Sin Heng Heavy Machinery Limited

Email This Print This
Financials
Full Year Results Financial Statement And Related Announcement
Financials Archive

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

Profit & Loss

 

Review of Performance

Income Statement

Revenue

The Group registered total revenue of $16.4m in 4Q FY2017 which was 27.1% lower than 4Q FY2016, due to lower trading revenue in 4Q FY2017. The Group registered total revenue of $99.7m for 12M FY2017 which was 8.2% higher than 12M FY2016, due to both higher rental and trading revenue for the 12M FY2017.

Revenue from Equipment Rental business increased by 2% to $11.3m in 4Q FY2017 and 8.3% to $44.9m for 12M FY2017 as compared to the prior corresponding periods respectively, mainly due to increase in fleet size being rented out.

Revenue from Trading business decreased by 55.6% to $5.1m in 4Q FY2017 as compared to 4Q FY2016, mainly due to lesser units delivered during the period. Revenue from Trading business for 12M 2017 was 8.1% higher at $54.8m as compared to 12M FY2016, mainly due to higher volume of equipment sold for the 12M FY2017.

Gross Profit

The Group registered total gross profit of $3.4m in 4Q FY2017 and $18.3m for 12M FY2017, which was 98.7% and 39.7% higher compared to prior corresponding periods respectively, with higher gross profit from both Equipment Rental and Trading businesses.

Gross profit from Equipment Rental business increased by 49.2% to $3.0m in 4Q FY2017 and 19.6% to $11.7m for 12M FY2017 as compared to the prior corresponding periods respectively, in line with the higher rental revenue generated.

Gross profit from Trading business in 4Q FY2017 was $0.4m as compared to trading loss Of $0.3m in 4Q FY2016 from disposal of certain non-performance, old aged cranes in the prior period. Gross profit from Trading business for 12M FY2017 increased by 97.6% to $6.7m as compared to 12M FY2016, mainly due to higher trading revenue and better product mix.

Net (Loss) / Profit

The Group registered net loss after tax of $0.3m in 4Q FY2017 and net profit of $1.6m for 12M FY2017 respectively. This was mainly due to the net impact of the following:

  1. higher gross profit;

  2. lower other operating income mainly from unrealised fair value differences on foreign currency contracts;

  3. lower administrative expenses as a result of cost reduction initiatives;

  4. higher finance costs due to increase in financing of rental fleet;

  5. higher income tax expenses.

  6. for 4Q FY2017, the Group registered higher other operating expenses mainly due to unrealised foreign exchange differences; and lower other operating expenses for 12M FY2017 mainly from absence of one-time recognition of loss on disposal of an associate in 12M FY2016.

Statement Of Financial Position

Current assets
As at 30 June 2017, total current assets amounted to $64.1m or 32.1% of total assets. Current assets comprised mostly of cash and bank balances, trade receivables and inventories. Total current assets decreased by $29.1m as compared to 30 June 2016 mainly due to decrease in inventories, trade receivables and cash and bank balances.

Non-current assets
As at 30 June 2017, non-current assets amounted to $135.2m or 67.9% of total assets. Non-current assets comprised mostly of fixed assets and investments. Total non-current assets increased by $6.0m mainly due to increase in rental fleet.

Current liabilities
As at 30 June 2017, current liabilities amounted to $39.3m or 51.5% of total liabilities. Current liabilities comprised mostly of bills payable, other payables, current portion of bank loans and finance leases. Total current liabilities decreased by $26.9m as compared to 30 June 2016, mainly due to repayment of bills payable.

Non-current liabilities
As at 30 June 2017, non-current liabilities amounted to approximately $37.1m or 48.5% of total liabilities. Non-current liabilities comprised mostly of non-current portion of finance leases and deferred tax. Total non-current liabilities increased by $3.7m as compared to 30 June 2016 mainly due to the drawdown of finance leases.

Working Capital
As at 30 June 2017, the Group registered a positive working capital of $24.7m as compared to that of $27.0m as at 30 June 2016.

Equity
The Group's equity increased from $122.8m as at 30 June 2016 to $122.9m as at 30 June 2017 mainly due to the total comprehensive income recorded for 12M FY2017.

Commentary On Current Year Prospects

The markets which the Group operates in remain challenging. Business environment and economic outlook continue to be uncertain and competitive.

Balance Sheet

Valid XHTMLValid CSS