Keong Hong : Unaudited Financial Statement for the Full Year Ended 30 September 2020

KEONG HONG HOLDINGS LIMITED

Unaudited Financial Statement for the Full Year Ended 30 September 2020

PART I - INFORMATION REQUIRED FOR HALF-YEAR AND FULL YEAR ANNOUNCEMENT

1(a)(i) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year.

		Group			Group
	2nd Half Year ended		12 Months ended
	30/9/2020	30/9/2019		30/9/2020	30/9/2019
	Unaudited	Audited	+(-)	Unaudited	Audited	+(-)
	S$'000	S$'000	%	S$'000	S$'000	%
Revenue	21,338	85,821	(75.1)	82,942	162,560	(49.0)
Cost of sales	(7,110)	(58,175)	(87.8)	(52,161)	(126,324)	(58.7)
Gross profit	14,228	27,646	(48.5)	30,781	36,236	(15.1)
Other income	4,011	11,263	(64.4)	11,054	14,268	(22.5)
Administration expenses	(26,717)	(22,299)	19.8	(33,800)	(29,141)	16.0
Finance costs	(3,206)	(3,173)	1.0	(6,363)	(6,287)	1.2
Share of results of joint ventures, net of tax	2,120	8,107	(73.8)	6,880	15,984	(57.0)
Share of results of associates, net of tax	(15,851)	(4,617)	243.3	(21,954)	(6,798)	222.9
(Loss)/profit before income tax	(25,415)	16,927	n.m.	(13,402)	24,262	n.m.
Income tax expense	(3,001)	(6,278)	(52.2)	(5,428)	(7,386)	(26.5)
(Loss)/profit after tax for the financial year	(28,416)	10,649	n.m.	(18,830)	16,876	n.m.
Other comprehensive income:
Items that may be reclassified
subsequently to profit or loss
Exchange differences on translating
of foreign operations	726	24	2925.0	343	109	214.7
Share of other comprehensive income
of joint venture and associates	6	(64)	n.m .	6	(222)	n.m .
Items that may not be reclassified
subsequently to profit or loss
Fair value loss on financial assets
through other comprehensive income	(14,418)	(9,170)	57.2	(14,643)	(9,395)	55.9
Other comprehensive income for
the financial year, net of tax	(13,686)	(9,210)	48.6	(14,294)	(9,508)	50.3
Total comprehensive income
for the financial year	(42,102)	1,439	n.m.	(33,124)	7,368	n.m.
Profit attributable to:
Owners of the parent	(28,070)	10,156	n.m .	(18,043)	16,306	n.m .
Non-controlling interests	(346)	493	n.m .	(787)	570	n.m .
	(28,416)	10,649	n.m.	(18,830)	16,876	n.m.
Total comprehensive income attributable
to:
Owners of the parent	(41,756)	946	n.m .	(32,337)	6,798	n.m .
Non-controlling interests	(346)	493	n.m .	(787)	570	n.m .
	(42,102)	1,439	n.m.	(33,124)	7,368	n.m.

n.m. denotes not meaningful

Page 1

1(a) (ii) Profit for the financial year has been arrived at after charging/(crediting) the following:

		Group			Group
	2nd Half Year ended		12 Months ended
	30/9/2020	30/9/2019		30/9/2020	30/9/2019
	Unaudited	Audited	+(-)	Unaudited	Audited	+(-)
	S$'000	S$'000	%	S$'000	S$'000	%
Amortisation of intangible assets	7	17	(58.8)	17	37	(54.1)
Allowance of inventory obsolescence	-	(4)	(100.0)	-	(4)	(100.0)
Amortisation of fair value for share options	137	128	7.0	283	256	10.5
Loss allowance/(reversal of loss allowance)
on financial assets
- Trade and other receivables	374	3,790	(90.1)	374	3,790	(90.1)
- Long-term interest in associates	134	1,382	(90.3)	92	1,382	(93.3)
- Corporate guarantee liability	(817)	643	n.m	(817)	643	n.m
Waiver of interest receivables from	-	918	(100.0)	-	918	(100.0)
third parties
Depreciation of investment properties	326	314	3.8	640	619	3.4
Depreciation of property, plant and equipment	1,777	2,200	(19.2)	3,629	4,121	(11.9)
Depreciation of right-of-use assets	754	-	n.m	1,199	215	457.7
Gain on disposal of plant and equipment	(4)	(121)	(96.7)	(118)	(124)	(4.8)
Fair value loss/(gain)n on finance assets
at FVTPL	7,660	(4,667)	n.m	7,660	(4,667)	n.m
Impairment loss on investment in associate	11,603	7,150	62.3	11,603	7,150	62.3
Impairment loss on investment in joint venture	138	-	n.m	138	-	n.m
Impairment loss on club membership	31	-	n.m	31	-	n.m
Dividend income from finance assets at FVOCI	(8)	(510)	(98.4)	(8)	(510)	(98.4)
Provision for onerous contract	2,716	-	n.m	2,716	-	n.m
Foreign exchange loss/(gain)	3,279	(2,344)	n.m	603	(2,127)	n.m
Interest income	(2,498)	(2,933)	(14.8)	(5,690)	(5,504)	3.4
Interest on borrowings	3,061	3,158	(3.1)	6,113	6,260	(2.3)
Interest on lease liabilities	145	15	866.7	250	27	825.9

n.m. denotes not meaningful

Page 2

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year

	Group		Company
	As at		As at
	30/9/2020	30/9/2019	30/9/2020	30/9/2019
	Unaudited		Audited		Unaudited		Audited
	S$'000		S$'000		S$'000		S$'000
Non-current assets
Property, plant and equipment	25,488	27,355	-	173
Investment properties	23,366	23,709	-	-
Right-of-use assets	7,415	-	124	-
Investments in subsidiaries	-	-	32,022	31,886
Investment in associates	30,204	57,463	7,123	5,610
Investments in joint ventures	31,656	23,982	-	-
Intangible assets	211	237	-	-
Financial assets at fair value through	42,172	56,814	2,895	4,425
other comprehensive income
Financial assets at fair value through	23,392	30,092	-	-
profit and loss
Other receivables	34,562	97,372	-	-
Deferred tax assets	592	493	-	-
Total non-current assets	219,058	317,517	42,164	42,094
Current assets
Inventories	1,242	1,421	-	-
Trade and other receivables	115,000	52,826	68,437	71,747
Contract assets	17,001	22,424	-	-
Finance lease receivables	-	636	-	-
Prepayments	741	830	12	3
Fixed deposits pledged	532	529	-	-
Cash and cash equivalents	40,000	55,792	14,651	5,055
Total currents assets	174,516	134,458	83,100	76,805
Total assets	393,574	451,975	125,264	118,899
Equity
Share capital	25,048	25,048	25,048	25,048
Treasury shares	(3,303)	(3,303)	(3,303)	(3,303)
Other reserves	(15,267)	(1,256)	(1,900)	(653)
Retained earnings	180,987		202,555		2,577		8,801
Equity attributable to owners of the parent	187,465	223,044	22,422	29,893
Non-controlling interests	1,615	2,300	-	-
Total equity	189,080	225,344	22,422	29,893
Non-current liabilities
Bank borrowings	7,399	7,699	-	-
Lease liabilities	6,220	397	79	99
Medium term notes	47,933	84,537	47,933	84,537
Provisions	512	506	-	-
Deferred tax liabilities	1	69	-	-
Total non-current liabilities	62,065	93,208	48,012	84,636
Current liabilities
Trade and other payables	46,180	90,647	3,791	4,351
Contract liabilities	378	287	-	-
Bank borrowings	29,847	32,447	-	-
Medium term notes	51,019	-	51,019	-
Deferred income	666	-	-	-
Lease liabilities	984	118	20	19
Provisions	4,539	2,022	-	-
Current income tax payable	8,816	7,902	-	-
Total current liabilities	142,429	133,423	54,830	4,370
Total liabilities	204,494	226,631	102,842	89,006
Total equity and liabilities	393,574	451,975		125,264	118,899

Page 3

1(b)(ii) Aggregate amount of group's borrowings and debt securities

Amount repayable in one year or less, or on demand

As at 30/09/2020	As at 30/09/2019
	Unaudited		Audited
Secured		Unsecured	Secured		Unsecured
S$'000		S$'000	S$'000		S$'000
29,847		51,019	32,447		-

Amount repayable after one year

As at 30/09/2020		As at 30/09/2019
	Unaudited		Audited
Secured		Unsecured	Secured		Unsecured
S$'000		S$'000	S$'000		S$'000
7,399		47,933	7,699		84,537

Details of collateral:

The Group's secured borrowings are secured by corporate guarantee, properties and project proceeds in respect of the Company's construction projects.

The unsecured borrowing relates to the following Fixed Rate Notes issued under the Keong Hong Holdings Limited Multicurrency Medium Term Note Programme:

Term Notes	Net Proceeds /	Remark
Balance
The S$85 million 5.75% 4-Year
Fixed Rate Notes (Series 2 Term	51,019	The Series 2 Term Notes was issued
Notes), due on 15 September	on 15 September 2017. (See Note 1).
2021.
The S$48 million 6.25% 3-Year		The Series 3 Term Notes was issued
Fixed Rate Notes (Series 3 Term	47,933	on 19 August 2020 September. (See
Notes), due on 19 August 2023.		Note 1).

Note 1:

On 22 July 2020, the Group launched an exchange offer exercise to invite holders of Series 2 Term Notes to exchange any or all outstanding Series 2 Term Notes for a like principal amount of 6.25% fixed rate notes due 2023 (Series 3 Term Notes) issued under Keong Hong Holdings Limited S$200 million Multicurrency Medium Term Note Programme. In aggregate, S$33.75 million of Series 2 Term Notes was accepted under the exchange offer and S$33.75 million of Series 3 Term Notes was issued for the exchange. In addition, the Group also issued additional new Series 3 Term Notes with principal amount of S$14.25 million. The aggregate amount of Series 3 tem Notes issued for the exchange offer and addition new notes was $48 million with net proceeds of S$$13.90 million.

Page 4