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24 August 2011
Aseana Properties Limited("Aseana" or the "Company")
Half Year Results for the Six Months Ended 30 June 2011
Aseana Properties Limited (LSE: ASPL), a property developer investing in Malaysia and Vietnam, listed on the Main Market of the London Stock Exchange, announces its half year results for the six month period ended 30 June 2011.
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Financial highlights: ย | |
โข | Revenue of US$189.67 million (H1 2010: US$2.35 million), mainly attributable to completion of construction of SENI Mont' Kiara Phase 1 which enables the recognition of revenue |
โข | Gross profit of US$25.62 million (H1 2010: Gross loss of US$4.14 million), mainly attributable to SENI Mont' Kiara Phase 1 |
โข | Marketing expenses of US$4.79 million (H1 2010: US$1.75 million) which were expensed as incurred |
โข | Net profit for the half year of US$6.89 million (H1 2010: Net loss of US$13.34 million) |
โข | Earnings per share of US cents 3.39 (H1 2010: Loss per share of US cents 6.18) |
โข | Group net asset value of US$200.52 million (31 December 2010: US$192.87 million) or US$0.943 per share (31 December 2010: US$0.904 per share) |
โข | Cash and bank balances (net of overdraft) of US$43.43 million (31 December 2010: US$140.93 million). The lower cash balance is mainly attributable to the redemption of medium term notes for the development of 1 Mont' Kiara project of US$79.2 million and utilisation by on-going projects |
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Operational highlights: ย | |
โข | Successfully completed construction of 325 units of SENI Mont' Kiara Phase 1 luxury condominiums in Kuala Lumpur, Malaysia and obtained certificate of occupation in April 2011. The 283 units sold are currently being handed over to buyers |
โข | MCDF Investment Pte Ltd (the 50% joint venture partner) exited the 1 Mont' Kiara joint venture in July 2011 and the project accounts are being finalised |
โข | The programme to issue medium term notes of up to US$162 million is still ongoing and on target to complete by end September 2011 |
โข | Partnership with Nam Long announced in April 2011 to develop the Phuoc Long B residential development in District 9, Ho Chi Minh City, Vietnam |
โข | Withdrawal from an option to acquire a piece of development land in Mont' Kiara, Kuala Lumpur, Malaysia in January 2011 due to uncertainty in receiving the necessary approvals from the relevant authorities |
โข | Mutual termination of agreement with PRUPIM Vietnam Property Fund in May 2011 due to unforeseen delays in fulfilling the conditions of the agreement in the Tan Thuan Dong residential development in District 7, Ho Chi Minh City, Vietnam. Aseana to continue partnership with Nam Long to develop the residential project on a 80:20 basis |
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Commenting on the results, Mohammed Azlan Hashim, Chairman of Aseana, said:
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"We are delighted to announce a profit for the first half for Aseana, on the back of the completion of SENI Mont' Kiara Phase 1. SENI Mont' Kiara is currently the largest asset in our portfolio and with the completion of Phase 2, it is expected to continue to contribute positively to Aseana in the future."
The Company has also published its Quarterly Investment Update for the period to 30 June 2011, which can be obtained on its website at www.aseanaproperties.com/quarterly.htm.
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For further information:
Aseana Properties Limited | Tel: +603 6411 6388 |
Tan May Lee | Email: maylee.tan@ireka.com.my |
Panmure Gordon (UK) Limited | Tel: 020 7459 3600 |
Richard Gray / Andrew Potts / Brett Jacobs | Email: andrew.potts@panmure.com |
Tavistock Communications | Tel: 020 7920 3150 |
Jeremy Carey / James Verstringhe | Email: jcarey@tavistock.co.uk |
Notes to Editors:
London-listed Aseana Properties Limited (LSE: ASPL) is a property developer investing in Malaysia and Vietnam.
Aseana typically invests in development projects at pre-construction stage. Investment is made in projects where it is believed there will be a minimum 30% annualised return on equity ("ROE") on investments in Vietnam and a minimum 20% ROE on investments in Malaysia.
Ireka Development Management Sdn Bhd ("IDM") is the exclusive Development Manager for Aseana. It is a wholly-owned subsidiary of Ireka Corporation Berhad, a company listed on the Bursa Malaysia since 1993, which has over 40 years experience in construction and property development. IDM is responsible for the day-to-day management of Aseana's property portfolio and the introduction and facilitation of new investment opportunities.
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CHAIRMAN'S STATEMENT
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Introduction
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We are pleased to announce the half year results for Aseana Properties Limited ("Aseana") and its group of companies ("the Group") for the six months ended 30 June 2011. In the year to date, there was a small diverging trend between the Malaysian and Vietnamese property markets. Whilst the Malaysian property market has enjoyed a fairly robust recovery from the trough in 2009, the Vietnamese property market continues on a slow path to recovery. It is anticipated that the recent global events led by the European sovereign debt issue and downgrade of the US credit rating by Standard & Poor's may weigh on investor confidence in the short term. These global uncertainties affirm Aseana's conservative strategy of balancing the management of near term risks and investing in the future growth of the Company. Maintaining a strong balance sheet and liquidity will be key priorities for Aseana in the near term.
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Amidst these uncertainties, we are pleased to note that Aseana has recorded positive results for the six months ended 30 June 2011. In particular, the completion of SENI Mont' Kiara Phase 1 demonstrates the Company's ability to complete a large scale development over a period of challenging business conditions.
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Results
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For the six months ended 30 June 2011, the Group recorded revenue of US$189.67 million (H1 2010: US$2.35 million) and a net profit for the period of US$6.89 million (H1 2010: loss of US$13.33 million).
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For the period under review, the revenue and profit were mainly derived from SENI Mont' Kiara Phase 1 following its completion and issuance of certificate of occupation in April 2011.
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Net asset value for the Group has improved to US$200.52 million (31 December 2010: US$192.87 million) or US$0.943 per share (31 December 2010: US$0.904).
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Review of Activities & Property Portfolio
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Sales status:
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Projects | % sales as at July 2011 | % sales as at December 2010 |
Tiffani by i-ZEN | 95% | 95% |
SENI Mont' Kiara | 68% | 67% |
Sandakan Harbour Square - Phase 2 retail lots | 94% | 85% |
KL Sentral Office Towers & Hotel - Office tower 1 - Office tower 2 - Hotel | ย 100% 100% 100% | ย 100% 100% 100% |
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Malaysia
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In April 2011, the Group completed the construction of SENI Mont' Kiara Phase 1 consisting of 325 units of luxury condominiums. The completion of these units has contributed positively to the results of the Group for the period under review. Phase 2 of SENI Mont' Kiara is expected to be completed in September 2011. Approximately US$63.31 million of deferred revenue currently on the balance sheet of the Group is expected to be recognised as revenue in the income statement upon its completion. The Manager has put in place various marketing plans for the remaining units at SENI Mont' Kiara.
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In January 2011, the Company announced its withdrawal from an option to acquire a piece of development land in Mont' Kiara, Kuala Lumpur known as the TM Mont' Kiara Commercial Development. Aseana's withdrawal was due to uncertainty in receiving the necessary approvals from the relevant authorities.
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The remaining half of the year will be a busy period for Aseana as we work on completing the final phase of SENI Mont' Kiara as well as the retail mall and Four Points by Sheraton Hotel in Sandakan Harbour Square. Development planning for the KLCC Kia Peng Residential Project is also in full swing and we expect to launch the sales of the project in early 2012.
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Vietnam
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In May 2011, Aseana announced that it had mutually agreed with Prudential Property Investment Management (Singapore) Pte Ltd ("PRUPIM Singapore") to terminate the conditional agreement to sell a 49% stake in its wholly-owned subsidiary, ASPL PV Limited to the PRUPIM Vietnam Property Fund in respect of the Tan Thuan Dong residential development in Ho Chi Minh City. The decision to terminate the agreement was due to unforeseen delays in fulfilling the conditions of the agreement, which resulted in delays to the development timetable that did not meet with PRUPIM Vietnam Property Fund's investment criteria. These conditions were initially expected to be fulfilled by the end of 2010, but are now expected in Q3 2011. However, the exit by PRUPIM Vietnam Property Fund does not affect the commercial feasibility of the development nor the ability of Aseana and Nam Long Investment Corporation ("Nam Long") to complete the development as planned. Aseana will continue the partnership with Nam Long to develop the residential project on a 80:20 basis.
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In April 2011, Aseana entered into a conditional agreement to develop a residential project on a 56,212 sq m parcel of land in District 9 of Ho Chi Minh City, known as Phuoc Long B. The project, consisting of 37 villas and 460 apartment units, will be developed by Aseana and Nam Long on a 55:45 basis. The project is located in a sought after and established residential area with a river frontage. The planning and licensing process is currently underway with construction expected to begin in the fourth quarter of 2011.
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Aseana continues to make good progress on its City International Hospital development in the International Hi-Tech Healthcare Park, Ho Chi Minh City. Construction has now reached the fifth storey of the nine-storey building and is on course for completion by the end of 2012. Depending on market conditions, the Company is looking to launch the sales of first phase of the residential component of the project in early 2012.
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MOHAMMED AZLAN HASHIM
Chairman
23 August 2011
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DEVELOPMENT MANAGER'S REVIEW
Malaysia Economic Update
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The growth of the Malaysian economy moderated to 4.0% in the second quarter (Q1 2011: 4.9%). Overall growth continued to be supported by the sustained expansion of private domestic demand and strong exports of commodities and resource-based products. However, weakness in the advanced economies and the disruptions in the global manufacturing supply chain stemming from the disaster in Japan, were reflected in the slowdown in the manufacturing sector. The Government's growth forecast for 2011 remain unchanged at 5.0 to 6.0%.
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In October 2010, the Government launched the Economic Transformation Programme ("ETP"), which includes 131 high impact entry point projects across 12 national key economic areas, which will lead Malaysia towards achieving a high-income nation status with a per capita income of US$15,000 and create more than 3.3 million new jobs throughout the country by 2020. To date, 87 projects with total investment of US$56.2 billion, aimed at contributing an additional US$72.9 billion to the Gross National Income, have commenced.
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The Consumer Price Index increased to 3.5% in June 2011 (May 2011: 3.2%), mainly due to the increase in food prices, housing and utilities.
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As the economy continues to grow at a modest pace with the risk of rising inflation, the Central Bank of Malaysia raised its overnight policy rate by 25 basis points to 3% in May 2011. The statutory reserve requirement was also increased three times during the period under review, from 1 to 4%, as a pre-emptive measure to manage the risk of liquidity build-up in the market.
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Reflecting the ongoing uncertainties in global and regional economic outlook and concerns over rising inflation, the Consumer Sentiment Index and Business Conditions Index, as measured by the Malaysian Institute of Economic Research in Q2 2011 remains largely unchanged at 107.9 points (Q1 2011: 108.2 points) and 114.0 points (Q1 2011: 113.3 points) respectively.
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Overview of Property Market in Klang Valley, Malaysia ย Offices ย | |
โช | Total supply of office space in the Klang Valley increased by 1.108 million sq ft to 92.092 million sq ft in Q2 2011 due to the completion of seven new office buildings and adjustments made to some existing buildings. |
โช | In Q2 2011, the average occupancy rate of office space in the Klang Valley remained stable at 82%. |
โช | Market prices remained stable. Two en-bloc office transactions were recorded during Q2 2011: (i) Wisma Goldhill (Prime A office tower) was sold at a price of RM174.5 million (RM646 psf); (ii) Bangsar South (Prime B office tower) was sold for RM36.0 million (RM780 psf). ย |
Retail | |
โช | Market prices and rental rates of retail centres in the Klang Valley remained stable in Q2 2011. |
โช | Overall occupancy rate of Klang Valley retail centres increased slightly from 82.8% in Q1 2011 to 83.0% in Q2 2011. ย |
Residential | |
โช | Market prices and rentals were generally stable during the quarter. |
โช | Average occupancy rate for condominiums was at 85% in Q2 2011. |
โช | Tower B of Kiaramas Danai (137 units) located on Jalan Desa Kiara, Mont' Kiara launched in Q3 2010 with an average price of RM700 psf (US$232), achieved 76% take-up rate during the quarter. ย |
Hospitality | |
โช | Average occupancy rate increased from 63.9% to 70.1% in Q2 2011 |
โช | Average daily room rates in the Klang Valley generally increased between 1.8% and 13.3% q-o-q. |
โช | The average daily room rate for Traders Hotel (a four-star business class) reached RM400 (US$132) per room per night in Q2 2011, which is significantly higher than a number of International Class hotels, indicates that hotels in prime location and are well managed will outperform the market average |
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Source: Bank Negara Malaysia website, Jones Lang Wootton Q2 report, MIER, various publications
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Vietnam Economic Update
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Vietnam registered a healthy growth rate of 5.67% in the second quarter (Q1 2011: 5.43%), attributed by the expansion of the industrial and construction sector by 6.49%, the service sector by 2.57% and the agriculture, forestry and fishery sector by 2.08%. The Government forecasted a gross domestic product growth rate of 6.00% for 2011. Total committed foreign direct investment for the past seven months totaled US$9.0 billion, with realised foreign direct investment estimated at US$6.4 billion.
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In June 2011, the Government raised its inflation target for the year from 11.75% to 15.00%. The average Consumer Price Index ("CPI") for the past seven months rose by 16.89%, when compared to the same period in 2010. The increase is largely due to the increase in food prices, electricity tariffs and petrol prices.
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In moves to control inflation and bank lending, the State Bank of Vietnam ("SBV") increased the refinancing rate four times from 9% to 14% during the period under review. Additionally, the discount rate was also raised twice from 7% to 13%. However, the base lending rate was kept unchanged at 9%. In efforts to tighten limits on credit growth, SBV also issued a directive which requires entities and credit institutions to keep credit growth to below 20% per annum. In addition, it stipulates that loans outstanding for non-productive sectors, which includes real estate and securities, should only account for 22% of the total loans outstanding at 30 June 2011 and 16% as of 31 December 2011. Credit institutions that fail to comply would be subject to double the common reserve requirement ratio and restriction of operational scope. These actions have resulted in high lending rates and limited access to credit for home buyers and developers.
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The Business Confidence Index measured by WVB Vietnam Financial Intelligence Services Company Limited (WVB FISL) and PVFC Invest in the second quarter of 2011 declined by 21 points to 88 points, against the previous quarter, with most businesses expressing a lack of confidence in the country's economic recovery this year.
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Overview of Property Market in Vietnam ย Offices | |
โช | Ho Chi Minh City ("HCMC") office market has a total of 173 office buildings of all grades with a total leasable area of around 1.1 million sq m. |
โช | In Q2 2011, one Grade B and four Grade C office buildings in HCMC with a total of 43,300 sq m were completed in Q2 2011, an increase of 4% q-o-q and 23% y-o-y. |
โช | Average occupancy rate and rental for office building in HCMC for Q2 2011 is 82% (Q1 2011: 79%) and US$28 per sq m (Q1 2011: US$28 per sq m). |
โช | Due to the relatively large supply of HCMC office space expected to be completed in the coming few quarters, Grade A office rents declined by 1.9% q-o-q to US$34.21 per sq m per month, Grade B office rents decreased by 1.7% q-o-q to US$18.072 per sq m per month and Grade C office rents decreased by 1.4% q-o-q to US$15.65 per sq m per month. ย |
Retail | |
โช | In Q2 2011, total retail space in HCMC stands at approximately 630,000 sq m, with only 23% of the supply located within District 1, the Central Business District ("CBD"). |
โช | Average occupancy rate for retail space in HCMC declined from 90% in Q1 2011 to 85% in Q2 2011. |
โช | Average market rents in HCMC for Q2 2011 is US$65 per sq m (Q1 2011: US$68 per sq m), a decrease of 5% q-o-q and 14% y-o-y. ย |
Residential | |
โช | The average primary price of Grade A, Grade B and Grade C apartment for sale in HCMC in Q2 2011 was recorded at approx. US$2,223 per sq m, US$1,974 per sq m and US$674 per sq m respectively. |
โช | Due to the tightening of monetary policy, mortgage rates have increased to approx. 25% per annum at several banks. High mortgage rates and high Vietnamese Dong deposit rates (exceeding 14%) has dampened investors' interest in the real estate market. ย |
Hospitality | |
โช | International visitors' arrivals during the first half of 2011 totaled 1.65 million, an increase of 10% y-o-y |
โช | To date, there are 67 three- to five-star hotels operating in HCMC. No new hotels were completed in the second quarter. |
โช | Average occupancy rate of hotels in HCMC decreased from 80% in Q1 2011 to 59% in Q2 2011, due to the start of the low season. |
โช | Average room rates for decreased to US$83 per room per night in Q2 2011 (Q1 2011: US$94 per room per night). ย |
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Source: General Statistics Office of Vietnam, Savills, CBRE, various publications
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LAI VOON HON
President / Chief Executive Officer
Ireka Development Management Sdn. Bhd.
Development Manager
23 August 2011
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PROPERTY PORTFOLIO AS AT 30 JUNE 2011
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Project | Type | Effective Ownership | Approx. Gross Floor Area (sq m) | Approx. Land Area (sq m) | Scheduled Completion of Construction |
Completed projects | |||||
Tiffani by i-ZEN Kuala Lumpur, Malaysia | Luxury condominiums | 100% | 81,000 | 15,000 | Completed August 2009 |
1 Mont' Kiara by i-ZEN Kuala Lumpur, Malaysia | Office suites, office tower and retail mall | 100% | 96,000 | 14,000 | Completed November 2010 |
Projects under development | |||||
SENI Mont' Kiara Kuala Lumpur, Malaysia | Luxury condominiums | 100% | 225,000 | 36,000 | Phase 1: Completed April 2011 Phase 2: September 2011 |
Kuala Lumpur Sentral Office Towers & Hotel Kuala Lumpur, Malaysia | Office towers and a business hotel | 40% | 107,000 | 8,000 | Fourth quarter of 2012 |
Aloft Kuala Lumpur Sentral Hotel Kuala Lumpur, Malaysia | Business-class hotel | 100% | 28,000 | n/a | First quarter of 2013 |
Sandakan Harbour Square Sandakan, Sabah, Malaysia | Retail lots, hotel and retail mall | 100% | 126,000 | 48,000 | Retail lots completed in 2009 Hotel & retail : fourth quarter of 2011 |
Phase 1: City International Hospital, International Hi-tech Healthcare Park, Ho Chi Minh City, Vietnam | Private general hospital | 51% | 48,000 | 25,000 | Fourth quarter of 2012 |
Private equity investment | |||||
Equity investment in Nam Long Investment Corporation, an established developer in Ho Chi Minh City, Vietnam | Private equity investment | 16.4% | n/a | n/a | n/a |
Pipeline projects | |||||
KLCC Kia Peng Residential Project Kuala Lumpur, Malaysia | Luxury residential tower | 70% | 40,000 | 4,000 | n/a |
Kota Kinabalu seafront resort & residences Kota Kinabalu, Sabah, Malaysia | (i) Boutique resort hotel resort villas (ii) Resort homes | ย 100% 80% | ย n/a n/a | ย 142,000 185,000 | ย n/a n/a |
Other developments in International Hi-tech Healthcare Park, Ho Chi Minh City, Vietnam | Commercial and residential development with healthcare theme | 51% | 972,000 | 351,000 | n/a |
Tan Thuan Dong Residential Project Ho Chi Minh City, Vietnam | Apartments and commercial development | 80% | 83,000 | 20,000 | n/a |
Queen's Place Ho Chi Minh City, Vietnam | Residential, offices and retail mall | 65% | n/a | 8,000 | n/a |
Phuoc Long B Project, Ho Chi Minh City, Vietnam | Villas and high-rise apartments | 55% | 93,000 | 56,000 | n/a |
n/a: Not available / not applicable
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
SIX MONTHS ENDED 30 JUNE 2011
Unauditedย | Unauditedย | Auditedย | ย | ||
Six monthsย | Six monthsย | ย Yearย | ย | ||
endedย 30 Juneย | endedย 30 Juneย | endedย 31 Decemberย | ย | ||
2011ย | 2010ย | 2010ย | ย | ||
Continuing activities | Notes | US$'000ย | US$'000ย | US$'000ย | ย |
Revenue | 189,671ย | 2,349ย | 179,345ย | ย | |
Cost of sales | 5 | (164,055) | (6,490) | (177,184) | ย |
Gross profit/(loss) | 25,616ย | ย (4,141) | 2,161ย | ย | |
Other income | 413ย | 70ย | 679ย | ย | |
Administrative expenses | (664) | (318) | (1,017) | ย | |
Foreign exchange gain/(loss) | 6 | 403ย | (4,354) | (670) | ย |
Management fees | (1,724) | (2,173) | (3,994) | ย | |
Marketing expenses | (4,787) | (1,749) | (10,036) | ย | |
Other operating expenses | (1,257) | (1,056) | (2,816) | ย | |
Operating profit/(loss) | 18,000ย | (13,721) | (15,693) | ย | |
Finance income | 365ย | 469ย | 794ย | ย | |
Finance costs | (183) | (77) | (534) | ย | |
Net finance income | 182ย | 392ย | 260 | ย | |
Net profit/(loss) before taxation | 18,182ย | (13,329) | (15,433) | ย | |
Taxation | 7 | (11,289) | (6) | (5,795) | ย |
Profit/(loss) for the period/year | 6,893ย | (13,335) | (21,228) | ย | |
ย Other comprehensive income, net of tax Foreign currency translation differences for foreign operations | 49ย | 832ย | 3,107ย | ย | |
Increase in fair value of available-for- sale investments | -ย | -ย | 4,828ย | ย | |
Total other comprehensive income for the period/year | 49ย | 832ย | 7,935ย | ย | |
Total comprehensive income/(expense) for the period/year | 6,942ย | (12,503) | (13,293) | ย | |
Profit/(loss) attributable to: ย | ย | ||||
Equity holders of the parent ย | 7,198ย | (13,130) | (20,205) | ย | |
ย Non-controlling interests | (305) | (205) | (1,023) | ย | |
Total | 6,893ย | (13,335) | ย (21,228) | ย | |
Total comprehensive income/(expense) attributable to: ย | |||||
7,650ย | (12,108) | (12,206) | |||
Equity holders of the parent Non-controlling interests | ย (708) | ย (395) | ย (1,087) | ||
Total | 6,942ย | (12,503) | ย (13,293) | ย | |
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Earnings/(loss) per share | ย | ||||
Basic and diluted (US cents) | 8 | 3.39ย | ย (6.18) | (9.51) | ย |
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2011
Unaudited | Unauditedย | Auditedย | ||
ย ย | ย As atย 30 Juneย | Restatedย As atย 30 Juneย | As atย 31 Decemberย | |
2011ย | 2010ย | 2010ย | ||
Notes | US$'000ย | US$'000ย | US$'000ย | |
Non-current assets | ||||
Property, plant and equipment | 4,619ย | 1,058ย | 4,497ย | |
Investment in an associate | -ย | -ย | -ย | |
Available-for-sale investments | 22,052ย | 17,224ย | 22,052ย | |
Intangible assets | 15,937ย | 17,174ย | 17,174ย | |
Deferred tax assets | 10,187ย | 10,951ย | 19,400ย | |
Total non-current assets | 52,795ย | 46,407ย | 63,123ย | |
Current assets | ||||
Inventories | 347,023ย | 486,109ย | 431,473ย | |
Trade and other receivables | 37,143ย | 23,613ย | 31,499ย | |
Amount due from an associate | 207ย | 953ย | 382ย | |
Cash and cash equivalents | 43,426ย | 53,512ย | 150,385ย | |
Total current assets | 427,799ย | 564,187ย | 613,739ย | |
TOTAL ASSETS | 480,594ย | 610,594ย | 676,862ย | |
ย Equity | ||||
Share capital | 10,626ย | 10,626ย | 10,626ย | |
Share premium | 221,226ย | 221,226ย | 221,226ย | |
Capital redemption reserve | 1,874ย | 1,874ย | 1,874ย | |
Translation reserve | 3,623ย | 1,022ย | 3,171ย | |
Fair value reserve | 4,828ย | -ย | 4,828ย | |
Accumulated losses | (41,660) | (41,783) | (48,858) | |
Shareholders' equity | 200,517ย | 192,965ย | 192,867ย | |
Non-controlling interests | 3,638ย | 4,063ย | 4,346ย | |
Total equity | 204,155ย | 197,028ย | 197,213ย | |
ย Current liabilities | ||||
Deferred revenue | 63,310ย | 150,225ย | 188,462ย | |
Trade and other payables | 96,111ย | 73,435ย | 112,940ย | |
Bank loans and borrowings | 9 | 80,346ย | 59,175ย | 68,463ย |
Medium term notes | 11 | -ย | 43,260ย | 72,923ย |
Current tax liabilities | 11,956ย | 1,921ย | 12,637ย | |
Total current liabilities | 251,723ย | 328,016ย | 455,425ย | |
ย Non-current liabilities | ||||
Amount due to non-controlling interests | 3,082ย | 2,973ย | 3,048ย | |
Bank loans | 10 | 21,634ย | 43,952ย | 21,176ย |
Medium term notes | 11 | -ย | 38,625ย | -ย |
Total non-current liabilities | 24,716ย | 85,550ย | 24,224ย | |
Total liabilities | 276,439ย | 413,566ย | 479,649ย | |
TOTAL EQUITY AND LIABILITIES | ย 480,594ย | ย 610,594ย | 676,862ย |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2011 - UNAUDITED
Share Capital US$'000 | Share Premium US$'000 | Fair Value Reserve US$'000 | Capital Redemption Reserve US$'000 | Translation Reserve US$'000 | Accumulatedย Losses ย US$'000ย | Total Equity Attributable to Equity Holders of the Parent US$'000 | Non-ย Controllingย Interestย US$'000ย | Total Equity US$'000 | |
At 1 January 2011 | 10,626 | 221,226 | 4,828 | 1,874 | 3,171 | (48,858) | 192,867 | 4,346ย | 197,213 |
Profit for the period | - | - | - | - | - | 7,198ย | 7,198 | (305) | 6,893 |
Total other comprehensive income | - | - | - | - | 452 | -ย | 452 | (403) | 49 |
Total comprehensive income | - | - | - | - | 452 | 7,198ย | 7,650 | (708) | 6,942 |
Shareholders' equity at 30 June 2011 | 10,626 | 221,226 | 4,828 | 1,874 | 3,623 | (41,660) | 200,517 | 3,638ย | 204,155 |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2010 - UNAUDITED
Share ย Capital US$'000 | Share Premium US$'000 | Capital Redemption Reserve US$'000 | Translation Reserve US$'000 | Accumulatedย Lossesย US$'000ย | Total Equityย Attributable toย Equity Holders ofย the Parentย US$'000 | Non-ย Controllingย Interestย US$'000ย | Totalย Equityย US$'000ย | |
At I January 2010 | 10,626 | 221,226 | 1,874 | - | (28,653) | 205,073ย | 4,365ย | 209,438ย |
Acquisition of a subsidiary | - | - | - | - | -ย | -ย | 93ย | 93ย |
Loss for the period | - | - | - | - | (13,130) | (13,130) | (205) | (13,335) |
Total other comprehensive income | - | - | - | 1,022 | -ย | 1,022ย | ย (190) | 832ย |
Total comprehensive expense | - | - | - | 1,022 | (13,130) | (12,108) | (395) | (12,503) |
Shareholders' equity at 30 June 2010 | 10,626 | 221,226 | 1,874 | 1,022 | (41,783) | 192,965ย | 4,063ย | 197,028ย |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2010 - AUDITED
ย ย ย ย | ย ย ย Share Capital US$'000 | ย ย Share Premium US$'000 | Fair Value Reserve US$'000 | ย Capital Redemption Reserve US$'000 | ย Translation Reserve US$'000 | ย ย Accumulatedย Lossesย US$'000ย | Total Equityย Attributable toย Equityย Holders of theย Parentย US$'000ย | ย Non-ย Controllingย Interestย US$'000ย | ย ย ย Totalย ย Equityย US$'000ย |
At 1 January 2010 | 10,626 | 221,226 | - | 1,874 | - | (28,653) | 205,073ย | 4,365ย | 209,438ย |
Acquisition of a ย subsidiary | - | - | - | - | - | -ย | -ย | 93ย | 93ย |
Non-controlling interest contribution | - | - | - | - | - | -ย | -ย | 975ย | 975ย |
Loss for the year | - | - | - | - | - | (20,205) | (20,205) | (1,023) | (21,228) |
Total other comprehensive income | - | - | 4,828 | - | 3,171 | -ย | 7,999ย | (64) | 7,935ย |
Total comprehensive expense | - | - | 4,828 | - | 3,171 | (20,205) | (12,206) | (1,087) | (13,293) |
Shareholders' equity at 31 December 2010 | 10,626 | 221,226 | 4,828 | 1,874 | 3,171 | (48,858) | 192,867ย | 4,346ย | 197,213ย |
ย
ย
Consolidated Statement of Cash Flows
SIX MONTHS ENDED 30 JUNE 2011
Unauditedย | Unauditedย | Auditedย | |
Restatedย | |||
Six monthsย | Six monthsย | Yearย | |
endedย 30 Juneย | endedย 30 Juneย | endedย 31 Decemberย | |
2011ย | 2010ย | 2010ย | |
US$'000ย | US$'000ย | US$'000ย | |
Cash Flows from Operating Activities | |||
Net profit/(loss) before taxation | 18,182ย | (13,329) | (15,433) |
Finance income | (365) | (469) | (794) |
Finance costs | 183ย | 77ย | 534 |
Unrealised foreign exchange loss/(gain) | 540ย | 4,376ย | (618) |
Depreciation of property, plant and equipment | 65ย | 39ย | 117ย |
Goodwill amortisation | 1,237ย | -ย | -ย |
Property, plant and equipment written off | 1ย | -ย | -ย |
Operating profit/(loss) before working capital changes | 19,843ย | (9,306) | (16,194) |
Changes in working capital: | |||
Decrease/(increase) in inventories | 86,642ย | (45,865) | 520ย |
(Increase)/decrease in receivables | (5,644) | 779ย | (7,107) |
(Decrease)/increase in deferred revenue | (125,152) | 40,423ย | 78,660ย |
(Decrease)/increase in payables | (19,382) | (23,285) | 22,874ย |
Cash (used in)/generated from operations | (43,693) | (37,254) | 78,753ย |
Interest paid | (2,375) | (5,025) | (4,978) |
Tax paid | (2,614) | (3,900) | (7,394) |
Net cash (used in)/from operating activities | (48,682) | (46,179) | 66,381ย |
Cash Flows From Investing Activities | |||
Acquisition of subsidiaries, net of cash | -ย | (18) | (18) |
Repayment from/(advances to) associate | 175ย | (168) | 403ย |
Proceeds from disposal of property, plant and equipment | -ย | -ย | 17ย |
Purchase of property, plant and equipment | (173) | (35) | (3,573) |
Finance income received | 365ย | 469 | 794ย |
Net cash from/(used in) investing activities | 367ย | 248ย | (2,377) |
Cash Flows From Financing Activities | |||
Repayment of bank borrowings | (82,613) | (7,199) | (44,763) |
Drawdown of borrowings | 31,487ย | 48,110ย | 72,590ย |
Net cash (used in)/from financing activities | (51,126) | 40,911ย | 27,827ย |
Unauditedย | Unauditedย | Audited | |
Restatedย | |||
Six monthsย | Six monthsย | Year | |
endedย 30 Juneย | endedย 30 Juneย | ended 31 December | |
2011ย | 2010ย | 2010 | |
US$'000ย | US$'000ย | US$'000 | |
NET CHANGE IN CASH AND CASH EQUIVALENTS DURING THE PERIOD/YEAR | (99,441) | (5,020) | 91,831 |
Effect of changes in exchange rates | 1,938ย | (3,588) | 2,102 |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD/YEAR | 140,929ย | 46,996ย | 46,996 |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD/YEAR | 43,426ย | 38,388ย | 140,929 |
ย
ย
ย
ย
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2011
ย
1 General Information
ย
The principal activities of the Group are acquisition, development and redevelopment of upscale residential, commercial and hospitality projects in the major cities of Malaysia and Vietnam. The Group typically invests in development projects at the pre-construction stage and may also selectively invests in projects in construction and newly completed projects with potential capital appreciation.
2 Summary of Significant Accounting Policies
ย
2.1 Basis of Preparation
ย
The interim condensed consolidated financial statements for the six months ended 30 June 2011 has been prepared in accordance with IAS 34, Interim Financial Reporting.
ย
The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2010 which has been prepared in accordance with IFRS.
ย
Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings.
ย
The interim results have not been audited nor reviewed and do not constitute statutory financial statements.
ย
The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.
ย
The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2010 as described in those annual financial statements.
ย
The interim report and financial statements were approved by the Board of Directors on 23 August 2011.
ย
ย
2.2 Restatement
ย
The comparative figures in the Consolidated Statement of Financial Position have been restated as follows:
ย
(i) | "Land held for property development", "Property development cost" and "Inventories" has been aggregated as "Inventories"; and |
(ii) | "Trade and other payables" has been further analysed into "Trade and other payables" and "Deferred revenue". |
ย
These restatements have been made to conform with current year presentation that has been amended to align with accepted disclosure practices of developers listed on recognised exchanges preparing accounts in accordance with IFRS. These restatements have also led to changes in the presentation of the following items in the Statement of Cash Flows: Increase in inventories, Increase in property development costs, Increase in deferred revenue, Decrease in payables and Purchase of land held for property development.
ย
The comparative figures in the Consolidated Statement of Cash Flows have been restated to separately disclose interest paid of US$5,025,287. These restatements have been made to comply with the requirements of paragraph 32 of IFRS 7.
ย
The net effect of the statements on the Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows for the financial period ended 30 June 2010 is as follows:
As restated | Asย previouslyย ย statedย | ย | ||||||
US$'000 | US$'000ย | ย | ||||||
ย | ||||||||
Statement of Financial Position | ย | |||||||
Land held for property development | -ย | 22,869ย | ย | |||||
Property development costs | -ย | 440,812ย | ย | |||||
Inventories | 486,109ย | 22,428ย | ย | |||||
Deferred revenue | 150,225ย | -ย | ย | |||||
Trade and other payables | 73,435ย | 223,660ย | ย | |||||
ย Statement of Cash Flows | ย | |||||||
Finance costs | 77ย | -ย | ย | |||||
Increase in inventories | (45,865) | 478ย | ย | |||||
Increase in property development costs | -ย | (51,022) | ย | |||||
ย | Increase in deferred revenue | 40,423ย | -ย | |||||
ย | Decrease in payables | (23,285) | 17,138ย | |||||
ย | Interest paid | (5,025) | -ย | |||||
ย | Purchase of land held for property development | -ย | (269) | |||||
ย | ||||||||
The Directors have not included a third balance sheet in these financial statements on the grounds of materiality.
ย
ย
3 SegmentAL Information
ย
The Group's assets and business activities are managed by Ireka Development Management Sdn. Bhd. ("IDM") as the Development Manager under a management agreement dated 27 March 2007.
ย
Segmental information represents the level at which financial information is reported to the Executive Management of IDM, being the chief operating decision maker as defined in IFRS 8. The Executive Management consists of the Chief Executive Officer, the Chief Financial Officer and the Chief Operating Officer of IDM. The management determines the operating segments based on reports reviewed and used by the Executive Management for strategic decision making and resource allocation. For management purposes, the Group is organised into project units.
ย
The Group's reportable operating segments are as follows:
ย
(i) | Ireka Land Sdn. Bhd. - develops i-ZEN@Kiara I, Tiffani by i-ZEN and 1 Mont' Kiara by i-ZEN; |
(ii) | ICSD Ventures Sdn. Bhd. - develops Sandakan Harbour Square; and |
(iii) | Amatir Resources Sdn. Bhd. - develops SENI Mont' Kiara. |
ย
Other non-reportable segments comprise the Group's Vietnam subsidiaries which are developing the Hi-Tech Healthcare Park and other new development projects. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2011 and 2010.
ย
Information regarding the operations of each reportable segment is included below. The Executive Management monitors the operating results of each segment for the purpose of performance assessments and making decisions on resource allocation. Performance is based on segment gross profit and profit before taxation, which the Executive Management believes are the most relevant in evaluating the results relative to other entities in the industry. Segment assets and liabilities are presented inclusive of inter-segment balances and inter-segment pricing is determined on an arm's length basis.
ย
The Group's revenue generating development projects are currently only in Malaysia since development activities in Vietnam are at preliminary stage.
ย
Operating Segments - ended 30 June 2011 | ||||
Irekaย Landย Sdn. Bhd.ย | ICSDย ย Venturesย ย Sdn. Bhd.ย | Amatirย Resourcesย Sdn. Bhd.ย | Totalย | |
US$'000ย | US$'000ย | US$'000ย | US$'000ย | |
Segment (loss)/profit before taxation | (215) | (161) | 20,262ย | 19,886ย |
Included in the measure of segment (loss)/profit are: | ย | |||
Revenue | 1,060ย | 3,545ย | 184,870ย | 189,475ย |
Cost of acquisition written down | (84) | (754) | (22,825) | (23,663) |
Goodwill amortisation | -ย | -ย | (1,237) | (1,237) |
Marketing expenses | -ย | (54) | (4,733) | (4,787) |
Depreciation of property, plant and equipment | (13) | (10) | (1) | (24) |
Finance costs | -ย | (65) | -ย | (65) |
Finance income | 175ย | 39ย | 78ย | 292ย |
Ireka ย Land Sdn. Bhd. | ICSD ย Ventures ย Sdn. Bhd. | Amatir ย Resources ย Sdn. Bhd. | Total | |
US$'000 | US$'000 | US$'000 | US$'000 | |
Segment assets | 37,993 | 83,191 | 216,558 | 337,742 |
Included in the measure of segment assets are: | ||||
Addition to non-current assets other than financial instruments and deferred tax assets | - | 37 | - | 37 |
ย Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items ย | ||||
Profit or loss | US$'000ย |
Total profit or loss for reportable segments | 19,886ย |
Other non-reportable segments | (1,618) |
Depreciation | (41) |
Finance cost | (118) |
Finance income | 73ย |
Consolidated profit before tax | 18,182ย |
ย
Operating Segments - ended 30 June 2010 | ||||
Irekaย ย Landย Sdn. Bhd.ย | ICSDย Venturesย ย Sdn. Bhd.ย | Amatirย Resourcesย ย Sdn. Bhd.ย | Totalย | |
US$'000ย | US$'000ย | US$'000ย | US$'000ย | |
Segment loss before taxation | (5,477) | (383) | (1,857) | (7,717) |
Included in the measure of segment loss are: | ||||
Revenue | 1,047ย | 1,182ย | -ย | 2,229ย |
Cost of acquisition written down | (4,326) | (407) | -ย | (4,733) |
Marketing expenses | (483) | (46) | (1,220) | (1,749) |
Depreciation of property, plant and equipment | (14) | (2) | -ย | (16) |
Finance costs | -ย | -ย | -ย | -ย |
Finance income | 50ย | 15ย | 24ย | 89ย |
Segment assets | 177,081ย | 60,457ย | 235,560ย | 473,098ย |
Included in the measure of segment assets are: | ||||
Addition to non-current assets other than financial instruments and deferred tax assets | -ย | -ย | -ย | -ย |
ย ย Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items ย | ||||
Profit or loss | US$'000ย |
Total profit or loss for reportable segments | (7,717) |
Other non-reportable segments | (5,892) |
Depreciation | (23) |
Finance cost | (77) |
Finance income | 380ย |
Consolidated loss before tax | (13,329) |
ย
Operating Segments - ended 31 December 2010
Irekaย Landย Sdn. Bhd.ย | ICSDย Venturesย Sdn. Bhd.ย | Amatirย Resourcesย Sdn. Bhd.ย | ย ย Totalย | ||||||
US$'000ย | US$'000ย | US$'000ย | US$'000ย | ||||||
Segment loss before taxation | (5,977) | (1,101) | (4,631) | (11,709) | |||||
Included in the measure of segment loss are: | ย | ||||||||
Revenue | 176,337ย | 2,441ย | -ย | 178,778ย | |||||
Cost of acquisition written down | (28,329) | (1,276) | -ย | (29,605) | |||||
Marketing expenses | (6,219) | (204) | (3,613) | (10,036) | |||||
Depreciation of property, plant and equipment | ย (28) | ย (7) | ย -ย | ย (35) | |||||
Finance costs | -ย | (400) | -ย | (400) | |||||
Finance income | 253ย | 64ย | 56ย | 373ย | |||||
Segment assets | 139,927ย | 75,767ย | 316,015ย | 531,709ย | |||||
Included in the measure of segment assets are: | |||||||||
Addition to non-current assets other than financial instruments and deferred tax assets | -ย | 67ย | -ย | 67ย | |||||
ย | |||||||||
Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items | ย | ||||||||
Profit or loss | US$'000ย |
Total profit or loss for reportable segments | (11,709) |
Other non-reportable segments | (3,929) |
Depreciation | (82) |
Finance cost | (134) |
Finance income | 421ย |
Consolidated loss before tax | (15,433) |
ย
ย
30 June 2011 US$'000 | Revenue | Depreciationย | Financeย ย costsย | Finance income | Segment ย assets | Addition to non- current assets |
Total reportable segment | 189,475 | (24) | (65) | 292 | 337,742 | 37 |
ย Other non-reportable segments | 196 | (41) | (118) | 73 | 142,852 | 136 |
Consolidated total | 189,671 | (65) | (183) | 365 | 480,594 | 173 |
ย
30 June 2010 US$'000 | Revenue | Depreciationย | Financeย ย costsย | Finance income | Segment assets | Addition to non-current assets |
Total reportable segment | 2,229 | (16) | -ย | 89 | 473,098 | - |
Other non-reportable segments | 120 | (23) | (77) | 380 | 137,496 | 35 |
Consolidated total | 2,349 | (39) | (77) | 469 | 610,594 | 35 |
ย
ย
31 December 2010 US$'000 | Revenue | Depreciationย | Financeย ย costsย | Finance ย income | Segment ย assets | Addition to non- current assets |
Total reportable segment | 178,778 | (35) | (400) | 373 | 531,709 | 67 |
ย Other non-reportable segments | 567 | (82) | (134) | 421 | 145,153 | 3,506 |
Consolidated total | 179,345 | (117) | (534) | 794 | 676,862 | 3,573 |
ย
ย
Geographical Information - ended 30 June 2011
ย
Malaysia | Vietnam | Others | Consolidated | |
US$'000 | US$'000 | US$'000 | US$'000 | |
Revenue | 189,671 | - | - | 189,671 |
Non-current assets | 19,028 | 33,767 | - | 52,795 |
ย
Others include Jersey, British Virgin Islands and Singapore.
ย
Geographical Information - ended 30 June 2010
ย
Malaysia | Vietnam | Others | Consolidated | |
US$'000 | US$'000 | US$'000 | US$'000 | |
Revenue | 2,349 | - | - | 2,349 |
Non-current assets | 17,765 | 28,642 | - | 46,407 |
ย
Others include Jersey, British Virgin Islands and Singapore.
ย
Geographical Information - ended 31 December 2010
ย
Malaysia | Vietnam | Others | Consolidated | |
US$'000 | US$'000 | US$'000 | US$'000 | |
Revenue | 179,345 | - | - | 179,345 |
Non-current assets | 29,267 | 33,856 | - | 63,123 |
ย
Others include Jersey, British Virgin Islands and Singapore.
ย
For the financial year ended 31 December 2010, major customers exceed 10% of the Group's total revenues are as follows:
ย
Revenue | Segments | |
US$'000 | ||
1MK Office Sdn. Bhd. | 31,150 | Ireka Land Sdn. Bhd. |
1MK Retail Sdn. Bhd. | 72,580 | Ireka Land Sdn. Bhd. |
ย
4 Seasonality
ย
The Group's business operations are not materially affected by seasonal factors for the period under review.
ย
ย
5 Cost of Sales
ย
Unaudited | Unaudited | Audited | |
Six months | Six months | Year | |
ย | ended 30 June | ended 30 June | ended 31 December |
ย | 2011 | 2010 | 2010 |
ย | US$'000 | US$'000 | US$'000 |
Direct costs attributable to property development | 164,055 | 6,490 | 177,184 |
ย
ย
6 Foreign exchange GAin/(loss)
Unaudited | Unauditedย | Auditedย | |
Six months | Six monthsย | Yearย | |
ย | ended 30 June | endedย 30 Juneย | endedย 31 Decemberย |
ย | 2011 | 2010ย | 2010ย |
ย | US$'000 | US$'000ย | US$'000ย |
Foreign exchange gain/(loss) comprises: | |||
Unrealised foreign exchange (loss)/gain | (540) | (4,376) | 618ย |
Realised foreign exchange gain/(loss) | 943 | 22ย | (1,288) |
ย | 403 | (4,354) | (670) |
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ย
7 Taxation
Unaudited | Unauditedย | Auditedย | |
Six month | Six monthย | Yearย | |
ended 30 June | endedย 30 Juneย | endedย 31 Decemberย | |
2011 | 2010ย | 2010ย | |
US$'000 | US$'000ย | US$'000ย | |
Current tax expense | 1,660 | 3,308ย | 16,788ย |
Deferred tax expense/(income) | 9,629 | (3,302) | (10,993) |
Total tax expense for the period/year | 11,289 | 6ย | 5,795ย |
ย
The numerical reconciliation between the income tax expenses and the product of accounting results multiplied by the applicable tax rate is computed as follows:
ย
Unauditedย | Unauditedย | Auditedย | |
Six monthsย | Six monthsย | Yearย | |
endedย 30 Juneย | endedย 30 Juneย | endedย 31 Decemberย | |
2011ย | 2010ย | 2010ย | |
US$'000ย | US$'000ย | US$'000ย | |
ย Accounting profit/(loss) | ย 18,182ย | (13,329) | ย (15,433) |
Income tax at a rate of 25%* | 4,546ย | (3,332) | (3,858) |
Add : | |||
Tax effect of expenses not deductible in determining taxable profit | 6,955ย | 2,624ย | 10,076ย |
Deferred tax assets arising from unused tax losses not recognised | 96ย | 752ย | 245ย |
Tax effect of different tax rates in subsidiaries** | 95ย | 75ย | 288ย |
Less : | |||
Tax effect of income not taxable in determining taxable profit | (403) | (113) | ย (555) |
Utilisation of deferred tax assets not recognised previously | -ย | -ย | (177) |
Over provision | -ย | -ย | (224) |
Total tax expense for the period/year | 11,289ย | 6ย | 5,795ย |
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ย
* | The applicable corporate tax rate in Malaysia and Vietnam is 25%. |
** | The applicable corporate tax rate in Singapore is 17%. A subsidiary of the Group, Hoa Lam-Shangri-La Healthcare Ltd Liability Co was granted preferential corporate tax rate of 10%. The preferential income tax was given by the government due to the subsidiary involvement in the hospital and education industry. |
ย
Following changes to the Income Tax (Jersey) Law 1961 (as amended), the Company is no longer able to apply to be tax-exempt. From 1 January 2009 the Company has been treated as a tax resident for the purpose of Jersey tax laws and is subject to a tax rate of 0%. This has lead to a cost saving of ยฃ600 p.a. which was the fee for the exempt application.
ย
A Goods and Services Tax was introduced in Jersey in May 2008. Theย Company has been registered as an International Services Entity so that it does not have to charge or pay local GST. The cost for this application has been ยฃ100 p.a., increasing to ยฃ200 from 1 January 2011.
ย
The Directors intend to conduct the Group's affairs such that the central management and control is not exercised in the United Kingdom and so that neither the Company nor any of its subsidiaries carries on any trade in the United Kingdom. The Company and its subsidiaries will thus not be residents in the United Kingdom for taxation purposes. On this basis, they will not be liable for United Kingdom taxation on their income and gains other than income derived from a United Kingdom source.
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ย
8 EARNINGS/(Loss) Per Share
ย
Basic and diluted earnings/(loss) per ordinary share
The calculation of basic and diluted earnings/(loss) per ordinary share for the period/year ended was based on the profit/(loss) attributable to ordinary shareholders and a weighted average number of ordinary shares outstanding, calculated as below:
ย
Profit/(loss) attributable to ordinary shareholders
Unaudited | Unauditedย | Auditedย | |
Six months | Six monthsย | Yearย | |
ended 30 June | endedย 30 Juneย | endedย 31 Decemberย | |
2011 | 2010ย | 2010ย | |
US$'000 | US$'000ย | US$'000ย | |
Profit/(loss) attributable for the period/year attributable to the owners | 7,198 | (13,130) | (20,205) |
Weighted average number of shares | 212,525 | 212,525ย | 212,525ย |
Earnings/(loss) per share | |||
Basic and diluted (US cents) | 3.39 | (6.18) | (9.51) |
ย
ย
ย
9 Bank Loans and Borrowings
Unaudited | Unaudited | Audited | |
As at | As at | As at | |
30 June | 30 June | 31 December | |
2011 | 2010 | 2010 | |
US$'000 | US$'000 | US$'000 | |
Bank loans (Note 10) | 80,346 | 44,051 | 59,007 |
Bank overdraft | - | 15,124 | 9,456 |
80,346 | 59,175 | 68,463 |
ย
ย
The effective interest rates of the bank loans and borrowings for the period ranged from 4.95% to 7.75% (2010: 0.80% to 5.75%) per annum.
ย
Borrowings were denominated in Malaysian Ringgit and United States Dollars
ย
Bank loans were repayable by monthly or quarterly instalments and the overdraft is repayable on demand.
ย
Bank loans were secured by land held under property development cost and corporate guarantee of the Company.
ย
The carrying amount of borrowings approximates to its fair value at the statement of financial position date.
ย
ย
10 Bank Loans
ย
Unauditedย | Unauditedย | Auditedย | |
As atย | As atย | As atย | |
30 Juneย | 30 Juneย | 31 Decemberย | |
2011ย | 2010ย | 2010ย | |
US$'000ย | US$'000ย | US$'000ย | |
Outstanding loans | 101,980ย | 88,003ย | 80,183ย |
Less: | |||
Repayment due within twelve months (Note 9) | (80,346) | ย (44,051) | (59,007) |
Repayment due after twelve months | 21,634ย | 43,952ย | 21,176ย |
ย
The effective interest rates of the bank loans for the period ranged from 4.95% to 7.75% (2010: 4.75% to 6.88%) per annum.
ย
Bank loans were secured by land held under property development costs and corporate guarantee of the Company.
ย
Bank loans were denominated in Malaysian Ringgit and United State Dollars.
ย
Bank loans were repayable by monthly or quarterly instalments.
ย
ย
11 Medium Term Notes
ย
Unaudited | Unauditedย | Auditedย | |
As at | As atย | As atย | |
30 June | 30 Juneย | 31 Decemberย | |
2011 | 2010ย | 2010ย | |
US$'000 | US$'000ย | US$'000ย | |
Outstanding medium term notes | - | 81,885ย | 72,923ย |
Less: | |||
Repayment due within twelve months | - | ย (43,260) | (72,923) |
Repayment due after twelve months | - | 38,625ย | -ย |
ย
The medium term notes were issued by a subsidiary, acquired on 30 March 2009, to fund a development project known as 1 Mont' Kiara in Malaysia. The medium term notes were redeemed on 6 January 2011.
ย
ย
12 Related Party Transactions
ย
Transactions between the Group and the Company with Ireka Corporation Berhad ("ICB") and its group of companies are classified as related party transactions based on ICB's 23.02% shareholding in the Company.
ย
ย | Unaudited | Unaudited | Audited |
ย | Six months | Six months | Year |
ย | ended 30 June | ended 30 June | ended 31 December |
ย | 2011 | 2010 | 2010 |
ย | US$'000 | US$'000 | US$'000 |
Project management fee charged to an associate | 196 | 120 | 567 |
Payment of accounting and financial reporting services fee to an ICB subsidiary | ย 25 | ย - | ย - |
Payment of construction progress claims made by an ICB subsidiary | ย 39,545 | ย 53,426 | ย 112,176 |
Payment of management fees to an ICB subsidiary | ย 1,801 | ย 2,173 | ย 4,142 |
Payment of sales and administrative fee and marketing commissions to an ICB subsidiary | 105 | 802 | 1,053 |
Payment of secretarial and administrative services fee to an ICB subsidiary | ย 25 | ย - | ย - |
Site staff salary costs reimbursed to an ICB subsidiary | 236 | 200 | 644 |
Remuneration of key management personnel - Salaries | 42 | 43 | 90 |
ย
ย
13 Dividends
ย
The Company has not paid or declared any dividends during the financial period ended 30 June 2011.
ย
ย
14 Events after the Statement of Financial Position Date
There were no material adjusting events after the statement of financial position date ended 30 June 2011 that have not been reflected in the interim consolidated financial statements.
ย
ย
15 Interim Statement
ย
Copies of this interim statement are available on the Company's website www.aseanaproperties.com or from the Company's registered office at 12 Castle Street, St. Helier, Jersey, JE2 3RT, Channel Islands.
ย
ย
Principal Risks and Uncertainties
ย
The Board has overall responsibility for risk management and internal control. The following have been identified previously as the areas of principal risk and uncertainty facing the Company, and they remain relevant in the second half of the year.
ย
โข | Economic |
โข | Strategic |
โข | Regulatory |
โข | Law and regulations |
โข | Tax regimes |
โข | Management and control |
โข | Operational |
โข | Financial |
โข | Going concern |
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For greater detail, please refer to page 16 of the Company's Annual Report for 2010, a copy of which is available on the Company's website www.aseanaproperties.com.
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RESPONSIBILITY STATEMENT
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We confirm that to the best of our knowledge:
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a) | The condensed consolidated financial statements have been prepared in accordance with IAS 34 (Interim Financial Reporting); |
b) | The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and |
c) | The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein). |
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By order of the Board
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Mohammed Azlan Hashim | Christopher Henry Lovell |
Director | Director |
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23 August 2011
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