Sin Heng Heavy Machinery Limited

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Financials
Third Quarter Results Financial Statement And Related Announcement
Financials Archive

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Profit & Loss

 

Review of Performance

Income Statement

Revenue

The Group registered total revenue of $24.6m in 3Q FY2017 and $83.3m for 9M FY2017, which was 30.9% and 19.7% higher compared to prior corresponding periods respectively, mainly due to both higher rental and trading revenue.

Revenue from Equipment Rental business increased by 4.5% to $10.5m in 3Q FY2017 and 10.7% to $33.6m for 9M FY2017 as compared to the prior corresponding periods respectively, mainly due to increase in fleet size being rented out.

Revenue from Trading business increased by 61.2% to $14.1m in 3Q FY2017 and 26.6% to $49.8m for 9M FY2017 as compared to the prior corresponding periods respectively, mainly due to increase volume of equipment sold.

Gross Profit

The Group registered total gross profit of $4.4m in 3Q FY2017 and $14.9m for 9M FY2017, which was 52.4% and 30.7% higher compared to prior corresponding periods respectively, mainly due to both higher rental and trading revenue.

Gross profit from Equipment Rental business increased by 12.7% to $2.3m in 3Q FY2017 and 12.0% to $8.7m for 9M FY2017 as compared to the prior corresponding periods respectively, in line with the higher rental revenue generated.

Gross profit from Trading business increased by 146.6% to $2.1m in 3Q FY2017 and 70.4% to $6.2m for 9M FY2017 as compared to the prior corresponding periods respectively, mainly due to higher trading revenue and better product mix

Net Profit

The Group registered net profit after tax of $0.6m in 3Q FY2017 and $1.9m for 9M FY2017 respectively. This was mainly due to the net impact of the following:

  1. higher gross profit;

  2. higher other operating income in 3Q FY2017 mainly from unrealised fair value differences on foreign currency contracts;

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

  4. higher other operating expenses in 3Q FY2017 mainly from unrealised foreign exchange differences and lower other operating expenses for 9M FY 2017 mainly from absence of one-time recognition of loss on disposal of an associate in the prior corresponding period;

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

  6. higher income tax expenses.

Statement Of Financial Position

Current assets
As at 31 March 2017, total current assets amounted to $70.1m or 34.2% of total assets. Current assets comprised mostly of cash and bank balances, trade receivables and inventories. Total current assets decreased by $23.1m as compared to 30 June 2016 mainly due to decrease in inventories and cash and bank balances.

Non-current assets
As at 31 March 2017, non-current assets amounted to $134.7m or 65.8% of total assets. Non-current assets comprised mostly of fixed assets and investments. Total non-current assets increased by $5.4m mainly due to increase in rental fleet.

Current liabilities
As at 31 March 2017, current liabilities amounted to $44.7m or 54.5% 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 $21.6m as compared to 30 June 2016, mainly due to repayment of bills payable.

Non-current liabilities
As at 31 March 2017, non-current liabilities amounted to approximately $37.1m or 45.4% of total liabilities. Non-current liabilities comprised mostly of non-current portion of bank loans, finance leases and deferred tax. Total non-current liabilities increased by $3.7m as compared to 30 June 2016, mainly due to the drawndown of finance leases.

Working Capital
As at 31 March 2017, the Group registered a positive working capital of $25.4m 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 $123.0m as at 31 March 2017 mainly due to the total comprehensive income recorded for 9M FY2017.

Commentary On Current Year Prospects

Economic outlook continues to be uncertain and business environment competitive. The Group expects the markets we operate to remain challenging.

Balance Sheet

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