Quarterly rpt on consolidated results for the financial period ended 30/09/2021

SOUTHERN STEEL BERHAD (196301000443 (5283-X))

QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2021

The figures have not been audited

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE QUARTER ENDED 30 SEPTEMBER 2021

		Individual Quarter	Cumulative Quarter
		Current Year	Preceding Year	Current Year-	Preceding Year
		Quarter	Corresponding	To-Date	Corresponding
			Quarter		Period
		30/9/2021	30/9/2020	30/9/2021	30/9/2020
		RM'000	RM'000	RM'000	RM'000
Revenue	487,072	444,397	487,072	444,397
Cost of sales	(418,581)	(418,154)	(418,581)	(418,154)
Gross profit	68,491	26,243	68,491	26,243
Operating expenses	(24,232)	(24,139)	(24,232)	(24,139)
Other operating income/(expense)	1,928	(19,225)	1,928	(19,225)
Profit/(Loss) from operations	46,187	(17,121)	46,187	(17,121)
Interest income	210	351	210	351
Finance costs	(7,406)	(9,742)	(7,406)	(9,742)
Share of profit in an associated company,
net of tax		701	33	701	33
Profit/(Loss) before taxation	39,692	(26,479)	39,692	(26,479)
Taxation		(4,606)	293	(4,606)	293
Profit/(Loss) from continuing operations	35,086	(26,186)	35,086	(26,186)
Loss from a discontinued operation, net of
tax (N1)		(2,853)	(1,887)	(2,853)	(1,887)
Profit/(Loss) for the period		32,233	(28,073)	32,233	(28,073)
Profit/(Loss) attributable to:
Owners of the Company	32,118	(28,134)	32,118	(28,134)
Non-controlling interests	115	61	115	61
Profit/(Loss) for the period		32,233	(28,073)	32,233	(28,073)
Earnings/(Loss) per ordinary share (sen): -
(a) Basic	5.39	(4.72)	5.39	(4.72)
(b) Fully diluted	5.39	(4.72)	5.39	(4.72)

(N1) Southern HRC Sdn Bhd ("SHRC"), a wholly-owned subsidiary of the Company had ceased its hot rolled coil operation in the financial year ended 30 June 2020. Accordingly, the financial results of the operation is separately disclosed as a discontinued operation.

The Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the Annual Financial Statements for the Financial Year Ended 30 June 2021.

SSB/1

SOUTHERN STEEL BERHAD (196301000443 (5283-X))

QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2021

The figures have not been audited

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE QUARTER ENDED 30 SEPTEMBER 2021 (cont'd)

		Individual Quarter	Cumulative Quarter
		Current Year	Preceding Year	Current Year-	Preceding Year
		Quarter	Corresponding	To-Date	Corresponding
			Quarter		Period
		30/9/2021	30/9/2020	30/9/2021	30/9/2020
		RM'000	RM'000	RM'000	RM'000
Profit/(Loss) for the period	32,233	(28,073)	32,233	(28,073)
Item that will not be reclassified
subsequently to profit or loss
Gain/(Loss) on fair value of equity
instrument at fair value through other
comprehensive income	24	(36)	24	(36)
Item that are or may be reclassified
subsequently to profit or loss
Foreign currency translation differences
for a foreign operation	4	(16)	4	(16)
Cash flow hedge	168	384	168	384
Total comprehensive income/(expense)
for the period	32,429	(27,741)	32,429	(27,741)
Total comprehensive income/(expense)
attributable to:
Owners of the Company	32,323	(27,809)	32,323	(27,809)
Non-controlling interests	106	68	106	68
Total comprehensive income/(expense)
for the period		32,429	(27,741)	32,429	(27,741)

The Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the Annual Financial Statements for the Financial Year Ended 30 June 2021.

SSB/2

SOUTHERN STEEL BERHAD (196301000443 (5283-X))

QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2021

The figures have not been audited

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2021

	As At End of	As At End of
	Current Quarter	Preceding
		Financial Year
	30/9/2021	30/06/2021
	RM'000	RM'000
ASSETS
Property, plant and equipment ("PPE")	405,331	412,896
Rights-of-use assets ("ROU")	342,396	345,982
Goodwill on consolidation	30,256	30,256
Investments in an associated company	13,785	13,084
Other investments	636	612
Deferred tax assets	28,082	36,452
Tax credit receivable	15,856	16,525
Other receivables	294,982	294,982
Total non-current assets	1,131,324	1,150,789
Inventories	413,453	562,613
Trade and other receivables, including derivatives	151,582	43,960
Current tax assets	6,494	9,350
Cash and cash equivalents	156,912	133,011
Asset to be returned to vendor	369,377	369,377
Asset held for sale	84,486	84,486
Total current assets	1,182,304	1,202,797
TOTAL ASSETS	2,313,628	2,353,586
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
Share capital	641,010	641,010
Reserves	116,594	84,271
	757,604	725,281
NON-CONTROLLING INTERESTS	6,869	6,763
TOTAL EQUITY	764,473	732,044
LIABILITIES
Lease liabilities	20,972	21,926
Deferred tax liabilities	17,111	24,273
Deferred income	5,704	6,090
Employee benefits	26,202	25,865
Loans and borrowings	338,880	354,880
Total non-current liabilities	408,869	433,034

SSB/3

SOUTHERN STEEL BERHAD (196301000443 (5283-X))

QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2021

The figures have not been audited

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2021 (cont'd)

	As At End of	As At End of
	Current Quarter	Preceding
		Financial Year
	30/9/2021	30/06/2021
	RM'000	RM'000
Lease liabilities	3,743	3,696
Employee benefits	1,005	1,020
Provisions	3,539	5,292
Trade and other payables, including derivatives	199,367	247,488
Contract liability	369,377	369,377
Loans and borrowings	563,251	561,617
Current tax liabilities	4	18
Total current liabilities	1,140,286	1,188,508
TOTAL LIABILITIES	1,549,155	1,621,542
TOTAL EQUITY AND LIABILITIES	2,313,628	2,353,586
Net assets per share attributable to owners of the Company (RM)	1.27	1.22

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the Annual Financial Statements for the Financial Year Ended 30 June 2021.

SSB/4

SOUTHERN STEEL BERHAD (196301000443 (5283-X))

QUARTERLY REPORT ON CONSOLIDATED RESULTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2021

The figures have not been audited

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 SEPTEMBER 2021

Attributable to owners of the Company

Non-distributable

		Share capital	Revaluation	Merger	Hedging	Exchange	Retained	Total	Non-	Total equity
			reserve	reserve	reserve	fluctuation	earnings/		controlling
						reserve	(Accumulated		interests
							losses)
		RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000	RM'000
Current year-to-date ended 30
September 2021
At 1 July 2021	641,010	295,156	30,000	972	1,828	(243,685)	725,281	6,763	732,044
Profit for the period	-	-	-	-	-	32,118	32,118	115	32,233
Other comprehensive
income/(expense):
- Gain on fair value of equity
instruments	-	-	-	-	-	24	24	-	24
- Foreign currency translation
differences	-	-	-	-	4	-	4	-	4
- Cash flow hedge	-	-	-	177	-	-	177	(9)	168
Total comprehensive income for
the period	-	-	-	177	4	32,142	32,323	106	32,429
At 30 September 2021		641,010	295,156	30,000	1,149	1,832	(211,543)	757,604	6,869	764,473

SSB/5