ADVANCED INTEGRATED MANUFACTURING CORP. 
By
Registration No: 200405216C
6 months
6 months
2Q FY2013 2Q FY2012
Increase/ (Decrease)
ended
30-Jun-2013
ended
30-Jun-2012
Increase/ (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Revenue 16,823 13,380 25.7% 33,692 26,704 26.2% Cost of sales (14,393) (11,015) 30.7% (28,831) (22,105) 30.4% Gross profit 2,430 2,365 2.7% 4,861 4,599 5.7%
Other income 84 (4) N/M 229 17 1247.1% Selling & marketing expenses (12) (33) -63.6% (34) (65) -47.7% Administrative expenses (2,008) (1,780) 12.8% (3,914) (3,243) 20.7% Other operating expenses - (183) N/M - (302) N/M Finance cost (138) (60) 130.0% (255) (100) 155.0% Profit before tax 356 305 16.7% 887 906 -2.1% Income tax (132) (163) -19.0% (328) (330) -0.6% Total profit after tax 224 142 57.7% 559 576 -3.0%
Equity holders of the parent, net of tax 224 170 31.8% 559 661 -15.4% Non-controlling interests, net of tax - (28) N/M - (85) N/M
224 142 57.7% 559 576 -3.0%
STATEM ENT OF COM PREHENSIVE INCOM E
Group Group
6 months
6 months
2Q FY2013 2Q FY2012
Increase/ (Decrease)
ended
30-Jun-2013
ended
30-Jun-2012
Increase/ (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Profit for the period 224 142 57.7% 559 576 -3.0%
Currencies translation differences arising from consolidation
Fair value changes on available-for-sale investments
(73) 85 N/M (148) 137 N/M
58 (110) N/M 58 (213) N/M
Other comprehensive income for the period 209 117 78.6% 469 500 -6.2%
Equity holders of the Parent, net of tax 209 145 44.1% 469 585 -19.8% Non-controlling interests, net of tax - (28) N/M - (85) N/M
209 117 78.6% 469 500 -6.2%
Profit before tax is arrived at after (charging) / crediting:
Group Group
6 months
6 months
2Q FY2013 2Q FY2012
Increase/ (Decrease)
ended
30-Jun-2013
ended
30-Jun-2012
Increase/ (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Depreciation of property, plant and equipment
Gain / (loss) on exchange differences
Interest income Interest expense Inventory written off
Post employment benefit liabilities
(300) (191) 57.1% (632) (381) 65.9%
45 (183) N/M 185 (302) N/M
- 1 N/M 1 1 0.0% (117) (50) 134.0% (222) (81) 174.1% (1) - N/M (1) - N/M
(27) (9) 200.0% (61) (19) 221.1%
Page 1 of 6
1 (b) (i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.STATEM ENT OF FINANCIAL POSITIONGroup Company
As at
30-Jun-13
As at
31-Dec-12
Increase/ (Decrease)
As at
30-Jun-13
As at
31-Dec-12
Increase/ (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Property, plant and equipment 8,234 8,939 -7.9% 12 81 -85.2% Investment in subsidiaries - - N/M 27,874 27,874 0.0% Intangible assets 1,832 1,832 0.0% - - N/M Available-for-sale investments 126 68 85.3% - - N/M Deferred income tax assets 94 94 0.0% - - N/M
Total non-current assets 10,286 10,933 -5.9% 27,886 27,955 -0.2%
Inventories 20,864 23,835 -12.5% - - N/M Trade and other receivables 16,168 16,661 -3.0% 40 41 -2.4% Amount due from subsidiaries - - N/M 1,046 2,095 -50.1% Deposits and prepayment 433 228 89.9% 39 10 290.0% Cash and cash equivalents 3,520 3,388 3.9% 156 48 225.0%
Total current assets 40,985 44,112 -7.1% 1,281 2,194 -41.6%
Share capital 28,394 28,394 0.0% 28,394 28,394 0.0% Revenue reserves 5,618 5,911 -5.0% 1,227 2,172 -43.5% Capital reserves (524) (524) 0.0% (574) (574) 0.0% Fair value reserves 302 244 23.8% - - N/M Translation reserves (4,283) (4,135) 3.6% - - N/M
Total equity 29,507 29,890 -1.3% 29,047 29,992 -3.2%
Deferred income tax liabilities | 298 | 310 | -3.9% | 14 | 14 | 0.0% | |||
Borrowings (due after a year) | 4,583 | 5,245 | -12.6% | - | - | N/M | |||
Obligation under finance lease (due after a year) | 310 | 371 | -16.4% | - | - | N/M | |||
Post employment benefit liabilities | 280 | 219 | 27.9% | - | - | N/M | |||
Total non-current liabilities | 5,471 | 6,145 | -11.0% | 14 | 14 | 0.0% | |||
Current liabilities Trade and other payables | 5,903 | 8,377 | -29.5% | - | - | N/M | |||
Accruals | 970 | 925 | 4.9% | 69 | 102 | -32.4% | |||
Amount due to related parties | 12 | - | N/M | - | - | N/M | |||
Borrowings (due within a year) | 8,016 | 8,276 | -3.1% | - | - | N/M | |||
Obligation under finance lease (due within a year) | 119 | 166 | -28.3% | - | - | N/M | |||
Current income tax liabilities | 1,236 | 1,229 | 0.6% | - | 4 | N/M | |||
Derivatives | 37 | 37 | 0.0% | 37 | 37 | 0.0% | |||
Total current liabilities | 16,293 | 19,010 | -14.3% | 106 | 143 | -25.9% | |||
TOTAL EQUITY AND LIABILITIES | 51,271 | 55,045 | -6.9% | 29,167 | 30,149 | -3.3% |
As at
30-Jun-13
As at
31-Dec-12
SECURED
US$'000 US$'000
Amount repayable within 1 year or less, or on demand 8,135 8,442
Amount repayable after 1 year 4,893 5,616
UNSECURED
Amount repayable within 1 year or less, or on demand - - Amount repayable after 1 year - -
Details of any collaterals
Mortgage loans amounting to US$ 5,235,994 (31 December 2012: US$ 5,653,893) are secured against freehold land, freehold building and leasehold properties with net book value of US$ 4,942,025 (31 December 2012: US$ 4,980,473).
Finance lease obligations of US$ 428,831 (31 December 2012: US$ 536,830) are secured against the assets purchased.
Borrowings of US$ 6,704,840 (31 December 2012: US$ 7,022,962) are secured by corporate guarantees from the Company.
Page 2 of 6
1 (c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. Group Group
6 months ended
6 months ended
2Q FY2013 2Q FY2012
30-Jun-2013
30-Jun-2012
US$'000 US$'000 US$'000 US$'000
Post employment benefit liabilities 27 9 61 19
Depreciation of property, plant and equipment 300 191 632 381
Exchange differences (184) 93 (223) 158
Interest expense 117 50 222 81
Interest income - (1) (1) (1) Inventory written off 1 - 1 - Operating profit before working capital changes 617 647 1,579 1,544
In inventories 737 (595) 2,970 172
In trade and other receivables (40) (1,514) 493 (1,301) In deposits and prepayment (44) (128) (205) (69) In trade and other payables (559) 552 (2,474) 423
In accruals 146 323 45 222
In amount due to / from a related parties (2) 19 12 (20)
238 (1,343) 841 (573)
Income tax paid (186) (264) (333) (277) Interest paid (117) (50) (222) (81) Interest received - 1 1 1
Acquisition of subsidiary (Note 1) - (1,845) - (1,845) Proceeds from disposal of property, plant and equipment 5 - 5 - Purchase of property, plant and equipment (48) (19) (98) (139) Net cash used in investing activities (43) (1,864) (93) (1,984)
Repayment of trade financing (11,627) (3,827) (22,774) (8,050) Proceeds from trade financing 11,343 6,014 22,533 10,009
Repayment of term loan (127) (103) (461) (220) Proceeds from term loan - 768 - 768
Repayment of obligation under finance lease (19) (23) (87) (35) Dividends paid (852) (940) (852) (940) Net cash used in from financing activities (1,282) 1,889 (1,641) 1,532
Bank balances, deposits and cash
USD
Properties, plant and equipment | 1,451,458 |
Inventories | 590,040 |
Trade and other receivables | 1,096,044 |
Deposits and prepayments | 24,616 |
Cash and bank equivalents | 151,972 |
Trade and other payables | (674,183) |
Accruals | (140,520) |
Amount due to related parties | (14,091) |
Trade financing | (633,473) |
Hire puchase creditors | (142,870) |
Provision for taxation | (46,602) |
Net assets acquired: | 1,662,391 |
Goodwill | 499,474 |
Total consideration paid | 2,161,865 |
Less: 3,750,000 treasury shares transferred | (165,270) |
Total cash consideration paid | 1,996,595 |
Less: Cash of subsidiary acquired | (151,972) |
Cash outflow on acquisition of subsidiary | 1,844,623 |
Page 3 of 6
1 (d) (i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.Group | Share Capital | Treasury Shares | Capital Reserves | Revenue Reserves | Fair value Reserves | Translation Reserves | Non- controlling Total Interests Equity | ||||||
Group | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 US$'000 | ||||||
Balance at 01-Jan-2013 | 28,739 | (345) | (524) | 5,911 | 244 | (4,135) | - 29,890 | ||||||
Total comprehensive income for the period | - | - | - | 335 | - | (75) | - 260 | ||||||
Balance at 31-Mar-2013 | 28,739 | (345) | (524) | 6,246 | 244 | (4,210) | - 30,150 | ||||||
Total comprehensive income for the period | - | - | - | 224 | 58 | (73) | - 209 | ||||||
Dividend paid | - | - | - | (852) | - | - | - (852) | ||||||
Balance at 30-Jun-2013 | 28,739 | (345) | (524) | 5,618 | 302 | (4,283) | - 29,507 |
Balance at 01-Jan-2012 Total comprehensive income for the | 28,739 | (1,304) | (12) | 5,067 | 244 | (4,235) | 533 | 29,032 | |||||||
period | - | - | - | 491 | (103) | 52 | (57) | 383 | |||||||
Balance at 31-Mar-2012 | 28,739 | (1,304) | (12) | 5,558 | 141 | (4,183) | 476 | 29,415 | |||||||
Total comprehensive income for the period | - | - | - | 170 | (110) | 85 | (28) | 117 | |||||||
Dividend paid | - | - | - | (940) | - | - | - | (940) | |||||||
Acquisition of subsidiaries | - | 959 | (346) | - | - | - | (448) | 165 | |||||||
Balance at 30-Jun-2012 | 28,739 | (345) | (358) | 4,788 | 31 | (4,098) | - | 28,757 |
Company | Share Capital | Treasury Shares | Capital Reserves | Revenue Reserves | Total | ||||
Company | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | ||||
Balance at 01-Jan-2013 Total comprehensive income for the | 28,739 | (345) | (574) | 2,172 | 29,992 | ||||
period | - | - | - | (36) | (36) | ||||
Balance at 31-Mar-2013 | 28,739 | (345) | (574) | 2,136 | 29,956 | ||||
Total comprehensive income for the | |||||||||
period | - | - | - | (57) | (57) | ||||
Dividend paid | - | - | - | (852) | (852) | ||||
Balance at 30-Jun-2013 | 28,739 | (345) | (574) | 1,227 | 29,047 |
Balance at 01-Jan-2012 Total comprehensive income for the | 28,739 | (1,304) | (7) | 2,419 | 29,847 | ||||
period | - | - | - | 18 | 18 | ||||
Balance at 31-Mar-2012 | 28,739 | (1,304) | (7) | 2,437 | 29,865 | ||||
Total comprehensive income for the period | - | - | - | (130) | (130) | ||||
Dividend paid | - | - | - | (940) | (940) | ||||
Acquisition of subsidiaries | - | 959 | (567) | - | 392 | ||||
Balance at 30-Jun-2012 | 28,739 | (345) | (574) | 1,367 | 29,187 |
Page 4 of 6
1 (d) (ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year.
There were no changes in the issued share capital of the Company during 2Q FY2013.
As at 30 June 2013, there were 2,620,725 treasury shares held by the Company with a total consideration of US$0.3m (31 December 2012: 2,620,725 treasury shares worth US$0.3m). These shares were held as treasury shares and deducted against shareholders' equity. There was no purchase of ordinary shares to be held as treasury shares for 2Q FY2013 (2Q FY2012: NIL).
('000) ('000) Total number of issued shares 658,990 658,990
Total number of treasury shares (2,621) (2,621) Total number of issued shares excluding treasury shares 656,369 656,369
('000) US$'000
Balance as at 01-Jan-2013 and 30-Jun-2013 2,621 345
This consolidated financial information has not been audited nor reviewed by the external auditors.
3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter).Not applicable.
4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have beenThe Group and Company have applied the same accounting policies and methods of computations in the financial statements for the current financial year and is consistent with those of the most recent audited financial statements for the financial year ended 31 December 2012 except for the adoption of the new and revised Financial Reporting Standards which became effective for the financial period beginning on or after 1 January 2013. The adoption of these new and revised accounting standards did not give rise to any significant impact on the financial statements for the financial year ended 31 December 2013.
5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change.
The Group and the Company have adopted the new and revised Financial Reporting Standards (FRS) which are effective for its financial year beginning 1 January
2013. These changes in accounting policies are assessed to have no material impact to the current or prior results of the Group and of the Company.
6 months ended
6 months ended
2Q FY2013 2Q FY2012
30-Jun-2013
30-Jun-2012
Net Profit after tax (US$'000) 224 170 559 661
Weighted average number of shares in issue ('000) 656,369 650,143 656,369 650,143
Earnings per share (US cents) 0.03 0.03 0.09 0.10
a) The weighted average number of shares is computed based on issued shares excluding treasury shares.
b) As there were no outstanding potentially dilutive ordinary shares, the diluted earnings per ordinary share were the same as the earnings per ordinary share for the respective periods.
As at
30-Jun-13
As at
31-Dec-12
As at
30-Jun-13
As at
31-Dec-12
Net assets value (US$'000) 29,507 29,890 29,047 29,992
Number of shares in issue ('000) 656,369 656,369 656,369 656,369
Net assets value per ordinary share (US cents) 4.50 4.55 4.43 4.57
The net assets value per ordinary share is computed based on issued shares excluding treasury shares.
Page 5 of 6
8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:- (a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and (b) any material factors that affected cash flow, working capital, assets or liabilities of the group during the current financial period reported on. REVIEW OF PERFORMANCE a) Income Statement
In 2Q FY2013, sales increased by 25.7% to US$16.8m as compared to US$13.4m in the previous corresponding period, contributed by the consolidation of our UK
subsidiary's sales as well as increased sales from our Penang subsidiary.
Lower margin sales mix, higher labour and depreciation costs led to gross profit margin declining from 17.7% in 2Q FY2012 to 14.4% in 2Q FY2013.
Administrative expenses increased by 12.8% from US$1.8m in 2Q FY2012 to US$2.0m in 2Q FY2013 due mainly to consolidation of our UK subsidiary's expenses.
Profit before tax increased by 16.7% from US$0.3m in 2Q FY2012 to US$0.4m in 2Q FY2013.
Inventories decreased from US$23.8m as at 4Q FY2012 to US$20.9m as at the end of 2Q FY2013 due to a reduction in the purchase of raw materials.
As a result, trade and other payables decreased by US$2.5m from US$8.4m as at 4Q FY2012 to US$5.9m as at 2Q FY2013.
Net cash generated from operating activities was US$1.9m in the first 6 months of FY2013 compared with US$0.6m in the corresponding period of FY2012. This was due mainly to better collection of trade receivables and lower material purchases.
Net cash of US$1.3m used in financing activities during Q2 FY2013 was mainly for the payment of dividends.
Not applicable.
10. 11. A commentary at the date of announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next report period and the next 12 months.
The Board expects that business conditions in the avionics industry will remain competitive in the forthcoming 12 months.
The Company has announced on 28 June 2013 that it intends to undertake a rights cum warrants issue exercise, and that a portion of the proceeds from the rights cum warrants issue will be used to raise funds to finance the Group's proposed new business of land banking, property investment and property development. Details of the foregoing will be set out in a circular to be despatched to shareholders of the Company in due course.
As part of the proposed diversification of the Group's business, the Company has also announced on 5 July 2013 that the Group has executed letters of offer to purchase four properties in Penang, Malaysia.
Further announcements relating to the rights cum warrants issue exercise and the acquisition of the properties will be made as and when appropriate.
Nil
(b) Corresponding Period of the Immediately Preceding Financial YearNil
12. If no dividend has been declared (recommended), a statement to that effect.No dividend has been declared or recommended for the second quarter ended 30 June 2013.
13. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.The Group does not have a general mandate for interested person transactions under Rule 920.
14. Confirmation by the Board pursuant to Rule 705(5) of the Listing Manual.
Pursuant to Rule 705(5) of the SGX-ST Listing Manual, we, Dr Tan Kim Yong and Tan Gim Seng, being Directors of Advanced Integrated Manufacturing Corp. Ltd. ("the Company") do hereby confirm on behalf of the Board of Directors of the Company that, to the best of their knowledge, nothing has come to the attention of the Board of Directors of the Company which may render the Group's unaudited financial statements for the second quarter ended 30 June 2013 to be false or misleading in any material aspect.
On behalf of the Board of Directors:
Dr Tan Kim Yong Tan Gim Seng
Group Chairman and CEO Executive Director
Ong Beng Hong
Company Secretary
14 August 2013
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