TIDMASPL

RNS Number : 5828N

Aseana Properties Limited

26 September 2023

26 September 2023

Aseana Properties Limited

("Aseana", the "Company" or, the "Group")

Half-Year Results for the Six Months Ended 30 June 2023

Aseana Properties Limited (LSE: ASPL), a property developer with investments in Malaysia listed on the Main Market of the London Stock Exchange, announces its unaudited half-year results for the six-month period ended 30 June 2023.

Operational highlights:

-- With the re-opening of the Malaysian borders to foreigners on 1 April 2022, the RuMa Hotel has achieved 58% occupancy in the first six months of 2023 and continues to improve its performance. Losses for the period ending 30 June 2023 were approximately RM 1.6 million due to a slower than expected recovery and costs driven by high inflation since 2022.

-- The RuMa Residences achieved approximately 71% sales to date based on sales completed of the 199 residential units. The Sale & Purchase agreements for the remaining 57 units have been signed and management expects completion by the first half of 2024.

-- In the first half of 2023, the occupancy rate at the Harbour Mall Sandakan was on target at above 95%; its financial performance through 30 June 2023 has exceeded expectations.

-- On 30 June 2023, the Group announced that it had entered into a binding conditional agreement to sell the Sandakan hotel asset and the Harbour Mall Sandakan for a gross consideration of MYR 165 million, completion of the transaction is subject to regulatory approval as required.

-- The Divestment Team has been actively seeking potential purchasers for other assets held by the Group.

Financial highlights:

   --     Other Income of US$6.5 million (H1 2022: US$4.0 million) 

-- Loss before tax of US$6.1 million (H1 2022: loss of US$12.5 million) which includes a foreign exchange loss of US$5.1 million due to the depreciation of the Malaysian Ringgit, in which much of the Group's assets were denominated in

   --     Loss after tax of US$5.9 million (H1 2022: loss of US$12.8 million) 
   --     Total comprehensive loss of US$4.3 million (H1 2022: loss of US$14.5 million) 

-- Net asset value of US$69.1 million (31 December 2022 (audited): US$73.2 million) or US$0.35 per share (31 December 2022 (audited): US$0.37 per share)

Commenting on the results, Nick Paris, Chairman of Aseana, said:

The first half results of 2023 reflect the continued challenging market conditions from factors such as the slow recovery from the negative impact of COVID-19 pandemic, the economic impacts from the conflict in Ukraine and monetary tightening across most central banks in the face of inflationary conditions. Although Malaysia re-opened its borders in April 2022, the tourism market faces a weak rebound with arrival numbers down roughly 1/3 compared with pre-pandemic levels. China, an important tourist market for Malaysia, removed its travel restrictions in January, but its arrival number remain weak because of China's economic slowdown and a lack of flight capacity in the early months of the year. The Company continues to focus on improving the operational performance of its assets, increasing their value and actively marketing the assets to potential buyers despite the macro challenges mentioned above and the illiquid nature of the assets.

For further information:

 
 Aseana Properties Limited   Tel: +44 7738 470550 
 Nick Paris (Chairman)       Email: nickparis@btinternet.com 
 
 Grant Thornton UK LLP       Tel: 020 7728 2578 
 Philip J Secrett            Email: philip.j.secrett@uk.gt.com 
 
 

Notes to Editors:

London-listed Aseana Properties Limited (LSE: ASPL) is a property developer with investments in Malaysia and is in the process of divesting its remaining assets.

CHAIRMAN'S STATEMENT

Introduction

I am pleased to report on the results of Aseana Properties Limited and its Group of companies for the six months ended 30 June 2023.

Interim Results for the Half Year ended 30 June 2023

Our interim results in this period continue to reflect the significant impact of the COVID-19 pandemic on our various operating businesses. Our operating revenues continued to decline and despite significant cost cutting initiatives, operating losses and cash outflows have been inevitable due largely to debt service payments. The loss for the period for Aseana for the half year decreased to US$5.9 million (H1 2022: US$12.8 million). As explained in the Financial Highlights, our net cash used in operating activities was US$7.0 million (H1 2022: US$0.4 million), and our cash balance at the end of the period was US$5.8 million (H1 2022: US$8.8 million) after further paydown of debt service. The loss which we are reporting for the six months ended 30 June 2023, has reduced our Net Asset Value per Share from 37 US cents, at 31 December 2022, to 35 US cents (30 June 2022: 40 US cents).

Our Business Focus and Recent Property Divestments

The business focus for the Group is to continue improving the operational performance of our remaining assets in order to preserve our cash balances thereby increasing the value of these assets in conjunction with the ongoing divestment process.

In addition, further sale discussions are underway on some of our remaining assets. Our aim continues to be to seek asset sales in a controlled, orderly and timely manner in order to pay down remaining debts and then return surplus sale proceeds to our shareholders. Due to the current difficult economic environment and the inherent nature of the remaining illiquid assets, the Board will remain open to assessing all options to meet our debt obligations.

Acknowledgements

I would like to take this opportunity to thank my colleagues on the Board and throughout our Group and our external advisors, bankers and service providers for their tireless efforts on behalf of the Group and its Shareholders.

Monica Lai was not re-elected as a Director at the Annual General Meeting of the Company on 30 May. On 25 August, the Board appointed Robert Minty as a Jersey based Director of the Company.

This has been another very challenging period in the corporate life of Aseana but with our recently announced divestments and the continuous efforts to sell the remaining assets, I believe that we are heading into the final stages of the life of the Company.

Thank you.

NICHOLAS JOHN PARIS

Chairman

25 September 2023

PROPERTY PORTFOLIO AS AT 30 JUNE 2023

 
 Project                               Type            Effective   Approximate 
                                                       Ownership         Gross 
                                                               *         Floor   Approximate 
                                                                          Area     Land Area 
                                                                        (sq m)        (sq m) 
----------------------------  ---------------------  -----------  ------------  ------------ 
 Completed projects 
----------------------------  ---------------------  -----------  ------------  ------------ 
 The RuMa Hotel and             Luxury residential 
  Residences                     tower and bespoke 
  Kuala Lumpur, Malaysia               hotel               70.0%        40,000         4,000 
----------------------------  ---------------------  -----------  ------------  ------------ 
                                   Retail lots, 
 Sandakan Harbour Square         hotel and retail 
  Sandakan, Sabah, Malaysia            mall               100.0%       126,000        48,000 
----------------------------  ---------------------  -----------  ------------  ------------ 
 Undeveloped projects 
----------------------------  ---------------------  -----------  ------------  ------------ 
                                   Land parcel 
                                   approved for 
                                future development 
 Kota Kinabalu Land                and services 
  Parcel                              reserve              80.0%           N/A       172,900 
----------------------------  ---------------------  -----------  ------------  ------------ 
 

* Shareholding as at 30 June 2023

N/A: Not available/ Not applicable

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHSED 30 JUNE 2023

 
                                              Unaudited    Unaudited        Audited 
                                             Six months   Six months           Year 
                                                  ended        ended          ended 
                                     Notes      30 June      30 June    31 December 
                                                   2023         2022           2022 
 Continuing activities                          US$'000      US$'000        US$'000 
 Revenue                               3             99            -            980 
 Cost of sales                         5          (100)            -          (640) 
----------------------------------  ------  -----------  -----------  ------------- 
 Gross (loss)/profit                                (1)            -            340 
 Other income                                     6,505        4,006         10,971 
 Administrative expenses                          (566)      (1,833)        (2,433) 
 Foreign exchange loss                 6        (5,150)      (2,703)        (1,695) 
 Loss on disposal of subsidiaries                     -      (3,752)              - 
 Gain on sale of discontinued 
  operations                                          -            -          2,702 
 Other operating expenses                       (6,537)      (7,524)       (26,085) 
----------------------------------  ------  -----------  -----------  ------------- 
 Operating loss                                 (5,749)     (11,806)       (16,200) 
                                            -----------  -----------  ------------- 
 Finance income                                   1,091          981          1,970 
 Finance costs                                  (1,446)      (1,718)        (3,344) 
                                            -----------  -----------  ------------- 
 Net finance costs                                (355)        (737)        (1,374) 
 Net loss before taxation                       (6,104)     (12,543)       (17,574) 
 Taxation                              7            196        (274)          (302) 
----------------------------------  ------  -----------  -----------  ------------- 
 Loss for the period/year                       (5,908)     (12,817)       (17,876) 
----------------------------------  ------  -----------  -----------  ------------- 
 

Other comprehensive income/(loss), net of tax

Items that are or may be reclassified subsequently to profit or loss

 
 Foreign currency translation 
  differences 
  for foreign operations                  1,623    (1,647)    (2,459) 
-------------------------------------  --------  ---------  --------- 
 Total other comprehensive 
  income/(loss) for the period/year       1,623    (1,647)    (2,459) 
-------------------------------------  --------  ---------  --------- 
 Total comprehensive loss 
  for the period/year                   (4,285)   (14,464)   (20,335) 
-------------------------------------  --------  ---------  --------- 
 
 
 Loss attributable to: 
 Equity holders of the parent 
  company                         (5,459)   (11,314)   (15,867) 
 Non-controlling interests          (449)    (1,503)    (2,009) 
-------------------------------  --------  ---------  --------- 
 Total                            (5,908)   (12,817)   (17,876) 
-------------------------------  --------  ---------  --------- 
 
 Total comprehensive loss 
  attributable to: 
 Equity holders of the parent 
  company                         (4,123)   (13,145)   (18,451) 
 Non-controlling interests          (162)    (1,319)    (1,884) 
-------------------------------  --------  ---------  --------- 
 Total                            (4,285)   (14,464)   (20,335) 
-------------------------------  --------  ---------  --------- 
 
 
 Loss per share 
  Basic and diluted (US cents)     (2.75)   (5.69)   (7.99) 
--------------------------------  -------  -------  ------- 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2023

 
                                          Unaudited     Unaudited        Audited 
                                              As at         As at          As at 
                                  Notes     30 June       30 June    31 December 
                                               2023          2022           2022 
                                            US$'000       US$'000        US$'000 
 Non-current assets 
 Property, plant and equipment                  151            82             79 
 Intangible assets                              578           578            578 
 Right of use                                     -             -              - 
 Deferred tax assets                          4,445         4,707          4,723 
-------------------------------  ------  ----------  ------------  ------------- 
 Total non-current assets                     5,174         5,367          5,380 
-------------------------------  ------  ----------  ------------  ------------- 
 
 Current assets 
 Inventories                                124,783       140,344        132,573 
 Trade and other receivables                 12,522        13,252         11,575 
 Prepayments                                    368           498            376 
 Current tax assets                             200           476             10 
 Assets held for sale                             -             -              - 
 Cash and cash equivalents                    5,818         8,849          7,259 
-------------------------------  ------  ----------  ------------  ------------- 
 Total current assets                       143,691       163,419        151,793 
-------------------------------  ------  ----------  ------------  ------------- 
 
 TOTAL ASSETS                               148,865       168,786        157,173 
-------------------------------  ------  ----------  ------------  ------------- 
 
 Equity 
 Share capital                               10,601        10,601         10,601 
 Share premium                              208,925       208,925        208,925 
 Capital redemption reserve                   1,899         1,899          1,899 
 Translation reserve                       (24,100)      (24,683)       (25,436) 
 Accumulated losses                       (128,240)     (117,229)      (122,781) 
-------------------------------  ------  ----------  ------------  ------------- 
 Shareholders' equity                        69,085        79,513         73,208 
 Non-controlling interests                  (5,566)       (3,871)        (5,404) 
-------------------------------  ------  ----------  ------------  ------------- 
 Total equity                                63,519        75,642         67,804 
-------------------------------  ------  ----------  ------------  ------------- 
 
 Non-current liabilities 
 Trade and other payables                    34,292        36,246         36,440 
 Total non-current liabilities               34,292        36,246         36,440 
-------------------------------  ------  ----------  ------------  ------------- 
 
 Current liabilities 
 Trade and other payables                    18,877        22,986         18,089 
 Amount due to non-controlling 
  interests                                   1,860         1,169          1,981 
 Loans and borrowings               9         1,507         1,589          1,595 
 Medium term notes                 10        28,810        31,154         31,264 
 Total current liabilities                   51,054        56,898         52,929 
-------------------------------  ------  ----------  ------------  ------------- 
 
 Total liabilities                           85,346        93,144         89,369 
-------------------------------  ------  ----------  ------------  ------------- 
 
 TOTAL EQUITY AND LIABILITIES               148,865       168,786        157,173 
-------------------------------  ------  ----------  ------------  ------------- 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHSED 30 JUNE 2023 - UNAUDITED

 
                                                                                                      Total 
                                                                                                     Equity 
                                                                                               Attributable 
                                                                                                  to Equity 
                  Redeemable                             Capital                                    Holders          Non- 
                    Ordinary   Management     Share   Redemption   Translation   Accumulated         of the   Controlling      Total 
                      Shares       Shares   Premium      Reserve       Reserve        Losses         Parent     Interests     Equity 
                     US$'000      US$'000   US$'000      US$'000       US$'000       US$'000        US$'000       US$'000    US$'000 
---------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 At 1 January 
  2023                10,601            -   208,925        1,899      (25,436)     (122,781)       (73,208)       (5,404)   (67,804) 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Loss for the 
  period                   -            -         -            -             -       (5,459)        (5,459)         (449)    (5,908) 
 Total other 
  comprehensive 
  loss                     -            -         -            -         1,336             -          1,336           287      1,623 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Total 
  comprehensive 
  loss                     -            -         -            -         1,336       (5,459)        (4,123)         (162)    (4,285) 
 Disposal of 
 subsidiaries              -            -         -            -             -             -              -             -          - 
---------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Shareholders' 
  equity at 
  30 June 2023        10,601           -#   208,925        1,899      (24,100)     (128,240)         69,085       (5,566)     63,519 
===============  ===========  ===========  ========  ===========  ============  ============  =============  ============  ========= 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONT'D)

FOR THE SIX MONTHSED 30 JUNE 2022 - UNAUDITED

 
                                                                                                      Total 
                                                                                                     Equity 
                                                                                               Attributable 
                                                                                                  to Equity 
                  Redeemable                             Capital                                    Holders          Non- 
                    Ordinary   Management     Share   Redemption   Translation   Accumulated         of the   Controlling      Total 
                      Shares       Shares   Premium      Reserve       Reserve        Losses         Parent     Interests     Equity 
                     US$'000      US$'000   US$'000      US$'000       US$'000       US$'000        US$'000       US$'000    US$'000 
---------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 At 1 January 
  2022 as 
  originally 
  presented           10,601            -   208,925        1,899      (22,852)     (105,915)         92,658       (1,678)     90,980 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Correction or 
  error (net 
  of tax)                  -            -         -            -             -         (999)          (999)         (968)    (1,967) 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 As at 1 
  January 2022 
  (restated)          10,601           -#   208,925        1,899      (22,852)     (106,914)         91,659       (2,646)     89,013 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Loss for the 
  period                   -            -         -            -             -      (11,314)       (11,314)       (1,503)   (12,817) 
 Total other 
  comprehensive 
  loss                     -            -         -            -       (1,831)             -        (1,831)           184    (1,647) 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Total 
  comprehensive 
  loss                     -            -         -            -       (1,831)      (11,314)       (13,145)       (1,319)   (14,464) 
 Disposal of 
  subsidiaries             -            -         -            -             -             -              -         (874)      (874) 
---------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Shareholders' 
  equity at 
  30 June 2022        10,601           -#   208,925        1,899      (24,683)     (118,228)         78,514       (4,839)     73,675 
---------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 
 At 30 June 
  2022 as 
  originally 
  presented           10,601           -#   208,925        1,899      (24,683)     (117,229)         79,513       (3,871)     75,642 
---------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Correction or 
  error (net 
  of tax)                  -            -         -            -             -         (999)          (999)         (968)    (1,967) 
---------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Shareholders' 
  equity at 
  30 June 2022 
  (restated)          10,601           -#   208,925        1,899      (24,683)     (118,228)         78,514       (4,839)     73,675 
===============  ===========  ===========  ========  ===========  ============  ============  =============  ============  ========= 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONT'D)

For the year ended 31 December 2022 - audited

 
                                                                                                        Total 
                                                                                                       Equity 
                                                                                                 Attributable 
                                                                                                    to Equity 
                    Redeemable                             Capital                                    Holders          Non- 
                      Ordinary   Management     Share   Redemption   Translation   Accumulated         of the   Controlling      Total 
                        Shares       Shares   Premium      Reserve       Reserve        Losses         Parent     Interests     Equity 
 Consolidated          US$'000      US$'000   US$'000      US$'000       US$'000       US$'000        US$'000       US$'000    US$'000 
-----------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 At 1 January 
  2021                  10,601           -#   208,925        1,899      (19,655)     (100,433)        101,337       (6,877)     94,460 
 Correction or 
  error (net 
  of tax)                    -            -         -            -             -         (727)          (727)         (312)    (1,039) 
-----------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 As at the 
  beginning of 
  the 
  financial year 
  (restated)            10,601           -#   208,925        1,899      (19,655)     (101,160)        100,610       (7,189)     93,421 
 Changes in 
  ownership 
  interests 
  in subsidiaries                                                                                                     (341)      (341) 
 Non-controlling 
  interests 
  contribution               -            -         -            -             -             -              -         8,519      8,519 
                   -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Loss for the 
  year (restated 
  *)                         -            -         -            -             -       (5,754)        (5,754)       (3,248)    (9,002) 
 Total other 
  comprehensive 
  loss for the 
  year                       -            -         -            -       (3,197)             -        (3,197)         (387)    (3,584) 
                   -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Total 
  comprehensive 
  loss 
  for the year 
  (restated *)               -            -         -            -       (3,197)       (5,754)       (10,210)       (3,635)   (12,586) 
 Disposal of 
 subsidiaries                -            -         -            -                           -                            - 
-----------------  ----------- 
 As at 31 
  December 2021/ 
  1 January 2022        10,601           -#   208,925        1,899      (22,852)     (106,914)         91,659       (2,646)     89,013 
-----------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 
 As at 31 
  December 2021 / 
  1 January 2022 
  as originally 
  presented             10,601           -#   208,925        1,899      (22,852)     (105,915)         92,658       (1,678)     90,980 
 Correction or 
  error (net 
  of tax)                    -            -         -            -             -         (999)          (999)         (968)    (1,967) 
-----------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 As at 31 
  December 2021 
  / 
  1 January 2022 
  (restated 
  *)                    10,601           -#   208,925        1,899      (22,852)     (106,914)         91,659       (2,646)     89,013 
 
 Loss for the 
  year                       -            -         -            -             -      (15,867)       (15,867)       (2,009)   (17,876) 
 Total other 
  comprehensive 
  loss for the 
  year                       -            -         -            -       (2,584)             -        (2,584)           125    (2,459) 
                   -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Total 
  comprehensive 
  loss 
  for the year               -            -         -            -       (2,584)      (15,867)       (18,451)       (1,884)   (20,335) 
 Sale of 
  discontinued 
  operations                 -            -         -            -             -             -              -         (874)      (874) 
-----------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Shareholders' 
  equity at 
  31 December 
  2022                  10,601           -#   208,925        1,899      (25,436)     (122,781)         73,208       (5,404)     67,804 
=================  ===========  ===========  ========  ===========  ============  ============  =============  ============  ========= 
 

# Represents 2 management shares at US$0.05 each

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHSED 30 JUNE 2023

 
                                              Unaudited    Unaudited        Audited 
                                             Six months   Six months           Year 
                                                  ended        ended          ended 
                                                30 June      30 June    31 December 
                                                   2023         2022           2022 
                                                US$'000      US$'000        US$'000 
 
 Cash Flows from Operating Activities 
 Loss before taxation                           (6,104)     (12,543)       (17,574) 
 Impairment of amount due from a 
  related party                                       -            -          2,755 
 Impairment of inventory                              -            -          8,620 
 Finance income                                 (1,091)        (981)        (1,970) 
 Finance costs                                    1,446        1,718          3,344 
 Loss on disposal of subsidiaries                     -        3,752        (2,702) 
 Unrealised foreign exchange gain/(loss)          5,354        2,650          1,688 
 Depreciation of property, plant 
  and equipment and right-of-use asset               12           30             60 
 Operating (loss)/profit before 
  changes in working capital                      (383)      (5,374)        (5,779) 
 Changes in working capital: 
 Decrease/(increase) in inventories                 265        1,643        (1,671) 
 (Increase)/decrease in trade and 
  other receivables and prepayments               1,615        (441)         15,985 
 Increase/(decrease) in trade and 
  other payables                                (5,648)        5,469        (7,448) 
------------------------------------------  -----------  -----------  ------------- 
 Cash generated from/(used in) operations       (4,151)        1,297          1,087 
 Interest paid                                  (2,880)      (1,715)        (6,034) 
 Tax paid                                            21          (3)            428 
------------------------------------------  -----------  -----------  ------------- 
 
 Net cash used in operating activities          (7,010)        (421)        (4,519) 
------------------------------------------  -----------  -----------  ------------- 
 
 Cash Flows (used in)/from Investing 
  Activities 
 Purchase of property, plant and 
  equipment                                        (88)         (12)           (39) 
 Proceeds from disposal of subsidiaries               -       10,045         10,045 
 Finance income received                          (371)          981            508 
------------------------------------------  -----------  -----------  ------------- 
 
 Net cash (used in)/from investing 
  activities                                      (459)       11,014         10,514 
------------------------------------------  -----------  -----------  ------------- 
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONT'D)

FOR THE SIX MONTHSED 30 JUNE 2023

 
                                              Unaudited    Unaudited        Audited 
                                             Six months   Six months           Year 
                                                  ended        ended          ended 
                                                   June      30 June    31 December 
                                                   2023         2022           2022 
                                                US$'000      US$'000        US$'000 
 
 Cash Flows from Financing Activities 
 Advances (from)/to non-controlling 
  interests                                           -        (697)            129 
 Repayment of finance lease liabilities               -        (155)           (14) 
 Repayment of loans and borrowings                (611)      (9,133)        (8,884) 
 
 Net cash used in financing activities            (611)      (9,985)        (8,769) 
------------------------------------------  -----------  -----------  ------------- 
 
 Net changes in cash and cash equivalents 
  during the period/year                        (8,080)          608        (2,774) 
 Effect of changes in exchange rates              6,639        1,127          2,919 
 Cash and cash equivalents at the 
  beginning of the period/year                    7,259        7,114          7,114 
------------------------------------------  -----------  -----------  ------------- 
 Cash and cash equivalents at the 
  end of the period/year (i)                      5,818        8,849          7,259 
------------------------------------------  -----------  -----------  ------------- 
 
   (i)      Cash and Cash Equivalents 

Cash and cash equivalents included in the consolidated statement of cash flows comprise the following consolidated statement of financial position amounts:

 
                                 Unaudited    Unaudited        Audited 
                                Six months   Six months           Year 
                                     ended        ended          ended 
                                      June      30 June    31 December 
                                      2023         2022           2022 
                                   US$'000      US$'000        US$'000 
 
 Cash and bank balances              3,500        6,405          4,786 
 Short term bank deposits            2,318        2,444          2,473 
-----------------------------  -----------  -----------  ------------- 
                                     5,818        8,849          7,259 
 Less: Deposits pledged (ii)       (2,327)      (2,312)        (2,473) 
-----------------------------  -----------  -----------  ------------- 
 Cash and cash equivalents           3,491        6,537          4,786 
-----------------------------  -----------  -----------  ------------- 
 

(ii) Included in short term bank deposits and cash and bank balance is US$ 2,327,000 (31 December 2022: US$ 2,473,000 ; 30 June 2022: US$2,312,000) pledged for loans and borrowings and Medium Term Notes of the Group.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHSED 30 JUNE 2023

   1        GENERAL INFORMATION 

The principal activities of the Group are the sale of development land and the operation and sale of hotels, and a shopping mall in Malaysia.

   2        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
   2.1     BASIS OF PREPARATION 

The interim condensed consolidated financial statements for the six months ended 30 June 2023 have been prepared in accordance with IAS 34, Interim Financial Reporting.

The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2022 which have been prepared in accordance with IFRS.

Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings.

The interim results have not been audited nor reviewed and do not constitute statutory financial statements.

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2022 as described in those annual financial statements.

The interim report and financial statements were approved by the Board of Directors on 25 September 2023.

   3        SEGMENTAL INFORMATION 

Segmental information represents the level at which financial information is reported to the Board of Directors, being the chief operating decision makers as defined in IFRS 8. The Directors determine the operating segments based on reports reviewed and used by their staff for strategic decision making and resource allocations. For management purposes, the Group is organised into project units.

The Group's reportable operating segments are as follows:

   (i)       Investment Holding Companies - investing activities; 
   (ii)      Ireka Land Sdn. Bhd. - developed Tiffani ("Tiffani") by i-ZEN; 

(iii) ICSD Ventures Sdn. Bhd. - owns and operates the Harbour Mall Sandakan ("HMS") and the Sandakan hotel asset ("SHA", formerly Four Points by Sheraton Sandakan Hotel);

   (iv)     Amatir Resources Sdn. Bhd. - developed the SENI Mont' Kiara ("SENI"); 
   (v)      The RuMa Hotel KL Sdn. Bhd. - operates the RuMa Hotel; and 
   (vi)     Urban DNA Sdn. Bhd. - developed and owns the RuMa Hotel and Residences ("The RuMa") 

Other non-reportable segments comprise the Group's other development projects. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2023 and 2022.

Information regarding the operations of each reportable segment is included below. The Board of Directors monitors the operating results of each segment for the purpose of performance assessments and making decisions on resource allocation. Performance is based on segment gross profit/(loss) and profit/(loss) before taxation, which the Directors believes are the most relevant in evaluating the results relative to other entities in the industry. Segment assets presented inclusive of inter-segment balances and inter-segment pricing is determined on an arm's length basis.

The Group's revenue generating development projects are located in Malaysia.

   3        SEGMENTAL INFORMATION (CONT'D) 

Operating Segments ended 30 June 2023 - Unaudited

 
                       Investment        Ireka                                        The RuMa        Urban 
                          Holding    Land Sdn.   ICSD Ventures   Amatir Resources     Hotel KL          DNA 
                        Companies         Bhd.       Sdn. Bhd.          Sdn. Bhd.    Sdn. Bhd.    Sdn. Bhd.      Total 
                          US$'000      US$'000         US$'000            US$'000      US$'000      US$'000    US$'000 
--------------------  -----------  -----------  --------------  -----------------  -----------  -----------  --------- 
 Segment 
  (loss)/profit 
  before 
  taxation                  (129)        (968)              40            (2,518)        (362)        (841)    (4,778) 
====================  ===========  ===========  ==============  =================  ===========  ===========  ========= 
 Included in the 
 measure 
 of segment 
 (loss)/profit 
 are: 
 Revenue                        -            -               -                  -            -           99         99 
 Cost of sales                  -            -               -                  -            -        (100)      (100) 
 Revenue from hotel 
  operations                    -            -               -                  -        5,198            -      5,198 
 Revenue from mall 
  operations                    -            -           1,171                  -            -            -      1,171 
 Expenses from hotel 
  operations                    -            -           (170)                  -      (4,461)            -    (4,631) 
 Expenses from mall 
  operations                    -            -           (618)                  -            -            -      (618) 
 Depreciation of 
  property, 
  plant and 
  equipment                     -            -             (7)                  -          (5)            -       (12) 
 Finance costs                  -            -           (484)              (102)            -        (980)    (1,566) 
 Finance income             1,001            -              30                179            -            0      1,210 
====================  ===========  ===========  ==============  =================  ===========  ===========  ========= 
 Segment assets             8,598           59          44,249              1,226          703       85,021    139,856 
====================  ===========  ===========  ==============  =================  ===========  ===========  ========= 
 Segment liabilities          495            3           1,174              2,765        6,521       43,383     54,341 
====================  ===========  ===========  ==============  =================  ===========  ===========  ========= 
 
   3        SEGMENTAL INFORMATION (CONT'D) 

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

 
 Profit or loss                        US$'000 
------------------------------------  -------- 
 Total loss for reportable segments    (4,778) 
 Other non-reportable segments         (1,327) 
 Depreciation                                - 
 Finance income                            120 
 Finance cost                            (120) 
 Others                                      - 
 
 Consolidated loss before taxation     (6,104) 
====================================  ======== 
 
 
                                                                                                      Addition 
                                                  Finance   Finance   Segment        Segment    to non-current 
 US$'000                 Revenue   Depreciation     costs    income    assets    liabilities            assets 
----------------------  --------  -------------  --------  --------  --------  -------------  ---------------- 
 Total reportable 
  segment                     99           (12)   (1,566)     1,210   139,856         54,341                88 
 Other non-reportable 
  segments                     -              -       120     (119)     9,009         31,005                -- 
----------------------  --------  -------------  --------  --------  --------  -------------  ---------------- 
 Consolidated total           99           (12)   (1,446)     1,091   148,865         85,346                88 
======================  ========  =============  ========  ========  ========  =============  ================ 
 
   3        SEGMENTAL INFORMATION (CONT'D) 

Operating Segments ended 30 June 2022 - Unaudited

 
                       Investment        Ireka                                        The RuMa        Urban 
                          Holding    Land Sdn.   ICSD Ventures   Amatir Resources     Hotel KL          DNA 
                        Companies         Bhd.       Sdn. Bhd.          Sdn. Bhd.    Sdn. Bhd.    Sdn. Bhd.      Total 
                          US$'000      US$'000         US$'000            US$'000      US$'000      US$'000    US$'000 
--------------------  -----------  -----------  --------------  -----------------  -----------  -----------  --------- 
             Segment 
       (loss)/profit 
              before 
            taxation      (5,348)          (7)           (219)                187      (3,784)      (1,222)   (10,393) 
====================  ===========  ===========  ==============  =================  ===========  ===========  ========= 
 Included in the 
 measure 
 of segment 
 (loss)/profit 
 are: 
 Revenue                        -            -               -                  -            -            -          - 
 Cost of sales                  -            -               -                  -            -            -          - 
 Revenue from hotel 
  operations                    -            -               -                  -        2,721            -      2,721 
 Revenue from mall 
  operations                    -            -           1,084                  -            -            -      1,084 
 Expenses from hotel 
  operations                    -            -           (127)                  -      (3,136)            -    (3,263) 
 Expenses from mall 
  operations                    -            -           (636)                  -            -            -      (636) 
 Depreciation of 
  property, 
  plant and 
  equipment                     -            -             (4)                  -         (26)            -       (30) 
 Finance costs                  -            -           (623)               (98)            -        (976)    (1,697) 
 Finance income               682            -              22                255            -            -        959 
====================  ===========  ===========  ==============  =================  ===========  ===========  ========= 
 Segment assets             9,647           60          56,175              2,819          891       89,676    159,268 
====================  ===========  ===========  ==============  =================  ===========  ===========  ========= 
 Segment liabilities          418            3           1,599              2,556        5,647       50,266     60,489 
====================  ===========  ===========  ==============  =================  ===========  ===========  ========= 
 
   3        SEGMENTAL INFORMATION (CONT'D) 

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

 
 Profit or loss                         US$'000 
------------------------------------  --------- 
 Total loss for reportable segments    (10,393) 
 Other non-reportable segments          (2,107) 
 Depreciation                                 - 
 Finance income                              22 
 Finance cost                                 - 
 Others                                    (65) 
 
 Consolidated loss before taxation     (12,543) 
====================================  ========= 
 
 
                                                                                                       Addition 
                                                   Finance   Finance   Segment        Segment    to non-current 
 US$'000                  Revenue   Depreciation     costs    income    assets    liabilities            assets 
----------------------  ---------  -------------  --------  --------  --------  -------------  ---------------- 
 Total reportable 
  segment                       -           (30)   (1,696)       959   159,268         60,489                12 
 Other non-reportable 
  segments                      -              -      (22)        22     9,518         32,655                 - 
----------------------  ---------  -------------  --------  --------  --------  -------------  ---------------- 
 Consolidated total             -           (30)   (1,718)       981   168,786         93,144                12 
======================  =========  =============  ========  ========  ========  =============  ================ 
 
   3        SEGMENTAL INFORMATION (CONT'D) 

Operating Segments - Year ended 31 December 2022 - Audited

 
                        Investment                                         Amatir     The RuMa        Urban 
                           Holding   Ireka Land   ICSD Ventures         Resources     Hotel KL          DNA 
                         Companies    Sdn. Bhd.       Sdn. Bhd.         Sdn. Bhd.    Sdn. Bhd.    Sdn. Bhd.      Total 
                           US$'000      US$'000         US$'000           US$'000      US$'000      US$'000    US$'000 
----------------  ----------------  -----------  --------------  ----------------  -----------  -----------  --------- 
 Segment 
  (loss)/profit 
  before 
  taxation                     826          (5)         (9,061)           (1,789)      (1,792)      (4,898)   (16,719) 
================  ================  ===========  ==============  ================  ===========  ===========  ========= 
 Included in the 
 measure 
 of segment 
 (loss)/profit 
 are: 
 Revenue                         -            -               -                 -            -          980        980 
 Other income 
  from hotel 
  operations                     -            -               -                 -        8,169            -      8,169 
 Other income 
  from mall 
  operations                     -            -           2,098                 -            -            -      2,098 
 Other income 
 from hospital 
 operations                      -            -               -                 -            -            -          - 
 Expenses from 
  hotel 
  operations                     -            -           (310)                 -      (9,859)            -   (10,169) 
 Expenses from 
  mall 
  operations                     -            -         (1,251)                 -            -            -    (1,251) 
 Expenses from 
 hospital 
 operations                      -            -               -                 -            -            -          - 
 Depreciation of 
  property, 
  plant and 
  equipment                      -            -            (10)                 -         (50)            -       (60) 
 Finance costs                   -            -         (1,172)             (192)            -      (1,933)    (3,297) 
 Finance income              1,462            -              47               413            -            1      1,923 
================  ================  ===========  ==============  ================  ===========  ===========  ========= 
 Segment assets              9,331           60          46,882               704          965       89,571    147,513 
================  ================  ===========  ==============  ================  ===========  ===========  ========= 
 Segment 
  liabilities                  459            3           1,294             2,511        6,758       45,205     56,230 
================  ================  ===========  ==============  ================  ===========  ===========  ========= 
 
   3        SEGMENTAL INFORMATION (CONT'D) 

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

 
 Profit or loss                         US$'000 
------------------------------------  --------- 
 Total loss for reportable segments    (16,719) 
 Other non-reportable segments            (856) 
 Depreciation                                 1 
 Finance income                            (47) 
 Finance cost                                47 
 Others                                       - 
 
 Consolidated loss before taxation     (16,719) 
====================================  ========= 
 
 
                                                                                                      Addition 
                                                  Finance   Finance   Segment        Segment    to non-current 
 US$'000                 Revenue   Depreciation     costs    income    assets    liabilities            assets 
----------------------  --------  -------------  --------  --------  --------  -------------  ---------------- 
 Total reportable 
  segment                    980           (60)   (3,297)     1,923   147,513         56,230                39 
 Other non-reportable 
  segments                     -              1      (47)        47     9,660         33,139                 - 
----------------------  --------  -------------  --------  --------  --------  -------------  ---------------- 
 Consolidated total          980           (59)   (3,344)     1,970   157,173         89,369                39 
======================  ========  =============  ========  ========  ========  =============  ================ 
 
   3        SEGMENTAL INFORMATION (CONT'D) 

Geographical Information - six months ended 30 June 2023 - Unaudited

 
                          Malaysia 
                           US$'000 
--------------------     --------- 
 Revenue                        99 
 Non-current assets          5,174 
=======================  ========= 
 

Geographical Information - six months ended 30 June 2022 - Unaudited

 
                          Malaysia 
                           US$'000 
--------------------     --------- 
 Revenue                         - 
 Non-current assets          5,367 
=======================  ========= 
 

Geographical Information - year ended 31 December 2022 - Audited

 
                              Malaysia 
                               US$'000 
--------------------    ---  --------- 
 Revenue                  -        980 
 Non-current assets       -      5,380 
======================       ========= 
 

In the financial period/year ended 30 June 202 3 ; 30 June 202 2 ; 31 December 202 2 , no single customer exceeded 10% of the Group's total revenue.

   4        SEASONALITY 

The Group's business operations were not materially affected by seasonal factors for the period under review.

   5        COST OF SALES 
 
                               Unaudited    Unaudited        Audited 
                              Six months   Six months           Year 
                                   ended        ended          ended 
                                 30 June      30 June    31 December 
                                    2023        202 2          202 2 
 
                                 US$'000      US$'000        US$'000 
 Direct costs attributable 
  to: 
 Completed Units                     100            -            640 
---------------------------  -----------  -----------  ------------- 
 
   6        FOREIGN EXCHANGE (LOSS)/GAIN 
 
                                  Unaudited    Unaudited        Audited 
                                 Six months   Six months           Year 
                                      ended        ended          ended 
                                    30 June      30 June    31 December 
                                       2023        202 2          202 2 
 
                                    US$'000      US$'000        US$'000 
------------------------------  -----------  -----------  ------------- 
 Foreign exchange gain/(loss) 
  comprises: 
 Realised foreign exchange 
  gain/(loss)                           204         (53)            (6) 
 Unrealised foreign exchange 
  loss                              (5,354)      (2,650)        (1,689) 
                                    (5,149)      (2,703)        (1,695) 
------------------------------  -----------  -----------  ------------- 
 
   7        TAXATION 
 
                                  Unaudited    Unaudited         Audited 
                                 Six months   Six months            Year 
                                      ended        ended           ended 
                                    30 June      30 June     31 December 
                                       2023        202 2           202 2 
 
                                    US$'000      US$'000         US$'000 
 Current tax (credit)/expense         (196)          274             302 
 Deferred tax expense                     -            -               - 
------------------------------  -----------  -----------  -------------- 
 Total tax expense/(income) 
  for the period/year                 (196)          274             302 
------------------------------  -----------  -----------  -------------- 
 
   7        Taxation (Cont'd) 

The numerical reconciliation between the income tax expense and the product of accounting results multiplied by the applicable tax rate is computed as follows:

 
                                        Unaudited    Unaudited        Audited 
                                       Six months   Six months           Year 
                                            ended        ended          ended 
                                          30 June      30 June    31 December 
                                             2023        202 2          202 2 
 
                                          US$'000      US$'000        US$'000 
------------------------------------  -----------  -----------  ------------- 
 
 Net loss before taxation                 (6,104)     (12,543)       (17,574) 
------------------------------------  -----------  -----------  ------------- 
 
 Income tax at rate of 24%                (1,465)      (3,010)        (4,218) 
 
 Add : 
 Tax effect of expenses not 
  deductible in determining 
  taxable profit                            1,419        2,486          2,379 
 Current year losses and other 
  tax benefits for which no 
  deferred tax asset was recognised           618          590          3,670 
 Less : 
 Tax effect of income not taxable 
  in determining taxable profit             (572)         (16)        (1,746) 
 (Under)/over provision in 
  respect of prior period/year              (196)          224            217 
------------------------------------  -----------  -----------  ------------- 
 Total tax(credit)/expense 
  for the period/year                       (196)          274            302 
------------------------------------  -----------  -----------  ------------- 
 

The applicable corporate tax rate in Malaysia is 24%.

The Company is treated as a tax resident of Jersey for the purpose of Jersey tax laws and is subject to a tax rate of 0%.

The Company has been registered as an International Services Entity so it does not have to charge or pay local Goods and Services Tax. The cost for this registration is GBP300 per annum.

   8        LOSS PER SHARE 

Basic and diluted loss per ordinary share

The calculation of basic and diluted loss per ordinary share for the period/year ended was based on the loss attributable to equity holders of the parent and a weighted average number of ordinary shares outstanding, calculated as below:

 
                                               Unaudited            Unaudited            Audited 
                                              Six months           Six months               Year 
                                                   ended                ended              ended 
                                                 30 June              30 June        31 December 
 
                                                    2023                202 2              202 2 
 Loss attributable to equity 
  holders of the parent ( US$'000)               (5,459)             (11,314)           (15,867) 
 Weighted average number of 
  shares                                     198,691,000          198,691,000        198,691,000 
-----------------------------------  -------------------  -------------------  ----------------- 
 
 Loss per share 
 Basic and diluted (US cents)                     (2.75)               (5.69)             (7.99) 
-----------------------------------  -------------------  -------------------  ----------------- 
 
   9        LOANS AND BORROWINGS 
 
                               Unaudited   Unaudited        Audited 
                                   As at       As at          As at 
                                 30 June     30 June    31 December 
                                    2023        2022           2022 
 
                                 US$'000     US$'000        US$'000 
 Current 
 Bank loans                        1,507       1,589          1,595 
 Finance lease liabilities             -           -              - 
---------------------------   ----------  ----------  ------------- 
                                   1,507       1,589          1,595 
 ---------------------------  ----------  ----------  ------------- 
 

The effective interest rates on the bank loans and finance lease arrangement for the period is 12% (30 June 2022: 12%; 31 December 202 2 : 12%) per annum respectively.

Borrowings are denominated in Malaysian Ringgit.

Bank loans are secured by land held for property development, work-in-progress, operating assets of the Group, pledged deposits and some by the corporate guarantee of the Company.

   9        LOANS AND BORROWINGS (CONT'D) 

Reconciliation of movement of loans and borrowings to cash flows arising from financing activities:

 
                As at 1                             Foreign   As at 30 
                January   Drawdown   Repayment     exchange       June 
                   2023    of loan     of loan    movements       2023 
 Unaudited      US$'000    US$'000     US$'000      US$'000    US$'000 
------------  ---------  ---------  ----------  -----------  --------- 
 Bank loans       1,595          -           -         (88)      1,507 
              =========  =========  ==========  ===========  ========= 
 
 
                As at 1                             Foreign   As at 30 
                January   Drawdown   Repayment     exchange       June 
                   2022    of loan     of loan    movements       2022 
 Unaudited      US$'000    US$'000     US$'000      US$'000    US$'000 
------------  ---------  ---------  ----------  -----------  --------- 
 Bank loans       1,681          -           -         (92)      1,589 
              =========  =========  ==========  ===========  ========= 
 
 
                As at 1                             Foreign    As at 31 
                January   Drawdown   Repayment     exchange    December 
                  202 2    of loan     of loan    movements       202 2 
 Audited        US$'000    US$'000     US$'000      US$'000     US$'000 
------------  ---------  ---------  ----------  -----------  ---------- 
 Bank loans       1,681          -           -         (86)       1,595 
              =========  =========  ==========  ===========  ========== 
 
 
                      As at 1   Repayment                  Foreign   As at 30 
                      January    of lease    Interest     exchange       June 
                         2023     payment    expenses    movements       2023 
 Unaudited            US$'000     US$'000     US$'000      US$'000    US$'000 
------------------  ---------  ----------  ----------  -----------  --------- 
 Lease Liabilities          -           -           -            -          - 
                    =========  ==========  ==========  ===========  ========= 
 
 
                       As at 1   Repayment                  Foreign   As at 30 
                       January    of lease    Interest     exchange       June 
                         202 2     payment    expenses    movements       2022 
 Unaudited             US$'000     US$'000     US$'000      US$'000    US$'000 
-------------------  ---------  ----------  ----------  -----------  --------- 
 Lease Liabilities          14        (13)           -          (1)          - 
                     =========  ==========  ==========  ===========  ========= 
 
 
                       As at 1   Repayment                  Foreign    As at 31 
                       January    of lease    Interest     exchange    December 
                          2022     payment    expenses    movements        2022 
 Audited               US$'000     US$'000     US$'000      US$'000     US$'000 
-------------------  ---------  ----------  ----------  -----------  ---------- 
 Lease Liabilities          14        (13)           -          (1)           - 
                     =========  ==========  ==========  ===========  ========== 
 
   10      MEDIUM TERM NOTES 
 
                                  Unaudited   Unaudited       Audited 
                                      As at       As at         As at 
                                    30 June     30 June   31 December 
                                       2023        2022          2022 
 
                                    US$'000     US$'000       US$'000 
-------------------------------  ----------  ----------  ------------ 
 Outstanding medium term notes       28,810      31,154        31,264 
 Net transaction costs                    -           -             - 
 Less: 
 Repayment due within twelve 
  months*                          (28,810)    (31,154)      (31,264) 
-------------------------------  ----------  ----------  ------------ 
 Repayment due after twelve               -           - 
  months                                                            - 
-------------------------------  ----------  ----------  ------------ 
 

* Nil net transaction costs in relation to medium term notes due within twelve months. (30 June 2022: Nil; 31 December 2022: Nil)

Reconciliation of movement of medium term notes to cash flows arising from financing activities:

 
                   As at 1                             Foreign   As at 30 
                   January   Drawdown   Repayment     exchange       June 
                      2023    of loan     of loan    movements       2023 
 Unaudited         US$'000    US$'000     US$'000      US$'000    US$'000 
---------------  ---------  ---------  ----------  -----------  --------- 
 
   Medium Term 
   Notes            31,264          -       (611)      (1,843)     28,810 
                 =========  =========  ==========  ===========  ========= 
 
 
                   As at 1                             Foreign   As at 30 
                   January   Drawdown   Repayment     exchange       June 
                      2022    of loan     of loan    movements       2022 
 Unaudited         US$'000    US$'000     US$'000      US$'000    US$'000 
---------------  ---------  ---------  ----------  -----------  --------- 
 
   Medium Term 
   Notes            42,316          -     (9,133)      (2,029)     31,154 
                 =========  =========  ==========  ===========  ========= 
 
 
                   As at 1                             Foreign    As at 31 
                   January   Drawdown   Repayment     exchange    December 
                      2022    of loan     of loan    movements        2022 
 Audited           US$'000    US$'000     US$'000      US$'000     US$'000 
---------------  ---------  ---------  ----------  -----------  ---------- 
 
   Medium Term 
   Notes            42,316          -     (8,884)      (2,168)      31,264 
                 =========  =========  ==========  ===========  ========== 
 
   10      MEDIUM TERM NOTES (CONT'D) 

The medium term notes ("MTNs") were issued pursuant to a programme with a tenor of ten (10) years from the first issue date of the notes. The MTNs were issued by a subsidiary, to fund two development projects known as Sandakan Harbour Square and Aloft Kuala Lumpur Sentral ("AKLS") in Malaysia.

Following the completion of the sale of the AKLS by the Group in 2016, the net adjusted price value for the sale of AKLS, which included the sale of the entire issued share capital of ASPL M3B Limited and Iringan Flora Sdn. Bhd. (the "Aloft Companies") were used to redeem the MTN Series 2 and Series 3. Following the completion of the disposal of AKLS, US$96.25 million (RM394.0 million) of MTN associated with the AKLS (Series 3) and the former Four Points Sheraton Sandakan (Series 2) were repaid on 19 August 2016. The charge in relation to AKLS was also discharged following the completion of the disposal.

The Group completed the "roll-over" for the remaining MTNs of US$24.43 million which was due on 10 December 2020, 2021.

A repayment of US$8.89 million (RM39.0 million) was made on 7 April 2022. Subsequently, the remaining MTNs were further "rolled over" and now repayable on 8 December 2023. The MTNs are rated AAA.

Nil repayment was made in the current financial period.

The weighted average interest rate of the MTN was 5.50% per annum at the statement of financial position date. The effective interest rates of the MTN and their outstanding amounts are as follows:

 
                                           Interest rate 
                         Maturity Dates     % per annum    US$'000 
---------------------  -----------------  --------------  -------- 
 Series 1 Tranche FG    8 December 2023        5.50          7,503 
 Series 1 Tranche BG    8 December 2023        5.50          5,573 
                                                            13,076 
 ---------------------------------------  --------------  -------- 
 
   10      MEDIUM TERM NOTES (CONT'D) 

The medium term notes are secured by way of:

   (i)      bank guarantee from two financial institutions in respect of the BG Tranches; 

(ii) financial guarantee insurance policy from Bank Pembangunan Malaysia Berhad ("BPMB", formerly Danajamin Nasional Berhad) in respect to the FG Tranches;

(iii) a first fixed and floating charge over the present and future assets and properties of Silver Sparrow Berhad and ICSD Ventures Sdn. Bhd. by way of a debenture;

   (iv)    a third party first legal fixed charge over ICSD Ventures Sdn. Bhd.'s assets and 

land;

   (v)     a corporate guarantee by the Company; 

(vi) letter of undertaking from the Company to provide financial and other forms of support to ICSD Ventures Sdn. Bhd. to finance any cost overruns associated with the development of the Sandakan Harbour Square;

(vii) assignment of all its present and future rights, interest and benefits under the ICSD Ventures Sdn. Bhd.'s Put Option Agreements in favour of BPMB, Malayan Banking Berhad and OCBC Bank (Malaysia) Berhad (collectively as "the guarantors") where once exercised, the sale and purchase of HMS and SHA shall take place in accordance with the provision of the Put Option Agreement; and the proceeds from HMS and SHA will be utilised to repay the MTNs;

(viii) assignment over the disbursement account, revenue account, operating account, sale proceed account, debt service reserve account and sinking fund account of Silver Sparrow Berhad; revenue account of ICSD Venture Sdn. Bhd;

(ix) assignment of all ICSD Ventures Sdn. Bhd's present and future rights, title, interest and benefits in and under the insurance policies; and

(x) a first legal charge over all the shares of Silver Sparrow Berhad, ICSD Ventures Sdn. Bhd. and any dividends, distributions and entitlements.

Potensi Angkasa Sdn Bhd ("PASB"), a subsidiary incorporated on 25 February 2019, has secured a commercial paper and/or medium term notes programme not exceeding US$21.02 mil (RM90.0 million) ("CP/MTN Programme") to fund a project known as The RuMa Hotel and Residences. PASB may, from time to time, issue commercial paper and/or medium term notes ("Notes") whereby the nominal value of outstanding Notes shall not exceed US$21.02 million (RM90.0 million) at any one time.

   10      MEDIUM TERM NOTES (CONT'D) 

The details of the drawdown schedule were as follows:

 
       Initial Issue              First Roll-over            Second Roll-over           Third Roll-over            Fourth Roll-over 
---------------------------  -------------------------  -------------------------  -------------------------  ------------------------- 
 Tranche              RM      Tranche            RM      Tranche            RM      Tranche            RM      Tranche            RM 
  Number    Date     ('000)    Number   Date    ('000)    Number   Date    ('000)    Number   Date    ('000)    Number   Date    ('000) 
---------  ------  --------  --------  -----  --------  --------  -----  --------  --------  -----  --------  --------  -----  -------- 
             10                          10                         10                         14 
 Tranche     Jun              Tranche   Jun              Tranche   Jun              Tranche   Feb 
   1-23      2019    22,850    63-83    2020    20,950   124-142   2021    19,050   203-218   2023    16,200 
             30                          30                         1                          3                          3 
 Tranche     Sep              Tranche   Sep              Tranche   Oct              Tranche   Oct              Tranche   Apr 
   24-31     2019     9,600    84-91    2020     9,600   143-147   2021     4,750   180-184   2022     4,750   232-236   2023     4,750 
                                         7                          8                          10                         11 
 Tranche    7 Oct             Tranche   Oct              Tranche   Oct              Tranche   Oct              Tranche   Apr 
   32-49     2019    17,100    92-109   2020    17,100   148-165   2021    17,100   185-202   2022    17,100   237-254   2023    17,100 
             25                          25                         28                         1 
 Tranche     Feb              Tranche   Feb              Tranche   Feb              Tranche   Mar 
   50-62     2020    15,350   110-122   2021    15,350   166-178   2022    15,350   219-231   2023    15,350 
                                         10                         12 
 Tranche    9 Jun             Tranche   Jun              Tranche   Jun 
    123      2021    18,100     179     2022    20,000     255     2023    20,000 
---------  ------  --------  --------  -----  --------  --------  -----  --------  --------  -----  --------  --------  -----  -------- 
 

The weighted average interest rate of the loan was 10.5% per annum at the statement of financial position date. The effective interest rates of the medium-term notes and their outstanding amounts were as follows:

 
                                      Interest rate 
                    Maturity Dates     % per annum    US$'000 
-----------------  ----------------  --------------  -------- 
 Tranche 203-218      15 Feb 2024         10.0          3,473 
 Tranche 219-231      1 Mar 2024          10.0          3,290 
 Tranche 232-236      3 Apr 2024          10.0          4,750 
 Tranche 237-254      12 Apr 2024         10.0         17,100 
 Tranche 255          12 Jun 2024         12.0          4,287 
                                                       15,734 
 ----------------------------------  --------------  -------- 
 
   10      MEDIUM TERM NOTES (CONT'D) 

Security for CP/MTN Programme

(a) A legal charge over the Designated Accounts by the PASB and/or the Security Party (as defined below) (as the case may be) and assignment of the rights, titles, benefits and interests of the PASB and/or the Security Party (as the case may be) thereto and the credit balances therein on a pari passu basis among all Notes, subject to the following:

(b)

(i) In respect of the 75% of the sale proceeds of a Secured Asset ("Net Sale Proceeds") arising from the disposal of a Secured Asset, the Noteholders of the relevant Tranche secured by such Secured Asset shall have the first ranking security over such Net Sale Proceeds;

(ii) In respect of the insurance proceeds from the Secured Assets ("Insurance Proceeds"), the Noteholders of the relevant Tranche secured by such Secured Asset shall have the first ranking security over such Insurance Proceeds;

(iii) In respect of the sale deposits from the Secured Assets ("Sale Deposits"), the Noteholders of the relevant Tranche secured by such Secured Asset shall have the first ranking security over such Sale Deposits;

(iv) In respect of the amount at least equivalent to an amount payable in respect of any coupon payment of that particular Tranche for the next six (6) months to be maintained by the Issuer ("Issuer's DSRA Minimum Required Balance"), the Noteholders of the relevant Tranche shall have the first ranking security over such Issuer's DSRA Minimum Required Balance;

(v) In respect of the proceeds from the Collection Account ("CA Proceeds"), the Noteholders of the relevant Tranche shall have the first ranking security over such CA Proceeds; and

(vi) In respect of any amount deposited by the Guarantor which are earmarked for the purposes of an early redemption of a particular Tranche of the Notes and/or principal payment of a particular Tranche of the Notes ("Deposited Amount"), the Noteholders of the relevant Tranche shall have the first ranking security over such Deposited Amount;

(c) An irrevocable and unconditional guarantee provided by the Urban DNA Sdn Bhd for all payments due and payable under the CP/MTN Programme ("Guarantee"); and

(d) Any other security deemed appropriate and mutually agreed between the PASB and the Principal Adviser/Lead Arranger ("PA/LA"), the latter being Kenanga Investment Bank Berhad.

(i)

   10      MEDIUM TERM NOTES (CONT'D) 

Security for each medium term note:

Each Tranche shall be secured by assets ("Secured Assets") to be identified prior to the issue date of the respective Tranche.

Such Secured Assets may be provided by third party(ies), (which, together with the Guarantor, shall collectively be referred to as "Security Parties" and each a "Security Party") and/or by the PASB. Subject always to final identification of the Secured Asset prior to the issue date of the respective Tranche, the security for any particular Tranche may include but not limited to the following:

(a) Legal assignment and/or charge by the PASB and/or the Security Party (as the case may be) of the Secured Assets;

(b) An assignment over all the rights, titles, benefits and interests of the PASB and/or the Security Party (as the case may be) under all the sale and purchase agreements executed by end-purchasers and any subsequent sale and purchase agreement to be executed in the future by end-purchaser (if any), in relation to the Secured Assets;

(c) A letter of undertaking from Aseana Properties Limited to, amongst others, purchase the Secured Assets ("Letter of Undertaking"); and/or

(d) Any other security deemed appropriate and mutually agreed between the Issuer and the PA/LA and/or Lead Manager prior to the issuance of the relevant Tranche.

The security for each Tranche is referred to as "Tranche Security".

   11      RELATED PARTY TRANSACTIONS 

Transactions between the Group with Ireka Corporation Berhad ("ICB") and its group of companies are classified as related party transactions based on ICB's 23.07% shareholding in the Company.

Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel include all the Directors of the Group, and certain members of senior management of the Group.

   11      RELATED PARTY TRANSACTIONS (CONTINUED) 
 
                                      Unaudited    Unaudited        Audited 
                                     Six months   Six months           Year 
                                          ended        ended          ended 
                                        30 June      30 June    31 December 
                                           2023         2022           2022 
 
                                        US$'000      US$'000        US$'000 
----------------------------------  -----------  -----------  ------------- 
 ICB Group of Companies 
 Accrued interest on shareholders 
  advance payable by ICB                  1,001          682          1,462 
 Accrued interest on a contract 
  payment by an ICB subsidiary                -           66            131 
 
 Key management personnel 
 Fees and short-term employee 
  benefits                                  262        1,027            565 
----------------------------------  -----------  -----------  ------------- 
 

Transactions between the Group and other significant related parties are as follows:

 
                                     Unaudited    Unaudited        Audited 
                                    Six months   Six months           Year 
                                         ended        ended          ended 
                                       30 June      30 June    31 December 
                                          2023         2022           2022 
 
                                       US$'000      US$'000        US$'000 
---------------------------------  -----------  -----------  ------------- 
 Non-controlling interests 
 Advances - non-interest bearing             -        (697)            129 
---------------------------------  -----------  -----------  ------------- 
 

The outstanding amounts due from/(to) ICB and its group of companies as at 30 June 2022, 30 June 2021 and 31 December 2021 are as follows:

 
                                 Unaudited   Unaudited       Audited 
                                     As at       As at         As at 
                                   30 June     30 June   31 December 
                                      2023        2022          2022 
 
                                   US$'000     US$'000       US$'000 
------------------------------  ----------  ----------  ------------ 
 Net amount due from an ICB                      1,960 
  subsidiary                             -                         - 
 Net amount due from ICB             5,713       3,771         5,461 
------------------------------  ----------  ----------  ------------ 
 
 
   11      RELATED PARTY TRANSACTIONS (CONTINUED) 

On 29 July 2022, ICB announced that it had submitted an application for Judicial Management for its subsidiary, Ireka Engineering & Construction Sdn Bhd ("IECSB"), from which the Group recognizes a net amount due. No further information is available at the time of this report, the Group will be monitoring the situation closely including assessing the potential impact to the Group's financial position and performance.

The outstanding amounts due from/(to) the other significant related parties as at 30 June 2022, 30 June 2021 and 31 December 2021 are as follows:

 
                                    Unaudited   Unaudited       Audited 
                                        As at       As at         As at 
                                      30 June     30 June   31 December 
                                         2023        2022          2022 
 
                                      US$'000     US$'000       US$'000 
---------------------------------  ----------  ----------  ------------ 
 Non-controlling interests 
 Advances - non-interest bearing      (1,063)     (1,169)       (1,981) 
---------------------------------  ----------  ----------  ------------ 
 
 

Transactions between the parent company and its subsidiaries are eliminated in these consolidated financial statements.

   12      DIVIDENDS 

The Company has not paid or declared any dividends during the financial period ended 30 June 202 3 .

   13      INTERIM STATEMENT 

Copies of this interim statement are available on the Company's website www.aseanaproperties.com or from the Company's registered office at Osprey House, Old Street, St Helier, Jersey JE2 3RG, Channel Islands.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board has overall responsibility for risk management and internal control. The following have been identified previously as the areas of principal risk and uncertainty facing the Company, and they remain relevant in the second half of the year.

   --    Economic 
   --    Strategic 
   --    Regulatory 
   --    Law and regulations 
   --    Tax regimes 
   --    Management and control 
   --    Operational 
   --    Financial 
   --    Going concern 

For greater detail, please refer to page 17 of the Company's Annual Report for 2022, a copy of which is available on the Company's website www.aseanaproperties.com .

RESPONSIBILITY STATEMENT

The Directors of the Company confirm that to the best of their knowledge that:

a) The condensed consolidated financial statements have been prepared in accordance with IAS 34 (Interim Financial Reporting);

b) The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c) The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).

On behalf of the Board

NICHOLAS JOHN PARIS

Chairman

25 September 2023

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END

IR NKPBDABKDCCB

(END) Dow Jones Newswires

September 26, 2023 02:00 ET (06:00 GMT)

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