Hap Seng Plantations : Quarter 1 2021 Financial Results

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

FOR THE FIRST QUARTER AND YEAR-TO-DATE ENDED 31 MARCH 2021

		Quarter ended		Year-to-date ended
		31.3.2021	31.3.2020	Increase/	31.3.2021	31.3.2020	Increase/
		RM'000	RM'000	(Decrease)	RM'000	RM'000	(Decrease)
Revenue	121,322	101,861	19%	121,322	101,861	19%
Operating expenses	(91,032)	(109,664)		(91,032)	(109,664)
Other operating income	9,557	1,458		9,557	1,458
Operating profit/(loss)	39,847	(6,345)	>100%	39,847	(6,345)	>100%
Finance costs	(610)	(647)		(610)	(647)
Profit/(Loss) before tax	39,237	(6,992)	>100%	39,237	(6,992)	>100%
Tax expense	(9,868)	976		(9,868)	976
Profit/(Loss) for the period
representing total comprehensive
income/(expense) for the period	29,369	(6,016)	>100%	29,369	(6,016)	>100%
Earnings/(Loss) per share (sen)
Basic	3.67	(0.75)	>100%	3.67	(0.75)	>100%
Diluted		N/A	N/A		N/A	N/A

The Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with

the Audited Financial Statements for the financial year ended 31 December 2020 and the accompanying explanatory notes attached to the Interim Financial Statements

QtrlyReport 31 Mar 2021 - HSP.docx

Page 1 of 14

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS AT 31 MARCH 2021	As at	As at
	31.3.2021	31.12.2020
	RM'000	RM'000
		(Audited)
Non-current assets
Property, plant and equipment	1,790,062	1,801,508
Current assets
Inventories	62,007	54,286
Biological assets	40,376	33,889
Receivables	29,250	31,852
Current tax assets	674	1,373
Money market deposits	196,696	195,322
Cash and cash equivalents	47,775	63,655
	376,778	380,377
TOTAL ASSETS	2,166,840	2,181,885
Equity attributable to owners of the Company
Share capital	1,475,578	1,475,578
Merger reserves	(1,347,761)	(1,347,761)
Retained earnings	1,573,236	1,587,850
	1,701,053	1,715,667
Less: Treasury shares	(841)	(841)
TOTAL EQUITY	1,700,212	1,714,826
Non-current liabilities
Deferred tax liabilities	372,718	373,180
Lease liabilities	44,395	45,610
Current liabilities	417,113	418,790
Payables	33,539	33,230
Current tax liabilities	7,225	5,434
Lease liabilities	8,751	9,605
	49,515	48,269
TOTAL LIABILITIES	466,628	467,059
TOTAL EQUITY AND LIABILITIES	2,166,840	2,181,885
Net assets per share (RM)	2.13	2.14
Number of shares net of treasury shares ('000)	799,685	799,685

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Audited Financial Statements

for the financial year ended 31 December 2020 and the accompanying explanatory notes attached to the Interim Financial Statements

QtrlyReport 31 Mar 2021 - HSP.docx

Page 2 of 14

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FOR THE YEAR-TO-DATE ENDED 31 MARCH 2021

			Attributable to Owners of the Company
		Non-distributable	Distributable
		Share	Merger	Retained	Treasury	Total
		capital	reserves	earnings	shares	equity
		RM'000	RM'000	RM'000	RM'000	RM'000
At 1 January 2021	1,475,578	(1,347,761)	1,587,850	(841)	1,714,826
Total comprehensive income for the period	-	-	29,369	-	29,369
Dividends	-	-	(43,983)	-	(43,983)
At 31 March 2021
1,475,578	(1,347,761)	1,573,236	(841)	1,700,212
At 1 January 2020	1,475,578	(1,347,761)	1,525,543	(841)	1,652,519
Total comprehensive expense for the period	-	-	(6,016)	-	(6,016)
Dividends	-	-	(15,994)	-	(15,994)
At 31 March 2020
1,475,578	(1,347,761)	1,503,533	(841)	1,630,509

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements

for the financial year ended 31 December 2020 and the accompanying explanatory notes attached to the Interim Financial Statements

QtrlyReport 31 Mar 2021 - HSP.docx

Page 3 of 14

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE YEAR-TO-DATE ENDED 31 MARCH 2021

	Year-to-date ended
	31.3.2021	31.3.2020
	RM'000	RM'000
Cash flows from operating activities
Profit/(Loss) before tax	39,237	(6,992)
Adjustments for:
Non-cash items	15,267	31,827
Non-operating items	-	(56)
Dividend income	(874)	(426)
Net interest expense	357	437
Operating profit before working capital changes	53,987	24,790
Net changes in working capital	(4,810)	10,834
Net tax (paid)/refunded	(7,840)	859
Net interest paid	(357)	(437)
Net cash generated from operating activities	40,980	36,046
Cash flows from investing activities
Dividend received from money market deposits	874	426
Increase in money market deposits	(1,374)	(39,426)
Proceeds from disposal of property, plant and equipment	-	56
Purchase of property, plant and equipment	(9,800)	(9,643)
Net cash used in investing activities	(10,300)	(48,587)
Cash flows from financing activities
Dividends paid	(43,983)	(15,994)
Payment of lease liabilities	(2,577)	(2,285)
Net cash used in financing activities	(46,560)	(18,279)
Net change in cash and cash equivalents	(15,880)	(30,820)
Cash and cash equivalents at beginning of period	63,655	49,317
Cash and cash equivalents at end of period
47,775	18,497
Cash and cash equivalents comprise the following amounts:
Deposits with licensed banks	27,570	13,340
Cash in hand and at bank	20,205	5,157
	47,775	18,497

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Audited Financial Statements

for the financial year ended 31 December 2020 and the accompanying explanatory notes attached to the Interim Financial Statements

QtrlyReport 31 Mar 2021 - HSP.docx

Page 4 of 14

Basis of Preparation

These interim financial statements have been prepared in accordance with the requirements of Malaysian Financial Reporting Standard ["MFRS"] 134, Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ["Bursa Securities"], and should be read in conjunction with the Group's audited financial statements for the financial year ended 31 December 2020.

Part A: Explanatory Notes Pursuant to MFRS 134

1. Significant accounting policies
   The accounting policies and presentation adopted by the Group in these interim financial statements are consistent with those adopted in the audited financial statements for the year ended 31 December 2020.
2. Comments on the seasonality or cyclicality of operations
   Seasonal or cyclical factors affecting the operational performance of the Group include general climatic conditions, age profile of oil palms, the cyclical nature of annual production and the movements in commodity prices.
3. Nature and amount of items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size or incidence
   Save for the information disclosed in this interim financial report, there were no unusual items affecting assets, liabilities, equity, net income or cash flow during the interim period.
4. Nature and amount of changes in estimates of amounts reported in prior interim periods of the current financial year or changes in estimates of amounts reported in prior financial years
   There were no changes in estimates of amounts reported in prior financial years.
5. Issues, cancellations, repurchases, resale and repayments of debt and equity securities Share buyback by the Company
   During the current quarter, there was no buyback of shares, resale nor cancellation of treasury shares.
   As at 31 March 2021, the Company held a total of 314,800 ordinary shares as treasury shares and the issued share capital of the Company remained unchanged at 800,000,000 ordinary shares.

QtrlyReport 31 Mar 2021 - HSP.docx

Page 5 of 14