Financial Statements And Related Announcement - First Quarter Results
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Consolidated Income Statement
Consolidated Statement of Other Comprehensive Income
Review Of Performance
INCOME STATEMENT – Comparing 1Q2017 to 1Q2016
The Group's revenue increased by 26.5% from US$205.7 million to US$260.3 million, and gross profit increased by 12.3% from US$11.9 million to US$13.4 million, which were due to higher sales from the Hong Kong and Singapore business units.
Other income decreased by 52.4% from US$103,000 to US$49,000 mainly due to lower amount received under the Wage Credit Scheme in Singapore.
Sales and distribution costs remained relatively constant at US$6.8 million.
General and administrative expenses increased by 6.9% from US$3.6 million to US$3.9 million. These were mainly due to higher staff cost and rental.
Included in other expenses were net allowance for doubtful trade debts of US$194,000 in 1Q2017, and net write-back of allowance for doubtful trade debts of US$32,000 in 1Q2016 due to claim payment.
Interest expense increased by 66.4% from US$0.5 million to US$0.8 million mainly due to higher borrowings arising from the increase in working capital requirements and higher financing cost from the hikes in interest rates.
Overall, the Group reported an increase in profit after taxation by 61.6% from US$0.8 million to US$1.4 million.
CASH FLOW AND FINANCIAL POSITION
During the quarter, the Group's net cash flow used in operating activities was US$9.2 million compared to net cash flow generated from operating activities of US$18.8 million in 1Q2016, mainly due to increase in the requirement for working capital by US$10.8 million.
The increase in working capital requirement was mainly due to an increase in stock from US$131.6 million to US$152.1 million as at 31 March 2017.
This was partially offset by a decrease in trade debtors from US$154.2 million to US$151.1 million as at 31 March 2017, which was due to higher collection and an increase in trade creditors and accruals from US$100.1 million to US$108.8 million as at 31 March 2017, which was due to higher purchase of stock.
The Group's net cash flow generated from financing activities was US$6.8 million compared to net cash flow used in financing activities of US$18.2 million in 1Q2016, mainly due to interest-bearing loans and borrowings increased from US$123.5 million to US$130.3 million as at 31 March 2017 to fund the working capital requirements.
The Group's cash and short term deposits was US$14.1 million as at 31 March 2017 as compared to US$16.6 million as at 31 December 2016.
Overall, shareholders' equity increased to US$70.0 million from US$68.3 million as at 31 December 2016, mainly due to the profit for the period of US$1.4 million and net gain on fair value changes of available-for-sale financial assets of US$0.4 million during 1Q2017.
Infrastructure developments continue to be a key contributor to our business growth across the markets we operate in. With plans in place to strengthen our technical expertise, as well as continuous efforts to value-add to our partners, we are in a good position to capture new business opportunitues. The Group will continue to explore new collaborations and relevant product lines to increase product portfolio.
Overall, challenges remain due to geopolitical uncertainties but we will stay focused on delivering business growth.