ADVANCED INTEGRATED MANUFACTURING CORP. 
By
Registration No: 200405216C
3 months ended
3 months ended
Increase/
31-Mar-2014
31-Mar-2013
(Decrease)
US$'000 US$'000 %
Revenue 17,161 16,869 1.7% Cost of sales (14,871) (14,438) 3.0% Gross profit 2,290 2,431 -5.8%
Other revenue 42 145 -71.0% Marketing and distribution (22) (22) 0.0% Administrative expenses (1,854) (1,906) -2.7%
Other expenses (46) - N/M
Finance cost | (123) | (117) | 5.1% |
Profit before tax | 287 | 531 | -46.0% |
Income tax expenses | (132) | (196) | -32.7% |
Profit after tax attributable to owners of the Company | 155 | 335 | -53.7% |
STATEM ENT OF COM PREHENSIVE INCOM E
3 months ended
3 months ended
Increase/
31-Mar-2014
31-Mar-2013
(Decrease)
US$'000 US$'000 %
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Foreign currency translation
Net loss on fair value changes of available-for-sale financial assets
11 (75) N/M (14) - N/M
152 260 -41.5%
1 (a) (ii) NOTES TO INCOME STATEMENT
Profit before tax is arrived at after (charging) / crediting:
3 months ended
3 months ended
Increase/
31-Mar-2014
31-Mar-2013
(Decrease)
US$'000 US$'000 %
Depreciation of property, plant and equipment | (322) | (332) | -3.0% |
Property, plant and equipment written off | (12) | - | N/M |
Net foreign exchange (loss) / gain | (46) | 140 | N/M |
Interest income | 1 | 1 | 0.0% |
Interest expense | (107) | (105) | 1.9% |
Post employment benefit liabilities | (49) | (34) | 44.1% |
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
31-Mar-14
As at
31-Dec-13
As at
31-Mar-14
As at
31-Dec-13
US$'000 US$'000 US$'000 US$'000
Property, plant and equipment 8,260 8,542 20 22
Investment in subsidiary companies - - 29,394 27,874
Investment properties 6,469 - - - Intangible assets 1,832 1,832 - - Available-for-sale financial assets 62 76 - - Deferred tax assets 227 227 - -
Total non-current assets 16,850 10,677 29,414 27,896
Inventories 22,729 22,725 - - Trade and other receivables 15,922 16,153 2,843 376
Prepaid operating expenses 160 102 65 15
Cash and cash equivalents 4,394 5,711 303 2,527
Total current assets 43,205 44,691 3,211 2,918
Share capital 28,739 28,739 28,739 28,739
Treasury shares (345) (345) (345) (345) Retained earnings 6,279 6,124 1,575 1,618
Fair value reserves 238 252 - - Foreign currency translation reserves (4,070) (4,081) - - Capital reserves (524) (524) (574) (574) Employee benefits plan reserve (125) (125) - -
Total equity 30,192 30,040 29,395 29,438
Deferred tax liabilities 169 168 4 4
Loans and borrowings 4,845 5,003 - - Employment benefits 476 427 - -
Total non-current liabilities 5,490 5,598 4 4
Trade and other payables 7,738 8,981 1,266 1,250
Accrued operating expenses 852 928 110 104
Amount due to related parties 3,657 - 1,832 - Loans and borrowings 10,914 8,960 - - Income tax payables 1,194 843 - - Derivatives 18 18 18 18
Total current liabilities 24,373 19,730 3,226 1,372
As at
31-Mar-14
As at
31-Dec-13
SECURED
US$'000 US$'000
Amount repayable within 1 year or less, or on demand 10,914 8,960
Amount repayable after 1 year 4,845 5,003
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$ 4,757,258 (31 December 2013: US$ 4,863,367) are secured against freehold land, freehold building and leasehold properties with net book value of US$ 4,884,353 (31 December 2013: US$ 4,903,577).
Finance lease obligations of US$ 942,623 (31 December 2013: US$ 1,027,410) are secured against the assets purchased. Borrowings of US$ 9,443,516 (31 December 2013: US$ 7,636,815) are secured by corporate guarantees from the Company.
Borrowings of US$ 615,072 (31 December 2013: US$ 435,306) are secured by a debenture over the assets of a subsidiary.
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.
3 months ended
3 months ended
31-Mar-2014
31-Mar-2013
US$'000 US$'000
Post employment benefit liabilities 49 34
Depreciation of property, plant and equipment 322 332
Exchange differences 34 (39) Property, plant and equipment written off 12 - Interest expense 107 105
Interest income (1) (1)
In inventories (4) 2,233
In trade and other receivables 231 533
In deposits and prepayment (58) (161) In trade and other payables (1,243) (1,915) In accruals (76) (101) In amount due to / from related parties 12 14 (1,138) 603
Net Income tax refund / (paid) 220 (147) Interest paid (107) (105) Interest received 1 1
Acquisition of investment property (6,469) - Purchase of property, plant and equipment (37) (50) Net cash used in investing activities (6,506) (50)
Repayment of trade financing (13,825) (11,147) Proceeds from trade financing 15,905 11,190
Repayment of term loan (229) (334) Repayment of obligation under finance lease (93) (68) Short term loan from related party 3,645 - Net cash generated from / (used in) financing activities 5,403 (359) NET INCREASE IN CASH AND CASH EQUIVALENTS (1,317) 905
Bank balances, deposits and cash 4,394 4,293
4,394 4,293
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. Statement of changes in equity for the GroupForeign | |||||||||||||||
currency | Employee | ||||||||||||||
Treasury | Capital | Retained | Fair value | translation | benefits plan | Total | |||||||||
Group | Share capital | shares | reserves | earnings | reserves | reserves | reserve | Equity | |||||||
US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | ||||||||
Balance at 01-Jan-2014 | 28,739 | (345) | (524) | 6,124 | 252 | (4,081) | (125) | 30,040 | |||||||
Total comprehensive income for the period | - | - | - | 155 | (14) | 11 | - | 152 | |||||||
Balance at 31-Mar-2014 | 28,739 | (345) | (524) | 6,279 | 238 | (4,070) | (125) | 30,192 |
Balance at 01-Jan-2013 | 28,739 | (345) | (524) | 5,911 | 244 | (4,135) | (269) | 29,621 | |||||||
Total comprehensive income for the period | - | - | - | 335 | - | (75) | - | 260 | |||||||
Balance at 31-Mar-2013 | 28,739 | (345) | (524) | 6,246 | 244 | (4,210) | (269) | 29,881 |
Company | Share Capital | Treasury Shares | Capital Reserves | Retained earnings | Total | ||||
Company | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | ||||
Balance at 01-Jan-2014 | 28,739 | (345) | (574) | 1,618 | 29,438 | ||||
Total comprehensive income for the period | - | - | - | (43) | (43) | ||||
Balance at 31-Mar-2014 | 28,739 | (345) | (574) | 1,575 | 29,395 |
Balance at 01-Jan-2013 | 28,739 | (345) | (574) | 2,172 | 29,992 | ||||
Total comprehensive income for the period | - | - | - | (36) | (36) | ||||
Balance at 31-Mar-2013 | 28,739 | (345) | (574) | 2,136 | 29,956 |
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 1Q FY2014.
As at 31 March 2014, there were 2,620,725 treasury shares held by the Company with a total consideration of US$0.3m (31 December 2013: 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 1Q FY2014 (4Q FY2013: NIL).
As at 31 March 2014, there were 3,522,600 outstanding call options, each carrying the right to subscribe for one share at an exercise price of S$0.12 per share. These call options will expire on 30 April 2014.
('000) ('000) Total number of issued shares 658,990 658,990
Total number of treasury shares (2,621) (2,621) Total number of issued shares excluding treasury shares 656,369 656,369
('000) US$'000
Balance as at 01-Jan-2014 and 31-Mar-2014 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 2013 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 2014. 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 2014.
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
2014. 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.
3 months ended
3 months ended
31-Mar-2014
31-Mar-2013
Weighted average number of shares in issue ('000) 656,369 656,369
Earnings per share (US cents) 0.02 0.05
On a fully diluted basis (US cents) 0.02 0.05
The weighted average number of shares is computed based on issued shares excluding treasury shares.
7. Net asset value (for the Issuer and Group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year of the Group and Company.
As at
31-Mar-14
As at
31-Dec-13
As at
31-Mar-14
As at
31-Dec-13
Number of shares in issue ('000) 656,369 656,369 656,369 656,369
Net assets value per ordinary share (US cents) 4.60 4.58 4.48 4.48
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
1Q FY2014 sales was stable, increasing by 1.7% to US$17.2m as compared to 1Q FY2013 sales of US$16.9m. Gross margin declined marginally from US$2.4m in
1Q FY2013 to US$2.3m in 1Q FY2014 due to lower margin sale mix.
Profit before tax decreased by 46.0% from US$0.5m in 1Q FY2013 to US$0.3m in 1Q FY2014. This is mainly due to forex loss of US$0.05m for the period as compared to forex gain of US$0.14m in the previous corresponding period.
US$6.5m in investment properties consist of a US$2.3m bungalow lot acquired in January and US$4.2m of progress payments made for the purchase of 3 penthouses.
Inventories was stable at US$22.7m as at 1Q FY2014 as compared to 4Q FY2013, while trade and other receivables decreased by US$0.3m from US$16.2m as at
4Q FY2013 to US$15.9m as at 1Q FY2014.
Trade and other payables decreased by US$1.3m from US$9.0m as at 4Q FY2013 to US$7.7m as at 1Q FY2014 due to payment to suppliers and lesser purchases made during the period.
During 1Q FY2014, the Group accepted US$3.6m in short-term bridging loans from the Group's Chairman, pending the disbursement of bank loans to finance the 3 penthouses.
Short term borrowings increased by US$1.9m from US$9.0m as at 4Q FY2013 to US$10.9m as at 1Q FY2014.
During 1Q FY2014, there was net cash used in operating activities of US$0.2m as compared to net cash generated of US$1.3m in 1Q FY2013. This was mainly due to net payment to suppliers of US$1.2m during the period.
Net cash of US$6.5m used in investing activities during 1Q FY2014 was mainly for the acquisition of the bungalow lot and progress payments for the 3 penthouses.
Net cash of US$5.4m generated from financing activities during 1Q FY2014 was mainly due to the short-term bridging loans of US$3.6m provided by the Group's
Chairman, and net proceeds of US$2.1m from trade financing, offset by US$0.3m in loan repayments .
Cash on hand decreased from US$5.7m as at 4Q FY2013 to US$4.4m as at 1Q FY2014.
Not applicable.
10. 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 continue to remain competitive in the next 12 months.
11. If a decision regarding dividend has been made. (a) Current Financial Period Reported OnNil
(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 first quarter ended 31 March 2014.
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 came to the attention of the Board of Directors of the Company which may render the Group's unaudited financial statements for the third quarter ended 31 March 2014 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
25 April 2014
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