VIP Gloves Limited
Appendix 4D
Half-year report
1. Company details
Name of entity: | VIP Gloves Limited | ||||
ABN: | 83 057 884 876 | ||||
only | For the half-year ended 31 December 2021 | ||||
Reporting period: | |||||
Previous period: | For the half-year ended 31 December 2020 | ||||
2. Results for announcement to the market | |||||
$ | |||||
Revenues from ordinary activities | down | 71.3% | to | 6,014,021 | |
use | down | 313.8% | to | (4,815,879) | |
Loss from ordinary activities after tax | |||||
Loss for the half-year | down | 313.8% | to | (4,815,879) |
Comments
The loss for the consolidated entity after providing for income tax amounted to $4,815,879 (31 December 2020: profit of $2,253,008). The loss result includes a write-down of stock of $312,934 due to cost of production being higher than net realisable value of stock, recognition of a share-based payment expense of $697,150 relating to the issue of options and performance rights.
personal | |||||
3. Net tangible assets | |||||
Reporting | Previous | ||||
period | period | ||||
Cents | Cents | ||||
Net tangible assets per ordinary security | 2.01 | 2.51 | |||
4. Control gained over entities | |||||
Not applicable. | |||||
5. Loss of control over entities | |||||
Not applicable. | |||||
For | |||||
6. Dividends | |||||
Current period | Franked | ||||
Amount per | amount per | ||||
security | security | ||||
Cents | Cents | ||||
Final dividend for the year ended 30 June 2021 | 0.050 | - | |||
Previous period | |||||
There were no dividends paid, recommended or declared during the previous financial period. | |||||
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VIP Gloves Limited
Appendix 4D
Half-year report
7. Details of associates and joint venture entities
Not applicable.
only8. Audit qualification or review
Details of audit/review dispute or qualification (if any):
The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report.
9. Attachments | ||
use | ||
D tails of attachments (if any): | ||
The Interim Report of VIP Gloves Limited for the half-year ended 31 December 2021 is attached. | ||
10. Signed | ||
personalFor | Date: 25 February 2022 | |
Kai Fatt Wong
Director
Melbourne
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onlyVIP Gloves Limited
ABN 83 057 884 876
useInterim Report - 31 December 2021 (V7) personalFor
VIP Gloves Limited Corporate directory 31 December 2021
Directors
onlyCompany secretary Registered office
usePrincipal place of business
Share register
personalAuditor
Bankers
Stock exchange listing
W bsite
For
Dr Kai Fatt (Joe) Wong - Non-Executive Chairman, Independent Chin Kar Yang - Managing Director
Kay Wen Cheng - Executive Director
How Weng Chang - Non-Executive Director, Independent Peter Yee Ming Ng - Non-Executive Director, Independent Joanne King - Non-Executive Director, Independent
Andrew Metcalfe
C/- Accosec & Associates
Level 26
360 Collins Street
Melbourne VIC 3000
Australia
No. 17 Jalan Perusahaan 1,
Kawasan Perusahaan, Beranang
43700 Beranang, Selangor Darul Ehsan
Malaysia
Boardroom Limited
Level 7, 207 Kent Street
Sydney NSW 2000
Investor phone number: (Australia) 1300 737 760
Investor phone number: (Overseas) +61 (0) 2 9290 9600
William Buck Audit (Vic) Pty Ltd
Level 20, 181 William Street
Melbourne VIC 3000
Westpac Banking Corporation Ltd
Melbourne, Australia
Hong Leong Bank
Kuala Lumpur, Malaysia
VIP Gloves Limited shares are listed on the Australian Securities Exchange (ASX code: VIP)
www.vipglove.com.my
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VIP Gloves Limited Directors' report
31 December 2021
The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of VIP Gloves Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021.
onlyDr Kai Fatt (Joe) Wong - Non-Executive Chairman, Independent Chin Kar Yang - Managing Director
Directors
The following persons were directors of VIP Gloves Ltd during the whole of the financial half-year and up to the date of this report, unless otherwise stated:
Kay Wen Chen - Executive Director
H w Weng Chang - Non-Executive Director, Independent
Peter Yee Ming Ng - Non-Executive Director, Independent
Joanne King - Non-Executive Director, Independent (appointed 17 January 2022)
Ch e Cheong Low - Non-Executive Director, Independent (resigned 23 November 2021)
Principal activities
The principal activity of the Company during the reporting period was the production of nitrile gloves in Malaysia under its wholly owned Malaysian subsidiaries, VIP Glove Sdn Bhd ("VIP Glove") and KLE Products Sdn Bhd ("KLE Products").
Dividends | |||
use | |||
Dividends paid during the financial half-year were as follows: | |||
Consolidated | |||
31 Dec 2021 | 31 Dec 2020 | ||
$ | $ | ||
Fi al dividend for the year ended 30 June 2021 of 0.05 cents per share ($0.0005). | 346,856 | - | |
personal | |||
The Company has not accumulated any franking account credits. Consequently, the dividend paid was unfranked.
The Company's dividend policy is a dividend payout ratio of between 20% and 40% of earnings before significant items, ubject to the Company's financial position.
Review of operations
The loss for the consolidated entity after providing for income tax amounted to $4,815,879 (31 December 2020: profit of $2,253,008).
The loss result includes a write-down of stock of $312,934 due to cost of production being higher than net realisable value of stock, recognition of a share-based payment expense of $7,181 relating to the issue of options and $635,696 relating to the recognition of performance rights expense.
COVID-19 resulted in the implementation of the Movement Control Order (MCO) in Malaysia since 18 March 2020 to curb the COVID-19 virus under the Prevention and Control of Infectious Diseases Act 1988 and the Police Act 1967. All Forapp opriate steps were taken to protect the health, safety and welfare of all employees, employee families, customers, suppliers, and the broader community. The Company introduced several operational protocols and steps to ensure the safety
and well-being of all parties, as well as maintaining the ongoing operation of our facilities during the COVID-19 pandemic.
The loss has been attributable to the impact of the Covid-19 pandemic on glove production in order to comply with Malaysian Control Orders, increased production costs in particular raw material and natural gas, increased competition and supply of gloves in Malaysia and a decrease and normalising of average selling prices for nitrile gloves in the glove manufacturing sector.
Construction of production Lines 7 and 8 continued through-out the reporting period with completion delayed due to implementation of the MCO. There were no other capital works commenced during the reporting period.
During the reporting period, the Company repaid in excess of $83,149 of interest-bearing debt; and there was no repayment of the deposit received for the sale and leaseback transaction.
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Voltage IP Limited published this content on 25 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2022 07:51:07 UTC.