LHN : ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2021

Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited and the Singapore Exchange Securities Trading Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

LHN LIMITED

賢能集團有限公司*

(Incorporated in the Republic of Singapore with limited liability)

(Hong Kong stock code : 1730) (Singapore stock code : 41O)

ANNOUNCEMENT OF INTERIM RESULTS

FOR THE SIX MONTHS ENDED 31 MARCH 2021

FINANCIAL HIGHLIGHTS

	For the six months ended
	31 March
	2021		2020	Change
	S$'000		S$'000	%
Revenue	64,478		51,619	24.9
Gross Profit	35,183		21,916	60.5
Profit for the period and attributable to owners of the Company	14,809		3,176	366.3
Basic earnings per share (Singapore cents)	3.68		0.79	365.8

• For identification purpose only

INTERIM RESULTS

The board (the "Board") of directors (the "Directors") of LHN Limited (the "Company") hereby announces the interim condensed consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the six months ended 31 March 2021, together with the comparative figures for the six months ended 31 March 2020. The Group's interim results for the six months ended 31 March 2021 are unaudited, but have been reviewed by the audit committee of the Company (the "Audit Committee").

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 MARCH 2021

	Note	2021	2020
		(unaudited)	(unaudited)
		S$'000	S$'000
Revenue	6	64,478	51,619
Cost of sales	9	(29,295)	(29,703)
Gross profit		35,183	21,916
Other income	7	5,963	2,757
Other operating expenses
- Impairment loss on trade, other and lease receivables		(1,050)	(197)
- Others	8	(1,062)	(444)
Selling and distribution expenses	9	(843)	(751)
Administrative expenses	9	(15,612)	(13,185)
Finance cost	10	(2,508)	(2,576)
Share of results of associates and joint ventures, net of tax		925	579
Fair value losses on investment properties		(2,720)	(4,317)
Profit before income tax
	18,276	3,782
Income tax expense	11	(3,012)	(315)
Profit for the period		15,264	3,467
Other comprehensive (loss)/income
Item that will not be reclassified subsequently to profit or loss
Currency translation differences arising from consolidation		(6)	(26)
Financial assets, at FVOCI
- Fair value gain - equity investment		-	13
Share of other comprehensive income of joint venture		5	4
Other comprehensive loss		(1)	(9)
Total comprehensive income for the period		15,263	3,458
Profit attributable to:
Equity holders of the Company		14,809	3,176
Non-controlling interests		455	291
Profit for the period		15,264	3,467
Total comprehensive income attributable to:
Equity holders of the Company		14,814	3,184
Non-controlling interests		449	274
Total comprehensive income for the period		15,263	3,458
Earnings per share for profit attributable to equity holders of
the Company
Basic and diluted (cents)	13	3.68	0.79

Page 2 of 24

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2021

		31 March	30 September
		2021	2020
	Note	(unaudited)	(audited)
		S$'000	S$'000
ASSETS
Non-current assets
Property, plant and equipment		42,460	40,363
Right-of-use assets		44,387	35,184
Investment properties		140,230	115,578
Intangible assets		6	40
Investment in associates		250	178
Investment in joint ventures		17,816	17,186
Deferred tax assets		149	77
Long-term prepayments		142	116
Lease receivables		21,585	26,149
		267,025	234,871
Current assets
Inventories		91	75
Trade and other receivables	14	36,306	43,366
Grant receivables		494	1,058
Loans to joint ventures and associates		6,598	4,959
Prepayments		1,778	1,823
Lease receivables		18,596	17,104
Cash and bank balances		36,348	38,446
Fixed deposits		1,379	2,046
		101,590	108,877
TOTAL ASSETS		368,615	343,748
EQUITY
Capital and Reserves
Share capital	15	63,407	63,407
Reserves		69,045	58,234
		132,452	121,641
Non-controlling interests		2,388	1,939
TOTAL EQUITY		134,840	123,580
LIABILITIES
Non-current liabilities
Deferred tax liabilities		3,568	3,573
Other payables	16	21	21
Provisions		781	212
Bank borrowings		68,767	55,997
Lease liabilities		72,276	66,182
		145,413	125,985
Current liabilities
Trade and other payables	16	33,363	43,701
Deferred grant income		885	927
Provisions		287	1,106
Bank borrowings		10,263	10,725
Lease liabilities		37,960	33,193
Current income tax liabilities		5,604	4,531
		88,362	94,183
TOTAL LIABILITIES		233,775	220,168
TOTAL EQUITY AND LIABILITIES		368,615	343,748

Page 3 of 24

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE SIX MONTHS ENDED 31 MARCH 2021

	2021	2020
	(unaudited)	(unaudited)
	S$'000	S$'000
Cash flows from operating activities:
Profit before income tax	18,276	3,782
Share of results of associates and joint ventures, net of tax	(925)	(579)
Adjustments for:
Amortisation of intangible assets	34	34
Depreciation of property, plant and equipment	3,175	4,246
Depreciation of Right-of-use assets	7,102	5,964
(Gain)/loss on disposal of property, plant and equipment	(26)	39
Property, plant and equipment written off	13	39
Fair value losses on investment properties	2,720	4,317
Gain from net investment in subleases	(1,880)	(433)
Gain from termination of lease	(2)	-
Lease modification losses	698	-
Impairment loss on trade, other and lease receivables	1,050	197
Provision for losses from onerous contract	-	270
Finance income	(714)	(759)
Finance cost	2,508	2,576
Operating profit before working capital changes	32,029	19,693
Changes in working capital:
- Inventories	(16)	(44)
- Trade and other receivables	5,091	(388)
- Trade and other payables	(10,246)	(1,683)
Cash generated from operations	26,858	17,578
Interest expenses paid	(28)	-
Income tax paid	(2,072)	(414)
Income tax refunded	62	825
Net cash generated from operating activities	24,820	17,989
Cash flows from investing activities:
Additions to property, plant and equipment	(5,596)	(19,602)
Additions to investment properties	(17,238)	(21)
Purchase of financial assets, at FVOCI	(115)	-
Additions to other asset	-	(128)
Cash outflow on acquisition of joint venture	-	(500)
Proceeds from disposal of property, plant and equipment	81	253
Disposal of financial assets, at FVOCI	-	330
Loans to joint ventures and associates, net	(1,591)	(3,525)
Receipts from lease receivables	9,931	7,472
Interest received from lease receivables	609	658
Cash outflow on incorporation of associate	(80)	-
Dividend from associate	309	264
Interest received	50	213
Net cash used in investing activities	(13,640)	(14,586)
Cash flows from financing activities:
Decrease in fixed deposits - pledged	-	4,710
Proceeds from bank borrowings	18,377	17,761
Repayment of bank borrowings	(5,998)	(3,729)
Repayment of lease liabilities	(19,850)	(16,858)
Refund of capital to non-controlling shareholder	-	(1)
Interest expenses paid	(2,451)	(2,612)
Dividend paid	(4,003)	(2,043)
Dividend paid to non-controlling shareholder	-	(120)
Net cash used in financing activities	(13,925)	(2,892)
Net (decrease)/increase in cash and cash equivalents	(2,745)	511
Cash and cash equivalents at beginning of period	39,127	21,300
Effect of currency translation on cash and cash equivalents	(20)	(23)
Cash and cash equivalents at end of period
36,362	21,788

Page 4 of 24

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE SIX MONTHS ENDED 31 MARCH 2021

		2021	2020
		(unaudited)	(unaudited)
		S$'000	S$'000
Consolidated cash and cash equivalents are represented by:
Cash and bank balances	36,348	18,140
Fixed deposits	1,379	4,991
		37,727	23,131
Less: Pledged fixed deposits	(1,365)	(1,343)
Cash and cash equivalents as per consolidated statement of cash flows
36,362	21,788

Page 5 of 24