half year ended 31 december 2019 for personal use only · 2020-02-27 · specifically, our revenue...

COASSETS LIMITED

ACN 604 341 826

Appendix 4D

Half year ended 31 DECEMBER 2019 Comparative period: Half year ended 31 December 2018

Results for announcement to the market

31 December 2019

S$

Revenue from ordinary activities Down 52% to 2,855,290

Profit/(loss) from ordinary activities after tax attributable to members

Down 419% to (3,191,066)

Net Profit/ (loss) for the period attributable to members Down 419% to (3,191,066)

No dividends have been paid or are proposed

A statement of comprehensive income, statement of financial position, statement of cash flows,

statement of changes in equity, segmental results and associated notes are contained within the

attached half year report, which also contains a comprehensive review of the performance of the

Group during the period within the Executive Chairman’s Letter.

31 December

2019 cents

30 June 2019 cents

Net Tangible Assets per security 3.9 5.1

Control was gained over a minor subsidiary during the period as outlined in the Appendix 4c published

on 30 January 2020. Details of the associated entity is provided in note 13 to the half year report.

The financial report attached has an unqualified independent review report.

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1S D S S D S D S D S D S D

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2 A S S A S A S A S A S A S S A S

ContentS

Corporate Directory 3 Chairman’s Letter 6 Directors’ Report 8Auditor’s Independence Declaration 10Financial Report 12Directors’ Declaration 24Independent Auditor’s Report 28to the Members

2 C O N T E N T S

Et que consendit magniatiam dolorum es quis esti tem as dioriamus.

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3S D S S D S D S D S D S DC O R P O R A T E D I R E C T O R Y 3

David Garry Non-executive Director Aaron GarryNon-executive Director

May ChuahNon-executive Director

Directors

Getty Goh Te-WinCEO and Executive Chairman Seh Huan KiatChief of Staff

Jeffrey ChiNon-executive Director

Company SecretarySwapna Keskar

Registered Officec/o Company Matters Level 12 680 George Street Sydney NSW 2000Telephone: +61 2 8280 7355Facsimile: +61 2 9287 0350

Share RegistryAutomic GroupLevel 2267 St Georges TerracePerth WA 60001300 288 664(Within Australia)+61(0)2 9698 5414(International)

Company Website www.coassets.com

AuditorsDFK Laurence Varnay Audit Pty LtdLevel 12 222 Pitt StreetSydney NSW 2000

Stock Exchange ListingCoAssets Limited sharesare listed on the Australian Securities Exchange Code: CA8

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4

OUR VISIONTo be a wealth platform where investors can access credible and profitable investments

OUR MISSIONTo grow our investors wealth by offering them robustly structured alternative investmentproducts online

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6 A S S A S A S A S A S A S S A S

FY2019/2020 MID YEAR FINANCIAL AND OPERATIONS REVIEWDear Shareholders,

I am pleased to provide you with an overview of CoAssets Limited’s (CoAssets) operations for the period ended 31st De-cember 2019 together with the financial reports.

CoAssets has been actively pursuing growth opportunities within the Hong Kong market since 2017, and our revenue has been significant during that period. Unfortunately, esca-lating protests within Hong Kong have resulted in a significant decline in demand for loans and investments during the recent period, and this has impacted upon our half year results.

Specifically, our revenue has dropped from S$5.94mil as at 31 Dec 2018 to S$2.86mil as at 31 Dec 2019, primarily attributed to a decline in financial technology advisory income. The drop in revenue correspondingly resulted in the Group making a loss of about S$3.30mil in the first half of FY2019/2020.

Despite the loss of earnings, shareholders would be pleased to note that interest income grew from S$0.8mil in 2018 to S$2.1mil in 2019 – an increase of 137%. I believe the Group’s revenue will gradually become more stable as we continue to focus on generating more interest income.

Online funding wise, we continue to do well in Singapore. The returns and the default rates from 2017 to 2019, based on our submission to the Singapore regulators, are as follows.

Notwithstanding the headwinds, CoAssets have measures in place to keep the company growing:

a. Measure 1: Cost Reduction. In the event that market un-certainty continues to adversely impact overall business perfor-mance, management will look for cost reduction opportunities across the group in order to ensure the company’s sustainability in the short- to mid-term.

b. Measure 2: Diversify Geographic Markets. At present, CoAssets is very active in Singapore, Hong Kong and China – key markets which are currently affected by the Covid-19 out-break. Given the potential disruption to these markets, we are actively assessing new geographical markets and looking for partnerships there that can grow our existing corporate lending and financial technology advisory business.

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7F Y 2 0 1 9 / 2 0 2 0 M I D Y E A R F I N A N C I A L A N D O P E R A T I O N S R E V I E W

c. Measure 3: Invest in Strategic Opportunities. While the Covid-19 outbreak has dulled economic outlook in some parts of Asia, I believe that it has also resulted in interesting opportunities in those markets. We are presently evaluating possible market niches and we will make the relevant an-nouncements in due course.

New Director appointment

I am pleased to welcome Ms May Chuah to the Board as an Independent Director. May resides in Australia and brings to the Board considerable commercial experience together with gender diversity to the Board.

May holds a Bachelor’s degree in Commerce, majoring in Accounting and Finance from the University of Melbourne and is a Chartered Accountant (Australia & New Zealand) with over 16 years’ experience as an Executive Director and CFO in both listed and private operations in Australia, New Zealand and Southeast Asia. Her previous experience includes Executive Director or Chief Financial Officer roles in Libra Group Limited (SGX listed), Verita Healthcare Group Limited (Singapore public company), Migme Limited (ASX listed), Iproperty Group Limited (ASX listed but bought out by REA Group), Q Limited (ASX listed) and Jumbuck Entertain-ment Limited (ASX listed).

In conclusion…

As a growing company, it is inevitable that we are affected by unforeseen events like the Hong Kong protests as well as the Covid-19 outbreak. Putting things into perspective, these are issues that all companies face and are not exclusive to CoAssets. However, unlike some of the other companies, CoAssets is on a firm footing - the Group has a Capital Market Services License (CMSL) via CoAssets Pte Ltd (CAPL), a property agency license via CoAssets Real Estate Pte Ltd

(CARE) as well as investments in a Hong Kong licensed money lending company.

On 15 Jan 2020, CoAssets International Pte Ltd (CAI) was also recognised by The Straits Times as one of Singapore’s fastest growing company for 2020 (https://www.straitstimes.com/fastest-growing-companies-2020). All these show that, despite the market challenges, it is still business as usual for us at the CoAssets Group.

Ultimately, this temporary set-back is nothing new for the management team. Back in FY 2016/2017, when CoAssets first listed, we had revenue of about S$731,000 and made losses of more than S$6.2million. However, we managed to turn things around over the following 2 years. I am confident that with the constant support of shareholders and with the team’s hard work, we will be able to ride out the current uncertainty and stage a strong comeback. As we work to make that goal a reality, I would like to thank you, our shareholders, for your faith and continuous support, and we look forward to bringing you more good news in the months to come.

Getty Goh Executive Chairman CoAssets Limited

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8 A S S A S A S A S A S A S S A SD

DIRECTORS’REPORT

PAGE 8

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9D I R E C T O R S ’ R E P O R T

DIRECTORS’ REPORTYour directors present their financial report of the consolidated entity consisting of CoAssets Limited (“CA8 or the “Compa-ny”) and the entities it controlled at the end of, or during the half year ended 31 December 2019 (together the “Group”). All amounts are stated in Singapore dollars (S$) unless otherwise noted.

DIRECTORS OF COASSETS LIMITED

The names of each person who has been a director during the period and who continue in office at the date of this report (unless otherwise stated) are:

Getty Goh Te-Win (Chief Executive Officer)

Seh Huan Kiat (Chief of Staff)

Jeffrey Chi (Independent Non-Executive Director)

David Garry (Independent Non-Executive Director)

Aaron Garry (Independent Non-Executive Director) (appointed 1 July 2019)

May Chuah (Independent Non-Executive Director) (appointed 20 November 2019)

DIVIDENDS

No dividends were paid or are proposed to be paid to members during the half year under review.

REVIEW OF OPERATIONS AND FINANCIAL RESULTS

The Review of operations and Financial Results are set out in the Executive Chairman’s Letter on page 6.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

There have been no other significant changes in the state of affairs of the Group during the financial period.

EVENTS SUBSEQUENT TO REPORTING DATE

In the opinion of the directors, there has not arisen in the interval between the end of the financial year and the date of the report any matter or circumstance that has significantly affected, or may significantly affect the Consolidated Group’s oper-ations, results or the state of affairs in future financial years:

AUDITOR

DFK Laurence Varnay Audit Pty Ltd continue in office as the Group’s auditor.

Signed in accordance with a resolution of the board of directors

Getty Goh Director Singapore 27 February 2020

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1 0 A S S A S A S A S A S A S S A S

AUDITOR’S INDEPENDENCE DECLARATION

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FINANCIAL REPORT PAGE 12

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1 3F I N A N C I A L R E P O R T

Note

Half year ended

31 Dec 2019

S$

Half year ended

31 Dec 2018

S$

Revenue 5 2,855,290 5,938,415

Interest expense (2,280,360) (1,129,281)

Net operating income 574,930 4,809,134

Investment gains 6 671,288 868,567Operating expenses 7 (4,076,716) (3,543,461)Allowance for impairment provision 8 (140,428) (1,193,425)Depreciation and amortisation expense (324,212) (50,022)(Loss)/profit before income tax (3,295,138) 890,793Income tax expense - -(Loss)/profit after income tax (3,295,138) 890,793

(Loss)/ profit is attributable to:Owners of CoAssets Limited (3,191,033) 999,293Non-controlling interests (104,105) (108,500)

(3,295,138) 890,793Other comprehensive income/ (loss)Items that may be reclassified to profit or lossExchange differences on translation of foreign operations (255,098) (73,326)Other comprehensive loss for the period net of tax (255,098) (73,326)

Total comprehensive (loss)/profit for the period (3,550,236) 817,467

Total comprehensive (loss)/income for the period is attributable to:Owners of CoAssets Limited (3,445,306) 940,456Non-controlling interests (104,930) (122,989)

(3,550,236) 817,467

Earnings per share from continuing operations 16Basic (loss)/profit per share attributable to owners of CoAssets Limited (cents per share) (1.5) 0.6Diluted (loss)/profit per share attributable to owners of CoAssets Limited (cents per share)

(1.5) 0.5The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

C o A s s e t s L i m i t e d C o n s o l i d a t e d S t a t e m e n t o f P r o f i t o r L o s s a n d O t h e r C o m p r e h e n s i v e I n c o m eF o r t h e h a l f y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9

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1 4 F I N A N C I A L R E P O R T

Note 31 Dec 2019

S$

30 June 2019

S$Current assetsCash and cash equivalents 3,358,367 3,998,175Trade and other receivables 9 7,343,815 8,316,802Loans and advances 10 23,861,710 23,627,457Debt Securities 11 3,969,885 -Total current assets 38,533,777 35,942,434

Non-current assetsInvestment in associate 13 8,072,585 8,019,618Loans and advances 10 320,015 366,248Property, plant & equipment 1,032,322 343,814Intangible assets 306,223 181,012Equity Investments 12 3,648,304 2,988,579Total non-current assets 13,379,449 11,899,271

Total assets 51,913,226 47,841,705

Current liabilitiesTrade and other payables 14 2,833,444 1,687,622Deferred revenue 715,000 660,555Borrowings 39,272,101 33,567,535Lease liability 21 426,624 -Total current liabilities 43,247,169 35,915,712

Non-current liabilities – Lease liability 21 289,926 -

Total liabilities 43,537,095 35,915,712

Net assets 8,376,131 11,925,993EquityIssued capital - ordinary 15 20,200,810 20,184,187Reserves 17 (431,294) (160,772)Accumulated losses (11,397,739) (8,206,706)Non-controlling interest 4,354 109,284Total equity 8,376,131 11,925,993

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying note

C o A s s e t s L i m i t e dC o n s o l i d a t e d S t a t e m e n t o f F i n a n c i a l P o s i t i o n

F o r t h e h a l f y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9

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Period ended

31 December 2019

Issued Capital

-Ordinary

Share Based

Payments Reserve

Foreign Currency

Translation Reserves

Accumulated Losses

Non- controlling interests

Total

S$ S$ S$ S$ S$ S$Balance at 1 July 2019 20,184,187 56,971 (217,743) (8,206,706) 109,284 11,925,993Loss attributable to members of parent entity - - - (3,191,033) - (3,191,033)Loss attributable to non-con-trolling interests - - - - (104,105) (104,105)Exchange difference on foreign operations - - (254,273) - (825) (255,098)Total comprehensive income for the period - - (254,273) (3,191,033) (104,930) (3,550,236)Transactions with owners in their capacity as owners

Share issues 16,623 (16,623) - - - -Share based payments - 374 - - - 374Balance at 31 Dec 2019 20,200,810 40,722 (472,016) (11,397,739) 4,354 8,376,131

Comparative Period

Issued Capital

-Ordinary

Share Based

Payments Reserve

Foreign Currency

Translation Reserves

Accumulated Losses

Non- controlling interests

Total

S$ S$ S$ S$ S$ S$Balance at 30 June 2018 as published

18,115,898 590,358 (39,641) (7,225,071) 375,852 11,817,396Restatement from adopting AASB 15 (note 20) - - - (2,871,571) - (2,871,571)Balance at 1 July 2018 as restated 18,115,898 590,358 (39,641) (10,096,642) 375,852 8,945,825Profit attributable to members of parent entity - - - 999,293 - 999,293Loss attributable to non-con-trolling interests - - - - (108,500) (108,500)Exchange difference on foreign operations - - (58,837) - (14,489) (73,326)

Total comprehensive income for the period - - (58,837) 999,293 (122,989) 817,467Transactions with owners in their capacity as owners Share issues 1,803,168 (207,323) - - - 1,595,845Received shares provided to employees (note 15(i)) (217,261) (217,261)Share based payments - 72,771 - - - 72,771Balance at 31 Dec 2018 19,919,066 238,545 (98,478) (9,097,349) 252,863 11,214,647

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

C o A s s e t s L i m i t e dC o n s o l i d a t e d S t a t e m e n t o f C h a n g e s i n E q u i t yF o r t h e p e r i o d e n d e d 3 0 J u n e 2 0 1 9

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1/7/19 to 31/12/19 S$

1/7/18 to 31/12/18 S$

Operating activitiesReceipts from customers 2,555,811 1,233,280Payments to directors and staff (2,068,358) (1,610,749)Payments to suppliers (2,024,771) (1,897,631)

Increase in investor deposits (6,689) (8,470)Cash absorbed by operations, representing net cash used in

operating activities (1,544,007) (2,283,570)

Investing activitiesPurchase of plant, equipment and intangible assets (196,164) (226,802)Interest received 685,363 656,310Loans and advances made (10,945,241) (10,185,041)Proceeds from redemption of loans and advances 7,100,461 3,214,405Payments to acquire controlled business entity - (38,800)Net cash used in investing activities (3,355,581) (6,579,928)

Financing activitiesProceeds from borrowings 18,156,622 18,326,788Repayment of borrowings (12,452,056) (10,137,301)Interest paid (1,203,571) (634,606)Net cash from financing activities 4,500,995 7,554,881

Net change in cash and cash equivalents (398,593) (1,308,617)Cash and cash equivalents at beginning of financial period 3,998,175 7,769,604Effects of foreign exchange (241,215) (199,666)Cash and cash equivalents at end of financial period 3,358,367 6,261,321

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

C o A s s e t s L i m i t e dC o n s o l i d a t e d S t a t e m e n t o f C a s h F l o w s


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1 Basis of Preparation

These condensed interim consolidated financial statements (the interim financial statements) of the Group are for the half year ended 31 December 2019 and are presented in Singapore Dollars (S$), which is the functional currency of the Group. These general purpose interim financial statements have been prepared in accordance with the requirements of the Corporations Act 2001 and AASB 134 Interim Financial Reporting. They do not include all of the information required in annual financial state-ments in accordance with Australian Accounting Standards, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2019 and any public announcements made by the Group during the half-year in accordance with continuous disclosure requirements arising under the Australian Securities Exchange Listing Rules and the Corporations Act 2001.

These interim financial statements have been approved and authorised for issue by the Board of Directors on 27 February 2020.

2 Significant accounting policies

These interim financial statements have been prepared in accordance with the same accounting policies adopted in the Group’s last annual financial statements for the year ended 30 June 2019, except for the adoption of AASB 16 Leases, the impact of which is set out in note 22. The accounting policies have been applied consistently throughout the Group for the purposes of preparation of these interim financial statements.

3 Estimates

When preparing the interim financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judge-ments, estimates and assumptions made by management, and will seldom equal the estimated results.

The judgements, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty were the same as those applied in the Group’s last annual financial statements for the year ended 30 June 2019.

4 Operating Segment Information

Management identifies its operating segments based on the Group’s geographic locations, which represent the main operating divisions of the Group. The Group’s two main operating segments are:

- Singapore: Crowdfunding, on-balance sheet lending and debt raising

- China: Crowdfunding, IT service development; strategic investments

Both of these operating segments are managed separately for the reasons of geography, regulation and marketing. These oper-ating segments are monitored and strategic decisions are made on the basis of adjusted segment operating results. In addition, two minor operating segments, for which the quantitative thresholds for separate disclosures have not been met, are currently combined below under ‘other’. The geographic locations for these segments are Australia and Malaysia.

Half year ended 31 Dec 2019Singapore China Other Total

S$ S$ S$ S$Total segment revenue 2,628,331 226,940 19 2,855,290Segment result net profit/(loss) before tax (3,518,921) 552,417 (328,634) (3,295,138)Segment Assets 38,292,115 13,375,333 245,778 51,913,226

Singapore China Other TotalHalf year ended 31 Dec 2018 S$ S$ S$ S$Total segment revenue 5,807,030 122,365 54,020 5,983,415Segment result net profit/(loss) before tax 739,562 524,286 (373,055) 890,793Year ended 30 June 2019Segment assets 35,096,175 12,573,949 171,581 47,841,705

C o A s s e t s L i m i t e dN o t e s t o t h e F i n a n c i a l S t a t e m e n t sF o r t h e p e r i o d e n d e d 3 0 J u n e 2 0 1 9

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5 Revenue from continuing operations 31/12/19 31/12/18S$ S$

Interest income 2,112,402 892,138Online fee income 463,485 1,471,318Financial technology advisory income - 3,480,000Other income 279,403 94,959

2,855,290 5,938,416

6 Investment gains 31/12/19 31/12/18S$ S$

Fair value gain on revaluation of Brighten Finance (note 12) 659,725 867,722Share of profit of associate (note 13) 11,563 845

671,288 868,567

7 Operating expenses 31/12/19 31/12/18S$ S$

Advertising and marketing 141,851 38,214Audit, license and compliance fees 84,082 131,752Consulting fees 189,142 137,040Directors’ fees and remuneration 240,922 240,786Employee benefits expense 1,843,775 1,649,412Events expenses 139,304 72,378Legal and professional fees 376,866 292,357Rental of premises (note 22) - 170,371Telephone, Internet, website and software maintenance 131,368 201,774Travelling and transport 195,847 115,005Other operating costs 733,559 494,372

4,076,716 3,543,461

8 Allowance for impairment (profit and loss) 31/12/19 31/12/18S$ S$

(33,633) (1,047,123)(79,440) -(68,759) -

41,404 (146,302)

Impairment of carrying value of Trade receivables (note 9) Impairment of carrying value of Interest receivable (note 9(i)) Impairment of carrying value of Loans and advances (write offs) Release of/ (allowance for) impairment of carrying value of Associate (note 13) Allowance for impairment provision

(140,428) (1,193,425)

C o A s s e t s L i m i t e dN o t e s t o t h e F i n a n c i a l S t a t e m e n t s


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9 Trade and other receivables 31/12/19 30/06/19S$ S$

Trade receivables 6,068,772 8,216,550Allowance for Impairment loss (1,116,703) (1,368,123)

4,952,069 6,848,427Other receivables (i) 2,391,746 1,468,375

7,343,815 8,316,802Impairment provision movementBalance at beginning of financial year/period (1,368,123) (296,450)Bad debts written off against provisions 285,053 -Profit and loss charge (note 8) (33,633) (1,071,673)Balance at end of financial year/period (1,116,703) (1,368,123)

(i) Other receivablesInterest receivables 1,895,048 881,473Allowance for impairment loss on interest receivables (note 8) (79,440) -Advance payments to suppliers 338,642 355,155Deposits and other 237,496 231,747

2,391,746 1,468,375

10 Loans and advances31/12/19 30/06/19

S$ S$Balance at beginning of financial year/period 24,599,155 9,136,706Loans and advances made (i) 10,945,241 22,086,397Redemption of loans and advances (7,100,461) (5,991,305)Non-cash redemption of loans and advances (ii) (3,556,422) (217,261)Other movements (write-offs and foreign exchange) (100,338) (415,382)Balance at end of financial year/period, before provisions 24,787,175 24,599,155Impairment provision held against loans and advances (605,450) (605,450)

24,181,725 23,993,705

Repayable within 1 year 23,861,710 23,627,457Repayable after 1 year 320,015 366,248Total net of impairment provisions 24,181,725 23,993,705

(i) The loans and advances made are secured by various means, mostly by the project assets to which the loan relates. As at 31 December 2019, they had effective interest rates ranging from 11% to 33% and maturity periods ranging from 3 to 12 months.

(ii) Non-cash redemption of loans by exchange for Debt securities refer to note 11. In the comparative period, exchange for CoAssets Ordinary Shares, used to provide share-based payments to employees refer to note 17(i).

C o A s s e t s L i m i t e dN o t e s t o t h e F i n a n c i a l S t a t e m e n t sF o r t h e h a l f y e a r e n d e d 3 1 D e c e m b e r 2 0 1 9

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11 Debt Securities

31/12/19 30/06/19S$ S$

Investment in Unquoted debt securities – At fair valueInvestment in movie production promissory notes (i) 3,969,885 -

On 20 December 2019, CoAssets entered into an agreement with Brighten Management Limited (BML) to exchange re-ceivables due from BML (previously classified as Loans and Advances) for promissory notes issued by special purpose vehicles undertaking financing for production of movies.

The debt promissory notes do not qualify to be accounted for using the amortised cost method as the value and timing of the cash flows is not sufficiently certain. Under AASB 7, the investments are classified as fair value through profit and loss. CoAssets has made no classification elections.

Given the short period of time since acquisition of the debt securities, the directors’ valuation of the holding of is not ex-pected to have changed materially from the fair value of the loans and advances exchanged, measured at amortised cost.

12 Equity Investments

31/12/19 30/06/19S$ S$

Investment in Unquoted equity securities – At fair valueInvestment in Brighten Finance Ltd 3,648,304 2,988,579

CoAssets holds 25% of the share capital in Brighten Finance Limited. CoAssets has no ability to appoint Board directors and has no ability to assert significant influence. The valuation was provided by IHS Markit, an independent third party as at 31 December 2019 and represented a $659,725 increase over the valuation at 30 June 2019 (note 6). The Board relied on market data and the external documentation pertaining to the potential value realisable should this investment be sold.

13 Investment in Associates

Investment in Fintech Pte Ltd 31/12/19 30/06/19S$ S$

Deemed cost of investment in associate at beginning of period /acquisition 7,207,604 5,611,719

Additional investment during the period - 1,595,885Deemed cost of investment in associate at end of period 7,207,604 7,207,604Cumulative share of profits to beginning of financial period 853,418 1,396Share of profits of associate in the period (note 6) 11,563 852,022Allowance for impairment at beginning of period (41,404) -Increase in allowance for impairment in the period (i) – (note 8) 41,404 (41,404)Carrying value of investment in associate 8,072,585 8,019,618

(i) The directors carry out 6 monthly impairment testing of Fintech Pte Ltd, to ensure the carrying value does not exceed the fair value of the investment. The directors obtained an independent valuation from IHS Markit, an independent third party as of 31 December 2019. The Board relied on market data and the external documentation pertaining to the potential value realisable should this investment be sold.



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14 Trade and Other Payables 31/12/19 30/06/19S$ S$

Accrued interest 2,308,632 1,269,581Trade payables 336,282 249,636Crowdfunders’ deposits 26,028 32,717Accruals 162,502 135,688

2,833,444 1,687,622

All amounts are expected to be settled within 12 months.

15 Issued Capital31/12/19 30/06/19

Share capital

S$ S$Fully paid ordinary shares (a), (b) 20,200,810 20,184,187

(a) Movement in shares – current period

Fully paid ordinary shares Date Number S$Opening balance 01/07/19 206,478,081 20,184,187Conversion of performance rights 01/08/19 65,087 16,623Closing balance 31/12/2019 206,543,168 20,200,810

(b) Movement in shares – comparative period

Fully paid ordinary shares Date Number S$Opening balance 01/07/18 192,484,478 18,115,898Shares issued for investment in associate (note 13) 23/10/18 12,222,222 1,595,885Conversion of performance rights 08/11/18 771,381 207,323Conversion of performance rights 28/06/19 1,000,000 265,081Closing balance 30/06/2019 206,478,081 20,184,187


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16 Earning per Share

The weighted average number of shares used as the denominator for the basic earnings per share calculation was 206,531,849, based on the details shown in note 15. (Half year ended 31 December 2018; 197,290,002).

The diluted Earnings per share calculation assumes that potential shares include the 65,087 performance rights issued on 1 August 2019, and that the employment criteria for these to vest is assumed to be have been waived. The weighted average number of shares would increase by 11,319 to 206,543,168. There is no accelerated AASB2 charge as all performance shares have now been converted (2018: $169,241), thus the diluted loss remains as $3,191,033 (2018: Profit S$830,051)

17 Reserves 31/12/19 30/06/19 S$ S$

Share Based Payment Reserve (i) 40,722 56,971Foreign currency translation reserve (ii) (472,016) (217,743)

(431,294) (160,772)

(i) Share Based Payment Reserve31/12/19

S$

30/06/19

S$Balance at beginning of the period 56,971 590,358Performance share expense recognised during the period - 163,146Shares received in lieu of redemption of loans and advances utilised to provide shares to employees (note 10(ii)) - (217,261)Transfer to share capital on issuance of Performance shares (16,623) (472,404)Foreign exchange translation difference 374 (6,868)Balance at end of the period 40,722 56,971

The share based payment reserve is used to recognise:

• The fair value of options issued to employees and consultants but not exercised

• The fair value of performance shares issued to employees as the charge arises in the statement of profit and loss.

• The fair value of performance shares issued to directors based on an estimate of the probability of those shares vesting.

• The difference between the fair value of the performance share expense and fair value of shares received (rather than shares issued) and used to provide to the employees. This amounted to S$40,722 at 31 December 2019 (30 June 2019: S$41,041).

(ii) Foreign Currency Translation Reserve

31/12/19

S$

30/06/19

S$Balance at beginning of the period (217,743) (39,641)Reserve arising on translation of foreign subsidiaries (255,098) (191,860)Non-controlling interest share of translation 825 13,758Balance at end of the period (472,016) (217,743)

Foreign currency translation

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries. It is also used to record the effect of hedging net investments in foreign operations.



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18 Fair Values of Financial Instruments

The carrying values of all financial assets and liabilities of the Group approximate their fair values, due to the relatively short term maturity of the financial instruments measured at amortised cost; or for equity investments, as the carrying amounts are equal to fair value which has been determined by using the fair value hierarchy below.

Fair value hierarchy

The Group classifies assets and liabilities carried at fair value using a fair value hierarchy that reflects the significance of the inputs used in determining that value. The following table analyses financial instruments carried at fair value by the valuation method. The different levels in the hierarchy have been defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The fair value of financial instruments that are not traded in an active market (for example investments in unlisted companies) are determined using valuation techniques as outlined in note 10

The carrying amounts of all financial assets and financial liabilities are estimated to approximate fair values.

The methods and assumptions used to estimate the fair value of financial instruments are outlined below:

Cash/financial liabilities and loans

The carrying amount is fair value due to the short term or liquid nature of these assets.

Receivables/payables

Due to their short-term nature, the carrying amount of the current receivables and current payables is assumed to approxi-mate their fair value.

Equity Investments

The method of determining the fair value of investments is set out in note 10

19 Contingent Liabilities

There are no contingent liabilities at 31 December 2019 and 30 June 2019.

20 Commitments for Expenditure

There are no commitments at 31 December 2019 and 30 June 2019.


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21 Events Subsequent to Reporting Date

In the opinion of the directors, there has not arisen in the interval between 31 December 2019 and the date of the report any matter or circumstance that has significantly affected, or may significantly affect the Consolidated Group’s operations, results or the state of affairs in future financial years.

22 Implementation of AASB 16 Leases

The Group adopted AASB 16 Leases with effect from 1 July 2019 and elected to apply it retrospectively with the cumulative effect of the initial application recognised at the date of initial application. However, the Group had no ongoing lease commitments as at 30 June 2019, having signed premises leases with effect from 1 July 2019. Hence there was no opening adjustment to accumulated losses.

The nature of the change is that the Group recognises a Right of use asset and associated Lease liability. Within the profit and loss, depreciation on the Right of use asset and associated interest within Interest expense related to the unwind of the discount rate used to calculate the Right of use asset at inception.

(a) Half year ended 31/12/19 income impacts S$Interest expense as a result of unwind of discount (37,739)Depreciation of Right of use asset (238,362)Reduction in Rental of premises expense 261,032Total reduction in comprehensive income (15,069)

(b) 31/12/19 financial position impacts S$Right of use asset at attributed cost 923,614Accumulated depreciation of Right of use asset (222,133)Lease Liability - current (426,624)Lease Liability – non -current (289,926)



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2 5S D S S D S D S D S D S D

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DIRECTORS’ DECLARATION

PAGE 26

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2 7D I R E C T O R S ’ D E C L A R A T I O N

Directors’ Declaration

In the opinion of the Directors of CoAssets Limited (the “Company”):

1. The attached consolidated financial statements and notes are in accordance with the Corporations Act 2001, including:

(a) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting; and

(b) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2019 and of its performance for the half year ended on that date.

2. There are reasonable grounds to believe that the consolidated entity will be able to pay its debts as and when they become due and payable.

Getty Goh

Director

Singapore

27 February 2020

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half year ended 31 december 2019 for personal use only · 2020-02-27 · specifically, our revenue...

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