Australia Sunny Glass : 31 December 2021 Half Yearly Report and Appendix 3

Appendix 3

Half Year Report to the National Stock Exchange of Australia

Australia Sunny Glass Group Limited and Controlled Entities - ABN 54 632 790 660 Period ending 31 December 2021

1. Details of the reporting period and the previous corresponding period.

	Reporting Period					6 Months ended 31 December 2021
	Previous Corresponding Reporting Period				6 Months ended 31 December 2020
2. Results for announcement to the market
						$A,000		$A,000
Revenue from ordinary activities	up	79.3%	from	2,853	to	5,117
Profit (loss) for the period	down	32.7%	from	(2,077)	to	(680)
Profit (loss) for the period attributable
to members of the parent	down	32.7%	from	(2,077)	to	(680)

Note: The Company acquired its wholly owned subsidiary, Sydney Sunny Glass Pty Ltd during the last reporting period.

2.1 The amount per security and franked amount per security of final and interim dividends or a statement that it is not proposed to pay dividends.

It is not proposed to pay a dividend during the current reporting period nor were there any dividends paid, recommended or declared during the pervious reporting period.

2.2 The record date for determining entitlements to the dividends (if any).

Not applicable.

2.3 A brief explanation of any of the above figures necessary to enable the figures to be understood.

Please refer to the Interim Financial Report lodged with this Appendix 3.

3. Net tangible assets per security with the comparative figure for the previous corresponding period.

Net tangible assets per security	Cents	6.90
Previous corresponding period	Cents	6.34

4. Details of entities over which control has been gained or lost during the period, including the following.

4.1 Name of the entity.

None

4.2 The date of the gain or loss of control. N/A

82 Belmont Avenue, Rivervale, Western Australia 6159

Email:[e-mail]

Phone: [phone]

5. Details of audit qualification or review (if any):

The independent auditor's review report is attached as part of the Interim Financial Report.

6. Attachments

The Interim Financial Report of Australia Sunny Glass Group Limited for the half-year ended 31 December 2021 is attached.

7. Signed

Authorised by the Board of Directors and dated 15 March 2022.

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AUSTRALIA SUNNY

GLASS GROUP

LIMITED

ACN 632 790 660

F I N A N C I A L

R E P O R T

FOR THE 6 MONTHS ENDED 31 DECEMBER 2021

CONTENTS

	Page
MANAGING DIRECTOR'S LETTER...................................................................................................................................................	1
DIRECTORS'REPORT.......................................................................................................................................................................	2
AUDITOR'S INDEPENDENCE DECLARATION .................................................................................................................................	4
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ..............................................................................................................	5
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ................................................	6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ..............................................................................................................	7
CONSOLIDATED STATEMENT OF CASH FLOWS...........................................................................................................................	8
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ........................................................................................................	9
DIRECTORS'DECLARATION ..........................................................................................................................................................	13
INDEPENDENT AUDITOR'S REPORT ............................................................................................................................................	14

CORPORATE DIRECTORY
Board of Directors			Company Secretary
Joshua Letcher	|	Non-Executive Chairman
Natalie Teo
Shengqiang (Sunny) Chi	|	Managing Director
Sok Kiang Teoh	|	Executive Director	Nominated Adviser
Kunal Malhotra	|	Non-Executive Director
Seok San (Susan) Tan	|	Non-Executive Director	Blackwall Legal LLP
				Level 26, 140 St Georges Terrace
Registered Office			Perth, Western Australia 6000
15 McCabe Street			Auditors
North Fremantle, Western Australia 6159
Principal Place of Business	HLB Mann Judd (WA Partnership)
				Level 3, 130 Stirling Street
Western Australia:			Perth, Western Australia 6000
82 Belmont Avenue			Share Registry
Rivervale, Western Australia 6103
Telephone:	[phone]
New South Wales:			Advanced Share Registry Ltd
		110 Stirling Highway
239-251 Woodpark Road			Nedlands, Western Australia 6009
Smithfield New South Wales 2164
Telephone:	[phone]	Telephone: [phone]

Victoria:	NSX Code
187 Osbourne Ave
Clayton South Victoria 3169	AG1
Contact Details
Email: [e-mail]
Website:www.asgg.com.au

The Directors of Australia Sunny Glass Group Limited present their report together with the financial statements, on the consolidated entity (referred to here after as the 'Consolidated Entity' consisting of Australia Sunny Glass Group Limited (referred to hereafter as the 'Company' or 'Parent Entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2021.

Directors' Information

The following persons were Directors of the Company during the whole of the financial period and up to the date of this report, unless otherwise stated :

Mr Joshua Letcher, Non-Executive Chairman (appointed 12-10-2021)

Mr Shengqiang (Sunny) Chi, Executive Director

Mr Sok Kiang Teoh, Executive Director

Ms Seok San (Susan) Tan, Non-Executive Director

Mr Kunal Malhotra, Non-Executive Director (appointed 12-10-2021)

Mr Michael Anthony Liew, Non-Executive Director (resigned 12-10-2021)

Company secretary

Ms Natalie Teo

PRINCIPAL ACTIVITIES

During the period, the principal continuing activities of the Consolidated Entity consisted of:

• the manufacture and supply of a comprehensive range of custom built and specialist architectural glass products to the commercial and residential building industry in Australia, predominantly in the east coast markets of New South Wales and Victoria;
• the operation of a fully automated and integrated glass processing plant in a 20,000 sqm manufacturing facility in Smithfield, New South Wales;
• the provision of design and glass supply solutions for structural building facades through the operation of a 9,000 sqm warehousing and distribution centre in Victoria; and
• the provision of integrated glass supply solutions on a project basis to builders, developers and construction companies.

REVIEW OF OPERATIONS

The consolidated financial result for the half-year period to 31 December 2021 was a net loss after income tax of $679,826 (31 December 2020: loss of $2,076,938).

This result comprises:

• Revenue of $5,116,815 (31 December 2020: $2,853, 040), an increase of 79%;
• Gross Operating Profit $1,575,900 (31 December 2020: $340,195), an increase of 363%; and
• EBITDA of $559,872 (31 December 2020 loss of $1,253,147).

The factors affecting this result and the Consolidated Entity's operations for the period include:

• The execution of a major architectural glass supply and installation contract in Box Hill, Victoria, comprising of a 31-floor,380-apartment residential development. It is anticipated that this contract will be completed by the end of FY2022.
• The receipt of $245,182 from the Federal Government's research and development tax incentive grant in relation to the Consolidated Entity's ongoing cyclonic glass project.
• Continuing logistics and labor constraints caused by the COVID-19 pandemic impacting the Consolidated Entity's operations in Sydney and Melbourne. It is encouraging that the easing of border and movement restrictions in recent months will improve this operating aspect.

AUSTRALIA SUNNY GLASS GROUP LIMITED 2