ADVANCED INTEGRATED MANUFACTURING CORP. 
By
Registration No: 200405216C
9 months
9 months
3Q FY2013 3Q FY2012
Increase/ (Decrease)
ended
30-Sep-2013
ended
30-Sep-2012
Increase/ (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Revenue 15,796 15,883 -0.5% 49,488 42,587 16.2% Cost of sales (13,249) (13,263) -0.1% (42,080) (35,368) 19.0% Gross profit 2,547 2,620 -2.8% 7,408 7,219 2.6%
Other income 80 12 566.7% 309 29 965.5% Selling & marketing expenses (17) 4 N/M (51) (61) -16.4% Administrative expenses (1,880) (1,906) -1.4% (5,794) (5,149) 12.5% Other operating expenses (1) (44) -97.7% (1) (346) -99.7% Finance cost (138) (104) 32.7% (393) (204) 92.6% Profit before tax 591 582 1.5% 1,478 1,488 -0.7% Income tax (252) (217) 16.1% (580) (547) 6.0% Total profit after tax 339 365 -7.1% 898 941 -4.6%
Equity holders of the parent, net of tax 339 365 -7.1% 898 1,026 -12.5% Non-controlling interests, net of tax - - N/M - (85) N/M
339 365 -7.1% 898 941 -4.6%
STATEM ENT OF COM PREHENSIVE INCOM E
Group Group
9 months
9 months
3Q FY2013 3Q FY2012
Increase/ (Decrease)
ended
30-Sep-2013
ended
30-Sep-2012
Increase/ (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Profit for the period 339 365 -7.1% 898 941 -4.6%
Currencies translation differences arising from consolidation
Fair value changes on available-for-sale investments
55 98 -43.9% (93) 235 N/M (16) (124) -87.1% 42 (337) N/M
Other comprehensive income for the period 378 339 11.5% 847 839 1.0%
Equity holders of the Parent, net of tax 378 339 11.5% 847 924 -8.3% Non-controlling interests, net of tax - - N/M - (85) N/M
378 339 11.5% 847 839 1.0%
Profit before tax is arrived at after (charging) / crediting:
Group Group
9 months
9 months
3Q FY2013 3Q FY2012
Increase/ (Decrease)
ended
30-Sep-2013
ended
30-Sep-2012
Increase/ (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Depreciation of property, plant and equipment
Property, plant and equipment written off
Gain on disposal of property, plant and equipment
Gain / (loss) on exchange differences
Interest income Interest expense Inventory written off
Post employment benefit liabilities
(297) (250) 18.8% (929) (631) 47.2% (30) - N/M (30) - N/M
10 - N/M 10 - N/M
20 (44) N/M 205 (346) N/M
1 1 0.0% 2 2 0.0% (124) (91) 36.3% (346) (172) 101.2%
- - N/M (1) - N/M
10 (10) N/M (51) (29) 75.9%
Page 1 of 6
1 (b) (i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year.STATEM ENT OF FINANCIAL POSITIONGroup Company
As at
30-Sep-13
As at
31-Dec-12
Increase/ (Decrease)
As at
30-Sep-13
As at
31-Dec-12
Increase/ (Decrease)
US$'000 US$'000 % US$'000 US$'000 %
Property, plant and equipment 8,695 8,939 -2.7% - 81 N/M Investment in subsidiaries - - N/M 27,874 27,874 0.0% Intangible assets 1,832 1,832 0.0% - - N/M Available-for-sale investments 110 68 61.8% - - N/M Deferred income tax assets 94 94 0.0% - - N/M
Total non-current assets 10,731 10,933 -1.8% 27,874 27,955 -0.3%
Inventories 20,395 23,835 -14.4% - - N/M Trade and other receivables 14,885 16,661 -10.7% 40 41 -2.4% Amount due from subsidiaries - - N/M 1,001 2,095 -52.2% Amount due from related parties 1 - N/M - - N/M Deposits and prepayment 723 228 217.1% 31 10 210.0% Cash and cash equivalents 4,478 3,388 32.2% 162 48 237.5%
Total current assets 40,482 44,112 -8.2% 1,234 2,194 -43.8%
Share capital 28,394 28,394 0.0% 28,394 28,394 0.0% Revenue reserves 5,957 5,911 0.8% 1,154 2,172 -46.9% Capital reserves (524) (524) 0.0% (574) (574) 0.0% Fair value reserves 286 244 17.2% - - N/M Translation reserves (4,228) (4,135) 2.2% - - N/M
Total equity 29,885 29,890 0.0% 28,974 29,992 -3.4%
Deferred income tax liabilities | 309 | 310 | -0.3% | 14 | 14 | 0.0% | |||
Borrowings (due after a year) | 4,433 | 5,245 | -15.5% | - | - | N/M | |||
Obligation under finance lease (due after a year) | 776 | 371 | 109.2% | - | - | N/M | |||
Post employment benefit liabilities | 270 | 219 | 23.3% | - | - | N/M | |||
Total non-current liabilities | 5,788 | 6,145 | -5.8% | 14 | 14 | 0.0% | |||
Current liabilities Trade and other payables | 5,593 | 8,377 | -33.2% | - | - | N/M | |||
Accruals | 955 | 925 | 3.2% | 83 | 102 | -18.6% | |||
Amount due to related parties | 9 | - | N/M | - | - | N/M | |||
Borrowings (due within a year) | 7,327 | 8,276 | -11.5% | - | - | N/M | |||
Obligation under finance lease (due within a year) | 357 | 166 | 115.1% | - | - | N/M | |||
Current income tax liabilities | 1,262 | 1,229 | 2.7% | - | 4 | N/M | |||
Derivatives | 37 | 37 | 0.0% | 37 | 37 | 0.0% | |||
Total current liabilities | 15,540 | 19,010 | -18.3% | 120 | 143 | -16.1% | |||
TOTAL EQUITY AND LIABILITIES | 51,213 | 55,045 | -7.0% | 29,108 | 30,149 | -3.5% |
As at
30-Sep-13
As at
31-Dec-12
SECURED
US$'000 US$'000
Amount repayable within 1 year or less, or on demand 7,684 8,442
Amount repayable after 1 year 5,209 5,616
UNSECURED
Amount repayable within 1 year or less, or on demand - - Amount repayable after 1 year - -
Details of any collaterals
Mortgage loans amounting to US$ 5,077,266 (31 December 2012: US$ 5,653,893) are secured against freehold land, freehold building and leasehold properties with net book value of US$ 4,922,801 (31 December 2012: US$ 4,980,473).
Finance lease obligations of US$ 1,132,832 (31 December 2012: US$ 536,830) are secured against the assets purchased. Borrowings of US$ 6,226,997 (31 December 2012: US$ 7,022,962) are secured by corporate guarantees from the Company.
Borrowings of US$ 455,700 (31 December 2012: US$ 844,323) are secured by a debenture over the assets of a subsidiary.
Page 2 of 6
1 (c) A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. Group Group
9 months ended
9 months ended
3Q FY2013 3Q FY2012
30-Sep-2013
30-Sep-2012
US$'000 US$'000 US$'000 US$'000
Post employment benefit liabilities (10) 10 51 29
Depreciation of property, plant and equipment 297 250 929 631
Exchange differences 2 48 (221) 206
Property, plant and equipment written off 30 - 30 - Interest expense 124 91 346 172
Interest income (1) (1) (2) (2) Inventory written off - - 1 - Gain on disposal of property, plant and equipment (10) - (10) - Operating profit before working capital changes 1,023 980 2,602 2,524
In inventories 469 (1,687) 3,439 (1,515) In trade and other receivables 1,283 (744) 1,776 (2,045) In deposits and prepayment (290) (329) (495) (398) In trade and other payables (310) 1,672 (2,784) 2,095
In accruals (15) 240 30 462
In amount due to / from a related parties (4) 310 8 290
1,133 (538) 1,974 (1,111)
Income tax paid (215) (478) (548) (755) Interest paid (124) (91) (346) (172) Interest received 1 1 2 2
Acquisition of subsidiary (Note 1) - - - (1,845) Proceeds from disposal of property, plant and equipment 165 - 170 - Purchase of property, plant and equipment (104) (241) (202) (380) Net cash used in investing activities 61 (241) (32) (2,225)
Repayment of trade financing (12,172) (5,539) (34,946) (13,589) Proceeds from trade financing 11,558 4,700 34,091 14,709
Repayment of term loan (227) (186) (688) (406) Proceeds from term loan - 1,439 - 2,207
Repayment of obligation under finance lease (80) (23) (167) (58) Dividends paid - - (852) (940) Net cash used in from financing activities (921) 391 (2,562) 1,923
Bank balances, deposits and cash | 4,478 | 2,705 | 4,478 | 2,705 | |||
Bank overdraft | - | (74) | - | (74) | |||
4,478 | 2,631 | 4,478 | 2,631 |
USD
Properties, plant and equipment | 1,451,458 |
Inventories | 590,040 |
Trade and other receivables | 1,096,044 |
Deposits and prepayments | 24,616 |
Cash and bank equivalents | 151,972 |
Trade and other payables | (674,183) |
Accruals | (140,520) |
Amount due to related parties | (14,091) |
Trade financing | (633,473) |
Hire puchase creditors | (142,870) |
Provision for taxation | (46,602) |
Net assets acquired: | 1,662,391 |
Goodwill | 499,474 |
Total consideration paid | 2,161,865 |
Less: 3,750,000 treasury shares transferred | (165,270) |
Total cash consideration paid | 1,996,595 |
Less: Cash of subsidiary acquired | (151,972) |
Cash outflow on acquisition of subsidiary | 1,844,623 |
Page 3 of 6
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 | Share Capital | Treasury Shares | Capital Reserves | Revenue Reserves | Fair value Reserves | Translation Reserves | Non- controlling Total Interests Equity | ||||||
Group | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 | US$'000 US$'000 | ||||||
Balance at 01-Jan-2013 | 28,739 | (345) | (524) | 5,911 | 244 | (4,135) | - 29,890 | ||||||
Total comprehensive income for the period | - | - | - | 335 | - | (75) | - 260 | ||||||
Balance at 31-Mar-2013 | 28,739 | (345) | (524) | 6,246 | 244 | (4,210) | - 30,150 | ||||||
Total comprehensive income for the period | - | - | - | 224 | 58 | (73) | - 209 | ||||||
Dividend paid - - - (852) - - - (852) | |||||||||||||
Balance at 30-Jun-2013 | 28,739 | (345) | (524) | 5,618 | 302 | (4,283) | - 29,507 | ||||||
Total comprehensive income for the period | - | - | - | 339 | (16) | 55 | - 378 | ||||||
Balance at 30-Sep-2013 | 28,739 | (345) | (524) | 5,957 | 286 | (4,228) | - 29,885 |
(4,235) 52 (4,183) | 533 | 29,032 | |||||||||||||
(4,235) 52 (4,183) | (57) | 383 | |||||||||||||
(4,235) 52 (4,183) | 476 | 29,415 | |||||||||||||
Total comprehensive income for the period | - | - | - | 170 | (110) | 85 | (28) | 117 | |||||||
Dividend paid | - | - | - | (940) | - | - | - | (940) | |||||||
Acquisition of subsidiaries | - | 959 | (346) | - | - | - | (448) | 165 | |||||||
Balance at 30-Jun-2012 | 28,739 | (345) | (358) | 4,788 | 31 | (4,098) | - | 28,757 | |||||||
Total comprehensive income for the period | - | - | - | 365 | (124) | 98 | - | 339 | |||||||
Balance at 30-Sep-2012 | 28,739 | (345) | (358) | 5,153 | (93) | (4,000) | - | 29,096 |
Total comprehensive income for the
Page 4 of 6
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 shares, 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 were no changes in the issued share capital of the Company during 3Q FY2013.
As at 30 September 2013, there were 2,620,725 treasury shares held by the Company with a total consideration of US$0.3m (31 December 2012: 2,620,725 treasury shares worth US$0.3m). These shares were held as treasury shares and deducted against shareholders' equity. There was no purchase of ordinary shares to be held as treasury shares for 3Q FY2013 (3Q FY2012: NIL).
As at 30 September 2013, there were 3,522,600 outstanding call options, each carrying the right to subscribe for one share at an exercise price of S$0.12 per share.
('000) ('000) Total number of issued shares 658,990 658,990
Total number of treasury shares (2,621) (2,621) Total number of issued shares excluding treasury shares 656,369 656,369
('000) US$'000
Balance as at 01-Jan-2013 and 30-Sep-2013 2,621 345
This consolidated financial information has not been audited nor reviewed by the external 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 beenThe Group and Company have applied the same accounting policies and methods of computations in the financial statements for the current financial year and is consistent with those of the most recent audited financial statements for the financial year ended 31 December 2012 except for the adoption of the new and revised Financial Reporting Standards which became effective for the financial period beginning on or after 1 January 2013. The adoption of these new and revised accounting standards did not give rise to any significant impact on the financial statements for the financial year ended 31 December 2013.
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 and the Company have adopted the new and revised Financial Reporting Standards (FRS) which are effective for its financial year beginning 1 January
2013. These changes in accounting policies are assessed to have no material impact to the current or prior results of the Group and of the Company.
9 months ended
9 months ended
3Q FY2013 3Q FY2012
30-Sep-2013
30-Sep-2012
Net Profit after tax (US$'000) 339 365 898 941
Weighted average number of shares in issue ('000) 656,369 652,234 656,369 652,234
Earnings per share (US cents) 0.05 0.06 0.14 0.14
On a fully diluted basis (US cents) 0.05 0.06 0.14 0.14
The weighted average number of shares is computed based on issued shares excluding treasury shares.
7. Net asset value (for the Issuer and Group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year of the Group and Company.
As at
30-Sep-13
As at
31-Dec-12
As at
30-Sep-13
As at
31-Dec-12
Net assets value (US$'000) 29,885 29,890 28,974 29,992
Number of shares in issue ('000) 656,369 656,369 656,369 656,369
Net assets value per ordinary share (US cents) 4.55 4.55 4.41 4.57
The net assets value per ordinary share is computed based on issued shares excluding treasury shares.
Page 5 of 6
8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:- (a) 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; and (b) any material factors that affected cash flow, working capital, assets or liabilities of the group during the current financial period reported on. REVIEW OF PERFORMANCE a) Income Statement
The Group's performance was relatively stable in Q3 FY2013 as compared to Q3 FY2012.
Q3 FY2013 sales declined slightly by 0.5% to US$15.8m as compared to Q3 FY2012 sales of US$15.9m, with cost of sales flat at US$13.2m for Q3 FY2013, as compared to US$13.3m during Q3 FY2012. Gross margin declined slightly by 0.4% from 16.5% in 3Q FY2012 to 16.1% in 3Q FY2013.
Profit before tax increased slightly by 1.5% from US$0.58m in 3Q FY2012 to US$0.59m in 3Q FY2013.
During Q3 FY2013, the Group continues to focus on its working capital management, especially in the area of inventory management and procurement processes. As a result, inventories continued to declined from US$23.8m as at 4Q FY2012 to US$20.4m as at the end of 3Q FY2013, while trade and other payables decreased by US$2.5m from US$8.4m as at 4Q FY2012 to US$5.6m as at 3Q FY2013.
Trade and other receivables decreased by US$1.8m from US$8.4m as at 4Q FY2012 to US$5.6m as at 3Q FY2013 due to prompt collections of receivables from customers.
The increase in obiligation under finance lease of US$0.8m was due to the acquisition of sheet metal fabrication equipment as announced on 17 July 2013.
As a result of better working capital management, net cash generated from operating activities was US$1.8m in Q3 FY2013 compared to outflow of US$0.1m in Q3
FY2012. This was due mainly to better collection of trade receivables and lower material purchases.
Net cash of US$0.9m used in financing activities during Q2 FY2013 was mainly for repayment of borrowings.
Not applicable.
10. A commentary at the date of announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next report period and the next 12 months.
The Board expects that business conditions in the avionics industry will continue to remain competitive in the forthcoming 12 months.
As announced previously, the Company has executed letters of offer to purchase a bungalow lot and 3 penthouses in Penang, Malaysia. Completion of the purchase of the bungalow lot is expected to take place in December 2013. Further announcements relating to the acquisition of the aforesaid properties will be made as and when appropriate.
Nil
(b) Corresponding Period of the Immediately Preceding Financial YearNil
12. If no dividend has been declared (recommended), a statement to that effect.No dividend has been declared or recommended for the third quarter ended 30 September 2013.
13. If the Group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.The Group does not have a general mandate for interested person transactions under Rule 920.
14. Confirmation by the Board pursuant to Rule 705(5) of the Listing Manual.
Pursuant to Rule 705(5) of the SGX-ST Listing Manual, we, Dr Tan Kim Yong and Tan Gim Seng, being Directors of Advanced Integrated Manufacturing Corp. Ltd. ("the Company") do hereby confirm on behalf of the Board of Directors of the Company that, to the best of their knowledge, nothing has came to the attention of the Board of Directors of the Company which may render the Group's unaudited financial statements for the third quarter ended 30 September 2013 to be false or misleading in any material aspect.
On behalf of the Board of Directors:
Dr Tan Kim Yong Tan Gim Seng
Group Chairman and CEO Executive Director
Ong Beng Hong
Company Secretary
08 November 2013
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