UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 OCTOBER 2016
Contents PageUnaudited Condensed Consolidated Statement of Comprehensive Income 1
Unaudited Condensed Consolidated Statement of Financial Position 2 - 3
Unaudited Condensed Consolidated Statement of Changes In Equity 4
Unaudited Condensed Consolidated Statement of Cash Flows 5
Notes to the Interim Report 6 - 8
Additional Information to the Interim Report 9 - 13
Supplementary information 14
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE FOURTH QUARTER ENDED 31 OCTOBER 2016 INDIVIDUAL QUARTER CUMULATIVE QUARTER Current Year Quarter Preceding Year Corresponding Quarter Current Year To Date Preceding Year Corresponding Period 31.10.2016 31.10.2015 31.10.2016 31.10.2015 RM'000 RM'000 RM'000 RM'000 Revenue 35,349 27,480 121,824 99,491Investment gain/(loss) 3,457 (1,495) (1,792) (10,962) Cost of sale of development properties - 1,155 (480) (4,811) Operating expenses (25,051) (43,058) (66,261) (80,311) Other operating income 75,978 533,783 58,964 638,830
Profit from operation | 89,733 | 517,865 | 112,255 | 642,237 |
Finance costs | (5,627) | (3,127) | (13,496) | (13,182) |
Profit before taxation | 84,106 | 514,738 | 98,759 | 629,055 |
Income tax expense | (26,708) | (30,919) | (31,397) | (35,375) |
Profit for the financial period/year | 57,398 | 483,819 | 67,362 | 593,680 |
Foreign currency translation | 12,759 | 7,168 | 13,452 | 7,050 |
Fair value changes on hedging instrument 626 (1,046) 623 (1,024)
Other comprehensive income for the
period (net of tax) 13,385 6,122 14,075 6,026
Total comprehensive income for the period/year 70,783 489,941 81,437 599,706 Profit attributable to owners of the parent 57,398 483,819 67,362 593,680 Total comprehensive income attributable to owners of the parent 70,783 489,941 81,437 599,706Basic EPS (sen) 16.70 140.80 19.60 172.77
The Unaudited Condensed Consolidated Statements of Comprehensive Income should be read in conjunction with the Audited Financial Statements for the year ended 31 October 2015
Unaudited As At 31.10.2016 | Audited As At 31.10.2015 | |
RM'000 | RM'000 | |
ASSETS | ||
Non-current assets Property, plant and equipment | 55,530 | 3,465 |
Land held for property development | 421,447 | 384,425 |
Long term receivables | 20,361 | 23,650 |
Investment properties | 1,245,520 | 1,191,954 |
Other investments | 24,417 | 9,406 |
Deferred tax assets 3,622 10,480
Total Non-current Assets 1,770,897 1,623,380
Current assets | ||
Inventories | 115,981 | 85,955 |
Trade receivables | 579 | 1,818 |
Other receivables | 6,324 | 4,298 |
Tax recoverable | 5,363 | 4,603 |
Short term investments | 785,182 | 929,528 |
Short term deposits | - | 585 |
Cash and bank balances | 233,120 338,634 | |
Total Current Assets | 1,146,549 1,365,421 | |
TOTAL ASSETS | 2,917,446 2,988,801 |
Equity attributable to owners of the parent
Share capital 343,617 343,617
Reserves 2,166,655 2,257,026
Total equity 2,510,272 2,600,643
Unaudited As At 31.10.2016 | Audited As At 31.10.2015 | |
RM'000 | RM'000 | |
LIABILITIES | ||
Non-current liabilities | ||
Long term borrowings | 239,468 | 228,780 |
Cash flow hedge instrument | 213 | 1,067 |
Deferred tax liabilities 125,183 103,376
Total Non-current Liabilities 364,864 333,223
Current liabilities Cash flow hedge instrument | 1,140 | 1,177 |
Short term borrowings | 4,000 | 12,016 |
Trade payables | 4,758 | 198 |
Other payables | 32,133 | 31,921 |
Tax payable 279 9,623
Total Current Liabilities 42,310 54,935
TOTAL LIABILITIES | 407,174 | 388,158 |
TOTAL EQUITY AND LIABILITIES | 2,917,446 | 2,988,801 |
Net assets per share attributable to owners of the parent (RM) | 7.31 | 7.57 |
The Unaudited Condensed Consolidated Statement of Financial Position should be read in conjunction with the Audited Financial Statements for the year ended 31 October 2015
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FOURTH QUARTER ENDED 31 OCTOBER 2016Current Year To Date
Attributable to equity holders of the Company
Non-
Share Distributable Retained Total
Capital Reserve earnings Equity RM'000 RM'000 RM'000 RM'000
As at 1 November 2015 343,617 269,838 1,987,188 2,600,643
Total comprehensive income - 14,075 67,362 81,437
Dividend - - (171,808) (171,808)
As at 31 October 2016 343,617 283,913 1,882,742 2,510,272
Preceding Year Corresponding Period | ||||
At 1 November 2014 | 343,617 | 263,812 | 1,434,742 | 2,042,171 |
Total comprehensive income | - | 6,026 | 593,680 | 599,706 |
Dividend - - (41,234) (41,234) As at 31 October 2015 343,617 269,838 1,987,188 2,600,643
The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the year ended 31 October 2015
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 OCTOBER 201612 Months ended | ||
31.10.2016 RM'000 | 31.10.2015 RM'000 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Profit before tax | 98,759 | 629,055 |
Adjustments for non-cash item | (61,242) | (597,267) |
Working capital changes | (52,929) | (8,171) |
Net cash generated from operation | (15,412) | 23,617 |
Interest received | 14,060 | 10,496 |
Taxes paid | (16,103) | (16,322) |
Net cash (used in)/from operating activities | (17,455) | 17,791 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of FVTPL financial assets | (340,221) | (545,836) |
Proceeds from disposal of FVTPL financial assets | 482,268 | 106,158 |
Proceeds from disposal of investment properties | - | 17,596 |
Proceeds/deposit from disposal of non-current assets held for sale | - | 405,000 |
Additions of investment properties | (5,836) | (7,328) |
Purchase of other investment | (14,572) | - |
Changes in fixed deposits with maturity of more than 3 months | 585 | 2,542 |
Purchase of property, plant and equipment | (19,353) | (1,368) |
Dividends received from foreign investments 11,501 5,424 | ||
Net cash generated from/(used in) investing activities | 114,372 | (17,812) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
(Repayment of)/proceeds from borrowings, net | (8,016) | (18,210) |
Dividend paid to equity holders of the parent | (171,808) | (41,234) |
Interest paid | (12,260) | (13,964) |
Net cash used in financing activities | (192,084) | (73,408) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (95,167) | (73,429) |
EFFECTS OF EXCHANGE RATE CHANGES | (10,347) | 64,878 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 338,634 347,185 |
CASH AND CASH EQUIVALENTS AT END OF YEAR 233,120 338,634
The Unaudited Condensed Consolidated Cash Flow Statement should be read in conjunction with the Audited Financial Statements for the year ended 31 October 2015
Explanatory Notes Pursuant to MFRS 134 "Interim Financial Reporting"-
Basis of Preparation
The condensed consolidated interim financial statements for the year ended 31 October 2015 of the Group have been prepared in accordance with the International Financial Reporting Standards compliant framework, Malaysian Financial Reporting Standards ("MFRS"), MFRS 134 "Interim Financial Reporting", Paragraph 9.22 and Appendix 9B of the Bursa Malaysia Securities Berhad ("Bursa Securities") Main Market Listing Requirements ("Main LR"), and should be read in conjunction with the Group's audited financial statements for the financial year ended 31 October 2015.
The explanatory notes attached to these condensed consolidated interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the financial year ended 31 October 2015.
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Accounting Policies
The accounting policies and methods of computation and presentation adopted by the Group in this quarterly report are consistent with those adopted in the audited financial statements for the financial year ended 31 October 2015 except for the adoption of the following new MFRSs, Amendments to MFRSs and IC Interpretations which are applicable for the Group's financial period beginning 1 November 2015:-
Effective for annual periods beginning on or after 1 January 2016MFRS 14 Regulatory Deferral Accounts
Amendment to MFRSs Annual Improvements to FRSs 2012 - 2014 Cycle MFRS 116 and MFRS 138 Clarification of Acceptable Methods of
Depreciation and Amortisation Amendments to MFRS 11 Accounting for Acquisitions of Interests in
Joint Operations
MFRS 127 Equity Method in Separate Financial Statements
MFRS 101 Disclosure Initiatives
MFRS 10, MFRS 12 Investment Entities: Applying the Consolidation
and MFRS 128 Exception
Effective for annual financial periods beginning on or after 1 January 2018MFRS 9 Financial Instruments
MFRS 15 Revenue from Contracts with Customers
Effective for annual financial periods beginning on or after 1 January 2019MFRS 16 Leases
(Supersedes MFRS 117)
DeferredMFRS 116 and MFRS 141 Agriculture: Bearer Plants
MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture
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Annual Audited Financial Statements
The audited financial statements of the Company for the preceding financial year ended 31 October 2015 were not subject to any qualification.
-
Comments on the Seasonality or Cyclicality of Operations
The operations of the Group were not affected by any seasonal or cyclical factors.
-
Unusual Items
Save for the information disclosed in this interim financial report, there were no unusual items affecting assets, liabilities, equity, net income or cash flow.
-
Changes in Estimates of Amounts Reported Previously
There were no material changes in estimates of amounts used in the preparation of the financial statements in the current financial quarter and current financial period as compared to the previous corresponding financial quarterly and financial period.
-
Issuances, Cancellations, Repurchases, Resale and Repayments of Debt and Equity
There were no issuances, cancellations, repurchases, resale and repayments of debt and equity securities for the current quarter and the financial year-to-date.
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Dividends Paid
A final dividend in respect of financial year ended 31 October 2015, of 12.0 sen single tier dividend per ordinary share amounting RM41,234,011 and a special single tier dividend of 38.0 sen per ordinary share amounting RM130,574,369 on 343,616,761 ordinary shares, thereby totalling RM171,808,380, was approved by the shareholders at the Annual General Meeting held on 24 March 2016 and was paid on 15 April 2016.
Save as disclosed, there were no other dividends paid during the current quarter under review and financial period-to-date.
-
Segment Revenue and Segment Result
The analysis of the Group operations for the period ended 31 October 2016 is as follows: -
Total
By Industries
Segment Assets Revenue Results Employed RM'000 RM'000 RM'000
Property Investment 48,238 48,043 641,080
Property Development 480 (17,567) 763,965
Investment Holding 32,787 11,882 827,006
Australian Operations 40,319 56,637 676,351
Others - (236) 59
Unallocated Corporate Assets - - 8,985 121,824 98,759 2,917,446
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Valuation of Property, Plant and Equipment
The valuations of property, plant and equipment have been brought forward, without amendment from the previous annual financial statements.
-
Material Events Subsequent to the End of the Interim Period
There were no material events subsequent to the end of the financial period reported that have not been reflected in these financial statements.
-
Changes in the Composition of the Group
There were no other changes in the composition of the Group for the financial period ended 31 October 2016.
-
Derivatives
The Group has the following derivative agreement to hedge against interest rate risk:
Type of Derivatives
Notional Value
Fair Value
AUD'000
AUD'000
Interest rate swap
28/05/2014 - 29/05/2017
25,000
185
27/02/2015 - 27/02/2018
25,000
239
The rationale of this interest rate swap is to have certainty of interest payment and cash flow. The fair value of the interest rate swap is the estimated amount that the company would receive or pay to terminate the swap. It represents the difference between the fixed and floating rate of the swap as at 31 October 2016.
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Changes in Contingent Liabilities or Contingent Assets since the Last Annual Reporting Date
There were no material changes in contingent liabilities or contingent assets since the last audited reporting date.
- Capital Commitments
The capital expenditure approved and contracted for amounted to RM4,720,000 (2015: RM nil).
PART B Explanatory Notes Pursuant to Appendix 9B of the Bursa Malaysia Securities Berhad Main Market Listing Requirements 1. Detailed analysis of the performance for the current quarter and year-to-dateThe performances of the respective business sectors are as follows:
Revenue
4Q 2016 4Q 2015 YTD2016 YTD2015 RM'000 RM'000 RM'000 RM'000
Property Investment 12,082 11,445 48,238 43,837
Property Development - 1,010 480 2,073
Investment Holding 10,529 4,410 32,787 11,992 Australian Operations 12,738 10,615 40,319 41,589
35,349 27,480 121,824 99,491
Profit/(loss) before tax | ||||
Property Investment | 27,935 | 402,621 | 48,043 | 419,640 |
Property Development | (9,696) | 256 | (17,567) | (159) |
Investment Holding | 23,056 | 74,068 | 11,882 | 163,670 |
Australian Operations | 42,823 | 37,692 | 56,637 | 45,856 |
Others | (12) | 101 (236) | 48 | |
84,106 | 514,738 98,759 | 629,055 |
Property Investment
Higher revenue reported for the current quarter compared to the preceding year corresponding period was mainly due to higher occupancy coupled with higher rental rates achieved. The current investment properties still enjoy high occupancy and will continue to contribute positively to the Group. The higher YTD 2016 revenue was mainly due to higher rental revenue from Plaza Batai which was undergoing renovation in a major part of the same period of YTD 2015.
The preceding year's corresponding quarter included a gain of RM403.9 million from a disposal of land. Excluding this gain, higher profit before tax in the current quarter is due to higher fair value adjustment on investment properties, allocation of corporate and administrative costs to property development division in the current year.
Property Development
The property development division continues to incur operating losses in the current period under review other than that relating to the sale of the low-cost shops in all the periods concerned. Higher losses in the current quarter and YTD 2016 were registered as a result of marketing costs, corporate and administrative costs allocated to this division. No sale of Aira Residence units were registered in the current financial year as the sales launch was only held in October 2016.
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Review of Performance (Cont'd.)
Investment Holding
The Group recorded higher revenue mainly from higher dividend income from its overseas investment and also higher distribution income from its placement with unit trusts in all the periods concerned.
For the quarter under review, it recorded a gain of RM23.1 million compared to RM74.1 million gain in the preceding year corresponding period due mainly to foreign exchange gains of RM11.3 million as the Ringgit weakened against USD and SGD in the current period, while foreign exchange gains of RM71.1 million was registered in the the preceding year's corresponding period.
YTD 2016's profit included a foreign exchange loss of RM15.8 million as the Ringgit strengthened against USD and SGD in the current year, while YTD 2015's profit included a foreign exchange gain of RM163.1 million.
Australian Operations
Higher revenue recorded for the current quarter as compared to preceding year corresponding quarter was mainly due to higher exchange rate. Lower revenue for YTD 2016 compared to the preceding year was mainly due to sales of residential units in 2015 and reduction in share of revenue arising from the disposal of 50% interest in 7 Bayview Terrace ("7BVT"), a joint operation arrangement on 31 July 2015.
For the quarter under review, Australian operations recorded a higher profit in the current quarter and YTD 2016 compared to the preceding year's corresponding period. During the current quarter, a higher fair value gain of RM17.8 million was recognised for investment properties (2016's RM35.6 mil vs 2015's RM17.8 mil), coupled with higher other income and lower finance costs in the current periods, offset by a gain on disposal of 50% interest in 7BVT since 31 July 2015.
- Comments on Material Changes in the Profit/(Loss) Before Taxation for the Quarter Reported as Compared with the Preceding Quarter
For the quarter under review, the Group achieved a profit before tax of RM84.1 million compared to profit before tax of RM44.6 million in the preceding quarter ended 31 July 2016.
The performance of the respective business sectors are as follows:
Profit/(loss) before tax
4Q 2016 3Q 2016
RM'000 RM'000
Property Investment 27,935 9,575
Property Development (9,696) (5,589)
Investment Holding 23,056 35,437
Australian Operations 42,823 5,265 Others (12) (60)
84,106 44,628
Property Investment
For the quarter under review, it recorded a higher profit of RM27.9 million compared to profit of RM9.6 million in the preceding quarter due to the inclusion of fair value gain on properties of RM20.7 million.
Property Development
For the quarter under review, the property division recorded a higher loss of RM9.0 million mainly due to higher marketing expenses incurred prior to the launching of Aira Residence project in October 2016.
SPB - Selangor Properties Bhd published this content on 27 December 2016 and is solely responsible for the information contained herein.
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