Far East : Full-Year Financial Results FY 2021

UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS AND FULL YEAR ENDED 31 DECEMBER 2021

This announcement has been reviewed by the Company's sponsor, SAC Capital Private Limited (" Sponsor ").This announcement has not been examined or approved by Singapore Exchange Securities Trading Limited (" 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. Lee Khai Yinn (Telephone: [phone]) at 1 Robinson Road, #21-00 AIA Tower, Singapore 048542.

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A. CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

			Group
	Notes	Unaudited	Unaudited	Unaudited	Audited	Change	Change
		2H2021	2H2020	FY2021	FY2020	+ve/(-ve)	+ve/(-ve)
		S$'000	S$'000	S$'000	S$'000	S$'000	%
Revenue	4	45,755	32,754		83,085	54,570	28,515	52.3
Cost of sales		(35,551)	(28,240)		(66,229)	(44,659)	(21,570)	48.3
Gross profit		10,204	4,514		16,856	9,911	6,945	70.1
Other operating income		2,054	2,219		3,545	3,642	(97)	(2.7)
Distribution and selling expenses		(2,929)	(2,440)		(5,584)	(6,037)	453	(7.5)
Administrative expenses		(6,138)	(5,120)		(12,337)	(11,102)	(1,235)	11.1
Provision for impairment loss on
trade and other receivables and contract assets		(624)	(1,064)		(506)	(1,661)	1,155	(69.5)
Other operating expenses		(169)	(453)		(251)	(704)	453	(64.4)
Share of results of associates		191	199		191	199	(8)	(4.0)
		(9,669)	(8,878)		(18,487)	(19,305)	818	(4.2)
Profit/(Loss) from operations		2,589	(2,145)		1,914	(5,752)	7,666	n.m.
Finance expenses		(710)	(684)		(1,303)	(1,476)	173	(11.7)
Interest income		89	113		216	234	(18)	(7.7)
Profit/(Loss) before tax	6	1,968	(2,716)		827	(6,994)	7,821	n.m.
Tax expense	7	(708)	(66)		(724)	(144)	(580)	n.m.
Profit/(Loss) for the period		1,260	(2,782)		103	(7,138)	7,241	n.m.
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Net fair value gain/(loss) on equity instrument at fair value
through other comprehensive income ("FVOCI")		1,668	(1,116)		1,668	(1,116)	2,784	n.m.
Item that may be reclassified subsequently to profit or loss
Foreign currency translation		129	(41)		415	438	(23)	(5.3)
Total comprehensive income for the period		3,057	(3,939)		2,186	(7,816)	10,002	n.m.
Profit/(Loss) for the period attributable to :-
Owners of the Company		1,058	(3,039)		(192)	(7,179)	6,987	(97.3)
Non-controlling interests		202	257		295	41	254	n.m.
		1,260	(2,782)		103	(7,138)	7,241	n.m.
Total comprehensive income for the period attributable to :-
Owners of the Company		2,817	(4,239)		1,800	(7,938)	9,738	n.m.
Non-controlling interests		240	300		386	122	264	n.m.
		3,057	(3,939)		2,186	(7,816)	10,002	n.m.
Earnings/(Loss) per share for profit/(loss) for the period attributable to
the owners of the Company for the period:
Basic and diluted (cents)		0.95	(2.73)		(0.17)	(6.44)

There were no potential dilutive ordinary shares existing during the respective financial periods.

1H: 6 months ended 30 June

2H: 6 months ended 31 December

FY: 12 months ended 31 December

n.m. : not meaningful

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B. CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
		Group	Company
		Unaudited	Audited	Unaudited	Audited
	Notes	31 Dec 2021	31 Dec 2020	31 Dec 2021	31 Dec 2020
		S$'000	S$'000	S$'000	S$'000
Non-current assets
Fixed assets	10	28,546	31,146	22,574	23,580
Investment property	11	53	-	-	-
Intangible assets		189	237	-	-
Right-of-use assets		13,384	13,850	12,260	12,753
Right-of-useassets-land use rights		1,802	1,814	-	-
Investment in subsidiaries		-	-	16,370	16,210
Investment in associates		8,404	920	7,281	-
Investment securities	9	9,853	7,651	-	-
Deferred tax assets		661	641	-	-
Total non-current assets		62,892	56,259	58,485	52,543
Current assets
Inventories		19,363	14,578	9,391	7,665
Investment securities	9	4,364	8,270	4,364	8,270
Trade receivables		16,130	11,316	3,574	2,035
Contract assets		4,867	5,800	303	-
Other receivables		1,733	1,548	735	700
Deposits		337	191	55	48
Prepayments		310	253	77	41
Advance payment to suppliers		4,102	1,389	2,369	1,256
Amounts due from subsidiaries (trade)		-	-	756	526
Amounts due from subsidiaries (non-trade)		-	-	4,310	4,119
Amounts due from associates (trade)		815	832	-	-
Amounts due from associates (non-trade)		152	145	-	-
Tax recoverable		173	18	-	-
Fixed asset held for sale	12	890	-	-	-
Fixed deposits		234	219	209	209
Cash and bank balances		6,781	7,568	814	1,705
Total current assets		60,251	52,127	26,957	26,574
Total assets		123,143	108,386	85,442	79,117
Current liabilities
Trade payables		9,213	6,457	2,503	1,300
Contract liabilities		3,647	1,091	764	72
Trust receipts and bills payable (secured)	13	11,769	9,269	7,581	5,864
Other payables		1,061	1,024	342	265
Accruals and other liabilities		9,305	5,207	3,533	2,794
Dividend payable		26	137	25	137
Amounts due to subsidiaries (trade)		-	-	2,715	844
Amounts due to subsidiaries (non-trade)		-	-	1,133	901
Amounts due to associates (non-trade)		158	155	-	-
Provision for income tax		630	154	-	-
Lease liabilties (current)		767	772	295	310
Term loans (current)	13	5,171	2,915	3,214	1,597
Total current liabilities		41,747	27,181	22,105	14,084
Net current assets		18,504	24,946	4,852	12,490
Non-current liabilities
Deferred tax liabilities		2,617	2,187	-	-
Amounts due to subsidiaries (non-trade)		-	-	904	1,891
Lease liabilities (non-current)		12,990	13,457	12,562	12,857
Term loans (non-current)	13	18,579	20,176	16,459	15,892
Total non-current liabilities		34,186	35,820	29,925	30,640
Total liabilities		75,933	63,001	52,030	44,724
Net assets		47,210	45,385	33,412	34,393
Equity attributable to owners of the Company
Share capital	14	19,680	19,680	19,680	19,680
Retained earnings		19,684	20,077	13,410	14,391
Fair value adjustment reserve		7,644	5,883	-	-
Capital reserve		322	322	322	322
Translation reserve		(2,528)	(2,759)	-	-
		44,802	43,203	33,412	34,393
Non-controlling interests		2,408	2,182	-	-
Total equity
	47,210	45,385	33,412	34,393

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C. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
	Group
	FY2021	FY2020
	Unaudited	Audited
	S$'000	S$'000
Cash flows from operating activities
Profit/(Loss) before tax	827	(6,994)
Adjustments:
Provision for impairment loss on trade receivables and contract assets	506	1,538
Impairment loss on goodwill	-	219
Impairment losses on fixed assets and right-of-use assets	-	67
Bad debt written off	-	123
Allowance for obsolete and slow-moving inventories, net	418	731
Fixed assets written off	6	3
Gains on disposal of fixed assets, net	(63)	(39)
Depreciation of fixed assets	2,066	1,982
Depreciation of invesment property	2	-
Depreciation of right-of-use assets	861	926
Dividend income from investment securities	(318)	(287)
Amortisation of intangible assets	54	197
Amortisation of right-of-use assets - land use rights	46	45
Net fair value loss on held for trading investment securities	165	72
Finance expenses	1,303	1,476
Interest income	(216)	(234)
Share of results of associates	(191)	(199)
Translation difference	(202)	124
Operating cash flows before working capital changes	5,264	(250)
(Increase)/decrease in:
Inventories	(5,203)	(2,024)
Trade receivables	(5,963)	(78)
Other receivables	(228)	(130)
Contract assets	1,576	4,885
Deposits, prepayments and advance payment to suppliers	(2,915)	(496)
Amounts due from associates (trade)	17	215
Increase/(decrease) in:
Trade payables	12,202	7,836
Contract liabilities	2,556	(55)
Other creditors	(75)	168
Accruals and other liabilities	4,098	(94)
Cash flows generated from operations	11,329	9,977
Interest paid	(763)	(892)
Income taxes paid	(448)	(159)
Income taxes refunded	2	101
Interest income	216	234
Net cash flows generated from operating activities	10,336	9,261
Cash flows from investing activities
Proceeds from disposal of fixed assets	892	53
Proceeds from disposal of investment securities	4,383	1,577
Purchase of fixed assets	(1,112)	(227)
Purchase of investment securities	(636)	(2,004)
Dividends received	202	428
Additions of investment in associates	(7,281)	(30)
Net cash flows used in investing activities	(3,552)	(203)
Cash flows from financing activities
Acquisition of additional shares in subsidiaries	(160)	-
Dividends paid	(201)	(201)
Dividends paid to non-controlling interest of a subsidiary	-	(107)
Repayment of trust receipts and bills payable, net	(6,559)	(9,160)
Payment of principal portion of lease liabilities	(771)	(797)
Interest paid on lease liabilities	(539)	(584)
Proceeds of term loans, net	659	635
Net cash flows used in financing activities	(7,571)	(10,214)
Net decrease in cash and cash equivalents	(787)	(1,156)
Effect of exchange rate changes on cash and cash equivalents	15	11
Cash and cash equivalents at beginning of period	7,587	8,732
Cash and cash equivalents at end of period	6,815	7,587
Cash and cash equivalents consist of the following :
Cash and bank balances	6,781	7,568
Less: Bank deposit pledged	(200)	(200)
Fixed deposits	234	219
	6,815	7,587

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D. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY

Attributable to owners of the Company

Group

Balance at 1 January 2021

Profit/(Loss) for the year Other comprehensive incomeForeign currency translation

Net fair value gain on equity instrument at FVOCI

Total comprehensive income Contributions by and

distribution to owners

Dividends on ordinary shares

Changes in ownership interest in subsidiaries

Acquisition of non-controlling interests without a change in control

Balance at 31 December 2021

Balance at 1 January 2020 (Loss)/ Profit for the year Other comprehensive incomeForeign currency translation Net fair value loss on equity

instrument at FVOCI Total comprehensive income Contributions by and

distribution to owners

Dividends on ordinary shares

Dividends paid to non-controlling shareholders of a subsidiary

Total contributions by and distributions to owners

Balance at 31 December 2020

Company

Balance at 1 January 2021

Loss for the year, representing total comprehensive income for the period

Contributions by and distribution to owners

Dividends on ordinary shares

Balance at 31 December 2021

Balance at 1 January 2020

Loss for the year, representing total comprehensive income for the period

Contributions by and distribution to owners

Dividends on ordinary shares

Balance at 31 December 2020

			Equity			Fair value			Non-
		Equity,	attributable to		Retained	Capital	Translation
		Share capital	adjustment	controlling
		total	owners of the	earnings	reserve	reserve
			reserve	interests
			Company, total
		S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
45,385	43,203	19,680	20,077	5,883	322	(2,759)	2,182
	103	(192)	-	(192)	-	-	-	295
	415	324	-	-	93	-	231	91
	1,668	1,668	-	-	1,668	-	-	-
2,186	1,800	-	(192)	1,761	-	231	386
(201)	(201)	-	(201)	-	-	-	-
(160)	-	-	-	-	-	-	(160)
	47,210	44,802	19,680	19,684	7,644	322	(2,528)	2,408
53,509	51,342	19,680	27,457	6,999	322	(3,116)	2,167
	(7,138)	(7,179)	-	(7,179)	-	-	-	41
	438	357	-	-	-	-	357	81
	(1,116)	(1,116)	-	-	(1,116)	-	-	-
(7,816)	(7,938)	-	(7,179)	(1,116)	-	357	122
	(201)	(201)	-	(201)	-	-	-	-
	(107)	-	-	-	-	-	-	(107)
(308)	(201)	-	(201)	-	-	-	(107)
	45,385	43,203	19,680	20,077	5,883	322	(2,759)	2,182
34,393	34,393	19,680	14,391	-	322	-	-
(780)	(780)	-	(780)	-	-	-	-
(201)	(201)	-	(201)	-	-	-	-
		33,412	33,412	19,680	13,410	-	322	-	-
43,706	43,706	19,680	23,704	-	322	-	-
(9,112)	(9,112)	-	(9,112)	-	-	-	-
(201)	(201)	-	(201)	-	-	-	-
	34,393	34,393	19,680	14,391	-	322	-	-

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