Reach Energy : Quarterly Financial Results for the Period 1 Jan 2023 to 31 Mar 2023

REACH ENERGY

BERHAD

Company no: 201301004557 (1034400-D)

(Incorporated in Malaysia)

Report

on

Unaudited

Quarterly Financial Results

for the Period

1 Jan 2023

to

31 Mar 2023

(The figures have not been audited)

REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		INDIVIDUAL	INDIVIDUAL	CUMULATIVE	CUMULATIVE
		QUARTER	QUARTER	QUARTER	QUARTER
		Unaudited	Unaudited for	Unaudited	Unaudited for
		for the quarter	the quarter	for the year	the year
		ended	ended	ended	ended
		31 Mar 23	31 Mar 22	31 Mar 23	31 Mar 22
	Note	RM'000	RM'000	RM'000	RM'000
Revenue		47,303	51,219	47,303	51,219
Operating expenses
Taxes other than income taxes		(15,657)	(14,439)	(15,657)	(14,439)
Purchase, services and other direct
costs		(8,324)	(6,502)	(8,324)	(6,502)
Depreciation and amortisation		(22,216)	(20,071)	(22,216)	(20,071)
Distribution expenses		(11,203)	(2,879)	(11,203)	(2,879)
Employee compensation costs		(3,847)	(3,265)	(3,847)	(3,265)
General and administration
expenses		(1,278)	(1,397)	(1,278)	(1,397)
Other operating (expenses)/income
- net		(4,318)	73	(4,318)	73
Total operating expenses		(66,843)	(48,480)	(66,843)	(48,480)
(Loss)/profit from operations		(19,540)	2,739	(19,540)	2,739
Finance income		641	10,803	641	10,803
Finance cost		(18,028)	(18,603)	(18,028)	(18,603)
Finance cost - net		(17,387)	(7,800)	(17,387)	(7,800)
Loss before taxation	B13	(36,927)	(5,061)	(36,927)	(5,061)
Income tax (expense)/benefit	B14	(3,080)	7,995	(3,080)	7,995
(Loss)/profit for the financial period		(40,007)	2,934	(40,007)	2,934
(Loss)/profit attributable to:
Owners of the Company		(26,693)	366	(26,693)	366
Non-controlling interests		(13,314)	2,568	(13,314)	2,568
(Loss)/profit for the financial period		(40,007)	2,934	(40,007)	2,934
(Loss)/earnings per share
attributable to owners of the	B12
Company
Basic (loss)/earnings per ordinary
share (RM):		(0.01)	0.0003	(0.01)	0.0003
Diluted (loss)/earnings per ordinary
share (RM):		(0.01)	0.0003	(0.01)	0.0003
(Loss)/profit for the financial period		(40,007)	2,934	(40,007)	2,934
Other comprehensive
income/(expense) net of tax
Items that will be reclassified
subsequently to profit or (loss):
- Foreign currency translation
Differences		1,907	610	1,907	610
Total comprehensive
(expense)/income for the
financial period		(38,100)	3,544	(38,100)	3,544

The unaudited condensed consolidated statement of comprehensive income should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2022 and the accompanying explanatory notes.

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REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONT'D)

	INDIVIDUAL	INDIVIDUAL	CUMULATIVE	CUMULATIVE
	QUARTER	QUARTER	QUARTER	QUARTER
	Unaudited	Unaudited for	Unaudited	Unaudited for
	for the quarter	the quarter	for the year	the year
	ended	ended	ended	ended
	31 Mar 23	31 Mar 22	31 Mar 23	31 Mar 22
Note	RM'000	RM'000	RM'000	RM'000
Total comprehensive
(expense)/income for the
period attributable to:
Owners of the Company	(25,548)	732	(25,548)	732
Non-controlling interests	(12,552)	2,812	(12,552)	2,812
Total comprehensive
(expense)/income for the
financial period	(38,100)	3,544	(38,100)	3,544

The unaudited condensed consolidated statement of comprehensive income should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2022 and the accompanying explanatory notes.

2

REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		Unaudited	Audited
		As at 31 Mar 23	As at 31 Dec 22
	Note	RM'000	RM'000
Assets
Non-current assets
Property, plant and equipment		1,242,573	1,257,518
Intangible assets		1,598	1,671
Right use of assets		3,885	3,997
Prepayment and other receivables		3,747	3,752
Restricted cash		10,085	9,045
Total non-current assets		1,261,888	1,275,983
Current assets
Inventories		3,944	5,470
Trade receivables		668	321
Prepayment and other receivables		26,053	22,847
Amount due from corporate shareholder in a subsidiary		4,064	4,064
Deposits, cash and bank balances		6,552	10,649
Total current assets		41,281	43,351
Total assets		1,303,169	1,319,334
Liabilities
Current liabilities
Trade payables		102,533	82,410
Accruals and other payables		89,690	34,772
Lease liabilities		730	755
Amounts due to related parties	A7	13,275	391,852
Tax payable		3,209	3,243
Borrowings	A7	8,023	29,289
Provisions		751	37,458
Total current liabilities		218,211	579,779
Net current liabilities		(176,930)	(536,428)
Total assets less current liabilities		1,084,958	739,555
Non-current liabilities
Deferred tax liabilities		82,174	82,067
Amounts due to related parties	A7	591,341	123,240
Trade payables		5,290	5,293
Accruals and other payables		-	291,616
Lease liabilities		2,896	2,807
Provisions		7,205	6,889
		688,906	511,912
Net assets		396,052	227,643
Equity
Capital		695,484	488,975
Other reserves		17,643	16,498
Accumulated losses		(350,358)	(323,665)
Equity attributable to owners of the Company		362,769	181,808
Non-controlling interest		33,283	45,835
Total Equity		396,052	227,643
Net assets per share (RM)		0.19	0.21

The unaudited condensed consolidated statement of financial position should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2022 and the accompanying explanatory notes.

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REACH ENERGY BERHAD

Company no. 201301004557 (1034400-D) (Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	-----------------------	Attributable to Equity Holders of the Company -------------------------	
	------------------------	Non-distributable-------------------------	
			Share-
			based	Foreign			Non-
	Share	Warrants	option	exchange	Accumulated		controlling	Total
	Capital	reserve	reserve	reserve	losses	Total	interest	Equity
	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000
As at 1 January 2023	488,975	-	-	16,498	(323,665)	181,808	45,835	227,643
Issuance of new ordinary shares	206,509	-	-	-	-	206,509	-	206,509
Loss for the financial year	-	-	-	-	(26,693)	(26,693)	(13,314)	(40,007)
Other comprehensive expense, net of tax
- Foreign currency translation	-	-	-	1,145	-	1,145	762	1,907
Total comprehensive income/(expense) for the financial year	-	-	-	1,145	(26,693)	(25,548)	(12,552)	(38,100)
As at 31 March 2023	695,484	-	-	17,643	(350,358)	362,769	33,283	396,052

The unaudited condensed consolidated statement of changes in equity should be read in conjunction with the audited consolidated financial statements for the financial year ended 31 December 2022 and the accompanying explanatory notes.

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