Poh Kong Berhad : The Financial Period Ended 31 October 2021

POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE FIRST QUARTER ENDED 31 OCTOBER 2021

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	AS AT		AS AT
	31.10.2021	31.7.2021
	RM'000		RM'000
			(Audited)
ASSETS
NON-CURRENT ASSETS
Property, plant and equipment	91,595		92,280
Right of use assets	47,822		53,042
Investment properties	12,543		12,709
Investment in an associate	7,765		7,765
Other investments	228		228
Goodwill on consolidation	1,485		1,485
Deferred tax assets	11,722		11,849
	173,160		179,358
CURRENT ASSETS
Inventories	578,076		594,777
Trade and other receivables	6,643		2,890
Deposits and prepayments	10,805		10,792
Current tax assets	2,268		835
Fixed deposits placed with licensed banks	14,462		10,259
Cash and bank balances	27,234		9,414
	639,488		628,967
TOTAL ASSETS	812,648	808,325
EQUITY AND LIABILITIES
Equity attributable to owners of the Company
Share capital	205,176		205,176
Reserves	402,417		396,998
TOTAL EQUITY	607,593		602,174
NON-CURRENT LIABILITIES
Long-term borrowings	40,851		46,124
Deferred tax liabilities	13,970		13,970
	54,821		60,094
CURRENT LIABILITIES
Trade and other payables	11,461		11,016
Deposits and accruals	10,499		6,699
Contract liabilities	9,482		9,225
Provision for restoration costs	400		400
Amount due to ultimate holding company	1,306		1,331
Amount due to directors (Note 1)	2,208		1,894
Short-term borrowings	110,125		110,854
Current tax liabilities	4,753		4,638
	150,234		146,057
TOTAL LIABILITIES	205,055		206,151
TOTAL EQUITY AND LIABILITIES	812,648		808,325
Net assets per share attributable to owners of	1.48	1.47
the Company (RM)

Note 1: Amount due to directors consists of directors' fee and directors' other emoluments.

(The Unaudited Condensed Consolidated Statement of Financial Position should be read in

conjunction with the Audited Financial Statements for the year ended 31 July 2021) 1

POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE FIRST QUARTER ENDED 31 OCTOBER 2021

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	INDIVIDUAL QUARTER		CUMULATIVE QUARTER
	QUARTER		QUARTER		PERIOD		PERIOD
	ENDED		ENDED		ENDED		ENDED
	31.10.2021	31.10.2020	31.10.2021	31.10.2020
	RM'000		RM'000		RM'000		RM'000
Revenue	175,294	221,905	175,294	221,905
Other operating income	1,424	790	1,424	790
Operating expenses	(167,894)	(201,045)	(167,894)	(201,045)
Profit from operations	8,824	21,650	8,824	21,650
Finance income	63	77	63	77
Finance costs	(1,256)		(2,462)		(1,256)		(2,462)
Profit before tax	7,631	19,265	7,631	19,265
Income tax expense	(2,212)		(4,621)		(2,212)		(4,621)
Profit after tax	5,419		14,644		5,419		14,644
Other comprehensive expense	-	-	-	-
Total Comprehensive Income	5,419	14,644	5,419	14,644
Profit after tax attributable to:
Owners of the Company	5,419	14,644	5,419	14,644
Non-controlling Interests	-		-		-		-
	5,419	14,644	5,419	14,644
Total comprehensive income attributable to:
Owners of the Company	5,419	14,644	5,419	14,644
Non-controlling Interests	-		-		-		-
	5,419	14,644	5,419	14,644
Earnings per share attributable to
Owners of the Company
- basic (sen)	1.32		3.57		1.32		3.57
- diluted (sen)	1.32		3.57		1.32		3.57

(The Unaudited Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the Audited Financial Statements for the year ended 31 July 2021)

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POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE FIRST QUARTER ENDED 31 OCTOBER 2021 UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Attributable to owners of the Company
	Share	Revaluation	Retained	Total
	capital	reserve	earnings	equity
	RM'000	RM'000	RM'000	RM'000
At 1 August 2020	205,176	41,635	323,414	570,225
Realisation of revaluation reserve	-	25	-	25
Profit for the financial year	-	-	14,644	14,644
At 31 October 2020	205,176	41,660	338,058	584,894
At 1 August 2021	205,176	41,747	355,251	602,174
Profit for the financial year	-	-	5,419	5,419
At 31 October 2021	205,176	41,747	360,670	607,593

(The Unaudited Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the Audited Financial Statements for the year ended 31 July 2021)

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POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE FIRST QUARTER ENDED 31 OCTOBER 2021

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
	CUMULATIVE QUARTER
	PERIOD		PERIOD
	ENDED		ENDED
	31.10.2021	31.10.2020
	RM'000		RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	7,631	19,265
Adjustments for:
Depreciation of property, plant and equipment and investment properties	2,058		1,746
Depreciation of right of use assets	5,221		5,656
Net gain on disposal of property, plant and equipment	(96)		-
Dividend income	-		(300)
Interest income	(63)		(77)
Interest expense	1,256		2,462
Operating profit before working capital changes	16,007	28,752
Inventories	16,701		(30,348)
Receivables	(3,766)		1,766
Payables	4,245		2,628
Contract liabilities	257		999
Net cash generated from operations	33,444	3,797
Tax paid	(3,405)		(1,044)
Net cash generated from operating activities	30,039	2,753
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received	63		77
Dividend received	-		300
Proceeds from disposal of property, plant and equipment	96		85
Purchase of property, plant and equipment	(605)		(45)
Net cash (used in) / generated from investing activities	(446)	417
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid	(1,256)		(1,783)
Placement of fixed deposit	(3)		(6)
Net loans repayment	(1,138)		(2,000)
(Decrease) / Increase in amount due to ultimate holding company	(25)		5
Increase in amount due to directors	314		289
Repayment of lease liabilities	(5,555)		(6,606)
Net cash used in financing activities	(7,663)		(10,101)
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS	21,930	(6,931)
OPENING CASH AND CASH EQUIVALENTS	18,364		33,148
CLOSING CASH AND CASH EQUIVALENTS	40,294	26,217
Cash and cash equivalents comprise the following:
Fixed deposits with licensed banks	14,462	18,240
Bank overdraft	(90)	(122)
Cash and bank balances	27,234		9,389
	41,606	27,507
Less: - Fixed deposits pledged to licensed banks	(1,312)		(1,290)
	40,294		26,217

(The Unaudited Condensed Consolidated Statement of Cash Flows should be read in conjunction with the Audited Financial Statements for the year ended 31 July 2021)

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POH KONG HOLDINGS BERHAD (Registration No : 200201018476)

QUARTERLY REPORT FOR THE FIRST QUARTER ENDED 31 OCTOBER 2021

1. NOTES TO THE INTERIM FINANCIAL REPORT

A1. Accounting Policies and Methods of Computation

The interim financial report has been prepared in accordance with Malaysian Financial Reporting Standard ("MFRS")

1. Interim Financial Reporting and Chapter 9, Paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad, and should be read in conjunction with the Audited Financial Statements for the year ended 31 July 2021.

The significant accounting policies and methods of computation adopted in the preparation of this interim financial report are consistent with those adopted in the audited financial statements of the Group and of the Company for the financial year ended 31 July 2021.

The Group and the Company have not adopted the following new MFRS and amendments/improvements to MFRS that have been issued, but yet to be effective:

		Effective for financial periods
		beginning on or after
New MFRS		1 January 2023
MFRS 17	Insurance Contracts
Amendments/Improvements to MFRSs
MFRS 1	First-time Adoption of Malaysian Financial Reporting	1 January 2022^/
	Standards	1 January 2023#
MFRS 3	Business Combinations	1 January 2022/
		1 January 2023#
MFRS 4	Insurance Contracts	1 January 2021/
		1 January 2023
MFRS 5	Non-current Assets Held for Sale and Discontinued	1 January 2023#
	Operations
MFRS 7	Financial Instruments: Disclosures	1 January 2021/
		1 January 2023#
MFRS 9	Financial Instruments	1 January 2021/
		1 January 2022^/
		1 January 2023#
MFRS 10	Consolidated Financial Statements	Deferred
MFRS 15	Revenue from Contracts with Customers	1 January 2023#
MFRS 16	Leases	1 January 2021/
		1 January 2022^
MFRS 17	Insurance Contracts	1 January 2023
MFRS 101	Presentation of Financial Statements	1 January 2023/
		1 January 2023#
MFRS 107	Statements of Cash Flows	1 January 2023#
MFRS 108	Accounting Policies, Changes in Accounting Estimates	1 January 2023
	and Errors
MFRS 116	Property, Plant and Equipment	1 January 2022/
		1 January 2023#
MFRS 119	Employee Benefits	1 January 2023#
MFRS 128	Investments in Associates and Joint Ventures	Deferred/
		1 January 2023#
MFRS 132	Financial instruments: Presentation	1 January 2023#
MFRS 136	Impairment of Assets	1 January 2023#
MFRS 137	Provisions, Contingent Liabilities and Contingent Assets	1 January 2022/
		1 January 2023#
MFRS 138	Intangible Assets	1 January 2023#
MFRS 139	Financial Instruments: Recognition and Measurement	1 January 2021
MFRS 140	Investment Property	1 January 2023#
MFRS 141	Agriculture	1 January 2022^

^The Annual Improvements to MFRS Standards 2018-2020

# Amendments as to the consequence of effective of MFRS 17 Insurance Contracts

The Group and the Company plan to adopt the above applicable new MFRS and Amendments/Improvements to MFRSs when they become effective.

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