THE PLACE HOLDINGS LIMITED 
By PART I - INFORMATION REQUIRED FOR QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR ANNOUNCEMENTS
1(a)(i) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year. Revenue Cost of sales Gross profitGross margin
Other income (including interest income)
Administrative expenses
Distribution costs Other expenses Finance costs
Loss before income taxIncome tax expense
Net loss for the periodAttributable to:
Equity holders of the parent
Non-controlling interest
Statement of comprehensive income
Net loss for the period
Other comprehensive income:Items that may be reclassified subsequently to profit or loss: Foreign currency translation
Other comprehensive loss for the period Total comprehensive loss for the periodTotal comprehensive loss attributable to: Equity holders of the parent
Non-controlling interest
NM: Not meaningful
Net loss for the period as a percentage of revenue -17.8% -16.7%
Loss before income tax is arrived at after charging (crediting) the following: Depreciation of property, plant and equipment | 2,353 | 2,967 |
Amortisation of land use rights | 22 | 22 |
Foreign exchange loss (gain) | (713) | (1,224) |
Fixed assets written off | - | 69 |
(Gain) Loss on disposal of property, plant and equipment | (464) | 673 |
Interest income | (43) | (28) |
Interest expense | 291 | 375 |
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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
Current assetsCash and cash equivalents Pledged bank deposits Trade receivables
Other receivables and prepayments Assets classified as held for sale Land use rights
Inventories
Total current assets
Non-current assets Investment in subsidiaries Investment in associate Land use rightsProperty, plant and equipment
Other receivables
Goodwill
Deferred tax asset
Total non-current assets
Total assets Current liabilities Trade payables Other payables ProvisionShort-term bank loans
Current portion of long-term bank loans
Current portion of finance leases
Due to shareholders
Total current liabilities
Non-current liabilitiesDue to shareholders and related party
Long-term bank loans
Finance leases
Total non-current liabilities
Capital, reserves and non-controlling interestsShare capital
Reserves
Equity attributable to equity holders of the company
Non-controlling interest
Total equity
Total liabilities and equity 1(b)(ii) Aggregate amount of the group's borrowings and debt securities Amount repayable in one year or less, or on demand The amount repayable after one year Details of any collateralsThe group's borrowings are primarily secured by personal guarantees from directors, pledged bank deposits, property, plant and equipment, land use rights and trade receivables.
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1 (c) Cash Flow Statement for period ended 31 MarchOperating Activities:
Loss before Income Tax: Adjustments for:-
Depreciation of property, plant and equipment
Amortisation of land use rights
Property, plant and equipment written off
Interest income
Interest expense
Net foreign exchange gain
(Gain) Loss on disposal of property, plant and equipment
Operating loss before working capital changes
Changes in working capital:- Trade receivables
Other receivables and prepayments
Inventories Trade payables Other payables
Cash generated from (used in) operations
Net interest paid
Income tax paid
Cash flows used in operating activitiesInvesting Activities:
Proceeds on disposal of property, plant and equipment
Purchase of property, plant and equipment
Cash flows generated from investing activitiesFinancing Activities:
Decrease (Increase) in pledged bank deposits
Repayment of bank loans New bank loans raised Repayment to shareholders New loans from shareholders
Repayment of finance lease obligations
Cash flows used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Effect of exchange rate changes on the balances ofcash held in foreign currencies
Cash and cash equivalents at end of period3 of 9
1(d)(i) A statement for the issuer and the group together with a comparative statement for the corresponding period of the immediately preceding financial year.Statement of Changes in Equity for the financial year ended 31 March
Share capital Currency translation reserves Statutory reserves Equity reserves Accumulated profits (losses) Total attributable to equity holders of the company Minority interests TotalGroup
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 At 1 January 2013 56,127 (8,737) 7,750 (2,993) (13,835) 38,312 7,144 45,456
Loss for the period - - - - (2,696) (2,696) (303) (2,999)
Other comprehensive income for the period - 172 - - - 172 234 406
Total - 172 - - (2,696) (2,524) (69) (2,593) At 31 March 2013 56,127 (8,565) 7,750 (2,993) (16,531) 35,788 7,075 42,863
Loss for the period - - - - (2,173) (2,173) (119) (2,292) Other comprehensive loss for the period - (653) - - - (653) (370) (1,023) Total - (653) - - (2,173) (2,826) (489) (3,315)
Company
At 1 January 2013 56,127 (1,283) - - (11,171) 43,673 - 43,673
Profit for the period - - - - 8 8 - 8
Other comprehensive income for the period - 801 - - - 801 - 801
Total - 801 - - 8 809 - 809
Loss for the period - - - - (1,089) (1,089) - (1,089) Other comprehensive loss for the period - (1,281) - - - (1,281) - (1,281) Total - (1,281) - - (1,089) (2,370) - (2,370)
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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.During 1 January 2014 to 31 March 2014, the Company did not issue any shares.
1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.The total number of issued shares excluding treasury shares
1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on.Not applicable.
2. Whether the figures have been audited or reviewed, and in accordance with which auditing standard or practice.The figures have not been audited or reviewed.
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 methods of computation for the current year consistent with those of the audited financial statements for the year ended 31 December 2013. In the current financial year, the Group has adopted all the new and revised Financial Reporting Standards ("FRSs") that are relevant to its operations and effective for annual periods beginning on 1 January 2014.
The adoption of these new and revised FRSs does not result in changes to the Group's accounting policies and has no material effect on the amounts reported for the current or prior years.
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 effect, of the change.Not applicable.
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.Earnings per ordinary share for the year based on net profit/(loss) for the period:
(i) Based on the weighted average number of ordinary shares in issue (cts); and
Weighted average number of shares
(ii) On a fully diluted basis (cts) Weighted average number of 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.Net asset value per ordinary share (cts) Number of shares
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8. Review of the Group's performance RevenueFor the three months ended 2014 ("1Q14"), the Group reported revenue of $12.9 million, a decrease of 28% from $17.9 million from the corresponding period in 2013 ("1Q13"). It is a decrease in revenue for all segments with laser drilling segment showing the largest percentage decrease of 74%. The Group had ceased its laser drilling operation in early 2014.
PCB Operations
PCB operations continue to be the major contributor accounting for 89% of our Group's revenue in 1Q14. Revenue from PCB operations decreased by 26% from $15.5 million in 1Q13 to $11.4 million 1Q14. This decrease is due to stricter customer selection in place where sales with low profit margins will be discontinued.
Mechanical Drilling and Routing
Revenue from Mechanical drilling and Routing segment deceased by 8% from $1.2 million in 1Q13 to $1.1 million in 1Q14. Mechanical drilling and routing segments are mainly made up of sub-contracted sales which are volatile to any fluctuations in market demands.
Laser Drilling
Revenue from Laser drilling segment decreased by 75% from $1.2 million in 1Q13 to $0.3 million in 1Q14. This is due to the cessation of laser drilling operation in early 2014.
Geographical Markets
China operations remained as the key contributor to Group's revenue in 1Q14. Proportion of revenue from China operations increased by 3% from
95% in 1Q13 to 98% in 1Q14.
Gross Profit
There is an improvement in gross profit where a gross profit of $1.0 million was generated in 1Q14 as compared to $0.4 million in 1Q13. Other than PCB operations which posted a gross profit of $2.1 million, Mechanical drilling and Laser drilling segment recorded a total gross loss of $1.1 million. The gross loss from Mechanical drilling and Laser drilling is mainly a result of revenue generated for month of January and February being lesser than the fixed manufacturing expenses such as labour cost, electricity and depreciation.
ExpensesOther Income
Disposal gain or loss from sale of plant and machinery and exchange difference are classified accordingly between other income or other expenses based on the net effect in that financial period.
The slight decrease in other income was mainly due to a lower net gain on disposal of plant and machinery in 1Q14 as compared to 1Q13.
Administrative Expenses
The slight increase in administrative expenses was mainly due to increase in labour costs, research and development costs.
Distribution Costs
Distribution costs improved by 17% from $0.5 million in 1Q13 to $0.4 million in 1Q14. This decrease was mainly due to decrease in sales commission payable to sales representatives in processing sales for PCB manufacturing which is line with the with the decrease in PCB revenue.
Other Expenses
Disposal gain or loss from sale of plant and machinery and exchange difference are classified accordingly between other income or other expenses based on the net effect in that financial period.
The decrease in other expenses by $0.3 million was mainly due to a net loss on disposal of fixed assets of $0.7 million incurred in 1Q13 as compared to a net exchange loss of $0.4 million incurred in 1Q14.
Finance Costs
There is a slight decrease in finance cost from $0.4 million in 1Q13 to $0.3 million in 1Q14. This decrease is mainly due to lesser bank borrowings.
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Balance Sheet
The Group's cash and bank balances decreased from $19.0 million at 4Q13 to $18.5 million at 1Q14. Pledged bank deposits decreased from $0.6 million in 4Q13 to $0.1 million in 1Q14.
The decrease in trade receivables of $4.5 million is mainly due to drop in quarterly sales of 1Q14 against 4Q13. Trade receivable's credit period ranges from 45 days to 150 days. Trade receivables turnover days increased slightly from 119 days to 126 days from 4Q13 to 1Q14.
Other receivables and prepayments decreased slightly by $0.1 million from $3.5 million at 4Q13 to $3.4 million at 1Q14. It is the norm for our China subsidiaries for expenses to be prepaid at the beginning of each financial year, prior to expensing it on a monthly basis. Other receivables and prepayments mainly comprise of prepaid operating expenses, such as utilities, insurance, maintenance expense, etc.
Plant and equipment classified as held for sale comprises of laser drilling machineries which are expected to be sold within the next twelve months upon cessation of laser drilling services.
The slight decrease in inventory level from $4.6 million at 4Q13 to $4.4 million at 1Q14 was mainly due to lesser sales orders expected in 2nd quarter of 2014.
The decrease in property, plant and equipment arises mainly from depreciation of $2.4 million.
The decrease of $2.8 million in trade payables was mainly due to the decline in inventory purchase in previous quarter. Credit terms provided by suppliers are generally 3 months.
The decrease of $1.1 million in other payables was mainly due to payout of accrued audit fees, bonuses as well as decrease in net VAT payables.
Total gross borrowings was reduced by $2.4 million from $31.1 million at 4Q13 to $28.7 million at 1Q14. This was due to repayments of bank loans and finance leases.
The Group's net working capital position decreased from a $6.2 million net asset position for 4Q13 to a $5.8 million net asset position for 1Q14.
As at 1Q14, the Group's current ratio (current assets/current liabilities) and debt/equity ratio are 1.14 and 2.0 respectively. The Group's equity (net assets) stands at $35.6 million.
A net cash outflow from operating activities was noted for 1Q14. This cash outflow was mainly due to increase in payment to trade payables and other payables.
Cash flow generated from investing activities was mainly due to receipts from sales of 6 laser drilling machineries by LGANG Optronics Technology
Co., Ltd.
Cash flow used in financing activities of $1.5 million in 1Q14 was mainly due to repayment of loan borrowings and amount due to shareholders.
Cash and bank balances improved by $5.1 million from $13.4 million in 1Q13 to $18.5 million in 1Q14.
No forecast or prospect statement was disclosed to shareholders previously.
10. A commentary at the date of 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.
Pursuant to our 1Q13 announcement on the series of internal restructuring carried out to prepare for PCB manufacturing via embedded PCB
technology, we had begun productions to fulfil small orders received for PCB products manufactured via embedded PCB technology.
However, management will continue to remain cautious and conservative in its outlook, bearing in mind the renewed uncertainties in the global financial markets and signs of instabilities in many parts of the world.
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11. 11(a) Dividend Any dividend declared for the current financial period reported on?None
11(b) Any dividend declared for the corresponding period of the immediately preceding financial year?None
11(c) Date payableNot applicable
11(d) Books closure dateNot applicable
12. If no dividend has been declared/ recommended, a statement to that effect.No dividend has been declared for the first quarter ended 31 March 2014.
PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results)
13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year.Not applicable
14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by business or geographical segments.Not applicable
15. A breakdown of sales as follows:Not applicable
16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year as follows:-Not applicable
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17.
Interested party transactions
The Group does not have a general mandate from shareholders for interested person transactions pursuant to Rule 920 of the Listing Manual of the Singapore Exchange Securities Trading Limited ("SGX-ST"). During the financial year, there were related parties transactions based on terms agreed between the parties as follows:-
Name of interested person | Aggregate value of all interested person transactions during the financial period under review (excluding transactions less than $100,000 and transactions conducted under Shareholders' mandate pursuant to Rule 920) | Aggregate value of all interested person transactions conducted under Shareholders' mandate pursuant to Rule 920 (excluding transactions less than $100,000) |
Loan guarantees provided by Mr Wen Yao-Long, Mr Wen Yao-Chou, Ms Chan Hui-Chung to various financial institutions to secure credit facilities for the Group | Total facilities granted as at 31.3.2014: $18.8 million Amount outstanding as at 31.3.2014: $11.9 million | - |
Loan from Sunny Worldwide Int'l Ltd (Amount outstanding as at 31.3.2014 is $7.9 million) | Interest for the 3 months ended 31.3.2014: $0.07 million | - |
Loan from Mr Wen Yao-Long (Amount outstanding as at 31.3.2014 is $5.4 million) | Interest -free loan | - |
Loan from Mr Wen Yao-Chou (Amount outstanding as at 31.03.2014 is $0.6 million) | Interest -free loan | - |
Except for the above, there was no other interested person transaction, as defined in Chapter 9 of the Listing Manual of the SGX-ST, entered into the Group or by the Company during the financial period ended 31 March 2013.
BY ORDER OF THE BOARD
Wen Yao-Long
Executive Chairman & CEO
24 April 2014
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