TLV : Annual Reports and Related Documents

Rock Solid

Resilience

Annual Report 2021

CONTENTS

01 Corporate Profile

02 Letter to Shareholders

05 Financial Highlights

06 Financial Review

08 Board of Directors

1. Executive Officers
2. Corporate Information

This annual report has been reviewed by the Company's Sponsor. It has not been examined or approved by the Singapore Exchange Securities Trading Limited (the "Exchange") and the Exchange assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinion made or reports contained in this document.

The contact person for the Sponsor is Mr. Joseph Au, 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318, sponsorship@ppcf.com.sg.

TLV Holdings Limited

Annual Report 2021

CORPORATE

PROFILE

With a well-established track record of over 20 years, TLV Holdings Limited (the "TLV Holdings" or the "Company" and together with its subsidiaries, the "Group") is an established jeweller that designs, manufactures and sells jewellery in both the local and international markets on a retail and wholesale basis.

In Singapore, the Group has a retail network of 19 outlets strategically located at various heartland districts, central and suburban malls. Our brands include Taka Jewellery, an established household brand that sells quality jewellery at competitive prices, and Top Cash, which is in the pawnbroking business and trading and retailing of used gold and pre-owned jewellery.

The Group sells to the international market through active participation in jewellery exhibitions since 2003. Our jewelleries are sold to wholesale customers in the America, Europe, Asia, Africa and Australia.

OUR

BUSINESS

JEWELLERY

The Group is principally engaged in the sale of jewellery on a retail basis in Singapore under the Taka Jewellery brand as well as on a wholesale basis to global markets through active participation in international jewellery exhibitions.

Retail

Taka Jewellery is an established household brand that provides quality jewellery at competitive prices. With an extensive selection of classic and contemporary quality jewellery made from different raw materials, the brand caters to the mass market from homemakers to young working executives.

Taka Jewellery has 15 retail outlets located at various heartland districts and suburban malls throughout Singapore.

Exhibitions

The Group actively participates in jewellery exhibitions around the world, selling jewellery on a wholesale basis to customers from the America, Europe, Asia, Africa and Australia. We participate in exhibitions under our brands Taka Jewellery as well as Voi, which was launched in 2007 to engage in the marketing and sale of a contemporary line of jewellery.

PAWNBROKING

The Group ventured into the pawnbroking business and the trading and retail of pre-owned jewellery under the Top Cash brand in 2013. Our pawnshops typically accept gold and platinum, as well as value articles (such as precious stones and branded jewellery) as collaterals for the loans we extend to our customers.

The Group has four pawnshops in Singapore, each located in Yishun, Geylang and two in Serangoon.

letters to

shareholders

Dear Shareholders

THE YEAR IN REVIEW

For the 12-month ended 30 June 2021 ("FY2021"), the Group made a notable turnaround in its earnings to S$2.4 million from a net loss of S$0.4 million for the 15-month financial period from 1 April 2019 to 30 June 2020 ("FP2020"). This was largely attributable to tighter cost control measures and lower finance costs due to a decline in the utilisation of bank credit facilities and reduction in lending rates.

Year-on-year("y-o-y"), the Group's revenue slid 15% to S$96.8 million in FY2021 compared to S$114.1 million in FP2020, largely on lower contribution from the wholesale and exhibition business segment which declined 48% y-o-y to S$25.6 million.

As at 30 June 2021, the Group maintained a healthy balance sheet with net assets of S$104.6 million compared to S$102.3 million and a y-o-y increase in cash and bank balances to S$15.2 million compared to S$13.7 million a year ago. Net asset value per share remained stable at 18.71 Singapore cents.

Wholesale and Exhibition Business

The onset of the coronavirus outbreak in early 2020 brought on global travel restrictions and cancellations of some of the major and large-scale international jewellery exhibitions which continued towards the end of the year. As one of the dominant players in these exhibitions and fairs, where we sell our jewellery on a wholesale basis to the international markets, the cancellation of these events has impacted the Group's wholesale and exhibition business segment, which dipped 48% y-o-y to S$25.6 million.

Nevertheless, to stay connected with our wholesale customers from the America, Europe, Asia, Africa and Australia, our team has actively engaged them via various sales channels such as regular virtual meetings to showcase our jewellery and promotions, as well as promoting our jewellery through digital platforms such as virtual exhibitions of jewellery and dedicated website for wholesale business.

Retail Business

Domestically, our retail business segment managed a strong showing during the year with a 10% increase in sales to S$68.2 million compared to S$62.0 million in FP2020. Retail revenue grew following the easing of Singapore's 'Circuit Breaker' in phases from June 2020, which led to a gradual recovery in footfall to the malls where most of our Taka Jewellery retail outlets are located. The growth was however impacted by the phase 2 heightened alert measures implemented from 16 May to 13 June 2021, where dining-in restrictions at food and beverage establishments resulted in lower mall footfall.

As the current operating environment remains volatile, the Group had strategically halted all capital expenditure, expansion of retail outlets and non-essential expenditure to effectively manage costs.

We have also been actively pushing out promotional activities including the new Treasures Reward Programme designed to provide members and loyal customers a holistic lifestyle experience from shopping to rewarding, invitation to exclusive sales events and special rewards for birthday month.

To complement our outlet sales, we also continue to maintain our digital initiatives with exclusive live webcast to showcase our products, promoting our jewellery through social media platforms as well as selling them through online shopping channels.

Financial Services

Our financial service business segment revenue had remained steady during the year at S$3.0 million compared to S$3.1 million of the 15-month period a year ago. This was largely due to higher interest income earned from both our pawnbroking business and moneylending business.

letters to

shareholders

PROPOSED BUSINESS DIVERSIFICATION

Over the years, the Group has remained strategic and prudent with our expansion plans. We are focused on growing our existing core business as well as constantly exploring suitable opportunities that complement and add value to our existing business.

Leveraging on our knowledge in extending loans to individuals through our pawnbroking business, which involves accepting gold, platinum and valuable articles such as precious stones and branded jewellery as collaterals for loans and earning interests from these loans, the Group made a strategic decision to diversify the Group's existing core business activities to include money lending business as a separate core business activity. The money lending business relates to the provision of secured term loan facilities to corporations.

In conjunction with the proposed new business diversification, the Group is also seeking approval from Shareholders to change its listing company's name, TLV Holdings Limited, to Taka Jewellery Holdings Limited, to better align with its "Taka Jewellery" brand, which has a strong brand equity established over the last two decades. The name change will better represent the Group's corporate identity and business strategy, increase shareholders' awareness as well as allow the public and business partners to better identify with the Group.

OUTLOOK

During the year, the protracted pandemic and gold price volatility have caused continuous disruptions to the Group's operating environment and business activities. However, as the world gradually adapts and adjusts to a new way of life, and together with the roll-out of vaccination programmes worldwide and easing of travel restrictions, we are cautiously optimistic of the gradual recovery of the business environment and consumer demand.

To maintain our competitive edge and sustain long term growth, we will continue to focus on strengthening our core competencies, as well as constantly innovate and transform to keep up with current trends and entrench our market position as the key player in the jewellery industry in both the international and domestic arena. The diversification into the moneylending business will also provide new income stream for the Group and bolster its long term growth to enhance shareholders' value.

Going forward, the Group will also continue to be strategic with its business plans and stay vigilant in monitoring liquidity, cost management and credit exposure to maintain its financial position and boost performance.

APPRECIATION

In closing, we would like to extend our sincere gratitude to our fellow directors for their counsel and guidance. To the management team and staff, thank you for staying united and working together to sustain and grow the business during such unprecedented times. To our business partners, customers and valued shareholders, thank you for your unwavering faith in the Group and continued support. We will endeavour to continue to grow the Group and maximise returns for all our stakeholders.

Goh Yeow Tin

Non-Executive Chairman and Independent Director

Teo Boon Leng

Managing Director