SHEN YAO HOLDINGS LIMITED

(Company Registration No. 202042117W)

(Registered in Singapore)

MATERIAL DIFFERENCES BETWEEN THE CONSOLIDATED STATEMENTS AND THE

UNAUDITED FINANCIAL RESULTS ANNOUNCEMENT FOR THE FINANCIAL YEAR ENDED 30

JUNE 2021

The Board of Directors (the "Board") of Shen Yao Holdings Limited (the "Company" and together with its subsidiaries, the "Group") refers to the announcement released by the Company on 27 October 2021 in relation to its unaudited financial result for the financial year ended 30 June 2021 ("FY2021") (the "Unaudited Financial Statements").

Pursuant to Rule 704(5) of the Listing Manual Section B: Rules of Catalist of the SGX-ST, the Board would like to announce that subsequent to the release of the Unaudited Financial Statements, certain adjustments and reclassifications were made to arrive at the FY2021 financial statements within the annual report ("Consolidated Financial Statements") following the audit by the Company's Independent Auditors, Ernst & Young LLP. The Consolidated Financial Statements include a disclaimer of opinion by the Independent Auditors as separately announced by the Company on 15 November 2021.

The material variances between the Unaudited Financial Statements and the Consolidated Financial Statements are set out below:

Audited

Unaudited

Variance

Note

(S$'000)

(S$'000)

(S$'000)

Consolidated statement of profit

or loss and other comprehensive

income

Cost of sales

(78,644)

(79,282)

638

1

Currency translation differences

4,784

4,779

5

arising from consolidation

Consolidated statement of

financial position

Non-current assets

Property, plant and equipment

29,605

26,595

3,010

2

Exploration and evaluation

11,790

11,864

(74)

expenditure

Mining properties

15,852

15,634

218

Current assets

Other receivables

1,962

1,007

955

4

Other current assets

624

3,062

(2,438)

3

Inventories

4,991

5,053

(62)

Financial assets at fair value through

8,982

10,178

(1,196)

4

profit or loss

Current liabilities

Trade and other payables

21,233

21,309

(76)

Rehabilitation and preservation

8,861

9,015

(154)

provision

1

Audited

Unaudited

Variance

Note

(S$'000)

(S$'000)

(S$'000)

Consolidated statement of

financial position (cont'd)

Equity attributable to owners

of the Company

Share capital

305,378

3,271

302,107

5

Share premium

-

302,107

(302,107)

5

Reserves

(268,226)

(268,869)

643

1

Consolidated statement of cash

flows

Net cash flows from operating

25,868

23,165

2,703

6

activities

Net cash flows used in investing

(35,990)

(33,329)

(2,661)

6

activities

Net cash flows generated from/(used

8,112

8,154

(42)

in) financing activities

Explanatory notes for the material differences:

  1. Due to adjustment for overstatement of depreciation expense amounting to S$1.1 million, partially offset by expensing off of mining-relating expenses of S$0.5 million.
  2. Due to reclassification of mining-related consultancy fees from prepayment to construction-in- progress of S$2 million as the project has commenced, and adjustment of understatement of rehabilitation asset amounting to S$1.1 million.
  3. Due to reclassification of mining-related consultancy fees from prepayment to construction-in- progress of S$2 million as the project has commenced, and expensing off of mining-relating expenses of S$0.5 million.
  4. Due to reclassification of amount due from brokers of S$1.1 million from financial assets at fair value through profit or loss to other receivables.
  5. Due to effect of re-domiciliation to Singapore.
  6. Due to reclassification of mining-related consultancy fees from prepayment to construction-in- progress of S$2 million as the project has commenced, and adjustment of understatement of rehabilitation asset amounting to S$1.1 million, partially offset by the adjustment of investment trading income from operating activities to investing activities of S$1.1 million.

Shareholders of the Company are advised to exercise caution when dealing in the shares of the Company. Persons who are in doubt as to the action they should take should consult their stockbrokers, bank managers, solicitors, accountants or other professional advisers

BY ORDER OF THE BOARD

Yao Liang

Executive Director

15 November 2021

This announcement has been prepared by the Company and its contents have been reviewed by the Company's sponsor, W Capital Markets Pte. Ltd. (the "Sponsor").

2

This announcement has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "SGX-ST") and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr Chia Beng Kwan, Registered Professional, W Capital Markets Pte Ltd, 65 Chulia Street, #43-01 OCBC Centre, Singapore 049513, Telephone (65) 65133541.

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Shen Yao Holdings Ltd. published this content on 15 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2021 14:54:07 UTC.