Hap Seng Plantations : Quarter 2 2022 Financial Results

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

FOR THE SECOND QUARTER AND YEAR-TO-DATE ENDED 30 JUNE 2022

		Quarter ended		Year-to-date ended
		30.6.2022	30.6.2021	Increase/	30.6.2022	30.6.2021	Increase/
		RM'000	RM'000	(Decrease)	RM'000	RM'000	(Decrease)
Revenue	246,862	181,071	36%	489,015	302,393	62%
Operating expenses	(157,112)	(121,347)		(305,932)	(207,684)
Other operating income	5,091	3,657		* 37,354	8,519
Operating profit	94,841	63,381	50%	220,437	103,228	114%
Finance costs	(720)	(582)		(1,396)	(1,192)
Profit before tax	94,121	62,799	50%	219,041	102,036	115%
Tax expense	(27,219)	(15,377)		(50,472)	(25,245)
Profit and total comprehensive
income for the period	66,902	47,422	41%	168,569	76,791	120%
Earnings per share (sen)
Basic	8.37	5.93	41%	21.08	9.60	120%
Diluted		N/A	N/A		N/A	N/A

• Other operating income for the year-to-date ended 30 June 2022 included the gain on disposal of assets held for sale of RM18.8 million as disclosed in Note 5, Part B of this report.

The Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with

the Audited Financial Statements for the financial year ended 31 December 2021 and the accompanying explanatory notes attached to the Interim Financial Statements

QtrlyReport 30 June 2022 - HSP.docx

Page 1 of 16

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AS AT 30 JUNE 2022	As at	As at
	30.6.2022	31.12.2021
	RM'000	RM'000
		(Audited)
Non-current assets
Property, plant and equipment	1,715,849	1,710,570
Current assets
Inventories	78,938	91,078
Biological assets	65,865	57,721
Receivables	10,186	14,266
Current tax assets	1,666	11,889
Money market deposits	450,367	296,637
Cash and cash equivalents	110,482	121,040
	717,504	592,631
Assets held for sale	-	66,101
	717,504	658,732
TOTAL ASSETS	2,433,353	2,369,302
Equity attributable to owners of the Company
Share capital	1,475,578	1,475,578
Merger reserves	(1,347,761)	(1,347,761)
Retained earnings	1,800,513	1,755,895
	1,928,330	1,883,712
Less: Treasury shares	(841)	(841)
TOTAL EQUITY	1,927,489	1,882,871
Non-current liabilities
Deferred tax liabilities	363,993	378,865
Lease liabilities	52,538	43,209
Current liabilities	416,531	422,074
Payables	58,114	51,777
Current tax liabilities	22,568	6,303
Lease liabilities	8,651	6,277
	89,333	64,357
TOTAL LIABILITIES	505,864	486,431
TOTAL EQUITY AND LIABILITIES	2,433,353	2,369,302
Net assets per share (RM)	2.41	2.35
Number of shares net of treasury shares ('000)	799,685	799,685

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Audited Financial Statements

for the financial year ended 31 December 2021 and the accompanying explanatory notes attached to the Interim Financial Statements

QtrlyReport 30 June 2022 - HSP.docx

Page 2 of 16

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

FOR THE YEAR-TO-DATE ENDED 30 JUNE 2022

			Attributable to owners of the Company
		Non-distributable	Distributable
		Share	Merger	Retained	Treasury	Total
		capital	reserves	earnings	shares	equity
		RM'000	RM'000	RM'000	RM'000	RM'000
At 1 January 2022	1,475,578	(1,347,761)	1,755,895	(841)	1,882,871
Profit and total comprehensive income for the
period	-	-	168,569	-	168,569
Dividends	-	-	(123,951)	-	(123,951)
At 30 June 2022
1,475,578	(1,347,761)	1,800,513	(841)	1,927,489
At 1 January 2021	1,475,578	(1,347,761)	1,587,850	(841)	1,714,826
Profit and total comprehensive income for the
period	-	-	76,791	-	76,791
Dividends	-	-	(43,983)	-	(43,983)
At 30 June 2021
1,475,578	(1,347,761)	1,620,658	(841)	1,747,634

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements

for the financial year ended 31 December 2021 and the accompanying explanatory notes attached to the Interim Financial Statements

QtrlyReport 30 June 2022 - HSP.docx

Page 3 of 16

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE YEAR-TO-DATE ENDED 30 JUNE 2022

	Year-to-date ended
	30.6.2022	30.6.2021
	RM'000	RM'000
Cash flows from operating activities
Profit before tax	219,041	102,036
Adjustments for:
Non-cash items	33,740	41,697
Non-operating items	(18,900)	(39)
Dividend income	(2,684)	(1,795)
Net interest expense	392	677
Operating profit before working capital changes	231,589	142,576
Net changes in working capital	22,557	(7,383)
Net tax paid	(38,856)	(12,567)
Net interest paid	(392)	(677)
Net cash generated from operating activities	214,898	121,949
Cash flows from investing activities
Dividend received from money market deposits	2,684	1,795
Increase in money market deposits	(153,730)	(46,297)
Proceeds from disposal of property, plant and equipment	93	39
Proceeds from disposal of assets held for sale	84,925	-
Purchase of property, plant and equipment	(31,063)	(26,228)
Net cash used in investing activities	(97,091)	(70,691)
Cash flows from financing activities
Dividends paid	(123,951)	(43,983)
Payment of lease liabilities	(4,414)	(5,189)
Net cash used in financing activities	(128,365)	(49,172)
Net change in cash and cash equivalents	(10,558)	2,086
Cash and cash equivalents at beginning of period	121,040	63,655
Cash and cash equivalents at end of period
110,482	65,741
Cash and cash equivalents comprise the following amounts:
Deposits with licensed banks	35,400	26,000
Cash in hand and at bank	75,082	39,741
	110,482	65,741

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Audited Financial Statements

for the financial year ended 31 December 2021 and the accompanying explanatory notes attached to the Interim Financial Statements

QtrlyReport 30 June 2022 - HSP.docx

Page 4 of 16

Basis of Preparation

These interim financial statements have been prepared in accordance with the requirements of Malaysian Financial Reporting Standard ["MFRS"] 134, Interim Financial Reporting and paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ["Bursa Securities"], and should be read in conjunction with the Group's audited financial statements for the financial year ended 31 December 2021.

Part A: Explanatory Notes Pursuant to MFRS 134

1. Significant accounting policies
   The accounting policies and presentation adopted by the Group in these interim financial statements are consistent with those adopted in the audited financial statements for the year ended 31 December 2021.
2. Comments on the seasonality or cyclicality of operations
   Seasonal or cyclical factors affecting the operational performance of the Group include general climatic conditions, age profile of oil palms, the cyclical nature of annual production and the movements in commodity prices.
3. Nature and amount of items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size or incidence
   Save for the information disclosed in this interim financial report, there were no unusual items affecting assets, liabilities, equity, net income or cash flow during the interim period.
4. Nature and amount of changes in estimates of amounts reported in prior interim periods of the current financial year or changes in estimates of amounts reported in prior financial years
   There were no changes in estimates of amounts reported in prior interim period of the current financial year or changes in estimates of amounts reported in prior financial years.
5. Issues, cancellations, repurchases, resale and repayments of debt and equity securities Share buyback by the Company
   During the current quarter, there was no buyback of shares, resale nor cancellation of treasury shares.
   As at 30 June 2022, the Company held a total of 314,800 ordinary shares as treasury shares and the issued share capital of the Company remained unchanged at 800,000,000 ordinary shares.

QtrlyReport 30 June 2022 - HSP.docx

Page 5 of 16