PPL Full Year 2019 Annual Report
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Parkway Pantai Limited and its subsidiaries Directors’ statement Year ended 31 December 2019 Directors’ statement We are pleased to submit this annual report to the member of the Company together with the audited financial statements for the financial year ended 31 December 2019. In our opinion: (a) the financial statements set out on pages FS1 to FS145 are drawn up so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2019 and the financial performance, changes in equity and cash flows of the Group for the year ended on that date in accordance with the provisions of the Singapore Companies Act, Chapter 50 and Singapore Financial Reporting Standards (International); and The Directors would like to draw your attention to note 40 of the financial statements. Given the ongoing regulatory investigations, any further adjustments or disclosures, if required, would be made in the financial statements of the Group as appropriate when the outcome is known. (b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due. The Board of Directors has, on the date of this statement, authorised these financial statements for issue. Directors Directors who served during the financial year until the date of this statement are: Dr Kelvin Loh Chi-Keon (Executive Director, appointed on 1 July 2019 CEO and Managing Director, appointed on 1 January 2020) Dr Tan See Leng (Group CEO & Managing Director, resigned on 31 December 2019) Low Soon Teck Directors’ interests According to the register kept by the Company for the purposes of Section 164 of the Companies Act, Chapter 50 (“the Act”), particulars of interests of directors who held office at the end of the financial year (including those held by their spouses and children) in shares, debentures, warrants and share options in the Company and in related corporations (other than wholly-owned subsidiaries) are as follows: Holdings in the name Other holdings in which Name of director and corporation of the director, spouse the director is deemed in which interests are held or children to have an interest At beginning At beginning of the year/ of the year/ date of At end date of At end appointment of the year appointment of the year The Company Perpetual securities Dr Tan See Leng US$3,000,000 – – – 1 Parkway Pantai Limited and its subsidiaries Directors’ statement Year ended 31 December 2019 Holdings in the name Other holdings in which Name of director and corporation of the director, spouse the director is deemed in which interests are held or children to have an interest At beginning At beginning of the year/ of the year/ date of At end date of At end appointment of the year appointment of the year Ultimate holding company IHH Healthcare Berhad Ordinary shares of RM1 each Dr Tan See Leng 8,201,800 – – – Low Soon Teck 216,000 16,300 – – IHH Long Term Incentive Plan1 2017 Grant Dr Tan See Leng 426,000 – – – Low Soon Teck 73,000 – – – 2018 Grant Dr Tan See Leng 882,000 441,000 – – Low Soon Teck 146,000 73,000 – – 2019 Grant Dr Tan See Leng – 1,110,000 – – Low Soon Teck – 290,000 – – IHH Enterprise Option Scheme2 2015 Option Grant Dr Tan See Leng 3,998,000 3,998,000 – – 2016 Option Grant A Dr Tan See Leng 6,105,000 6,105,000 – – 2016 Option Grant B Dr Tan See Leng 4,126,000 4,126,000 – – Low Soon Teck 100,000 100,000 – – 2018 Option Grant Dr Tan See Leng 6,432,000 6,432,000 – – Low Soon Teck 2,016,000 2,016,000 – – 2019 Option Grant Dr Tan See Leng – 9,748,000 – – Low Soon Teck – 704,000 – – Subsidiary Parkway Life REIT Units in Real Estate Investment Trust Dr Kelvin Loh Chi-Keon 120,000 120,000 – – 1 The IHH Healthcare Berhad (“IHHHB”) Long Term Incentive Plan (“IHH LTIP”) was established on 25 March 2011. Under the IHH LTIP Bye Laws (“Bye Laws”), eligible employees may be granted LTIP units which will vest over a three-year period in equal proportions each year. Each unit of the LTIP is entitled to be converted to one ordinary share of IHHHB. 2 The Options were granted under IHHHB’s Enterprise Option Scheme as set out in the Directors’ Statement of IHHHB for the year ended 31 December 2019. Subject to the terms of the Enterprise Option Scheme Bye Laws (as the same may from time to time be amended), the Options will vest in the participants over a three-year period in equal proportions (or substantially equal proportion) each year. 2 Parkway Pantai Limited and its subsidiaries Financial statements Year ended 31 December 2019 Statements of financial position As at 31 December 2019 Group Company Note 2019 2018 2019 2018 $’000 $’000 $’000 $’000 Restated* Assets Property, plant and equipment 4 2,872,593 3,538,820 1 4 Right-of-use assets 5 1,714,865 – – – Prepaid lease payments 6 – 334,758 – – Investment properties 7 1,148,228 1,088,800 – – Intangible assets 8 1,344,385 1,118,825 – – Interests in subsidiaries 9 – – 7,337,586 7,170,319 Interests in associates 10 30,260 287,891 – – Interests in joint ventures 11 69,561 67,965 – – Other financial assets 12 15,305 6,140 – – Trade and other receivables 16 40,957 32,433 – – Financial derivatives 23 3,018 237 – – Deferred tax assets 13 101,172 106,288 – – Tax recoverables 126,178 90,913 – – Non-current assets 7,466,522 6,673,070 7,337,587 7,170,323 Development properties 14 27,563 26,552 – – Inventories 15 73,709 68,257 – – Other financial assets 12 43,021 33,962 – – Trade and other receivables 16 496,538 461,390 9,675 359,432 Financial derivatives 23 28 1,279 – – Tax recoverables 1,333 2,782 – – Cash and cash equivalents 17 1,446,811 2,099,852 111,676 33,717 2,089,003 2,694,074 121,351 393,149 Assets held for sale 18 2,209 2,121 – – Current assets 2,091,212 2,696,195 121,351 393,149 Total assets 9,557,734 9,369,265 7,458,938 7,563,472 The accompanying notes form an integral part of these financial statements. FS1 Parkway Pantai Limited and its subsidiaries Financial statements Year ended 31 December 2019 Statements of financial position (cont’d) As at 31 December 2019 Group Company Note 2019 2018 2019 2018 $’000 $’000 $’000 $’000 Restated* Equity Share capital 19 5,950,860 5,120,860 5,950,860 5,120,860 Other reserves 20 (3,107,053) (3,121,306) (172) (287) Retained earnings 1,038,645 870,532 413,713 409,519 Equity attributable to owner of the Company 3,882,452 2,870,086 6,364,401 5,530,092 Perpetual securities 21 690,770 690,788 690,770 690,788 Non-controlling interests 38 942,083 1,165,921 – – Total equity 5,515,305 4,726,795 7,055,171 6,220,880 Liabilities Loans and borrowings 22 2,043,480 2,174,938 326,925 492,125 Lease liabilities 5 311,404 – – – Financial derivatives 23 817 4,002 – – Employee benefits 24 26,430 26,948 – – Trade and other payables 25 30,402 143,761 – – Deferred tax liabilities 13 188,460 139,967 22 – Non-current liabilities 2,600,993 2,489,616 326,947 492,125 Bank overdrafts 17 39,870 26,712 – – Loans and borrowings 22 160,778 122,221 – 18,000 Lease liabilities 5 42,092 – – – Financial derivatives 23 2,496 1,951 – – Employee benefits 24 43,220 38,942 – – Trade and other payables 25 1,041,347 1,838,662 75,996 831,310 Current tax payable 111,633 124,366 824 1,157 Current liabilities 1,441,436 2,152,854 76,820 850,467 Total liabilities 4,042,429 4,642,470 403,767 1,342,592 Total equity and liabilities 9,557,734 9,369,265 7,458,938 7,563,472 * Refer to notes 42 and 43. The Group initially applied SFRS(I) 16 Leases at 1 January 2019, using the modified retrospective approach. Under this approach, comparative information is not restated and the cumulative effect of initially applying SFRS(I) 16, if any, is recognised in retained earnings at the date of initial application. The comparative information is restated on account of adjustments to provisional fair values for acquisition of Fortis Healthcare Limited (“Fortis”) on completion of purchase price allocation during the year. The accompanying notes form an integral part of these financial statements. FS2 Parkway Pantai Limited and its subsidiaries Financial statements Year ended 31 December 2019 Consolidated statement of comprehensive income Year ended 31 December 2019 Group Note 2019 2018 $’000 $’000 Revenue 26 3,588,092 2,539,559 Other operating income 83,352 107,960 Inventories and consumables (706,652) (480,316) Purchased and contracted services (457,214) (252,225) Development cost of properties sold (243) – Depreciation and impairment of property, plant and equipment 4 (229,323) (202,829) Depreciation and impairment of right-of-use assets 5 (71,978) – Amortisation of prepaid lease payments 6 – (5,940) Amortisation of intangible assets 8 (13,821) (5,057) Staff costs 27 (1,155,565) (899,790) Operating lease expenses 5 (16,369) (51,331) Allowance for impairment loss (made)/written back on trade and other receivables (19,688) 13,505 Other operating expenses (575,857) (363,430) Finance income 27 35,363 37,130 Finance costs 27 (114,791) (54,007) Share of profits of associates (net of tax) 10 21,173 3,855 Share of profits of joint ventures (net of tax) 11 3,250 635 Profit before tax 27 369,729 387,719 Tax expense 28 (164,371) (98,744) Profit for the year 205,358 288,975 Other comprehensive income Items that will not be reclassified to profit or loss: Defined benefit plan remeasurements 24 626 (409) Change in fair value of equity investments at FVOCI (3,049) – Tax on other comprehensive income and effect of change in tax rate 13 (990) 140 (3,413) (269) Items that are or may be reclassified subsequently to profit or loss: Foreign currency translation differences of foreign operations (restated) (59,845) (2,599) Net gain/(loss) on hedge of net investments in foreign operations 486 (26,291) Net movement for cash flow hedges 323 1,423 Net movement in cost of hedging reserve 301 – (58,735) (27,467) Other comprehensive income for the year, net of tax (restated) (62,148) (27,736) Total comprehensive income for the year (restated) 143,210 261,239 The accompanying notes form an integral part of these financial statements.