Financial Statements and Related Announcement::Discrepancies between unaudited and audited accounts

AXINGTON INC.

(Formerly known as Axcelasia Inc.) (Company Registration No.: LL12218)

(A Company incorporated under the Labuan Companies Act 1990, Malaysia)

MATERIAL VARIANCES BETWEEN THE AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 AND THE UNAUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

The Board of Directors (the "Board") of Axington Inc. (the "Company", and together with its subsidiaries, the "Group") refers to the unaudited full year financial statements announcement for the financial year ended 31 December 2020 ("FY2020") released by the Company on 31 March 2021 ("Announcement").

All capitalised terms in this announcement shall have the same meanings as ascribed to them in the Announcement unless otherwise defined.

Pursuant to Rule 704 (5) of the Listing Manual Section B: Rules of Catalist of the Singapore Exchange Securities Trading Limited (the "SGX-ST"), the Board wishes to highlight that the Company has adopted certain material adjustments and reclassifications to the unaudited consolidated statement of comprehensive income, consolidated statement of financial position and consolidated statement of cash flows for FY2020, following the finalisation of the audit. The details and explanations of the material variances are set out in Appendix A as annexed hereto.

Shareholders of the Company are advised to read the audited financial statements of the Group in conjunction with the Independent Auditors' Report as set out in the Company's annual report for FY2020, which is concurrently released by the Company on 7 July 2021.

By Order of the Board

Ang Chiang Meng

Executive Director

7 July 2021

This announcement has been prepared by the Company and reviewed by the Company's sponsor, Novus Corporate Finance Pte. Ltd. ("Sponsor"), in compliance with Rule 226(2)(b) of the Singapore Exchange Securities Trading Limited ("SGX-ST") Listing Manual Section B: Rules of Catalist.

This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made, or reports contained in this announcement.

The contact person for the Sponsor is Mr. Pong Chen Yih, Chief Operating Officer, at 7 Temasek Boulevard, #18-03B Suntec Tower 1, Singapore 038987, telephone [phone].

APPENDIX A
1) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
	Group
	Twelve Months Ended
	31-Dec-20	31-Dec-20	Variance Note
	(Unaudited)	(Audited)
	RM'000	RM'000	%
Revenue	25	24	(4)
Other income	665	665	-
	690	689

Expenses

• Depreciation of plant and equipment
• Employee benefits expense
• Short-termrental expense
• Finance cost
• Other expenses
• Depreciation on right-of-use assets Total expenses

Loss before taxation from continuing operations Taxation

Loss after taxation from continuing operations

Discontinued Operations

Net profit for the period from discontinued operations, net of tax

Profit for the year

Other comprehensive income after tax:

Items that may be reclassified subsequently to profit or loss

Currency translation differences

Other comprehensive income/(loss) for the year, net of tax

Total comprehensive income for the year

(202)	(167)	(17)	(a)
(569)	(892)	57	(b)
(54)	(54)	-
(1,361)	(4)	(>100)	(c)
(3,433)	(7,773)	>100	(d)
-	(71)	>100	(e)
(5,619)	(8,961)
(4,929)	(8,272)	68
-	-	-
(4,929)	(8,272)

57,073 57,073 -

52,144 48,801

-	-	-
-	7	>100

• 7

52,144 48,808

Profit attributable to:
Owners of the Company	52,166	48,880	(6)
Non-controlling interests	(22)	(72)	>100	(p)
		52,144	48,808
Total comprehensive income attributable to:
Owners of the Company	52,166	48,880	(6)
Non-controlling interests	(22)	(72)	>100	(p)
Total comprehensive income for the year
52,144	48,808

N.M - not meaningful

2) CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		Group			Company
		31-Dec-20	31-Dec-20	Variance	Note	31-Dec-20	31-Dec-20	Variance	Note
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
ASSETS	RM'000	RM'000	%		RM'000	RM'000	%
Current assets
Trade and other receivables	5,700	3,398	(40)	(f)	5,467	3,304	(40)	(f)
Current tax recoverable	1	1	N.M.		-	-	-
Cash and cash equivalents	91,729	91,715	N.M.		91,675	91,675	-
		97,430	95,114			97,142	94,979
Non-current assets		-	>100			-	>100
Plant and equipment	820	(g)	799	(g)
Right-of-use assets	-	72	>100	(g)	-	72	>100	(g)
Investments in subsidiary	-	-	-		2,090	-	>100	(n)
corporations
		820	72			2,889	72
Total assets		98,251	95,186			100,031	95,051
LIABILITIES
Current liabilities
Other payables and accruals	2,905	3,300	14%	(h)	2,626	3,007	15%	(h)
Bank overdraft	-	1	>100	(i)	*	1	>100	(i)
Lease liabilities	31	110	>100	(j)	31	110	>100	(j)
		2,936	3,411			2,657	3,117
Non-current liabilities
Lease liabilities	78	-	>100	(j)	78	-	>100	(j)
Total liabilities		3,014	3,411			2,735	3,117
NET ASSETS	95,238	91,775			97,296	91,934
EQUITY
Capital and reserves attributable to
equity holders of the Company
Share capital	42,904	42,828	N.M.		42,904	42,828	N.M.
Share capital (Unpaid)	3,277	3,277	-		3,277	3,277	-
Treasury shares	(3)	(3)	-		(3)	(3)	-
Foreign currency translation	93	53	(43)	(k)	-	-	-
reserve
			(a)				(a)
Retained earnings	48,967	45,676	(7)	to	51,117	45,831	(10)	to
					(e)				(e)
		95,238	91,831	>100		97,296	91,934	-
Non-controlling interests		*	(56)	(p)	-	-
TOTAL EQUITY		95,238	91,775			97,296	91,934
* - less than RM1,000
N.M - not meaningful

3) CONSOLIDATED STATEMENT OF CASH FLOWS
		Group
		Twelve Months Ended	Variance	Note
		31-Dec-20	31-Dec-20
		(Unaudited) (Audited)	%
Cash flows from operating activities	RM'000	RM'000
Loss before taxation
-	Continuing operations	(4,929)	(8,272)	68	(a) to (e)
-	Discontinued operations	57,073	57,073	-
Profit before taxation	52,144	48,801
Adjustments for:
Bad debts written off	-	1,537	>100	(d(iv))
Depreciation of plant and equipment	202	167	(17)	(a)
Interest income	(665)	(662)	N.M.
Gain on disposal of subsidiaries	(57,260)	(57,260)	-
Plant and equipment written off	-	30	>100	(g)
Unrealised currency translation difference	(7)	-	>100
Interest expense	4	4	-
Impairment on plant and equipment made	-	1,014	>100	(g)
Other write-off	-	460	>100	(d(ii))
Depreciation of right-of-use assets	-	71	>100	(e)
Operating cash flows before working capital
changes	(5,581)	(5,838)
Changes in working capital
Changes in trade and other receivables	909	988	9	(f)
Changes in prepayments	-	50	>100	(l)
Changes in other payables and accruals	2,309	2,692	17	(h)
Cash used in operations	(2,363)	(2,108)
Income tax paid	-	*	N.M.
Net cash used in operating activities	(2,363)	(2,108)
Cash flows from investing activities
Purchase of plant and equipment	(768)	(1,075)	40	(f)
Interest received	665	662	N.M.
Disposal of subsidiaries, net of cash disposed of	66,622	66,763	N.M.
Net cash generated from investing activities	66,519	66,350
Cash flows from financing activities
Acquisition of a subsidiary corporation by	*	-	-
non-controlling interest
Proceeds from issuance of shares	15,086	15,086	-
Fixed deposit pledged	12	12	-
Dividend paid	(11,386)	(11,386)	-
Share issuance expenses	-	(76)	>100	(m)
Repayment of lease liabilities	(42)	(42)	-
Interest paid	(4)	(4)	-
Net cash generated from financing activities	3,666	3,590