Naim Berhad : Q3 FY2021

NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the third quarter and nine months ended 30 September 2021

(The figures have not been audited)

CURRENT QUARTER	CUMULATIVE QUARTER
3 months ended	9 months ended
30 September	30 September

Revenue

Cost of sales

Gross profit

Other operating income
Selling and promotional expenses
Administrative expenses
Other operating expenses
Results from operating activities
Finance income
Finance costs
Net finance costs
Other non-operating expense
Share of results (net of tax) of equity-accounted:
- associates
- joint ventures
Profit/(Loss) before tax	Note 19
Tax income/(expense)	Note 18
Profit/(Loss) for the period
Other comprehensive income/(expenses), net of tax
Items that are or may be reclassified subsequently to
profit or loss
Foreign currency translation differences for foreign operations
Realisation of reserves to profit or loss arising from deemed
disposal of equity interest in an associate
Share of other comprehensive income of associates
Other comprehensive income/(expenses) for the period
Total comprehensive income/(expenses) for the period
Profit/(Loss) attributable to:
Owners of the Company
Non-controlling interests
Profit/(Loss) for the period
Total comprehensive income/(expenses) attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income/(expenses) for the period
Basic earnings/(loss) per ordinary share (EPS) attributable
to owners of the Company (sen)	Note 9

2021	2020	2021	2020
RM'000	RM'000	RM'000	RM'000
115,205	87,943	258,593	186,395
(106,463)	(82,213)	(239,352)	(176,375)
8,742	5,730	19,241	10,020
1,268	10,639	3,680	19,288
(945)	(1,040)	(2,896)	(3,547)
(5,337)	(8,329)	(13,592)	(20,850)
(3,758)	(1,625)	(8,092)	(5,340)
(30)	5,375	(1,659)	(429)
2,778	1,956	7,151	6,432
(2,842)	(5,180)	(8,961)	(16,594)
(64)	(3,224)	(1,810)	(10,162)
(6)	(452)	(1,967)	(7,600)
6,018	5,990	(1,986)	5,104
179	262	650	567
6,097	7,951	(6,772)	(12,520)
1,782	(2,578)	(460)	(4,235)
7,879	5,373	(7,232)	(16,755)

(2)	8	100	(22)
-	-	(1,344)	-
1,374	(6,500)	8,490	3,746
1,372	(6,492)	7,246	3,724
9,251	(1,119)	14	(13,031)
7,324	5,356	(7,415)	(16,566)
555	17	183	(189)
7,879	5,373	(7,232)	(16,755)
8,696	(1,136)	(169)	(12,842)
555	17	183	(189)
9,251	(1,119)	14	(13,031)
1.46	1.07	(1.48)	(3.31)

The notes set out on pages 5 to 22 form an integral part of, and should be read in conjunction with, these condensed consolidated interim financial statements.

The consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the audited financial statements for the year ended 31 December 2020.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 September 2021

(The figures have not been audited)	Unaudited	Audited
	30 September	31 December
	2021	2020
	RM'000	RM'000
ASSETS
Property, plant and equipment	125,967	132,892
Interests in associates	478,588	475,395
Interests in joint ventures	3,266	2,412
Inventory - Land held for property development	172,242	172,242
Investment properties	76,558	78,152
Intangible assets	964	1,475
Deferred tax assets	4,430	4,433
Other investments	3,071	3,071
Trade and other receivables	50,152	60,463
Total non-current assets	915,238	930,535
Inventories	567,248	589,771
Contract costs	5,451	4,938
Contract assets	60,558	39,580
Trade and other receivables	116,711	133,253
Deposits and prepayments	7,889	6,855
Current tax recoverable	1,326	1,279
Cash and cash equivalents	282,566	353,313
	1,041,749	1,128,989
Assets classified as held for sale	84	82
Total current assets	1,041,833	1,129,071
Total assets	1,957,071	2,059,606
EQUITY

Share capital

Treasury shares

Reserves

Total equity attributable to owners of the Company

Non-controlling interests

Total equity
LIABILITIES
Loans and borrowings	Note 8
Deferred tax liabilities
Total non-current liabilities
Loans and borrowings	Note 8
Trade and other payables
Contract liabilities
Provisions
Current tax payable
Total current liabilities
Total liabilities
Total equity and liabilities
Net assets (NA) per ordinary share attributable to owners of the
Company (RM), based on total paid up share capital

454,802	454,802
(34,748)	(34,748)
888,952	928,680
1,309,006	1,348,734
16,089	15,906
1,325,095	1,364,640
74,565	95,752
22,486	23,037
97,051	118,789
206,180	218,117
304,592	324,295
18,682	15,940
3,534	3,539
1,937	14,286
534,925	576,177
631,976	694,966
1,957,071	2,059,606

2.552.63

The notes set out on pages 5 to 22 form an integral part of, and should be read in conjunction with, these condensed consolidated interim financial statements. The consolidated statement of financial position should be read in conjunction with the audited financial statements for the year ended 31 December 2020.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the third quarter and nine months ended 30 September 2021 (The figures have not been audited)

Total equity attributable to owners of the Company

		Non-Distributable			Distributable
		Foreign
		currency
	Share	translation	Treasury	Other		Retained		Non-controlling	Total
	capital	reserve	shares	reserve		earnings	Sub-total	interests	equity
	RM '000	RM '000	RM '000	RM '000		RM '000	RM '000	RM '000	RM '000
For the 9 months ended 30 September 2020 (Unaudited)
At 1 January 2020	454,802	9,936	(34,748)	174	918,379	1,348,543	19,822	1,368,365
Foreign currency translation differences for foreign operations	-	(22)	-	-	-	(22)	-	(22)
Share of other comprehensive income of associates	-	3,746	-	-	-	3,746	-	3,746
Total other comprehensive income for the period	-	3,724	-	-	-	3,724	-	3,724
Loss for the period	-	-	-	-	(16,566)	(16,566)	(189)	(16,755)
Total comprehensive income/(expenses) for the period	-	3,724	-	-	(16,566)	(12,842)	(189)	(13,031)
At 30 September 2020	454,802	13,660	(34,748)	174	901,813	1,335,701	19,633	1,355,334
For the 9 months ended 30 September 2021 (Unaudited)
At 1 January 2021	454,802	6,172	(34,748)	166	922,342	1,348,734	15,906	1,364,640
Foreign currency translation differences for foreign operations	-	100	-	-	-	100	-	100
Realisation of reserves to profit or loss arising from deemed disposal
of equity interest in an associate	-	(1,344)	-	-	-	(1,344)	-	(1,344)
Share of other comprehensive income of associates	-	8,490	-	-	-	8,490	-	8,490
Total other comprehensive income for the period	-	7,246	-	-	-	7,246	-	7,246
(Loss)/Profit for the period	-	-	-	-	(7,415)	(7,415)	183	(7,232)
Total comprehensive income/(expenses) for the period	-	7,246	-	-	(7,415)	(169)	183	14
Transaction with owners of the Company
- Dividends paid	-	-	-	-	(39,559)	(39,559)	-	(39,559)
At 30 September 2021	454,802	13,418	(34,748)	166	875,368	1,309,006	16,089	1,325,095

The notes set out on pages 5 to 22 form an integral part of, and should be read in conjunction with, these condensed consolidated interim financial statements.

The consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the year ended 31 December 2020.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021

CONSOLIDATED STATEMENT OF CASH FLOWS

For the third quarter and nine months ended 30 September 2021

(The figures have not been audited)	Unaudited	Unaudited
	30 September	30 September
	2021	2020
	RM'000	RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax	(6,772)	(12,520)
Adjustments for:
Amortisation of:
- intangible asset	510	510
- investment properties	1,594	1,593
Depreciation of property, plant and equipment	7,117	6,815
Dividend income from unquoted shares	(42)	(84)
Finance income	(7,151)	(6,432)
Finance costs	8,961	16,594
(Gain)/Loss on disposal of:
- property, plant and equipment	(287)	(4,098)
- assets held for sale	-	(10,623)
- deemed disposal of associates	1,967	7,600
Property, plant and equipment written off	-	32
Net change in impairment loss on financial assets and contract assets	542	(567)
Share of results of equity-accounted:
- associates	1,986	(5,104)
- joint ventures	(650)	(567)
Unrealised foreign exchange gain	(183)	(187)
Operating profit/(loss) before changes in working capital	7,592	(7,038)
Changes in working capital:
Inventories	22,744	(4,551)
Contract assets/liabilities	(18,235)	8,616
Contract cost	(467)	(618)
Trade and other receivables, deposits and prepayments	25,040	18,529
Trade and other payables	(19,109)	4,104
Provisions	(5)	(13)
Cash generated from operations	17,560	19,029
Net income taxes paid	(13,609)	(3,370)
Net cash from operating activities	3,951	15,659
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment	(459)	(1,812)
Proceeds from disposal of:
- property, plant and equipment	288	1,014
- assets held for sale	-	401
Changes in pledged deposits	(24)	(143)
Distribution of profit received from a joint venture	-	1,020
Dividends received	42	84
Interest received	7,387	7,055
Net cash from investing activities	7,234	7,619
CASH FLOWS FROM FINANCING ACTIVITIES
Dividend paid to the:
- owners of the Company	(39,559)	-
Net repayments of loans and borrowings	(33,099)	(41,869)
Net repayment of finance lease liabilities	(25)	(10)
Interest paid	(9,457)	(17,607)
Net cash used in financing activities	(82,140)	(59,486)
Net decrease in cash and cash equivalents	(70,955)	(36,208)
Effects of exchange rate changes on cash and cash equivalents	183	65
Cash and cash equivalents at beginning of year	337,950	211,396
CASH AND CASH EQUIVALENTS AT END OF PERIOD	267,178	175,253
Representing by:
Deposits with licensed banks with maturities less than three months, net of deposits pledged	208,626	137,683
Cash in hand and at banks	58,552	37,570
Total cash and cash equivalents as shown in statement of cash flows	267,178	175,253

The notes set out on pages 5 to 22 form an integral part of, and should be read in conjunction with, these condensed consolidated interim financial statements. The consolidated statement of cash flows should be read in conjunction with the audited financial statements for the year ended 31 December 2020.

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NAIM HOLDINGS BERHAD

Registration No.: 200201017804 (585467-M)

QUARTERLY REPORT - FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Naim Holdings Berhad is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main Market of Bursa Malaysia Securities Berhad ("Bursa Securities").

The condensed consolidated interim financial statements of the Group as at and for the period ended 30 September 2021 comprise the Company and its subsidiaries (together referred to as the "Group" and individually referred to as "Group entities") and the Group's interests in associates and joint ventures.

1. Basis of preparation
   These condensed consolidated interim financial statements have been prepared in accordance with the applicable disclosure provisions of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, MFRS 134, Interim Financial Reporting in Malaysia and IAS 134, Interim Financial Reporting.
   The condensed consolidated interim financial statements do not include all of the information required for a complete annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2020. The explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual consolidated financial statements as at and for the year ended 31 December 2020.
   The annual financial statements of the Group as at and for the year ended 31 December 2020 are available upon request from the Company's registered office at 9th floor, Wisma Naim, 2 ½ Mile, Rock Road, 93200 Kuching, Sarawak, Malaysia.
2. Significant accounting policies
   The accounting policies adopted by the Group in preparing the condensed consolidated interim financial statements are consistent with those adopted in the annual financial statements for the year ended 31 December 2020, except as explained below.
   During the current period under review, the Group has adopted the following accounting standards and amendments which are effective for annual periods beginning on and after 1 June 2020 and 1 January 2021:
3. • Amendments to MFRS 16, Leases - Covid-19-Related Rent Concessions
   • Amendments to MFRS 9, Financial Instruments, MFRS 139, Financial Instruments: Recognition and Measurement, MFRS 7, Financial Instruments: Disclosures, MFRS 4, Insurance Contracts and MFRS 16, Leases - Interest Rate Benchmark Reform - Phase 2

The adoption of the above MFRS standards and associated amendments did not have any material financial impact on the financial statements of the Group.

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