Toolux Sanding S A : Rapport semestriel 2020

TOOLUX SANDING S.A

Registered office: 3B, Boulevard du Prince Henri

L-1724 LUXEMBOURG

R.C.S Luxembourg B-142.041

Unaudited Consolidated Interim

Financial Statements for the period

From January 1, 2020 until June 30, 2020

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(euros)

TOOLUX SANDING SA

ITEMS	From January 1, 2020	From January 1, 2019	From January 1, 2019
to June 30,2020	to December 31,2019	to June 30,2019
SALES OF MAIN OPERATIONS	3 829 548	16	078	278	5 408 983
Less:cost of main operations	-2 753 059	-13	516	636	-3 549 194
GROSS PROFIT	1 076 489	2 561 642	1 859 789

Add: Income from other operations	33 840	178	013	97 600
Less: Selling	expenses	-124 837	-300 824	-316 591
Less: General	and administrative expenses	-886 123	-2 509	299	-1 354 207
Less: Financial expenses	-461 776	-858	551	-697 650
OPERATING INCOME	-362 407	-929 019	-411 059

Investment income(loss expressed with "-")	30 465	-3 582	724	3 369
Non-operating income	3 860	86	400	76 720
Less:Sales tax and additions	-30 884	-36	331	-20 891
Less:Non-operating expenses	-265	-12	542	-11 514
PROFIT BEFORE TAX (LOSS EXPRESSED WITH "-")	-359 231	-4 474 216	-363 375
Less: Income tax		-7 583
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	-359 231	-4 481 799	-363 375
PROFIT PER SHARE (BASIC AND DILUTED)	-0,20	-2,56	-0,21

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(euros)

From January 1, 2020 to June 30, 2020

TOOLUX SANDING SA

ITEMS	June 30, 2020	December 31,2019	June 30, 2019
NON CURRENT ASSETS :
Property, plant and equipment	9 085 214	9 197 128	17 359 100
Less:Accumulated depreciation	-6 038 006	-5 917 396	-6 500 017
Property, plant and equipment (net value)	3 047 208	3 279 732	10 859 083
Construction in progress			670 119
Intangible assets	337 351	346 967	812 787
Long-term investment	154 921	156 930	156 970
Long-term prepaid assets	12 574	15 146	23 708
Deferred tax assets
TOTAL NON CURRENT ASSETS	3 552 054	3 798 775	12 522 667
CURRENT ASSETS:
Inventories	1 743 324	2 724 509	2 884 790
Trade debtors	1 523 176	1 307 605	958 417
Other receivable	7 060 636	7 007 949	7 368 443
Advances to suppliers	4 526 649	4 634 812	5 820 722
Cash and cash equivalents	6 443 159	5 904 951	7 200 807
TOTAL CURRENT ASSETS	21 296 944	21 579 826	24 233 179
TOTAL ASSETS	24 848 998	25 378 601	36 755 846
CURRENT LIABILITIES:
Bank borrowings	13 317 513	13 681 990	19 276 076
Notes payable	1 262 323		1 534 821
Trade creditors	2 481 032	1 847 823	2 133 414
Advances received from customers	60 148	610 406	833 630
Accrued payroll	123 469		153 107
Welfare benefits payable	30 076	173 704	30 473
Taxes payable	108 087	98 048	44 027
Other levies payable	8 525	7 497	5 454
Other payable	1 875 099	2 928 671	2 573 355
TOTAL CURRENT LIABILITIES	19 266 272	19 348 139	26 584 357
OWNERS'/SHAREHOLDERS' EQUITY
Subscribed capital	1 753 667	1 753 667	1 753 667
Other reserves	1 350 652	1 709 883	5 828 306
Exchange differences on translating foreign operations	2 478 407	2 566 912	2 479 527
TOTAL OWNERS' EQUITY	5 582 726	6 030 462	10 061 500
Non-controlling interests			109 989

TOTAL LIABILITIES & OWNERS' EQUITY

24 848 998

25 378 601

36 755 846

Toolux Sanding SA

Notes to the Consolidated Financial Statements for the six

months period ended June 30, 2020

1. General Information

The consolidated financial statements of Toolux Sanding SA ("the Company") and its subsidiaries (collectively referred as "the Group") are prepared for the six months period ended June 30, 2020.

The registered office is located at 3B, boulevard du Prince Henri, L-1724 Luxembourg.

The company was incorporated on 2th October 2008 as a Société Anonyme with a fully paid share capital of Euros 350 000.

On 13th October 2008, the directors increased, by a contribution in kind, the capital of the Company by 1 000 000 euros to bring it from 350 000 euros to 1 350 000 euros by the issuance of 1 000 000 new shares with a nominal value of 1 euro each.

The contribution in kind was represented by 100 % of the share capital of Giant Dragon Holdings Ltd (Samoa), a company incorporated in Samoa on 17th January 2007 with registered number 30466 and located at Level 2, Nia Mall, Vaea Street, Apia, Samoa. The contribution in kind value was based on Giant Dragon Holdings Ltd net asset value as at June 30, 2008.

On December 17, 2008, in connection with the admission of the Company on Alternext Market of Euronext Paris, the board of directors realized an increase of the issued share capital paid up in cash to bring it from 1 350 000 Euros to 1 753 667 Euros (1 753 667 shares of 1 euro each). The total amount of the contribution is five million eighty-two thousand one hundred and sixty seven Euros fifty three cents (EUROS 5 082 167,53) represented by four hundred and three thousand six hundred and sixty seven Euros (403 667) for the capital and four million six hundred and seventy-eight thousand five hundred euro fifty three cents (4 678 500,53 Euros) for the share premium.

On December 2, 2008, the company acquired from Giant Dragon Holdings Ltd, for a consideration of 2 998 000 usd, 100 % of the share capital of Shaoxing Sanding Tools Ltd, a Chinese company with registered office at Industrial Park, Ganlin Town, Shenghzou City, Zhejiang Province, China.

The principal activities of Shaoxing Sanding Tools and of its subsidiary, Zhejiang Sanding Tools are the manufacturing and selling of plastic and metal tools.

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1. Basis of preparation

Basis of accounting

The consolidated financial statements for the six months period ended June 30, 2020 were prepared on the basis of reviewed financial statements of the following companies :

• Toolux Sanding SA (the company)
• Shaoxing Sanding Tools Ltd (People's Republic of China subsidiary) ;
• Zhejiang Sanding Tools Ltd (People's Republic of China subsidiary) ;

The consolidated financial statements of the Group, expressed in euros, have been prepared in accordance with International Financial Reporting Standards ("IFRS") under the historical cost convention, except as disclosed in the accounting policies below.

Significant accounting estimates and judgments

The preparation of the consolidated financial statements in conformity with IFRS requires the use of judgments, estimate and assumptions, if any, that affect the reported amounts of assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the financial year. Although these estimates are based on management's best knowledge of current events and actions, actual results may differ from those estimates.

Foreign Currency Translation

Items included in the financial statements of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The functional currency of the subsidiaries is Renminbi ("RMB") whereas the consolidated financial statements are presented in euros, which is the Group's presentation currency.

The subsidiaries'transactions in foreign currencies are converted at the market exchange rate published by People's Bank of China on the transaction date. The ending balances of various foreign currency accounts are adjusted per the exchange rate (the medium rate) prevailing at the last month of the period.

The financial statements of the overseas subsidiaries are translated into the Group's presentation currency using the year end rate for the balance sheet items (1 Euro = 7.9219 Rmb as of June 30, 2020) and the average rate of exchange for the income statements items (1 Euro = 7.7481 Rmb for the period ended June 30, 2020).

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