Poh Kong Berhad : The Financial Period Ended 31 January 2022

POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 31 JANUARY 2022

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	AS AT		AS AT
	31.1.2022	31.7.2021
	RM'000		RM'000
			(Audited)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	90,490		92,280
Right of use assets	42,838		53,042
Investment properties	12,376		12,709
Investment in an associate	7,765		7,765
Other investments	228		228
Goodwill on consolidation	1,485		1,485
Deferred tax assets	11,970		11,849
	167,152		179,358
CURRENT ASSETS
Inventories	619,503		594,777
Trade and other receivables	4,870		2,890
Deposits and prepayments	10,263		10,792
Current tax assets	1,227		835
Fixed deposits placed with licensed banks	26,062		10,259
Cash and bank balances	28,335		9,414
	690,260		628,967
TOTAL ASSETS	857,412	808,325
EQUITY AND LIABILITIES
Equity attributable to owners of the Company
Share capital	205,176		205,176
Reserves	426,841		396,998
TOTAL EQUITY	632,017		602,174
NON-CURRENT LIABILITIES
Long-term borrowings	34,554		46,124
Deferred tax liabilities	13,970		13,970
	48,524		60,094
CURRENT LIABILITIES
Trade and other payables	16,304		11,016
Deposits and accruals	10,359		6,699
Contract liabilities	9,188		9,225
Provision for restoration costs	400		400
Amount due to ultimate holding company	1,300		1,331
Amount due to directors (Note 1)	1,733		1,894
Dividend payables	4,924		-
Short-term borrowings	128,998		110,854
Current tax liabilities	3,665		4,638
	176,871		146,057
TOTAL LIABILITIES	225,395		206,151
TOTAL EQUITY AND LIABILITIES	857,412		808,325
Net assets per share attributable to owners of	1.54	1.47
the Company (RM)

Note 1: Amount due to directors consists of directors' fee and directors' other emoluments.

(The Unaudited Condensed Consolidated Statement of Financial Position should be read in 1

conjunction with the Audited Financial Statements for the year ended 31 July 2021)

POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 31 JANUARY 2022

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	INDIVIDUAL QUARTER		CUMULATIVE QUARTER
	QUARTER		QUARTER		PERIOD		PERIOD
	ENDED		ENDED		ENDED		ENDED
	31.1.2022	31.1.2021	31.1.2022	31.1.2021
	RM'000		RM'000		RM'000		RM'000
Revenue	406,457	231,387	581,751	453,292
Other operating income	1,376	1,000	2,800	1,790
Operating expenses	(369,023)	(214,946)	(536,917)	(415,991)
Profit from operations	38,810	17,441	47,634	39,091
Finance income	108	67	171	144
Finance costs	(2,140)		(2,909)		(3,396)		(5,371)
Profit before tax	36,778	14,599	44,409	33,864
Income tax expense	(7,430)		(3,245)		(9,642)		(7,866)
Profit after tax	29,348		11,354		34,767		25,998
Other comprehensive expense	-	-	-	-
Total Comprehensive Income	29,348	11,354	34,767	25,998
Profit after tax attributable to:
Owners of the Company	29,348	11,354	34,767	25,998
Non-controlling Interests	-		-		-		-
	29,348	11,354	34,767	25,998
Total comprehensive income attributable to:
Owners of the Company	29,348	11,354	34,767	25,998
Non-controlling Interests	-		-		-		-
	29,348	11,354	34,767	25,998
Earnings per share attributable to
Owners of the Company
- basic (sen)	7.15		2.77		8.47		6.34
- diluted (sen)	7.15		2.77		8.47		6.34

(The Unaudited Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Audited Financial Statements for the year ended 31 July 2021)

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POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 31 JANUARY 2022 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Attributable to owners of the Company
	Share	Revaluation	Retained	Total
	capital	reserve	earnings	equity
	RM'000	RM'000	RM'000	RM'000
At 1 August 2020	205,176	41,635	323,414	570,225
Realisation of revaluation reserve	-	25	-	25
Profit for the financial year	-	-	25,998	25,998
Dividends	-	-	(4,924)	(4,924)
At 31 January 2021	205,176	41,660	344,488	591,324
At 1 August 2021	205,176	41,747	355,251	602,174
Profit for the financial year	-	-	34,767	34,767
Dividends	-	-	(4,924)	(4,924)
At 31 January 2022	205,176	41,747	385,094	632,017

(The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the year ended 31 July 2021)

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POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 31 JANUARY 2022

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
	CUMULATIVE QUARTER
	PERIOD		PERIOD
	ENDED		ENDED
	31.1.2022	31.1.2021
	RM'000		RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	44,409	33,864
Adjustments for:
Depreciation of property, plant and equipment and investment properties	4,108		3,710
Depreciation of right of use assets	10,204		11,235
Net gain on disposal of property, plant and equipment	(100)		(33)
Property, plant and equipment written off	11		99
Dividend income	-		(300)
Interest income	(171)		(144)
Interest expense	3,396		5,371
Operating profit before working capital changes	61,857	53,802
Inventories	(24,726)		(43,851)
Receivables	(1,451)		388
Payables	8,948		8,133
Contract liabilities	(37)		489
Net cash generated from operations	44,591	18,961
Tax paid	(11,128)		(2,109)
Net cash generated from operating activities	33,463	16,852
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received	171		144
Dividend received	-		300
Proceeds from disposal of property, plant and equipment	100		33
Purchase of property, plant and equipment	(1,997)		(1,052)
Net cash used in investing activities	(1,726)	(575)
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid	(3,396)		(3,976)
Placement of fixed deposit	(3)		(6)
Net loans repayment	17,510		(6,359)
(Decrease) / Increase in amount due to ultimate holding company	(31)		10
(Decrease) / Increase in amount due to directors	(161)		105
Repayment of lease liabilities	(10,948)		(13,144)
Net cash generated from / (used in) financing activities	2,971		(23,370)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS	34,708	(7,093)
OPENING CASH AND CASH EQUIVALENTS	18,364		33,148
CLOSING CASH AND CASH EQUIVALENTS	53,072	26,055
Cash and cash equivalents comprise the following:
Fixed deposits with licensed banks	26,062	19,240
Bank overdraft	(13)	(42)
Cash and bank balances	28,335		8,147
	54,384	27,345
Less: - Fixed deposits pledged to licensed banks	(1,312)		(1,290)
	53,072		26,055

(The Unaudited Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Audited Financial Statements for the year ended 31 July 2021)

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POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE SECOND QUARTER ENDED 31 JANUARY 2022

1. NOTES TO THE INTERIM FINANCIAL REPORT

A1. Accounting Policies and Methods of Computation

The interim financial report has been prepared in accordance with Malaysian Financial Reporting Standard ("MFRS")

1. Interim Financial Reporting and Chapter 9, Paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad, and should be read in conjunction with the Audited Financial Statements for the year ended 31 July 2021.

The significant accounting policies and methods of computation adopted in the preparation of this interim financial report are consistent with those adopted in the audited financial statements of the Group and of the Company for the financial year ended 31 July 2021.

The Group and the Company have not adopted the following new MFRS and amendments/improvements to MFRS that have been issued, but yet to be effective:

		Effective for financial periods
		beginning on or after
New MFRS		1 January 2023
MFRS 17	Insurance Contracts
Amendments/Improvements to MFRSs
MFRS 1	First-time Adoption of Malaysian Financial Reporting	1 January 2022^/
	Standards	1 January 2023#
MFRS 3	Business Combinations	1 January 2022/
		1 January 2023#
MFRS 5	Non-current Assets Held for Sale and Discontinued	1 January 2023#
	Operations
MFRS 7	Financial Instruments: Disclosures	1 January 2023#
MFRS 9	Financial Instruments	1 January 2022^/
		1 January 2023#
MFRS 10	Consolidated Financial Statements	Deferred
MFRS 15	Revenue from Contracts with Customers	1 January 2023#
MFRS 16	Leases	1 January 2022^
MFRS 17	Insurance Contracts	1 January 2023
MFRS 101	Presentation of Financial Statements	1 January 2023/
		1 January 2023#
MFRS 107	Statements of Cash Flows	1 January 2023#
MFRS 108	Accounting Policies, Changes in Accounting Estimates	1 January 2023
	and Errors
MFRS 112	Income Taxes	1 January 2023
MFRS 116	Property, Plant and Equipment	1 January 2022/
		1 January 2023#
MFRS 119	Employee Benefits	1 January 2023#
MFRS 128	Investments in Associates and Joint Ventures	Deferred/
		1 January 2023#
MFRS 132	Financial instruments: Presentation	1 January 2023#
MFRS 136	Impairment of Assets	1 January 2023#
MFRS 137	Provisions, Contingent Liabilities and Contingent Assets	1 January 2022/
		1 January 2023#
MFRS 138	Intangible Assets	1 January 2023#
MFRS 140	Investment Property	1 January 2023#
MFRS 141	Agriculture	1 January 2022^

^The Annual Improvements to MFRS Standards 2018-2020

# Amendments as to the consequence of effective of MFRS 17 Insurance Contracts

The Group and the Company plan to adopt the above applicable new MFRS and Amendments/Improvements to MFRSs when they become effective.

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