Financial Performance - The company reported revenue of SGD 53.599 million for the six months ended March 31, 2019, compared to SGD 56.204 million for the same period in 2018, representing a decrease of approximately 4.8%[16] - Gross profit for the same period was SGD 12.177 million, down from SGD 15.449 million in 2018, indicating a decline of about 21.5%[16] - The net profit for the period was SGD 3.096 million, an increase of 29.3% from SGD 2.396 million in the previous year[16] - The company’s total comprehensive income for the period was SGD 3.137 million, compared to SGD 2.371 million in 2018, reflecting an increase of approximately 32.4%[16] - Basic and diluted earnings per share for the period were 0.70 cents, up from 0.62 cents in the previous year, marking an increase of about 12.9%[16] - Other income for the period was SGD 1.806 million, a decrease from SGD 1.956 million in 2018, representing a decline of approximately 7.7%[16] - The company’s share of results from associates and joint ventures after tax was SGD 1.953 million, significantly higher than SGD 648,000 in the previous year[16] - Administrative expenses decreased to SGD 11.173 million from SGD 13.028 million, showing a reduction of approximately 14.2%[16] - The company incurred finance costs of SGD 569,000, which is slightly higher than SGD 399,000 in the previous year[16] Assets and Liabilities - Total assets increased to SGD 173,157 thousand as of March 31, 2019, compared to SGD 148,151 thousand as of September 30, 2018, representing a growth of approximately 16.9%[17] - Total liabilities rose to SGD 81,948 thousand, up from SGD 59,645 thousand, indicating an increase of about 37.3%[17] - Total equity increased to SGD 91,209 thousand from SGD 88,506 thousand, reflecting a growth of approximately 1.9%[17] - Cash and bank balances amounted to SGD 14,315 thousand, compared to SGD 10,029 thousand in the previous period, marking a significant increase of about 42.5%[17] - Inventory levels rose to SGD 11,864 thousand, up from SGD 7,690 thousand, which is an increase of approximately 54.3%[17] - The company's retained earnings stood at SGD 51,835 thousand, compared to SGD 49,594 thousand, showing an increase of about 4.5%[20] - Non-controlling interests increased to SGD 1,255 thousand from SGD 972 thousand, representing a growth of approximately 29.2%[20] Cash Flow and Investments - Operating cash flow for the six months ended March 31, 2019, was SGD 5,017,000, an increase from SGD 2,874,000 in the same period of 2018[22] - Net cash used in investing activities for the six months ended March 31, 2019, was SGD 30,217,000, compared to SGD 2,540,000 in the previous year[22] - Cash and cash equivalents at the end of the period were SGD 16,692,000, down from SGD 22,970,000 as of March 31, 2018[22] - The company reported a financing cash inflow of SGD 21,210,000 for the six months ended March 31, 2019, compared to SGD 7,797,000 in the same period of 2018[22] - The company incurred a cash outflow of SGD 7,399,000 for the acquisition of property, plant, and equipment during the reporting period[22] Financial Reporting Standards - The group has not adopted the new International Financial Reporting Standards (IFRS) 16 on leases, which will take effect on January 1, 2019, and will require all long-term leases to be recognized as assets and liabilities on the balance sheet[30] - The expected credit loss for trade receivables is estimated at SGD 1,983,000, based on historical loss data and adjusted for current conditions[37] - The group is currently evaluating the impact of IFRS 17 on insurance contracts, which will take effect on January 1, 2021, but does not anticipate any significant impact on its financial position or performance[31] - The adoption of IFRS 16 will not affect the total cash flows related to leases, but will increase the recognized assets and liabilities on the balance sheet[30] Trade Receivables and Credit Risk - As of March 31, 2019, the total trade receivables amounted to SGD 12,476 million, with an expected loss provision of SGD 1,983 million[39] - The expected loss rates for trade receivables as of March 31, 2019, were 0.2% for current, 0.1% for 30 days overdue, 0.4% for 60 days overdue, 2.3% for 90 days overdue, 0.9% for 180 days overdue, 6.4% for 365 days overdue, and 90.8% for amounts overdue beyond 365 days[39] - The impairment provision for trade receivables increased from SGD 1,812 million on October 1, 2018, to SGD 1,983 million on March 31, 2019, reflecting a loss provision recognized during the period of SGD 171 million[42] - The company assesses credit risk based on significant indicators such as debtor distress, contract violations, and potential bankruptcy[41] Property Valuation and Investments - The fair value of investment properties as of March 31, 2019, was SGD 65,084 million, compared to SGD 46,054 million as of September 30, 2018[45] - The company utilizes independent professional valuers to determine the fair value of its investment properties based on market indicators and cash flow projections[46] - The company reported a decrease in the self-use rate of the property at 72 Eunos Avenue 7 from 17% to 2%, leading to a reclassification of approximately SGD 3,290,000 to investment properties[47] Business Operations and Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[15] - The company is actively seeking new properties and business opportunities for expansion in Singapore, China, and other Asian countries[106] - The company has initiated operations in China with an allocation of HKD 1.8 million[152] Market Conditions and Outlook - The group remains cautious about the business outlook in Singapore's real estate market, despite ongoing expansion plans[102] - The overall industrial property market occupancy rate increased by 0.3 percentage points year-on-year, while the rental index decreased by 0.2%[102] Corporate Governance - The company has adopted the corporate governance codes of both Singapore and Hong Kong, ensuring compliance with stricter regulations[168] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the first half of 2019[172]
LHN(01730) - 2019 - 中期财报