| SGX Symbol: | L5I |
|---|---|
| Currency: | SGD |
| Last Done: | 0.680 |
| Volume ('000): | 372 |
| Change: | - |
| % Change: | - |
| Day's Range: | 0.660 - 0.680 |
| 52 Weeks' Range: | 0.620 - 1.330 |
Unaudited Financial Statements and Dividend Announcement for the Third Quarter Ended 30 September 2011
Financials Archive
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Profit & Loss
| THE GROUP | ||||||
|---|---|---|---|---|---|---|
| Quarter ended 30 September | 9 months ended 30 September | |||||
| 2011 S$'000 |
2010 S$'000 |
Changes % |
2009 S$'000 |
2010 S$'000 |
Changes % |
|
| Revenue | 9,882 | 10,541 | -6% | 22,578 | 113,521 | -80% |
| Cost of Sales | (9,157) | (9,986) | -8% | (21,096) | (105,177) | -80% |
| Gross Profit | 725 | 555 | 31% | 1,482 | 8,344 | -82% |
| Other operating income | 6,021 | 11,861 | -49% | 4,378 | 16,623 | -74% |
| Administrative expenses | (2,408) | (1,476) | 63% | (6,206) | (5,507) | 13% |
| Other operating expenses | (2,308) | (2,339) | -1% | (4,320) | (2,889) | 50% |
| Finance costs | (439) | (1,495) | -71% | (1,092) | (3,139) | -65% |
| Share of results of associates | 472 | (348) | -236% | 531 | (180) | -395% |
| Profit/(loss) before tax | 2,063 | 6,758 | -69% | (5,227) | 13,252 | -139% |
| Income tax | - | (257) | -100% | - | (685) | -100% |
| Profit/(loss) after tax | 2,063 | 6,501 | -68% | (5,227) | 12,567 | -142% |
| Other comprehensive income: | ||||||
| Currency translation difference | 4,121 | (3,701) | -211% | 2,159 | (3,713) | -158% |
| Total comprehensive income/(expense) for the period | 6,184 | 2,800 | 121% | (3,068) | 8,854 | -135% |
| Profit/(loss) for the period attributable to: | ||||||
| Equity holders of the Company | 2,092 | 6,706 | -69% | (4,964) | 12,814 | -139% |
| Non-controlling interest | (29) | (205) | -86% | (263) | (247) | 6% |
| 2,063 | 6,501 | -68% | (5,227) | 12,567 | -142% | |
| Total comprehensive income/(expense) for the period attributable to: | ||||||
| Equity holders of the Company | 6,445 | 4,157 | 55% | (1,975) | 10,253 | -119% |
| Non-controlling interest | (261) | (1,357) | -81% | (1,093) | (1,399) | -22% |
| 6,184 | 2,800 | 121% | (3,068) | 8,854 | -135% | |
NM – not meaningful
Balance Sheet
| THE GROUP |
||
|---|---|---|
| (audited) | ||
| 30.09.11 S$'000 |
31.12.10 S$'000 |
|
| ASSETS | ||
| Current assets | ||
| Cash and bank balances | 2,456 | 8,879 |
| Trade receivables | 4,664 | 23,005 |
| Financial assets, at fair value through profit or loss | 35,992 | 35,272 |
| Other receivables, deposits and prepayments | 92,521 | 53,886 |
| Total current assets | 135,633 | 121,042 |
| Non-current assets | ||
| Property, plant and equipment | 12,782 | 11,478 |
| Subsidiaries | - | - |
| Associates | 153,065 | 149,354 |
| Financial assets, available-for-sale | 12,345 | 12,345 |
| Derivative financial assets | 1,617 | 1,704 |
| Intangible asset | 6,294 | 1,954 |
| Investment properties | 21,850 | 21,850 |
| Total non-current assets | 207,953 | 198,685 |
| Total assets | 343,586 | 319,727 |
| LIABILITIES | ||
| Current liabilities | ||
| Trade payables | 1,890 | 966 |
| Other payables and accruals | 19,961 | 14,007 |
| Provision | 3,000 | 3,000 |
| Income tax payable | 3 | 143 |
| Term loans | 47,911 | 51,321 |
| Total current liabilities | 72,765 | 69,437 |
| Non-current liabilities | ||
| Deferred taxation | 299 | 299 |
| Total non-current liabilities | 299 | 299 |
| Total liabilities | 73,064 | 69,736 |
| NET ASSETS | 270,522 | 249,991 |
| EQUITY | ||
| Capital, reserves and non-controlling interest | ||
| Share capital | 252,187 | 229,692 |
| Reserves | (3,970) | (3,099) |
| Non-controlling interest | 22,305 | 23,398 |
| TOTAL EQUITY | 270,522 | 249,991 |
Review Of Performance
Review of Consolidated Statement of Comprehensive Income
Revenue
Revenue for the 3Q 2011 slightly decreased by S$0.7 million as compared with the corresponding period mainly due to the lack of credit facilities.
Other operating income
Other operating income for the 3Q 2011 decreased by S$5.8 million as compared with the corresponding period, which was brought by the net effect of the absence of negative goodwill of S$11.2 million arising from the acquisition of the Max Harvest Group during last period and the exchange gain of S$4.2 million recorded during the current period, which was mainly attributed to the Renminbi denominated deposit as Renminbi appreciated against Singapore dollars in 3Q 2011.
Administrative expenses
Administrative expenses for the 3Q 2011 increased by S$0.9 million as compared with the corresponding period, which was mainly attributed to the increase in the professional fees during the quarter.
Finance costs
Finance costs for the 3Q 2011 decreased by S$1.1 million as compared with the corresponding period. This was largely attributable to the partial repayment to the bank loan during 2010 and the current period. Moreover, less charges on bills discounting and L/C was noted in the current period as a result of less trading activities in the current period.
Net profit after tax
In view of the above, the Group recorded a profit after tax of S$2.1 million for the 3Q 2011 as compared with the profit after tax of S$6.5 million for the corresponding period in 2010.
Review of Consolidated Statement of Financial Position
Cash and bank
Cash and bank balances of the Group decreased from S$8.9 million at 31 December 2010 to S$2.5 million at 30 September 2011. See Review of Statement of Cash Flows.
Trade receivables
Trade receivables of the Group decreased from S$23.0 million at 31 December 2010 to S$4.7 million at 30 September 2011. The decrease was attributable to the repayment of trade receivables from a major trade debtor during the period.
Other receivables, deposits and prepayments
Other receivables, deposits and prepayments increased from S$53.9 million at 31 December 2010 to S$92.5 million at 30 September 2011. The increase was mainly due to the deposit paid for the acquisition of 54.42% of equity interest in Zuoquan Xinrui Metallurgy Mine Co. Ltd ("Xinrui") of S$89.8 million, offset by the refund of prepayment of S$18.0 million from a metallurgical coke supplier due to the cancellation of the transaction.
Intangible assets
Intangible assets increased from S$2.0 million at 31 December 2010 to S$6.3 million at 30 September 2011. The increase was mainly due to the acquisition of mining rights in Australia in May 2011, which amounted to S$4.9 million.
Term loans
Term loans decreased from S$51.3 million at 31 December 2010 to S$47.9 million at 30 September 2011 mainly due to the partial repayment of term loans and the repayment of loan notes during the period.
Review of Consolidated Statement of Cash Flows
Cash outflows from operating activities were S$2.8 million for the 3Q 2011, compared to cash inflows of S$5.2 million in the corresponding period of prior year. Cash outflow from operating activities was mainly due to the payment of operating expenses and prepayments made to supplier.
Cash from financing activities shows an outflow of S$0.3 million mainly due to the repayments of borrowings.
Commentary
Stable revenue streams were generated from the Group's trading activities since 2Q 2011. The Group will continue to broaden its base of suppliers and customers as well as to seek more credit facilities to support its trading activities. Barring any unforeseen circumstances, the Group is cautiously optimistic that so long as it can secure more credit facilities, its trading activities will show improvement in the year ahead.