Ditton pievadkezu rupnica

Interim / Quarterly Report • Nov 30, 2022

Financial report for 9 month of the year 2022 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF YEAR 2022 (01.01.2022 – 30.09.2022) (Not subject to audit by the independent sworn auditor) Prepared in accordance with Financial Instruments Market Law and Law On the Annual Financial Statements and Consolidated Financial Statements of the Republic of Latvia Daugavpils 2022 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 2 Contents Information about the Company ..…………………………………...........3-5 Statement about management liability ..……………………………............ 6 Balance sheet ……………………………………..……………….............7-8 Income statement.................................................................................................... 9 Cash flow statement ……………………….........…………………............. 10 Statement of changes in equity ………………………….…………............ 11 Appendixes Explanatory notes ……………………………………………………. 12 Explanations and analyses on separate items of financial reports …................... 13 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 3 INFORMATION ABOUT THE COMPANY Company name Legal status Registration number Registration in Register of Enterprises Registration in Commercial Register Office Legal address Mailing address Ditton pievadķēžu rūpnīca Joint Stock Company 40003030187 Rīga, 03.10.1991 Rīga, 29.08.2003 Višķu St. 17, Daugavpils, LV-5410, Latvia Višķu St. 17, Daugavpils, LV-5410, Latvia Fixed capital Number of public bearer shares Nominal value of one share 10,360,000 EUR 7 400 000 1.40 EUR Chief accountant Jūlija Lavrecka Reporting period 01.01.2022 – 30.09.2022 Persons in charge for drawing up of the financial report: Ms. Jūlija Lavrecka, phone +371 65402316, e-mail: dpr@dpr.lv Mr. Boriss Matvejevs, phone +371 65402333, email: dpr@dpr.lv JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 4 INFORMATION ON MANAGEMENT BOARD AND COUNCIL MEMBERS THE MANAGEMENT BOARD Chairman of the Management Board Rolands Zarāns, re-elected on 14.01.2019 (elected since 15.01.2014). Information about the shares held by the members of the Management Board Members of the Management Board Rolands Zarāns Owned shares * Number% nonenone COUNCIL Chairman of the Council Boriss Matvejevs, re-elected on 18.06.2020 (elected since 05.05.2005). Members of the Council Genādijs Zavadskis, re-elected on 18.06.2020 (elected since 05.02.2017). Aleksandrs Sokolovs, elected on 18.06.2020. Information about the shares owned by the members of the Council Members of the Council Boriss Matvejevs Genādijs Zavadskis Aleksandrs Sokolovs Owned shares Number% none none none none 700 0009,46 Information about the professional experience of the members of the Management Board and Council of the JSC Ditton pievadķēžu rūpnīca (hereafter – Company) can be found on the website www.dpr.lv. ________ * at 25.08.2022 *beneficiary of the Shareholder DVINSK MNG, Ltd. JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 5 SHAREHOLDERS OWNING MORE THAN 5% OF THE COMPANY’S TOTAL SHARE CAPITAL * Given name, surname or Name Vladislavs Drīksne MAX Invest Holding SIA Maleks S SIA DVINSK MNG SIA Eduards Zavadskis Marina Zavadska Karolīna Marija Zavadska Shareholding, % 19,92 13,63 13,56 9,46 6,67 6,67 6,67 * Note : (1) The Company is not keeping a share owner and/or a shareholder register. The above information is provided and updated on the basis of the shareholders list of AS Ditton pievadķēžu rūpnīca dated 25.08.2022, which was received from Nasdaq CSD under the Commercial Law of the RoL and the Law on the Financial Instruments Market, taking into consideration the statements of shareholders on the acquisition or loss of their holdings submitted to the Company under Section 61 of the Law on Financial Instruments Market. (2) Information about M. Zavadska’s and K. M. Zavadska’s shares is provided in accordance with the October 24, 2022 "Notice of significant participation" of these persons. (3) As of September 30, 2022 The company does not have information about the distribution of shares between the heirs of V. Drīksne (19.92%) and E. Zavadska (6.67%), their entries in their financial instrument accounts in accordance with Article 125 of the Financial Instruments Market Law. SHARE PRICE DEVELOPMENT JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 6 STATEMENT ABOUT MANAGEMENT LIABILITY The Management board declares that the interim report for 9 months of the year 2022 has been prepared in compliance with the existing legislative requirements of the Republic of Latvia and of the European Union, incl. internal procedures and regulations. The Management board declares that according to the information at its disposal, financial report gives a true and fair view of the assets, liabilities, financial standing and profits of the Company, incl. changes in equity. The Management board assures that this financial report for 9 months of 2022 contains truthful information and that revenue recognition principle and assessment methods applied by its preparation are consistent with those applied in the last Annual Report. The Board of the Company declares that the information presented in the Management Report of the I half-year report of 2022 has not changed significantly and is relevant for the Company in the period until September 30, 2022. At the same time, the Company’s Board draws attention to the fact that, due to reasons beyond the control of the Company, the Company suspended its production activity from October 3, 2022 and partially resumed it from November 14, 2022. It is clear that the aforementioned will directly affect the Company’s final annual performance results and financial position. It will be analysed and reflected concretely and reasoned in the report of the Board prepared for the 2022 annual report of the Company. Chairman of the Management boardRolands Zarāns of JSC Ditton pievadķēžu rūpnīca JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 7 BALANCE SHEET ASSETS 30.09.2022. EUR 30.09.2021 EUR Long-term investments Intangible investments Concessions, patents, licenses, trademarks and similar rights Total intangible investments - - - - 2 061 350 1 720 761 - - 1 856 597 8 032 2 061 350 1 863 203 - - 2 130 623 17 277 - - Fixed assets Immovable property: Land Buildings and structures and permanent crop Investment properties - land Investment properties - buildings Technological equipment and devices Other fixed assets and inventory Costs of the establishment of fixed assets and unfinished building objects Total fixed assets 5 646 740 6 072 453 Long-term financial investments Other securities and investments Total long-term financial investments - - - - Total long-term investments 5 646 740 6 072 453 Current assets Inventories Raw materials, consumables and supplies Work in progress Finished products and goods for sale Advance payments for inventories Total inventories 375 494 206 839 262 353 67 979 912 665 590 126 175 508 338 007 110 302 1 213 943 Debtors Trade receivables Other debtors Next period costs Total debtors Cash 601 533 21 954 593 624 080 283 605 632 125 30 753 634 663 512 4 359 Total current assets 1 820 350 1 881 814 TOTAL ASSETS 7 467 090 7 954 267 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 8 BALANCE SHEET LIABILITIES 30.09.2022 EUR 30.09.2021 EUR Equity 10 360 000 10 360 000 Stock capital Reserves: Other reserves 169 251 169 251 (9 240 236) (9 370 970) Uncovered losses brought forward from the previous years Loss / profit for the fiscal period Total equity 199 843 1 488 858 294 837 1 453 118 Creditors Long-term creditors: 3 811 577 4 135 577 - 100 000 Loans from credit institutions Other loans Next period income 1 050 031 1 133 515 Total long-term creditors 4 861 608 5 369 092 Short-term creditors: 104 384 90 384 Loans from credit institutions Other loans Prepayments received from purchasers Accounts payable to suppliers and contractors Taxes and State mandatory social insurance payments Other creditors Deferred income Accrued liabilities Total short-term creditors Total creditors 100 000 59 641 450 348 222 759 71 115 20 871 87 506 1 116 624 5 978 232 - 6 121 479 822 365 284 78 787 20 871 90 788 1 132 057 6 501 149 TOTAL LIABILITIES 7 467 090 7 954 267 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 9 INCOME STATEMENT 30.09.2022. EUR 30.09.2021 EUR Net turnover 3 756 318 3 907 229 3 003 350 2 969 437 Production costs of goods sold, purchase costs of goods sold or services rendered Gross profit 752 967 937 793 Sales costs Administrative expenses Other income from operating activities Other costs of operating activities Other interest receivable and similar income Interest payments and similar expenses 582 (473 501) 204 334 (127 996) 204 334 (127 996) 561 (487 651) 89 763 (98 196) 1 521 (147 831) · from other persons (127 996)(147 831) Loss / profit before corporate income tax 199 843294 837 Corporate income tax -- Loss / profit for the fiscal period 199 843 294 837 Loss / profit per share 0.0270.040 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 10 CASH FLOW STATEMENT 30.09.2022 EUR 30.09.2021 EUR I. Cash flows from operating activities 1. Profit or loss before enterprise income tax 199 843 294 837 Adjustments to: Depreciation of fixed assets Deprecation of intangible assets Next period income recognition Interest payments and similar income 303 619 - (62 613) 156 571 303 292 1 611 (62 613) 147 831 2. Profit or loss before adjustments to fixed assets and short-term creditors 597 420 684 958 (39 454) 118 391 (227 971) (273 195) Adjustments to: Increase or decrease in accounts receivables Increase or decrease in inventories Increase or decrease in accounts payable to suppliers, contractors and other creditors (148 672) (148 558) 3. Gross cash flows from operating activities 527 685 35 234 Net cash used in operating activities 527 685 35 234 II. Cash flows from investing activities Purchases of fixed and intangible investments Proceeds from sale of fixed assets and intangible investments Net cash flows used in investing activities - - - - - - III. Cash flows from financing activities Net change in borrowings Interest payments and similar expenses Purchase of fixed assets Expenses from liquidation of fixed assets Net cash used in financing activities (243 000) (156 571) - 22 522 (377 049) 16 300 (147 831) (7 094) - (138 625) Net cash flow of the fiscal period 150 636 (103 391) 132 969 107 750 Cash and cash equivalents at the beginning of the fiscal period Cash and cash equivalents at the end of the fiscal period 283 605 4 359 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 11 STATEMENT OF CHANGES IN EQUITY for the period from 01.01.2022 till 30.09.2022 - - - 294 837 294 837 - - - 199 843 199 843 Equity capital Reserves Uncovered losses Total EUR 10 360 000 - EUR 169 251 - EUR (9 370 970) - Profit or loss of fiscal period EUR -- EUR 1 158 281 - 10 360 000 10 360 000 169 251 169 251 (9 370 970) (9 240 236) 294 837 - 1 453 118 1 289 015 As at 1 January 2021 Reserves Profit of 9 months period 2021 At 30 September 2021 At 1 January 2022 Profit of 9 months period 2022 At 30 September 2022 10 360 000 169 251 (9 240 236) 199 843 1 488 858 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 12 Appendix Explanatory notes Accounting policies and methods applied in present interim financial statements are consistent with those applied in the last Annual Report. These financial statements of the JSC DITTON pievadķēžu rūpnīca prepared on the basis of source documents present fairly the financial position of the JSC as at 30 September 2022, its` operating results and cash flows for 9 months ended 30 September 2022. This financial report has been prepared in compliance with statutory regulations of the Republic of Latvia on a going concern basis. Appropriate accounting policies have been applied consistently to each category. The interim financial report for 9 months of 2022 has not been audited by sworn auditor. The interim report has been prepared in euros. The significant events of the Company’s economic activity, market trends and the development of society, as well as the risks of society, which were valid until September 30, 2022 and which were indicated in the Board’s report included in the Company’s Financial Report for the 6 months of 2022, are current and valid. At the same time, the Company’s Board draws attention to the fact that, due to reasons beyond the control of the Company, the Company suspended its production activity from October 3, 2022 and partially resumed it from November 14, 2022. It is clear that the aforementioned will directly affect the Company’s final annual performance results and financial position. It will be analysed and reflected concretely and reasoned in the report of the Board prepared for the 2022 annual report of the Company. JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 9 MONTHS OF 2022 13 Explanations and analyses on separate items of financial reports Production of driving chains in 9 months of 2022 (thousand euros) The value of the produced driving chains in these 9 months reached € 2 504 thousand, what is by € 630 thousand smaller than the index of the same period of the previous year. Production of driving chains in 9 months of 2022 (thousand meters) The index of the produced driving chains is by 254 thousand meters smaller than in 9 months of 2021. Sales (net-turnover) in 9 months of 2022 (thousand euros) The net-turnover of the fiscal period is fulfilled by € 3 756 thousand, being by € 151 thousand or 4 per cent smaller than the index in the same period of the previous year. Core product sales in 9 months of 2022 (thousand euros) Core product sales amounting to € 2 977 thousand in the reporting period are by € 195 thousand or 6 per cent smaller than the result of the same period in the previous year.