China Aviation Oil Singapore : Full Year Financial Statement For The Period Ended 31 December 2020

CHINA AVIATION OIL (SINGAPORE) CORPORATION LTD

(Company Registration No. 199303293Z)

Full Year Financial Statement For The Year Ended 31 December 2020

1(a) An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year.

These figures have not been audited:

Consolidated Statement of Profit or Loss

2H 2020	2H 2019	Variance	Jan-Dec 2020	Jan-Dec 2019	Variance
US$'000	US$'000	+ / - %	US$'000	US$'000	+ / - %
Revenue (Note 1)	5,143,550	10,660,204	-51.75%	10,516,955	20,343,491	-48.30%
Cost of sales	(5,120,549)	(10,630,445)	-51.83%	(10,471,083)	(20,285,035)	-48.38%
Gross Profit	23,001	29,759	-22.71%	45,872	58,456	-21.53%
Other operating income (Note 2)	3,408	1,591	114.20%	6,750	5,815	16.08%
Administrative expenses	(8,624)	(13,495)	-36.09%	(13,643)	(19,397)	-29.66%
Other operating expenses (Note 3)	(2,957)	5,326	NM	(2,371)	(1,225)	93.55%
Finance costs	(681)	(1,572)	-56.68%	(1,158)	(2,749)	-57.88%
Operating Profit	14,147	21,609	-34.53%	35,450	40,900	-13.33%
Share of results of associates
(net of tax) (Note 4)	20,900	27,255	-23.32%	24,789	65,532	-62.17%
Profit before tax	35,047	48,864	-28.28%	60,239	106,432	-43.40%
Tax expense (Note 5)	(2,425)	(3,818)	-36.49%	(4,046)	(6,602)	-38.72%
Profit for the period/year	32,622	45,046	-27.58%	56,193	99,830	-43.71%
Attributable to:
Equity holders of the Company	32,622	45,046	-27.58%	56,193	99,830	-43.71%
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Consolidated statement of comprehensive income (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.

Consolidated Statement of Comprehensive Income

2H 2020

2H 2019

Variance Jan-Dec 2020

Jan-Dec 2019 Variance

US$'000

US$'000

+ / -%US$'000

US$'000

+ /-%PROFIT FOR THE PERIOD/YEAR

32,622

45,046

-27.58%

56,193

99,830

-43.71%

Other comprehensive income/(loss): Items that are or may be reclassified subsequently to profit or loss: Translation differences relating to financial statements of foreign associates (Note (a))

Other comprehensive income/(loss) for the period, net of tax

21,336 21,336

(3,350)NM

(3,350)

NM

14,553 14,553

(5,565)NM

(5,565)

NM

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD/YEAR

53,958

41,696

29.41%

70,746

94,265 -24.95%

Total comprehensive income attributable to:

Owners of the Company

53,958

41,696

29.41%

70,746

94,265 -24.95%

Note (a): For the twelve months ended 31 December 2020, RMB and Korean Won appreciated by approximately 6.92% and 5.75% respectively against the US Dollar compared to end of December 2019 thereby giving rise to the translation gain on foreign associates. In comparison to FY 2019, RMB and Korean Won both depreciated by 1.62% and 3.33% respectively against the US Dollar in the same period last year.

In the event of the disposal of foreign associates or loss of significant influence over foreign associates, all of the accumulated translation differences in respect of the foreign associates will be reclassified to profit or loss.

Profit before income tax is derived at after crediting / (charging):

2H 2020 US$'000 2H 2019 US$'000 Var +/-%	Jan-Dec 2020 Jan-Dec 2019 US$'000 US$'000 Var + /- %
Depreciation of property, plant and equipment	(374) (396) -5.56%	(751) (781) -3.84%
Depreciation of right-of-use assets	(5,562) (5,610) -0.86%	(11,077) (10,839) 2.20%
Amortisation of intangible assets	(91) (131) -30.53%	(197) (260) -24.23%
Impairment on goodwill	(914) - NM	(914) - NM
Gain/(loss) on disposal of property, plant and equipment	- (2) NM	4 (2) NM
Other debtors written off	- (247) NM	- (247) NM
Bank interest income	2,348 1,999 17.46%	4,604 6,475 -28.90%
Interest expense	(35) (603) -94.20%	(90) (893) -89.92%
Interest expense - lease liabilities	(100) (251) -60.16%	(277) (569) -51.32%
Net foreign exchange gain/(loss)	573 (409) NM	1,144 (690) NM
(Increase)/decrease in loss allowance	(1,694) 6,301 NM	(712) 73 NM

Note 1: Revenue

2H 2020 US$'000 2H 2019 US$'000 Var +/-%	Jan-Dec 2020 Jan-Dec 2019 US$'000 US$'000 Var +/ - %
Revenue from middle distillates Revenue from other oil products	2,386,099 2,757,451 7,199,278 -66.86% 3,460,926 -20.33%	5,629,604 4,887,351 13,594,049 -58.59% 6,749,442 -27.59%
5,143,550 10,660,204 -51.75%	10,516,955 20,343,491 -48.30%

Note 2: Other operating income

2H 2020 US$'000 2H 2019 US$'000 Var +/-%	Jan-Dec 2020 Jan-Dec 2019 US$'000 US$'000 Var + / - %
Bank interest income Net foreign exchange gain/(loss) Other income	2,348 573 487 1,999 (409) 17.46% 1 NM NM	4,604 1,144 1,002 6,475 -28.90% (690) NM 30 3240.00%
3,408 1,591 114.20%	6,750 5,815 16.08%

Note 3: Other operating expenses

Other operating expenses for 2H 2020 was US$2.96 million compared to -US$5.33 million for 2H 2019, mainly due to the expected credit loss ("ECL") provision of US$1.69 million in 2H 2020 compared to the reversal of US$6.30 million in 2H 2019.

Note 4: Share of results of associates

2H 2020 US$'000 2H 2019 US$'000 Var +/-%	Jan-Dec 2020 Jan-Dec 2019 US$'000 US$'000 Var + / - %
Shanghai Pudong International Airport Aviation Fuel Supply Company Ltd ("Pudong")	17,655 24,645 -28.36%	19,789 58,832 -66.36%
Other associates	3,245 2,610 24.33%	5,000 6,700 -25.37%
20,900 27,255 -23.32%	24,789 65,532 -62.17%

Note 5: Tax expense

Tax expense mainly comprised of the recognition of deferred tax liabilities on the Company's share of undistributed retained earnings from associates and provision of taxation for current year's earnings. The undistributed retained earnings from associates is subject to withholding tax.

NM denotes "not meaningful"

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at end of the immediately preceding financial year.

Statement of Financial Position

Group

Company

As at	As at	As at	As at
31 Dec 2020	31 Dec 2019	31 Dec 2020	31 Dec 2019
US$'000	US$'000	US$'000	US$'000
ASSETS
Non-current assets
Property, plant and equipment	4,384	4,905	4,173	4,647
Intangible assets	481	1,536	214	355
Subsidiaries	-	-	20,830	28,578
Associates	304,578	362,040	304,577	361,312
Financial asset at FVTOCI	5,500	5,500	-	-
Trade and other receivables	-	-	5,035	5,035
Right-of-use Assets	4,644	14,752	3,163	12,694
Deferred tax assets	1,252	3,602	1,248	3,598
320,839	392,335	339,240	416,219
Current assets
Inventories	91,375	58,676	75,063	32,687
Trade and other receivables	1,152,784	898,491	1,132,401	857,232
Contract assets	53,845	144,663	53,845	133,260
Cash and cash equivalents	269,107	378,780	247,472	340,618
1,567,111	1,480,610	1,508,781	1,363,797
Total assets	1,887,950	1,872,945	1,848,021	1,780,016
EQUITY AND LIABILITIES
Equity attributable to owners
of the Company
Share capital	215,573	215,573	215,573	215,573
Reserves	661,306	619,386	654,877	605,759
Total equity	876,879	834,959	870,450	821,332
Non-current liabilities
Lease liabilities	512	3,916	198	2,894
Deferred tax liabilities	6,896	11,695	6,896	11,695
7,408	15,611	7,094	14,589
Current liabilities
Trade and other payables	988,875	864,463	967,283	800,688
Contract liabilities	10,326	144,874	137	133,397
Lease liabilities	4,231	10,973	3,057	10,010
Current tax liabilities	231	2,065	-	-
1,003,663	1,022,375	970,477	944,095
Total liabilities	1,011,071	1,037,986	977,571	958,684
Total equity and liabilities	1,887,950	1,872,945	1,848,021	1,780,016
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