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Financial Statements And Related Announcement - Half Year Results

Financials Archive

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Condensed Interim Financial Statements for 6 Months Financial Period Ended 31 October 2022

Condensed interim consolidated income statement

Condensed interim consolidated statement of comprehensive income

Financials

Condensed interim statements of financial position

Financials

Review of Performance

1HFY23

Revenue

The Group's sales revenue was 10.2% higher at S$97.0 million in 1HFY23 compared to S$88.0 million in 1HFY22, primarily due to higher sales in the South East Asia markets.

Gross Profit and Gross Profit Margin

Gross profit margin was lower at 26.3% in 1HFY23 compared to 27.6% in 1HFY22. This was mainly due to higher cost of tyres and wheel production.

Gross profit dollar increased by S$1.3mil to S$25.6mil in 1HFY23 compared to S$24.3mil in 1HFY22. The increase was mainly attributable to higher sales.

Operating Expenses

Total operating expenses increased by 3.6% to S$26.1 million in 1HFY23 compared to S$25.2 million in 1HFY22. The increase was mainly due to higher staff cost, marketing and distribution cost, finance cost and foreign exchange cost; offset by net write-back of allowance for doubtful debts from the recovery of debts previously provided for, and net write-back of provision for inventory obsolescence.

Share of Results of Joint Ventures

In 1HFY23, the share of results of joint ventures amounted to a net profit of S$725,000 compared to S$356,000 in 1HFY22, mainly attributable to improved performance from our Hong Kong joint venture.

Net Profit

The net profit of the Group was S$2.1 million in 1HFY23, compared to S$0.7 million recorded in 1HFY22.

Financial Position

Property, plant and equipment decreased to S$53.3 million as at 31 October 2022 from S$56.4 million as at 30 April 2022.

Receivables decreased to S$29.1 million as at 31 October 2022 from S$36.2 million as at 30 April 2022.

Inventories decreased to S$94.2 million as at 31 October 2022 from S$94.8 million as at 30 April 2022.

Trade payables and trust receipts decreased to S$57.0 million as at 31 October 2022 from S$64.0 million as at 30 April 2022.

As at 31 October 2022, the Group’s cash and cash equivalents stood at S$28.3 million compared to S$35.8 million as at 30 April 2022.

The Group's borrowings which comprise trust receipts, revolving credit, hire-purchase liabilities, short-term secured loans as well as long-term secured loans stood at S$86.7 million as at 31 October 2022 compared to S$96.8 million as at 30 April 2022. The decrease in cash and cash equivalents, and borrowings were mainly due to net repayment of trust receipts and loans during the period.

Commentary

The operating environment in the tyre business remains challenging as a result of intense competition and major geo-political and financial events globally.

To mitigate the impact of this challenging environment, the Group will continue to optimize its product mix, manage operating costs and build on its core markets in South East Asia.