Tai Sin Electric Limited

24 Gul Crecent, Jurong Town, Singapore 629531

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


Email This Print ThisFinancials

Third Quarter Results Financial Statement And Related Announcement

Financials Archive

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

THIRD QUARTER FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE PERIOD ENDED 31 MARCH 2018

Profit And Loss

Financials

Balance Sheets

Financials

Review

Statement of profit or loss

For the 9 months ended 31 March 2018, the Group's revenue increased 15.58% to $237.23 million when compared to $205.25 million from the last corresponding period.

The Cable & Wire ("C&W") Segment's revenue posted an increase of $24.75 million, attributable to a 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 $8.56 million. This was due to higher sales to the Industrial Building, Electronic and Chemical, Oils & Gas Clusters as the segment began to pick up more orders from various projects.

Test & Inspection ("T&I") Segment's revenue was down by $1.43 million, primarily caused by decrease in Non-Destructive Testing and Heat Treatment revenue from Singapore and Indonesia.

Gross profit ("GP") for the current period declined 9.21% or $4.13 million to $40.69 million from $44.82 million in the last corresponding period despite the Group recording higher revenue. The gross profit margin of 17.15%, was lower by 4.69% as compared to 21.84% achieved in the last corresponding period. Lower margins were attributable to the pricing pressure from stiff competition in the Infrastructure Sector which eroded the margins faced by the C&W and T&I Segment. In addition, the surge in copper prices over the last nine months greatly affected the margins of infrastructure projects delivered by the C&W Segment.

Other operating income fell to $1.10 million from $3.21 million in last corresponding period, down $2.11 million. During the corresponding period ended March 2017, the Group benefited from the gain on disposal of property of $0.65 million, gain on foreign exchange of $0.29 million and fair value gain on derivative financial instruments of $0.95 million.

Selling and distribution expenses slightly increased by $0.01 million from $13.95 million in last corresponding period. This was mainly because of higher staff cost offset against lower advertisement and marketing expenses used to penetrate the retail market in Vietnam in last corresponding period.

Administrative expenses increased by $0.44 million to $14.11 million in current period, mainly due to higher staff welfare and staff costs.

Other operating expenses increased by $0.59 million to $1.72 million. The Group suffered fair value loss on derivative financial instruments and foreign exchange loss as a result of fluctuation of in US Dollar against Singapore Dollar during the period. The increase was offset against lower allowance for doubtful receivables in the current period.

The Group's profit before income tax ("PBT") of $11.74 million for the period ended 31 March 2018, down $7.35 million from $19.09 million in the last corresponding period. PBT of the C&W Segment was lower by $6.06 million as a result of lower gross profit margin, fair value loss on derivative financial instruments, foreign exchange loss and higher staff cost. The T&I Segment's PBT decreased by $1.70 million because of intense competition and absence of gain on disposal of property. Notwithstanding, PBT from the EMD Segment increased by $0.42 million moving in tandem with higher revenue achieved during the period.

Statement of financial position

Cash and bank balances increased by $4.83 million, due to higher collection from customers towards period end.

Trade receivables increased by $7.04 million, mainly the result of higher sales for the quarter ended 31 March 2018 as compared to quarter ended 30 June 2017.

Other receivables increased by $0.26 million, primarily attributable to down payment for purchase of plant and equipment and prepayment of software license, offset partially by settlement from related party.

Inventories increased by $1.92 million, mainly due to higher purchases in the C&W Segment. The increase was negated by lower inventories in EMD Segment as a result of higher sales for the quarter ended 31 March 2018.

Property, plant and equipment decreased by $1.12 million, mainly due to depreciation charges of $3.77 million offset against acquisition of plant and equipment amounting to $2.59 million.

Trade payables increased by $1.43 million, substantially due to higher purchases in the C&W Segment during the period.

Short-term bank borrowings increased by $13.65 million primarily because of higher borrowings by the C&W Segment which moved in tandem with higher purchases.

Other payables decreased by $1.52 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 increased to $26.91 million compared with $22.08 million at the end of the last period.

The Group generated net cash from operating activities of $4.89 million, attributable to operating profit before working capital changes of $16.86 million net of increase in trade receivables, inventories and trade payables, payment of bonus and income tax during the period.

The net cash used in investing activities of $2.44 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 from financing activities of $2.41 million was largely due to higher short-term bank borrowings, net of repayment of short-term bank borrowings, finance lease, dividend and interest paid.

Commentary

The Group anticipates the business environment to remain challenging.

The Group is facing pressure from the volatility of copper prices and foreign exchange coupled with the intense competition in the infrastructure sector which could impact the Group's performance.

The main 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. With construction demand anticipated to improve over the medium term, there are still opportunities for the Group.