TBK & Sons : annual results announcement for the year ended 30 june 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited (the "Stock Exchange") take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

TBK & Sons Holdings Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 1960)

ANNUAL RESULTS ANNOUNCEMENT

FOR THE YEAR ENDED 30 JUNE 2020

The board (the "Board") of directors (the "Directors") of TBK & Sons Holdings Limited (the "Company") announces the audited consolidated financial results of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 30 June 2020 (the "Financial Year") together with the comparative figures for the year ended 30 June 2019.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 30 June 2020

		2020		2019
	Notes	RM'000	RM'000
Revenue	5	151,147	194,017
Cost of sales		(117,115)	(152,664)
Gross profit		34,032		41,353
Other income, net		5,273	408
Administrative expenses		(16,808)	(7,638)
Finance costs	6	(822)	(1,022)
Listing expenses		(3,838)	(8,226)
Profit before income tax expense	7	17,837		24,875
Income tax expense	8	(5,692)	(8,545)
Profit for the year		12,145		16,330

Other comprehensive income that may be reclassified

• subsequently to profit or loss, net of tax: Exchange differences on translation of

foreign operations		2,509	-
Total comprehensive income for the year		14,654		16,330
Earnings per share
	1.29 sen
- Basic and diluted (RM)	9	2.18 sen

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2020

			2020		2019
		Notes	RM'000	RM'000
Non-current assets
Property, plant and equipment		23,200	24,066
Deferred tax assets		301	-
			23,501		24,066
Current assets
Trade receivables, other receivables, deposits and
	prepayments	11	16,718		40,892
Assets held for distribution to
	Controlling Shareholders		-	2,101
Contract assets	12	49,656	61,258
Financial assets at fair value through profit or loss		5,665	-
Pledged time deposits and bank balances		39,625	7,629
Cash and cash equivalents		47,315	12,612
Tax recoverable		711	-
			159,690		124,492
Current liabilities
Trade and other payables	13	34,348		60,156
Obligations under finance leases		-	2,774
Lease liabilities		3,095	-
Bank borrowings		493	3,566
Dividend payable		-	5,600
Tax payable		-	732
			37,936		72,828
Net current assets		121,754		51,664
Total assets less current liabilities		145,255		75,730

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		2020		2019
	Notes	RM'000	RM'000
Non-current liabilities
Amounts due to directors		-	91
Obligations under finance leases		-	4,084
Lease liabilities		3,140	-
Bank borrowings		2,520	3,014
Deferred tax liabilities		-	693
		5,660		7,882
NET ASSETS		139,595		67,848
Equity
Share capital	14	5,300		-
Reserves		134,295	67,848
TOTAL EQUITY		139,595		67,848

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 30 June 2020

1. GENERAL INFORMATION, REORGANISATION AND SIGNIFICANT EVENTS

1. General information
   The Company was incorporated in the Cayman Islands as an exempted company with limited liability on 8 November 2018 under the Companies law of the Cayman Islands. The address of the Company's registered office is at the office of Conyers Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. Its address of principal place of business in Hong Kong and Malaysia are located at Unit 1903, 19/F., West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong and Lot 333, Kampung Paya, Batu 2 Jalan Seremban, Port Dickson, Negeri Sembilan, Malaysia, respectively. On 30 September 2019 (the "Listing Date"), the Company's shares were listed on the Main Board of the Stock Exchange by way of share offer (the "Share Offer").
   The Company is an investment holding company and its subsidiaries are principally engaged in the provision of civil and structural works (the "Listing Business"). The ultimate holding company of the Company is TBK & Sons International Limited ("TBKS International") which is incorporated in the British Virgin Islands.
2. Reorganisation
   Pursuant to a group reorganisation (the "Reorganisation") in preparation for the listing of the Company's shares on the Stock Exchange ("Listing") as set out in the section headed "History, Development and Reorganisation - Corporate Structure of the Group" in the prospectus (the "Prospectus") of the Company dated 16 September 2019, the Company became the holding company of the subsidiaries now comprising the Group on 5 September 2019.
3. Significant events
   Sudden change of Malaysian Government
   On 24 February 2020, Tun Mahathir the 7th Prime Minister of Malaysia suddenly tendered his resignation. His political party also pulled out of the ruling coalition causing the then ruling Government to collapse. Instead of a General Election been called to elect a new Government, the King exercised his power and appointed Muhyiddin Yasin as the 8th Prime Minister on 29 February 2020. Subsequently, a new cabinet was formed whereby all the earlier Ministers were replaced by the new Prime Minister.
   COVID-19
   The World Health Organisation ("WHO") declared the outbreak of COVID-19 first as a Public Health Emergency of International Concern on 30 January 2020 and as a pandemic on 11 March 2020. On 16 March 2020, the newly appointed Prime Minister of Malaysia announced that a Movement Control Order ("MCO") would be implemented from 18 March 2020 for two weeks. The MCO was extended several times until 10 June 2020 where it was replaced by a Recovery Movement Control Order ("RMCO") until 31 August 2020. The RMCO was subsequently extended until 31 December 2020.

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