Financial Statements And Related Announcement - Third Quarter Results
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Consolidated Income Statement
Consolidated Statement of Other Comprehensive Income
Review Of Performance
INCOME STATEMENT – Comparing 3Q2018 to 3Q2017
The Group’s revenue increased by 11.7% from US$312.6 million to US$349.3 million, and gross profit increased by 7.3% from US$17.1 million to US$18.3 million, mainly due to higher sales from Singapore business unit arising from stronger demand
Other income increased from US$0.2 million to US$0.4 million mainly due to non-recurring engineering income.
Sales and distribution costs increased by 21.8% from US$7.6 million to US$9.2 million, mainly due to net foreign exchange loss arising from the translation of balances denominated in foreign currency into functional currency and marketing expenses.
General and administrative expense decreased by 12.1% from US$5.3 million to US$4.7 million, mainly due to lower professional fees and one-off expense for last year relating to the Group’s 30th year anniversary.
Other expenses increased by US$0.2 million. This was due to allowance for doubtful trade debts in 3Q2018.
Interest expense increased by 49.4% from US$1.2 million to US$1.7 million, due to higher borrowings and higher financing cost from the hikes in interest rates.
Overall, the Group reported profit after taxation of US$2.5 million for 3Q2018.
CASHFLOW AND FINANCIAL POSITION
During the quarter, the Group’s net cash flows generated from operating activities was US$0.3 million compared to US$1.0 million in 3Q2017, mainly due to higher working capital requirements.
The Group’s trade and other debtors increased from US$199.1 million to US$226.8 million as at 30 September 2018 mainly due to increase in sales. Stock increased from US$175.0 million to US$209.0 million as at 30 September 2018.
Trade and other creditors increased from US$169.3 million to US$209.7 million as at 30 September 2018, due to higher purchase of stock.
Property, plant and equipment increased from US$2.6 million to US$3.3 million as at 30 September 2018 mainly due to new system enhancements and office renovation across the Group. This was partially offset by the depreciation for the 9 months ended 30 September 2018.
Interest-bearing loans and borrowings increased from US$142.7 million to US$166.5 million as at 30 September 2018 to fund the working capital requirements.
The Group’s cash and short term deposits was US$13.1 million as at 30 September 2018 as compared to US$10.0 million as at 31 December 2017.
Overall, shareholders’ equity increased from US$73.8 million to US$75.9 million as at 30 September 2018, due to the net profit of US$6.2 million for 9 months ended 30 September 2018. This was partially offset by the dividend payment of US$4.0 million in May 2018.
While we have seen some volatility in the business environment due to the escalation of the trade war and other geopolitical uncertainties, Excelpoint has delivered a creditable 3Q performance.
Our core segments which include Mobile & Computing, Industrial & Instrumentation and Consumer continue to provide resilience and stability to our long-term performance. Excelpoint’s strong focus on growing research and development (“R&D”) competencies and technical capabilities continue to be the underpinning factor that helps us deepen collaborations and relationships with our suppliers and customers, and grow the business sustainably.