BEST WORLD INTERNATIONAL LIMITED
Company Registration No. 199006030Z
MATERIAL DIFFERENCES BETWEEN THE AUDITED FINANCIAL STATEMENTS AND THE UNAUDITED FINANCIAL RESULTS ANNOUNCEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021
The Board of Directors (the "Board") of Best World International Limited (the "Company") and together with its subsidiaries (the "Group") refers to the unaudited full year results announcement for the financial year ended 31 December 2021 ("FY2021") released on 1 March 2022 (the "Unaudited Full Year Results").
Pursuant to Rule 704(5) of the Listing Manual of the Singapore Exchange Securities Trading Limited, the Board wishes to highlight that there were certain material differences between the audited financial statements and the Unaudited Full Year Results in respect of FY2021 following the finalisation of the audit. Details and clarifications of the differences are set out as follows.
1) Consolidated Statements of Profit or Loss for the Year Ended 31 December 2021
Group | |||||||||
Unaudited | Audited | Differences | Note | ||||||
S$'000 | S$'000 | S$'000 | |||||||
Revenue | 580,036 | 580,036 | - | ||||||
Cost of sales | (125,120) | (124,977) | 143 | ||||||
Gross profit | 454,916 | 455,059 | 143 | ||||||
Interest income | 4,559 | 4,559 | - | ||||||
Other operating income | 9,054 | 9,019 | (35) | ||||||
Distribution costs | (173,690) | (173,701) | (11) | ||||||
Administrative expenses | (90,349) | (90,190) | 159 | ||||||
(Other losses) other gains, net | 6,028 | 7,537 | 1,509 | 1 | |||||
Finance costs | (431) | (420) | 11 | ||||||
Share of results of a joint venture | 646 | 646 | - | ||||||
Share of results of an associate | (179) | (183) | (4) | ||||||
Profit before income tax | 210,554 | 212,326 | 1,772 | ||||||
Income tax expense | (60,457) | (58,373) | 2,084 | 2 | |||||
Net profit for the period | 150,097 | 153,953 | 3,856 | ||||||
Profit net of tax attributable to: Owners of the Company Non-controlling interests
Earnings per share:
Basic (cents)
Diluted (cents)
149,838 | 153,694 | 3,856 |
259 | 259 | - |
150,097 | 153,953 | 3,856 |
27.54 | 28.25 | 0.71 |
27.54 | 28.25 | 0.71 |
- Statements of Financial Position of the Group and Company as at 31 December 2021
Group
Unaudited Audited DifferencesNote
S$'000 S$'000 S$'000
Company
Unaudited Audited DifferencesNote
S$'000 S$'000 S$'000
Assets
Non-current assets
Property, plant and equipment | 63,693 | 63,714 | 21 | 2,347 | 2,347 | - | ||
Investment property | 1,091 | 1,091 | - | - | - | - | ||
Other Intangible assets | 7,872 | 7,871 | (1) | - | - | - | ||
Intangible assets | 1,150 | 1,149 | (1) | 51 | 51 | - | ||
Right-of-use assets | 14,962 | 14,988 | 26 | 2,493 | 2,493 | - | 5 | |
Investment in subsidiaries | - | - | - | 113,303 | 104,803 | (8,500) | ||
Investment in a joint venture | 38,372 | 38,335 | (37) | - | - | - | ||
Investment in an associate | 4,994 | 4,990 | (4) | - | - | - | ||
Deferred tax assets | 22,144 | 22,144 | - | - | - | - | ||
Other financial assets | 5,241 | 5,931 | 690 | 1 | 269 | 269 | - | |
159,519 | 160,213 | 694 | 118,463 | 109,963 | (8,500) | |||
Current assets | ||||||||
Inventories | 88,152 | 88,281 | 129 | 26,902 | 26,902 | - | 6,7 | |
Trade and other receivables | 6,140 | 6,308 | 168 | 18,329 | 19,724 | 1,395 | ||
Other assets | 20,647 | 20,657 | 10 | 10,073 | 10,073 | - | ||
Other financial assets | 14,470 | 14,469 | (1) | 14,470 | 14,469 | (1) | ||
Cash and bank balances | 474,827 | 474,828 | 1 | 298,149 | 298,149 | - | ||
604,236 | 604,543 | 307 | 367,923 | 369,317 | 1,394 | |||
Total assets | 763,755 | 764,756 | 1,001 | 486,386 | 479,280 | (7,106) | ||
Equity and liabilities | ||||||||
Current liabilities | ||||||||
Trade and other payables | 149,663 | 148,848 | (815) | 3 | 56,124 | 58,798 | 2,674 | 7 |
Contract liabilities | 626 | 1,686 | 1,060 | 3 | - | - | - | |
Lease liabilities | 5,085 | 3,746 | (1,339) | 4 | 1,367 | 1,367 | - | |
Other financial liabilities | - | - | - | - | - | - | ||
Other liabilities | 37,056 | 36,862 | (194) | 1,082 | 1,082 | - | 2 | |
Income tax payable | 28,495 | 26,408 | (2,087) | 2 | 11,773 | 9,959 | (1,814) | |
220,925 | 217,550 | (3,375) | 70,346 | 71,206 | 860 | |||
Net current assets | 383,311 | 386,993 | 3,682 | 297,577 | 298,111 | 534 | ||
Non-current liabilities | ||||||||
Deferred tax liabilities | 12,347 | 12,346 | (1) | 6,125 | 6,125 | - | ||
Lease liabilities | 8,948 | 10,316 | 1,368 | 4 | 1,021 | 1,021 | - | |
Other financial liabilities | 19,632 | 18,796 | (836) | 1 | - | - | - | |
40,927 | 41,458 | 531 | 7,146 | 7,146 | - | |||
Total liabilities | 261,852 | 259,008 | (2,844) | 77,492 | 78,352 | 860 | ||
Net assets | 501,903 | 505,748 | 3,845 | 408,894 | 400,928 | (7,966) | ||
Equity attributable to owners | ||||||||
of the Company | ||||||||
Share capital | 10,027 | 10,027 | - | 10,027 | 10,027 | - | ||
Retained earnings | 456,996 | 460,852 | 3,856 | 398,545 | 390,579 | (7,966) | ||
Other reserves | 37,531 | 37,522 | (9) | 322 | 322 | - | ||
504,554 | 508,401 | 3,847 | 408,894 | 400,928 | (7,966) | |||
Non-controlling interests | (2,651) | (2,653) | (2) | - | - | - | ||
Total equity | 501,903 | 505,748 | 3,845 | 408,894 | 400,928 | (7,966) | ||
Total equity and liabilities | 763,755 | 764,756 | 1,001 | 486,386 | 479,280 | (7,106) | ||
3) Consolidated Statement of Cash Flows for FY2021
Group | ||||||||
Unaudited | Audited | Difference | Note | |||||
S$'000 | S$'000 | S$'000 | ||||||
Operating activities | ||||||||
Profit before income tax | 210,554 | 212,326 | 1,772 | |||||
Depreciation of right-of-use assets | 3,248 | 4,543 | 1,295 | 8 | ||||
Fair value gain in call option - Pedal Pulses Ltd. | (235) | (934) | (699) | 1 | ||||
Fair value gain in put option - Pedal Pulses Ltd. | (14,436) | (15,283) | (847) | 1 | ||||
Financing activities | ||||||||
Decrease (increase) in cash restricted in use | 190 | (1,313) | (1,503) | 9 |
Note
- Increase in fair value gain of call options of $0.7 million (corresponding impact on non-current other financial asset) and increase in fair value gain in put options of $0.8 million (corresponding impact on non-current other financial liabilities) based on professional valuation report on options.
- A difference of $2.1 million was mainly due to over-provision of income tax expenses in prior year as a result of finalisation of income tax expenses in previous year of assessment (corresponding impact on income tax payable).
- Reclassification of contract liabilities of $1.0 million from trade and other payable was mainly due to deposits received from distributors.
- Reclassification of current and non-current portion of lease liabilities of $1.3 million.
- A decrease in investment in subsidiary corporation by $8.5 million was due to allowance for impairment loss as its recoverable amount is lower than its carrying value.
- Expected credit loss on non-trade receivable from a subsidiary of $1.4 million as its recoverable amount is lower than its carrying value.
- Reclassification of credit balances of $2.7 million from other receivables due from related companies to other payables due to related companies of the Company.
- Reclassification of administrative expenses relating to rental expenses to depreciation expenses for right-of-use assets.
- Increase in restricted cash in use relating to fixed deposit of $1.5 million pledged for unutilised bank facilities of the Company.
For and on behalf of
Best World International Limited
Huang Ban Chin
Director and Chief Operating Officer
8 July 2022
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Best World International Limited published this content on 08 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 July 2022 15:53:01 UTC.