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JK YAMING INTERNATIONAL HOLDINGS LTD
Unaudited First Quarter Financial Statement
PART 1 - 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.
(i) Income Statement for the First Quarter ended 31 March 2009
1st Quarter 1st Quarter
ended 31 Mar ended 31 Mar Increase /
GROUP 2009 2008 (Decrease)
S$'000 S$'000 %
Sales 27,357 44,131 (38.0)
Cost of sales (21,547) (37,287) (42.2)
Gross profit 5,810 6,844 (15.1)
Other income - (net) 539 38 1,318.4
- Selling, general and administration (3,813) (3,381) 12.8
- Other expenses - Legal (63) (599) (89.5)
- Finance cost (373) (443) (15.8)
- Share of profit/(loss) of an associate 49 (19) N.M.
Profit before tax 2,149 2,440 (11.9)
Income tax expenses (394) (704) (44.0)
Profit after tax 1,755 1,736 1.1
Attributable to:
Equity holders of the Company 1,612 980 64.5
Minority interests 143 756 (81.1)
1,755 1,736 1.1
N.M.*: Not Meaningful
(ii) Notes to Income Statement
1st Quarter 1st Quarter
ended 31 Mar ended 31 Mar Increase /
GROUP 2009 2008 (Decrease)
S$'000 S$'000 %
Depreciation and amortisation 1,531 1,293 18.4
Foreign exchange loss (net) 312 200 56.0
Interest on borrowings 373 420 (11.2)
Interest income (228) (36) 533.3
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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.
Balance Sheet Group Company
31.3.2009 31.12.2008 31.3.2009 31.12.2008
S$'000 S$'000 S$'000 S$'000
Share capital 40,862 40,862 40,862 40,862
Reserves 23,026 18,303 17,862 343
Share capital and reserves 63,888 59,165 58,724 41,205
Minority interests 15,062 15,518 - -
Total equity 78,950 74,683 58,724 41,205
Represented by:-
Non-Current Assets:
Investment in subsidiaries - - 44,274 44,274
Investment in an associate 1,292 1,248 1,009 1,009
Property, plant and equipment 49,565 47,559 1,430 1,452
Investment properties 8,110 7,682 - -
Intangible assets 778 758 - -
Total non-current assets 59,745 57,247 46,713 46,735
Current Assets:
Inventories 31,473 30,753 - -
Trade receivables 21,499 18,713 - -
Other receivables 2,741 2,798 17,679 515
Other current assets 4,974 1,992 21 6
Amount owing by related parties 6,606 7,799 - -
Cash and cash equivalents 10,975 11,653 - -
Total current assets 78,268 73,708 17,700 521
Current Liabilities:
Trade payables 15,716 15,413 - -
Other payables 12,755 9,780 591 581
Amount due to related parties 1,410 3,794 - -
Borrowings 26,379 23,944 4,316 4,013
Income tax liabilities 1,842 1,715 - -
Deferred income tax liabilities 179 169 - -
Total current liabilities 58,281 54,815 4,907 4,594
Total net current assets/(liabilities) 19,987 18,893 12,793 (4,073)
Non-Current Liabilities:
Borrowings 782 1,457 782 1,457
Total net assets 78,950 74,683 58,724 41,205
1(b)(ii) Aggregate amount of group’s borrowings and debt securities.
Amount repayable in one year or less, or on demand
Group
As at 31.3.2009 As at 31.12.2008
Secured Unsecured Secured Unsecured
S$5,467,000 S$20,912,000 S$5,229,000 S$18,715,000
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Amount repayable after one year
Group
As at 31.3.2009 As at 31.12.2008
Secured Unsecured Secured Unsecured
S$763,000 S$19,000 S$1,433,000 S$24,000
Details of any collateral
(a) Included in borrowings of the Group are loans by the parent company amounted approximately
S$2.0 million, which are secured by mortgages over the Group’s freehold property.
(b) Another bank loan of S$4.2 million is secured by legal mortgage of the Group’s office buildings in
China.
1(c) A cash flow statement (for the group), together with a comparative statement for the
corresponding period of the immediately preceding financial year.
1st Quarter 1st Quarter
GROUP ended 31 Mar ended 31 Mar
2009 2008
S$'000 S$'000
Cash flow from operation activities
Profit before tax 2,149 2,440
Adjustment for non-cash items
Depreciation of property, plant & equipment 1,509 1,268
Amortisation of intangible assets 22 25
Interest expense 373 420
Interest income (228) (36)
Gain on deemed disposal of subsidiary - (11)
Loss on disposal of property, plant and equipment - 11
Share of (profit)/loss of an associate (49) 19
Unrealised translation losses/(gains) 500 (1,087)
Operating profit before working capital change 4,276 3,049
(Increase )/ decrease in
- inventories (720) 3,882
- trade receivables (2,786) (113)
- other receivables 57 (2,049)
- other current assets (2,982) 59
- amount due from related parties 1,193 545
Increase / (decrease) in
- trade payables 303 (6,398)
- other payables 2,975 717
- amount due to related parties (2,384) 401
Cash (used in) / generated from operations (68) 93
Interest received 228 36
Interest paid (373) (420)
Income tax paid (362) (335)
Net cash used in operating activities (575) (626)
Cash flow from investing activities
Purchase of intangible assets - (398)
Deemed disposal of a subsidiary - (60)
Payment for purchase of property, plant and equipment (951) (39)
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Net cash used in investing activities (951) (497)
Cash flow from financing activities
Payment of dividends to minority interest (292) -
Proceeds from borrowings 11,966 12,661
Repayment of borrowings (11,474) (6,392)
Net cash generated from financing activities 200 6,269
Net decrease in cash and cash equivalents (1,326) 5,146
Effects of exchange rate changes on cash and cash equivalents 648 (57)
Cash and cash equivalents at beginning of period 11,653 9,452
Cash and cash equivalents at end of period 10,975 14,541
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 capitalization issues and distributions to
shareholders, together with a comparative statement for the corresponding period of the
immediately preceding financial year.
Non-
Share Other Revaluation distributable Translation Retained Minority Total
GROUP capital reserve reserve reserves reserve earnings interest equity
S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000
Balance as at 1 January 2008 40,862 6,372 569 3,578 (4,451) 7,613 13,332 67,875
Currency translation differences - - - - (232) - (349) (581)
Deemed disposal of an subsidiary - - - - - - (770) (770)
Net income recognised directly
in equity - - - - (232) - (1,119) (1,351)
Net profit for the period - - - - - 980 756 1,736
Total recognised income - - - - (232) 980 (363) 385
Transfer from retained earnings to
statutory reserves - - - 923 - (923) - -
Balance as at 31 March 2008 40,862 6,372 569 4,501 (4,683) 7,670 12,969 68,260
Balance as at 1 January 2009 40,862 6,372 569 4,572 (1,081) 7,871 15,518 74,683
Currency translation differences - - - - 3,111 - (307) 2,804
Net income recognised directly
in equity - - - - 3,111 - (307) 2,804
Net profit for the period - - - - - 1,612 143 1,755
Total recognised income - - - - 3,111 1,612 (164) 4,559
Transfer from retained earnings to
statutory reserves - - - 2,115 - (2,115) - -
Dividend paid during the period - - - - - - (292) (292)
Balance as at 31 March 2009 40,862 6,372 569 6,687 2,030 7,368 15,062 78,950
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Share Retained Total
COMPANY capital earnings equity
S$'000 S$'000 S$'000
Balance as at 1 January 2008 40,862 1,785 42,647
Net profit for the period - 2,169 2,169
Balance as at 31 March 2008 40,862 3,954 44,816
Balance as at 1 January 2009 40,862 343 41,205
Net profit for the period - 17,519 17,519
Balance as at 31 March 2009 40,862 17,862 58,724
Non-distributable reserves represent amounts set aside in compliance with local laws in People’s
Republic of China (“PRC”) where the Group operates. The amounts comprise enterprise expansion fund
and general reserve fund.
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 well as the number of
shares held as treasury, if any, against the total number of issued shares excluding treasury
shares of the issuer 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.
There was no change in the Company’s share capital during the first quarter ended 31 March 2009.
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.
The Group has adopted the same accounting policies and method of computation in the financial
statements for the current financial period compared to the audited financial statements for the financial
year ended 31 December 2008.
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.
Not applicable.
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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 31.03.2009 31.03.2008
(i) Based on the weighted average
number of ordinary shares on issue 0.79 cents 0.48 cents
(ii) On a fully diluted basis N.A. N.A.
Weighted average number of
ordinary shares on issue applicable
to basic earnings per share 202,948,180 202,948,180
* The company does not have any dilutive instruments as at 31 March 2009.
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 Group Company
31.3.2009 31.12.2008 31.3.2009 31.12.2008
Net asset value per ordinary share
at the end of the financial period 31.5 cents 29.2 cents 28.9 cents 20.3 cents
Note:
Net asset value per ordinary share as at 31 March 2009 and 31 December 2008 were calculated based
on the number of shares issued as at those dates of 202,948,180 of S$0.20 per share each.
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.
Revenue
Group turnover for 1Q 2009 decreased by S$16.8 million or 38.0% from S$44.1 million to S$27.4 million.
Wire harness segment contributed to the bulk of the decrease of S$19.4 million and other segment
contributed to a decrease of S$0.7 million. The overall decrease was to a large extent compensated by
the increase in electrical lighting segment of S$3.3 million .Of this increase, induction lamps accounts for
S$2.6 million or 78.7%. Revenue from Traditional HID lighting system increase marginally by S$0.7
million.
As expected, wire harness segments revenue decreased in light of the current on going global financial
and economic condition that had seriously impacted the automobile industry. The spill over effect from
Q4 2008 had continued to impact current quarter’s demand for this segment of business.
Gross Profit
Gross profit reduced by S$1 million or 15.1 % from S$6.8 million to S$5.8 million.
Gross profit from wire harness decreased by S$2.4 million that was in line with revenue decrease.
Others segment decreased by S$0.3 million. This overall decrease was largely offset by the increased
contribution from the electrical lighting segment of S$1.8 million of which Induction lamps contributed
S$1.0 million or 55%.
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Gross Profit margin performance
Gross profit margin was 21.2% for this current quarter which outperformed 15.5 % for the previous
corresponding quarter by a remarkable 5.7 % point. Of this increase, induction lamps accounts for 3.7%
point because of their higher engineering value added margin and wire harnessing accounts for the
difference of 2 % point as a result of timely cost control measure taken.
Net Profit
Net profit before tax was down slightly by S$0.3 million from S$2.4 million to S$2.1 million.
The following income and expenses items contributed to this overall performance:
1 The saving in legal expenses and financial cost totaled S$0.6 million.
2 Other income increased by S$0.5 million. Other income is mainly made up of subsidiary
income(S$183k), interest income(S$228k), bad debts recovered(S$380k) and currency
exchange loss(S$312k).
3 Selling, general and administration expenses increased by S$432k.
Net profit after tax was S$1,755,000 which had outperformed the same period last year by S$19,000 or
some 1.1 % this was due to tax saving by a subsidiary which has been awarded technology status with
a tax rate of 15% this year. Group’s income tax expenses reduced by S$310k from S$704k Q1 2008 to
S$394k this quarter.
Effective Tax rate was reduced by a remarkable 10.6% point from 28.9% Q1 2008 to 18.3 % this quarter.
Net profit attributable to shareholders increased by 64.5% from S$980,000 to S$1,612,000.
The percentage increase in profit attributable to shareholders was primarily due to the shift of
percentage mix in the segmental revenue and net profit performance. The profits generator had shifted
from wire harness with larger minority interest participation to electrical lighting segment with much
smaller minority interest participation.
Balance sheet review
Group Balances sheet
(a) Impact of currency changes, RMB appreciation against S$ had to some extent impacted the
valuation of the balance sheet items.
(b) Property plant and equipment
The increase of S$2 million arises from the group’s acquisition of plant and machinery and
construction in progress of facilities of S$758 k to meet the increasing demand for our induction
lamps, the remaining increase is due to the effect of translation gains.
(c) Investment property increased by S$428k which was solely due to effect of currency translation.
(d) Trade accounts receivables and inventory
Inventory holdings and accounts receivables remain consistent with the normal operating
requirements, the increase was primarily due to effect of currency translation.
(e) Other current assets
Increase in other current assets is mainly due to the increase in prepayments to suppliers for the
supplies of certain key components approximately S$2.6 million to be used for the production of
electrical lighting system and induction lamps.
(f) Other Payables
Increase in other payables is made up of deposits received in advance from certain customers
amounting to S$1.7 million and dividend payable to minority interest amounting to S$ 1.7 million.
(g) Group Cash and cash equivalence
Group maintained a cash position of S$11 million and the group’s total bank borrowings
approximate S$27 million.
The group’s net gearing (total bank borrowings less unrestricted cash balances) is 18.9% which is
comparable with the group position as at 31.12.2008 of 18.3%.
Group’s net assets value less minority interest increased by S$4.7 million to S$63.9 million.
(h) The company
Other receivables
This is solely made up of dividends receivables from a few subsidiaries in China which had
declared dividends in the current quarter.
-7-
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.
Baring unforeseeable circumstances and in light of the current global financial and economic condition,
we expect demand for wire harness to pick up gradually over the next 12 months to recover some of the
losses in revenue in Q1 2009.
On the other hand, we expect substantial improvement in the electrical lighting segments, in particular,
the induction lamps. The strong Q1 2009 performance in this business segment had demonstrated that
the economic stimulus and financial rescue effort undertaken by the world at large and China that
focuses in the development of infrastructure projects as well as environmental friendly projects had
started to bear fruits. Our energy saving and environmental friendly Induction lamps products did
participate well in these areas of application and we work towards participating more aggressively in the
forthcoming quarters and to take active steps to boost up our production capacity to meet the ever
increasing demand.
11. Dividend
(a) Current Financial Period Reported On
Any dividend declared for the current financial period reported on? No
Name of Dividend: -
Dividend Type: -
Dividend Rate: -
Par Value of Share: -
Tax Rate: -
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year?
No
(c) Date payable
The date payable for the dividend will be
Not applicable
(d) Books closure date
Not applicable
12. If no dividend has been declared / recommended, a statement to that effect.
No applicable
13. Interested Person Transactions for the Financial Period Ended 31 March 2009.
Aggregate value of all transactions conducted under a shareholders’ mandate approved at the AGM on
24 April 2009 pursuant to Rule 920 of the SGX-ST Listing Manual.
2009 2008
S$ ’000 S$ ’000
Juan Kuang Holdings Sdn Bhd (Group) 109 67
Juan Kuang Pte Ltd 74 48
-8-
CONFIRMATION BY THE BOARD
We, Ang Chiong Chai and Tan Boon Kiat being two directors of JK Yaming International Holdings Ltd do
hereby confirm on behalf of the directors that, to the best of our knowledge, nothing has come to the
attention of the board of directors of the Company which may render the first quarter 2009 financial
results to be false or misleading in any material aspect.
On behalf of the directors
Ang Chiong Chai Tan Boon Kiat
Executive Chairman Director
12/05/2009
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