Donaco International : Appendix 4C Cash Flow Report

For personal use only

ASX Listing Rules Appendix 4C (17/07/20)

Rule 4.7B
(a)	entities
(b)	businesses
(c)	property, plant and equipment	(1)
(d)	investments
(e)	intellectual property
(f)	other non-current assets
Page 1

Name of entity

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Donaco International Limited

ABN

28 007 424 777

Consolidated statement of cash flows	Current quarter $A'000	Year to date (9 months) $A'000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	84 (479) (3) (822) (273) - (317)	1,820 (1,600) (10) (2,385) (1,145) 1 (1,114)
(1,810)	(4,433)

2. 2.1

Cash flows from investing activities Payments to acquire or for:

+ See chapter 19 of the ASX Listing Rules for defined terms.

Quarter ended ("current quarter")

31 March 2022

-

For personal use only

Consolidated statement of cash flows	Current quarter $A'000	Year to date (9 months) $A'000
2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities
-	(1)

3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	823 (21)	10,694 (9,688)
802	1,006

4.

Net increase / (decrease) in cash and cash equivalents for the period

4.1

Cash and cash equivalents at beginning of period

4.2

Net cash from / (used in) operating activities (item 1.9 above)

4.3

Net cash from / (used in) investing activities (item 2.6 above)

4,379 (1,810)

6,317 (4,433)

-

(1)

ASX Listing Rules Appendix 4C (17/07/20)

+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Consolidated statement of cash flows	Current quarter $A'000	Year to date (9 months) $A'000
4.4 4.5 4.6	Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	802 150	1,006 632
3,521	3,521

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A'000	Previous quarter $A'000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	3,521	4,379
3,521	4,379

6. Payments to related parties of the entity and their associates	Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 201 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

ASX Listing Rules Appendix 4C (17/07/20)

+ See chapter 19 of the ASX Listing Rules for defined terms.

• 7. Financing facilities

  Note: the term "facility' includes all forms of financing

  arrangements available to the entity.

  Add notes as necessary for an understanding of the

  sources of finance available to the entity.

  Total facility amount at quarter end $A'000

  Amount drawn at

  quarter end

  $A'000

  For personal use only

• 7.1 Loan facilities

  12,133

  12,133

• 7.2 Credit standby arrangements

• 7.3 Other (please specify)

• 7.4 Total financing facilities

  12,133

  12,133

• 7.5 Unused financing facilities available at quarter end

  -

• 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

  Lender 1 (secured loan)

  Name: Joint Stock Commercial Ocean Bank

  Interest rate: 4.30% (USD currency), 8.90% (VND currency) Maturity date: 2 October 2022

  Lender 2 (secured loan)

  Name: Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) Interest rate: 7.00%

  Maturity date: 18 September 2022

  Lender 3 (unsecured loan) Name: Lee Bug Huy Interest rate: 6.00% Maturity term: 22 July 2024

8. 8.1 8.2 8.3 8.4

8.5

Estimated cash available for future operating activities	$A'000
Net cash from / (used in) operating activities (item 1.9)	(1,810)
Cash and cash equivalents at quarter end (item 4.6)	3,521
Unused finance facilities available at quarter end (item 7.5)
Total available funding (item 8.2 + item 8.3)	3,521
Estimated quarters of funding available (item 8.4 divided by
item 8.1)

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as "N/A". Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

1.95

ASX Listing Rules Appendix 4C (17/07/20)

+ See chapter 19 of the ASX Listing Rules for defined terms.

8.6

If item 8.5 is less than 2 quarters, please provide answers to the following questions:

8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

For personal use only

Answer:

No, Donaco expects its net operating cash flows of upcoming quarters will be higher than the March 2022 quarter. During the March 2022 quarter, its casinos were either closed or operating on a limited basis due to restrictions imposed by the local goverments in response to COVID-19. Management expects that casino operations will be boosted as the Thai and Cambodian governments target the easing of border and travel restrictions in the region.

8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer:

Donaco is in the process of finalising a new shareholder loan facility that will provide it with funds of up to US$5million (AU$6.7m).

8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer:

Management believes that the additional funds from the new shareholder loan facility will enable the Company to maintain its operations.

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

Compliance statement

1	This statement has been prepared in accordance with accounting standards and policies
which comply with Listing Rule 19.11A.
2	This statement gives a true and fair view of the matters disclosed.
Date:	...................................................................................
By the Board

29 April 2022

Authorised by: ...................................................................................

(Name of body or officer authorising release - see note 4)

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

• 2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

• 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

• 4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

ASX Listing Rules Appendix 4C (17/07/20)

+ See chapter 19 of the ASX Listing Rules for defined terms.