We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Walcom Group Limited | LSE:WALG | London | Ordinary Share | VGG574851074 | ORD HKD0.01 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.2025 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMWALG 18 September 2019 WALCOM GROUP LIMITED ("Walcom" or "the Company") Interim Results for the six months ended 30 June 2019 Walcom is pleased to announce its interim results for the six months ended 30 June 2019. Copies of the interim report will shortly be available on the Company's website at www.walcomgroup.com. Further enquiries: Walcom Group Limited +852 2494 0133 Francis Chi (Chief Executive Officer/Chief Financial Officer) Jessie Chan (Deputy Chief Financial Officer) Allenby Capital Limited +44 20 3328 5656 David Hart / Asha Chotai CHAIRMAN'S STATEMENT On behalf of the board of directors (the "Board"), I am pleased to present the Company's half-yearly results for the six months ended 30 June 2019. Introduction During the first half of 2019, the growth in the Chinese economy remained slow amid ongoing trade tensions with the United States and weakening global demand. The pig farming industry also suffered a significant setback due to the African Swine Fever ("ASF") outbreak which was first reported in China in August 2018. The ASF outbreak is yet to be contained and new cases are still being reported despite various measures by the Chinese government to contain its spread within the country including but not limited to the mass culling of pigs in affected areas and banning of long-distance, trans-region transportation of live pigs and pork products. As there is currently no treatment or vaccine, and the only way to stop the disease is to cull all affected or exposed swine herds, the swine herd population in China has decreased considerably since the outbreak. As a result, demand for the Group's products in China has reduced significantly resulting in a 55 per cent decrease in revenues compared with the same period last year. The Group incurred a loss per share for the period of HK Cents 4.73 compared with a loss per share of HK Cents 15.21 in the same period last year (the higher loss per share in 2018 is mainly due to a provision for doubtful debt of HK$7.9 million). Without the effects of the doubtful debt provision the loss per share for the same period in 2018 was HK Cents 3.23. Results for the Period The Group generated revenues of HK$8.7 million during the period (June 2018: HK$19.2 million) and gross profits of HK$4.1 million (June 2018: HK$10.5 million), representing a decrease of 55 per cent and 61 per cent respectively compared with the same period last year. Gross profit margins decreased by approximately 7.8 per cent to 47 per cent (June 2018: 55 per cent) mainly due to the higher per unit fixed costs as a result of lower production volumes and is partially offset by the effects of a stronger Hong Kong Dollar exchange rate against Renminbi. The average exchange rate of Hong Kong Dollar against Renminbi appreciated by approximately 6 per cent during the period under review compared with the same period last year. The Group incurred a net loss of HK$3.3 million compared to HK$10.1 million for the same period last year which included the effects of a doubtful debt provision of HK$7.9 million. At the EBITDA level, the Group recorded a higher loss of HK$3.29 million, an increase of 91 percent compared to the same period last year (June 2018: HK$1.72 million). Review of Activities and Market Turnover in China was HK$3.5 million, 66 per cent lower compared with the same period last year (June 2018: HK$10.2 million), mainly attributable to a 58 per cent decline in domestic sales volume and the impact of a stronger Hong Kong Dollar, which strengthened against the Renminbi by an average of 6 per cent during the period under review. The impact of ASF on the Group's performance has been severe as the demand for feedstuff from the Group's customers in China has declined significantly following the closure of farms and businesses impacted by ASF. Although the rate of infections has slowed down compared to the initial outbreak in August 2018 and despite various measures implemented by the Chinese government to contain the spread of ASF, new cases are still emerging around the country. The Group expects the ASF to continue to affect the pig farming industry for at least the next six months following which the Board is hopeful that pig producers will gradually start to restock and the increase in swine population will have positive impact on the Group's business. The Group is also actively working on increasing its customer base and penetration within the poultry feed sector and beef cattle sector with the hope that the Group will see the benefit of these efforts in the latter part of the year. The decline in sales revenue in China compared to the same period last year is also due loss of sales contribution from the Group's largest customer in China (June 2019: HK$nil; June 2018: HK$3.9 million) wherein the Group ceased business with this customer after unsuccessful attempts to recover outstanding debts. During the corresponding period in 2018, the Group made a provision for doubtful debts of HK$7.9 million in relation to this customer's outstanding trade receivables. The Group commenced legal proceedings against the customer in an effort to recover the debt and whilst the court ruled in favour of the Group in June 2019, the customer has since filed an appeal against the court's judgement. It remains unclear whether the overdue receivables will be recovered. The Group's overall overseas sales decreased by 42 per cent to HK$5.2 million compared with the same period last year (June 2018: HK$8.9 million). The decline is mainly due to the disposal of Walcom Bio-Chem (Thailand) Company Limited ("Walcom Thai") in March 2019 resulting in the non-consolidation of its results from the second quarter of 2019 onwards. Walcom Thai was disposed of to ease the Group's short-term working capital position, raising net proceeds of approximately HK$3.0 million which was received at the end of March 2019. Thailand remains an important market to the Group and subsequent to the disposal, Walcom Thai was appointed as the exclusive distributor of the Group's products. Sales to Thailand remained the main contributor, representing 81 per cent of the Group's overseas sales (June 2019: HK$4.2 million; June 2018: HK$8.1 million) while demand from the Korean market remained the same during the period under review with sales of HK$0.7 million (June 2018: HK$0.7 million). Outlook The Chinese economy continues to grow at a slower rate in the first half of 2019 amidst slower global economic growth, escalating trade tensions with the US and domestic downward pressure. Faced with a complex external environment and emerging downward pressure in the second half, China will continue to take coordinated steps to stabilize growth and undertake structural reforms to promote development in order to facilitate sustained and healthy development of the economy. It is expected that the macro-economic environment coupled with the impact of ASF on the pig industry will continue to affect the Group's operations in China in the second half of the year. Over the past 12 months the Company has made regular announcements in relation to the weak performance of the Group, which as a result of the aforementioned factors, has continued to place added pressure on the Group's working capital position. These announcements have also highlighted the impact on the Company and its shareholders if the working capital position cannot be resolved in the short term. The Board will continue to closely monitor the Group's working capital position and is in discussions regarding seeking additional funding arrangements to safeguard its liquidity. Frankie Y. L. Wong Chairman 18 September 2019 UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHSED 30 JUNE 2019 Note Unaudited Unaudited six months six months Audited ended ended year ended 30 June 2019 30 June 2018 31 December 2018 HK$ HK$ HK$ Revenue 3 8,713,318 19,163,440 34,691,030 Cost of sales (4,634,319) (8,697,989) (15,320,919) Gross profit 4,078,999 10,465,451 19,370,111 Other income 4 400,849 100,719 207,762 Research and development expenses (285,603) (881,279) (1,222,370) Selling and distribution expenses (2,734,959) (5,849,284) (16,589,116) General and administrative expenses (4,637,295) (13,630,612) (10,063,495) Loss from operations 5 (3,178,009) (9,795,005) (8,297,108) Net finance expenses 6 (107,336) (122,389) (268,616) Loss before income tax (3,285,345) (9,917,394) (8,565,724) Income tax refund / (expense) 7 8,378 (205,131) (919,124) Loss for the period / year (3,276,967) (10,122,525) (9,484,848) (Loss) / profit attributable to: Owners of the Company (3,252,648) (10,469,044) (10,253,282) Non-controlling interests (24,319) 346,519 768,434 Loss for the period / year (3,276,967) (10,122,525) (9,484,848) Loss per share - basic, HK cents 8 (4.73) (15.21) (14.90) (4.73) (15.21) (14.90) - diluted, HK cents
UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHSED 30 JUNE 2019 Note Unaudited Unaudited six months six months Audited ended ended year ended 30 June 2019 30 June 2018 31 December 2018 HK$ HK$ HK$ Loss for the period / year (3,276,967) (10,122,525) (9,484,848) Other comprehensive income Exchange difference on translation of financial statements of 175,170 (443,061) (1,701,349) overseas subsidiaries Total comprehensive loss for the period / year (3,101,797) (10,565,586) (11,186,197) Total comprehensive loss attributable to: Owners of the Company (3,195,158) (10,874,678) (11,965,901) Non-controlling interests 93,361 309,092 779,704 Total comprehensive loss for the period / year (3,101,797) (10,565,586) (11,186,197) UNAUDITED CONSOLIDATED BALANCE SHEET AT 30 JUNE 2019 Note Unaudited Unaudited Audited 30 June 2019 30 June 2018 31 December 2018 HK$ HK$ HK$ ASSETS NON-CURRENT ASSETS Property, plant and equipment 452,310 5,876,007 5,849,236 Patents 82,249 405,836 97,094 Goodwill - - - Deferred tax assets 575,845 1,072,500 575,845 1,110,404 7,354,343 6,522,175 CURRENT ASSETS Inventories 1,527,574 3,083,831 2,169,866 Trade and other receivables 10 1,433,758 3,968,541 4,085,775 Tax recoverable 316,151 464,357 210,263 Cash and cash equivalents 11 1,169,733 3,395,045 4,825,759 4,447,216 10,911,774 11,291,663 TOTAL ASSETS 5,557,620 18,266,117 17,813,838 EQUITY AND LIABILITIES EQUITY Share capital 12 688,344 688,344 688,344 Reserves (1,219,562) 3,156,840 2,065,617 TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (531,218) 3,845,184 2,753,961 Non-controlling interests - 3,213,527 3,203,016 CAPITAL DEFICIENCY / TOTAL EQUITY (531,218) 7,058,711 5,956,977 CURRENT LIABILITIES Trade and other payables 13 3,474,310 5,781,740 7,126,883 Tax payables - 207,303 253,830 Loans from non-controlling - 473,967 481,626 interests Bank borrowings 14 2,614,528 4,744,396 3,994,522 6,088,838 11,207,406 11,856,861 TOTAL LIABILITIES 6,088,838 11,207,406 11,856,861 TOTAL EQUITY AND LIABILITIES 5,557,620 18,266,117 17,813,838 NET CURRENT LIABILITIES (1,641,622) (295,632) (565,198) TOTAL ASSETS (531,218) 7,058,711 5,956,977 LESS CURRENT LIABILITIES WALCOM GROUP LIMITED UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHSED 30 JUNE 2019 Share-based Non- Share Share Merger compensation Exchange Surplus Accumulated controlling Total capital premium reserve reserve reserve reserve losses Total interests equity HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ At 1 January 2018 688,344 95,298,644 23,852,469 883,998 794,643 3,773,101 (110,571,337) 14,719,862 2,904,435 17,624,297 Comprehensive loss Loss for the - - - - - - (10,469,044) (10,469,044) 346,519 (10,122,525) period Other comprehensive income Exchange difference on translation of financial - - - - (405,634) - - (405,634) (37,427) (443,061) statements of overseas subsidiaries Total - - - - (405,634) - (10,469,044) (10,874,678) 309,092 (10,565,586) comprehensive loss for the period Lapse of share - - - (68,477) - - 68,477 - - - option At 30 June 2018 688,344 95,298,644 23,852,469 815,521 389,009 3,773,101 (120,971,904) 3,845,184 3,213,527 7,058,711 At 1 January 2019 688,344 95,298,644 23,852,469 815,521 (917,976) 3,773,101 (120,756,142) 2,753,961 3,203,016 5,956,977 Comprehensive loss Loss for the - - - - - - (3,252,648) (3,252,648) (24,319) (3,276,967) period Other comprehensive income Exchange difference on translation of financial - - - - 57,490 - - 57,490 117,680 175,170 statements of overseas subsidiaries Total - - - - 57,490 - (3,252,648) (3,195,158) 93,361 (3,101,797) comprehensive loss for the period Disposal of a - - - - (90,021) - - (90,021) (3,296,377) (3,386,398) subsidiary At 30 June 2019 688,344 95,298,644 23,852,469 815,521 (950,507) 3,773,101 (124,008,790) (531,218) - (531,218) UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHSED 30 JUNE 2019 Note Unaudited Unaudited six months six months Audited ended ended year ended 30 June 20 30 June 201 31 December 19 8 2018 HK$ HK$ HK$ Cash flow from operating activities Loss before income tax (3,285,345) (9,917,394) (8,565,724) Amortisation of patents 14,845 47,030 92,447 Depreciation 57,238 109,684 209,083 Foreign exchange loss / (gain), net 5,823 (325,103) (1,665,315) Gain on disposal of a subsidiary (180,760) - - Interest received (4,266) (5,157) (23,059) Interest paid 111,602 127,547 291,675 Provision of impairment of trade - 7,899,419 5,750,768 receivables Patents written off - - 278,922 Property, plant and equipment written - 15,597 6,752 off Operating loss before working capital changes (3,280,863) (2,048,377) (3,624,451) (Increase) / decrease in inventories (768,432) (176,564) 737,401 Decrease / (increase) in trade and 1,284,322 (108,163) 2,571,802 other receivables (Decrease) / increase in trade and (2,479,547) 209,879 1,338,290 other payables Net cash (used in) / generated from (5,244,520) (2,123,225) 1,023,042 operations Corporate income tax paid (971) (315,466) (562,513) Interest paid (111,602) (127,547) (291,675) Net cash (used in) / generated from (5,357,093) (2,566,238) 168,854 operating activities Cash flow from investing activities Purchase of property, plant and (23,877) (39,701) (45,038) equipment Proceeds from disposal of a 3,109,462 - - subsidiary Interest received 4,266 5,157 23,059 Net cash generated from / (used in) 3,089,851 (34,544) (21,979) investing activities Cash flow from financing activities Repayment of bank borrowings (2,500,853) - (2,282,584) Proceeds from new bank borrowings 1,136,751 2,375,015 3,994,522 Dividend paid to non-controlling - - (264,391) interests
Decrease in restricted bank balance - 116,377 117,249 Net cash (used in) / generated from (1,364,102) 2,491,392 1,564,796 financing activities Net (decrease) / increase in cash and (3,631,344) (109,390) 1,711,671 cash equivalents Cash and cash equivalents at the 4,825,759 3,594,050 3,594,050 beginning of the period / year Exchange gain on cash and cash (24,682) (89,615) (479,962) equivalents Cash and cash equivalents at the end 11 1,169,733 3,395,045 4,825,759 of the period / year NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHSED 30 JUNE 2019 (1) BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES The unaudited consolidated financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. The unaudited consolidated financial statements have been prepared under the historical cost convention. The same accounting policies, presentation and methods of computation are followed in these unaudited consolidated financial statements as were applied in the preparation of the group's financial statements for the year ended 31 December 2018 except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 January 2019, and will be adopted in the 2019 annual financial statements. The following new standards and interpretations became effective on 1 January 2019 and have been adopted by the group: - IFRS 16 Leases On 1 January 2019, the Group has performed an assessment on the impact of the adoption of IFRS 16 and concluded that no material financial impact exists, and therefore no adjustment to the opening balance sheet on 1 January 2019 was recognised. The consolidated financial statements have been prepared on a going concern basis notwithstanding that the Group had incurred a loss for the period of HK$3,276,967 during the period ended 30 June 2019 and, as of that date, the Group's current liabilities exceeded its current assets by HK$1,641,622. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern. In preparing the consolidated financial statements, the directors have carefully reviewed the Group's cash position as at the balance sheet date and the cash flow forecast for the next six months. In reviewing the Group's cash flows, the directors have considered the following factors: * A stable sales target for 2019 and stable gross profit ratio with the escalating cost of production * Continuous close monitoring of outgoing expenses * Current cash level and committed lines of funding from financial institutions * Failure to renew or replace the above mentioned lines of funding from financial institutions The directors believe that the Group is able to meet its financial obligations in full as and when they fall due and consider that the preparation of the consolidated financial statements on going concern basis is appropriate. (2) SEGMENT REPORTING (a) Primary reporting format - Geographical Segment The group's operations are mainly located in Hong Kong and PRC. The group's sales revenue by geographical location of customers are analysed as follows: Unaudited Unaudited six months six months Audited ended ended year ended 30 June 2019 30 June 201 31 December 8 2018 HK$ HK$ HK$ PRC 3,500,668 10,216,380 15,994,416 Thailand 4,229,382 8,102,788 17,012,750 Korea 702,000 702,000 1,541,592 Others 281,268 142,272 142,272 8,713,318 19,163,440 34,691,030 (b) Secondary reporting format - Business Segment The Group is principally engaged in the manufacture, distribution and sale of chemical feed and additive products. All of the group's products are of a similar nature and subject to similar risk and returns. Accordingly, the group's activities are attributable to a single business segment and no business segment analysis is presented. (c) Segment assets by geographical location of assets Unaudited Unaudited six months six months Audited ended ended year ended 30 June 2019 30 June 201 31 December 8 2018 HK$ HK$ HK$ PRC 4,574,668 6,687,472 7,181,498 Thailand (see Note 16) - 8,962,265 9,738,811 Hong Kong 900,703 2,210,544 868,917 Others 82,249 405,836 24,612 5,557,620 18,266,117 17,813,838 (3) REVENUE Revenue represents the sales value of goods supplied to the customers less returns, discounts, value added tax and sales taxes. (4) OTHER INCOME Unaudited Unaudited six months six months Audited ended ended year ended 30 June 2019 30 June 2018 31 December 2018 HK$ HK$ HK$ Government subsidy - - 105,096 Gain on disposal of a 180,760 - - subsidiary Sundry income 220,089 100,719 102,666 400,849 100,719 207,762 (5) OPERATING LOSS Operating loss is stated after charging the following items:- Unaudited Unaudited six months six months Audited ended ended year ended 30 June 20 30 June 2018 31 December 19 2018 HK$ HK$ HK$ Amortisation of patents 14,845 47,030 92,447 Auditor's remuneration 183,240 183,808 298,683 Cost of inventories 5,285,773 8,349,076 14,648,394 Depreciation 57,238 75,736 139,287 Exchange losses / (gains), net 5,823 (325,103) (1,665,315) Provision of impairment of trade receivables - 7,899,419 5,750,768 Property, plant and equipment - - 6,752 written off Patents written off - 15,597 278,922 Rental charges under operating leases 476,930 486,701 1,022,660 in respect of land and buildings Staff costs (including directors' emoluments) - wages and salaries 3,441,848 4,853,038 9,321,216 - contributions to retirement 427,552 452,386 893,779 benefits - other staff benefits 754,861 1,380,641 2,496,701 (6) NET FINANCE EXPENSES Unaudited Unaudited six months six months Audited ended ended year ended 30 June 30 June 31 December 2019 2018 2018 HK$ HK$ HK$ Bank interest income 4,266 5,157 23,059 Interest expense on loans from non-controlling interest (10,011) (35,592) (64,690) Interest expense on bank loans (101,591) (91,954) (226,985) (107,336) (122,389) (268,616) (7) INCOME TAX REFUND / (EXPENSE) No provision for Hong Kong Profits Tax has been made (June 2018: HK$nil; 2018: HK$nil) as the group's assessable profit subject to Hong Kong profits tax for the period is fully set-off by tax loss brought forward from last year. Taxation on overseas profits has been calculated on the estimated assessable profit for the period/year at the rate of taxation prevailing in the countries in which the group companies operate. The overseas income tax refund provided for the six months ended 30 June 2019 is HK$8,378 (June 2018: Tax expense HK$205,131; 2018: Tax expense HK$422,469). (8) LOSS PER SHARE The calculation of the basic loss per share for the six months ended 30 June 2019, is based on the loss attributable to ordinary equity shareholders of the company of HK$3,252,648 (June 2018: HK$10,469,044; 2018: HK$10,253,282) during the period and the weighted average number of 68,834,388 ordinary shares (June 2018: 68,834,388; 2018: 68,834,388) in issue during the period/year. No diluted loss per share is to be reported for the period/year. (9) DIVIDS
No payment of dividend was recommended for the first six months of 2019 (June 2018: HK$nil; 2018: HK$nil). (10) TRADE AND OTHER RECEIVABLES Unaudited Unaudited Audited 30 June 20 30 June 2018 31 December 19 2018 HK$ HK$ HK$ Trade receivables 5,786,882 10,628,698 8,333,556 Less: provision for (5,410,936) (7,899,419) (5,432,550) impairment loss 375,946 2,729,279 2,901,006 Other receivables 184,599 221,943 244,801 Prepayments and deposits 873,213 1,017,319 939,968 1,433,758 3,968,541 4,085,775 (a) All trade and other receivables are expected to be recovered within one year. (b) Impairment of trade receivables The movement in the provision of impairment for doubtful debts during the period/year, including both specific and collective loss components, is as follows: Unaudited Unaudited six months six months Audited ended ended year ended 30 June 201 30 June 2018 31 December 2018 9 HK$ HK$ HK$ At 1 January 5,432,550 508,758 508,758 Impairment loss - 7,899,419 5,750,768 recognised Written off - (508,758) (508,758) Exchange difference (21,614) - (318,218) At 30 June/31 5,410,936 7,899,419 5,432,550 December The Group applies the IFRS 9 simplified approach to provide for expected credit losses which uses a lifetime expected loss provision for trade receivables. The Group does not hold any collateral over these balances. As at 30 June 2019, the trade receivables of HK$5,474,594 (June 2018: HK$nil; 2018: HK$5,992,011) were pledged as securities for secured bank borrowings (note 14). (11) CASH AND CASH EQUIVALENTS Unaudited Unaudited Audited 30 June 2019 30 June 31 December 2018 2018 HK$ HK$ HK$ Cash at bank and on hand 1,169,733 3,395,045 4,825,759 (12) SHARE CAPITAL Unaudited Unaudited Audited 30 June 30 June 31 December 2019 2018 2018 HK$ HK$ HK$ Authorised 150,000,000 (June 2018: 150,000,000 and Dec 2018: 150,000,000) ordinary shares of 1,500,000 1,500,000 1,500,000 HK$0.01 each Issued and fully paid 68,834,388 (June 2018: 68,834,388 and Dec 2018: 68,834,388) 688,344 688,344 688,344 ordinary shares of HK$0.01 each The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual assets. (13) TRADE AND OTHER PAYABLES Unaudited Unaudited Audited 30 June 2018 30 June 2018 31 December 2018 HK$ HK$ HK$ Trade payables 1,039,560 1,384,916 1,295,639 Contract liabilities 4,567 - 329,062 Other payables and 2,430,183 4,396,824 5,502,182 accrued expenses 3,474,310 5,781,740 7,126,883 All of the trade and other payables are expected to be settled within one year. (14) BANK BORROWINGS Unaudited Unaudited Audited 30 June 20 30 June 31 December 19 2018 2018 HK$ HK$ HK$ Current Bank borrowing, unsecured 1,136,751 4,744,396 1,711,938 Bank borrowings, secured 1,477,777 - 2,282,584 (a) 2,614,528 4,744,396 3,994,522 a. The effective interest rate per annum for bank borrowings at balance sheet date is at 6.4% (June 2018: 5.7%, 2018: 6.4%) per annum. (15) RECONCILIATION OF LOSS BEFORE INCOME TAX TO EBITDA Unaudited Unaudited six months six months Audited ended ended year ended 30 June 2019 30 June 2018 31 December 2018 HK$ HK$ HK$ Loss before income tax (3,285,345) (9,917,394) (8,565,724) Depreciation 57,238 109,684 209,083 Amortisation of patents 14,845 47,030 92,447 Interest income (4,266) (5,157) (23,059) Interest expenses 111,602 127,546 291,675 Patents written off - 15,597 278,922 Gain on disposal of a subsidiary (180,760) - - Impairment loss of trade - 7,899,419 5,750,768 receivables Property, plant and equipment - - 6,752 written off EBITDA (3,286,686) (1,723,275) (1,959,136) EBITDA is defined herein as earnings before depreciation, amortisation, interest and tax, plus specific charges which are considered non-recurring in nature. Specific charges include impairment loss in value and gain/loss in disposal of non-current assets, and amortisation of fair value of share-based compensation. EBITDA is not a recognised term under generally accepted accounting principles and does not purport to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Because not all companies use identical calculations, this presentation may not be comparable to other similarly titled measures of other companies. (16) DISPOSAL OF A SUBSIDIARY On 20 March 2019, the Group disposed of its entire interest in its 55 per cent. owned subsidiary, Walcom Bio-Chen (Thailand) Company Limited, to non-controlling interests for a consideration of THB16.5 million (approximately HK$4.1 million). After deduction of certain amounts due to the purchaser, the net proceeds received were approximately HK$3 million. HK$ Net assets of the subsidiary at the date of disposal were as follows: Property, plant and equipment 5,559,426 Inventory 1,410,724 Trade and other receivables 1,261,807 Cash and cash equivalents 1,010,182 Trade and other payables (1,417,507) Loans from non-controlling interests (499,350) 7,325,282 Non-controlling interests (3,296,377) Exchange reserves (90,021) 3,938,884 Gain on disposal of a subsidiary 180,760 Total consideration 4,119,644 Net cash inflow arising on disposal of a subsidiary: Cash consideration received 4,119,644 Cash and cash equivalents disposed of (1,010,182) 3,109,462 (17) COPIES OF THE HALF YEARLY REPORT Copies of the half-yearly report will be available shortly from the Company's website www.walcomgroup.com. END
(END) Dow Jones Newswires
September 18, 2019 05:59 ET (09:59 GMT)
1 Year Walcom Chart |
1 Month Walcom Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions