Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.
As mentioned previously, the (loss)/ profit from EUK and WDE have been classfied as discontinued operations in HY 2017 and HY 2016.
Revenue from continuing operations for the 6 months ended 30 September 2016 decreased 10.0% to S$0.49 million as compared to S$0.55 million in the previous corresponding period due to a decrease in revenue from our Malaysian pubishing operations.
Loss from discontinuing operations – EV division
Revenue from our EV division for the 6 months ended 30 September 2016 decreased 73.6% to S$1.23 million as compared to S$4.64 million in the previous corresponding period. Due to a delay in the installation and fulfillment of rapid chargers in the financial year ended 31 March 2015 ("FY 2015"), these installations were only completed and the related revenue recognized in HY 2016, consequently, revenue for HY 2016 was higher.
Employee compensation decreased by 25.8% to S$0.66 million as compared to S$0.89 million in the previous corresponding period due (i) to the cessation of our EV operations in Singapore from 1 April 2016 and (ii) the weakening of the Sterling pound against the Singapore dollar during the financial period.
Finance expenses decreased by 36.7% to S$29,000 as compared to S$46,000 in HY2016 as a result of lower borrowings.
The EV division incurred a loss of S$1.14 million as compared to a profit of S$0.97 million in the previous corresponding period due to weak demand for charger sales and installations as government funding for charging infrastructure has slowed down and the higher HY 2016 revenue arising as a result of the delays in the installation of rapid chargers in FY 2015 as mentioned above.
Loss attributable to shareholders
Loss attributable to shareholders for the period under review was S$3.13 million as compared to S$0.72 million in the previous corresponding period.
The higher loss was due to the following:
Employee compensation increased by 195.4% to S$2.07 million as compared to S$0.7 million in the previous corresponding period due to damages for contractual breach paid to executive directors who stepped down during the financial period amounting to S$1.71 million.
Operating lease expenses increased by 316.7% to S$25,000 as compared to S$6,000 in HY 2016 due to a new lease taken up by the Company during the financial period.
Other operating expenses increased by 14.1% to S$0.77 million as compared to S$0.68 million in the previous corresponding period largely due to fees made for professional services during HY 2017.
In accordance with FRS105, the Group has classified the assets and liabilities associated with EUK as assets of disposal group held-for-sale and liabilities directly associated with disposal group held-for-sale.
The decrease in trade and other receivables arising from the deconsolidation of WDE of about S$0.4 million and the reclassification of EUK as assets for disposal group-held-for-sale.
The decrease in inventories, other current assets and intangible assets is due to the classification of EUK as assets for disposal group-held-for-sale.
The decrease in trade and other payables is due to:
The decrease in borrowings is due to classification to liablities directly associated with disposal group classified as held-for-sale.
The Group's balance sheet before the classification of EUK as disposal group held-for-sale is presented below for comparative purposes.
Cash and cash equivalents as at end of period was S$1.07 million as compared to S$4.19 million at the beginning of the period.
Cash used in operating activities increase by S$0.87 million to S$2.83 million in HY 2017 as compared to HY 2016 largely due to the operating loss incurred by our EV division and the increase in employee compensation.
Cash used in investing activities decreased to S$8,000 in HY 2017 as compared to S$0.21 million in HY 2016 due mainly to the absence of intangible assets of S$0.2 million in HY 2017.
Cash used in financing activities was S$0.24 million in HY 2017 as compared to cash generated of S$3.2 million in HY 2016 mainly due to repayment of term loans and interest paid. In HY 2016, the Company raised S$3.1 million from a rights issue.
As a result of the foregoing, the Group had a positive working capital of S$0.27 million (excluding assets and liaibilities of disposal group held-for-sale) as at 30 September 2016.
On 4 November 2016, the Company has announced that it entered into a termination deed for the proposed acquisition of QT Interactive Technology Investments Limited. The Company has also announced that it has entered into a non-binding MOU with Gemini Investment Corp and Arion Technology Inc to acquire a 63.13% stake in Dream T Entertainment Co., Ltd.
Notwithstanding the termination, it is the Company's intention to cease, dispose or transfer its existing electric vehicle charging solutions and publishing businesses. The Company has on 9 September 2016 announced the proposed disposal of its 55% stake in the issued capital of EUK to Chargemaster Plc.