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As per the Company's announcement on 30 April 2020, 4 May 2020, 10 June 2020 and 25 August 2020 in relation to the Group's shareholding in PT IMAS being diluted from 71.49% to 49.49% as a result of the Company for not subscribing to its proportionate entitlement of PT IMAS's issuance of new shares with pre-emptive rights, PT IMAS was deconsolidated with effect from June 2020. The operating performance of PT IMAS prior to deconsolidation, together with the net loss on deconsolidation of S$595.7 million has been presented separately under "discontinued operations" on the income statement.
Half Year 2021 (1H 2021) vs. Half Year 2020 (1H 2020)
Profit & Loss
The Group revenue was S$72.6 million, 1.5% higher than 1H 2020's S$71.5 million and was mainly due to higher revenue from rental and related income and utilities driven by the improved occupancy from the industrial parks segment coupled with the contribution of S$1.8 million from property development segment but was substantially offset by lower utilities revenue in the resort segment, ferry services and tourism related services as a result of the ongoing COVID-19 pandemic and consequential travel restrictions imposed in the region.
The Group's cost of sales decreased from S$58.5 million in 1H 2020 to 1H 2021's S$53.5 million and was mainly due to cost saving measures and lower depreciation expenses. The Group's cost of sales to revenue ratio was 0.74 in 1H 2021 as compared to 0.82 in 1H 2020. Accordingly, the Group's gross profit increased from S$13.0 million in 1H 2020 to S$19.0 million in 1H 2021.
The Group's "other income" was S$3.6 million expenses as compared to S$0.1 million income in 1H 2020 and was mainly due to the write off of the remaining unamortised transaction costs of S$2.8 million in relation to the Group's previous syndicated bank borrowings which the Group refinanced with a term and revolving credit facilities in June 2021.
The Group's "general and administrative expenses" was S$7.6 million as compared to 1H 2020's S$9.5 million and was mainly due to lower manpower related costs.
The Group's "other operating expenses" was S$11.5 million as compared to 1H 2020's S$11.9 million and was mainly due to lower repairs and maintenance expenses.
The Group's 1H 2021 "share of associate companies" results was S$7.6 million loss as compared to 1H 2020's S$0.2 million loss and mainly due to equity accounting of S$8.2 million loss for the Group's 49.49% share of PT IMAS's results covering an 6-month period from 1 January to 30 June 2021 as compared to S$0.5 million loss covering an 1 month period from 1 Jun 2020 to 30 June 2020 in the previous period.
Group's "finance costs" was S$8.5 million as compared to 1H 2020's S$11.3 million and was mainly due to repayment of external bank borrowings.
The Group's net loss from continuing and including discontinued operations attributable to equity holder of the Company was S$25.3 million as compared to 1H 2020's S$24.7 million and S$653.1 million respectively.
The Group's total assets of S$1,436.4 million as at 30 June 2021 were S$45.1 million higher than as at the previous year end.
The Group's property, plant and equipment and investment properties were lower than as at previous year end mainly due to depreciation. Increase in associates in the current year was mainly due to share of higher other reserves from its associated companies. The increase in current assets was mainly due to higher cash and cash equivalents from the net proceeds received from the increased bank borrowings.
The Group's total liabilities of S$613.6 million, were S$47.9 million higher than the previous year end and was mainly due to increase in bank borrowings but partially offset by lower payables. The Group's debts as at 30 June 2021 were S$412.2 million as compared to S$347.8 million as at 31 December 2020.
For the period under review, net cash outflow from operating activities was S$11.1 million as compared to S$2.9 million cash inflow the previous period. The cash generated from operating activities of S$17.4 million was used to finance the payment of income tax and interest.
The Group had net cash outflow of S$6.6 million from investing activities as compared to S$298.3 million in the previous period and was mainly due to the net outflow on deconsolidation of IMAS.
The Group had net cash inflow of S$63.9 million from financing activities as compared to S$160.1 million in the previous period and was mainly due to lower proceeds from the borrowings.
The Group's cash and cash equivalents was S$153.0 million as at 30 June 2021 compared with S$106.8 million as at 31 December 2020.
Our demand for utilities, ferry services and tourism related services in the resort segment continues to be impacted by ongoing COVID-19 pandemic related travel restrictions. Notwithstanding the foregoing, our Industrial parks continue to perform well. The demand for our industrial spaces remains high and we expect to see continued growth in occupancy and yield. The Group has started construction of new factories in Batamindo Industrial park and this will add new industrial spaces through Year 2022. Increased industrial activities will contribute positively to our utilities segment.
While we are positive on the recovery of the tourism sectors with large-scale vaccination rollouts on a global scale and the gradual re-opening of international travel, we continue to maintain a cautious outlook for the rest of Year 2021 and will exercise prudence and vigilance in managing our businesses and cash flow to safeguard our financial position.