Financial Performance - The company reported revenue of SGD 51.619 million for the six months ended March 31, 2020, a decrease of 3.7% from SGD 53.599 million in the same period last year[14]. - Gross profit increased to SGD 21.916 million, up 80% from SGD 12.177 million year-on-year[14]. - Other income rose to SGD 2.757 million, compared to SGD 1.806 million in the previous year, reflecting a 52.5% increase[14]. - The company reported a profit before tax of SGD 3.782 million, an increase of 13.6% from SGD 3.328 million in the prior year[14]. - Net profit for the period was SGD 3.467 million, compared to SGD 3.096 million, representing a 12% increase year-on-year[14]. - Total comprehensive income for the period was SGD 3.458 million, up from SGD 3.137 million, marking a 10.2% increase[14]. - Earnings per share for the period attributable to equity holders was SGD 3.176 million, compared to SGD 2.815 million in the previous year[14]. - The company reported a loss from fair value of investment properties amounting to SGD 4.317 million for the six months ended March 31, 2020[30]. - The company’s net profit attributable to equity holders for the period was SGD 4,246 thousand, demonstrating profitability despite market challenges[77]. Assets and Liabilities - Total assets increased to SGD 315,717 thousand as of March 31, 2020, compared to SGD 186,944 thousand as of September 30, 2019, representing a growth of 68.6%[15]. - Total liabilities surged to SGD 210,989 thousand from SGD 90,064 thousand, marking an increase of 134.0%[15]. - Current liabilities, including trade and other payables, amounted to SGD 77,948 thousand, up from SGD 43,796 thousand, an increase of 77.9%[15]. - Total equity increased to SGD 104,728 thousand from SGD 96,880 thousand, reflecting a growth of 8.5%[17]. - The company’s total assets as of March 31, 2020, were reported at SGD 282,466 thousand, with total liabilities at SGD 205,128 thousand[77]. - Non-current liabilities increased from approximately SGD 46.3 million to approximately SGD 133.0 million, a rise of approximately SGD 86.7 million, primarily due to lease liabilities recognized under IFRS 16[155]. Cash Flow - Operating cash flow for the six months ended March 31, 2020, was SGD 17,578,000, significantly up from SGD 4,904,000 in the same period of 2019, representing a 258% increase[19]. - Net cash generated from operating activities reached SGD 17,989,000, compared to SGD 5,017,000 in the previous year, indicating a 258% growth[19]. - Cash used in investing activities amounted to SGD 22,716,000, a decrease from SGD 30,217,000 in the prior year, showing a 25% reduction[19]. - Cash flow from financing activities generated SGD 5,238,000, down from SGD 21,210,000 in the previous year, reflecting a 75% decline[19]. - The total cash and cash equivalents at the end of the period was SGD 21,788,000, an increase from SGD 16,692,000 year-over-year, which is a 30% rise[19]. Investment and Capital Expenditure - The company’s investment in property, plant, and equipment increased significantly, with cash outflow of SGD 19,602,000 compared to SGD 7,399,000 in the previous year[19]. - The capital expenditure for the period was SGD 10,464 thousand, reflecting ongoing investments in property and equipment[77]. - The company completed the acquisition of an industrial property for SGD 17 million on February 4, 2020, intended for self-storage and logistics activities[172]. Accounting Standards and Policies - The company adopted IFRS 16 Leases, which has implications for the recognition of lease liabilities and assets[24]. - The company has maintained its accounting policies consistent with the previous fiscal year, ensuring stability in financial reporting[22]. - The company recognized lease liabilities of SGD 109,578,000 as of October 1, 2019, after adjustments for short-term and low-value leases[31]. - The company will recognize lease income from operating leases on a straight-line basis over the lease term, net of any incentives granted to tenants[39]. Market and Operational Strategies - The company plans to continue exploring market expansion and new product development strategies to drive future growth[14]. - The company plans to expand its market presence in Southeast Asia, focusing on logistics and facility management services[83]. - The company is investing in new technologies to enhance operational efficiency and improve service delivery in its logistics segment[83]. - The company is actively seeking more external facility management contracts to provide comprehensive services[122]. Shareholder Information - The company has a significant shareholder, Lin Longtian, who holds 216,930,000 shares, representing approximately 53.90% of the total equity[194]. - Fragrance Ltd., controlled by Hean Nerng Group Pte. Ltd., is the beneficial owner of 216,930,000 shares, also accounting for 53.90% of the equity[200]. - The total number of shares held by major shareholders is consistent across various entities, indicating a concentrated ownership structure[199]. Risk Management - The group’s financial risk management includes market risk, credit risk, and liquidity risk, which are critical for its operational activities[56]. - The group has not changed its risk management policies since September 30, 2019, indicating stability in its financial risk management approach[57]. - The group considers significant indicators of credit risk, including major difficulties faced by debtors and potential bankruptcy, to assess expected credit losses[60].
LHN(01730) - 2020 - 中期财报