HO HUP CONSTRUCTION COMPANY BERHAD(14034-W)

Annual Report 2017

STATEMENTS OF Cash Flows

For the financial year ended 31 December 2017

Group Company
2017 2016 2017 2016
RM’000 RM’000 RM’000 RM’000

Cash Flows From Operating Activities

Profit before tax 48,755 78,017 14,560 62,551
Adjustments for:
  Bad debts written off 101 15 – –
  Depreciation of property, plant
   and equipment 3,023 2,172 155 158
  Depreciation of investment properties 237 – – –
  Amortisation of intangible assets 131 131 – –
  Impairment on trade receivables 174 127 – –
  Share of results of associates and
   joint ventures 605 (230) – –
  Loss on disposal of property, plant
   and equipment 1 – – –
  Gain on disposal of investment properties (171) – – –
  Gain on unrealised foreign exchange (4) – (4) –
  Share-based payment expenses – 827 – 827
  Reversal of impairment on amount due
   from a subsidiary company – – – (31,059)
  Waiver of other payables – (157) – –
  Discount on settlement of a term loan – (1,314) – –
  Interest income (331) (107) (30) (35)
  Finance costs 12,051 7,969 5,462 5,741

Operating profit before working capital changes 64,572 87,450 20,143 38,183

Changes in working capital

  Land held for property development and
   property development costs (106,080) (94,782) – –
  Accrued billing/Progress billing in respect
   of property development costs (15,014) 97,336 – –
  Amount due from/(to) customers on contracts 8,546 (20,809) (15,222) (26,424)
  Inventories 166 278 – –
  Receivables (12,985) (13,438) (108,037) (51,619)
  Payables 74,190 (6,718) 50,874 19,383

(51,177) (38,133) (72,385) (58,660)

Cash generated from/(used in) operations 13,395 49,317 (52,242) (20,477)

  Interest paid (21,915) (12,866) (5,462) (5,741)

  Interest received 331 107 30 35
  Tax paid (14,090) (6,403) (12) (18)

(35,674) (19,162) (5,444) (5,724)

Net cash (used in)/from operating activities (22,279) 30,155 (57,686) (26,201)

081
 HO HUP CONSTRUCTION COMPANY BERHAD(14034-W)
Annual Report 2017

Statements of Cash Flows

(cont’d)

Group Company
2017 2016 2017 2016
RM’000 RM’000 RM’000 RM’000

Cash Flows From Investing Activities

  Purchase of property, plant and
   equipment (Note 4(a)) (31,274) (44,895) (5) (42)
  Purchase of investment properties (15,840) – – –
  Proceeds from disposal of property, plant
   and equipment and investment properties 1,949 – 2 –
  Quarry development cost (3,764) – – –
  Net cash outflow from acquisition of
   subsidiary companies (Note 9(a)) – (19,992) – –
  Acquisition of a joint venture company – (375) – (375)
  Change in pledged deposits (3,273) 5,343 (5,306) (2,118)
  Capital contribution by non-controlling
   interests – 4,830 – –

Net cash used in investing activities (52,202) (55,089) (5,309) (2,535)

Cash Flows From Financing Activities

  Proceeds from exercised of ESOS 16 277 16 277
  Drawdown of borrowings 177,034 122,621 94,956 37,637
  Repayment of finance lease liabilities (2,715) (1,726) – –
  Repayment of borrowings (109,614) (58,137) (24,440) (17,500)

Net cash from financing activities 64,721 63,035 70,532 20,414

Net (decrease) /increase in cash and cash

 equivalents (9,760) 38,101 7,537 (8,322)
Exchange translation differences on
  cash and cash equivalents (27) 133 4 –
Cash and cash equivalents at the
  beginning of the financial year 5,174 (33,060) (8,512) (190)

Cash and cash equivalents at the

  end of the financial year (Note 18) (4,613) 5,174 (971) (8,512)

The accompanying notes form an integral part of the financial statements.

082
105 STATEMENTS OF
CASH FLOWS
For the financial year ended 31 December 2018

Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
(Restated) (Restated)

Cash Flows From Operating Activities

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HO HUP CONSTRUCTION COMPANY BERHAD (14034-W) r


ANNUAL REPORT 2018

 STATEMENTS OF CASH FLOWS 106
(cont’d)

Group Company
2018 2017 2018 2017
RM’000 RM’000 RM’000 RM’000
(Restated) (Restated)

Cash Flows From Investing Activities

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HO HUP CONSTRUCTION COMPANY BERHAD (14034-W)

 HO HUP CONSTRUCTION COMPANY BERHAD 197301000497 (14034-W) · ANNUAL REPORT 2019

STATEMENTS OF
CASH FLOWS
For the financial year ended 31 December 2019

Group Company
2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000

Cash Flows from Operating Activities

Profit before tax 76,083 39,315 3,987 3,879
Adjustments for:
  Depreciation of:
  - property, plant and equipment 1,880 3,610 93 140
  - investment properties 1,608 279 – –
  - right-of-use assets 2,425 – 94 –
  Dividend income – – – (247)
  Amortisation of intangible assets 15 14 – –
  Amortisation of land rights 3,390 – – –
  Impairment loss on trade receivables 314 – 232 –
  Write-off of inventories – 7 – –
  Share of results of associates and
  joint venture 16 (433) – –
  Gain on disposal of property, plant
   and equipment (258) (1,104) – –
  Gain on disposal of other investments (779) – – –
  Loss on unrealised foreign exchange – 5 – 5
  Interest income (1,996) (3,221) (259) (259)
  Finance costs 24,565 22,768 6,446 10,917

Operating profit before

  working capital changes 107,263 61,240 10,593 14,435

Changes in working capital

  Change in contract assets (15,597) 3,847 4,780 (28,986)
  Change in contract liabilities (8,409) (17,012) (16,868) 450
  Change in inventories and
   other contract costs (15,363) (67,514) – –
  Change in provision (2,976) 13,119 2,839 13,119
  Changes in receivables (53,840) (129,358) (55,943) 22,349
  Changes in payables 151,760 92,758 89,345 6,387

55,575 (104,160) 24,153 13,319

Cash generated from/(used in) operations 162,838 (42,920) 34,746 27,754

  Interest paid (37,257) (34,128) (6,446) (10,917)

  Interest received 1,996 330 259 259
  Dividend received – – – 247
  Tax refunded 192 – 20 –
  Tax paid (10,955) (7,540) (10) (10)

(46,024) (41,338) (6,177) (10,421)

Net cash from/(used in) operating activities 116,814 (84,258) 28,569 17,333

108
 ANNUAL REPORT 2019 · HO HUP CONSTRUCTION COMPANY BERHAD 197301000497 (14034-W)

STATEMENTS OF
CASH FLOWS
(cont’d)

Group Company
2019 2018 2019 2018
RM’000 RM’000 RM’000 RM’000

Cash Flows from Investing Activities

  Purchase of property, plant and
   equipment (Note 4(a)) (64,644) (147) (2,337) (4,031)
  Additions to inventories - land held
   for property development (4,000) (31) – –
  Proceeds from disposal of property, plant
   and equipment and investment properties 10,911 14,385 – 4
  Quarry development cost (801) (1,303) – –
  Net repayment from/(advances to)
   subisdiary companies – – 60,339 (589)
  Addition to investment in subsidiary
  companies – – (10) (2,000)
  Acquisition of other investment – (1,184) – –
  Proceeds from disposal of other investment 1,963 – – –
  Change in pledged deposits (5,791) (2,116) (3,963) 553
  Capital contribution by
   non-controlling interests – 45 – –

Net cash (used in)/from investing activities (62,362) 9,649 54,029 (6,063)

Cash Flows from Financing Activities

  Proceeds from private placement 17,433 – 17,433 –
  Proceeds from exercise of warrants – 15 – 15
  Drawdown of borrowings 12,775 117,337 – 14,416
  Drawdown of finance lease liabilities – 1,800 – 1,800
  Repayment of finance lease liabilities – (3,214) – (651)
  Drawdown of lease liabilities 265 – 265 –
  Repayment of lease liabilities (4,700) – (1,053) –
  Repayment of borrowings (21,029) (49,467) (76,433) (31,750)

Net cash from/(used in) financing activities 4,744 66,471 (59,788) (16,170)

Net increase/(decrease) in cash

  and cash equivalents 59,196 (8,138) 22,810 (4,900)
Exchange translation differences on
  cash and cash equivalents (92) (28) – (5)
Cash and cash equivalents at the
  beginning of the financial year (12,779) (4,613) (5,876) (971)

Cash and cash equivalents at the

  end of the financial year (Note 19) 46,325 (12,779) 16,934 (5,876)

The accompanying notes form an integral part of the financial statements.

109
 85
AR 20

STATEMENTS OF
Cash flows
For the financial year ended 31 December 2020

Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000

Cash Flows from Operating Activities

  Profit/(loss) before tax 76,467 76,083 (1,387) 3,987
  Adjustments for:
  Depreciation of:
   - property, plant and equipment 6,965 1,880 508 93
   - investment properties 2,605 1,608 – –
   - right-of-use assets 4,984 2,425 653 94
  Amortisation of:
   - intangible assets 9 15 – –
   - land rights 2,896 3,390 – –
   - quarrying rights 114 – – –
   - quarry development cost 900 – – –
   Impairment loss on trade receivables 2,332 314 – 232
   Reversal on impairment loss on
   trade receivables – – (73) –
   Property, plant and equipment writen off 75 – – –
   Share of results of joint ventures 13 16 – –
   Gain on disposal of:
   - property, plant and equipment (1,465) (258) – –
   - other investments (4,637) (779) – –
   Fair value gain on other investments (327) – – –
   Gain on lease modification (1) – – –
   Interest income (1,351) (1,996) (3,124) (259)
   Finance costs 23,140 24,565 6,184 6,446

  Operating profit before working capital

  changes 112,719 107,263 2,761 10,593

Changes in working capital:

  Change in contract assets 66,101 (15,597) 33,517 4,780
  Change in contract liabilities 29,446 (8,409) – (16,868)
  Change in inventories and other
   contract costs (72,070) (15,363) – –
  Change in provision – (2,976) – 2,839
  Changes in receivables (71,300) (53,840) (19,552) (55,943)
  Changes in payables (166,931) 151,760 173,531 89,345

(214,754) 55,575 187,496 24,153

Cash (used in)/generated from operations (102,035) 162,838 190,257 34,746

  Interest paid (31,145) (37,257) (6,184) (6,446)

  Interest received 1,351 1,996 3,124 259
  Tax refunded – 192 – 20
  Tax paid (5,288) (10,955) (165) (10)

(35,082) (46,024) (3,225) (6,177)

Net cash (used in)/from operating activities (137,117) 116,814 187,032 28,569
86
Ho Hup Construction Company Berhad
197301000497 (14034-W)

Statements of Cash Flows

For the financial year ended 31 December 2020
(Cont’d)

Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000

Cash Flows from Investing Activities

  Purchase of:
  - property, plant and equipment (Note 4(a)) (5,219) (64,644) (1,603) (2,337)
  - right of use assets (Note 9) (188) – – –
  Additions to inventories - land held
   for property development – (4,000) – –
  Proceeds from disposal of:
  - property, plant and equipment 1,978 10,911 – –
  Addition in quarry development cost – (801) – –
  Net repayment (advances to)/from
   subisdiary companies – – (211,496) 60,339
  Investment in subsidiary companies (46,064) – (46,075) (10)
  Change in pledged deposits 10,496 (5,791) 3,862 (3,963)

Net cash (used in)/from investing activities (36,692) (62,362) (255,312) 54,029

Cash Flows from Financing Activities

  Proceeds from private placement – 17,433 – 17,433
  Drawdown of borrowings 266,048 12,775 75,000 –
  Advance from subsidiary company – – 6,219 –
  Drawdown of lease liabilities – 265 – 265
  Repayment of lease liabilities (6,926) (4,700) (2,515) (1,053)
  Repayment of borrowings (104,272) (21,029) (18,263) (76,433)

Net cash from/(used in) financing activities 154,850 4,744 60,441 (59,788)

Net (decrease)/increase in cash and

  cash equivalents (18,959) 59,196 (7,839) 22,810
Exchange translation differences on
  cash and cash equivalents 330 (92) – –
Cash and cash equivalents at the
  beginning of the financial year 46,325 (12,779) 16,934 (5,876)

Cash and cash equivalents at the

  end of the financial year (Note 19) 27,696 46,325 9,095 16,934

The accompanying notes form an integral part of the financial statements.