Deloitte.SCIGEN LTD AND ITS SUBSIDIARIES
(Registration No. 199805796R)
INDEPENDENT AUDITORS' REVIEW REPORT AND CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2013
SCIGEN LTD AND ITS SUBSIDIARIES
INDEPENDENT AUDITORS' REVIEW REPORT AND CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
C O N T E N T S
PAGE
Results for announcement to the market 1 - 2
Report of the directors 3 - 4
Statement of directors 5
Independent auditors' review report 6 - 8
Condensed consolidated interim statement of financial position 9 - 10
Condensed consolidated interim statement of comprehensive income 11 - 12
Condensed consolidated interim statement of changes in equity 13
Condensed consolidated interim statement of cash flows 14 - 15
Notes to the condensed consolidated interim financial statements 16 - 30
Supplementary appendix 4D information 31
EQCR-MGR/3019054-4028905-FS/SS/AMCM/ATWQ/DCCN
Results for Announcement to the Market
For the Period Ended 30 June 2013
(Previous corresponding period: Six months ended 30 June 2012)
Revenue and Net Loss
Percentage change
Amount
%
US$'000
Revenue from ordinary activities
Up
20
To
9,746
Loss from ordinary activities after tax attributable to members
Down
71
To
(191)
Net loss for the period attributable to members
(30 June 2012: including profit on discontinued operations of US$4,557,000)
Up
105
To
(191)
Note:
In the comparatives for 2012, the gain on disposal of SciGen (I.L.) including the operating income and expenses for the period were classified as discontinued operations.
Revenue
For the first half year of 2013, revenue for the Group expanded by a remarkable 20% amidst stiff competition in many countries in Asia. The growth in revenue was primarily contributed by our subsidiary in Australia and our distribution partner in Thailand, posting an aggregate improvement of 17%.
The introduction of GensupenTM (an insulin injection syringe patented by our ultimate holding company) and pentips, have boosted the Group's product portfolio, accounting for a major part of the increased revenue in Thailand. Overall, medical devices (GensupenTM and pentips) expanded by 278% from the corresponding period of preceding year.
The Group remains committed on sales of core products of recombinant human insulin (SciLinTM) and human growth hormones (SciTropin ATM and OmnitropeTM), where combined revenue of both products for the six- month period expanded at a rate of 10%.
Profit sharing income from our ultimate holding company further enhanced revenue by US$588,000 for the period, driven by a surge in sales of insulin to their partners in China and India. The unprecedented quantum of profit sharing income for first six-months is comparable to entire year of 2012 and is anticipated to exceed US$1 million this year as sales to China and India remain robust.
1
Results
Improvement in revenue for the period ended 30 June 2013 was slightly insufficient to match the prior year's gain on disposal of a subsidiary in China, Hefei-SciGen-Bioton-Biopharmaceutical Company Ltd, of US$768,000 resulting in loss from ordinary activities after tax to rise by 10%. In spite of the above, loss from ordinary activities after tax attributable to members declined from US$659,000 in 2012 to US$191,000 as allocation of losses to non-controlling interest escalated. Share of losses by another investee in a subsidiary in India, rose as the investee shared 49.99% of the entire six-month losses in the current year compared to late second quarter last year.
In the preceding year, the gain from disposal of a subsidiary in Israel, SciGen (I.L.) Ltd including the operating income and expenses for the period was classified as discontinued operations at US$4,557,000. Without such gain in the current period, results attributable to members decreased from a net profit of US$3,898,000 in previous year to a net loss of US$191,000.
Dividend
The directors do not propose to pay dividends for the six-month period ended 30 June 2013. No dividends have
been paid, declared or proposed since the end of the Company's preceding financial year.
2
SCIGEN LTD AND ITS SUBSIDIARIES REPORT OF THE DIRECTORS
The directors present their report together with the condensed consolidated interim financial statements for the period ended 30 June 2013.
1 DIRECTORS
The directors of the Company in office at the date of this report are: Mr. Slawomir Ziegert
Mr. Adam Tomasz Polonek
Ms. Jenny Low
Mr. Mateusz Patryk Kosecki
Mr. Kenneth Gross
Mr. Adam Wilczega
Ms. Joanna Szymanska-Bulska
Mr. Marcin Dukaczewski
Mr. Amol Jashvant Shah
2 REVIEW OF OPERATIONS
A summary of consolidated revenues and results for the six months by significant geographical segments is set out below:

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