TRANSCORP HOLDINGS LIMITED 
By TRANSVIEW HOLDINGS LIMITED REG NO:199502905Z
HALF YEAR FINANCIAL STATEMENT AND RELATED ANNOUNCEMENT FOR THE PERIOD ENDED 30 APRIL 2011
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF HALF YEAR RESULTS
1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.Consolidated Statement of Comprehensive IncomeRevenue
Note Period ended
30/04/2011 $’000Group
Period ended
30/04/2010 $’000 % Increase / (decrease) Sales of goods 15,079 14,336 5 Golf management revenue 689 804 (14) Other revenue 383 1,216 (69) Total revenue 16,151 16,356 (1)Other items of expenses
Costs of goods sold (9,073) (8,790) 3
Salaries and employee benefits (2,897) (2,192) 32 Rental expenses (1,444) (1,323) 9 Repair & maintenance (170) (100) 70 Depreciation of property, plant and equipment (569) (484) 18 Foreign currency gain 119 105 13 Other operating expenses 2 (1,373) (1,227) 12 15,407 14,011 10Profit from operations before
taxation 744 2,345 (68) Taxation (201) (326) (38)
Profit after taxation for the period 543 2,019 (73)
Other comprehensive (loss) /
income:
Foreign currency translation (65) 177 nm
Fair value gain / (loss) on available- for-sale investments (688) 5,210 nmOther comprehensive (loss) /
income for the period, net of tax (753) 5,387 nm
Total comprehensive (loss) /
income for the period (210) 7,406 nm
nm denotes not meaningful1
Consolidated Statement of Comprehensive Income (con’t)Group
Profit attributable to:
Period ended
30/04/2011 $’000 Period ended 30/04/2010 $’000 Owners of the Parent 543 2,019Total comprehensive (loss) /
income attributable to:
Owner of the Parent (210) 7,406
Earnings per share (in cents)
- Basic 0.30 1.13
- Diluted 0.30 1.13Note 1
Other income includes the following:-
Group
Period ended
30/04/2011 $’000 Period ended 30/04/2010 $’000 Interest income 84 26 Golf related service income 162 115 Dividend income from available-for-sale investments - 907 Gain on disposal of available-for-sale investments - 152Note 2
Other operating expenses include the following:-
Advertising and promotion 227 193 Professional fees 144 120 Bank commission and charges 97 114 Utilities 114 88 Travelling and transport 155 138 Sales commission 3 9 Insurance 47 43 Golf coaching commission* 189 204 Telecommunication 60 45* This relates to commission paid to professional golf trainer.
2
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 SheetGroup Company
Non-current assets
Note 30/04/11
$’000 31/10/10 $’000 30/04/11 $’000 31/10/10 $’000 Property, plant and equipment 7,005 6,944 - - Investment in subsidiaries - - 11,542 11,542 Available-for-sale investments 3,941 4,629 - -Current assets
Inventories 12,485 11,842 - - Trade and other receivables 3 4,085 4,018 9,111 10,511
Prepayments 4 632 182 17 12 Cash and cash equivalents 5 7,946 10,462 384 430 25,148 26,504 9,512 10,953Current liabilities
Trade and other payables 6 1,001 1,140 964 964
Accrued operating expenses 533 1,062 54 105 Current income tax payable 268 297 - - 1,802 2,499 1,018 1,069Net current assets 23,346 24,005 8,494 9,884
Non-current liability
Deferred taxation 152 152 - -
Net assets 34,140 35,426 20,036 21,426
Equity
Share capital 18,541 18,541 18,541 18,541
Revenue reserve 15,640 16,173 1,495 2,885 Fair value reserve 1,527 2,215 - - Translation reserve (1,568) (1,503) - - 34,140 35,426 20,036 21,4263
Group Company
Note 3 Trade and other receivables | 30/04/11 $’000 | 31/10/10 $’000 | 30/04/11 $’000 | 31/10/10 $’000 |
Trade receivables | 2,744 | 2,572 | - | - |
Amounts due from related parties Amounts due from subsidiary companies Staff loans | 826 - 3 | 927 - 9 | - 9,111 - | - 10,511 - |
Refundable deposits | 496 | 485 | - | - |
Sundry receivables | 16 | 25 | - | - |
4,085 | 4,018 | 9,111 | 10,511 |
Note 4 Prepayments
Prepaid operating expenses | 294 | 92 | 17 | 12 |
Advance payments to suppliers | 338 | 90 | - | - |
632 | 182 | 17 | 12 |
Note 5 Cash and cash equivalents
Cash and bank balances 3,096 4,641 10 57
Short term deposits 4,850 5,821 374 373 7,946 10,462 384 430Note 6 Trade and other payables
Trade payables 609 945 - - Other payables 253 81 - - Amounts due to related parties 139 114 - - Amounts due to subsidiary companies - - 964 964
1,001 1,140 964 964(b)(ii) Aggregate amount of group’s borrowings and debt securities.Amount repayable in one year or less, or on demandAs at 30/04/2011 As at 31/10/2010
Secured Unsecured Secured Unsecured
- - - -
Amount repayable after one yearAs at 30/04/2011 As at 31/10/2010
Secured Unsecured Secured Unsecured
- - - -
Details of any collateralNA
4
1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year.Consolidated Statement Of Cash Flow
Cash flows from operating activities
Period ended
30/04/2011 $’000 Period ended 30/04/2010 $’000 Profit before taxation 744 2,345 Adjustments for:- Depreciation of property, plant and equipment 569 484 Interest income (84) (26) Dividend income from available-for-sale investments - (907) Gain on disposal of available-for-sale investments - (152) Plant and equipment written off 48 Bad debts written off 4 - Currency realignment (86) 164Operating income before reinvestment in working
capital 1,195 1,908
Changes in working capital
(Increase)/decrease in trade and other receivables (67) 466
Decrease in tax recoverable - 193 Increase in prepayments (450) (849) (Increase)/decrease in inventories (643) 66 (Decrease)/Increase in trade and other payables (139) 271 Decrease in accrued operating expenses (529) (241)Cash (used in)/generated from operations (633) 1,814
Interest received 84 26
Income tax paid (230) (324)Net cash (used in)/generated from operating activities (779) 1,516
Cash flows from investing activities
Purchase of property, plant and equipment (623) (407) Dividend income from available-for-sale investments - 907
Proceeds from disposal of available-for-sale investments - 152 Purchase of available-for-sale investments - (992)Net cash used in investing activities (623) (340)
Cash flows from financing activity
Dividend paid (1,076) (538)
Net cash used in financing activity (1,076) (538)
Net (decrease) / increase in cash and cash equivalents (2,478) 638
Effect of exchange rate changes on balances held in foreign currencies (38) (22) Cash and cash equivalents at beginning of financial period 10,462 8,683 Cash and cash equivalents at end of financial period 7,946 9,2995
1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii)changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.Statement of Changes in Equity
Group | Total attributable | ||||
Share | Revenue | Fair value | Translation | to owner of | |
capital | reserve | reserve | reserve | the parent | |
$’000 | $’000 | $’000 | $’000 | $’000 | |
Balance at 1 Nov 2010 | 18,541 | 16,173 | 2,215 | (1,503) | 35,426 |
Total comprehensive | |||||
income for the period | - | 543 | (688) | (65) | (210) |
Dividend paid in respect | |||||
of financial ended 31 | |||||
Oct | - | (1,076) | - | - | (1,076) |
2010
Balance at 30 Apr 2011 18,541 15,640 1,527 (1,568) 34,140 Share capital Revenue reserve Fair value reserve Translation reserve Total attributable to owner of the parent $’000 $’000 $’000 $’000 $’000 Balance at 1 Nov 2009 18,541 11,888 (219) (1,392) 28,818 Total comprehensive income for the period - 2,019 5,210 177 7,406 Dividend paid in respect of financial ended 31 Oct 2009 - (538) - - (538) Balance at 30 Apr 2010 18,541 13,369 4,991 (1,215) 35,686Company
Share capital
Revenue reserve Total equity $’000 $’000 $’000 Balance at 1 Nov 2010 18,541 2,885 21,426 Total comprehensive income for the period - (314) (314) Dividend paid in respect of financial ended 31 Oct 2010 - (1,076) (1,076) Balance at 30 Apr 2011 18,541 1,495 20,036 Share capital Revenue reserve Total equity $’000 $’000 $’000 Balance at 1 Nov 2009 18,541 890 19,431 Total comprehensive income for the period - (270) (270) Dividend paid in respect of financial ended 31 Oct 2009 - (538) (538) Balance at 30 Apr 2010 18,541 82 18,6236
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.As at 30 April 2011, the Company did not have any outstanding options on unissued shares
(30 April 2010: Nil).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.30/04/2011 31/10/2010
Total number of issued shares excluding treasury shares 179,280,000 179,280,000 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.NA
2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.These figures have not been audited nor reviewed by the auditors.
3. Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis of a matter).NA
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 financial statements are prepared using consistent accounting policies and methods of computation as in the most recently audited annual financial statements.
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 the effect of, the change.NA
6. Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends.Earnings per share
a. Based on the weighted average
Period ended 30/04/2011Group
Period ended
30/04/20107
number of ordinary shares on issue 0.3 cents 1.13 cents b. On a fully diluted basis 0.3 cents 1.13 cents
Notes:
The above earnings per share is calculated based on the Group’s profit after tax with weighted average number of ordinary shares on issue of 179,280,000 (2010: 179,280,000) during the respective financial periods.
7. Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the:-(a) current financial period reported on; and(b) immediately preceding financial year.Net assets value per ordinary share
As at
30/04/2011 As at 31/10/2010 a. Group 19.0 cents 19.8 cents b. Company 11.2 cents 12.0 cents8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group’s business. It must include a discussion of the following:-(a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on.Overview
The Group’s profit after tax for the six months ended 30 April 2011 (1H11) was lower despite
an increase in the sale revenue as the net profit for the previous corresponding period had been lifted by the dividend income received from its available-for-sale investments.Revenue
The Group’s retail and wholesale business segments had performed better as compared to the same period last year.
Retail revenue increased by 2% or $0.3 million to $12.1 million driven mainly by the higher sales in Singapore. Sales in Singapore increased by 11% or $0.6 million due mainly to the contributions from the addtional retail outlets that commenced operation in the second half of FY2010. This has helped to cushion the lower sales in Malaysia and Hong Kong which decreased by 2% or $0.1 million and 47% or $0.2 million respectively. Sales in these markets had been negatively affected by challenging market conditions. Wholesale revenue increased by 20% or $0.5 million to $3.0 million during the period under review. The Group commenced wholesale of Skins product in Singapore in the second half of FY2010 and this had contributed positively to wholesale revenue. Regionally, wholesales to Thailand, Indonesia and “Other Markets’ which include Vietnam, Phillipines, Taiwan and Myanmar were higher as compared to previous corresponding period due to additional8
wholesale customers, inventory replenishment by existing customers as well as wholesale of new product such as Skins.
Revenue from the golf management business decreased by 14% or $0.1 million in 1H11 as both golf professional coaching and driving range revenues were lower as compared to the previous corresponding period. Other revenue decreased by $0.8 million to $0.4 millon in 1H11 largely attributed to the absence of dividend income received from available-for-sale investments as compared to the previous corresponding period. Key items of other revenue are disclosed in Note 1 above.Profitability
The costs of goods sold increased by $0.3 million or 3% on the back of higher sales revenue. Gross profit margin was slightly higher during the period under review.
In terms of operating expenses, staff costs increased by $0.7 million or 32% due mainly to the higher staff costs incurred by the Singapore and Malaysian operations as a result of an increase in headcount, salary increment and incentive payment. Rental costs increased by $0.1 million or 9% due mainly to the addition of new retail stores in Singapore in the second half of FY2010. The foreign currency gain was attributed mainly to the revaluation gain of monetary items, while the higher depreciation charge was due mainly to additions of new plant, machinery and equipment. Other operating expenses increased by $0.1 million or 12% with key items disclosed in Note 2 above. The tax expense was lower in line with the lower operating profit. As a result of the above, the Group’s profit after tax decreased from $2.0 miilion to $0.5 million in 1H11.Financial Position(30 April 2011 versus 31 October 2010)The Group’s current ratio improved from 10.6 times to 14.0 times. Working capital balance was at $23.3 million, dipped slightly from $24 million in FY2010. Inventory level increased by
$0.6 million to $12.5 million as the Group continues to expand its products portfilio. The Group maintained a cash position of $7.9 million as at 30 April 2011.9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.This set of results is consistent with the statement made by the Board in the Group’s full year results announcement released on 30 December 2010.
10. A commentary at the date of the announcement of the significant trends and 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 next12 months.The Board expects the operating environment in the next twelve months to remain challenging because of inflationary concerns and the global economic uncertainty. The Group will continue to expand its products portfolio and distribution channel. The Group had opened a flagship store in Malaysia located at KLCC, Kuala Lumpur, and it is expected to contribute to our Malaysian operations in terms of the Group’s overall branding and the customer base.
Barring any unforeseen circumstances, the Board expects the Group to remain profitable.9
11. Dividend(a) Current Financial Period Reported OnAny dividend declared for the current financial period reported on?
Name of Dividend : Nil Dividend Type - Dividend Amount per Share (in cents) - Tax Rate -
(b) Corresponding Period of the Immediately Preceding Financial YearAny dividend declared for the corresponding period of the immediately preceding financial year?
Name of Dividend: Nil Dividend Type - Dividend Amount per Share (in cents) - Tax Rate -
(c) Date payableNA.
(d) Books closure dateNA
12. If no dividend has been declared/recommended, a statement to that effect.No dividend has been declared/recommended for the half-year ended 30 April 2011.
13 Interested Person TransactionsName 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 during the financial period under review under shareholders’ mandate pursuant to Rule 920 (excluding transactions less than $100,000) |
Sales of golf equipment to Transview Golf Thailand | S$246,383/- | None |
10
14. Confirmation by the Board pursuant To Rule 705(4)
The Board of Directors of Transview Holdings Limited do hereby confirm that, to the best of their knowledge, nothing has come to their attention which may render the financial statements for the half-year ended 30 April 2011 to be false or misleading in any material aspect.
BY ORDER OF THE BOARDTan Cheng Chuan
Managing Director 14 June 201111
