Ancom Berhad : Quarterly Report for the financial ended 30 November 2021

ANCOM BERHAD (Registration No. 196901000122 (8440-M))

(Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT

FOR FINANCIAL QUARTER ENDED 30 NOVEMBER 2021

	Individual quarter ended	Year-to-date ended
	30.11.2021	30.11.2020	30.11.2021	30.11.2020
	RM'000	RM'000	RM'000	RM'000
Revenue	532,912	357,265	937,641	703,385
Cost of sales	(447,722)	(297,398)	(794,914)	(585,590)
Gross profit	85,190	59,867	142,727	117,795
Other income	1,585	1,010	5,934	3,981
Distribution expenses	(30,630)	(23,559)	(58,701)	(43,798)
Administrative expenses	(28,214)	(18,655)	(42,924)	(41,381)
Other operating expenses	(889)	(1,725)	(4,192)	(7,876)
Finance costs	(3,291)	(3,085)	(6,641)	(6,652)
Share of results of associates	240	(654)	434	(1,341)
Profit before taxation	23,991	13,199	36,637	20,728
Tax expense	(8,215)	(4,981)	(11,566)	(10,556)
Net profit for the financial period	15,776	8,218	25,071	10,172
Net profit attributable to
Owners of the parent	12,078	6,190	21,118	9,250
Non-controlling interests	3,698	2,028	3,953	922
	15,776	8,218	25,071	10,172
Earnings per ordinary share attributable
to equity holders of the Company
Basic earnings per share (sen)	4.92	2.59	8.60	3.86
Diluted earnings per share (sen)	4.02	2.59	7.03	3.86

The Unaudited Condensed Income Statement should be read in conjunction with the Company's Audited Financial Statements for the financial year ended 31 May 2021 and the accompanying notes to this Interim Financial Report.

1

ANCOM BERHAD (Registration No. 196901000122 (8440-M))

(Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR FINANCIAL QUARTER ENDED 30 NOVEMBER 2021

	Individual quarter ended	Year-to-date ended
	30.11.2021	30.11.2020	30.11.2021	30.11.2020
	RM'000	RM'000	RM'000	RM'000
Net profit for the financial period	15,776	8,218	25,071	10,172
Other comprehensive income
Item that may be reclassified
subsequently to profit or loss
Foreign currency translation	1,754	(1,178)	2,503	(5,956)
Other comprehensive income/(loss),ne	1,754	(1,178)	2,503	(5,956)
Total comprehensive income	17,530	7,040	27,574	4,216
Total comprehensive income
Owners of the parent	13,062	5,425	24,233	5,809
Non-controlling interests	4,468	1,615	3,341	(1,593)
	17,530	7,040	27,574	4,216

The Unaudited Condensed Statement of Comprehensive Income should be read in conjunction with the Company's Audited Financial Statements for the financial year ended 31 May 2021 and the accompanying notes to this Interim Financial Report.

2

ANCOM BERHAD (Registration No. 196901000122 (8440-M))

(Incorporated in Malaysia)

UNAUDITED CONDENSED STATEMENT OF FINANCIAL POSITION

AS AT 30 NOVEMBER 2021

		Unaudited		Audited
		30.11.2021	31.05.2021
ASSETS	RM'000		RM'000
Non-current assets
Property, plant and equipment	182,726	189,690
Investment properties	314	314
Investment in associates	6,152	5,718
Investment in a joint venture	-	-
Other investments	415	415
Intangible assets	5,162	5,778
Goodwill on consolidation	90,351	70,112
Rights-of-use assets	100,774	110,150
Deferred tax assets	25,802		25,341
		411,696	407,518
Current assets
Inventories	158,876	175,024
Receivables	408,010	355,233
Amounts owing by associates	9,875	9,108
Current tax assets	5,836	5,912
Other investments	2,975	3,031
Cash and cash equivalents	101,350		105,803
		686,922	654,111
Non-current assets held for sale		7,004		6,680
TOTAL ASSETS	1,105,622	1,068,309
EQUITY AND LIABILITES
Equity attributable to equity holders of the Company
Share capital	258,825	256,043
Reserves	141,346	112,404
Less : Treasury Shares, at cost	(5,196)		(6,248)
		394,975	362,199
Non-controlling interests		105,665	120,197
TOTAL EQUITY		500,640		482,396
LIABILITIES
Non-current liabilities
Borrowings	40,214	50,704
Long term lease liabilities	19,200	25,340
Deferred tax liabilities	10,243	10,374
Provision for retirement benefits	5,002		4,679
		74,659	91,097
Current liabilites
Payables	226,483	217,987
Amounts owing to associates	1,949	2,089
Borrowings	284,212	250,092
Short term lease liabilities	10,184	15,561
Contract liabilities	894	5,280
Current tax payables	6,601		3,807
		530,323		494,816
Total Liabilites	604,982	585,913
TOTAL EQUITY AND LIABILITES	1,105,622	1,068,309
Net assets per share attributable to owners of the parent (RM)	1.60	1.54

The Unaudited Condensed Consolidated Statement of Financial Position should be read in conjunction with the Company's Audited Financial Statements for the financial year ended 31 May 2021 and the accompanying notes to this Interim Financial Report.

3

ANCOM BERHAD (Registration No. 196901000122 (8440-M))

(Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL QUARTER ENDED 30 NOVEMBER 2021

		Attributable to equity holders of the Company
			Foreign					Non-
	Share	Capital	exchange	Share options	Treasury	Retained		controlling	Total
	capital	reserve	reserve	reserve	shares	Profits	Total	interests	equity
	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000
Balance as at 1 June 2020	245,766	273	10,752	-	(9,688)	64,604	311,707	111,854	423,561
Total comprehensive (loss)/income	-	-	(2,822)	-	-	23,731	20,909	6,709	27,618
Transactions with owners
Ordinary shares issued pursuant to:
- private placement	8,591	-	-	-	-	-	8,591	-	8,591
- Employees' Share Option Scheme ("ESOS")	1,704	-	-	(524)	-	-	1,180	-	1,180
Share issue expenses	(18)	-	-	-	-	-	(18)	-	(18)
Acquisition of a subsidiary	-	-	-	-	-	-	-	379	379
Disposal of equity interest of subsidiaries to non-controlling interests	-	-	-	-	-	11,659	11,659	1,934	13,593
Accretion of equity interest of a subsidiary	-	-	-	-	-	(152)	(152)	152	-
Resold of ordinary shares of the Company	-	-	-	-	3,440	2,427	5,867	-	5,867
Share options granted under ESOS	-	-	-	3,641	-	-	3,641	149	3,790
Dividennd-in-specie	-	-	-	-	-	(1,185)	(1,185)	1,176	(9)
Dividend paid to non-controlling interests of a subsidiary	-	-	-	-	-	-	-	(2,156)	(2,156)
	10,277	-	-	3,117	3,440	12,749	29,583	1,634	31,217
Balance as at 31 May 2021/1 June 2021	256,043	273	7,930	3,117	(6,248)	101,084	362,199	120,197	482,396
Total comprehensive income/(loss)	-	-	3,115	-	-	21,118	24,233	3,341	27,574
									-
Transactions with owners
Ordinary shares issued pursuant to:
- ESOS	2,710	-	-	(834)	-	-	1,876	-	1,876
- Warrants B	72	-	-	-	-	-	72	-	72
Acquisition of subsidiaries	-	-	-	-	-	-	-	(18,430)	(18,430)
Resold of ordinary shares of the Company	-	-	-	-	1,052	3,887	4,939	-	4,939
Derecognition of a subsidiary	-	-	-	-	-	-	-	980	980
Share options granted under ESOS	-	-	-	1,656	-	-	1,656	67	1,723
Dividennd-in-specie	-	-	-	-	-	-	-	-	-
Dividend paid to non-controlling interests of a subsidiary	-	-	-	-	-	-	-	(490)	(490)
	2,782	-	-	822	1,052	3,887	8,543	(17,873)	(9,330)
Balance as at 30 November 2021	258,825	273	11,045	3,939	(5,196)	126,089	394,975	105,665	500,640

The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Company's Audited Financial Statements for the financial year ended 31 May 2021 and the accompanying notes to this Interim Financial Report.

4

ANCOM BERHAD (Registration No. 196901000122 (8440-M))

(Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE FINANCIAL QUARTER ENDED 30 NOVEMBER 2021

	Year-to-date ended
	30.11.2021	30.11.2020
	RM'000			RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	36,638	20,728
Adjustments for non-cash items	26,693		27,535
Operating profit before working capital changes	63,331	48,263
Inventories	16,148	12,156
Receivables	(52,940)	(47,883)
Payables	(28,626)	21,391
Group companies	(907)		2,014
Net cash generated from operations	(2,994)	35,941
Income tax paid	(9,287)	(5,535)
Retirement benefit paid	(226)		(106)
Net cash (used in)/from operating activities	(12,507)	30,300
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(8,649)	(5,368)
Interest received	281	281
Acquisition of a subsidiary	25	-
Acquisition of associates	-	(235)
Proceed from disposal of equity interest in a subsidiary	-	13,189
Proceeds from disposal of property, plant and equipment	479	192
Sale/(Purchase) of other investments	56	1,030
Net cash outflow on disposal of a subsidiary	(13)	-
Purchase of right-of-use assets	-	(192)
Placement of short term deposits:
- pledged with licensed banks	(2)	(60)
- with maturity period more than three months	1,040			-
Net cash (used in)/from investing activities	(6,783)	8,837
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid to non-controlling interest of subsidiaries	(490)	(1,568)
Interest paid	(5,251)	(5,369)
Repayment of lease liabilities	(9,226)	(10,301)
Net drawdown/(repayment) of borrowings	24,374	(30,202)
Proceed from issuance of share capital:
- private placement	-	8,591
- ESOS	1,876	-
- Warrants B	72	-
Proceed from resale of treasury shares in open market	4,939			3,746
Net cash from/(used in) financing activities	16,294		(35,103)
Net (decrease)/increase in cash and cash equivalents	(2,996)	4,034
Cash and cash equivalents at the beginning of the financial period
92,908	72,466
Effect of exchange rate changes	324			583
	93,232		73,049
Cash and cash equivalents at the end of the financial period	90,236	77,083
Cash and cash equivalents include the following:
	RM'000			RM'000
Cash and bank balances	92,626	82,461
Bank overdrafts	(8,762)	(21,115)
Short term deposits	8,724		19,604
	92,588	80,950
Less : Short term deposits pledged to banks	(154)	(151)
Short term deposits with maturity more than 3 months	(2,198)		(3,716)
	90,236	77,083

The Unaudited Condensed Consolidated Statement of Cash Flow should be read in conjunction with the Company's Audited Financial Statements for the financial year ended 31 May 2021 and the accompanying notes to this Interim Financial Report.

5