GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2014
INDIVIDUAL QUARTER
Preceding
Current
Year
Quarter
Corresponding
30
Quarter
September
30 September
2014
2013
RM’000
RM’000
Revenue
Other income
Changes in inventories of finished
goods and work-in-progress
Raw materials used
Employee benefits
Depreciation of property,
plant and equipment
Other operating expenses
Finance costs
Profit Before Tax
CUMULATIVE QUARTER
Preceding
Current
Year
Year to Date
Corresponding
30
Period
September
30 September
2014
2013
RM’000
RM’000
25,403
(99)
23,524
838
70,724
2,357
61,650
1,804
(1,063)
(10,687)
(5,344)
712
(11,170)
(5,408)
(2,201)
(30,767)
(15,964)
1,054
(28,137)
(15,239)
(1,511)
(5,428)
(141)
(1,457)
(5,130)
(109)
(4,568)
(15,884)
(455)
(4,128)
(13,169)
(373)
1,130
1,800
3,242
3,462
(836)
(828)
(1,980)
(1,376)
Profit After Tax
294
972
1,262
2,086
Other Comprehensive Income
Exchange differences on
translating foreign operations
137
329
Total Comprehensive
Income for the period
431
1,301
1,244
2,772
288
6
294
1,025
(53)
972
1,275
(13)
1,262
2,220
(134)
2,086
425
6
431
1,354
(53)
1,301
1,257
(13)
1,244
2,906
(134)
2,772
1.33
1.33
1.66
1.66
Tax expense (Note B6)
Profit/(Loss) After Tax
Attributable to:
Owners of the Company
Non-Controlling Interests
Total Comprehensive Income
Attributable to:
Owners of the Company
Non-Controlling Interest
Earnings per Share (Sen)
Basic (Note B14)
Diluted (Note B14)
0.37
0.37
(18)
686
2.89
2.89
The condensed consolidated statement of comprehensive income should be read in conjunction with the
audited financial statements for the year ended 31 December 2013 and accompanying explanatory notes
attached to the interim financial statements.
-1-
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 30 SEPTEMBER 2014
Unaudited
as at
30 September 2014
Audited
as at
31 December 2013
RM’000
RM’000
33,017
36,221
8,517
13,007
2,035
5,057
10,155
38,771
10,227
10,088
1,453
99
4,927
10,398
37,192
Total Assets
71,788
73,413
EQUITY AND LIABILITIES
Equity
Share capital
Share premium
Treasury shares
Foreign exchange translation reserves
Retained Earnings/(Accumulated losses)
40,000
5,593
(1,843)
287
783
40,000
5,593
(1,843)
305
(492)
44,820
43,563
59
72
44,879
43,635
1,770
2,382
4,152
2,407
2,125
4,532
9,974
5,573
6,364
486
360
22,757
10,988
6,389
7,131
494
244
25,246
Total Liabilities
26,909
29,778
Total Equity and Liabilities
71,788
73,413
0.58
0.57
ASSETS
Non-Current Asset
Property, plant and equipment
Current Assets
Inventories
Trade receivables
Other receivables, deposits and prepayments
Tax recoverable
Fixed deposits with licensed banks
Cash and bank balances
Total Equity Attributable to Owners of
the Company
Non-controlling interests
Total Equity
Non-Current Liabilities
Bank borrowings
Deferred taxation
Current Liabilities
Trade payables
Other payables and accruals
Bank borrowings
Bank overdraft
Tax payables
Net Assets per Ordinary Share
Attributable to Owners of the Company (RM)
The condensed consolidated statement of financial position should be read in conjunction with the
audited financial statements for the year ended 31 December 2013 and accompanying explanatory
notes attached to the interim financial statements.
-2-
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS STATEMENT
FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2014
Current Year to
Date
30 September
2014
RM’000
CASH FLOWS FOR OPERATING ACTIVITIES
Profit before tax
Adjustments for:
Non-cash and operating items
Operating profit before working capital changes
Net changes in current assets
Net changes in current liabilities
CASH FROM OPERATIONS
Interest paid
Tax refund
Tax paid
NET CASH FROM OPERATING ACTIVITIES
Preceding Year
Corresponding
Period
30 September
2013
RM’000
3,242
3,462
5,500
8,742
(2,157)
(2,005)
4,580
4,117
7,579
(6,017)
5,063
6,625
(374)
(1,509)
(308)
(1,193)
2,697
5,124
152
23
134
337
NET CASH FOR INVESTING ACTIVITIES
Interest received
Proceed from disposal of property, plant and
Equipment
Purchase of property, plant and equipment
(1,643)
(6,829)
NET CASH USED IN INVESTING ACTIVITIES
(1,468)
(6,358)
(704)
(358)
(50)
(943)
(352)
(344)
849
CASH FLOWS FOR FINANCING ACTIVITIES
Net repayment of other short-term bank borrowings
Placement of fixed deposits pledged to licensed
banks
Net drawdown/(repayment) of hire purchase
Net (repayment)/drawdown of term loan
NET CASH (USED IN)/FROM FINANCING
ACTIVITIES
NET DECREASE IN CASH AND CASH
EQUIVALENTS
EFFECT OF CHANGES IN EXCHANGE RATES
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS AT
END OF PERIOD
(2,049)
(820)
665
147
(1,087)
820
12,983
11,707
12,828
11,440
The condensed consolidated statement of cash flows should be read in conjunction with the
audited financial statements for the year ended 31 December 2013 and accompanying
explanatory notes attached to the interim financial statements.
-3-
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
UNAUDITED CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2014 – CONTINUED
Cash and cash equivalents included in the cash flow statements comprise of the followings:
Fixed deposits with licenced banks
Cash and bank balances
Bank overdraft
Less : Fixed deposit pledged to licensed banks
30 September
2014
RM’000
30 September
2013
RM’000
5,057
10,155
(486)
(1,898)
12,828
4,926
8,647
(349)
(1,784)
11,440
The condensed consolidated statement of cash flows should be read in conjunction with the
audited financial statements for the year ended 31 December 2013 and accompanying
explanatory
notes
attached
to
the
interim
financial
statements.
-4-
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2014
<--------------------------- Non-Distributable --------------------------->
Retained
Earnings /
(Accumulated
Losses)
Total
Attributable
to Owners
of the
Company
NonControlling
Interests
Total
Equity
RM’000
RM‘000
RM‘000
RM‘000
Distributable
Share
Capital
Share
Premium
Treasury
Shares
Foreign
Exchange
Translation
Reserves
RM’000
RM’000
RM’000
RM’000
As at 1 January 2014
Profit for the period
Other comprehensive income
As at 30 September 2014
40,000
40,000
5,593
5,593
(1,843)
(1,843)
305
(18)
287
(492)
1,275
783
43,563
1,275
(18)
44,820
72
(13)
59
43,635
1,262
(18)
44,879
As at 1 January 2013
Profit for the period
Other comprehensive income
Reclassification
As at 30 September 2013
40,000
40,000
5,593
5,593
(1,843)
(1,843)
(133)
686
(3)
549
(2,577)
2,220
(36)
(393)
41,040
2,220
686
(39)
43,906
13
(134)
39
(80)
41,053
2,086
686
43,826
The condensed consolidated statement of changes in equity should be read in conjunction with the audited financial statements for the year ended 31 December 2013
and accompanying explanatory notes attached to the interim financial statements.
-5-
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
A.
EXPLANATORY NOTES IN ACCORDANCE WITH FRS 134
A1.
Basis of Preparation
Statement of compliance
The interim financial statements are unaudited and have been prepared in accordance with
the requirements of FRS 134: Interim Financial Reporting and paragraph 9.22 of the Main
Market Listing Requirements of Bursa Malaysia Securities Berhad.
The interim financial statements should be read in conjunction with the audited financial
statements of the Group for the financial year ended 31 December 2013. These explanatory
notes attached to the interim financial statements provide an explanation of events and
transactions that are significant to an understanding of the changes in the financial position
and performance of the Group since the year ended 31 December 2013.
Significant accounting policies
(a) The significant accounting policies and methods of computation adopted by the Group in these
interim financial statements are consistent with those adopted in the preparation of the financial
statements of the Group for the financial year ended 31 December 2013.
On 1 January 2013, the Group adopted the following accounting standards and interpretations:MFRSs and IC Interpretations (Including The Consequential Amendments)
Effective Date
MFRS 12 Disclosure of Interests in Other Entities
1 January 2013
MFRS 13 Fair Value Measurements
1 January 2013
MFRS 127 Separate Financial Statements
1 January 2013
MFRS 128 Investments in Associates and Joint Ventures
1 January 2013
Amendments to MFRS 1: Government Loans
1 January 2013
Amendments to MFRS 7: Disclosures – Offsetting Financial Assets and Financial
Liabilities
1 January 2013
Amendments to MFRS 10, MFRS 11 and MFRS 12: Transition Guidance
1 January 2013
Amendments to MFRS 101: Presentation of Items of Other Comprehensive
Income – (Annual Improvement 2009-2011 Cycle)
1 January 2013
Amendments to MFRS 116 Property, Plant and Equipment
1 January 2013
Amendments to MFRS 119 Employee Benefits
1 January 2013
The adoption of the above accounting standards and interpretations did not have any material
impact on the financial performance or position of the Group.
(b) The Group has not applied in advance the following accounting standards and interpretations
(including the consequential amendments) that have been issued by the Malaysian Accounting
Standards Board (MASB) but are not yet effective for the current financial period:MFRSs and IC Interpretations (Including The Consequential Amendments)
Effective Date
Amendments to MFRS 8: Operating Segments
1 July 2014
Amendments to MFRS 9: Mandatory Effective Date of MFRS 9 and Transition
Disclosures
1 January 2018
Amendments to MFRS 132: Offsetting Financial Assets and Financial Liabilities
1 January 2014
-6-
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
A2.
Seasonality or Cyclicality Factors
The Group’s interim operations were not significantly affected by any seasonal or cyclical
factors.
A3.
Unusual Items Affecting Assets, Liabilities, Equity, Net Income or Cash Flows
During the quarter, there were no items affecting assets, liabilities, equity, net income or
cash flows that are unusual because of their nature, size or incidence.
A4.
Change in Estimates
There were no changes in estimates of amounts reported in prior interim period that have a
material effect on the results for the quarter.
A5.
Issuance, Cancellations, Repurchases, Resale and Repayments of Debt and Equity
Securities
During the quarter, there were no issuance and repayment of debts and equity securities,
share buy-backs, shares cancellation, shares held as treasury shares and resale of treasury
shares for the quarter under review.
A6.
Dividend Paid
There was no dividend paid during the quarter under review.
A7.
Segmental Reporting
(a)
By Business Segment
Business segmental information has been presented as follows.
(b)
By Geographical Segment
Current Quarter
As at 30 September
2014
Revenue
- Sales to external
customer
- Inter-segment
sales
Total revenue
Segment results
Malaysia
RM’000
Vietnam
RM’000
Singapore Elimination Consolidated
RM’000
RM’000
RM’000
20,802
4,576
25
685
21,487
4,576
25
(685)
(685)
25,403
1,236
186
(12)
(139)
1,271
-
25,403
(141)
1,130
Finance costs
Profit before tax
-7-
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
A7.
Segmental Reporting – continued
b)
By Geographical Segment – continued
Preceding Quarter
As at 30 June 2014
Revenue
- Sales to external
customer
- Inter-segment
sales
Total revenue
Segment results
Malaysia
RM’000
Vietnam
RM’000
Singapore Elimination Consolidated
RM’000
RM’000
RM’000
19,797
4,629
49
1,298
21,095
4,629
49
575
194
(22)
(1,298)
(1,298)
389
Finance costs
Profit before tax
24,475
24,475
1,136
(167)
969
Preceding Year Corresponding Quarter
As at 30 September
2013
Revenue
- Sales to external
customer
- Inter-segment
sales
Total revenue
Segment results
Malaysia
RM’000
Vietnam
RM’000
18,348
5,071
113
1,522
19,870
5,070
113
(1,522)
(1,522)
23,524
1,669
619
36
(415)
1,909
Finance costs
Profit before tax
Singapore Elimination Consolidated
RM’000
RM’000
RM’000
-
23,524
(109)
1,800
-8-
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
A7.
Segmental Reporting – continued
(c)
By Industry Segment
Current Quarter
Injection Cosmetics
Moulding and Skin
Care
RM’000
RM’000
As at 30 September
2014
Revenue
- Sales to external
customer
- Inter-segment
sales
Total revenue
Segment results
Fibre
Elimination Consolidated
Products
RM’000
RM’000
RM’000
-
25,403
24,690
645
68
685
25,375
645
68
(685)
(685)
25,403
2,619
(590)
(619)
(139)
1,271
(141)
1,130
Finance costs
Profit before tax
Preceding Quarter
Injection Cosmetics
Moulding and Skin
Care
RM’000
RM’000
As at 30 June 2014
Revenue
- Sales to external
customer
- Inter-segment
sales
Total revenue
Segment results
Finance costs
Profit before tax
Fibre
Elimination Consolidated
Products
RM’000
RM’000
RM’000
-
24,475
23,796
633
46
1,298
25,094
1,892
633
(620)
46
(525)
-9-
(1,298)
(1,298)
389
24,475
1,136
(167)
969
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
A7.
Segmental Reporting – continued
(c)
By Industry Segment – continued
Preceding Year Corresponding Quarter
Injection Cosmetics
Moulding and Skin
Care
RM’000
RM’000
As at 30 September
2013
Revenue
- Sales to external
customer
- Inter-segment
sales
Total revenue
Segment results
Fibre
Elimination Consolidated
Products
RM’000
RM’000
RM’000
-
23,524
22,298
1,113
143
1,522
23,820
1,113
143
3,274
(643)
(1,522)
(1,522)
23,524
(415)
1,909
(307)
Finance costs
Profit before tax
A8.
(109)
1,800
Material Events Subsequent to the End of the Quarter Under Review
There was no material event subsequent to the end of the quarter that has not been
reflected in the interim financial statements.
A9.
Changes in the Composition of the Group
There are no material changes in the composition of the Group for the current financial
period ended 30 September 2014.
A10.
Changes in Contingent Liabilities or Contingent Assets
There were no changes in the contingent liabilities or contingent assets of the Group
during the quarter.
- 10 -
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
B.
ADDITIONAL INFORMATION REQUIRED BY BURSA SECURITIES LISTING
REQUIREMENTS
B1.
Review of Group’s Results for the Quarter Ended 30 September 2014
In view of increased demand for plastic products, the Group achieved revenue growth of
8.0% to RM 25.4 million in current quarter as compared to RM 23.5 million in preceding year
corresponding quarter.
The Group profit before tax for the current quarter contracted slightly to RM 1.1 million as
compared to profit before tax of RM 1.8 million registered in preceding year corresponding
quarter.
B2.
Variation of Results Against Preceding Quarter
The Group recorded higher profit before tax of RM 1.1 million when compared to the
preceding quarter’s profit before tax of RM 0.97 million.
While the plastic segment continued to provide improved revenue and profitability, the nonplastic segments performed poorly, and consequently, affected the Group results adversely.
B3.
Prospects of the Group
On the back of challenges faced by domestic businesses which include rising cost, volatile
market and stiff competition, the Group is making efforts to map out strategies to improve
performance.
B4.
Profit Forecast
The Group did not publish any profit forecast during the quarter.
B5.
Explanation Note on Profit Forecast
Not Applicable.
- 11 -
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
B6.
Tax Expense
Tax expense comprises of the followings:
Individual quarter ended
30 September 30 September
2014
2013
RM’000
RM’000
In respect of the
current period:
Income tax
Deferred tax
In respect of the
prior year:
Income tax
Deferred tax
Tax expense
B7.
721
115
836
836
Cumulative quarter ended
30 September 30 September
2014
2013
RM’000
RM’000
828
828
1,723
257
1,980
1,376
1,376
828
1,980
1,376
Sale of Unquoted Investments, or Properties
There was no disposal of unquoted investments, or properties during the quarter.
B8.
Purchase or Disposal of Quoted and Marketable Securities
There was no purchase or disposal of quoted and marketable securities during the quarter.
B9.
Corporate Proposals
There were no corporate proposals during the quarter.
B10.
Borrowings
The Group’s borrowings, all are repayable in Ringgit Malaysia and secured, as of the end
of the quarter are as follows:
30 September
2014
RM’000
Short Term Borrowings
Bankers’ acceptance
Bills Payable
Term loans
Hire purchase payables
Long Term Borrowings
Term loans
Hire purchase payables
- 12 -
30 September
2013
RM’000
4,997
425
942
6,364
5,400
62
387
1,346
7,195
792
978
1,770
1,306
887
2,193
8,134
9,388
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
B11.
Off Balance Sheet Financial Instruments
There were no off balance sheet financial instruments as at the date of this report.
B12.
Material Litigation
The directors do not have any knowledge of any proceedings pending or threatened
against the Group as the date of this report.
B13.
Dividends
There was no dividend declared or proposed by the company for the current quarter
ended 30 September 2014.
B14.
Earnings per Share (EPS)
Basic earnings per share
Individual quarter ended
30 September 30 September
2014
2013
Profit attributable to
ordinary shareholders
(RM’000)
Weighted average number
of shares in issue
(RM’000)*
Basic EPS (Sen)
Cumulative quarter ended
30 September 30 September
2014
2013
288
1,025
1,275
2,220
76,908
76,908
76,908
76,908
1.66
2.89
0.37
1.33
Note:
* Upon deducting 3,092,000 treasury shares held by the company as at end of the quarter under
review.
Diluted EPS
Diluted EPS is equal to the basic EPS as there were no potential ordinary shares outstanding
in both the previous and current financial years.
B15.
Audit Report
The auditors’ report of the company for the financial year ended 31 December 2013 was not
subject to any qualification.
- 13 -
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
B16.
Notes to the Statement of Comprehensive Income
Individual quarter ended
30
30
September
September
2014
2013
RM’000
RM’000
Profit before taxation is
arrived at after crediting:
Interest income
Gain on disposal of
property, plant and
equipment
Gain on foreign
exchange
- Realised
- Unrealised
and charging:
Interest expense
Depreciation of
property, plant and
equipment
Goodwill written off
Plant and equipment
written off
Loss on disposal of
property, plant and
equipment
Loss on foreign
exchange
- Realised
- Unrealised
Cumulative quarter ended
30
30
September
September
2014
2013
RM’000
RM’000
44
45
152
134
5
53
28
53
(467)
285
615
106
1,526
541
667
792
121
88
374
308
1,511
-
1,457
-
4,568
-
4,128
715
730
-
730
77
-
-
-
4
(340)
192
74
10
52
550
74
54
Save as disclosed in the above, there were no gain/(loss) on disposal of quoted/unquoted
investments, exceptional items, and other items required to be disclosed under the additional
disclosure requirement for public listed companies that are listed on Main or Ace Markets of the
Bursa Malaysia Securities Berhad.
- 14 -
GE-SHEN CORPORATION BERHAD
Company No. 633814-X
(Incorporated in Malaysia)
B17.
Realised/Unrealised Losses
30 September
2014
RM’000
Total realised profits/(loss) of
Ge-Shen Corporation Berhad and its subsidiaries
Total unrealised losses of
Ge-Shen Corporation Berhad and its subsidiaries
- in respect of deferred tax recognised in the income
statement
- in respect of unrealised (loss)/gain on foreign
exchange
- other unrealised losses
Total realised/unrealised profit/(loss)
- 15 -
3,174
30 September
2013
RM’000
687
(2,382)
(1,817)
(9)
783
738
(392)