Financials

Financial Statements And Related Announcement - Third Quarter Results

Financials Archive

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Consolidated Income Statement

Income Statement

Consolidated Statement of Other Comprehensive Income

Income Statement

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.

Commentary

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.

Balance Sheet

Balance Sheet