Wing Tai : Half Year Results ended 31 Dec 2020

WING TAI HOLDINGS LIMITED

(Incorporated in the Republic of Singapore)

(Company Registration No: 196300239D)

FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE FIRST HALF YEAR ENDED 31 DECEMBER 2020

The Company announces the unaudited consolidated results for the first half year ended 31 December 2020.

1 (a)(i)	Income Statement
			Group
			First Half	First Half
			Year	Year
			ended	ended
			31-Dec-20	31-Dec-19	+/(-)
			S$'000	S$'000	%	Note
	Revenue	243,418	183,495	33
	Cost of sales	(143,496)	(89,689)	60
	Gross profit	99,922	93,806	7
	Other gains - net	12,845	3,468	270	(a)
	Expenses
	- Distribution	(15,838)	(29,075)	(46)	(b)
	- Administrative and other	(46,393)	(50,155)	(8)	(c)
	Operating profit	50,536	18,044	180
	Finance costs	(16,781)	(14,330)	17
	Share of profits of associated and joint venture companies	38,537	35,798	8
	Profit before income tax	72,292	39,512	83
	Income tax expense	(14,746)	(6,508)	127
	Total profit	57,546	33,004	74
	Attributable to:
	Equity holders of the Company	56,796	32,819	73
	Non-controlling interests	750	185	305
			57,546	33,004	74

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1 (a)(ii)	Notes to Income Statement
		Group
		First Half	First Half
		Year	Year
		ended	ended
		31-Dec-20	31-Dec-19	+/(-)
		S$'000	S$'000	%
(A)	Investment income	1,502	1,627	(8)
(B)	Interest income	1,253	1,225	2
(C)	Finance costs	(16,781)	(14,330)	17
(D)	Depreciation and amortisation	(9,031)	(13,556)	(33)
(E)	Write-back of allowance for doubtful debts	7	-	n.m.
(F)	Write-back of allowance for stock obsolescence	1,279	851	50
(G)	Impairment in value of investments	-	-	-
(H)	Foreign exchange loss	(956)	(739)	29
(I)	Adjustment for tax in respect of prior years	-	-	-
(J)	Gain on disposal of investment property and property,
	plant and equipment	9,411	52	n.m.

Note:-

1. The increase in other gains - net is mainly due to the gain on disposal of investment property and property, plant and equipment recognised in the current period.
2. The decrease in distribution expenses is primarily due to the lower rental for retail stores.
3. The decrease in administrative and other expenses is largely due to the lower accrued operating expenses.

n.m. - not meaningful

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1 (b)(i) Statements of Financial Position
		Group	Company
		As at	As at	As at	As at
		31-Dec-20	30-Jun-20	31-Dec-20	30-Jun-20
		S$'000	S$'000	S$'000	S$'000	Note
ASSETS
Current assets
Cash and cash equivalents	786,506	605,480	424,352	283,891
Trade and other receivables	39,725	111,590	143,442	244,796	(a), (g)
Inventories	8,704	14,679	-	-
Development properties	835,693	993,584	-	-	(b)
Tax recoverable	5,956	5,579	-	-
Other assets	21,724	11,448	1,320	1,541
Assets held for sale	-	68,062	-	-	(c)
		1,698,308	1,810,422	569,114	530,228
Non-current assets
Trade and other receivables	121,918	134,673	1,052,622	1,160,397	(g)
Investments in associated and
joint venture companies	1,713,772	1,764,891	-	-	(d)
Investments in subsidiary companies	-	-	282,063	282,063
Investment properties	801,279	792,346	-	-
Property, plant and equipment	89,720	91,608	14,605	12,948
Deferred income tax assets	7,158	8,087	-	-
Other assets	46,545	48,785	20,613	20,811
		2,780,392	2,840,390	1,369,903	1,476,219
Total assets	4,478,700	4,650,812	1,939,017	2,006,447
LIABILITIES
Current liabilities
Trade and other payables	69,765	57,842	13,555	11,195
Current income tax liabilities	39,037	33,418	249	221
Borrowings	85,942	-	85,942	-
Other liabilities	19,139	117,395	-	345	(e)
		213,883	208,655	99,746	11,761
Non-current liabilities
Borrowings	640,280	787,740	421,483	567,537	(f)
Deferred income tax liabilities	34,850	33,719	-	-
Other liabilities	25,491	35,353	9,567	19,322
		700,621	856,812	431,050	586,859
Total liabilities	914,504	1,065,467	530,796	598,620
NET ASSETS	3,564,196	3,585,345	1,408,221	1,407,827
EQUITY
Capital and reserves attributable to
ordinary shareholders of the
Company
Share capital	838,250	838,250	838,250	838,250
Other reserves	(40,263)	7,904	(37,576)	(38,575)
Retained earnings	2,396,207	2,367,885	311,156	311,777
		3,194,194	3,214,039	1,111,830	1,111,452
Perpetual securities	296,391	296,375	296,391	296,375
Non-controlling interests	73,611	74,931	-	-
TOTAL EQUITY		3,564,196	3,585,345	1,408,221	1,407,827

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1 (b)(i) Statements of Financial Position (continued)

Note:-

1. The decrease in the Group's current trade and other receivables is largely due to the repayment of loan by a joint venture company.
2. The decrease in the Group's development properties is primarily attributable to the recognition of capitalised development costs in the income statement.
3. The disposal of the assets held for sale were completed during the current period.
4. The decrease in the Group's investments in associated and joint venture companies is primarily due to currency translation loss.
5. The decrease in the Group's other current liabilities is primarily due to the recognition of advance payments from purchasers for development projects in the income statement upon completion of the sales.
6. The decrease in the Group's and the Company's non-current borrowings is mainly due to the reclassification of medium term notes which became current and the repurchase of its medium term notes.
7. The decrease in the Company's current and non-current trade and other receivables is mainly due to the repayment of loans from its subsidiary companies.

1 (b)(ii) Aggregate amount of group's borrowings and debt securities

Amount repayable in one year or less, or on demand

As at 31-Dec-20	As at 30-Jun-20
Secured	Unsecured	Secured	Unsecured
S$'000	S$'000	S$'000	S$'000
-	85,942	-	-

Amount repayable after one year

As at 31-Dec-20	As at 30-Jun-20
Secured	Unsecured	Secured	Unsecured
S$'000	S$'000	S$'000	S$'000
142,255	498,025	140,207	647,533

Details of any collateral

Secured borrowings are generally secured by the borrowing companies' property, plant and equipment, investment properties and assignment of all rights and benefits with respect to the properties.

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