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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Aseana Properties Limited | LSE:ASPL | London | Ordinary Share | JE00B1RZDJ41 | ORD USD0.05 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.12 | 0.11 | 0.13 | 0.12 | 0.115 | 0.115 | 0.00 | 08:00:03 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Real Estate Agents & Mgrs | 11.95M | -15.87M | -0.0799 | -1.50 | 23.84M |
From Apr 2019 to Apr 2024
TIDMASPL
RNS Number : 9533O
Aseana Properties Limited
25 August 2017
25 August 2017
Aseana Properties Limited
("Aseana" or the "Company")
Half-Year Results for the Six Months Ended 30 June 2017
Aseana Properties Limited (LSE: ASPL), a property developer investing in Malaysia and Vietnam, listed on the Main Market of the London Stock Exchange, announces its unaudited half-year results for the six-month period ended 30 June 2017.
Operational highlights:
Hot Features
Premium
-- SENI Mont' Kiara ("SENI") achieved approximately 99% sales to date.
-- The last unit of the Tiffani project was sold in July 2017.
-- A plot of land ("D2 land") at International Healthcare Park ("IHP") was sold for approximately US$5.5 million. The transaction was completed in June 2017.
-- A conditional sale agreement was entered into to dispose of another plot of land ("D3 land") at IHP for approximately US$7.7 million. All conditions have been met and the transaction is expected to complete by end Q3 2017.
-- The operation of City International Hospital ("CIH") has shown steady improvement for the past twelve months, with outpatient and inpatient volumes increasing by 71% and 66% respectively compared to same period in 2016.
Financial highlights:
-- Revenue of US$9.4 million for the six-month period ended 30 June 2017 (H1 2016: US$3.9 million)
-- Loss before tax for the six-month period ended 30 June 2017 of US$3.3 million (H1 2016: profit of US$29.2 million)
-- Loss after tax for the six-month period ended 30 June 2017 of US$3.6 million (H1 2016: profit of US$28.9 million)
-- Consolidated comprehensive expense of US$0.5 million for the six-month period ended 30 June 2017 (H1 2016: income of US$33.5 million)
-- Net asset value of US$135.0 million at 30 June 2017 (31 December 2016 (audited): US$143.4 million) or US$0.637 per share* (31 December 2016 (audited): US$0.676 per share)
-- Realisable net asset value of US$181.7 million at 30 June 2017 (31 December 2016 (unaudited): US$190.5 million) or US$0.857 per share* (31 December 2016 (unaudited): US$0.898 per share)
-- Net asset value per voting share at 30 June 2017 is equivalent to US$0.680. Realisable net asset value per voting share at 30 June 2017 is equivalent to US$ 0.914.*
* NAV per share and RNAV per share as at 30 June 2017 are calculated based on 212,025,000 issued shares (31 December 2016: 212,025,000 issued shares).
For the purposes of the Disclosure Guidance and Transparency Rules, the Company's total issued share capital comprises 212,025,000 Shares of US$0.05 each, with one voting right per Ordinary Share and 2 Management Shares of US$0.05 each, with one voting right per Management Share. There are 13,334,000 Shares held in treasury. The total number of voting rights in the Company is therefore 198,691,002.
The above figure of 198,691,002 Shares may be used by Shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the Disclosure Guidance and Transparency Rules.
Commenting on the results, Mohammed Azlan Hashim, Chairman of Aseana, said:
"The performance of the Group has been encouraging despite challenges in sectors of the market that the Company is invested in. Looking ahead, the Board together with the Manager remain focused on realising the remaining assets in a controlled, orderly and timely manner. Concerted efforts are in place to ensure that the Group's portfolio progresses in tandem with the growth and recovery of both the economies and property markets in Malaysia and Vietnam."
The Group has also published its Quarterly Investment Update (including updates on projects and RNAV figures) for the period to 30 June 2017, which can be obtained on its website at www.aseanaproperties.com/quarterly.htm.
For further information:
Aseana Properties Limited Tel: 00 603 6411 6388 Chan Chee Kian Email: cheekian.chan@ireka.com.my N+1 Singer Tel: 020 7496 3000 James Maxwell / Liz Yong (Corporate Finance) Sam Greatrex (Sales) Tavistock Tel: 020 7920 3150 Jeremy Carey / Kirsty Allan Email: jeremy.carey@tavistock.co.uk
Notes to Editors:
London-listed Aseana Properties Limited (LSE: ASPL) is a property developer with investments in Malaysia and Vietnam.
Ireka Development Management Sdn Bhd ("IDM") is the exclusive Development Manager for Aseana. It is a wholly-owned subsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysia since 1993, which has over 50 years' experience in construction and property development. IDM is responsible for the day-to-day management of Aseana's property portfolio and the divestment of existing properties.
CHAIRMAN'S STATEMENT
Introduction
I am pleased to report on the half-year results for Aseana Properties Limited ("Aseana") and its group of companies (the "Group") for the six months ended 30 June 2017.
The global economy continued to pick up speed in the first half of the year on the back of healthy economic dynamics in both emerging and advanced economies. Commodity prices are bouncing back from the freefall that began about two years ago and is now exhibiting a steadier trend. More robust global demand together with the long awaited cyclical recovery in trade, manufacturing and investment activities have all contributed to the upside developments in the economy. However, political instabilities around the world are still posing downside risks to global economic growth. Political tensions in the Middle East and in the Korean peninsula also have the potential to jeopardise recovery in the regional and world economies.
Meanwhile, 2017 appears to have been positive for Malaysia so far, as the nation's economic growth remains buoyant despite having faced subdued investor confidence, low commodity prices, political uncertainty and a weak currency. Gross Domestic Product ("GDP") growth of Malaysia reached 5.7% in the first half of 2017. The country's economy has received a boost from measures taken by the Government including removal of fuel subsidies, reduction of dependence on oil revenue, rationalising subsidies and the introduction of a Goods and Services Tax. Nevertheless, domestic consumption is still the principal driver of the country's economic growth. With many medium and long-term infrastructure projects in the pipeline, such as the second phase of the Mass Rapid Transit, the Light Rail Transit link extension project, the East Coast Rail Line, the high-speed rail and the Pan-Borneo Highway, Malaysia's economic growth rate is expected to be maintained over the coming years.
Vietnam has one of the best performing economies in the Southeast Asia region in recent years. Despite being plagued by an El Nino-induced drought and unfavourable global economic conditions which put a brake on its GDP growth last year, Vietnam's economy rebounded strongly to reach a growth rate of 6.17% in the second quarter of 2017. This brings total GDP growth to 5.73% for the first six months of the year, in the same period last year it was 5.50%. The State Bank of Vietnam recently reduced the refinancing rate by 25 basis points to 6.25% and lowered the discount rate from 4.50% to 4.25%, in an attempt to balance between boosting economic growth and keeping inflation under control. This move came as a surprise to many as it was the first interest rate reduction by the Vietnamese Government over the past three years.
Results
For the six months ended 30 June 2017, the Group recorded unaudited revenue of US$9.4 million (H1 2016: US$3.9 million), which was mainly attributable to the sale of completed units in SENI Mont' Kiara and the sale of a 1.23 hectare plot of land at IHP, through the sale of its 100% stake in HLSL5 Limited Liability Company ("HLSL 5"). No revenue was recognised for The RuMa, in accordance with IFRIC 15 - Agreements for Construction of Real Estate which prescribes that revenue be recognised only when the properties are completed and occupancy permits are issued.
The Group recorded an unaudited loss before tax for the period of US$3.3 million (H1 2016: profit of US$29.2 million), predominantly due to operating losses and financing costs of US$3.1 million on City International Hospital and US$1.0 million on Four Points by Sheraton Sandakan Hotel and Harbour Mall Sandakan.
The Group's unaudited loss after tax for the six-months ended 30 June 2017 stood at US$3.6 million (H1 2016: profit of US$28.9 million). The Group's unaudited consolidated comprehensive expense for the period of US$0.5 million (H1 2016: profit of US$33.5 million) has included a foreign currency translation gain of US$3.1 million (H1 2016: gain of US$5.2 million) which was attributable to the strengthening of the Malaysian Ringgit against the US Dollar by 2.9%.
Unaudited net asset value for the Group for the six-months ended 30 June 2017 decreased to US$135.0 million (31 December 2016 (audited): US$143.4 million) largely due to the capital distribution exercise in January 2017. The unaudited net asset value for the Group translates to US$0.637 per share (31 December 2016 (audited): US$0.676 per share). Meanwhile, unaudited realisable net asset value for the Group decreased to US$181.7 million as at 30 June 2017 (31 December 2016 (unaudited): US$190.5 million). This is equivalent to US$0.857 per share (31 December 2016 (unaudited): US$0.898 per share).
Review of Activities and Property Portfolio
Sales status (based on Sales and Purchase agreements signed):
Projects % sales as
% sales as at
at 31 December
15 August 2017 2016
-------------------------------- ---------------- -------------
Tiffani by i-ZEN 100.0% 99.7%
SENI Mont' Kiara
* Proceeds received 98.0% 97.2%
* Pending completion 1.0% 0.8%
The RuMa Hotel and Residences 55.3% 55.1%
-------------------------------- ---------------- -------------
Malaysia
On the back of the ongoing slowdown in luxury property sales, sales at SENI Mont' Kiara and The RuMa have been progressing at a slower pace. To date, sales of properties at SENI Mont' Kiara improved slightly to 98.8% based on sale and purchase agreements signed. In addition, the final remaining unit of the Tiffani project was sold in July 2017.
Similarly, sales at The RuMa improved marginally to 55.5% based on sale and purchase agreements signed, with a further 5.5 % booked with deposits paid. To drive sales performance, the Manager participated in various marketing and promotional events both locally and internationally and is planning further activities throughout the remainder of the year. Construction of the main building is progressing and completion is expected in Q4 2017.
The general business sentiment in Sabah has improved with increased tourist arrivals during the first four months of 2017. Sabah welcomed 1.2 million international and Malaysian tourists from January to April 2017, of which 140,473 were tourists from China. In a positive development, the United States of America has recently lifted its adverse travel advice for its citizens travelling to the east coast of Sabah, despite advisory notices from several other foreign governments remaining in place. This should bode well for the performance of FPSS in the coming months. Occupancy at FPSS for the first six months of the year stood at 40.9% and occupancy at HMS improved to 68.8% to date. More new tenants are being signed up at the mall following the opening of the cinema in July 2016 which has brought about an increase in footfall to the mall.
Vietnam
CIH has been performing consistently for the past one year. As at 13 August 2017, CIH had registered 6,410 in-patient days (13 August 2016: 3,862), equivalent to a daily average of 26 in-patient days (13 August 2016: 17), with an average revenue per in-patient day of US$390.9 (13 August 2016: US$511.1). Outpatients visits as at 13 August 2017 had reached 31,079 visits (13 August 2016: 18,224), equivalent to an average of 161 outpatients daily (13 August 2016: 101), which generated average revenue per visit of US$75.1 (13 August 2016: US$91.7). CIH commenced offering ophthalmology services at the end of 2016 and is expected to introduce angiographic intervention services by end of 2017 which will further boost patient volumes.
During the year to date, Aseana's 72.39% owned subsidiary, Hoa Lam-Shangri-la Healthcare Limited Liability Company ("HLSL"), completed the sale of a plot of 1.23 hectares of land at IHP, through the sale of its 100 per cent stake in HLSL 5 Limited Liability Company ("HLSL 5") to Tien Phat Consultancy Investment Company Limited, for a total consideration of US$5.4 million.
In addition, HLSL has entered into a conditional sale agreement with Tri Hanh Consultancy Company Limited to dispose of HLSL's 100 per cent stake in HLSL 6 Limited Liability Company ("HLSL 6") for a total consideration of US$7.73 million. HLSL6 holds a 1.19 hectares plot of land at IHP. All conditions precedents have been met and the transaction is expected to be completed by end of Q3 2017.
Divestment Investment Policy
Since receiving shareholder approval to commence the divestment of the Company's assets in June 2015, the Board of Directors has been actively engaged with the Company's Development Manager to dispose of the Company's assets in an orderly process, with the aim of completing the disposals by June 2018, and provided an update to the market on progress in July 2017.
Since June 2015, Aseana has divested a total of US$188.4m of assets, and project debt has fallen from the peak of US$229.4m as at 31 December 2013 to US$82.8m as at 30 June 2017. Furthermore, significant progress has been made in both readying the Company's remaining assets for sale, including reducing the operating losses at the City International Hospital in Ho Chi Minh City and the Harbour Mall Sandakan and Four Points Sheraton Sandakan Hotel in Sandakan, East Malaysia, and marketing the assets to prospective buyers.
The Group's borrowings as at 30 June 2017 stood at $82.779 million, of which $38.534 million will be due within the next 12 months. These debt obligations will be met through further divestment of the portfolio and refinancing.
During the divestment period, the Directors have been reducing the costs of operating the Company wherever possible including a 25% reduction in the Directors' fees for the period from July 2017 to June 2018. In addition, in order to ready the Company for the discontinuation vote to be proposed to Shareholders at the June 2018 AGM, the Company and the Development Manager have reduced the notice period for termination of the Management Agreement from 12 months to 3 months.
The Board and the Development Manager are continuing to use their best efforts to dispose of all the remaining assets of the Company by June 2018. However, if it becomes likely that the Company will not be able to meet this stated target, a separate announcement will be made by the Company by Q1 2018 in respect of its plans beyond June 2018.
MOHAMMED AZLAN HASHIM
Chairman
25 August 2017
DEVELOPMENT MANAGER'S REVIEW
Malaysia Economic Update
The Malaysian economy appears to be on the right track as it continued its steady growth momentum in the first half of the year, after having been affected on multiple fronts last year. The nation's economy remained resilient despite global commodity price impact and financial market volatility, owing to a diversified production and export base, responsive macroeconomic policies and strong balance sheet position. Malaysia's Gross Domestic Product ("GDP") for the second quarter of 2017 and the first half of 2017 grew at 5.8% and 5.7% respectively. Domestic consumption remained as the key growth driver in sustaining the economy. Meanwhile, the Malaysian Ringgit has rallied alongside other major Asian currencies, advancing against the United States Dollar during the period under review. The Ringgit strengthened against the US Dollar in the first half of the year, reflecting the positive impact of the central bank of Malaysia, Bank Negara Malaysia's ("BNM") onshore Ringgit market stabilisation measures as well as inflows of portfolio investments. Having said that, the weak performance of the Ringgit in the past year has given Malaysia an edge in its exports, with export turnover growing at the fastest rate, to a seven-year high of 33.0% for the month of May.
BNM maintained the Overnight Policy Rate ("OPR"), at 3.0%, during its recent Monetary Policy Committee meeting held in July 2017. The key benchmark interest rate was earlier kept unchanged until July 2016, when BNM cut the rate for the first time in over seven years by 25-basis-point. The decision was supportive of the nation's economic activity with the stabilising Ringgit, easing inflation risk and positive economic growth outlook. Headline inflation is expected to moderate in the second half of the year due to the waning effect of global cost factors. Meanwhile, core inflation is expected to remain contained as a result of more robust domestic demand.
Businesses in general are still optimistic about the Malaysian economy as the Business Condition Index ("BCI") is above the demarcation level of 100-point threshold of optimism. BCI in the second quarter of 2017 gained 1.4 points to register at 114.1 points. The oddity of the second quarter BCI is that despite the current and domestic related indices showing an improvement as compared to the previous quarter, the expected and export-oriented indices worsened during the same period, with signs showing slowing demand. This shows that, although businesses are pessimistic about the near-term prospect for export demand, they are upbeat about current developments particularly in the domestic market. Similarly, consumers remained cautious despite an increase in the Consumer Sentiments Index ("CSI") in the second quarter of the year. Although CSI picked up by 4.1 points quarter-on-quarter, the index remains below the demarcation level of 100 points. Consumers have taken a step back in their spending habits, notwithstanding the improved employment outlook.
Investment plays a pivotal role in Malaysia's GDP growth and provides impetus for the expansion of the country's capacity for future growth. In tandem with the nation's commitment to open trade and liberalisation, the Malaysian Government has entered into bilateral commitments with countries such as China, Saudi Arabia, India and France, to boost trade and Foreign Direct Investments ("FDIs"). These bilateral ties are expected to further improve growth and development of the country, which will eventually improve income levels for all Malaysians. The various multilateral platforms include a RM144 billion investment by China in Malaysia, Saudi Arabia's Aramco's RM31 billion investment in Petronas' Refinery and Petrochemical Integrated Development in Johor as well as a RM159 billion investment and economic cooperation deals with India. Malaysia's FDI reached RM25.3 million for the first half of 2017.
Overview of Property Market in Klang Valley, Malaysia
Offices
* 13 new office buildings were completed in Q2 2017,
increasing the total supply of office space in the
Klang Valley by 1.40 million sq.ft. to 117.18 million
sq.ft. Overall occupancy rate dropped marginally to
78.0% (Q1 2016: 79.0%).
* Market rentals and prices remained stable while
rental yield stayed between 5.5% and 8.0%.
* En-bloc transactions during the quarter: (i) Wisma
Selangor Dredging (Prime B 4 blocks, 5 to 20 storeys)
was sold at a price of RM480 million (US$112 million)
or RM1,323 psf (US$308 psf).
* 7.01 million sq.ft. office space is expected to be
completed in 2018. Office sector is expected to
remain sluggish as a result of current economic
conditions and oversupply in office space.
Retail
* Market prices and market rentals for retail centres
in Klang Valley were generally stable in Q2 2017.
* Average occupancy rate in Klang Valley decreased by
0.5% to 79.0% in Q2 2017 (Q4 2016: 79.5%).
Residential
* 20 projects with 8,717 units of condominium in Klang
Valley were completed in Q2 2017.
* 23 projects with 13,133 units were launched in Q2
2017.
* Market prices and market rental rates for
condominiums were generally stable in Q2 2017 with
some higher-grade condominiums recorded reductions in
market rentals.
* Selected new launches: (i) The Luxe (300 units),
launched in April 2017 with an average price of
RM1,350 psf (US$4314 psf) achieved 70% take-up rate;
(ii) D'rapport - Kennington & Auston (412 units),
launched in April 2017 with an average price of
RM1,300 psf (US$303 psf) is 30% sold.
Hospitality
* In Q2 2017, the average daily room rate for hotels in
selected competitive set to Four Points by Sheraton
Sandakan ("FPSS") (inclusive of FPSS) increased by
3.2% to RM187 per room per night compared to Q1 2016.
* Average occupancy rate for hotels in selected
competitive set to FPSS (inclusive of FPSS) decreased
by 1.5% to 34.6% in Q2 2017 compared to the same
period in 2016.
* Sabah welcomed 1.20 million international and
Malaysian tourists in the first 4 months of 2017, an
increase of 11.3% compared to same period in 2016.
Tourist arrivals from China, Taiwan and South Korea
were the highest in first 4 months of 2017, an
increase of 19.4%, 19.9% and 49.2% respectively
compared to the same period in 2016.
Source: Bank Negara Malaysia website, Jones Lang Wootton Q2 report, MIER, various publications
Exchange rate - 30 June 2017: US$1:RM4.2937
Vietnam Economic Update
The Vietnamese economy has seen positive changes and gradually gained momentum as a result of the underlying fundamentals of growth, encompassing domestic demand and manufacturing industry. Robust second quarter GDP growth at 6.17%, has led the Vietnamese economy back from a disappointing first quarter performance to average growth of 5.73% in the first six months of the year. Main economic indicators have shown encouraging progress with strong pickup in exports, foreign investment and agriculture production, all of which will provide the opportunity for speedier growth in the remaining quarters of the year. Furthermore, in a bid to spur economic growth, the State Bank of Vietnam has made a surprise move by reducing its interest rate for the first time in three years, by 0.25% to 6.25% and at the same time cut deposit rates from 4.50% to 4.25%. While it may be true that these rate cuts may help to support economic growth, the move also raises credit risk in a nation still struggling with a relatively high debt load. Nevertheless, both Fitch Ratings and Moody's Investors Service have revised the outlook on Vietnam's ratings from stable to positive, and affirmed the Vietnamese Government's issuer ratings at "BB-" and "B1" respectively, on the back of the country's steady economic growth performance.
In the meantime, Vietnam's average Consumer Price Index ("CPI") for the first half of 2017 increased by 4.15% as compared the same period last year. The reason for the increase was a hike in healthcare and education services as well as an indirect consequence of the minimum wage increase. However, the food prices index showed a declining trend for the fourth consecutive month, which weighed significantly on CPI movements in the second quarter of 2017. Notwithstanding the overall increase in the country's inflation rate, subdued food and oil prices will likely keep a lid on the Vietnamese inflation.
Vietnam remains as one of the most attractive locations for foreign investment in South East Asia due to its favourable demographics, location, free trade deals and highly competitive wages. During the period under review, Vietnam attracted US$19.2 billion in foreign direct investment ("FDI"), a surge of 54.8% against the same period last year. Furthermore, FDI disbursement reached US$7.7 billion, an increase of 6.5% as compared to the same period last year. In the six-month period, Vietnam's manufacturing and processing sector received the largest FDI capital at US$9.5 billion, accounting for 49.3% of total FDI, followed by electricity, gas and air conditioning supply at US$5.3 billion, whereas real estate was in the fifth position with a total investment capital of US$0.7 million.
As opposed to a trade surplus recorded during the same period last year, Vietnam witnessed a trade deficit of US$2.7 billion in the first half of 2017. Total export turnover reached US$97.8 billion, an increase of 18.9% year-on-year, while total import turnover reached US$100.5 billion, up by 24.1% over the same period last year. A large trade deficit in the first six months of the year supports an optimistic outlook for Vietnamese trade, with firms utilising imported items for the production of export goods, which are moving forward at a fast pace. For this reason, trade deficit may not be a daunting condition if imports are properly channelled into manufacturing.
Vietnam was recently ranked seventh on a list from the United Nations World Tourism Organisation of the Top 20 fastest-growing travel destinations in the world. Flexible visa restrictions and new air routes have helped to boost foreign arrivals to Vietnam, underpinning the growth of the country's tourism industry. In mid-May, the Vietnamese Government announced that it was extending a policy of visa-free travel which was originally scheduled to end on 30 June, by 12 months, for five European countries- Germany, France, Italy, Spain and the United Kingdom. Foreign arrivals in the first half of 2017 surged to approximately 6.2 million representing an increase of 30.2% as compared to 2016. The increase in the number of tourist arrivals helped push tourism revenues up by 27.0% year-on-year, reaching earnings of roughly US$11.2 billion. In tandem with the encouraging results, the Vietnamese Government is working hard to orientate Vietnam's tourism industry towards becoming the nation's key economic contributor by implementing various methods such as the establishment of tourism development funds or offering easier immigration procedures.
Overview of Property Market in Vietnam
Offices
* One Grade A and three Grade C office buildings were
completed and one Grade C office building was
temporarily closed in Q2 2017. The total supply
increased by 0.04 mil sq m to 1.64 mil sq m.
* Overall occupancy rate decreased by 1% q-o-q to 96%
in Q2 2017.
* Average rental rates increased by 4% q-o-q and 5%
y-o-y in Q2 2017 at US$28 psm per month.
Retail
* Retail stock increased by 3% q-o-q and 13% y-o-y due
to the openings of one shopping centre (Vincom Plaza
Saigonres, Binh Thanh), one departmental store and
one supermarket.
* Average rental rate in Q2 2017 decreased by 2% q-o-q
to US$52 psm per month, while average occupancy was
stable at 94%.
Residential
* Four new apartment projects (2,202 units) and seven
new phases of existing apartment projects (2,508
units) were launched in Q2 2017. Asking price for the
newly launched Grade B apartments was US$1,820 psm
and Grade C apartments' prices were between US$1,145
psm to US$820 psm.
* Apartments' transaction volume was registered at
11,694 units, an increase of 33% q-o-q and 67% y-o-y.
* One villa and townhouse mixed project (22 units) and
seven townhouse projects (367 units) were launched in
Q2 2017. Five new projects with 459 land plots and
new phases of two existing land plot projects with 68
land plots were launched in Q2 2017.
* Villa/townhouse market's absorption rates increased
by 3% q-o-q to 37% while the absorption rate for land
plot increased by 6% q-o-q to 50%.
* Korean Lotte Group has signed a contract with Ho Chi
Minh City People's Committee in July 2017 to develop
the 74,000 sq m Eco-Smart City in Thu Thiem district
with total investment capital of US$884 million. The
project will incorporate a shopping mall, offices,
hotels, services residences and apartments. In 2015
Lotte Group has paid US$89.6 million deposit on land
use fees for the project.
Hospitality
* One four-star hotel with 251 rooms and one three-star
hotel with 96 rooms were opened in Q2 2017. Overall,
the hotel stock was up by 2% q-o-q and 7% y-o-y.
* Average occupancy rate was at 65%, a decrease of 3%
q-o-q but increased by 1% y-o-y in Q2 2017, while
average room rate decreased by 3% q-o-q and 7% y-o-y
at US$78 per room per night.
* Three serviced apartment projects with 121 rooms were
opened in Q2 2017. Average occupancy decreased by 2%
q-o-q to 85%.
Source: General Statistics Office of Vietnam, Savills, CBRE, various publications
Exchange rate - 30 June 2017: US$1:VND22,735
LAI VOON HON
President / Chief Executive Officer
Ireka Development Management Sdn. Bhd.
Development Manager
25 August 2017
PROPERTY PORTFOLIO AS AT 30 JUNE 2017
Project Type Effective Approximate
Ownership Gross
Floor Approximate
Area Land Area
(sq m) (sq m) Remarks
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Completed projects
----------------------------------------------------------------------------------------------------------------------
Tiffani by i-ZEN Construction completion
Kuala Lumpur, Malaysia Luxury condominiums 100.0% 81,000 15,000 in August 2009
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Phase 1: Completed
in April 2011
SENI Mont' Kiara Phase 2: Completed
Kuala Lumpur, Malaysia Luxury condominiums 100.0% 225,000 36,000 in October 2011
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Retail lots: Completed
in 2009
Sandakan Harbour Retail mall: Completed
Square Retail lots, in March 2012
Sandakan, Sabah, hotel and retail Hotel: Completed
Malaysia mall 100.0% 126,000 48,000 in May 2012
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Phase 1: City
International
Hospital, International
Healthcare Park,
Ho Chi Minh City, Private general Completed in March
Vietnam hospital 72.39%* 48,000 25,000 2013
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Project under development
----------------------------------------------------------------------------------------------------------------------
The RuMa Hotel and Luxury residential
Residences tower and boutique Fourth quarter of
Kuala Lumpur, Malaysia hotel 70.0% 40,000 4,000 2017
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Undeveloped projects
----------------------------------------------------------------------------------------------------------------------
Other developments
in International
Healthcare Park, Commercial
Ho Chi Minh City, and residential
Vietnam (formerly development
International Hi-Tech with healthcare
Healthcare Park) theme 72.39%* 972,000 351,000 n/a
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Kota Kinabalu Seafront (i) Boutique 100.0% n/a 327,000 n/a
resort & residences resort hotel
Kota Kinabalu, Sabah, and resort
Malaysia villas 80.0%
(ii) Resort
homes
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Divested project
----------------------------------------------------------------------------------------------------------------------
Office suites,
1 Mont' Kiara by office tower
i-ZEN and retail Completed in November
Kuala Lumpur, Malaysia mall 100.0% 96,000 14,000 2010
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Waterside Estates
Ho Chi Minh City, Villa and high-rise
Vietnam apartments 55.0% 94,000 57,000 n/a
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Office towers: Completed
Kuala Lumpur Sentral Office towers in December 2012
Office Towers & Hotel and a business Hotel: Completed
Kuala Lumpur, Malaysia hotel 40.0% 107,000 8,000 in January 2013
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Business-class
Aloft Kuala Lumpur hotel
Sentral Hotel (a Starwood Completed in January
Kuala Lumpur, Malaysia Hotel) 100.0% 28,000 5,000 2013
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
Listed equity investment Listed equity 6.9% n/a n/a Effective ownership
in Nam Long Investment investment as at FY2015 before
Corporation, full disposal in
an established developer November 2016
in
Ho Chi Minh City,
Vietnam
--------------------------- --------------------- ----------- ------------ ------------ -------------------------
*Shareholding as at 30 June 2017
n/a: Not available / not applicable
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
SIX MONTHSED 30 JUNE 2017
Unaudited Unaudited Audited
Six months Six months Year
Notes ended ended ended
30 June 30 June 31 December
2017 2016 2016
Continuing activities US$'000 US$'000 US$'000
Restated*
---------------------------------------- ------ ----------- ----------- -------------
Revenue 3 9,379 108,162 112,535
Cost of sales 5 (7,242) (71,021) (77,547)
---------------------------------------- ------ ----------- ----------- -------------
Gross profit 2,137 37,141 34,988
Other income 6,202 14,971 21,963
Administrative expenses (537) (798) (1,466)
Foreign exchange gain/(loss) 6 1,233 (577) (5,051)
Management fees (1,534) (1,409) (3,331)
Marketing expenses (170) (79) (99)
Other operating expenses (8,288) (14,604) (21,625)
---------------------------------------- ------ ----------- ----------- -------------
Operating (loss)/profit (957) 34,645 25,379
----------- ----------- -------------
Finance income 52 274 401
Finance costs (2,377) (5,763) (9,616)
----------- ----------- -------------
Net finance costs (2,325) (5,489) (9,215)
Net (loss)/profit before taxation (3,282) 29,156 16,164
Taxation 7 (271) (227) (686)
---------------------------------------- ------ ----------- ----------- -------------
Loss/(profit) for the period/year (3,553) 28,929 15,478
---------------------------------------- ------ ----------- ----------- -------------
Other comprehensive income/(expense),
net of tax
Items that are or may be reclassified subsequently to profit or loss Foreign currency translation differences for foreign operations 3,082 5,191 (2,534) Fair value adjustment in relation to available-for-sale investments - (604) (2,441) ---------------------------------------- ------ ----------- ----------- ------------- Total other comprehensive income/(expense) for the period/year 3,082 4,587 (4,975) Total comprehensive (loss)/income for the period/year (471) 33,516 10,503 ---------------------------------------- ------------------- ----------- ------------- (Loss)/profit attributable to: Equity Holders of the parent (1,418) 30,829 18,856 Non-controlling interests (2,135) (1,900) (3,378) ---------------------------------------- ------------------- ----------- ------------- Total (3,553) 28,929 15,478 ---------------------------------------- ------------------- ----------- ------------- Total comprehensive (loss)/income attributable to: Equity holders of the parent 1,689 35,330 13,674 Non-controlling interests (2,160) (1,814) (3,171) ---------------------------------------- ------ ----------- ----------- ------------- Total (471) 33,516 10,503 ---------------------------------------- ------ ----------- ----------- ------------- (Loss)/earnings per share Basic and diluted (US cents) 8 (0.67) 14.54 8.89 ---------------------------------------- ------ ----------- ----------- -------------
*See Note 14
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
Unaudited Unaudited Audited
-------------------------------- ------
As at As at As at
30 June 30 June 31 December
--------------------------------
2017 2016 2016
Notes US$'000 US$'000 US$'000
-------------------------------- ------ ---------- ------------ -------------
Non-current assets
Property, plant and equipment 701 806 743
Available-for-sale investments - 7,853 -
Intangible assets 5,602 7,123 7,081
Deferred tax assets 2,059 1,435 1,623
-------------------------------- ------ ---------- ------------ -------------
Total non-current assets 8,362 17,217 9,447
-------------------------------- ------ ---------- ------------ -------------
Current assets
Inventories 255,759 261,522 244,959
Trade and other receivables 11,429 13,101 11,571
Prepayments 381 591 1,093
Current tax assets 814 1,234 660
Cash and cash equivalents 18,006 124,076 26,650
-------------------------------- ------ ---------- ------------ -------------
Total current assets 286,389 400,524 284,933
-------------------------------- ------ ---------- ------------ -------------
TOTAL ASSETS 294,751 417,741 294,380
-------------------------------- ------ ---------- ------------ -------------
Equity
Share capital 10,601 10,601 10,601
Share premium 208,925 218,926 218,926
Capital redemption reserve 1,899 1,899 1,899
Translation reserve (26,036) (21,296) (29,142)
Fair value reserve - 1,837 -
Accumulated losses (60,350) (46,949) (58,922)
-------------------------------- ------ ---------- ------------ -------------
Shareholders' equity 135,039 165,018 143,362
Non-controlling interests (3,141) 209 (1,148)
-------------------------------- ------ ---------- ------------ -------------
Total equity 131,898 165,227 142,214
-------------------------------- ------ ---------- ------------ -------------
Non-current liabilities
Loans and borrowings 9 44,245 54,363 46,405
Medium term notes 10 - 10,989 -
-------------------------------- ------ ---------- ------------ -------------
Total non-current liabilities 44,245 65,352 46,405
-------------------------------- ------ ---------- ------------ -------------
Current liabilities
Trade and other payables 64,604 48,003 53,880
Amount due to non-controlling
interests 12,984 13,234 12,573
Loans and borrowings 9 10,814 8,549 10,807
Medium term notes 10 27,720 115,142 26,343
Current tax liabilities 2,486 2,234 2,158
-------------------------------- ------ ---------- ------------ -------------
Total current liabilities 118,608 187,162 105,761
-------------------------------- ------ ---------- ------------ -------------
Total liabilities 162,853 252,514 152,166
-------------------------------- ------ ---------- ------------ -------------
TOTAL EQUITY AND LIABILITIES 294,751 417,741 294,380
-------------------------------- ------ ---------- ------------ -------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 JuNE 2017 - Unaudited
Total Equity
Attributable
to Equity
Redeemable Capital Fair Holders Non-
Ordinary Management Share Redemption Translation Value Accumulated of the Controlling Total
Shares Shares Premium Reserve Reserve Reserve Losses Parent Interests Equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
----------------- ------------ ----------- --------- ------------ ------------- --------- ------------- ------------- ------------- ---------
1 January 2017 10,601 - * 218,926 1,899 (29,142) - (58,922) 143,362 (1,148) 142,214
Purchase of own
shares - - (10,001) - - - - (10,001) - (10,001)
Changes in
ownership
interests in
subsidiaries - - - - - - (10) (10) 10 -
Non-controlling
interests
contribution - - - - - - - - 158 158
------------ ----------- --------- ------------ ------------- --------- ------------- ------------- ------------- ---------
Loss for the
period - - - - - - (1,418) (1,418) (2,136) (3,554)
Total other
comprehensive
income - - - - 3,106 - - 3,106 (25) 3,081
------------ ----------- --------- ------------ ------------- --------- ------------- ------------- ------------- ---------
Total
comprehensive
loss - - - - 3,106 - (1,418) 1,688 (2,161) (473)
Shareholders'
equity
at 30 June 2017 10,601 - * 208,925 1,899 (26,036) - (60,350) 135,039 (3,141) 131,898
================= ============ =========== ========= ============ ============= ========= ============= ============= ============= =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 JuNE 2016 - Unaudited
Total Equity
Attributable
to Equity
Capital Fair Holders Non-
Share Share Redemption Translation Value Accumulated of the Controlling Total
Capital Premium Reserve Reserve Reserve Losses Parent Interests Equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
----------------- --------- --------- ------------ ------------- --------- ------------- ------------- ------------- ---------
1 January 2016 10,601 218,926 1,899 (26,401) 2,441 (77,301) 130,165 1,433 131,598
Changes in
ownership
interests in
subsidiaries - - - - - (477) (477) 477 -
Non-controlling
interests
contribution - - - - - - - 113 113
--------- --------- ------------ ------------- --------- ------------- ------------- ------------- ---------
Profit for the
period - - - - - 30,829 30,829 (1,900) 28,929
Total other
comprehensive
income - - - 5,105 (604) - 4,501 86 4,587
--------- --------- ------------ ------------- --------- ------------- ------------- ------------- ---------
Total
comprehensive
profit - - - 5,105 (604) 30,829 35,330 (1,814) 33,516
Shareholders'
equity
at 30 June 2016 10,601 218,926 1,899 (21,296) 1,837 (46,949) 165,018 209 165,227
================= ========= ========= ============ ============= ========= ============= ============= ============= =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 DECEMBER 2016 - audited
Total Equity
Attributable
to Equity
Redeemable Capital Fair Holders Non-
Ordinary Management Share Redemption Translation Value Accumulated of the Controlling Total
Shares Shares Premium Reserve Reserve Reserve Losses Parent Interests Equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
----------------- ------------ ----------- --------- ------------ ------------- --------- ------------- ------------- ------------- ---------
At 1 January
2016 10,601 - 218,926 1,899 (26,401) 2,441 (77,301) 130,165 1,433 131,598
Changes in
ownership
interests in
subsidiaries - - - - - - (477) (477) 477 -
Non-controlling
interests
contribution - - - - - - - - 113 113
------------ ----------- --------- ------------ ------------- --------- ------------- ------------- ------------- ---------
Profit for the
year - - - - - - 18,856 18,856 (3,378) 15,478
Total other
comprehensive
expense - - - - (2,741) (2,441) - (5,182) 207 (4,975)
------------ ----------- --------- ------------ ------------- --------- ------------- ------------- ------------- ---------
Total
comprehensive
profit - - - - (2,741) (2,441) 18,856 13,674 (3,171) 10,503
Shareholders'
equity
at 31 December
2016 10,601 -* 218,926 1,899 (29,142) - (58,922) 143,362 (1,148) 142,214
================= ============ =========== ========= ============ ============= ========= ============= ============= ============= =========
CONSOLIDATED STATEMENT OF CASH FLOWS
SIX MONTHSED 30 JUNE 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
Restated*
---------------------------------------------- ----------- ----------- ---------------
Cash Flows from Operating Activities
Net (loss)/profit before taxation (3,282) 29,156 16,164
Finance income (52) (274) (401)
Finance costs 2,377 5,763 9,616
Unrealised foreign exchange (gain)/loss (1,261) 596 4,939
Write down/Impairment of goodwill 1,479 110 152
Depreciation of property, plant
and equipment 43 51 98
Gain on disposal of available-for-sale
investments - (493) (2,285)
Gain on disposal of property, plant
and equipment - (5) (5)
Operating (loss)/profit before changes
in working capital (696) 34,904 (28,278)
Changes in working capital:
(Increase)/decrease in inventories (7,874) 60,525 55,303
Decrease in trade and other receivables
and prepayments 383 2,724 6,103
Increase in trade and other payables 10,302 10,324 15,426
---------------------------------------------- ----------- ----------- -------------
Cash generated from operations 2,115 108,477 105,110
Interest paid (2,377) (5,763) (9,616)
Tax paid (455) (10) (318)
---------------------------------------------- ----------- ----------- -------------
Net cash (used in) /from operating
activities (717) 102,704 (95,176)
---------------------------------------------- ----------- ----------- -------------
Cash Flows From Investing Activities
Proceeds from disposal of available-for-sale
Investments (iii) 893 2,040 8,955
Proceeds from disposal of property,
plant and
equipment - 5 5
Finance income received 52 274 401
---------------------------------------------- ----------- ----------- -------------
Net cash from investing activities 945 2,319 9,361
---------------------------------------------- ----------- ----------- -------------
* see Note 14
CONSOLIDATED STATEMENT OF CASH FLOWS (CONT'D)
SIX MONTHSED 30 JUNE 2017
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
Restated*
--------------------------------------------- ----------- ----------- --------------
Cash Flows From Financing Activities
Advances from non-controlling interests 205 2,875 2,819
Issuance of ordinary shares of subsidiaries
to non-controlling interests (ii) 158 113 113
Payment of finance lease liabilities (3) - -
Purchase of own shares (10,001) - -
Repayment of loans and borrowings (216) (7,882) (104,880)
Drawdown of loans and borrowings 176 262 1,571
Increase in pledged deposits placed
in licensed banks (183) (689) (698)
--------------------------------------------- ----------- ----------- --------------
Net cash used in financing activities (9,864) (5,321) (101,075)
--------------------------------------------- ----------- ----------- --------------
Net changes in cash and cash equivalents
during the period/year (9,636) 99,702 3,462
Effect of changes in exchange rates 506 227 (155)
Cash and cash equivalents at the
beginning of the period/year (i) 16,639 13,332 13,332
--------------------------------------------- ----------- ----------- --------------
Cash and cash equivalents at the
end of the period/year (i) 7,509 113,261 16,639
--------------------------------------------- ----------- ----------- --------------
(i) Cash and Cash Equivalents
Cash and cash equivalents included in the consolidated statement
of cash flows comprise the following consolidated statement of financial
position amounts:
Cash and bank balances 5,940 9,560 14,858
Short term bank deposits 12,066 114,516 11,792
--------------------------------------------- ----------- ----------- --------------
18,006 124,076 26,650
Less: Deposits pledged (10,497) (10,815) (10,011)
--------------------------------------------- ----------- ----------- --------------
Cash and cash equivalents 7,509 113,261 16,639
--------------------------------------------- ----------- ----------- --------------
(ii) During the financial period/year, US$158,000 (30 June 2016: US$113,000; 31 December 2016: US$113,000) of ordinary shares of subsidiaries were issued to non-controlling shareholders, of which US$158,000 (30 June 2016: US$113,000; 31 December 2016: US$113,000) was satisfied via cash consideration
(iii) In 2016, the Group disposed the entire balance representing 9,784,653 shares in Nam Long for a consideration of US$9,848,000 of which US$8,955,000 was received. During the financial period ,the balance consideration recoverable of US$ 893,000 was received.
* see Note 14
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHSED 30 JUNE 2017
1 General Information
The principal activities of the Group are development of upscale residential and hospitality projects, sale of development land and operation of hotel, mall and hospital in Malaysia and Vietnam.
2 Summary of Significant Accounting Policies
2.1 Basis of Preparation
The interim condensed consolidated financial statements for the six months ended 30 June 2017 has been prepared in accordance with IAS 34, Interim Financial Reporting.
The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2016 which has been prepared in accordance with IFRS.
Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings.
The interim results have not been audited nor reviewed and do not constitute statutory financial statements.
The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.
The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2016 as described in those annual financial statements.
The interim report and financial statements were approved by the Board of Directors on 24 August 2017.
3 SegmentAL Information
The Group's assets and business activities are managed by Ireka Development Management Sdn. Bhd. ("IDM") as the Development Manager under a management agreement dated 27 March 2007.
Segmental information represents the level at which financial information is reported to the Executive Management of IDM, being the chief operating decision maker as defined in IFRS 8. The Executive Management consists of the Chief Executive Officer, the Chief Financial Officer, Chief Operating Officer and Chief Investment Officer of IDM. The management determines the operating segments based on reports reviewed and used by the Executive Management for strategic decision making and resource allocation. For management purposes, the Group is organised into project units.
The Group's reportable operating segments are as follows:
(i) Investment Holding Companies - investing activities;
(ii) Ireka Land Sdn. Bhd. - develops Tiffani ("Tiffani") by i-ZEN;
(iii) ICSD Ventures Sdn. Bhd. - owns and operates Harbour Mall Sandakan ("HMS") and Four Points by Sheraton Sandakan Hotel ("FPSS");
(iv) Amatir Resources Sdn. Bhd. - develops SENI Mont' Kiara ("SENI");
(v) Iringan Flora Sdn. Bhd. - owns and operates Aloft Kuala Lumpur Sentral Hotel ("AKLS"); sold in June 2016;
(vi) Urban DNA Sdn. Bhd.- develops The RuMa Hotel and Residences ("The Ruma"); and
(vii) Hoa Lam-Shangri-La Healthcare Group - master developer of International Healthcare Park ("IHP"); owns and operates the City International Hospital ("CIH").
Other non-reportable segments comprise the Group's other development projects. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2017 and 2016.
Information regarding the operations of each reportable segment is included below. The Executive Management monitors the operating results of each segment for the purpose of performance assessments and making decisions on resource allocation. Performance is based on segment gross profit/(loss) and profit/(loss) before taxation, which the Executive Management believes are the most relevant in evaluating the results relative to other entities in the industry. Segment assets presented inclusive of inter-segment balances and inter-segment pricing is determined on an arm's length basis.
The Group's revenue generating development projects are in Malaysia and Vietnam.
Operating Segments - ended 30 June 2017 - Unaudited
Hoa
Investment Ireka Land ICSD Ventures Amatir Urban Lam-Shangri-La
Holding Sdn. Bhd. Sdn. Bhd. Resources DNA Healthcare
Companies Sdn. Bhd. Sdn. Bhd. Group Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
---------------- ------------- ------------- --------------- ------------ ------------ --------------- --------
Segment
(loss)/profit
before
taxation 226 (141) (961) 273 (676) (1,947) (3,226)
================ ============= ============= =============== ============ ============ =============== ========
Included in the
measure
of segment
profit/(loss)
are:
Revenue - - - 4,002 - 5,377 9,379
Revenue from
hotel
operations - - 1,777 - - - 1,777
Revenue from
mall
operations - - 667 - - - 667
Revenue from
hospital
operations - - - - - 3,503 3,503
Cost of
acquisition
written
down # - - - (807) - - (807)
Impairment of
goodwill - - - (44) - (1,435) (1,479)
Marketing
expenses - - - (6) (164) - (170)
Expenses from
hotel
operations - - (1,917) - - - (1,917)
Expenses from
mall
operations - - (782) - - - (782)
Expenses from
hospital
operations - - - - - 4,869 4,869
Depreciation of
property,
plant and
equipment - - - - - (43) (43)
Finance costs - - (729) - - (1,648) (2,377)
Finance income 8 1 2 8 13 20 52
================ ============= ============= =============== ============ ============ =============== ========
Segment assets 1,202 1,910 79,310 16,393 82,016 94,988 275,819 Included in the measure of segment assets are: Addition to non-current assets other than financial instruments and deferred tax assets - - - - - - - ================ ============= ============= =============== ============ ============ =============== ========
# Cost of acquisition relates to the fair value adjustment in relation to the inventories upon the acquisition of certain subsidiaries of the Group. The cost of acquisition written down is charged to profit or loss as part of cost of sales upon the sales of these inventories.
Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items
Profit or loss US$'000 ------------------------------------ -------- Total loss for reportable segments (3,226) Other non-reportable segments (56) Depreciation - Finance costs - Finance income - Consolidated loss before taxation (3,282) ==================================== ========
Operating Segments - ended 30 June 2016 - Unaudited (Restated)
Hoa
Investment Ireka ICSD Amatir Iringan Urban Lam-Shangri-La
Holding Land Ventures Resources Flora DNA Healthcare
Companies Sdn. Sdn. Sdn. Bhd. Sdn. Sdn. Bhd. Group Total
Bhd. Bhd. Bhd.
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
--------------- ------------ ---------- ---------- ----------- ---------- ----------- --------------- --------
Segment
(loss)/profit
before
taxation (1,061) 209 (2,323) (76) 37,090 (358) (4,260) 29,221
=============== ============ ========== ========== =========== ========== =========== =============== ========
Included in
the measure
of segment
(loss)/profit
are:
Revenue - 1,002 - 2,871 103,878 - 411 108,162
Revenue from
hotel
operations - - 1,570 - 8,954 - - 10,524
Revenue from
mall
operations - - 470 - - - - 470
Revenue from
hospital
operations - - - - - - 2,694 2,694
Cost of
acquisition
writtendown
# - (81) - (690) - - - (771)
Impairment of
goodwill - - - (37) - - (73) (110)
Marketing
expenses - - - (1) - (78) - (79)
Expenses from
hotel
operations - - (1,873) - (5,845) - - (7,718)
Expenses from
mall
operations - - (630) - - - - (630)
Expenses from
hospital
operations - - - - - - (5,075) (5,075)
Depreciation
of property,
plant and
equipment - - (3) - (3) - (45) (51)
Finance costs - - (1,905) - (2,000) - (1,777) (5,682)
Finance income 45 1 134 3 2 2 23 210
=============== ============ ========== ========== =========== ========== =========== =============== ========
Segment assets 21,589 5,032 94,535 28,957 71,207 59,260 98,725 379,305
Included in
the measure
of segment
assets are:
Addition to
non-current
assets other
than
financial
instruments
and deferred
tax assets - - - - - - - -
=============== ============ ========== ========== =========== ========== =========== =============== ========
# Cost of acquisition relates to the fair value adjustment in relation to the inventories upon the acquisition of certain subsidiaries of the Group. The cost of acquisition written down is charged to profit or loss as part of cost of sales upon the sales of these inventories.
Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items
Profit or loss US$'000 -------------------------------------- -------- Total profit for reportable segments 29,221 Other non-reportable segments (48) Depreciation - Finance costs (81) Finance income 64 Consolidated profit before taxation 29,156 ====================================== ========
Operating Segments - ended 31 December 2016 - Audited
Ireka ICSD Iringan Hoa
Investment Land Sdn. Ventures Amatir Flora Urban Lam-Shangri-La
Holding Bhd. Sdn. Bhd. Resources Sdn. DNA Healthcare
Companies Sdn. Bhd. Bhd. Sdn. Bhd. Group Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
-------------- ------------ ----------- ----------- ----------- -------- ----------- --------------- ---------
Segment
profit/
(loss)
before
taxation (4,410) 135 (6,237) 515 37,223 (1,338) (9,359) 16,529
============== ============ =========== =========== =========== ======== =========== =============== =========
Included in
the measure
of
segment
profit/
(loss) are:
Revenue - 1,306 - 6,529 104,289 - 411 112,535
Revenue from
hotel
operations - - 3,435 - 8,762 - - 12,197
Revenue from
mall
operations - - 1,041 - - - - 1,041
Revenue from
hospital
operations - - - - - - 5,754 5,754
Impairment of
inventory * - - (2,408) - - - - (2,408)
Write down of
intangible
assets - - - (79) - - (73) (152)
Marketing
expenses - - - - - (193) - (193)
Expenses from
hotel
operations - - (3,763) - (5,719) - - (9,482)
Expenses from
mall
operations - - (1,399) - - - - (1,399)
Expenses from
hospital
operations - - - - - - (9,039) (9,039)
Depreciation
of property,
plant and
equipment - - (6) - (3) - (89) (98)
Finance costs - - (2,992) - (1,957) - (4,363) (9,312)
Finance
income 57 2 258 9 2 7 66 401
============== ============ =========== =========== =========== ======== =========== =============== =========
Segment
assets 12,160 1,843 76,174 18,722 - 69,618 97,833 276,350
Included in
the measure
of
segment
assets are:
Addition to
non-current
assets
other than
financial
instruments
and deferred
tax assets - - - - - - - -
============== ============ =========== =========== =========== ======== =========== =============== =========
* The amount relates to impairment of FPSS as the recoverable amount, estimated based on its net realisable value, is below its carrying amount
Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items
Profit or loss US$'000
-------------------------------------- --------
Total profit for reportable segments 16,529
Other non-reportable segments (61)
Finance income (304)
Consolidated profit before taxation 16,164
====================================== ========
30 June 2017 - Unaudited Addition to
US$'000 non-current
Revenue Depreciation Finance costs Finance income Segment assets assets
-------------------------- -------- ------------- -------------- --------------- --------------- -------------
Total reportable segment 9,379 (43) (2,377) 52 275,819 -
Other non-reportable
segments - - - - 18,932 -
-------------------------- -------- ------------- -------------- --------------- --------------- -------------
Consolidated total 9,379 (43) (2,377) 52 294,751 -
========================== ======== ============= ============== =============== =============== =============
30 June 2016 - Unaudited
US$'000
(Restated) Addition to
non-current
Revenue Depreciation Finance costs Finance income Segment assets assets
-------------------------- -------- ------------- -------------- --------------- --------------- -------------
Total reportable segment 108,162 (51) (5,682) 210 294,778 -
Other non-reportable
segments - - (81) 64 122,963 -
-------------------------- -------- ------------- -------------- --------------- --------------- -------------
Consolidated total 108,162 (51) (5,763) 274 417,741 -
========================== ======== ============= ============== =============== =============== =============
31 December 2016 - Audited Addition to
US$'000 non-current
Revenue Depreciation Finance costs Finance income Segment assets assets
--------------------------- --------- ------------- -------------- --------------- --------------- -------------
Total reportable segment 112,535 (98) (9,312) 401 276,350 -
Other non-reportable
segments - - (304) - 18,030 -
--------------------------- --------- ------------- -------------- --------------- --------------- -------------
Consolidated total 112,535 (98) (9,616) 401 294,380 -
=========================== ========= ============= ============== =============== =============== =============
Geographical Information - ended 30 June 2017 - Unaudited
Malaysia Vietnam Consolidated
US$'000 US$'000 US$'000
-------------------- --------- -------- -------------
Revenue 4,002 5,377 9,379
Non-current assets 2,751 5,611 8,362
==================== ========= ======== =============
Included in the revenue of the Group for financial period ended 30 June 2017 is proceeds for the sale of a plot of land (D2) at International Healthcare Park.
For the financial period ended 30 June 2017, one customer exceeded 10% of the Group's total revenue as follows:
US$'000 Segments
---------------------------- -------------- -------------------
Tien Phat Consultancy Ho Lam Shangri-La
Investment Company Limited 5,377 Healthcare Group
============================ ============== ===================
Geographical Information - ended 30 June 2016 - Unaudited (Restated)
Malaysia Vietnam Consolidated
US$'000 US$'000 US$'000
-------------------- --------- -------- -------------
Revenue 107,751 411 108,162
Non-current assets 2,216 15,001 17,217
==================== ========= ======== =============
For the financial period ended 30 June 2016, no single customer exceeded 10% of the Group's total revenue.
Geographical Information - ended 31 December 2016 - Audited
Malaysia Vietnam Consolidated
US$'000 US$'000 US$'000
-------------------- --------- -------- -------------
Revenue 112,124 411 112,535
Non-current assets 2,359 7,088 9,447
==================== ========= ======== =============
Included in the revenue of the Group for the financial year ended 31 December 2016 is proceeds from the sale of Aloft Kuala Lumpur Sentral Hotel and a plot of land (GD1) at International Healthcare Park.
For the year ended 31 December 2016, one customer exceeded 10% of the Group's total revenue as follows:
US$'000 Segments
----------------------- -------------- ---------------
Prosper Group Holdings Iringan Flora
Limited 104,289 Sdn Bhd
======================= ============== ===============
4 Seasonality
The Group's business operations are not materially affected by seasonal factors for the period
under review.
5 Cost of Sales
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
Restated
--------------------------------- ----------- ----------- ------------------
Direct costs attributable to:
Completed units 3,252 70,720 74,796
Sales of land held for property
development 2,511 191 191
Impairment of inventory - - 2,408
Impairment of intangible assets 1,479 110 152
--------------------------------- ----------- ----------- ------------------
7,242 71,021 77,547
--------------------------------- ----------- ----------- ------------------
Included in the cost of sales of the Group for the financial period ended 30 June 2017 is expenses related to the sale of a plot of land (D2) at IHP. (30 June 2016 and 31 December 2016: Sale of AKLS and a plot of land (GD1) at the International Healthcare Park )
6 Foreign exchange (loss)/GAIN
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
----------------------------------------- ----------- ----------- -------------
Foreign exchange gain/(loss)comprises:
Realised foreign exchange (loss)/gain (28) 19 (112)
Unrealised foreign exchange gain/(loss) 1,261 (596) (4,939)
1,233 (577) (5,051)
----------------------------------------- ----------- ----------- -------------
7 Taxation
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
--------------------------------------- ----------- ----------- --------------
Current tax expense 628 238 1,058
Deferred tax credit (357) (11) (372)
--------------------------------------- ----------- ----------- --------------
Total tax expense for the period/year 271 227 686
--------------------------------------- ----------- ----------- --------------
The numerical reconciliation between the income tax expense and the product of accounting results multiplied by the applicable tax rate is computed as follows:
Unaudited Unaudited Audited
Six months Six months Year
ended ended Ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
--------------------------------------- ----------- ----------- -------------
Net (loss)/profit before taxation (3,277) 29,156 16,164
--------------------------------------- ----------- ----------- -------------
Income tax at a rate of 24% (30
June 2016: 24%;
31 December 2016: 24%) (786) 6,997 3,879
Add :
Tax effect of expenses not deductible
in determining taxable profit 1,552 2,756 6,854
Current year losses and other tax
benefits for which no deferred tax
asset was recognised 1,939 1,149 2,029
Tax effect of different tax rates
in subsidiaries 634 837 1,521
Less :
Tax effect of income not taxable
in determining taxable profit (3,068) (11,512) (13,841)
Over provision in respect of prior
period/year - - 244
--------------------------------------- ----------- ----------- -------------
Total tax expense for the period/year 271 227 686
--------------------------------------- ----------- ----------- -------------
The applicable corporate tax rate in Malaysia is 24%.
The Company is treated as a tax resident of Jersey for the purpose of Jersey tax laws and is subject to a tax rate of 0%.
The applicable corporate tax rates in Singapore and Vietnam are 17% and 20% respectively.
A subsidiary of the Group, CIH is granted preferential corporate tax rate of 10% for the results of the hospital operations. The preferential income tax is given by the government of Vietnam due to the subsidiary's involvement in the healthcare industry.
A Goods and Services Tax was introduced in Jersey in May 2008. The Company has been registered as an International Services Entity so it does not have to charge or pay local GST. The cost for this registration is GBP200 per annum.
The Directors intend to conduct the Group's affairs such that the central management and control is not exercised in the United Kingdom and so that neither the Company nor any of its subsidiaries carries on any trade in the United Kingdom. The Company and its subsidiaries will thus not be residents in the United Kingdom for taxation purposes. On this basis, they will not be liable for United Kingdom taxation on their income and gains other than income derived from a United Kingdom source.
8 (LOSS)/EARNINGS Per Share
Basic and diluted (loss)/earnings per ordinary share
The calculation of basic and diluted (loss)/earnings per ordinary share for the period/year ended was based on the (loss)/profit attributable to equity holders of the parent and a weighted average number of ordinary shares outstanding, calculated as below:
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
----------------------------------- ----------------- ------------------ -------------
(Loss)/earnings attributable
to equity holders of the parent (1,418) 30,829 18,856
Weighted average number of shares 212,025 212,025 212,025
(Loss)/earnings per share
Basic and diluted (US cents) 0.67 14.54 8.89
----------------------------------- ----------------- ------------------ -------------
9 Loans and Borrowings
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
--------------------------- ---------- ---------- -------------
Non-current
Bank loans 44,245 54,362 46,405
Finance lease liabilities - 1 -
--------------------------- ---------- ---------- -------------
44,245 54,363 46,405
--------------------------- ---------- ---------- -------------
Current
Bank loans 10,814 8,545 10,804
Finance lease liabilities - 4 3
---------------------------- ---------- ---------- -------------
10,814 8,549 10,807
--------------------------- ---------- ---------- -------------
55,059 62,912 57,212
--------------------------- ---------- ---------- -------------
The effective interest rates on the bank loans and finance lease arrangement for the period ranged from 5.25% to 12.50% (30 June 2016: 5.00% to 12.50%; 31 December 2016: 5.25% to 12.50%) per annum and 2.50% (30 June 2016: 2.50%; 31 December 2016: 2.50%) per annum respectively.
Borrowings are denominated in Malaysian Ringgit, United States Dollars and Vietnamese Dong.
Bank loans are repayable by monthly, quarterly or semi-annually instalments.
Bank loans are secured by land held for property development, work-in-progress, operating assets of the Group, pledged deposits and some by the corporate guarantee of the Company.
Finance lease liabilities are payable as follows:
Present value
Future minimum of minimum
lease payment lease payment
30 June Interest 30 June
2017 30 June 2017
Unaudited US$'000 2017 US$'000 US$'000
--------------------------- --------------- -------------- ---------------
Within one year - - -
Between one and five years - - -
--------------------------- --------------- -------------- ---------------
- - -
--------------------------- --------------- -------------- ---------------
Present value
of minimum
Future minimum lease payment
lease payment Interest 30 June
30 June 30 June 2016
Unaudited 2016 US$'000 2016 US$'000 US$'000
---------------------------- --------------- -------------- ---------------
Within one year 5 1 4
Between one and five years 1 - 1
---------------------------- --------------- -------------- ---------------
6 1 5
---------------------------- --------------- -------------- ---------------
Present value
of minimum
Future minimum Interest lease payment
lease payment 31 December 31 December
31 December 2016 2016
Audited 2016 US$'000 US$'000 US$'000
---------------------------- --------------- ------------- -------------------------
Within one year 3 - 3
Between one and five years - - -
---------------------------- --------------- ------------- -------------------------
3 - 3
---------------------------- --------------- ------------- -------------------------
10 Medium Term Notes
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
----------------------------------- ---------- ---------- ------------
Outstanding medium term notes 27,948 127,472 26,748
Net transaction costs (228) (1,341) (405) Less: Repayment due within twelve months* (27,720) (115,142) (26,343) ----------------------------------- ---------- ---------- ------------ Repayment due after twelve months - 10,989 - ----------------------------------- ---------- ---------- ------------
* Includes net transaction costs in relation to medium term notes due within twelve months
US$0.61 million.
The medium term notes ("MTNs") were issued pursuant to a programme with a tenure of ten (10) years from the first issue date of the notes. The MTN were issued by a subsidiary, to fund two development projects known as Sandakan Harbour Square and Aloft Kuala Lumpur Sentral Hotel in Malaysia. US$57.1 million (RM245.0 million) was drawn down in 2011 for Sandakan Harbour Square. US$3.50 million (RM15.0 million) was drawn down in 2012 for Aloft Kuala Lumpur Sentral Hotel and the remaining US$59.2 million (RM254.0 million) in 2013.
In 2016, the Group completed the sale of the AKLS. The net adjusted price for the sale of AKLS, which includes the sale of the entire issued share capital of ASPL M3B Limited and Iringan Flora Sdn. Bhd is approximately US$104.3 million. Proceeds received from the sale of AKLS were used to redeem the MTNs Series 2 and Series 3. Following the completion of the disposal of AKLS, US$91.8 million (RM394.0 million) of MTNs associated with the AKLS (Series 3) and the FPSS (Series 2) was repaid on 19 August 2016. The charges in respect of AKLS was also discharged following the completion of the disposal. Subsequent to the repayment of MTNs Series 2 and Series 3, MTNs Series 1 of US$27.95 million (RM120.0 million) remained. The Group secured a rollover of US$17.5 million (RM75.0 million) on 7 December 2016 to expire on 8 December 2017.
No repayments were made in the current financial period.
The weighted average interest rate of the MTN was 5.93% per annum at the statement of financial position date. The effective interest rates of the MTN and their outstanding amounts are as follows:
Interest rate
Maturity Dates % per annum US$'000
------------------------------- ------------------- -------------- ----------
Series 1 Tranche FG 003 8 December 2017 5.90 5,823
Series 1 Tranche BG 003 8 December 2017 5.85 4,658
Series 1 Tranche FG 004 8 December 2017 6.00 10,480
Series 1 Tranche BG 004 8 December 2017 5.90 6,987
27,948
------------------------------- ---------------------------------- ----------
The medium term notes are secured by way of:
(i) bank guarantee from two financial institutions in respect of the BG Tranches;
(ii) financial guarantee insurance policy from Danajamin Nasional Berhad ("Danajamin") in respect to the FG Tranches;
(iii) a first fixed and floating charge over the present and future assets and properties of Silver Sparrow Berhad and ICSD Ventures Sdn. Bhd. by way of a debenture;
(iv) a third party first legal fixed charge over ICSD Ventures Sdn. Bhd.'s assets and
land;
(v) a corporate guarantee by Aseana Properties Limited;
(vi) letter of undertaking from Aseana Properties Limited to provide financial and other forms of support to ICSD Ventures Sdn. Bhd. to finance any cost overruns associated with the development of the Sandakan Harbour Square;
(vii) assignment of all its present and future rights, interest and benefits under the ICSD Ventures Sdn. Bhd.'s Put Option Agreements in favor of Danajamin, Malayan Banking Berhad and OCBC Bank (Malaysia) Berhad (collectively as "the guarantors") where once exercised, the sale and purchase of HMS and FPSS shall take place in accordance with the provision of the Put Option Agreement; and the
proceeds from HMS and FPSS will be utilised to repay the MTNs;
(viii) assignment over the disbursement account, revenue account, operating account, sale proceed account, debt service reserve account and sinking fund account of Silver Sparrow Berhad; revenue account of ICSD Venture Sdn. Bhd. and escrow account of Ireka Land Sdn. Bhd.;
(ix) assignment of all ICSD Ventures Sdn. Bhd's present and future rights, title, interest and benefits in and under the insurance policies; and
(x) a first legal charge over all the shares of Silver Sparrow Berhad, ICSD Ventures Sdn. Bhd. and any dividends, distributions and entitlements.
11 Related Party Transactions
Transactions between the Group with Ireka Corporation Berhad ("ICB") and its group of companies are classified as related party transactions based on ICB's 23.07% shareholding in the Company.
Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel includes all the Directors of the Group, and certain members of senior management of the Group.
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
------------------------------------- ----------- ----------- -------------
ICB Group of Companies
Accounting and financial reporting
services fee charged by an ICB
subsidiary 25 25 50
Advance payment to the contractors
of an ICB subsidiary 943 947 1,591
Construction progress claims
charged by an ICB subsidiary 6,751 4,359 9,960
Acquisition of Tiffani by i-Zen
unit by an ICB subsidiary - 508 -
Management contractor services
charged by an ICB subsidiary - 55 -
Management fees charged by an
ICB subsidiary 1,534 1,409 3,331
Marketing commission charged
by an ICB subsidiary 53 154 248
Project management fees charged
by an ICB subsidiary - 31 -
Project staff costs reimbursed
to an ICB subsidiary - 70 2
Rental expenses paid on behalf
of ICB 253 252 493
Secretarial and administrative
services fee charged by an ICB
subsidiary 25 25 50
Key management personnel
Remuneration of key management
personnel - Directors' fees 135 159 297
Remuneration of key management
personnel - Salaries 70 22 123
------------------------------------- ----------- ----------- -------------
Transactions between the Group with other significant related parties are as follows:
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
--------------------------------- ----------- ----------- -------------
Non-controlling interests
Advances - non-interest bearing 205 2,875 2,819
The above transactions have been entered into in the normal course of business and have been established under negotiated terms.
The outstanding amounts due from/ (to) ICB and its group of companies as at 30 June 2017, 30 June 2016 and 31 December 2016 are as follows:
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2017 2016 2016
Note US$'000 US$'000 US$'000
----------------------------------- -------- ---------- ---------- -------------
Amount due from an ICB subsidiary
for advance payment to its
contractors (ii) 3,993 2,566 2,903
Amount due to an ICB subsidiary
for construction progress
claims charged (i) (20) (821) (928)
Amount due from an ICB subsidiary
for acquisition of SENI Mont'
Kiara units (i) 2,012 1,959 1,760
Amount due from an ICB subsidiary
for acquisition of Tiffani (i) - 376 -
by i-Zen unit
Amount due to an ICB subsidiary
for management contractor (ii) - (55) -
services
Amount due from/(to) an ICB
subsidiary for management
fees (ii) - 161 (22)
Amount due to an ICB subsidiary
for marketing commissions (ii) (28) (28) (13)
Amount due to ICB subsidiary for project management fees (ii) - (32) - Amount due to ICB subsidiary for reimbursement of project staff costs (ii) (26) (9) - Amount due from ICB for rental expenses paid on behalf (ii) 328 1,760 114 ----------------------------------- -------- ---------- ---------- -------------
(i) These amounts are trade in nature and subject to normal trade terms.
(ii) These amounts are non-trade in nature and are unsecured, interest-free and repayable on demand.
The outstanding amounts due from/ (to) the other significant related parties as at 30 June 2017, 30 June 2016 and 31 December 2016 are as follows:
Unaudited Unaudited Audited
As at As at As at
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
--------------------------------- ---------- ---------- -------------
Non-controlling interests
Advances - non-interest bearing (12,984) (13,234) (12,573)
--------------------------------- ---------- ---------- -------------
Transactions between the parent company and its subsidiaries are eliminated in these consolidated financial statements.
12 Dividends
The Company has not paid or declared any dividends during the financial period ended 30 June 2017.
13 EVENT AFTER THE STATEMENT OF FINANCIAL POSITION DATE
Subsequent to 30 June 2017, following the recent capital calls, Aseana increased its equity interest in Shangri-La Healthcare Investment Pte Ltd ("SHIPL") to 81.58% arising from an issue of new shares in the subsidiary for cash consideration of US$485,896. Consequently, the Company's effective equity interest in Hoa Lam - Shangri-La Healthcare Ltd Liability Co, City International Hospital Co Ltd, Hoa Lam - Shangri-La 3 Ltd Liability Co and Hoa Lam - Shangri-La 6 Ltd Liability Co, subsidiaries of SHIPL, increased to 72.41%.
Subsequent to 30 June 2017, Aseana disposed of a plot of land in International Healthcare Park through disposal of its entire interest in Hoa Lam Shangri-La Limited Liability Co 6 ("HLSL6"). The gross transaction value is approximately US$7,730,401 (VND175 billion). The condition precedent for the completion of the disposal is expected to complete in Quarter 3, 2017 when the shares are transferred to the purchaser.
14 prior period restatement
In the previous financial period, the Group entered into a sale and purchase agreement to dispose of Aloft Kuala Lumpur Sentral Hotel ("AKLS") to Prosper Group Holdings Limited
for a net adjusted price of US$104.3 million through disposal of the entire issued share
capital of ASPL M3B Limited and Iringan Flora Sdn. Bhd.
As the Group is principally a property developer, the disposal of ASPL M3B Limited and Iringan Flora Sdn. Bhd. represents a disposal of the AKLS. Accordingly, the Group has more appropriately reflected the disposal of ASPL M3B Limited and Iringan Flora Sdn. Bhd. as a disposal of the Group's inventory, thus reflecting the transaction as revenue from sale of the inventory with the relevant costs being recognised as its cost of sales, instead of gain on disposal of a subsidiary which was reflected in the previous period's financial statements.
The cash generated from Operating profit/(loss) before changes in working capital has been adjusted by the gain on disposal of subsidiary of US$36,308,000, this has now been reflected into changes in working capital in net cash from operating activities rather than Operating profit/(loss) before changes in working capital as previously stated. The operating cash flows have been adjusted by the net cash outflows on disposal, which was made up of proceeds received in June 2016 (US$102,003,000), offset by the cash and cash equivalents disposed of (US$550,000), this has been reflected in net cash from operating activities rather than net cash from investing activities as previously stated.
The effects of restatement are disclosed below:
Unaudited
Unaudited Previously
Restated Stated
As at As at
30 June 30 June
2016 2016
US$'000 US$'000
----------------------------------------- ---------- ------------
Consolidated statement of comprehensive
income
Revenue 108,162 3,873
Cost of sales 71,021 3,040
Other income 14,971 51,279
========== ============
Consolidated statement of cash flows
Operating profit/(loss) before changes
in working capital 34,904 (1,404)
Cash generated from operations (before
interest and tax paid) 108,477 7,024
Net cash used in operating activities 102,704 1,251
Net cash from investing activities 2,319 103,772
========== ============
The comparatives in notes 3 and 5 to the financial statements were restated to reflect the above.
The restatement had no impact on the profit for the financial period/year or the total assets or total equity or net cash flow for any of the periods presented of the Group.
15 Interim Statement
Copies of this interim statement are available on the Company's website www.aseanaproperties.com or from the Company's registered office at 12 Castle Street, St. Helier, Jersey, JE2 3RT, Channel Islands.
Principal Risks and Uncertainties
The Board has overall responsibility for risk management and internal control. The following have been identified previously as the areas of principal risk and uncertainty facing the Company, and they remain relevant in the second half of the year.
-- Economic -- Strategic -- Regulatory -- Law and regulations -- Tax regimes -- Management and control -- Operational -- Financial -- Going concern
For greater detail, please refer to page 16 of the Company's Annual Report for 2016, a copy of which is available on the Company's website www.aseanaproperties.com.
RESPONSIBILITY STATEMENT
The Directors of the Company confirm that to the best of their knowledge that:
a) The condensed consolidated financial statements have been prepared in accordance with IAS 34 (Interim Financial Reporting);
b) The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
c) The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).
On behalf of the Board
Mohammed Azlan Hashim Christopher Henry Lovell Director Director
25 August 2017
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR USABRBAAWUAR
(END) Dow Jones Newswires
August 25, 2017 02:00 ET (06:00 GMT)
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