Thakral : Press Release and Results for FY2021

FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT::FULL YEARLY RESULTS

Issuer & Securities

Issuer/ Manager

THAKRAL CORPORATION LTD

Securities

THAKRAL CORPORATION LTD - SG1AJ2000005 - AWI

Stapled Security

No

Announcement Details

Announcement Title

Financial Statements and Related Announcement

Date &Time of Broadcast

24-Feb-2022 17:22:19

Status

New

Announcement Sub Title

Full Yearly Results

Announcement Reference

SG220224OTHRY8IK

Submitted By (Co./ Ind. Name)

Anil Daryanani

Designation

Chief Financial Offcer

Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format)

Please refer to attached Press Release and Unaudited Results for the full year ended 31 December 2021.

Additional Details

For Financial Period Ended

31/12/2021

Attachments

ThakralCorp_FY2021_PR_20220224.pdf

ThakralCorp_Results_FY2021_20220224.pdf

Total size =812K MB

THAKRAL CORPORATION LTD

(Incorporated in the Republic of Singapore on 7 October 1993) (Company Registration No. 199306606E)

PRESS RELEASE

Thakral's Net Profit jumps 60% to S$26 million

Revenue grows by 42% to S$127.8 million for FY2021 over FY2020

• Group Net Asset Value per share rises to S$1.15 from S$1.13 in FY2020
• Group Earnings Per Share rises to 12.45 cents from 5 cents in FY2020
• All sectors report higher earnings compared to FY2020
• Second Interim Dividend of 2 cents per share

Singapore, 24 February 2022

SGX Mainboard-listed Thakral Corporation Ltd ("Thakral" or the "Group") delivered a sterling performance in FY2021 - capitalising on pandemic-driven market opportunities to drive growth and boost earnings.

For the financial year ended 31 December 2021 (FY2021), the Group's net profit grew by 60% to S$26 million compared to S$16.2 million in FY2020 with revenue surging 42% to S$127.8 million from S$90.1 million in FY2020. Profit attributable to shareholders rose substantially by 146% to reach S$16.1 million in FY2021 from S$6.5 million in FY2020.

In view of the Group's performance, the Group has proposed to reward shareholders with a second interim dividend of 2 cents per share - bringing the total dividend to 4 cents for FY2021.

Despite higher expenses and income taxes, the Group's bottom-line grew - benefiting from much stronger contributions from its associates and joint ventures, in particular, valuation gains from its investment properties as well as a robust turnaround of operations in its Lifestyle business segment.

The Group's Lifestyle business segment rebounded with a profit of S$1.9 million in FY2021 compared to a loss of S$4.3 million in FY2020. This profit turnaround included a fair value gain of S$0.9 million from its investment in e-commerce service provider Intrepid.

Share of profits from associates and joint ventures of S$27.6 million increased by 73 % from S$15.9 million in FY2020 and was mainly attributable to valuation gains on the underlying property assets.

Valuation gains from investment properties increased almost 4-fold to S$3.3 million from S$0.8 million in FY2020.

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Thakral Corporation Ltd

Company Registration No. 199306606E

Press Release - Results for FY2021

With improved demand for its houses in Gladstone Australia, the Group recorded a fair valuation uplift on these of S$2.3 million for the year. Its Riverwalk office property in Singapore also appreciated by S$1 million in FY2021.

Foreign exchange losses declined by 63% to S$0.16 million in FY2021 from S$0.42 million in FY2020.

For the six months ended 31 December 2021 (2HFY2021), the Group's net profit eased 21% to S$10.9 million from S$13.8 million registered in the corresponding period last year.

GemLife continues to do exceptionally well - benefiting from its product, location advantages, goodwill and public awareness generated by its quality product and facilities. Management's exceptional efforts to help residents to cope with the pandemic was well received by residents.

Its solid performance was also lifted by a buoyant residential market in Australia driven by buyers keen to unlock their wealth through downsizing and relocating to less congested locations1.

Completed sales of houses at GemLife's five active resorts were more than a third higher than last year. Including net unrealised valuation uplifts on land, the Group's share of GemLife's profit was about S$17.3 million in FY2021, compared to S$6.4 million in FY2020.

The Group also posted positive returns from its investments in Japan. The sale of the Riverpoint Kitahama Building in Osaka in Q3FY2021 netted a gain of about S$2.5 million compared to the original acquisition cost. All the loans against the Japanese investment properties were refinanced in Q4FY2021.

The Group continued to renew and sign-up new lease rentals as valuations of most of the Group's office property investments in Japan improved in FY2021.

While the 3 hotel properties in Osaka remain affected by the travel restrictions imposed, valuations stayed relatively stable as the economy is expected to recover to its pre- COVID-19 peak level in Q3 20222.

Revenue for FY2021 and 2HFY2021 climbed 42% and 40% respectively to S$127.8 million and S$66 million respectively.

The sales surge was mainly due to the Lifestyle business which booked in a 62% rise in revenue to S$112.7 million in the year under review against S$69.4 million the year earlier. The revenue rise was attributed to higher sales of DJI products as well as stronger demand for the Group's fragrance products in FY2021.

1. Benefits can boom with rightsizing, the new downsizinghttps://www.afr.com/property/residential/benefits-can-boom-with-rightsizing-the-new-downsizing-20210629-p585c6
2. Japan Major Report - Japan Market Outlook 2022

https://www.cbre.co.jp/en/research-reports/Japan-Major-Report---Japan-Market-Outlook-2022

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Thakral Corporation Ltd

Company Registration No. 199306606E

Press Release - Results for FY2021

The Group's Investment businesses saw lower revenues mainly due to construction delays for the completion of its Oxford Residences project in Sydney Australia.

Net Asset Value Per Share and Earnings Per Share

Net Asset Value of the Group per share as at 31 December 2021 edged up to S$1.15 from S$1.13 as at 31 December 2020.

The Group's FY2021 earnings per share more than doubled to 12.45 cents from 5 cents for FY2020.

Working Capital

Funds from its Japanese investments in Q4FY2021 as well as disposal gains from the Group's sale of its GLNG houses in Gladstone Australia helped improve the Group's cash balances as at 31 December 2021 to S$9.7 million from S$5.8 million as at 31 December 2020.

The Group's net cash outflow from operating activities rose to S$14 million for the current year compared to a net outflow of S$7.8 million in the previous year, due to net changes in working capital components.

Inventories also rose to S$14.7 million as at 31 December 2021 from S$8.3 million as at 31 December 2020, mainly due to the overall higher customer demand for DJI and fragrance products.

Segmental Performance of Core Businesses

The Group's core business segments showed notable improvement in FY2021.

Real Estate Investments

This business segment achieved revenues of S$15.1 million and segment result of S$38 million for the year ended 31 December 2021 respectively compared to S$20.7 million and S$32.2 million respectively in the previous year.

Australia

GemLife Joint Venture

The GemLife joint venture continues to deliver stellar results.

Sales and settlements at the Bribie Island, Highfields, Woodend, Maroochy Quays and the Pacific Paradise resorts are progressing well, with over 870 homes already occupied. Bribie Island has now completed all 404 homes, more than two years ahead of schedule.

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Thakral Corporation Ltd

Company Registration No. 199306606E

Press Release - Results for FY2021

Civil works of the final stages at Highfields and Woodend are underway with completion of the infrastructure required at those resorts, with only residential construction to commence. The clubhouse at Maroochy Quays was launched for the residents in September 2021, and civil works on the last stage is due to begin soon.

The Summer House at Pacific Paradise is now open and works are underway on Stage 2 of the resort. The first settlement at Palmwoods will be in Q1 2022, and house construction at Tweed Waters and Rainbow Beach will begin in the same quarter. Sales at all three resorts have been very strong with Tweed Waters almost sold out.

With the completion of the Sales & Experience Centre at Gold Coast, sales enquiries at this site have been strong and civil works have started in January 2022.

GemLife, a joint venture which the Group has with the Puljich family involving the development and management of over-50s lifestyle resorts in Australia, is currently exploring a number of potential expansion and growth opportunities including potentially a merger of its business with Living Gems, a company owned by the Puljich family operating a similar business. Whilst parties are still in preliminary discussions and there is no assurance that any firm agreement or understanding would be entered into, a merger of the businesses of GemLife and Living Gems could potentially make GemLife (together with Living Gems) one of the largest land lease operators in Australia. GemLife is looking to grow to more than 10,000 land lease homes across some 40 locations, including looking out for opportunities for sites outside Queensland, where most of its projects are located.

Other Residential Projects

The Group's other Australian property projects are progressing well. Almost all units at Parkridge Noosa have been settled and the Group has fully recouped its investment with partial returns received in Q4FY2021. The balance returns should be settled in FY2022.

Practical completion of the Oxford Residences in Sydney's Bondi Junction has been pushed back due to construction delays, including COVID-19 interruptions, but is expected by the end of Q1 2022. The delays have resulted in cost increases affecting the Group's returns for which provisions have been made in the FY2021 financial statements.

A number of Gladstone houses have been sold in FY2021 with prices and rentals continuing to improve from the previous year.

Construction of the Thornton Street project in Brisbane is well underway and on track for completion in July 2023.

The Group will remain selective in undertaking new potential projects in residential and other real estate segments to minimise market risks.

Japan

Japan's real estate sector is gradually recovering although office rentals remain soft.

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