BENG KUANG MARINE LIMITED
Registration No. 199400196M
S$000 S$000
Revenue 17,603 20,365 (14%)
Cost of sales (12,833) (14,782) (13%)
Gross profit 4,770 5,583 (15%)
Other gains / (losses), net 190 (24) NM
Expenses
- Selling and distribution (490) (519) (6%)
- Administrative (3,844) (3,977) (3%)
- Finance (513) (567) (10%)
Profit before income tax 113 496 (77%)
Income tax expense (102) (249) (59%)
Net profit 11 247 (96%)
Profit / (loss) attributable to:
Equity holders of the Company 124 277 (55%)
Non-controlling interests (113) (30) 277%
11 247 (96%)
NM - Not meaningful
First Quarter Financial Statement For The Period Ended 31 March 2014
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3),
HALF-YEAR AND FULL YEAR RESULTS
1st Qtr of
2013
Increase /
(Decrease)
1(a)
GROUP
1st Qtr of
2014
An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group,
together with a comparative statement for the corresponding period of the immediately preceding financial year.
Page 1 of 10
S$000 S$000
Net profit after tax 11 247 (96%)
115 33 248%
Other comprehensive income, net of tax 115 33 248%
Total comprehensive income 126 280 (55%)
Equity holders of the Company 212 304 (30%)
Non-controlling interests (86) (24) 258%
126 280 (55%)
S$000 S$000
Notes
Interest Income 3 3
Interest expense on borrowings (513) (567)
Foreign exchange loss (100) (127)
40 13
Property, plant and equipment written off (2) (10)
(2,276) (2,202)
14 -
- (47)
GROUP
1(a)
GROUP
1st Qtr of
2013
Currency translation differences arising from consolidation
Depreciation of property, plant and equipment
Increase /
(Decrease)
1st Qtr of
2013
1st Qtr of
2014
Total comprehensive income / (loss) attributable to:
1st Qtr of
2014
Write-back of allowance for impairment of trade receivables
Allowance for impairment of trade receivables
The Groups profit from operations is arrived at after (charging) / crediting
Gain on disposal of property, plant and equipment
An income statement and statement of comprehensive income, or a statement of comprehensive income, for the group,
together with a comparative statement for the corresponding period of the immediately preceding financial year. (Cont'd)
Page 2 of 10
1(b)(i)
31-Mar-14 31-Dec-13 31-Mar-14 31-Dec-13
S$000 S$000 S$000 S$000
ASSETS
Current assets
Cash and bank balances 6,847 8,403 182 226
Trade and other receivables 46,029 49,345 72,098 70,654
Inventories 14,308 14,579 - -
67,184 72,327 72,280 70,880
Non-current assets
Investment in subsidiaries - - 4,257 4,257
Deferred income tax assets 191 191 - -
Intangible assets 64 64 - -
Property, plant and equipment 109,009 109,802 902 959
109,264 110,057 5,159 5,216
Total assets 176,448 182,384 77,439 76,096
LIABILITIES
Current liabilities
Trade and other payables 27,574 30,695 7,788 6,114
Current income tax liabilities 975 976 - -
Borrowings and overdrafts 46,399 47,791 17,065 17,552
74,948 79,462 24,853 23,666
Non-current liabilities
Other payables 1,094 1,148 - -
Borrowings 15,891 17,385 41 49
Deferred tax liabilities 609 609 6 6
17,594 19,142 47 55
Total Liabilities 92,542 98,604 24,900 23,721
NET ASSETS 83,906 83,780 52,539 52,375
EQUITY
Capital and reserves attributable to
equity holders of the Company
Share capital 49,651 49,651 49,651 49,651
Currency translation reserve (319) (407) - -
Retained profits 32,060 31,936 2,888 2,724
81,392 81,180 52,539 52,375
Non-controlling interests 2,514 2,600 - -
Total equity 83,906 83,780 52,539 52,375
COMPANY
A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the
immediately preceding financial year.
GROUP
Page 3 of 10
1(b)(ii)
Amount repayable in one year or less, or on demand
Secured Unsecured Secured Unsecured
Bank borrowings and overdrafts 4,374 35,622 4,633 36,515
Term loans 4,334 389 4,210 556
Finance lease liabilities 1,680 - 1,877 -
Amount repayable after one year
Secured Unsecured Secured Unsecured
Term loans 14,324 264 15,460 347
Finance lease liabilities 1,303 - 1,578 -
Details of any collateral - 0
Included in the Group's secured borrowings are:-
(a) S$23,031,000 as at 31 March 2014 (31 December 2013: S$24,303,000) in respect of loans secured by vessels, tugs and barges.
(b) Finance lease obligations are secured by the underlying equipment.
As at 31-Dec-13 As at 31-Mar-14
S$'000 S$'000
S$'000
As at 31-Dec-13
Aggregate amount of groups borrowings and debt securities.
S$'000
As at 31-Mar-14
Page 4 of 10
1(c)
S$000 S$000
Cash flows from operating activities
Net profit 11 247
Adjustments for:
Income tax expense 102 249
Allowance for impairment for trade receivables - 47
Write-back of allowance for impairment of trade receivables (14) -
Gain on disposal of property, plant and equipment (40) (13)
Property, plant and equipment written off 2 10
Depreciation of property, plant and equipment 2,276 2,202
Interest income (3) (3)
Interest expenses 513 567
2,847 3,306
Changes in working capital
Inventories and construction work-in-progress (1,131) 2,921
Trade and other receivables 6,029 (7,151)
Trade and other payables (3,955) (593)
Bills payable (446) (687)
Cash flows generated from / (used in) operations 3,344 (2,204)
Interest received 3 3
Interest paid (482) (561)
Income taxes paid (103) (284)
Net cash flows generated from / (used in) operating activities 2,762 (3,046)
Cash flows from investing activities
Proceeds from assets held-for-sale - 989
Proceeds from disposal of property, plant and equipment 93 13
Addition to property, plant and equipment (1,966) (2,237)
Net cash flows used in investing activities (1,873) (1,235)
Cash flows from financing activities
Repayment of finance lease liabilities (551) (564)
Repayment of borrowings, net (1,571) (1,177)
Net cash flows used in financing activities (2,122) (1,741)
Net decrease in cash and cash equivalents (1,233) (6,022)
Cash and cash equivalents
Beginning of the period 5,582 15,077
Effects of currency translation on cash and cash equivalents 105 (14)
End of financial period 4,454 9,041
1st Qtr of
2013
1st Qtr of
2014
GROUP
A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the
immediately preceding financial year.
Page 5 of 10
1 (d)(i)
Share
capital
Retained
profits
Translation
reserves
Total
Non-
controlling
interests
Total
equity
S$000 S$000 S$000 S$000 S$000 S$000
GROUP
Balance as at 1 January 2013 49,651 26,354 (155) 26,199 2,224 78,074
Total comprehensive income / (loss) for the
quarter
- 277 27 304 (24) 280
Balance as at 31 March 2013 49,651 26,631 (128) 26,503 2,200 78,354
Balance as at 1 January 2014 49,651 31,936 (407) 31,529 2,600 83,780
Total comprehensive income / (loss) for the
quarter
- 124 88 212 (86) 126
Balance as at 31 March 2014 49,651 32,060 (319) 31,741 2,514 83,906
Share
capital
Retained
profits
Translation
reserves
Total
Non-
controlling
interests
Total
equity
S$000 S$000 S$000 S$000 S$000 S$000
COMPANY
Balance as at 1 January 2013 49,651 3,476 - 3,476 - 53,127
Total comprehensive income for the quarter - 67 - 67 - 67
Balance as at 31 March 2013 49,651 3,543 - 3,543 - 53,194
Balance as at 1 January 2014 49,651 2,724 - 2,724 - 52,375
Total comprehensive income for the quarter - 164 - 164 - 164
Balance as at 31 March 2014 49,651 2,888 - 2,888 - 52,539
1(d)(ii)
Ordinary shares
Convertibles
Treasury Shares
The Company did not have any treasury shares as at 31 March 2014 and 31 March 2013.
Nil
[Link] ordinary shares
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.
540,041,625 Balance as at 1 January 2014 and 31 March 2014
S$000
As at 31-Mar-13
Nil
49,651
Attributable to equity holders of the Company
As at 31-Mar-14
Details of any changes in the companys 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, 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.
No. of shares No. of shares
Outstanding option to subscribe new shares
Page 6 of 10
1(d)(iii)
1(d)(iv)
2
The figures have not been audited nor reviewed by the auditors.
3
Not applicable.
4
5
Not applicable.
6
a) Based on weighted average number of ordinary shares
on issue; and
Weighted [Link] shares in issue
b) On a fully diluted basis
Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.
No. of shares
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.
As at 31-Mar-14
The group has applied consistent accounting policies and methods of computation in the financial statements for the current
reporting period compared with those of the audited financial statements for the financial year ended 31 December 2013.
Whether the same accounting policies and methods of computation as in the issuers most recently audited annual
financial statements have been applied.
1st Quarter 2014 1st Quarter 2013
540,041,625 540,041,625
Earnings per ordinary share for the period base on net profit
attributable to shareholders (in cents):
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.
0.02
Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of
matter).
0.05
0.05
0.02
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 immediate preceding year.
A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the current financial
period reported on.
540,041,625 540,041,625 Issued and fully paid
No. of shares
Group
As at 31-Dec-13
None.
Page 7 of 10
7
31-Mar-14 31-Dec-13 31-Mar-14 31-Dec-13
15.07 15.03 9.73 9.70
31-Mar-14
31-Dec-13
8
current financial period reported on
Income statement review
Group Turnover FY 2014 FY 2013 + / (-) + / (-)
S$million S$million S$million %
Infrastructure & Engineering ("IE") 3.81 7.24 (3.43) (47.4)
Corrosion Prevention ("CP") 8.91 7.61 1.30 17.1
Supply & Distribution ("SD") 3.37 3.78 (0.41) (10.8)
Shipping & Others ("SH") 1.51 1.74 (0.23) (13.2)
17.60 20.37 (2.77) (13.6)
The net asset value per ordinary share is calculated using the Group's net asset value as at the end of the period of S$81.39 million
and the Company's net asset value as at the end of the period of S$52.54 million divided by the share capital of 540,041,625
ordinary shares.
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.
1st Quarter results
The Group's revenue decreased by 13.6% or S$2.77 million from S$20.37 million in 1Q2013 to S$17.60 million in 1Q2014.
COMPANY
Net asset value per ordinary share based on issued share
capital at end of the period / year (in cents)
The net asset value per ordinary share is calculated using the Group's net asset value as at the end of the year of S$81.18 million
and the Company's net asset value as at the end of the year of S$52.37 million divided by the share capital of 540,041,625 ordinary
shares.
GROUP
period reported on, including (where applicable) seasonal or cyclical factors; and
A review of the performance of the group, to the extent necessary for a reasonable understanding of the groups
business. It must include a discussion of the following:
Revenue for our CP division increased by S$1.30 million from S$7.61 million in 1Q2013 to S$8.91 million in 1Q2014. The increase
in revenue was mainly due to increase in the demand from our corrosion prevention services in Batam during 1Q2014.
Our SH division reported lower revenue of S$0.23 million for 1Q2014 from S$1.74 million in 1Q2013 to S$1.51 million in 1Q2014
because of lower utilisation of four sets of tug and barges due to mandatory docking in 1Q2014.
Our gross profit margin remained stable for both quarters at approximately 27%. However, due to the lower revenue contributed by
our IE division, the gross profit declined by S$0.81 million from $5.58 million in 1Q2013 to S$4.77 million in 1Q2014. As a result of
the decrease in gross profit, the Group's profit attributable to shareholders fell to S$0.12 million for 1Q2014 from S$0.28 million for
1Q2013.
Revenue for our IE division decreased by 47.4% or S$3.43 million from S$7.24 million to S$3.81 million as no sizeable shipbuilding
and fabrication contract was secured in FY2013 and into 1Q2014. The division continues to secure recurring small value fabrication
works.
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the
Our SD division registered a decline in revenue of S$0.41 million from S$3.78 million in 1Q2013 to S$3.37 million in 1Q2014 due to
lower demand for hardware.
(a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial
Page 8 of 10
CASHFLOW STATEMENT
ASSETS AND LIABILITIES
9
10
Our second livestock carrier "Diamantina" commenced operations in late March 2014 under long term charter and will contribute to
our Group's earnings for financial year 2014.
The Board is of the opinion that, after taking into consideration the Groups existing cash and cash equivalents, and the available
bank facilities, the Group is able to meet its short-term obligations as and when they fall due.
The Group registered net operating cash inflow of S$2.76 million in 1Q2014 as a result of positive earnings during the quarter and
collections from trade and other receivables over payables.
The Group's current assets declined from S$72.33 million as at 31 December 2013 to S$67.18 million as at 31 March 2014 mainly
due to outflow in net cash and bank balance by S$1.56 million and reduced in net trade receivables by S$3.32 million.
Our additions to fixed asset for 1Q2014 was approximately S$1.97 million. This was mainly attributable to the additional costs for
the completion of our second livestock carrier "Diamantina".
Competition for new vessel building jobs remains intense and our IE division's performance is expected to be challenging in the
current financial year. The projects we have been able to secure recently are not sizeable enough for our Batam shipyard to
achieve optimal operating capacity. We will intensify our marketing effort to secure more projects.
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
next 12 months.
Net cash outflow in financing activities was approximately S$2.12 million during 1Q2014. This was mainly due to repayment of
lease liabilities and bank borrowings.
Total liabilities for the Group were S$92.54 million at end of 1Q2014 as compared to S$98.60 million at end of FY2013. The
reduction was mainly attributable to net repayment of bank borrowings of S$2.89 million during 1Q2014 and net payment to trade
and other payables of S$3.18 million.
As a result of the above, the Group registered a net decrease in cash and cash equivalents of approximately S$1.23 million for
1Q2014.
The Group registered total assets of S$176.45 million as at 31 March 2014.
The Group registered net current liabilities of S$7.76 million as at 31 March 2014 as compared to S$7.14 million as at 31 December
2013. The net current liabilities position registered in both quarters was mainly due to the Group's utilisation of its short-term bank
borrowings to finance the conversion of the second livestock carrier.
Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and
the actual results.
The Company did not make any forecast and prospect statement in respect of its result for 31 March 2014. The Group's actual
results for its first quarter ended 31 March 2014 are in line with the commentary under paragraph 10 of the Group's previous results
announcement in respect of the full year ended 31 December 2013.
Page 9 of 10
11 Dividend
(a) Current Financial Period Reported On
Any dividend declared for the current financial period reported on?
None
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial period?
None
(c) Date payable
Not applicable
(d) Books closure date
Not applicable
12 If no dividend has been declared / recommended, a statement to that effect.
No interim dividend has been declared/recommended for the current period ended 31 March 2014.
13
[ Revenue / (Expenses) ]
Provision of corrosion prevention services
Transportation charges
PT. Drydocks World Pertama
Provision of corrosion prevention services
Procurement of materials and consumables
Sale of hardware equipments, tools and other consumables
14
BY ORDER OF THE BOARD
Chua Beng Kuang Chua Meng Hua
Executive Chairman Managing Director
5 May 2014
We, Chua Beng Kuang and Chua Meng Hua, being Directors of Beng Kuang Marine Limited (the Company), do hereby confirm,
for and on behalf of the Board of Directors of the Company, that, to the best of our knowledge, nothing has come to the attention of
the Board which may render the unaudited interim financial results for the period ended 31 March 2014 to be false or misleading in
any material aspect.
Negative confirmation pursuant to Rule 705(5).
1,026,773
421,695
(12,227)
S$
Summary of Interested Person Transactions for the financial period ended 31 March 2014.
(32,306)
1,235
DDW - Paxocean Shipyard Pte Ltd (Formerly
known as Drydocks World - Singapore Pte Ltd)
1st Quarter of FY2014
Aggregate value of all
interested person transactions
during the financial year under
review (excluding transactions
less than S$100,000 and
transactions conducted under
the shareholders' mandate
pursuant to Rule 920)
Aggregate value of all
interested person
transactions conducted under
the shareholders' mandate
pursuant to Rule 920
(excluding transactions less
than S$100,000)
S$
Page 10 of 10
