ISP GLOBAL(08487) - 2019 Q3 - 季度财报

Financial Statements The financial statements provide a comprehensive overview of the Group's financial performance and position Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group achieved a significant turnaround from loss to profit in the nine months ended March 31, 2019, driven by revenue growth and the absence of large one-off listing expenses incurred in the prior year | Indicator (SGD) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | Nine Months Ended March 31, 2019 | Nine Months Ended March 31, 2018 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,556,146 | 1,321,596 | 6,716,705 | 6,203,831 | | Gross Profit | 748,376 | 321,043 | 2,142,192 | 2,087,839 | | Profit (Loss) Before Tax | 314,007 | (610,030) | 401,757 | (2,392,193) | | Profit (Loss) for the Period Attributable to Owners of the Company | 275,883 | (704,974) | 340,268 | (2,571,486) | | Basic and Diluted Earnings (Loss) Per Share (Singapore Cents) | 0.03 | (0.09) | 0.06 | (0.39) | Unaudited Condensed Consolidated Statement of Changes in Equity The Group's total equity increased from approximately SGD 14.67 million at the beginning of the period to approximately SGD 15.01 million at the end of the nine months ended March 31, 2019, primarily due to the net profit recorded | Item (SGD) | Balance as at July 1, 2018 (Audited) | Profit for the Period | Other Comprehensive Income for the Period | Balance as at March 31, 2019 (Unaudited) | | :--- | :--- | :--- | :--- | :--- | | Total | 14,674,243 | 340,268 | 159 | 15,014,670 | Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations of the financial statement figures, covering company information, accounting policies, revenue segments, and cost structures 1. General Information ISP Global Limited is an investment holding company incorporated in the Cayman Islands, listed on GEM of HKEX on January 16, 2018, with operating subsidiaries primarily engaged in sales and services of audio and communication systems and alarm system services in Singapore - The Company is an investment holding company, with its operating subsidiaries primarily engaged in the sale and related services of audio and communication systems, integrated services, and alarm system services in Singapore[21][24] 2. Basis of Preparation These financial statements are prepared in accordance with International Financial Reporting Standards, with the Group adopting IFRS 9 and IFRS 15 for the first time this fiscal year, which had no significant impact on the consolidated statement of profit or loss - The Group adopted IFRS 9 (Financial Instruments) and IFRS 15 (Revenue from Contracts with Customers), applying transitional provisions without restating prior periods[29][33] - The adoption of IFRS 15 had no significant impact on the Group's consolidated statement of profit or loss[36] 3. Revenue and Segment Information The Group's revenue is entirely derived from Singapore and categorized into three business segments, with "Sales and Related Services of Audio and Communication Systems" being the largest contributor at approximately SGD 4.92 million for the nine months ended March 31, 2019 | Revenue Source (Nine Months Ended March 31, 2019) | Amount (SGD) | | :--- | :--- | | Sales and Related Services of Audio and Communication Systems | 4,921,278 | | Integrated Services of Audio and Communication Systems | 1,138,769 | | AAS Services | 656,658 | | Total | 6,716,705 | - All of the Group's property, plant, and equipment are located in Singapore, and all revenue is derived from Singapore[41] 4. Other Income and Losses Net other losses significantly decreased to approximately SGD 47,000 for the nine months ended March 31, 2019, from SGD 2.8 million in the prior year, primarily due to the absence of a one-off listing expense - Other income and losses primarily include exchange losses and losses on disposal of a subsidiary; the significant loss in the prior period was mainly due to SGD 2.65 million in listing expenses, which did not recur in this reporting period[42] 5. Finance Costs Finance costs, primarily bank borrowing interest, decreased to SGD 29,260 for the nine months ended March 31, 2019, from SGD 50,790 in the prior year - Finance costs entirely comprise bank borrowing interest, with the year-on-year decrease mainly attributable to the repayment of part of bank mortgage loans[45][76] 6. Profit (Loss) Before Tax This report details various costs impacting profit before tax, with total staff costs increasing to SGD 2.25 million and material costs rising to SGD 2.97 million for the nine months ended March 31, 2019 - Total staff costs, including directors' emoluments, increased from approximately SGD 2.02 million in the prior period to approximately SGD 2.25 million in the current period[47][50] 7. Income Tax Expense Income tax expense for the nine months ended March 31, 2019, was SGD 61,489, calculated based on Singapore's 17% corporate income tax rate, including adjustments for current and deferred tax - Singapore corporate income tax is provisioned at 17%, with income tax expense for the nine months totaling SGD 61,489[52] 8. Earnings (Loss) Per Share Basic and diluted earnings per share significantly improved to 0.06 Singapore Cents for the nine months ended March 31, 2019, from a loss of 0.39 Singapore Cents per share in the prior year, with diluted EPS equaling basic EPS due to no dilutive potential ordinary shares - For the nine months ended March 31, 2019, basic and diluted earnings per share were 0.06 Singapore Cents, compared to a loss of 0.39 Singapore Cents per share in the prior period[55] 9. Dividends The company's board of directors did not recommend or declare any dividends during the nine months ended March 31, 2019 - Neither the Company nor any of its subsidiaries proposed or paid any dividends[58] Management Discussion and Analysis This section provides an overview of the Group's operational performance, financial position, and future outlook Business Development and Prospects The Group successfully turned around from a loss to a net profit of approximately SGD 0.3 million during the reporting period, primarily due to the absence of non-recurring listing expenses incurred in the prior year, with management cautiously optimistic about future growth - The Group turned from a loss of SGD 2.6 million in the prior period to a net profit of approximately SGD 0.3 million in the current period, mainly due to SGD 2.7 million in non-recurring listing expenses in the prior period[61] - The Group plans to expand its workforce, machinery, and equipment to increase resources for future project bidding and actively seek to expand its customer base and market share[62] Financial Review This section provides a detailed analysis of financial performance, highlighting an 8.3% revenue increase, a slight decrease in gross profit margin, and significant reductions in other losses and finance costs as key drivers of profitability - Revenue increased by approximately 8.3% compared to the prior period in 2018, primarily due to an increase in awarded contract amounts[66] - Gross profit margin decreased from 33.7% to 31.9%, mainly due to a significant increase in labor costs to ensure timely project completion[67] - Other losses significantly decreased from SGD 2.8 million in the prior period to SGD 47,000 in the current period, primarily due to the non-recurring listing expenses of approximately SGD 2.7 million in the prior period[73] - Finance costs decreased by 42.4%, mainly due to the repayment of part of bank mortgage loans in July 2018[76] Use of Proceeds from Share Offer The company disclosed the utilization progress of IPO proceeds, with approximately HKD 15.7 million (35.7% of the net proceeds) utilized as of March 31, 2019, primarily for bank loan repayment and general working capital, while some planned initiatives were postponed | Use | Designated Amount in Prospectus (HKD Million) | Actual Use (HKD Million) | Percentage Utilized | | :--- | :--- | :--- | :--- | | Enhance Marketing Efforts | 1.4 | 0.1 | 7.1% | | Expand and Train Workforce | 11.6 | 1.6 | 13.8% | | Purchase Vehicles | 3.0 | 0.5 | 16.7% | | Establish New Sales Offices | 10.0 | – | 0.0% | | Repay Part of Bank Loans | 10.0 | 10.0 | 100.0% | | Provide Resources for Performance Guarantees | 2.0 | – | 0.0% | | Obtain Higher Grade Work | 2.5 | – | 0.0% | | General Working Capital | 3.5 | 3.5 | 100.0% | | Total | 44.0 | 15.7 | 35.7% | - Some plans, such as purchasing trucks, establishing new sales offices, and providing performance guarantees, were postponed due to current project requirements and industry observations[90][93] Disclosure of Interests and Other Information This section details the shareholding structure of the company's directors, chief executives, and substantial shareholders, along with compliance and governance matters Disclosure of Interests This section discloses the shareholdings of the company's directors, chief executives, and substantial shareholders as of March 31, 2019, with controlling shareholders Mr. Mong King Yiu and Ms. Chong Siew Lan jointly holding 50.96% through Express Ventures | Shareholder Name | Capacity/Nature | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Mong King Yiu | Interest in controlled corporation; jointly held with another person | 407,700,000 | 50.96% | | Ms. Chong Siew Lan | Interest in controlled corporation; jointly held with another person | 407,700,000 | 50.96% | | Express Ventures | Beneficial owner | 407,700,000 | 50.96% | Compliance and Corporate Governance The company confirmed compliance with GEM Listing Rules during the reporting period, including directors' securities dealing code, maintaining sufficient public float, and corporate governance code, with an audit committee established to review the unaudited quarterly results - All Directors confirmed compliance with the required dealing standards and code of conduct during the reporting period[115] - The Company maintained a sufficient public float as stipulated by the GEM Listing Rules[117] - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[122] - The Company has established an Audit Committee comprising three independent non-executive Directors, which has reviewed the unaudited third-quarter results for the reporting period[127][131]