TLV : Annual Reports and Related Documents

MULTI-FACETED

RESILIENCE

A N N U A L R E P O R T 2 0 2 0

CONTENTS

01 Corporate Profile

02 Letter to Shareholders

05 Financial Highlights

06 Financial Review

08 Board of Directors

1. Executive Officers
2. Corporate Information

This annual report has been reviewed by the Company's Sponsor. It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "Exchange") and the Exchange assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinion made or reports contained in this document.

The contact person for the Sponsor is Mr. Joseph Au, 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318, [e-mail].

CORPORATE

PROFILE

With a well-established track record of over 20 years, TLV Holdings Limited (the "TLV Holdings" or the "Company" and together with its subsidiaries, the "Group") is an established jeweller that designs, manufactures and sells jewellery in both the local and international markets on a retail and wholesale basis.

In Singapore, the Group has a retail network of 19 outlets strategically located at various heartland districts, central and suburban malls. Its brands include Taka Jewellery, an established household brand that sells quality jewellery at competitive prices, and Top Cash, which is in the pawnbroking business and trading and retailing of used gold and pre-owned jewellery.

The Group sells to the international market through active participation in jewellery exhibitions since 2003. Its jewelleries

are sold to wholesale customers in the America, Europe, Asia, Africa and Australia. The Group participates regularly in international exhibitions.

OUR

BUSINESS

JEWELLERY

The Group is principally engaged in the sale of jewellery on a retail basis in Singapore under the Taka Jewellery brand as well as on a wholesale basis to global markets through active participation in international jewellery exhibitions.

Retail

Taka Jewellery is an established house hold brand that provides quality jewellery at competitive prices. With an extensive selection of classic and contemporary quality jewellery made from different raw materials, the brand caters to the mass market from homemakers to young working executives.

Taka Jewellery has 15 retail outlets located at various heartland districts and suburban malls throughout Singapore.

Exhibitions

The Group actively participates in jewellery exhibitions

around the world, selling jewellery on a wholesale basis

to customers from the America, Europe, Asia, Africa and Australia. We participate in exhibitions under our brands Taka Jewellery as well as Voi, which was launched in 2007 to engage in the marketing and sale of a contemporary line of jewellery.

PAWNBROKING

The Group ventured into the Pawnbroking business and the trading and retail of pre-owned jewellery under the Top Cash brand in 2013. Our pawnshops typically accept gold and platinum, as well as value articles (such as precious stones and branded jewellery) as collaterals for the loans we extend to our customers.

The Group has four pawnshops in Singapore, located in Yishun, Serangoon and Geylang.

TLV HOLDINGS LIMITED

ANNUAL REPORT 2020

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LETTERS TO

SHAREHOLDERS

Dear Shareholders

FINANCIAL PERFORMANCE

Following a change in TLV Holdings' financial year end from March to June, we are pleased to present our report card for the 15-month financial period from 1 April 2019 to 30 June 2020 ("FP2020").

Overall, the Group managed to register healthy organic growth in the first nine months of the financial period, before the adverse effects brought on by the COVID-19 outbreak since the start of 2020.

Singapore's 'Circuit Breaker' measures which started in

April 2020, led to temporary closure of our retail outlets

island-wide. The pandemic had significantly impacted wholesale and exhibition business due to travel restrictions

imposed. As a result, the Group reported a net loss of S$0.4 million for FP2020 compared to a net profit of S$3.5 million in the 12-month financial year from 1 April 2018 to 31 March 2019 ("FY2019").

The Group's revenue for FP2020 dipped 4% to S$114.1

million from S$119.0 million in FY2019, largely due to lower contributions from its retail and wholesale and exhibition business segments. Due to different product sales mix during the period, gross profit edged up 1% to S$29.8 million, while gross profit margin increased to 26.1% from 24.8% in FY2019.

As at 30 June 2020, the Group maintained a healthy cash position of S$13.7 million, up from S$11.5 million as at 31 March 2019. Net asset value per share remained stable at 18.28 Singapore cents.

BUSINESS REVIEW

Exhibition Business

Revenue from the wholesale and exhibition business fell

15% to S$49.0 million in FP2020 from S$57.7 million in FY2019 due to reduced participation and attendance in international exhibitions.

Over the past years, the Group participated regularly in exhibitions to sell its jewellery, on a wholesale basis, to the international market including the America, Europe, Asia, Africa and Australia. This year has however, been an exception due to ongoing global unprecedented social and economic impacts brought on by the COVID-19 pandemic.

Affected trade events which the Group would have otherwise taken part in during FP2020 include the Hong Kong International Jewellery Show and Baselworld 2020

• both among the biggest jewellery shows in the world.
  Nonetheless, the Group promptly adopted electronic means such as e-commerce, social media and other digital platforms to reach out our wholesale customers after the reopening of business in respective countries.

Retail Business

Our retail business, which sells jewellery to the domestic market under Taka and Top Cash brands, remained the major contributor to the Group's revenue, accounting for 54% in FP2020. Retail revenue for FP2020 increased 4%

to S$62.0 million from S$59.6 million in FY2019 due to an additional three months in the 15-month period being compared. On a year-on-year12-month comparison, retail sales declined 2% amid a challenging retail environment in

Singapore, largely attributable to the lower footfall in retail outlets as a result of the government's 'Circuit Breaker' measures starting in April, which mandated the closure of all retail businesses, including all 15 of our Taka Jewellery outlets for more than two months.

As Singapore moved into phase 2 of reopening starting from around mid-June, we have also reopened our Taka and Top Cash retail outlets with strict safe distancing measures in place to protect the health and safety of our staff, customers and all visitors to our outlets. While shopper

traffic gradually recovers in tandem with Singapore's progressive reopening of economic activities, the Group has stepped up our sales and marketing efforts to attract more customers to our stores.

During the financial period, the Group set up to further expand its retail presence in Singapore with the opening of two retail outlets strategically located in high shopper

traffic areas - Junction 8 and Bugis Junction.

In February the Group disposed of its 49% shareholding interest in Shimao Jewellery, its joint venture with China's

Maoming Liutao Zhubao Chuangyi Chanye Co. Ltd, as part of its strategy to avoid further capital commitment and

minimise losses. To maintain the Group's financial resilience in these trying times, management has suspended most

non-essential operations and capital expenditures, save for IT equipment and facilities which are required for telecommuting and sales.

As part of its efforts to maintain close relations with its customer base in both the local and international jewellery market, the Group has stepped up its various digital initiatives to provide access to its sales channels beyond the brick-and-mortar stores. Under the Taka and Top Cash brands, we have been organising and streaming exclusive live broadcasts on social media and e-commerce platforms.

Financial Services Business

The Group's performance in the financial services business segment, comprising pawnbroking and money lending

businesses, has improved during this period. Revenue rose 72% to S$3.1 million in FP2020 from S$1.8 million in

FY2019, due to higher interest income earned for both the pawnbroking and money lending business.

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TLV HOLDINGS LIMITED

ANNUAL REPORT 2020