Tai Sin Electric Limited

24 Gul Crecent, Jurong Town, Singapore 629531

T: (+65) 6672 9292 E: ir@taisin.com.sg

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Second Quarter Financial Statement And Related Announcement

Financials Archive

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Profit And Loss


Balance Sheets



Statement of profit or loss

Group revenue of $160.12 million for the 6 months ended 31 December 2017 was an increase of 14.59% when compared to $139.73 million from the last corresponding period.

The Cable & Wire ("C&W") Segment's revenue posted an increase of $15.50 million, attributable to surge in copper price and higher delivery to the Commercial & Residential and Infrastructure Sectors in Singapore. However, Malaysia and Vietnam experienced a decline in revenue due to market slowdown in the region as well as lower export to Myanmar.

Electrical Material Distribution ("EMD") Segment revenue grew by $6.88 million. This was attributable to higher sales to the Industrial Building and Electronic Clusters as the segment began to pick up more orders from various projects.

Test & Inspection Segment's revenue was down by $1.82 million, because of decrease in Non-Destructive Testing and Heat Treatment revenue from Singapore and Indonesia.

Gross profit ("GP") for the current period declined 6.41% or $1.92 million to $28.05 million from $29.98 million in the last corresponding period. In spite of the Group recording higher revenue, GP declined. Lower margins was a result of the surge in copper prices and pricing pressures from stiff competition for both the C&W and T&I Segment.

Other operating income fell to $0.62 million from $2.91 million in last corresponding period, down $2.29 million. During the corresponding period ended December 2016, the Group benefited from the gain on disposal of property of $0.65 million and fair value gain on derivative financial instruments of $1.30 million.

Selling and distribution expenses decreased by $0.15 million from $9.59 million, mainly because of higher advertisement and marketing expenses used to penetrate the retail market in Vietnam in the last corresponding period.

Administrative expenses increased by $0.37 million to $9.49 million in current period, mainly due to higher staff welfare and staff costs.

Other operating expenses increased by $0.03 million to $1.02 million. The Group suffered fair value loss on derivative financial instruments and foreign exchange loss as a result of weaker, US Dollar against Singapore Dollar during the period. The increase was offset against lower allowance for doubtful receivables in current period.

The Group's profit before income tax ("PBT") of $8.71 million for the period ended 31 December 2017, was a decline of $4.41 million when compared to the last corresponding period. PBT of the C&W Segment was lower by $3.27 million as a result of lower gross profit margin, fair value loss on derivative financial instruments and foreign exchange loss. The T&I Segment's PBT decreased by $1.75 million because of intense competition and absence of gain on disposal of property. However, PBT from the EMD Segment increased by $0.63 million moving in tandem with higher revenue achieved during the period.

Statement of financial position

Cash and bank balances decreased by $2.35 million, mainly due to dividend paid during the period against higher collection from customers towards period end.

Trade receivables increased by $7.38 million, mainly the result of higher sales for the quarter ended 31 December 2017 as compared to quarter ended 31 December 2016.

Other receivables increased by $0.42 million, primarily attributable to prepayment for purchase of plant and equipment and software license.

Inventories decreased by $1.37 million, mainly due to higher sales in C&W and EMD segment for the quarter ended 31 December 2017.

Property, plant and equipment decreased by $1.27 million, mainly due to depreciation charges of $2.51 million offset against acquisition of plant and equipment amounting to $1.25 million.

Trade payables decreased by $1.17 million, substantially due to prompt payment to suppliers by the C&W Segment against higher purchases in the EMD Segment during the period.

Short-term bank borrowings increased by $4.85 million primarily because of higher borrowings by the C&W Segment which moved in tandem with higher purchases.

Other payables decreased by $1.36 million mostly because of bonus payout for the financial year ended 30 June 2017 during the period.

Statement of cash flows

The cash and cash equivalent at the end of the period decreased to $19.74 million compared with $22.08 million at the end of the last period.

The net cash from operating activities of $1.65 million was mostly due to higher sales, higher purchases, net of prompt payment to suppliers, bonus and income tax paid during the period.

The net cash used in investing activities of $1.16 million was mainly for purchase of property, plant and equipment, net of proceeds from disposal of plant and equipment and interest received.

The net cash used in financing activities of $2.74 million was largely used for repayment of short-term bank borrowings, finance lease, dividend and interest paid, net of proceeds from short-term bank borrowings.


The Group expects the business environment to remain challenging.

Volatility of copper prices and foreign exchange coupled with inflationary cost pressure and intense competition in the infrastructure sector continues to be the main risk factors.

The primary focus of the Group is still on public sector infrastructure projects in the Southeast Asia region, despite uncertainties in realisation of the projects in the near term.

Given the global economic conditions, the Group will continue to adopt a prudent and conservative approach to sustain growth in the years ahead.