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Financials

Financial Statements And Related Announcement - Second Quarter And/ Or Half Yearly Results

Financials Archive

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Unaudited Second Quarter Financial Statements Announcement

Consolidated Statement Of Comprehensive Income For The Second Quarter And Half Year Ended 30 June 2018

Balance Sheet

Review Of Performance

STATEMENTS OF FINANCIAL POSITION

Comparing 30 June 2018 with 31 December 2017 figures:

  1. The decrease in property, plant and equipment was due mainly to depreciation in 1H 2018.
  2. The decrease in investment properties was due to reclass of 2 strata industrial units held at 63 Hillview Avenue, Lam Soon Industrial Building, to asset held for sale.
  3. The decrease in cash and cash equivalents was due mainly to repayment of loans, dividend payment and net cash used in operating activities.
  4. The increase in assets held for sale relates to the committed disposal of 2 strata industrial units at 63 Hillview Avenue held by the Company's subsidiaries, QF 1 Pte Ltd and QF 9 Pte Ltd, during 2Q 2018.
  5. The decrease in loans and borrowings was attributed mainly to repayments of long-term loans and borrowings.
  6. Trade and other payables were lower due mainly to repayment of bridging loan to a related party and payment made to trade and other creditors during the period.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Comparing 2Q/1H 2018 figures with 2Q/1H 2017 figures:

  1. Revenue decreased by $25.4 million or 71% from $36.0 million to $10.6 million in 1H 2018 and $5.3 million or 46% from $11.7 million to $6.4 million in 2Q 2018. The decrease was due mainly to the following:
    • The absence of revenue recognised by the Group's joint operation with SB Procurement Pte Ltd (as announced via SGXNET on 18 May 2014) under construction business as the construction project was completed in 2Q 2017;
    • Cessation of rental income generated from the Group's investment property - PoMo,due to the divestment of this property (divestment of "PoMo") in 4Q 2017; and
    • Reduction of sales from recycling businesses was mainly due to relocation of the Group's recycling plant.
  2. The Group's gross profit dropped by $7.0 million or 73% from $9.6 million to $2.6 million in 1H 2018 and $2.8 million or 66% from $4.2 million to $1.4 million in 2Q 2018, was attributed mainly to the reduced rental income resulting from the divestment of PoMo in 4Q 2017 and construction activity as a result of the completion of the construction project from the joint operation with SB Procurement Pte Ltd (as announced via SGXNET on 18 May 2014) in 2Q 2017.
  3. The general and administrative expenses is lower in 2Q/1H 2018 due mainly to warehouse and office relocation and restoration expenses incurred in 2Q/1H 2017 and lower bank charges. The decrease was further attributed to the divestment of PoMo in 4Q 2017.
  4. The decrease in finance costs for 2Q/1H 2018 was attributed mainly to lower term loan interests resulted from the significant redemption of term loans in 4Q 2017.
  5. Other income, selling and distribution expenses and other expenses for 2Q/1H 2018 were generally comparable to 2Q/1H 2017.

CONSOLIDATED STATEMENT OF CASH FLOWS

Comparing 2Q/1H 2018 figures with 2Q/1H 2017 figures:

  1. The net cash outflows from operating activities in 1H 2018 and the net cash inflows from operating activities in 2Q 2018 and 2Q/1H 2017 due mainly to changes in working capital.
  2. The net cash outflows from investing activities in 1H 2018 compare to net cash inflows from investing activities in 1H 2017 and lower net cash inflows from investing activities in 2Q 2018 compare to 2Q 2017 were due mainly to absence of proceeds received from disposal of assets held for sale.
  3. The lower of net cash outflows from financing activities in 2Q/1H 2018 compare to 2Q/1H 2017 was due mainly to lesser interest payment and repayment of short term and long term loans and borrowings during the periods.

Commentary On Current Year Prospects

The Company expects the market environment to remain challenging in the second half of 2018. The Company will continue to explore and evaluate property business opportunities and optimise its resources to grow its existing recycling businesses.


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