.
In HY2020 and HY2019, the Company did not have any dilutive instruments. Hence, the basic and fully diluted earnings / (loss) per ordinary share in both financial periods under review are the same.
Page 9 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
7 Net asset value (for the issuer and Group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the:-
- current financial period reported on; and
- immediately preceding financial year.
Group | Company | |||
Unaudited | Audited | Unaudited | Audited | |
30/06/2020 | 31/12/2019 | 30/06/2020 | 31/12/2019 | |
Net asset value per | ||||
ordinary share based | 22.51 cents (a) | 22.42 cents (b) | 17.92 cents (a) | 18.21 cents (b) |
on the number of | ||||
issued ordinary shares | ||||
Number of issued | 141,200,000 | 141,200,000 | 141,200,000 | 141,200,000 |
ordinary shares | ||||
Notes:- |
- Net asset value per ordinary share as at 30 June 2020 have been computed based on equity attributable to owners of the Company as at 30 June 2020 divided by the number of issued ordinary shares as at 30 June 2020.
- Net asset value per ordinary share as at 31 December 2019 have been computed based on equity attributable to owners of the Company as at 31 December 2019 divided by the number of issued ordinary shares as at 31 December 2019.
8 A review of the performance of the Group, to the extent necessary for a reasonable understanding of the Group's business. The review must discuss 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. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the Group during the current financial period reported on.
(a) Review of Financial Performance of the Group
Revenue decreased by S$0.6 million or 5.9%, to S$8.8 million in HY2020 from S$9.4 million in HY2019, mainly due to the decrease in revenue contribution from the Group's new building and repair segment of S$0.9 million, partially offset by the increase in revenue contribution from the Group's shipping segment of S$0.3 million.
Revenue from the Group's new building and repair segment decreased in HY2020 mainly due to the COVID-19 pandemic which resulted in the closure of the Group's key customer's shipyard and most of the Group's foreign workers not being able to work due to the imposed movement restriction measures by the Ministry of Manpower on 21 April 2020. This was partially offset by the increase in revenue contribution from the Group's subsidiary in Malaysia as its business operations became active in HY2020.
Revenue from the Group's shipping segment increased in HY2020 mainly due to the revenue contributed by the Group's vessel, ES Aspire, as she was able to run 16 voyages in HY2020, as compared to 12 voyages in HY2019, during which she was under maintenance from January 2019 to February 2019 due to engine breakdown.
Gross profit decreased by S$0.6 million or 30.9%, to S$1.4 million in HY2020 from S$2.0 million in HY2019. Gross profit margin decreased by 5.8 percentage points to 16.0% in HY2020, from 21.8% in HY2019. The decreases in gross profit and gross profit margin were mainly due to the decrease in the Group's revenue and the Group having to continue to incur basic salary costs for its foreign workers despite the closure of the Group's key customer's shipyard, which resulted in a temporary halt of the Group's operations at the shipyard.
Page 10 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
Other operating income increased by S$2.5 million or 689.1%, to S$2.8 million in HY2020 from S$0.3 million in HY2019, mainly due to:
- gain on disposal of the Vessel of S$1.5 million;
- subsidy of S$0.7 million received under the Jobs Support Scheme and foreign worker levy rebate from the Singapore Government as support to employers due to the COVID-19 pandemic; and
- net foreign exchange gain of S$0.1 million mainly due to the strengthening of USD against SGD in HY2020.
Administrative expenses remained largely stable at S$3.1 million and S$3.0 million in HY2020 and HY2019, respectively.
Other operating expenses decreased by S$0.2 million or 22.8%, to S$0.6 million in HY2020 from S$0.8 million in HY2019, mainly due to a reduction in rental cost for workers' dormitory and related expenses as a result of the Group's cost control measures.
Finance costs decreased by S$0.1 million or 50.5%, to S$0.1 million in HY2020 from S$0.2 million in HY2019. The decrease was due to repayment of bank loan, with outstanding bank loans of S$7.1 million as at 30 June 2019, as compared to S$2.2 million as at 30 June 2020.
As a result of the above, the Group recorded a net profit of S$0.4 million in HY2020, as compared to a net loss of S$1.6 million in HY2019. Net profit attributable to owners of the Company was S$0.8 million in HY2020, as compared to a net loss attributable to owners of the Company of S$1.2 million in HY2019.
(b) Review of Financial Position of the Group
The Group recorded positive working capital (current assets less current liabilities) of S$19.8 million as at 30 June 2020, as compared to S$21.6 million as at 31 December 2019.
Assets
Current assets
The Group's current assets decreased by S$2.8 million, to S$28.4 million as at 30 June 2020 from S$31.2 million as at 31 December 2019, mainly due to:
- a decrease in trade receivables of S$1.6 million, which was in line with the reduction in revenue as a result of the closure of the Group's key customer's shipyard due to the COVID-19 pandemic and no work could be completed between April 2020 and June 2020; and
- a reduction in non-current assets classified as held for sale of S$4.0 million as the sale of the Vessel was completed in February 2020.
The decrease was partially offset by:
- an increase in cash and cash equivalents of S$2.8 million attributable mainly to the receipt of the balance 90% proceeds of S$5.0 million from the sale of the Vessel, partially offset by the full repayment of an outstanding loan of S$2.2 million granted by SPRING Singapore ("SPRING Loan") in April 2020; and
- an increase in other receivables of S$0.3 million mainly due to prepayment of work injury compensation insurance and vessel insurance for the second half of 2020.
Page 11 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
Non-current assets
Non-current assets decreased by S$0.6 million, to S$13.6 million as at 30 June 2020 from S$14.2 million as at 31 December 2019, due to depreciation charges of property, plant and equipment in HY2020.
Liabilities
Current liabilities
Current liabilities decreased by S$1.1 million, to S$8.6 million as at 30 June 2020 from S$9.7 million as at 31 December 2019. This was mainly attributable to:
- the repayment of bank loans of S$0.7 million;
- a decrease in trade payables of S$0.2 million due to lower purchases of consumables; and
- a decrease in other payables of S$0.2 million, as a result of (i) a reduction in deposit received of S$0.7 million in relation to the sale of the Vessel as the sale was completed in February 2020; and (ii) an increase in deferred income of S$0.5 million in relation to the subsidy received under the Jobs Support Scheme from the Singapore Government.
Non-current liabilities
Non-current liabilities decreased by S$2.1 million, to S$2.4 million as at 30 June 2020 from S$4.5 million as at 31 December 2019, mainly due to the full repayment of the SPRING Loan.
Equity
As a result of the above, total equity of the Group decreased by S$0.2 million, to S$31.0 million as at 30 June 2020 from S$31.2 million as at 31 December 2019. The Group's equity attributable to owners of the Company remained largely stable at S$31.8 million and S$31.7 million as at 30 June 2020 and 31 December 2019, respectively.
(c) Review of Statement of Cash Flows of the Group
In HY2020, net cash generated from operating activities amounted to S$0.7 million, due to operating cash outflows before changes in working capital of S$0.2 million and net cash generated from operations of S$0.9 million.
The net cash generated from operations of S$0.9 million in HY2020 was mainly due to:
- an increase in trade receivables of S$1.4 million; and
- an increase in contract assets of S$0.2 million, partially offset by:
- a decrease in other receivables of S$0.3 million;
- a decrease in trade payables of S$0.2 million; and
- a decrease in other payables of S$0.2 million.
Page 12 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
Net cash generated from investing activities of S$5.6 million in HY2020 was due to proceeds from disposal of property, plant and equipment.
Net cash used in financing activities of S$3.6 million in HY2020 was due to repayments of bank loans and finance leases payables, as well as dividends and interest paid.
As a result of the above, there was a net increase in the Group's cash and cash equivalents of S$2.7 million, to S$18.2 million as at 30 June 2020 from S$15.5 million as at 1 January 2020.
-
Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.
There are no material variances between the prospect statement relating to the Group's revenue and overall bottom line financial performance for HY2020, as set out in the Company's announcement dated 27 May 2020 on the impact of the COVID-19 pandemic on the Group's business operations and financials, and the actual results for HY2020. - 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 affect the Group in the next reporting year and the next 12 months.
COVID-19 pandemic is likely to continue in the second half of 2020, and the global market is expected to continue to be volatile and uncertain. Such uncertain and unprecedented times is expected to continue to affect the Group's business and operations.
As mentioned in the Company's announcement dated 3 June 2020 in response to queries raised by the SGX RegCo, the Group continues to be on the lookout for opportunities including expanding the scope of works with existing major customer while exploring possible mergers and acquisitions in areas of industry related products with a view to diversify and enhance shareholders' value in the long run.
The management remains cautious with regards to the current market condition. The management will continue to monitor the situation, minimise cost and conserve cash for the Group's business in order to mitigate any negative financial impact arising from the COVID-19 pandemic. - Dividend
-
Current Financial Period Reported On
Any dividend recommended for the current financial period reported on? No dividend has been declared or recommended for HY2020. - Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year?
None. - Date payable Not applicable.
-
Current Financial Period Reported On
Page 13 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
-
The date on which Registrable Transfers received by the Company (up to 5.00 pm) will be registered before entitlements to the dividend are determined
Not applicable.
- If no dividend has been declared/recommended, a statement to that effect and the reason(s) for the decision.
No dividend has been declared/recommended for HY2020 in order to conserve cash for the Group's operations in view of the COVID-19 pandemic. - If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.
The Company has not obtained a general mandate from shareholders in respect of interested person transactions.
Name of interested | Nature of | Aggregate value of | Aggregate value of |
person | Relationship | all interested | all interested |
person transaction | person | ||
during the financial | transactions | ||
year under review | conducted under | ||
(excluding | shareholders' | ||
transactions less | mandate pursuant | ||
than S$100,000 and | to Rule 920 | ||
transactions | (excluding | ||
conducted under | transactions less | ||
shareholders' | than S$100,000) | ||
mandate pursuant | |||
to Rule 920) | |||
S$'000 | S$'000 | ||
Low Chye Hin | Low Chye Hin, | 102 | - |
- Provision of | the Group's | ||
consultancy | consultant, is the | ||
services and | father of Low | ||
Chee Wee | |||
allowance | |||
(Chief Executive | |||
Officer cum | |||
Chief Operating | |||
Officer of the | |||
Company). | |||
Total | 102 | - |
Page 14 of 15
ES GROUP (HOLDINGS) LIMITED
(Company Registration No. 200410497Z)
(Incorporated in the Republic of Singapore)
-
Negative confirmation pursuant to Rule 705(5).
We, Low Chee Wee and Eddy Neo Chiang Swee, being two directors of the Company, confirm on behalf of the board of directors of the Company ("Board") that, to the best of our knowledge, nothing has come to the attention of the Board which may render the unaudited financial results for HY2020 to be false or misleading in any material aspect. - Confirmation that the issuer has procured undertakings from all its directors and executive officers (in the format set out in Appendix 7H) under Rule 720(1).
The Company confirms that it has procured the required undertakings under Rule 720(1) of the Catalist Rules from all its directors and executive officers in the format set out in Appendix 7H of the Catalist Rules.
ON BEHALF OF THE BOARD OF DIRECTORS
Low Chee Wee | Eddy Neo Chiang Swee |
Chief Executive Officer | Executive Director |
11 August 2020 |
Page 15 of 15
Attachments
- Original document
- Permalink
Disclaimer
ES Group (Holdings) Limited published this content on 11 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2020 11:28:03 UTC