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Financials

Second Quarter Financial Statement And Dividend Announcement 2018

Financials Archive

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Profit & Loss

Balance Sheet

Review of Performance

2nd Quarter 2018 (2Q 2018) vs. 2nd Quarter 2017 (2Q 2017)

Profit & Loss Statement

GV Group's 2Q 2018 revenue relating to IMAS was S$388.9 million as compared to S$392.5 million in 2Q 2017. Lower revenue was mainly due to lower passenger vehicles sales but was partially mitigated by higher truck and heavy duty equipment sales and car rental related income. The Group (excluding IMAS) registered higher revenue of S$40.8 million as compared to S$39.3 million in the previous period and was mainly due to higher revenue from the resort segment's ferry services. The Consolidated Group revenue was S$429.7 million, lower than 2Q 2017's S$431.8 million.

IMAS's 2Q 2018 cost of sales was S$303.6 million as compared to S$310.0 million in 2Q 2017. The Group's (excluding IMAS) cost of sales was S$32.7 million as compared to S$33.4 million in 2Q 2017. In line with the revenue, the Consolidated Group's cost of sales decreased from S$343.4 million in 2Q 2017 to 2Q 2018's S$336.3 million. The Consolidated Group's cost of sales to revenue ratio was 0.79 in 2Q 2018 as compared to 0.80 in 2Q 2017. The Consolidated Group's gross profit was S$93.4 million in 2Q 2018 as compared to S$88.4 million in 2Q 2017 and was due to contribution from higher margin car rental related income and financial services in the automotive segment.

IMAS's 2Q 2018 "other income" was S$17.9 million as compared to S$14.1 million in 2Q 2017 and was mainly due to foreign exchange gain. The Group's (excluding IMAS) "other income" was S$2.1 million expenses as compared to S$1.6 million expenses in 2Q 2017 and was mainly due to higher foreign exchange losses as compared to the previous period. The Consolidated Group's "other income" was S$15.8 million in 2Q 2018 as compared to 2Q 2017's S$12.5 million.

IMAS's 2Q 2018 "general and administrative expenses" was S$38.4 million as compared to S$38.9 million in 2Q 2017. Lower expenses were mainly due to lower provision for doubtful debts and depreciation. The Group's (excluding IMAS) "general and administrative expenses" was S$4.9 million as compared to 2Q 2017's S$3.6 million and was mainly due to higher salary related expenses and depreciation. The Consolidated Group's "general and administrative expenses" was S$49.0 million as compared to 2Q 2017's S$47.7 million.

IMAS's 2Q 2018 "other operating expenses" was S$33.0 million as compared to 2Q 2017's S$32.9 million. The Group's (excluding IMAS) "other operating expenses" was S$6.6 million as compared to 2Q 2017's S$6.6 million. The Consolidated Group's "other operating expenses" was S$39.6 million as compared to 2Q 2017's S$39.5 million.

The Consolidated Group's 2Q 2018 "share of associated companies' result" was S$1.5 million profit as compared to 2Q 2017's S$15.3 million loss. IMAS ceased equity accounting on one of its loss making associate as the accumulated losses have fully eliminated its investment cost.

IMAS's 2Q 2018 "finance costs" was S$25.6 million as compared to 2Q 2017's S$22.7 million and the Group's (excluding IMAS) "finance costs" was S$8.0 million as compared to 2Q 2017's S$9.1 million. The Consolidated Group's "finance costs" was S$33.6 million as compared to S$31.8 million in 2Q 2017 and was mainly due to increased borrowings for capital expenditure in the automotive segment.

IMAS registered net loss of S$2.2 million in 2Q 2018 as compared to S$18.3 million net loss in 2Q 2017 and was mainly due to higher margin contribution from car rental related income, financial services and non-equity accounting of loss making associate company. The Group's (excluding IMAS) net loss was S$16.8 million as compared to 2Q 2017's S$17.5 million loss and was mainly due to higher revenue and lower financing costs. The Consolidated Group's net loss attributable to equity holders of the Company was S$21.6 million for 2Q 2018 as compared to 2Q 2017's S$33.6 million.

Half Year 2018 (1H 2018) vs. Half Year 2017 (1H 2017)

Profit & Loss Statement

GV Group's 1H 2018 revenue relating to IMAS was S$801.7 million as compared to S$790.6 million in 1H 2017. Higher revenue was mainly due to higher trucks and heavy duty equipment sales and car rental related income but was offset by lower passenger car sales. The Group (excluding IMAS) registered higher revenue of S$81.5 million as compared to S$78.1 million in 1H 2017 and was mainly due to higher revenue from the industrial park and resort segments. The Consolidated Group revenue was S$883.2 million, 2% higher than 1H 2017's S$868.7 million.

IMAS's 1H 2018 cost of sales was S$637.6 million as compared to S$633.2 million in 1H 2017. The Group's (excluding IMAS) cost of sales was S$64.3 million as compared to S$66.2 million in 1H 2017. In line with the revenue, the Consolidated Group's cost of sales increased from S$699.4 million in 1H 2017 to 1H 2018's S$701.9 million. The Consolidated Group's cost of sales to revenue ratio was 0.80 in 1H 2018 as compared to 0.81 in 1H 2017. The Consolidated Group's gross profit was S$181.3 million in 1H 2018 as compared to S$169.3 million in 1H 2017 and was in line with higher revenue.

IMAS's 1H 2018 "other income" was S$34.3 million as compared to S$29.5 million in 1H 2017 and was mainly due to foreign exchange gain and higher commission income and sales incentive from the car manufacturer. The Group's (excluding IMAS) "other income" was S$4.3 million expenses as compared to S$6.7 million expenses in 1H 2017 and was mainly due to lower unrealised foreign exchange losses as compared to the previous period. The Consolidated Group's "other income" was S$30.0 million in 1H 2018 as compared to 1H 2017's S$22.8 million.

IMAS's 1H 2018 "general and administrative expenses" was S$69.3 million as compared to S$71.9 million in 1H 2017. Lower expenses were mainly due to lower provision for doubtful debts, depreciation and licensing expenses. The Group's (excluding IMAS) "general and administrative expenses" was S$8.5 million as compared to 1H 2017's S$8.3 million and was mainly due to higher salary related expenses. The Consolidated Group's "general and administrative expenses" was S$89.3 million as compared to 1H 2017's S$90.8 million.

IMAS's 1H 2018 "other operating expenses" was S$64.1 million as compared to 1H 2017's S$64.8 million. The Group's (excluding IMAS) "other operating expenses" was S$10.7 million as compared to 1H 2017's S$12.7 million and was mainly due to write back of accrued expenses previously recorded, now no longer required. The Consolidated Group's "other operating expenses" was S$74.8 million as compared to 1H 2017's S$77.5 million.

The Consolidated Group's 1H 2018 "share of associated companies' result" was S$5.0 million profit as compared to 1H 2017's S$30.2 million loss. IMAS ceased equity accounting on one of its loss making associate as the accumulated losses have fully eliminated its investment cost.

IMAS's 1H 2018 "finance costs" was S$48.9 million as compared to 1H 2017's S$44.2 million and the Group's (excluding IMAS) "finance costs" was S$14.1 million as compared to 1H 2017's S$20.0 million. The Consolidated Group's "finance costs" was S$63.0 million as compared to S$64.2 million in 1H 2017 and was mainly due to repayment of external bank borrowings.

IMAS registered net profit of S$3.7 million in 1H 2018 as compared to S$35.9 million net loss in 1H 2017 and was mainly due to higher revenue and non-equity accounting of loss making associate company. The Group's (excluding IMAS) net loss was S$27.4 million as compared to 1H 2017's S$41.2 million loss and was mainly due to lower foreign exchange loss, financing costs and operating expenses. The Consolidated Group's net loss attributable to equity holders of the Company was S$31.4 million for 1H 2018 as compared to 1H 2017's S$72.7 million.

Balance Sheet

The Group's total assets of S$4,739.2 million as at 30 June 2018 were S$229.5 million higher than as at the previous year end. Other non-current assets increased by S$10.4 million mainly due to the increased in value of the Group's quoted equity investments. Current assets increased from S$2,107.8 million to S$2,201.7 million mainly due to the increased in trade and other receivables, financing receivables and inventories.

The Group' total liabilities of S$3,083.4 million as at 30 June 2018 were S$285.8 million higher than the previous year-end and was mainly due to the increased in borrowings for capital expenditure and for the financial service business. The Group's borrowings and debt securities as at 30 June 2018 were S$2.6 billion of which S$1.3 billion relates to IMAS' car rental and financial services business.

Cash Flow Statement

Net cash used in operating activities was S$220.1 million as compared to S$155.7 million in the previous period.

Net cash used in investing activities was S$95.1 million and was mainly due to capital expenditure.

Net cash generated from financing activities was S$281.1 million mainly from the proceeds from issue of debt securities and borrowings.

Commentary On Current Year Prospects

While IMAS's truck and heavy duty equipment, car rental, and spare parts and servicing businesses have all registered good growth, higher contributions from passenger vehicle segment, with launch of new vehicle models, is expected towards 2nd half of 2018 and into Year 2019.

We started 2018 with strong tourist arrival into Bintan and registered growth in our Resorts and Ferry segments. Continue with this momentum and development of key industrial clusters in Bintan, we are hopeful that these core business segments will contribute positively to the Group.

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