Ditton pievadkezu rupnica

Quarterly Report • May 31, 2022

Financial report for 3 month of the year 2022 JSC DITTON PIEVADĶĒŽU RŪPNĪCA Reg. No. 40003030187 Višķu Street 17, Daugavpils, LV-5410, Latvia FINANCIAL REPORT FOR 3 MONTHS OF THE YEAR 2022 (01.01.2022 – 31.03.2022) (Not subject to audit by the independent sworn auditor) Prepared in accordance with the 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 3 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 3 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 – 31.03.2022 Person in charge for drawing up of the financial report: Jūlija Lavrecka, phone +371 65402316, e-mail: dpr@dpr.lv Boriss Matvejevs, phone +371 65402333, email: dpr@dpr.lv JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 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). Oto Dzenis, elected on 18.06.2020. 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 Oto Dzenis Aleksandrs Sokolovs Owned shares Number% nonenone nonenone nonenone 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 31.05.2021 *beneficiary of the Shareholder DVINSK MNG, Ltd. JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 MONTHS OF 2022 5 SHAREHOLDERS OWNING MORE THAN 5% OF THE COMPANY’S TOTAL SHARE CAPITAL * Given name, surname or Name Eduards Zavadskis Vladislavs Drīksne MAX Invest Holding SIA Maleks S SIA SIA „DVINSK MNG” Shareholding, % 20,00 19,92 13,63 13,56 9,46 * 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 dated 31.05.2021 for the ordinary shareholders’ meeting of AS Ditton pievadķēžu rūpnīca, 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) At 31.03.2022, there was no information at the disposal of the Company regarding the allocation of the shares between the heirs of E. Zavadskis (20,00 % in total) and V.Drīksne (19,92% in total) and the accounting entries in their financial instruments accounts under Section 125 of the Law on the Financial Instruments Market. SHARE PRICE DEVELOPMENT JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 MONTHS OF 2022 6 STATEMENT ABOUT MANAGEMENT LIABILITY The Management declares that the interim report for 3 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. According to the information at our disposal, it 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 3 months of the year 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 Management states herewith that the information set out in the Management statement to the financial statements for the year 2021 has no significant changes and is up to date. Chairman of the Management BoardRolands Zarāns of JSC Ditton pievadķēžu rūpnīca JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 MONTHS OF 2022 7 BALANCE SHEET ASSETS 31.03.2022. EUR 31.03.2021. EUR Long-term investments Intangible investments Concessions, patents, licenses, trademarks and similar rights Total intangible investments - - 403 403 2 061 350 1 791 982 - - 2 004 496 13 556 2 061 350 1 934 423 - - 2 250 775 21 705 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 5 871 384 6 268 253 Long-term financial investments Other securities and investments Total long-term financial investments - - - - Total long-term investments 5 871 384 6 268 656 Current assets Inventories Raw materials, consumables and supplies Work in progress Finished products and goods for sale Advance payments for inventories Total inventories 436 524 195 685 277 839 90 443 1 000 491 463 920 170 402 263 011 100 304 997 637 Debtors Trade receivables Other debtors Next period costs Total debtors 812 429 50 070 593 863 092 447 632 19 921 634 468 187 Cash 143 918 119 867 Total current assets 2 007 501 1 585 691 TOTAL ASSETS 7 878 885 7 854 347 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 MONTHS OF 2022 8 BALANCE SHEET LIABILITIES 31.03.2022. EUR 31.03.2021. EUR 1. Equity 10 360 000 10 360 000 Stock or share capital (equity capital) Reserves: Other reserves 169 251 169 251 (9 240 236) (9 370 970) 106 369 135 796 Retained profits or uncovered losses brought forward from the previous years Profit or loss of the reporting year Total equity 1 395 384 1 294 077 Long-term creditors Loans from credit institutions 3 811 577 4 135 577 Other loans - 100 000 Next period income Total long-term creditors 1 050 031 4 861 608 1 133 515 5 369 092 Short-term creditors: Loans from credit institutions Other loans Prepayments received from purchasers Accounts payable to suppliers and contractors Taxes and State mandatory social insurance payments 283 399 100 000 12 447 620 404 312 835 170 384 - 8 364 398 353 382 381 Other creditors135 68973 295 Deferred income 62 613 62 613 Accrued obligations 94 506 95 788 Total short-term creditors Total creditors 1 621 893 6 483 501 1 191 178 6 560 270 TOTAL LIABILITIES 7 878 885 7 854 347 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 MONTHS OF 2022 9 INCOME STATEMENT 31.03.2022. EUR 31.03.2021. EUR Net turnover 1 452 874 1 303 998 (1 116 708) (947 344) 336 166 356 654 (11) (11) Production costs of goods sold, purchase costs of goods sold or services rendered Gross profit or loss 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 (164 668) 25 400 (39 188) 563 (51 893) (163 800) 30 031 (38 709) 361 (48 730) · from other persons (51 893)(48 730) Profit or loss before enterprise income tax Enterprise income tax Profit or loss for the fiscal period 106 369 135 796 - - 106 369 135 796 Profit/diluted profit or loss per share 0.0140.018 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 MONTHS OF 2022 10 CASH FLOW STATEMENT 31.03.2022. EUR 31.03.2021. EUR I. Cash flows from operating activities 1. Profit or loss before enterprise income tax 106 369 135 796 Adjustments to: Depreciation of fixed assets Depreciation of intangible assets EU funds income recognition Interest payments and similar income Income from sale of fixed assets 101 498 - (20 870) 51 893 - 100 931 1 208 (20 870) 48 730 - 2. Profit or loss before adjustments to fixed assets and short-term creditors 238 890 265 795 (278 466) 30 565 (32 646) (56 889) Adjustments to Current assets and Short-term creditors: Increase or decrease in accounts receivables Increase or decrease in inventories Increase or decrease in accounts payable to suppliers, contractors and other creditors 135 840 (211 177) Net cash flows used in operating activities 126 829 (34 917) II. Cash flows from investing activities Proceeds from sale of fixed assets - - Net cash flows used in investing activities - - III. Cash flows from financing activities Proceeds from borrowings or repayment of borrowings, net Subsidies, grants, gifts or donations received Purchase of fixed assets (63 987) (51 893) - 96 300 (48 730) (536) Net cash flows used in financing activities (115 880) 47 034 Net cash flows of the reporting year 10 949 12 117 Cash and cash equivalents at the beginning of fiscal period 132 969 107 750 Cash and cash equivalents at the end of fiscal period 143 918 119 867 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 MONTHS OF 2022 11 STATEMENT OF CHANGES IN EQUITY for the period from 01.01.2022 till 31.03.2022 At 1 January 2021 Other reserves - - - - 169 251 - - 135 796 135 796 Equity capital Other reserves Profit or loss of fiscal period Total EUR 10 360 000 EUR 169 251 Retained profit of previous periods EUR (9 345 727) EUR (51 451) EUR 1 234 975 Profit of 3 months period 2021 At 31 March 2021 10 360 000 169 251 (9 370 970) 135 796 1 294 077 At 1 January 2022 10 360 000 169 251 (9 370 970) 130 734 1 289 015 - - 106 369 106 369 Profit of 3 months period 2022 At 31 March 2022 10 360 000 169 251 (9 240 236) 106 369 1 395 384 JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 MONTHS OF 2022 12 Appendix Explanatory notes Accounting policies and methods applied in present interim financial report are consistent with those applied in the last Annual Report. These financial statements are prepared on the basis of source documents and present fairly the financial position of the JSC as at 31 March 2022, its` operating results and cash flows for 3 months ended 31 March 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 3 months of 2022 has not been audited by sworn auditor. The interim report has been prepared in euros. Significant events of the Company’s economic activity, market trends and development of the Company as well as risks of the Company are given in the Annual report of the Company for the year 2021 and disclosed in the Company’s publication of the significant information on 2 March 2022 and 23 May 2022. Taking into account the deterioration of the Company’s economic situation in the second quarter of 2022, the review of the Company’s future plans and perspectives is planned at the ordinary Shareholders’ meeting of the Company. JSC DITTON PIEVADĶĒŽU RŪPNĪCA FINANCIAL REPORT FOR 3 MONTHS OF 2022 13 Explanations and analyses on separate items of financial reports Production of driving chains in 3 months of 2022 (thousand meters) The index of the produced driving chains is by 61 thousand meters lower than in 3 months of 2021. Production of driving chains in 3 months of 2022 (thousand euros) The value of the produced driving chains in these 3 months reached € 1 042 thousand, what is by € 16 thousand higher than the index of the same period of the previous year. Sales (net-turnover) in 3 months of 2022 (thousand euros) The net-turnover of the fiscal period is fulfilled by € 1 453 thousand, being by € 149 thousand or 11 per cent more than the index in the same period of the previous year. Core product sales in 3 months of 2022 (thousand euros) Core product sales amounting to € 1 206 thousand in the reporting period is by € 120 thousand or 11 per cent more than the result of the same period in the previous year. The average statistical number of employees in 3 months of year 2022 was 128 employees with the average salary amounted to EUR 783 what is by EUR 36 higher than in 3 months of 2021.