Toolux Sanding S A : Rapport semestriel 2021

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, 2021 until June 30, 2021

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(euros)

TOOLUX SANDING SA

ITEMS	From January 1, 2021	From January 1, 2020	From January 1, 2020
to June 30,2021	to December 31,2020	to June 30,2020
SALES OF MAIN OPERATIONS	2 150 982	14	502	616	3 829 548
Less:cost of main operations	-765 376	-11	892	797	-2 753 059
GROSS PROFIT	1 385 606	2 609 819	1 076 489

Add: Income from other operations	27 185	185	034	33 840
Less: Selling	expenses	-125 095	-267 819	-124 837
Less: General	and administrative expenses	-1 564 596	-1 875	242	-886 123
Less: Financial expenses	-377 099	-798	936	-461 776
OPERATING INCOME	-653 999	-147 144	-362 407

Investment income(loss expressed with "-")	26 302	10	297	30 465
Non-operating income	949	29	024	3 860
Less:Sales tax and additions	-21 313	-68	270	-30 884
Less:Non-operating expenses	-244		-815	-265
PROFIT BEFORE TAX (LOSS EXPRESSED WITH "-")	-648 305	-176 908	-359 231
Less: Income tax			-373
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	-648 305	-177 281	-359 231
PROFIT PER SHARE (BASIC AND DILUTED)	-0,37	-0,10	-0,20

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(euros)

From January 1, 2021 to June 30, 2021

TOOLUX SANDING SA

ITEMS	June 30, 2021	December 31,2020	June 30, 2020
NON CURRENT ASSETS :
Property, plant and equipment	9 669 248	9 008 166	9 085 214
Less:Accumulated depreciation	-6 620 832	-6 149 511	-6 038 006
Property, plant and equipment (net value)	3 048 416	2 858 655	3 047 208
Construction in progress
Intangible assets	337 555	328 399	337 351
Long-term investment	159 922	153 160	154 921
Long-term prepaid assets	65 159	9 654	12 574
Deferred tax assets
TOTAL NON CURRENT ASSETS	3 611 052	3 349 868	3 552 054
CURRENT ASSETS:
Inventories	1 158 403	982 781	1 743 324
Trade debtors	1 786 311	2 336 069	1 523 176
Other receivable	6 158 191	6 609 892	7 060 636
Advances to suppliers	4 817 313	4 669 967	4 526 649
Cash and cash equivalents	8 539 141	7 229 373	6 443 159
TOTAL CURRENT ASSETS	22 459 359	21 828 082	21 296 944
TOTAL ASSETS	26 070 411	25 177 950	24 848 998
CURRENT LIABILITIES:
Bank borrowings	12 353 079	11 456 383	13 317 513
Notes payable	1 303 067	1 247 972	1 262 323
Trade creditors	3 460 646	3 177 382	2 481 032
Advances received from customers	80 984	271 637	60 148
Accrued payroll	114 957		123 469
Welfare benefits payable	4 985	126 839	30 076
Taxes payable	39 505	65 123	108 087
Other levies payable	6 891	6 496	8 525
Other payable	3 375 495	3 150 347	1 875 099
TOTAL CURRENT LIABILITIES	20 739 609	19 502 179	19 266 272
OWNERS'/SHAREHOLDERS' EQUITY
Subscribed capital	1 753 667	1 753 667	1 753 667
Other reserves	884 297	1 532 602	1 350 652
Exchange differences on translating foreign operations	2 692 838	2 389 502	2 478 407
TOTAL OWNERS' EQUITY	5 330 802	5 675 771	5 582 726
Non-controlling interests

TOTAL LIABILITIES & OWNERS' EQUITY

26 070 411

25 177 950

24 848 998

Toolux Sanding SA

Notes to the Consolidated Financial Statements for the six

months period ended June 30, 2021

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 20, 2021.

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, 2021 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 = 7.6742 Rmb as of June 30, 2021), and the average rate of exchange for the income statements items (1 Euro = 7.7980 Rmb for the period ended June 30, 2021). Exchange differences are dealt with as a movement exchange reserve accounted for in equity.

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