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1 Full Year Financial Statement and Dividend Announcement for The Co. Reg. No. 197001177H Full Year Financial Statement and Dividend Announcement for the year ended 31 December 2019 (“FY2019”) PART I – INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2, Q3 & Q4), HALF-YEAR AND FULL YEAR RESULTS. 1(a)(i) An income statement and statement of comprehensive income, together with a comparative statement for the corresponding year of the immediately preceding financial year. Unaudited Income Statement for the financial year ended 31 December 2019 31.12.2019 31.12.2018** +/(-) $'000 $'000 % Revenue 111,885 122,171 (8.42) Other Income 7,143 8,103 (11.85) Other (Iosses)/gains -Impairment loss on financial assets (583) (1,273) (54.20) -Others (29) 27 NM Total other losses (612) (1,246) (50.88) Expenses -Changes in Inventories of finished goods (1,009) (211) 378.20 -Purchases of Inventories and related costs (41,684) (47,170) (11.63) -Employee compensation (18,084) (17,701) 2.16 -Depreciation expense* (24,542) (6,677) 267.56 -Rental expense* (6,310) (31,945) (80.25) -Service charge expense (6,322) (6,322) - -Interest expense* (3,090) - NM -Impairment loss on property, plant and equipment (3,808) (11,887) (67.97) -Impairment loss on right-of-use assets (22,658) - NM -Provision for onerous contracts (755) (2,380) (68.28) -Other expenses (17,731) (18,708) (5.22) Total expenses (145,993) (143,001) 2.09 Share of profit of an associated company 389 258 50.78 Loss before income tax (27,188) (13,715) 98.24 Income tax expense - - - Net loss after tax for the financial year (27,188) (13,715) 98.24 Attributable to : Equity holders of the Company (27,188) (13,715) 98.24 NM-Not meaningful * The new standard SFRS(I) 16 takes effect from 1 January 2019, in which the Company has elected the simplified transition approach from 1 January 2019. Comparatives for 2018 have not been restated. Please refer to Note 5 for more information. ** Following the completion of the strike-off of a subsidiary on 7 May 2018, the Company ceased to hold any investment in subsidiary. Accordingly, the investment in an associated company is accounted using the equity method of accounting less impairment in the Company’s financial statements for the year ended 31 December 2019, to reflect the Company’s economic interests in the associated company. Please refer to Note 5 for more information on the change in accounting policy for the Company’s investment in the associated company. 1 Co. Reg. No. 197001177H Unaudited Statement of Comprehensive Income for the financial year ended 31 December 2019 31.12.2019 31.12.2018 +/(-) $'000 $'000 % Net loss for the financial year (27,188) (13,715) 98.24 Other Comprehensive loss: Items that may be reclassified subsequently to profit or loss: Foreign currency translation differences (49) (6) NM Items that will not be reclassified subsequently to profit or loss: Financial assets, fair value through other comprehensive Income -Fair value gain/(loss) 358 (125) NM Actuarial gain on the retirement benefit obligation - 11 NM Other comprehensive income/(loss),net of tax 309 (120) NM Total comprehensive loss for the financial year (26,879) (13,835) 94.28 Total comprehensive loss attributable to: Equity holders of the Company (26,879) (13,835) 94.28 NM-Not meaningful Additional Disclosure (i) 31.12.2019 31.12.2018 +/(-) $'000 $'000 % Revenue -Sale of goods 58,733 65,528 (10.37) -Consignment Income 41,967 46,738 (10.21) -Rental Income 11,185 9,905 12.92 111,885 122,171 (8.42) Other Income -Dividend Income 119 124 (4.03) -Other rental Income 3,019 4,052 (25.49) -Interest Income 3,374 3,125 7.97 -Sundry Income 631 802 (21.32) 7,143 8,103 (11.85) (ii) There was no interest on borrowings and extraordinary items during the period and the preceding year. 2 Co. Reg. No. 197001177H 1(b)(i) A statement of financial position (for the issuer), together with a comparative statement as at the end of the immediately preceding financial year. Unaudited Balance Sheet as at 31 December 2019 31.12.2019 31.12.2018 $'000 $'000 (Restated) ASSETS Current assets Cash and cash equivalents 39,319 50,706 Trade and other receivables 5,386 7,874 Other Investments at amortised cost 20,200 4,007 Rental deposit 748 - Inventories 8,800 9,809 Other current assets 2,636 2,945 77,089 75,341 Non-current assets Other receivables 99 119 Financial assets, FVOCI 4,417 3,744 Other Investments at amortised cost 49,429 64,468 Club memberships 205 235 Investment in an associated company* 1,852 1,512 Rental deposits 5,525 6,357 Investment properties 35,290 28,820 Property, plant and equipment 26,945 27,984 Right-of-use assets* 64,654 - 188,416 133,239 Total assets 265,505 208,580 LIABILITIES Current liabilities Trade and other payables 40,938 43,026 Provisions for other liabilities and charges 1,214 2,035 Lease liabilities* 19,892 - 62,044 45,061 Non-current liabilities Trade and other payables 3,520 3,884 Provisions for other liabilities and charges 1,856 2,348 Lease liabilities* 69,740 - 75,116 6,232 Total liabilities 137,160 51,293 NET ASSETS 128,345 157,287 EQUITY Share capital 91,710 91,710 General reserve 17,000 17,000 Fair value reserve 1,841 1,483 Currency translation reserve (64) (15) Other reserves 291 291 Retained earnings 17,567 46,818 Total equity 128,345 157,287 *Please refer to Note 5 for more details 3 Co. Reg. No. 197001177H 1(b)(ii) Aggregate amount of company’s borrowings and debt securities Amount repayable in 1 year or less, or on demand As at 31.12.19 As at 31.12.18 Secured Unsecured Secured Unsecured - - - - Amount repayable after 1 year As at 31.12.19 As at 31.12.18 Secured Unsecured Secured Unsecured - - - - Details of any collateral Not applicable. 4 Co. Reg. No. 197001177H 1 (c) A statement of cash flows together with a comparative statement for the corresponding period of the immediately preceding financial year. Unaudited Statement of Cash Flows for the financial year ended 31 December 2019 31.12.2019 31.12.2018 $'000 $'000 Cash flows from operating activities Loss before Income tax (27,188) (13,715) Adjustments for: Depreciation expense 24,542 6,677 Dividend Income (119) (124) Amortisation of capitalised letting fees 10 93 Interest Income (3,374) (3,125) Changes in provision for other liabilities and charges (393) 73 Interest expense* 3,090 - Gain on disposal of club memberships - (28) Impairment loss on club membership 30 16 Impairment loss on right-of-use assets 22,658 - Impairment loss on property, plant and equipment 3,808 11,887 Impairment loss on financial assets 583 1,273 Property, plant and equipment written-off 108 52 Increases in provision for onerous contracts 755 2,380 Share of profit of an associated company (389) (258) 24,121 5,201 Changes in working capital Trade and other receivables 1,894 3,172 Inventories 1,009 211 Other assets and rental deposits 393 (68) Trade and other payables (5,539) (1,822) Provisions (1,030) - Net cash generated by operating activities 20,848 6,694 Cash flow from investing activities Dividends received 119 124 Payments for investment property (889) (1,447) Payments for property, plant and equipment (8,517) (429) Payments for club membership - (9) Payments for investment in an associate - (920) Payments for letting fees - (6) Purchases of other investments at amortised cost (5,278) (17,817) Proceeds from maturity/ early redemption by issuers of other investments at amortised cost 4,000 5,750 Proceeds from disposal of club membership - 45 Purchase of financial assets, FVOCI (315) (5) Interest received 3,493 2,982 Net repayments from employees 36 80 Net cash used in investing activities (7,351) (11,652) Cash flow from financing activities Payment of Interest element of lease liabilities* (3,090) - Payment of finance lease liabilities (19,731) - Dividend paid (2,063) (2,063) Net cash used in financing activities (24,884) (2,063) Net decrease in cash and cash equivalents (11,387) (7,021) Cash and cash equivalents at beginning of the financial year 50,706 57,727 Cash and cash equivalents at end of the financial year 39,319 50,706 *Interest expense relating to lease liabilities under SFRS(I) 16 5 Co. Reg. No. 197001177H 1 (d)(i) A statement showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year . Unaudited Statement of Changes in Equity for the financial year ended 31 December 2019 Currency Share General Fair Value Translation Other Retained Total Capital Reserve Reserve Reserve Reserves Earnings Balance as at 1 January 2019 91,710 17,000 1,483 (15) 291 46,818 157,287 Total comprehensive income/(loss) for the year - - 358 (49) - (27,188) (26,879) Dividend paid - - - - - (2,063) (2,063) Balance as at 31 December 2019 91,710 17,000 1,841 -64 291 17,567 128,345 Restated balance as at 1 January 2018 91,710 17,000 1,608 (9) 280 62,596 173,185 (Pls see note 5, Change in accounting policy) Total comprehensive Income/(loss) for the year - - (125) (6) 11 (13,715) (13,835) Dividend paid - - - - - (2,063) (2,063) Balance as at 31 December 2018 91,710 17,000 1,483 (15) 291 46,818 157,287 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, subdivision, consolidation, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on.
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