Straco Corporation Limited

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Condensed Interim Financial Statements For The First Half Ended 30 June 2021

Financials Archive

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Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income

Income Statement

Condensed Interim Statement of Financial Position

Comprehensive Income Statement

Review of the performance


In the first half of FY2021, the Group generated sales of $21.86 million, significantly higher than the corresponding period in 1H2020 when the global COVID-19 pandemic adversely impacted on our Group. The two aquariums in China were temporarily closed for half of the 6 months period in 1H2020 and rides on Singapore Flyer were suspended for almost 6 months; initially due to a minor technical issue involving a spoke cable and subsequently due to the Singapore Government's "Circuit Breaker" order in April 2020. There were no temporary closures of our attractions in 1H2021, albeit operating with safe distancing and preventive measures and capacity restriction in accordance with the authorities' directive.

Overall visitation to all our attractions totalled 888,000 visitors for the half year, significantly higher than the corresponding period of 297,000 visitors in 1H2020.

Other income increased significantly over corresponding period, mainly due to the arbitration award for the insurance claim receivable amounting to $10.4 million (including interest and cost) being recognised by Singapore Flyer and higher income from concessionaire sales, offset by lower amounts received under the Singapore government's job support scheme and lower interest income.

Operational Results

Total Expenses (excluding finance cost) for 1H2021 was 20.29 million, an increase of 18.6% from 1H2010. Exchange gain of $1.09 million was recorded in this period, as Renminbi currency strengthened against the Singapore dollar in the current period compared to last year-end exchange rate. Depreciation and amortisation expenses increased, mainly due to the commencement of depreciation for the new Time Capsule at Singapore Flyer and Sperm Whale Exhibition zone at Underwater World Xiamen. Expenses such as cost of sales of retail and F&B, sales and marketing expenses, and utilities expenses were higher in the absence of temporary closures of our attractions as in 1H2020. Rental expense increased, mainly due to the much higher variable land rental payable at Shanghai Ocean Aquarium as revenue was significantly higher than 1H2020. Property and other taxes were $0.76 million in 1H2021, compared to a negative amount in 1H2020, as property tax was waived in 2020 and not accounted for in 1H2020, while a refund of property tax was received by Singapore Flyer arising from revision in 2018/2019 annual values in 1H2020.

Profit before tax was $14.59 million for 1H2021, compared to a loss before tax of $7.72 million recorded in 1H2020. Taking away the arbitration award and exchange gains recorded, profit before tax for this period would have been approximately $3.09 million.

Balance Sheet items

Trade and other receivables increased 264.7% from $3.89 million at 31 December 2020 to $14.2 million at 30 June 2021, due to the increase in trade receivables at our two aquariums, increase in tenants' dues from rental at Singapore Flyer, increase in other receivables arising from the arbitration award receivable and fixed deposits interest receivable recognized in the current period. The arbitration award was subsequently received in full in July 2021.

Other current assets increased 35.3% from $0.99 million at 31 December 2020 to $1.34 million at 30 June 2021, mainly due to increase in prepayment of insurance premiums at Singapore Flyer arising from the yearly renewal in May 2021, and increase in prepayments at Lixing Cable Car arising from yearly renewal of insurance in June 2021, renewal of yearly rental of ticketing booth at Hua Qing Palace, and prepayment of certain repair and maintenance works.

Reserves increased 27.6% from $14.83 million at 31 December 2020 to $18.93 million at 30 June 2021, mainly due to the translation gain of $3.97 million arising from the stronger RMB currency against SGD at the end of the current period compared to the end of last year; as well as the increase in share option reserves of $0.20 million during the period arising from share options granted in 2020; offset by increase in treasury shares of $0.07 million arising from the share buyback during the current period.

Deferred income decreased 33.3% from $0.16 million at 31 December 2020 to $0.11 million at 30 June 2021, due to the periodic recognition of deferred income to profit & loss in the current period.

Current tax liabilities increased 85.6% from $0.99 million at 31 December 2020 to $1.84 million at 30 June 2021, mainly due to the provision of income tax for the 2Q2021 profits generated by our China subsidiaries, offset by payment of 4Q2020 income taxes of China subsidiaries in the current period and instalment payment of YA2020 income tax at HQ.

Cash Flow Statement

The Group reported net cash generated of $6.75 million from operating activities for 1H2021, compared to net cash of $10.31 million used in 1H2020. Repayment of borrowings in 1H2021 amounted to $1.2 million, compared to $3.0 million in 1H2020, as Singapore Flyer has been granted reduced loan principal repayment of $0.2 million per month by DBS from January 2021, while the monthly $1.0 million of principal repayment was deferred last year from April 2020 till December 2020. Dividend of 1.0 cent per share for FY2020 was paid out to the Company's shareholders in the current period, upon the passing of resolution at the AGM held in April 2021, while no dividend was paid out in 1H2020, as the AGM for FY2019 was deferred due to the Covid-19 and therefore the final dividend in respect of FY2019 which was usually paid in May was delayed and paid in July 2020.

As at 30 June 2021, the Group's cash and cash equivalent balance amounted to $176.88 million.


The National Bureau of Statistics of China reported that China's gross domestic product ("GDP") saw double-digit growth of 12.7% year-on-year in the first half of 2021 as it continued to recover from the adverse impacts of the Covid-19 pandemic. Despite the uncertainties from the global spread of the pandemic and the unbalanced recovery domestically, it was reported that China's economy is expected to maintain the recovery trend in the second half of 2021, considering the supply-demand cycle, market confidence and increasingly strong domestic demand.

Singapore's economy grew strongly by 14.3% on a year-on-year basis in the second quarter of 2021, largely due to the low base in the second quarter of 2020 when GDP fell 13.3% due to the Circuit Breaker ("CB") measures implemented from 7 April to 1 June 2020. On the tourism sector, further delay in recovery in this sector is likely as international travel restrictions are likely to be lifted more slowly, amidst rising global infections and uncertainties over the spread of more contagious variants of the Covid-19.

As the Covid-19 situation remains uncertain with the more transmissible Delta variant in recent months, the Group will continue to monitor and assess the impact on its operations.