Golden Agri Resources : Half Year Financial Statement and Dividend Announcement for the Period Ended 30 June 2019.

GOLDEN AGRI-RESOURCES LTD

Half Year Financial Statement And Dividend Announcement

FINANCIAL HIGHLIGHTS

	1st Half	1st Half		2nd Qtr	2nd Qtr
	2019	2018	Change	2019	2018	Change
	US$'000	US$'000	%	US$'000	US$'000	%
Revenue	3,166,532	3,676,231	(13.9)	1,549,237	1,860,059	(16.7)
Gross Profit	344,568	468,029	(26.4)	151,806	219,909	(31.0)
EBITDA1	197,934	237,936	(16.8)	77,295	116,802	(33.8)
Underlying
(loss)/profit 2	(15,338)	41,380	n.m.	(27,106)	16,592	n.m.
Underlying
(loss)/profit per
share (USD cents)	(0.12)	0.32	n.m.	(0.21)	0.13	n.m.
Net loss attributable
to owners of the
Company	(46,387)	(27,171)	70.7	(64,701)	(39,022)	65.8

Notes:

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

1

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 JUNE 2019

		1st Half		1st Half		2nd Qtr		2nd Qtr
		2019	2018	Change	2019	2018	Change
		US$'000		US$'000	%	US$'000		US$'000	%
Revenue	3,166,532	3,676,231	(13.9)	1,549,237	1,860,059	(16.7)
Cost of sales	(2,821,964)	(3,208,202)	(12.0)	(1,397,431)	(1,640,150)	(14.8)
Gross Profit	344,568	468,029	(26.4)	151,806	219,909	(31.0)
Operating expenses
Selling expenses	(173,240)	(258,671)	(33.0)	(82,708)	(127,391)	(35.1)
General and administrative
expenses	(150,203)		(149,392)	0.5	(79,637)		(73,380)	8.5
Total operating expenses	(323,443)		(408,063)	(20.7)	(162,345)		(200,771)	(19.1)
Operating profit/(loss)	21,125	59,966	(64.8)	(10,539)	19,138	n.m.
Other income/(expenses)
Financial income	10,801	18,758	(42.4)	5,001	9,520	(47.5)
Financial expenses	(81,859)	(77,329)	5.9	(40,036)	(40,111)	(0.2)
Share of results of associated
companies, net of tax	3,097	420	637.4	166	532	(68.8)
Share of results of joint ventures,
net of tax	(7,663)	(9,110)	(15.9)	(4,734)	(6,099)	(22.4)
Foreign exchange gain/(loss)	3,171	(17,140)	n.m.	(15,036)	(22,213)	(32.3)
Other operating income	15,017		10,693	40.4	6,570		8,059	(18.5)
		(57,436)	(73,708)	(22.1)	(48,069)	(50,312)	(4.5)
Exceptional item
Gain on disposal of subsidiaries	11,492		-	n.m.	43		-	n.m.
Loss before tax	(24,819)	(13,742)	80.6	(58,565)	(31,174)	87.9
Tax	(10,503)		(10,581)	(0.7)	(2,879)		(6,579)	(56.2)
Loss for the period	(35,322)	(24,323)	45.2	(61,444)	(37,753)	62.8
Attributable to:
Owners of the Company	(46,387)	(27,171)	70.7	(64,701)	(39,022)	65.8
Non-controlling interests	11,065		2,848	288.5	3,257		1,269	156.7
		(35,322)		(24,323)	45.2	(61,444)		(37,753)	62.8

Note:

(1) n.m. - not meaningful.

2

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2019

		1st Half		1st Half		2nd Qtr		2nd Qtr
		2019	2018	2019	2018
		US$'000		US$'000		US$'000		US$'000
Loss for the period	(35,322)	(24,323)	(61,444)	(37,753)
Other comprehensive income/(loss):
Items that will not be reclassified subsequently to
profit or loss:
Actuarial (loss)/gain on post-employment benefits	(5,707)	6,000	(5,707)	6,000
Share of other comprehensive income of a joint venture	1	-	-	44
Changes in fair value of financial assets at fair value
through other comprehensive income	40,028	-	32,743	-
Items that may be reclassified subsequently to
profit or loss:
Foreign currency translation differences on
consolidation	3,136	(16,315)	128	(18,422)
Share of other comprehensive income/(loss) of:
Joint ventures	210	(2,056)	(170)	(1,460)
Associates	(291)	-	472	-
Changes in fair value of available-for-sale financial
assets	-		98		-		1,567
Other comprehensive income/(loss), net of tax	37,377	(12,273)	27,466	(12,271)
Total comprehensive income/(loss) for the period,
net of tax	2,055	(36,596)	(33,978)	(50,024)
Total comprehensive (loss)/income attributable to:
Owners of the Company	(9,543)	(38,410)	(37,117)	(50,708)
Non-controlling interests	11,598		1,814		3,139		684
		2,055		(36,596)		(33,978)		(50,024)

ADDITIONAL INFORMATION

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

		1st Half		1st Half		2nd Qtr		2nd Qtr
		2019	2018	Change	2019	2018	Change
		US$'000		US$'000	%	US$'000		US$'000	%
Earnings before tax, non-	197,934	237,936	(16.8)	77,295	116,802	(33.8)
controlling interests, interest on
borrowings, depreciation and
amortisation, net loss from
changes in fair value of
biological assets and foreign
exchange gain/(loss) and
exceptional item ("EBITDA")
Interest on borrowings	(81,081)	(76,086)	6.6	(39,806)	(39,553)	0.6
Depreciation and amortisation	(153,323)	(142,524)	7.6	(77,028)	(71,093)	8.3
Net loss from changes in fair value	(3,012)	(15,928)	(81.1)	(4,033)	(15,117)	(73.3)
of biological assets
Foreign exchange gain/(loss)	3,171	(17,140)	n.m.	(15,036)	(22,213)	(32.3)
Exceptional item	11,492	-	n.m.	43	-	n.m.
Loss before tax
(24,819)	(13,742)	80.6	(58,565)	(31,174)	87.9

Note:

(1) n.m. - 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
UNAUDITED STATEMENTS OF FINANCIAL POSITION
			Group		Company
		As at			As at		As at		As at
		30/6/2019	31/12/2018	30/6/2019	31/12/2018
		US$'000			US$'000		US$'000		US$'000
Assets
Current Assets
Cash and cash equivalents	120,426	192,766	32	88
Short-term investments	351,606	351,855	-	-
Trade receivables	501,209	533,692	-	-
Other current assets (note (a))	895,993	804,835	46	11
Inventories	921,273			1,002,350		-		-
		2,790,507	2,885,498	78	99
Non-Current Assets
Long-term receivables and
assets (note (b))	239,879	323,525	-	-
Long-term investments	1,252,265	1,077,772	198,030	175,065
Subsidiary companies	-	-	3,431,521	3,431,355
Associated companies	20,344	17,546	-	-
Joint ventures	81,216	88,723	-	-
Investment properties	110	112	-	-
Property, plant and equipment	2,627,630	2,624,108	-	-
Bearer plants	1,058,889	1,092,166	-	-
Right-of-use assets	36,446	-	-	-
Deferred tax assets	254,545	244,023	-	-
Intangible assets	181,597			192,107		-		-
		5,752,921			5,660,082		3,629,551		3,606,420
Total Assets		8,543,428			8,545,580		3,629,629		3,606,519

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UNAUDITED STATEMENTS OF FINANCIAL POSITION (cont'd)
		Group			Company
		As at	As at		As at		As at
		30/6/2019			31/12/2018	30/6/2019	31/12/2018
		US$'000	US$'000		US$'000		US$'000
Liabilities and Equity
Current Liabilities
Short-term borrowings	1,652,156			1,376,266	-	-
Bonds and notes payable	124,811			124,640	-	-
Lease liabilities	18,418			-	-	-
Trade payables	650,166			683,349	-	-
Other payables (note(c))	313,670			287,748	118,746	40,789
Taxes payable	16,801			18,899		-		-
		2,776,022			2,490,902	118,746	40,789
Non-Current Liabilities
Bonds and notes payables	110,946			109,971	-	-
Long-term borrowings	1,134,624			1,399,212	-	-
Lease liabilities	19,382			-	-	-
Deferred tax liabilities	83,092			78,080	-	-
Long-term payables and
liabilities	174,380			157,335		-		-
		1,522,424			1,744,598		-		-
Total Liabilities	4,298,446			4,235,500		118,746		40,789
Equity Attributable to Owners of the Company
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	(14,370)			(16,702)		-		-
Fair value reserve	146,716			106,688		1,640		1,640
PRC statutory reserve	3,820			3,820		-		-
Other reserve	29,648			35,315		-		-
		197,285			160,592	33,111	33,111
Retained earnings	2,216,362			2,318,426		1,337,594		1,392,441
		4,103,273			4,168,644	3,510,883	3,565,730
Non-Controlling Interests	141,709			141,436		-		-
Total Equity	4,244,982			4,310,080		3,510,883		3,565,730
Total Liabilities and Equity		8,543,428			8,545,580		3,629,629		3,606,519

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