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UNAUDITED RESULTS FOR FULL YEAR ENDED 31 DECEMBER 2003

 

PART I – INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

 

1(a)

An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year

 

 

GROUP

 

31.12.2003

31.12.2002*

+/(–)

 

$’000

$’000

%

 

 

 

 

Revenue

      40,453

      53,760

(24.75)

Cost of sales

    (18,347)

    (34,140)

(46.26)

Gross profit

      22,106

      19,620

12.67

Other income

      11,786

      15,084

(21.86)

General and administrative costs

    (15,292)

    (14,394)

6.24

Selling and distribution costs

     (3,345)

     (5,186)

(35.50)

Other operating costs

          775

     (3,899)

(119.88)

Operating profit

      16,030

      11,225

42.81

Finance costs

     (1,132)

        (825)

37.21

Share of results of associated companies

        (365)

        (192)

90.10

Profit before taxation

      14,533

      10,208

42.37

Taxation

     (1,028)

          653

(257.43)

Profit after taxation

      13,505

      10,861

24.34

Minority interests

            64

            61

4.92

Profit attributable to shareholders

      13,569

      10,922

24.24

 

 

 

 

 

 

 

* Comparative information for year ended 31 December 2002 has been reclassified to conform with current year presentation.

 

 

 

 

 

GROUP

 

31.12.2003

31.12.2002

+/(–)

 

$’000

$’000

%

 

 

 

 

Investment income

       1,136

         954

19.08

Other income including interest income

      15,513

     19,636

(21.00)

Interest on borrowings

     (1,132)

      (825)

37.21

Depreciation and amortisation and impairment loss on fixed assets

     (1,650)

    (1,115)

47.98

Write-back/(Allowance) for doubtful debts and bad debts written off

           16

      (265)

(106.04)

Write-off for stock obsolescence

               

              

        

Write-back/(Provision) for impairment in value of investments

       1,886

    (2,260)

(183.45)

Foreign exchange gain

       4,316

         395

992.66

Adjustments for (under) or overprovision of tax in respect of prior years

       1,591

         437

264.07

Gain on sale of investments

          260

      2,280

(88.60)

Gain on sale of investment properties (included in other income)

          197

         266

(25.94)

Gain on sale of fixed assets (included in other income)

           15

            1

       n.m.

Exceptional items:-

 

 

 

- Provision for doubtful debts due from affiliated companies/joint venture

       (272)

    (3,104)

    (91.24)

- Provision for impairment in value of investments

       (840)

    (2,737)

    (69.31)

- Provision for proportionate guarantee

               

      (800)

   (100.00)

- Gain on sale of a subsidiary (included in other income)

               

         639

   (100.00)

- Write-back of provision for obligation and warranties

               

      5,000

   (100.00)

- Negative goodwill amortised (included in other income)

       3,410

      8,299

    (58.91)

Extraordinary items

           

           

        

 

 

 

 

 

 

 

n.m. denotes not meaningful.

1(b)(i)

A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year

 

 

 

 

GROUP

COMPANY

 

As at 31.12.2003

As at 31.12.2002

As at 31.12.2003

As at 31.12.2002

 

$’000

$’000

$’000

$’000

 

 

 

 

 

Fixed assets

       13,536

        14,638

        4,945

         5,112

Negative goodwill

                 

       (3,410)

                

             

Investment properties

     128,130

      122,446

                

             

Investment in subsidiaries

                 

              

     456,373

      463,030

Investment in associated companies

       59,256

      231,600

                

             

Long term investments

     100,355

      107,479

        3,323

         3,323

Other receivables

           357

            503

                

             

Reinsurer's share of technical

  provisions

 

 

 

 

Provision for unearned premiums

        3,211

         2,393

                

             

Provision for outstanding claims

        7,890

        10,939

                

             

 

 

 

 

 

Current assets

 

 

 

 

Short term investments

       43,157

        53,691

                

             

Inventories

           386

            263

                

             

Trade receivables

        3,914

         7,071

                

             

Amount due from associated companies

       93,979

        93,194

                

             

Amount due from subsidiaries

                 

              

            10

       12,579

Amount due from affiliated companies

           636

            283

          619

              5

Other receivables

        5,855

         8,299

        1,214

           818

Cash and bank balances

       63,140

        51,216

          189

           785

 

     211,067

      214,017

        2,032

       14,187

 

 

 

 

 

Current liabilities

 

 

 

 

Trade payables and accruals

      (3,408)

       (3,577)

                

             

Other payables

      (8,976)

       (9,539)

     (2,459)

      (1,383)

Amount due to subsidiaries

                 

              

    (39,857)

     (42,872)

Deferred premiums

      (2,488)

       (1,592)

                

             

Hire purchase creditors

                 

           (49)

                

             

Bank overdrafts

        (129)

         (308)

                

             

Bank loans

    (10,801)

       (2,144)

                

             

Provision for taxation

      (1,496)

         (897)

                

             

 

    (27,298)

     (18,106)

    (42,316)

     (44,255)

 

 

 

 

 

Net current assets/(liabilities)

     183,769

      195,911

    (40,284)

     (30,068)

 

 

 

 

 

Non current liabilities

 

 

 

 

Bank loans

      (9,879)

     (17,111)

                

             

Hire purchase creditors

          (37)

           (86)

                

             

Other payables

                 

         (186)

                

             

Tenancy deposits

        (150)

                  

                

                  

Deferred taxation

      (5,626)

       (6,500)

         (45)

             

Amount due to an associated

  company

                 

    (152,626)

                

             

Provision for unearned premiums

    (10,333)

     (12,306)

                

             

Provision for outstanding claims

    (44,445)

     (51,241)

                

             

Provision for premium deficiency

      (1,696)

         (871)

                

             

Contingency reserve

                 

           (85)

                

             

 

    (72,166)

    (241,012)

         (45)

             

 

     424,338

      441,487

     424,312

      441,397

 

 

 

 

 

 

 

 

 

 

 

 

GROUP

COMPANY

 

As at 31.12.2003

As at 31.12.2002

As at 31.12.2003

As at 31.12.2002

 

$’000

$’000

$’000

$’000

 

 

 

 

 

Share capital

     163,255

      163,240

     163,255

      163,240

Share premium

        8,681

         8,681

        8,681

         8,681

Capital reserve

     130,070

      150,590

     230,761

      237,420

Revenue reserve

     121,216

      120,380

      21,615

       32,056

Currency translation adjustment reserve

        1,090

       (1,494)

                

             

Share capital and reserves

     424,312

      441,397

     424,312

      441,397

Minority interests

            26

             90

                

             

 

     424,338

      441,487

     424,312

      441,397

 

 

 

 

 

 

 

 

 

1(b)(ii)

Aggregate amount of group’s borrowings and debt securities

 

 

 

Amount repayable in one year or less, or on demand

 

 

 

As at 31.12.2003

As at 31.12.2002

Secured

Unsecured

Secured

Unsecured

 

 

 

 

$10,930,000

$2,452,000

 

 

 

 

 

 

 

Amount repayable after one year

 

 

 

As at 31.12.2003

As at 31.12.2002

Secured

Unsecured

Secured

Unsecured

 

 

 

 

$9,879,000

$17,111,000

 

 

 

 

 

 

 

Details of any collateral

 


The amount of long term bank loans repayable after one year and an amount of $10.09 million (31.12.2002: $0.68 million) of long and short term bank loans repayable within one year of a subsidiary are secured over the investment properties of the Group.  Short term bank overdrafts of $0.13 million (31.12.2002: $0.31 million) of two subsidiaries are secured by corporate guarantees supported by charges over time deposits.  Short term bank loans of $0.71 million (31.12.2002: $1.46 million) of another subsidiary are secured by its plant and machinery.

 

 

 

 

 

1(c)

A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year

 

 

 

 

GROUP

 

31.12.2003

31.12.2002

 

$’000

$’000

 

 

 

Cash flow from operating activities:

 

 

 

 

 

Operating profit

        16,030

        11,225

 

 

 

Adjustments for:-

 

 

Interest income

       (7,430)

       (8,577)

Depreciation and impairment loss on fixed assets

         1,650

         1,115

Exchange gain arising from adoption of INT FRS 19

       (1,750)

             

Exchange realignment

            349

             42

Negative goodwill amortised

       (3,410)

       (8,299)

Gain on sale of investment properties

         (197)

         (266)

Gain on sale of fixed assets

           (15)

            (1)

Gain on sale of a subsidiary

             

         (639)

Loss on sale of an associated company

             15

             

Allowance for doubtful receivables from affiliated companies

            272

         3,104

Provision for outstanding claims

         8,425

        19,783

Write-back of provision for obligation and warranties

             

       (5,000)

Write-back of provision for unearned premiums

       (1,436)

       (2,516)

Fixed assets written off

             18

             

 

       (3,509)

       (1,254)

Operating income before reinvestment in working capital

        12,521

         9,971

 

 

 

Decrease in receivables and short term investments

        19,236

         1,047

(Increase)/Decrease in inventories

         (123)

            463

(Decrease)/Increase in payables

       (1,078)

         4,378

 

        18,035

         5,888

Cash generated from operations

        30,556

        15,859

 

 

 

Net claims paid

     (12,173)

     (17,221)

Interest received

         7,703

         7,670

Income from interests in associated companies

             

         5,000

Interest paid

       (1,132)

         (864)

Income taxes paid

         (342)

           (91)

 

       (5,944)

       (5,506)

Net cash generated from operating activities

        24,612

        10,353

 

 

 

Cash flow from investing activities:

 

 

Purchase of investment properties

       (1,506)

     (13,524)

Purchase of fixed assets

         (586)

       (8,734)

Decrease in other investments

         2,931

         6,672

Proceeds from sale of investment properties

            485

            615

Amounts due from associated companies

         (873)

       (2,877)

Proceeds from disposal of fixed assets

             15

             59

Acquisition of a subsidiary, net of cash

             

        15,115

Disposal of shares in a subsidiary, net of cash

             

            937

Net cash generated from/(used in) investing activities

            466

       (1,737)

 

 

 

Cash flow from financing activities:

 

 

Net (repayment of)/proceeds from bank loans

         (211)

        11,067

Decrease in bank overdrafts

         (179)

         (775)

Payment to affiliated companies

               3

             76

Dividends paid

     (12,733)

     (10,186)

Repayment to hire purchase creditors

           (49)

           (49)

Proceeds from issue of shares

             15

             

Net cash (used in)/generated from financing activities

     (13,154)

            133

 

 

 

Net increase in cash and cash equivalents

        11,924

         8,749

Cash and cash equivalents at beginning of the year

        51,216

        42,467

Cash and cash equivalents at end of the year

        63,140

        51,216

 

 

 

 

 

 

 

 

1(d)(i)

A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year

 

 

 

 

GROUP

COMPANY

 

31.12.2003

31.12.2002

31.12.2003

31.12.2002

 

$’000

$’000

$’000

$’000

 

 

 

 

 

Share capital

 

 

 

 

Balance at beginning of the year

  163,240

  163,240

  163,240

  163,240

Issue of ordinary shares

         15

             

         15

             

Balance at end of the year

  163,255

  163,240

  163,255

  163,240

 

 

 

 

 

Share premium

 

 

 

 

Balance at beginning and end of the year

     8,681

     8,681

     8,681

     8,681

 

 

 

 

 

Capital reserve

 

 

 

 

Balance at beginning of the year as previously reported

      150,590

     142,588

      237,420

     248,101

Net deficit on revaluation of subsidiaries

                  

      (2,719)

                  

      (6,281)

Balance at beginning of the year as restated

      150,590

     139,869

      237,420

     241,820

Adjustment due to liquidation of subsidiaries

            476

                 

                  

                 

Adjustment due to acquisition of a subsidiary

                  

        (588)

                  

                 

Effect of adoption of INT FRS 19

       (4,201)

                 

                  

                 

Net surplus/(deficit) on revaluation of

 

 

 

 

investment properties

         2,736

       11,136

                  

                 

subsidiaries

                  

                 

       (5,390)

      (4,400)

associated companies

     (19,422)

                 

                  

                 

– transfer of investment in a subsidiary

                  

                 

       (1,269)

                 

Deferred tax

         (109)

           173

                  

                 

Balance at end of the year

      130,070

     150,590

      230,761

     237,420

 

 

 

 

 

Revenue reserve

 

 

 

 

Balance at beginning of the year as previously reported

      120,380

     123,205

        32,056

       16,647

Adjustment due to change in accounting policy (SAS 12)

                  

      (3,561)

                  

                 

Balance at beginning of the year as restated

      120,380

     119,644

        32,056

       16,647

Profit for the year

        13,569

       10,922

         2,292

       25,595

Dividend

     (12,733)

    (10,186)

     (12,733)

    (10,186)

Balance at end of the year

      121,216

     120,380

        21,615

       32,056

 

 

 

 

 

Currency translation adjustment reserve

 

 

 

 

Balance at beginning of the year

       (1,494)

      (1,046)

                  

                 

Effect of adoption of INT FRS 19

         2,450

                 

                  

                 

Exchange differences arising on consolidation

            134

        (448)

                  

                 

Balance at end of the year

         1,090

      (1,494)

                  

                 

 

 

 

 

 

 

 

 

 

 

Share capital and reserves

      424,312

     441,397

      424,312

     441,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1(d)(ii)

Details of any changes in the company’s share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year

 

 

 

Since 30 September 2003, changes in the issued ordinary share capital of the Company are as follows:

 

 

 

No. of shares of

$0.25 each

 

 

As at 30 September 2003

       652,960,000

Issue and allotment of shares arising from exercise of options granted under the terminated Hwa Hong Corporation Limited Executives’ Share Option Scheme

              60,000

As at 31 December 2003

       653,020,000

Issue and allotment of shares arising from exercise of options granted under the terminated Hwa Hong Corporation Limited Executives’ Share Option Scheme

              12,000

As at 20 February 2004

       653,032,000

 

 

 

 

Issued ordinary share capital as at 20 February 2004

     $163,258,000



 

As at 31 December 2003, there were unexercised options to subscribe for 484,000 ordinary shares of $0.25 each in the capital of the Company under the terminated Hwa Hong Corporation Limited Executives’ Share Option Scheme as compared with 544,000 as at 31 December 2002.


No options have been granted under the Hwa Hong Corporation Limited (2001) Share Option Scheme since its adoption on 29 May 2001.

 

 

 

 

 

2.

Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)

 

 

 

The figures have not been audited nor reviewed by our auditors.

 

 

 

 

 

3.

Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis of matter)

 

 

 

Not applicable.

 

 

 

 

 

4.

Whether the same accounting policies and methods of computation as in the issuer’s most recently audited annual financial statements have been applied

 

 

 

Save as mentioned below and in paragraph 5, the Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period as those of the most recently audited consolidated financial statements for the financial year ended 31 December 2002, which have been prepared in accordance with the Singapore Statements of Accounting Standard (“SAS”) and applicable requirements of Singapore law.

 

From 1 January 2003, the Group adopted the accounting standards known as Financial Reporting Standards (“FRS”) prescribed by the Council on Corporate Disclosure and Governance under the provisions of the Companies (Accounting Standards) Regulations 2002.  Companies are required under the Companies Act, Chapter 50 to comply with the FRS for financial statements covering period beginning on or after 1 January 2003. 

 

 

 

 

 

5.

If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

 

 

 

The Group has two subsidiaries whose operations are mainly in the United Kingdom.  The financial statements of the two subsidiaries were previously maintained in Singapore Dollars.  Following the adoption of INT FRS 19 (Reporting Currency – Measurement and Presentation of Financial Statements under FRS 21 and FRS 29), the  Group is required to consolidate the results, assets and liabilities of these two subsidiaries as if the financial statements were maintained using Sterling Pounds as the measurement currency.  The Group has adopted the allowed alternative treatment and applied the adjustments prospectively. 

 

The impact of adoption of INT FRS 19 on the financial statements of the Group for the year ended 31 December 2003 is as follows:-

(i)    Group’s profit before taxation increased by $1.75 million; and

(ii)   There is no impact on the Group’s net tangible assets as there is a corresponding decrease in capital reserve of $4.2 million and an increase in currency translation adjustment reserve of $2.45 million.

 

 

 

 

 

6.

Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends

 

 

 

 

 

GROUP

 

 

31.12.2003

31.12.2002

 

 

 

 

Earnings per $0.25 ordinary share after deducting any

  provision for preference dividends:-

 

 

 

(i)

Based on the weighted average number of ordinary shares on issue

2.08 cents

1.67 cents

 

(ii)

On a fully diluted basis

2.08 cents

1.67 cents

 



 

7.

Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year

 

 

 

 

 

GROUP

COMPANY

 

 

As at

31.12.2003

As at

31.12.2002

As at

31.12.2003

As at

31.12.2002

 

 

 

 

 

 

Net asset value per $0.25 ordinary share


64.98 cents


67.60 cents


64.98 cents


67.60 cents

 



 

8.

A review of the performance of the group, to the extent necessary for a reasonable understanding of the group’s business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

 

 

 

Group revenue for the financial year ended 31 December 2003 (“FY 2003”) decreased by about 24.75% from $53.76 million for the financial year ended 31 December 2002 (“FY 2002”) to $40.45 million for FY 2003.  This was mainly attributable to:

 

(a)      lower sales (FY 2003: $3.5 million; FY 2002: $11.8 million) of Jining Ningfeng Chemical Industry Co., Limited (“Jining”) which has, inter alia, adopted the strategy of selective trading with customers of better credit quality in order to reduce exposure to credit risks.  Jining has also faced stiff competition from competitors in China.  As raw material prices have been volatile, the management of Jining has taken a cautious approach in not matching prices quoted by competitors;

 

(b)      decrease in gross written premiums (FY 2003: $24 million; FY 2002: $28.4 million) from Tenet Insurance Company Ltd (“Tenet Insurance”) due mainly to lower volume of motor underwriting resulting in decrease in premiums for motor insurance (FY 2003: $8.4 million; FY 2002: $16.8 million); and

 

(c)       lower interest rate environment resulting in lower interest income (FY 2003: $3.9 million; FY 2002: $4.6 million).

 

Gross profit for FY 2003 as compared to FY 2002 increased by about 12.67% mainly due to the increase in gross profit of Tenet Insurance (FY 2003: $9.3 million; FY 2002: $5.5 million) as a result of lower cost of sales.  Cost of sales of Tenet Insurance was $14.7 million for FY 2003 and $22.8 million for FY 2002.  Jining recorded a lower gross profit of about $0.27 million for FY 2003 as compared to $1.76 million for FY 2002 as a result of lower revenue and higher raw material prices.  Jining’s cost of sales for FY 2003 and FY 2002 was $3.22 million and $10 million respectively.

 

Other income decreased by about 21.86% mainly due to decrease in negative goodwill amortisation of $4.8 million and gain on sale of investments of $1.9 million.  However, this was offset by increase in exchange gain of $3.92 million. 

 

General and administrative costs increased mainly due to the increase in staff costs and a donation of $250,000 made to various charities to celebrate the Company’s 50th Anniversary.

 

The decrease in revenue from Jining and Tenet Insurance as mentioned above resulted in the decrease in selling and distribution costs of Jining (FY 2003: $0.35 million; FY 2002: $1.18 million) and the decrease in commission expenses of Tenet Insurance (FY 2003: $2.8 million; FY 2002: $3.3 million).  These contributed mainly to the decrease of about 35.5% in selling and distribution costs for FY 2003 as compared to FY 2002.

 

Other operating costs comprise mainly of provision for impairment in value of investments and non trade debts.  In FY 2003, there was a write-back of provision for impairment in value of investments of $1.89 million as compared to a provision for impairment in value of investments of $2.26 million made in FY 2002.

 

Finance costs increased mainly due to the increase in borrowings to finance purchases of properties in United Kingdom.

 

There was a share of net losses of associated companies of about $0.365 million for FY 2003 as compared to the share of net losses of associated companies of about $0.192 million for FY 2002.  This was mainly due to the lower share of profits of about $0.36 million from Riverwalk Promenade Pte Ltd mainly because of lower rental income.

 

Thus, Group profit before taxation increased by about 42.37% from $10.2 million for FY 2002 to $14.53 million for FY 2003 mainly attributable to the reasons explained above.

 

In FY 2003, the effective rate of taxation for the Group is lower than the applicable Singapore income tax rate of 22% mainly due to certain income being not subjected to tax.  In FY 2002, the effective rate of taxation for the Group is lower than the applicable Singapore income tax rate of 22% mainly due to the utilisation of group tax reliefs.

 

As regards the Group balance sheets, the decrease in amount due to an associated company (FY 2003: Nil; FY 2002: $152.6 million) was mainly due to the tax exempt 1-tier dividend amounting to $100 million declared and paid by Trademart Singapore Pte Ltd (“TMS”), a 50% owned associated company, and the return of capital by TMS and share of TMS’s reserves amounting to $52.6 million.  These were offset against the amount due by Singapore Warehouse Company (Private) Ltd., a wholly owned subsidiary of the Company, to TMS, resulting in the decrease in the amount of investment in associated companies.  In addition, the amount of investment in associated companies had decreased by $19.4 million ($13.2 million in the first quarter of 2003 and $6.2 million in the fourth quarter of 2003) mainly due to the share of associated company’s asset revaluation deficit.  The above reasons accounted mainly for the decrease in the amount of investment in associated companies (FY 2003: $59.3 million; FY 2002: $231.6 million).

 

 

 

9.

Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results

 

 

 

Not applicable.

 

 

 

 

10.

A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months

 

 

 

Rental income from warehousing is not expected to improve as compared to 2003 in spite of the higher forecast growth of the Singapore economy.  Competition in the general insurance industry continues to be high and premium growth will be moderate.  Investment income will depend on the performance of the stock market and interest rates prevailing for the current year.  Barring unforeseen circumstances, sale of the units at the Trademart site redevelopment is anticipated to be launched in the second half of 2004.

 

 

 

 

 

11.

Dividend

 

 

 

(a) Current Financial Period Reported On

 

 

Any dividend recommended for the current financial period reported on?        Yes.

 

 

 

Name of Dividend

Final Ordinary Dividend

 

Dividend Type

Cash

 

Dividend Rate

1 cent per share (4%) less tax

 

Par value of shares

$0.25

 

Tax Rate

22%

 

 

 

 

(b) Corresponding Period of the Immediately Preceding Financial Year

 

 

Any dividend declared for the corresponding period of the immediately preceding financial year?            Yes.

 

 

 

 

Name of Dividend

Interim

Final Ordinary Dividend

Special Dividend

 

 

Dividend Type

Cash

Cash

Cash

 

 

Dividend Rate

0.75 cent per share (3%) less tax

0.75 cent per share

(3%) less tax

0.75 cent per share (3%) less tax

 

 

Par value of shares

$0.25

$0.25

$0.25

 

 

Tax Rate

22%

22%

22%

 

 

 

 

 

(c) Date payable

 

 

 

21 May 2004

 

 

 

(d) Books closure date

 

 

 

NOTICE IS HEREBY GIVEN that the Share Transfer Books and Register of Members of the Company will be closed on 7 May 2004 for the preparation of dividend warrants.  Duly completed registrable transfers received by the Company’s Share Registrars, Lim Associates (Pte) Ltd, 10 Collyer Quay, #19-08 Ocean Building, Singapore 049315 up to 5.00 p.m. on 6 May 2004 will be registered before entitlements to the dividend are determined.  In respect of shares in securities accounts with The Central Depository (Pte) Limited (“CDP”), the said dividend will be paid by the Company to CDP which will in turn distribute the dividend entitlements to holders of shares in accordance with its practice.

 

 

 

(e) Interim dividend declared and paid for the current reporting period

 

 

 

Name of Dividend

Interim

 

Dividend Type

Cash

 

Dividend Rate

1 cent per share (4%) less tax

 

Par value of shares

$0.25

 

Tax Rate

22%

 

 

 

 

 

12.

If no dividend has been declared/recommended, a statement to that effect

 

 

 

Not applicable.

 

 

 

 

 

PART II – ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results)

 

 

 

 

13.

Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer’s most recently audited annual financial statements, with comparative information for the immediately preceding year

 

 

 

BY BUSINESS SEGMENTS

 

 

Warehousing

& Property

Insurance &

Investment

Manufacturing

& Trading

 

Eliminations

 

Total

 

 

 

 

 

 

2003 ($’000)

 

 

 

 

 

 

 

 

 

 

 

Segment Revenue

 

 

 

 

 

External

       5,131

     31,218

       4,104

               

    40,453

Inter Segment

               

    106,162

       1,902

(108,064)

              

Total Revenue

       5,131

    137,380

       6,006

(108,064)

    40,453

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

       4,731

    105,357

    (2,118)

   (91,940)

    16,030

Finance costs

 

 

 

 

   (1,132)

Share of results of associates

 

 

 

 

      (365)

Profit before tax

 

 

 

 

    14,533

Tax

 

 

 

 

   (1,028)

Profit after tax

 

 

 

 

    13,505

Minority interest

 

 

 

 

          64

Profit attributable to shareholders

 

 

 

 

    13,569

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

    134,715

   819,428

       4,440

(576,510)

   382,073

Investment in Associated Companies

               

     59,256

               

              

    59,256

 

    134,715

   878,684

       4,440

(576,510)

   441,329

Unallocated Assets

 

 

 

 

    82,473

Total Assets

 

 

 

 

   523,802

 

 

 

 

 

 

 

 

 

 

 

 

Segment Liabilities

   (48,495)

(111,048)

     (2,572)

     69,772

  (92,343)

Unallocated Liabilities

 

 

 

 

   (7,121)

Total Liabilities

 

 

 

 

  (99,464)

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

       1,795

         264

           33

              

      2,092

 

 

 

 

 

 

Depreciation

          102

         848

          700

              

      1,650

 

 

 

 

 

 

Impairment loss/(Write-back)

               

     11,166

          840

  (13,052)

   (1,046)

 

 

 

 

 

 

Other non cash expenses

           22

          28

          306

              

        356

 

 

 

 

 

 

 

 

 

 

Warehousing

& Property

Insurance &

Investment

Manufacturing

& Trading

 

Eliminations

 

Total

 

 

 

 

 

 

2002 ($’000)

 

 

 

 

 

 

 

 

 

 

 

Segment Revenue

 

 

 

 

 

External

       4,488

     36,585

     12,748

        (61)

    53,760

Inter Segment

               

     35,247

         635

   (35,882)

              

Total Revenue

       4,488

     71,832

     13,383

   (35,943)

    53,760

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

       3,300

     41,407

    (6,414)

   (27,068)

    11,225

Finance costs

 

 

 

 

      (825)

Share of results of associates

 

 

 

 

      (192)

Profit before tax

 

 

 

 

    10,208

Tax

 

 

 

 

        653

Profit after tax

 

 

 

 

    10,861

Minority interest

 

 

 

 

          61

Profit attributable to shareholders

 

 

 

 

    10,922

 

 

 

 

 

 

 

 

 

 

 

 

Segment Assets

    127,835

   845,530

       8,983

(593,284)

   389,064

Investment in Associated Companies

               

   231,599

               

              

   231,599

 

    127,835

1,077,129

       8,983

(593,284)

   620,663

Unallocated Assets

 

 

 

 

    79,942

Total Assets

 

 

 

 

   700,605

 

 

 

 

 

 

 

 

 

 

 

 

Segment Liabilities

   (46,482)

(271,522)

   (17,481)

     85,227

(250,258)

Unallocated Liabilities

 

 

 

 

   (8,860)

Total Liabilities

 

 

 

 

(259,118)

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditure

               

      8,150

          584

              

      8,734

 

 

 

 

 

 

Depreciation

               

         899

          216

              

      1,115

 

 

 

 

 

 

Impairment loss/(Write-back)

               

      2,260

       2,737

              

      4,997

 

 

 

 

 

 

Other non cash expenses

               

    (4,013)

       3,217

              

      (796)

 

 

 

 

 

 

 

 

 

 

BY GEOGRAPHICAL SEGMENT

 

 

 

Singapore

United Kingdom

 

Others

 

Eliminations

 

Total

 

 

 

 

 

 

2003 ($’000)

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

External

        34,358

      4,032

          2,063

              

  40,453

Inter Segment

      106,525

              

          1,539

(108,064)

          

Total Revenue

      140,883

      4,032

          3,602

(108,064)

  40,453

 

 

 

 

 

 

Segment Assets

    1,001,685

     93,948

          4,679

(576,510)

523,802

 

 

 

 

 

 

Capital expenditure

            485

      1,574

              33

              

   2,092

 

 

 

 

 

 

 

 

 

 

 

 

2002 ($’000)

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

External

        39,156

      3,402

        11,202

              

  53,760

Inter Segment

        35,249

              

            633

  (35,882)

          

Total Revenue

        74,405

      3,402

        11,835

  (35,882)

  53,760

 

 

 

 

 

 

Segment Assets

    1,223,710

     60,930

          9,249

(593,284)

700,605

 

 

 

 

 

 

Capital expenditure

         8,156

           

            578

           

   8,734

 

 

 

 

 

 

 

 

 

 

14.

In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments

 

 

 

BUSINESS

Warehousing & Property

The higher revenue was mainly due to higher rental income arising from additional properties acquired during the second half of FY 2002 and during FY 2003.  Operating profit has declined because of ancillary costs incurred in connection with the purchases of the properties.

 

Insurance & Investment

The higher revenue and operating profit were mainly due to the tax exempt 1-tier dividend of $100 million declared by an associated company.

 

Manufacturing & Trading

The decrease in revenue is mainly attributable to lower sales revenue recorded by Jining (see commentary under paragraph 8 of this Announcement).

 

The decrease in operating loss is due mainly to lower provision for impairment loss in the Group’s investment in Norwest Holdings Pte Ltd and lower provision for doubtful receivables.

 

GEOGRAPHICAL

Singapore

The higher revenue was mainly due to the tax exempt 1-tier dividend of $100 million declared by an associated company.

 

United Kingdom

The higher revenue was due mainly to revenue from the properties purchased during the second half of FY 2002 and during FY 2003.

 

Others

This segment reflected substantially the revenue of Jining.

 

 

 

 

15.

A breakdown of sales

 

 

 

 

 

GROUP

 

 

31.12.2003

$’000

31.12.2002

$’000

+/(-)

%

 

 

 

 

 

(a)

Revenue reported for first half year

     22,196

    31,338

(29.17)

 

 

 

 

 

(b)

Operating profit after tax before deducting minority interests reported for first half year

      5,406

     6,699

(19.30)

 

 

 

 

 

(c)

Revenue reported for second half year

     18,257

    22,422

(18.58)

 

 

 

 

 

(d)

Operating profit after tax before deducting minority interests reported for second half year

      8,099

     4,162

94.59

 

 

 

 

 

 

 

 

 

 

16.

A breakdown of the total annual dividend (in dollar value) for the issuer’s latest full year and its previous full year

 

 

 

 

GROUP

 

31.12.2003

$’000

31.12.2002

$’000

 

 

 

Ordinary

     10,187

     11,459

Preference

              

              

Total

     10,187

     11,459

 

 

 

 

 

 

 

17.

Comparative figures

 

 

 

Certain comparative figures have been reclassified to conform with current year’s presentation.

 

 

 

 

INTERESTED PERSON TRANSACTIONS

 

 

 

 

 

 

 

 

Name of interested person

Aggregate value of all interested person transactions during the financial year under review (excluding transactions less than $100,000 and transactions conducted under shareholders’ mandate pursuant to Rule 920

Aggregate value of all interested person transactions conducted under shareholders’ mandate pursuant to Rule 920 (excluding transactions less than $100,000)

 

Boon Suan Lee:

- professional services rendered to Hwa Hong Group by firms in which he has an interest

 

 

$109,702

 

Nil

 

 

 

 

 

 

 

BY ORDER OF THE BOARD


TAN MEE CHOO
COMPANY SECRETARY
20 FEBRUARY 2004