navigation

Email This Print ThisFinancials

Full Year Financial Statements And Dividend Announcement 2023

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Condensed interim consolidated statement of comprehensive income

Condensed interim consolidated statement of financial position

Review of Performance

Profit or Loss

2H 2023 vs. 2H 2022

The Group's revenue was S$94.7 million, 4.0% higher than 2H 2022's S$91.1 million, and was mainly due to higher revenue from industrial leases and related income and utilities driven by the increased occupancy from the industrial parks segment and higher contribution from a housing project in the current period.

In line with the increased revenue, the Group's cost of sales increased from S$57.3 million in 2H 2022 to 2H 2023's S$58.3 million. The Group's cost of sales to revenue ratio was 0.62 in 2H 2023 as compared to 0.63 in 2H 2022. The Group's gross profit increased from S$33.8 million in 2H 2022 to S$36.4 million in 2H 2023.

The Group's “other income” was S$7.9 million compared to S$5.4 million in 2H 2022 and was mainly due to a higher foreign exchange gain of S$7.0 million in 2H 2023 compared to S$4.5 million in 2H 2022. The foreign exchange gain was mainly due to the translation of the Group's US Dollar-denominated financial liabilities, where the US Dollar depreciated against the Singapore Dollar in 2H 2023.

The Group's “general and administrative expenses” were higher at S$10.2 million compared to 2H 2022's S$9.9 million, mainly due to higher manpower-related costs.

The Group's “other operating expenses” were higher at S$15.1 million than 2H 2022's S$11.9 million. This was mainly due to higher manpower-related costs, professional fees, repair and maintenance, and marketing-related expenses.

The Group's 2H 2023 “share of associate companies' results” was a S$6.8 million loss compared to 2H 2022's S$11.1 million profit. This was mainly due to the recognition of losses in PT IMAS. Despite higher revenue and gross profit in 2H 2023, PT IMAS's performance was impacted by higher financing costs and operating expenses. While PT IMAS has recognised a fair value gain of S$19.3 million on its investment properties in 2H 2023, the Group did not recognise its share of the fair value gain as the Group adopts the cost method for its investment properties. As a result, the Group's share of loss in PT IMAS was S$7.3 million as compared to 2H 2022's profit of S$11.1 million.

Group's “finance costs” were S$19.9 million, higher than 2H 2022's S$16.6 million, mainly due to the rising external bank interest rates.

The Group reported a net loss attributable to the equity holders of the Company of S$16.1 million compared to S$3.2 million profit in 2H 2022.

12 Months 2023 (FY2023) vs. 12 Months 2022 (FY2022)

The Group's revenue was S$182.7 million, 9.5% higher than FY2022's S$166.8 million, and was mainly due to higher revenue from industrial leases and related income and utilities driven by the increased occupancy from the industrial parks segment, higher contribution from the housing project and strong recovery in the resort segment after the resumption of travel and tourism in this region.

In line with the increased revenue, the Group's cost of sales increased from S$111.5 million in FY2022 to FY2023's S$114.0 million. The Group's cost of sales to revenue ratio was 0.62 in FY2023 as compared to 0.67 in FY 2022. The Group's gross profit increased from S$55.3 million in FY2022 to S$68.7 million in FY2023.

The Group's “other income/(expenses)” was S$14.0 million income compared to S$1.1 million expenses in FY2022 and was mainly due to a foreign exchange gain of S$11.3 million in FY2023 compared to a foreign exchange loss of S$4.6 million in FY2022. The foreign exchange gain was mainly due to the translation of the Group's US Dollar-denominated financial liabilities, where the US Dollar depreciated against the Singapore Dollar in 2023.

The Group's “general and administrative expenses” were S$21.4 million compared to FY2022's S$20.0 million, mainly due to higher manpower-related costs and professional fees.

The Group's “other operating expenses” were higher at S$28.9 million as compared to FY2022's S$24.3 million and were mainly due to higher manpower-related costs, professional fees, repair and maintenance, and marketing-related expenses.

The Group's share of profit from its associate companies decreased from S$19.1 million in FY2022 to FY2023's S$6.6 million, mainly due to lower profit contribution from PT IMAS. PT IMAS's profit contribution to the Group in FY2023 decreased by S$11.7 million or 66.4% to S$5.9 million as:

  1. Financing costs increased by S$42.1 million from FY2022's S$146.9 million to FY2023's S$189.0 million, mainly due to higher external bank borrowing rates;

  2. Higher manpower-related costs, depreciation, and marketing-related expenses; and

  3. The Group did not recognise its share of the fair value gain of S$19.3 million recognised by PT IMAS in 2023 on its investment properties as the Group adopts the cost method for its investment properties.

The above was partially mitigated by the following:

  1. PT IMAS's revenue increased by S$166.3 million from S$2,384.2 million in FY2022 to FY2023's S$2,550.5 million, mainly due to higher trucks and heavy-duty equipment sales, after-sales services and car rental related business. In line with higher revenue, PT IMAS's gross profit increased by S$32.1 million or 6.6% in FY2023, and

  2. PT IMAS recorded a lower net foreign exchange loss of S$3.9 million in FY2023 as compared to FY2022's S$11.4 million.

The Group's “finance costs” were S$37.5 million, higher than FY2022's S$27.3 million, mainly due to the increased external bank interest rates.

The Group reported a net loss attributable to the Company's equity holders of S$15.3 million compared to S$13.6 million in FY2022.

Financial position

As at 31 December 2023, the Group's total assets were S$1,396.2 million as compared to the previous year-end of S$1,378.6 million.

The Group's property, plant and equipment increased by S$28.8 million mainly due to capital expenditure incurred on building, infrastructure, and construction of new factories but partially offset by depreciation. The Group's right- of-use assets and investment properties decreased by S$6.2 million, mainly due to depreciation.

The Group's associates increased by S$6.6 million, mainly due to its share of associates' profit and other comprehensive income from PT IMAS.

The Group's trade receivables increased by S$0.8 million, and other receivables increased by S$1.2 million mainly due to the advances paid to contractors for the construction of new industrial factories, development of the airport project, construction of resort-related facilities, and Solar PV project.

The Group's other non-current assets increased by S$1.9 million, mainly due to the recognition of prepaid taxes.

As at 31 December 2023, the Group's total liabilities were S$651.6 million compared to the previous year-end of S$619.8 million. The Group's borrowings increased by S$6.6 million, mainly due to the utilization of the New Facilities the Group obtained on 5 June 2023 but offset by repayment and lower translated borrowings arising from the translation of the US Dollar borrowings into Singapore Dollar as of 31 December 2023.

The Group's trade and other payables increased by S$7.1 million, mainly due to contractors and suppliers for constructing new factories in Batamindo Industrial Park and the ongoing development of Lagoi Bay in Bintan Resorts.

The Group's lease liabilities decreased by S$3.9 million, mainly due to the repayment of the principal portion of the lease liabilities. The Group's other non-current liabilities increased by S$3.1 million, mainly due to increased rental and electricity deposits received from the industrial park tenants for the new factories.

The Group's contract liabilities increased by S$20.2 million mainly due to higher rental receipts in advance from the industrial park tenants and higher receipts of advances from travel agents for tour packages to Bintan Resorts after the recovery of travel and tourism activities in this region.

Cash Flow

For the year under review, net cash inflow from operating activities was S$22.3 million compared to S$22.0 million generated in the previous year. S$52.7 million of the S$73.3 million cash generated from operating activities was used to finance the payment of income tax and interest.

The Group had a net cash outflow of S$51.0 million from investing activities compared to S$14.5 million in the previous year, mainly due to increased capital expenditure for the construction of new factories in Batamindo Industrial Park.

The Group had a net cash inflow of S$10.1 million from financing activities compared to a S$13.4 million net cash outflow in the previous year. The net cash inflow in the current year was due to the utilization of the New Facilities but offset by the repayment of existing borrowings and the principal portion of the lease liabilities.

The Group's cash and cash equivalents were S$109.1 million as at 31 December 2023 compared with S$127.8 million as at 31 December 2022.

Liquidity and financial resources

For the financial year ended 31 December 2023, the Group's working capital was mainly financed by internal resources. The Group's capital expenditure in relation to the construction of new factories was financed by both the advance payment from the tenants and bank borrowings. As at 31 December 2023, the cash and bank balances were S$109.1 million which decreased by 14.6% as compared to S$127.8 million as at 31 December 2022. The Group's current ratio was approximately 3.6 times (31 December 2022 - 4.3 times).

As at 31 December 2023, the Group's borrowings were S$382.4 million. Borrowings due within one year were S$71.2 million (31 December 2022 - S$47.1 million) and borrowings due after one year was S$311.2 million (31 December 2022 - S$328.7 million). The Group's total debts, including lease liabilities were S$392.9 million (31 December 2022 - S$390.2). As at 31 December 2023, the Group's gearing ratio was 0.53 (31 December 2022 - 0.51 which was calculated on the Group's total debts to total share shareholders' equity (including non-controlling interests).

Commentary On Current Year Prospects

The demand for industrial spaces in our industrial parks remains robust, and we expect this segment to maintain its strong performance, driven by sustained growth in both industrial lettable spaces and rental yield. In 2023, we have completed and transferred 20,200 sqm of industrial spaces to the tenants, and another 116,400 sqm is projected for 2024. These expansions and increased industrial activities will positively impact our utilities segment.

Tourist arrivals and tourism activities in our Bintan Resort experienced a remarkable resurgence, aligning with the recovery seen in travel and tourism across the region. Although the return of Chinese tourists fell short of initial expectations, the Group remains optimistic. With China's outbound tourism expected to grow in 2024 amidst pent-up demand for overseas travel and the restoration of pre-pandemic flights, the Group expects that the arrival to Bintan will reach the pre-pandemic level by the end of 2024.