Siguldas CMAS

Interim / Quarterly Report • Aug 22, 2019

Joint Stock Company 'SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA'

Unaudited INTERIM REPORT for the First Six Months of 2019

Index of Contents

	Page
Information on the Company	3
Management Report	4
Profit or Loss Account	5
Balance sheet	6
Cash flow statement	8
Statement on changes in shareholders' equity	9
Notes to the Financial Statements	10
Report on Management Liability	22

Information on the Company

Company's name	SIGULDAS CILTSLIETU UN MĀKSLĪGĀS APSĒKLOŠANAS STACIJA
Company's legal status	Joint stock company
Registration number, place and date	40003013295, Riga, 26 July 1991
	Registration in the Commercial Register on 19 June 2004
Legal address	'Kalnabeites' 8, Sigulda parish, Sigulda municipality, LV-2150
Shareholders holding more than 5% of the total number of voting shares	'Siguldas mākslīgās apsēklošanas stacija' Ltd. (49.92%), registration No. 40003311954
	Oļegs Radčenko (5.20%)
Members of the Management Board	Nils Ivars Feodorovs, chairman of the Management Board Sarmīte Arcimoviča, member of the Management Board Valda Mālniece, member of the Management Board
Members of the Supervisory Board	Inita Bedrīte, chairman of the Supervisory Board Maija Beča, deputy chairman of the Supervisory Board Jekaterina Kreise, member of the Supervisory Board Baiba Mecauce, member of the Supervisory Board Maruta Niedrīte, member of the Supervisory Board
Reporting period	01.01.2019 – 30.06.2019
Previous reporting period	01.01.2018 – 30.06.2018
Auditors	Natālija Zaiceva Sworn Auditor Certificate No. 138
	'Orients Audit & Finance' Ltd. Gunāra Astras street 8B Riga, LV-1082, Latvia Sworn Auditors' Commercial Company's license No. 28

Management Report

JSC 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' (hereinafter referred to as the Company) is one of the largest high-quality breeding bull semen producers and suppliers in Latvia. The second largest field of the Company's basic economic activities is the milk testing services. The Company also provides other breeding related services – consultations on issues of cattle breeding, feeding and keeping, evaluation of cow exterior, artificial insemination of cows, initial processing of the supervisory data.

The proportion of the revenue from the Company's basic economic activities, if compared to the first six months of 2018, had not changed substantially − the revenue from the sales of the bull semen comprised 52.9 % of the net turnover, whereas the milk laboratory services and processing of supervisory data services, taken together, accounted for 37.7 % of the net turnover.

Company's net turnover in the first six months of 2019 was 566.5 thousand euros, which is by 7.9 % higher than in the first six months of 2018, whereas Company's profit before enterprise income tax was 56.7 thousand euros – by 180.9 % or 36.5 thousand euros higher compared to the corresponding period in 2018.

In the first six months of 2019 there are no major events that have affected the financial statement, as well as no significant risks that the company might be confronted with and which could have an impact on its financial position and financial performance.

By increasing the operational efficiency of its business, the Company will continue to work on the expansion of its marketed product and service volume.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Profit or loss account

	Note	30.06.2019 EUR	30.06.2018 EUR
Net sales	3	566 509	525 059
a) from agricultural activities		566 509	525 059
Changes in stock of ready-made goods and unfinished products	4	28 959	39 928
Other operating income	5	16 632	(8 190)
Costs of materials:		(263 404)	(236 049)
a) raw materials and auxiliary costs of materials		(211 579)	(186 436)
b) other external costs		(51 825)	(49 613)
Personnel costs:	6	(229 285)	(240 481)
a) salaries for work		(177 322)	(188 253)
b) state social insurance compulsory contributions		(40 543)	(42 917)
c) other social insurance costs		(11 420)	(9 311)
Depreciation adjustments:		(24 897)	(27 203)
a) depreciation adjustments of fixed and intangible assets		(24 897)	(27 203)
Other operating costs	7	(37 863)	(32 894)
Profit or loss before enterprise income tax		56 651	20 170
Enterprise income tax for the reporting year		-	-
Profit or loss after enterprise income tax calculation		56 651	20 170
The profit or loss for the year		56 651	20 170
Equity per 1 share (EPS)	17	0.134	0.048

Notes on pages 10 to 21 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Balance sheet

Assets	Note	30.06.2019 EUR	31.12.2018 EUR
Long-term investments
Intangible assets
Concessions, patents, licenses, trademarks and similar rights		5 990	6 966
Intangible assets total	8	5 990	6 966
Fixed assets (fixed assets, investment properties)
Fixed assets
Immovable properties - land parcels, buildings and constructions		132 253	141 649
Productive animals and perennial plantings		66 794	60 238
Technological equipment and machinery		4 745	5 475
Other fixed assets and inventory		35 373	34 078
Fixed assets total	9	239 165	241 440
Investment properties	10	59 000	59 000
Long-term financial investments
Other securities and investments	11	684	684
Long-term financial investments total		684	684
Long-term investments total		304 839	308 090
Current assets
Stock
Raw materials, basic materials and auxiliary materials		13 116	20 822
Ready-made goods and goods for sale	12	764 445	703 468
Prepayments for goods		12 829	658
Stock total		790 390	724 948
Receivables
Trade receivables	13	299 945	220 749
Other receivables	14	2 635	11 394
Prepaid expenses	15	3 776	11 329
Receivables total		306 356	243 472
Cash	16	212 783	295 972
Current assets total		1 309 529	1 264 392
Assets total		1 614 368	1 572 482

Balance sheet

Shareholders' equity and liabilities	Note	30.06.2019 EUR	31.12.2018 EUR
Shareholders' equity
Share capital	17	591 416	591 416
Other reserves	18	-	1 213
Retained earnings or loss carried forward from previous years		860 743	904 144
Profit or loss of the reporting year		56 651	(10 819)
Shareholders' equity total		1 508 810	1 485 954
Payables
Short-term payables
Prepayment received from customers		1 582	770
Trade payables		47 973	19 581
Taxes and social insurance payments	19	29 237	33 982
Other payables		14 787	20 216
Accrued liabilities	20	11 979	11 979
Short-term payables total		105 558	86 528
Payables total		105 558	86 528
Shareholders' equity and liabilities total		1 614 368	1 572 482

Notes on pages 10 to 21 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Cash flow statement

	Note	30.06.2019 EUR	30.06.2018 EUR
Cash flow from operating activities
Income from sale of goods and provision of services		618 921	566 772
Payments to suppliers, employees, other expenses arising from basic operations		(645 441)	(620 994)
Gross cash flow from basic operations		(26 520)	(54 222)
Expenses for enterprise income tax payments		-	(7 641)
Net cash flow from operating activities		(26 520)	(61 863)
Cash flow from investing activities
Purchase of fixed assets and intangible investments		(34 183)	(23 127)
Income from dispossession of fixed assets		6 344	8 300
Net cash flow from investing activities		(27 839)	(14 827)
Cash flow from financing activities
Subsidies received as a state support		5 474	5 949
Dividends paid		(33 795)	(33 795)
Net cash flow from financing activities		(28 321)	(27 846)
Result of foreign exchange rate fluctuations		(509)	(92)
Net increase or decrease of cash and its equivalents		(83 189)	(104 628)
Cash and its equivalents balance at the beginning of the
reporting year		295 972	333 148
Cash and its equivalents balance at the end of the reporting year	16	212 783	228 520

Notes on pages 10 to 21 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

Statement on changes in shareholders' equity

	Share capital	Other reserves	Retained earnings carried forward from previous years	Profit of the reporting year	Shareholders' equity total
	EUR	EUR	EUR	EUR	EUR
31.12.2017	591 416	1 213	872 141	65 798	1 530 568
Profit of 2017 transferred to retained earnings of previous years Dividends for 2017	- -	- -	65 798 (33 795)	(65 798) -	- (33 795)
Profit for the reporting year	-	-	-	20 170	20 170
30.06.2018	591 416	1 213	904 144	20 170	1 516 943
31.12.2018	591 416	1 213	904 144	(10 819)	1 485 954
Losses of 2018 are covered from retained earnings of previous years Dividends for 2018	- -	- -	(10 819) (33 795)	10 819 -	- (33 795)
Reserves, redirected to retained earnings of previous years Profit of the reporting year	- -	(1 213) -	1 213 -	- 56 651	- 56 651
30.06.2019	591 416	-	860 743	56 651	1 508 810

Notes on pages 10 to 21 form an integral part of these financial statements.

Chairman of the Management Board

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece Member of the Management Board

Member of the Management Board, Manager of the Financial and Accounting department

(1) General information on the Company

JSC 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' (hereinafter - the Company) was registered in the Register of Enterprises of the Republic of Latvia on 26 July 1991 and was reregistered in the Commercial Register of the Republic of Latvia on 19 June 2004.

The Company's basic activities are agriculture and the types of business are as follows:

• production and sale of agricultural products high-quality breeding animals semen,
• making of milk analyses,
• evaluation of cow exterior,
• artificial insemination of cows,
• milk recording data processing,
• animals breeding organization.

(2) Significant accounting principles

Underlying principles of preparation of the Financial Statements

The Company's Financial Statements have been prepared according to the Law On Annual Reports and Consolidated Annual reports of the Republic of Latvia. The Profit or Loss Account is been prepared based on classification according to expense types. The Cash Flow Statement was prepared according to the direct method.

Complying the regulation stated in Article 13 Part 5 Chapter 2 of the Law On Annual Reports and Consolidated Annual reports, the Company acknowledges, assesses, shows in its financial report and provides explicative information on investment properties in compliance with the international accounting standards.

Accounting principles used

The items of the Financial Statements have been evaluated according to the following accounting principles:

• It is assumed that the Company will be a going concern;
• The same evaluation methods have been used, which were used in the previous year;
• Evaluation was done with sufficient prudence:
  • The Financial Statements include solely the profit gained until the balance sheet date,
  • All expected risk amounts and losses have been taken into account, which occurred during the reporting year or in previous years, also if they were known during a certain period of time between the balance sheets date and the day of preparing the Financial Statements,
  • All value decreasing and depreciation amounts have been taken into account irrespective whether the reporting year was closed with profit or loss;
• reporting year related income and costs were recognized irrespective of the payment date and the date of receipt or issuance of invoice. Costs have been agreed with the income in the reporting period;
• components of asset and liabilities items have been recognized separately;
• the opening balance of the reporting year agrees with the closing balance of the previous year;
• all items have been recognized, which materially influence assessment or decision-making process of the users of the annual report, insignificant items are merged and they are detailed in the Appendix;
• operating transactions in the reporting year have been recognized in the Financial Statements by taking into account their economic substance and contents, rather than legal form.

Financial instruments

Fair value of financial assets and liabilities

Fair value of financial assets and liabilities reflect the amount, for which it is possible to exchange assets or perform liabilities in a deal between well informed, interested and financially independent persons. If in the Company's management opinion, fair value of financial assets and liabilities materially differs from the value recognized in the balance sheet, then the fair value of these assets and liabilities is recognized in the Notes to the Financial Statements.

Financial risks management

Credit risk

The Company's management has developed credit policy, which is constantly controlled. Client evaluation is done for all customers above a fixed amount. The Company cooperates with clients who have proper credit assessment.

Currency risk

Based on the current structure of Company's financial assets and liabilities held in foreign currencies, the currency risk is not material.

Reporting period

The reporting period is six months from 1 January to 30 June 2019.

Revaluation of foreign currencies

The Company's functional currency and the currency used in the Financial Statements is euro (EUR). All transactions in foreign currencies are converted into euro according to the euro foreign exchange reference rate published by the European Central Bank on the day of particular transaction being performed.

Monetary assets and liabilities, which are shown in foreign currencies, are converted into euro according to the fixed euro foreign exchange reference rate published by the European Central Bank on the last day of the reporting period.

	30.06.2019	30.06.2018
USD	1.13800	1.16580

Currency exchange rate differences arising from settlements in currencies or when recognizing assets and liabilities by using currency exchange rates, which differ from the initial currency exchange rates used for accounting of transactions, are recognized in the profit or loss account in net value.

Recognition of income

Income is recognized according to the conviction about the Company's possibility to gain economic benefit and in the amount, in which it is possible to state it, less value added tax and sales-related discounts. When recognizing income, also the following provisions are taken into account.

Sale of goods

Income is recognized when the Company has transferred to the purchaser major risks and indemnities related to the title of goods.

Provision of services

Income from services is recognized in the period when the services are provided.

Penalty and delay charges

Income from penalty and delay charges is recognized at the moment of their receipt.

Interest

Income is recognized according to the respective period of time.

Long-term and short-term items

Long-term items include amounts whose receipt, payments or write-off terms are due later after the end of the respective reporting year. Amounts, which are receivable, payable or written off during the year, are recognized in short-term items.

Leasing transactions

Financial leasing

In cases when fixed assets are purchased on the conditions of financial leasing and the related risks and return are taken over, these fixed assets are recognized in the value, for which they could be purchased with immediate payment. Leasing interest payments and similar payments are included in the profit or loss account of that period when they occurred.

Intangible assets and fixed assets

In the balance sheet, all intangible assets and fixed assets are reflected at their purchase prices, less depreciation. Depreciation is calculated from the first date of the next month after their commissioning and finished on the first date of the subsequent month after it is excluded from fixed assets. Depreciation is calculated according to the straight line method and is written off during the useful life time of respective fixed assets by choosing the following annual depreciation rates as fixed by the management:

Intangible assets:
Licenses	5 years
Fixed assets:
Buildings and constructions	10, 20, 25, 40 and 59 years
Equipment and machinery	5, 6 and 7 years
Computer hardware and communication equipment	5 years
Inventory and tools	3 and 5 years
Other fixed assets	2 and 3 years

Balances of fixed assets have been counted in the annual count of fixed assets.

Investment properties

Investment properties – land in possession of the stock company, which market value is expected to grow. Investment properties have been filed according to their purchase value. No later than at the end of the year of account the investments properties are being revalued according to their real market value considering any other activities related to particular property. The revaluation is performed by a certified evaluator. Any changes in the market value of the investments properties are being shown in the profit and loss account.

Evaluation using a comparable transaction method was carried out by a certified evaluator:

2018 – LTD 'Eiroeksperts'

2017 – LTD 'Eiroeksperts'

Stock

Stock is recognized in the lowest cost or net sales value. All stock is assessed by using the average weighted method.

Net sales value is the sales price of stock fixed during normal Company's operations, less the stock completion and selling costs. In cases when the stock net selling value is lower than their cost price, provisions are made for these stocks for decrease of their value down to the net sales value.

All direct costs, which are related to production of breeding animals - bull semen, during the year are booked in the profit or loss account and are adjusted at the end of the year when evaluating stocks according to the lowest sales value or cost price and including them in stocks as "Ready-made goods and goods for sale".

Trade receivables and other receivables

In the balance sheet receivables are recognized in the recoverable value, provisions for doubtful and bad reiceivables having been deducted. Provisions for doubtful and bad debts are made in cases when there is objective evidence to the fact that the Company will not be able to receive the debts in full value according to the initially fixed repayment dates. Provisions for doubtful and bad debts are the difference between the amortized purchase value of receivables and the recoverable value. The recoverable value of receivables is the current value of planned cash flow.

Provisions

Provisions are recognized when the Company has liabilities (legal or substantial) due to some past event and there is a probability that the performance of these liabilities will require outflow of economic resources from the Company, and the amount of liabilities can be fairly assessed.

Corporate income tax

Corporate income tax for the reporting period consists of the tax calculated for the reporting period. Corporate income tax is recognized in the profit or loss account.

The tax calculated for the reporting period is calculated in accordance with the requirements of the Law "On Corporate Income Tax", determining the taxable base and applying the statutory tax rate of 20%.

Subsidies

Amounts, which are received as a state support for agricultural, i.e., for covering of expenses for maintaining high-quality breed bulls, are included in the income of that reporting period when they are received.

Use of assumptions

When preparing the financial statements, the Company's management has to make calculations and assumptions, which impact recognition of assets and liabilities included in the financial statements as at the day of preparing the financial statements, as well as the income and expenses recognized in the specific reporting period. Management has made profit or loss assessment and considers that the financial statements reflect the true financial condition based on all currently available information.

(3) Net sales

Sales include income gained during the year from the Company's basic activities – sales of products and provision of services without value added tax and less discounts.

Type of operations	30.06.2019 EUR	30.06.2018 EUR
Livestock sperm	299 918	268 835
Milk laboratory services	163 178	149 420
Treatment of supervisory data	50 310	52 754
Artificial insemination of livestock	16 158	20 120
Other income	36 945	33 930
	566 509	525 059

Distribution of net sales according to the geographical markets:

	30.06.2019 EUR	30.06.2018 EUR
Latvia	566 509	525 059
	566 509	525 059

(4) Changes in stock of ready-made goods and unfinished products

	30.06.2019 EUR	30.06.2018 EUR
Changes in sperm stock value	28 959	39 928
	28 959	39 928

(5) Other operating income

	30.06.2019 EUR	30.06.2018 EUR
Income from dispossession of fixed assets	-	8 300
Costs of dispossession of fixed assets	-	(24 251)
Profit from dispossession of fixed assets	___ -	__ (15 951)
State support for agricultural	5 474	5 949
Recovered doubtful and bad debts 11 158		1 812
	16 632	(8 190)

(6) Personnel costs

	30.06.2019 EUR	30.06.2018 EUR
Salaries for work	168 953	180 500
Life insurance with cash value accrual	8 369	7 753
State social insurance contributions	40 543	42 917
Health insurance	8 850	8 765
Other costs	2 570	546
	229 285	240 481

(7) Other operating expenses

	30.06.2019 EUR	30.06.2018 EUR
Insurance payments	4 128	4 463
Business trip expenses	2 975	1 761
Selling expenses	1 660	1 222
The costs of accreditation and employee training	1 671	1 537
The costs of security services	653	768
Taxes applied on the vehicles	759	792
Company's management and administrative expenses	4 287	6 215
Regulated securities market expenses	6 473	6 263
Loss from foreign currency exchange rate fluctuations	295	513
Employees' leisure and similar costs	2 489	1 745
Loss from dispossession of long-term investments objects	6 193	-
Real estate tax	1 855	1 853
Other costs	4 425	5 762
	37 863	32 894

(8) Intangible assets

	Concessions,
	patents, licenses,
	trademarks and
	similar rights
	EUR
Initial value
31.12.2018	10 785
Purchased	-
Disposed	-
30.06.2019	10 785
Accrued depreciation adjustments
31.12.2018	3 819
Annual write-off of the value	976
Adjustments to accrued depreciation of excluded intangible assets	-
30.06.2019	4 795
Book value as at 31.12.2018	6 966
Book value as at 30.06.2019	5 990

	Concessions,
	patents, licenses,
	trademarks and
	similar rights
	EUR
Initial value
31.12.2017	10 785
Purchased	-
Disposed	-
30.06.2018	10 785
Accrued depreciation adjustments
31.12.2017	1 867
Annual write-off of the value	976
Adjustments to accrued depreciation of excluded intangible assets	-
30.06.2018	2 843
Book value as at 31.12.2017	8 918
Book value as at 30.06.2018	7 942

(9) Report on movement of fixed assets

	Land, buildings and constructions	Productive animals and perennial plantings	Technological equipment and machinery	Other fixed assets and inventory	Total
	EUR	EUR	EUR	EUR	EUR
Initial value
31.12.2018	427 659	75 614	329 177	303 057	1 135 507
Purchased	-	19 093	-	15 090	34 183
Dispossessed or liquidated	-	(12 537)	-	(23 955)	(36 492)
30.06.2019	427 659	82 170	329 177	294 192	1 133 198
Accrued depreciation adjustments
31.12.2018	286 010	15 376	323 702	268 979	894 067
Calculated depreciation Depreciation of dispossessed or	9 396	-	730	13 756	23 882
liquidated fixed assets	-	-	-	(23 916)	(23 916)
30.06.2019	295 406	15 376	324 432	258 819	894 033
Book value as on 31.12.2018	141 649	60 238	5 475	34 078	241 440
Book value as on 30.06.2019	132 253	66 794	4 745	35 373	239 165

As on 30 June 2019, the cadastral value of real estate – land and constructions – was EUR 158 087.

	Land, buildings and constructions	Perennial plantings	Technological equipment and machinery	Other fixed assets and inventory	Total
	EUR	EUR	EUR	EUR	EUR
Initial value
31.12.2017	427 659	88 660	329 177	307 914	1 153 410
Purchased	-	21 300	-	1 827	23 127
Dispossessed or liquidated	-	(24 228)	-	(15 703)	(39 931)
30.06.2018	427 659	85 732	329 177	294 038	1 136 606
Accrued depreciation adjustments
31.12.2017	267 217	15 376	318 068	258 633	859 294
Calculated depreciation Depreciation of dispossessed or	9 396	-	3 513	13 318	26 227
liquidated fixed assets	-	-	-	(15 680)	(15 680)
30.06.2018	276 613	15 376	321 581	256 271	869 841
Book value as on 31.12.2017	160 442	73 284	11 109	49 281	294 116
Book value as on 30.06.2018	151 046	70 356	7 596	37 767	266 765

As on 30 June 2018, the cadastral value of real estate – land and constructions – was EUR 158 087.

(10) Investment properties

	Land
	EUR
Book value as on 31.12.2017	57 000
Increase/decrease of value due to revaluation	-
Book value as on 30.06.2018	57 000
Book value as on 31.12.2018	59 000
Increase/decrease of value due to revaluation	-
Book value as on 30.06.2019	59 000

(11) Other securities and investments

Book value as on 30.06.2019	684
Purchase value as on 30.06.2019	684
Book value as on 31.12.2018	684
Purchase value as on 31.12.2018	684
	EUR

(12) Ready-made products and goods for sale

	30.06.2019 EUR	31.12.2018 EUR
Bull semen	752 123	696 525
Other goods for sale	12 322	6 943
	764 445	703 468

(13) Trade receivables

	30.06.2019 EUR	31.12.2018 EUR
Accounting value of trade receivables	353 851	285 813
Provisions for doubtful trade receivables	(53 906)	(65 064)
	299 945	220 749

(14) Other receivables

	30.06.2019 EUR	31.12.2018 EUR
VAT for received goods and services	332	760
Overpayment of enterprise income tax	-	9 126
Other receivables	2 303	1 508
	2 635	11 394

(15) Prepaid expenses

The item recognizes the costs made during the reporting year, but referring to the next reporting periods.

	30.06.2019 EUR	31.12.2018 EUR
Advertising costs	25	253
Insurance	3 733	8 990
Press and legislation updates' subscription	18	1 172
Server maintenance and similar costs	-	356
Other prepaid expenses	-	558
	3 776	11 329

(16) Cash in EUR and foreign currencies according to the European Central Bank's foreign exchange reference rates

Break-down of cash according to currencies:		30.06.2019		31.12.2018
		Currency	EUR	Currency	EUR
Cash in hand	EUR	-	5 703	-	1 643
Cash in bank	EUR	-	207 080	-	294 329
			212 783		295 972

(17) Share capital

Since 21 May 2007 Company's shares are quoted on the Second List of Nasdaq Riga Stock Exchange (ISIN code: LV0000100600). The Company's share capital has been formed of shareholders' investments.

The total number of shares as per 30.06.2019 is 422 440, the nominal value of one share is 1.40 euro.

The total number of shares as per 31.12.2018 was 422 440, the nominal value of one share – 1.40 euro.

	30.06.2019 EUR	31.12.2018 EUR
Bearer shares with voting rights	590 016	590 016
Shares owned by the Board without voting rights	1 400	1 400
	591 416	591 416

421 440 shares or 99.8% of the share capital are bearer shares, which give equal rights to receive dividends, receipt of liquidation quota and voting rights in the Shareholders' Meeting.

Owners of 421 440 bearer shares according to the latest available full shareholders list requested from the Nasdaq CSD SE.

	2019	2018
	16.04.2019 %	12.04.2018 %
'Siguldas mākslīgās apsēklošanas stacija' Ltd	49.92	49.92
Oļegs Radčenko	5.20	5.20
Inita Bedrīte, chairman of the Supervisory Board	0.26	0.26
Maija Beča, deputy chairman of the Supervisory Board	0.73	0.73
Jekaterina Kreise, member of the Supervisory Board	0.87	0.87
Baiba Mecauce, member of the Supervisory Board	2.44	2.44
Maruta Niedrīte, member of the Supervisory Board	1.97	1.97
Sarmīte Arcimoviča, member of the Management Board	0.91	0.91
Valda Mālniece, member of the Management Board	3.31	3.31
Other shareholders	34.39	34.39
	100.00	100.00

1 000 shares or 0.24% of the share capital, which are not included in the regulated market, are personnel registered shares, which may be obtained only by Members of the Board, and they give equal rights only to receipt of dividend and liquidation quota.

Owners of the Company's personnel registered shares according to the Company's carried shareholders registry.

	30.06.2019 number	31.12.2018 number
Nils Ivars Feodorovs, chairman of the Management Board	400	400
Sarmīte Arcimoviča, member of the Management Board	300	300
Valda Mālniece, member of the Management Board	300	300
	1 000	1 000

There are no share alienation restrictions, nor the necessity to receive the Company's or other shareholders' consent for alienation of shares.

There are no restrictions on voting rights, nor any other similar restrictions.

Profit per share

Profit per one share is calculated by dividing the profit of the reporting period with the average weighted number of shares during the year.

	30.06.2019 EUR	30.06.2018 EUR
Profit or loss of the reporting period	56 651	20 170
Average weighted number of shares during the year	422 440	422 440
	0.134	0.048

(18) Other Reserves

	30.06.2019 EUR	31.12.2018 EUR
The difference of the share value resulting from the denomination of the
Company's shares from lats to euro	-	1 213
	-	1 213

(19) Taxes and social insurance payments

Tax type	30.06.2019 EUR	31.12.2018 EUR
Value added tax	11 371	13 414
Personal income tax	5 754	6 651
Social insurance payments	12 028	13 856
Nature resource tax	71	47
Business risk state fee	13	14
	29 237	33 982

Tax overpaid declared in position 'Other receivables'

(20) Accrued liabilities

	30.06.2019 EUR	31.12.2018 EUR
Calculated liabilities to personnel for unused vacation	11 979	11 979
	11 979	11 979

(21) Information on the number of management members and remuneration

	30.06.2019 EUR	30.06.2018 EUR
Remuneration to five Supervisory Board members for execution of functions, including social insurance payments Remuneration to three Management Board members for execution of	4 262	5 016
functions, including social insurance payments	15 573	22 480
Total remuneration to the management members	19 835	27 496

There are no special regulations put in place to regulate the election of the Management Board members, the change of the composition of the Management Board and amendments to the Articles of Association.

All Management Board members have equal Company's representation rights. The chairman of the Management Board represents the Company separately, but other Management Board members may represent the Company only collectively.

There is no agreement signed between the Company and the Management Board members ensuring any kind of compensation.

(22) Average number of employees

	30.06.2019 number	30.06.2018 number
Supervisory Board members (all employees perform the functions of the
Supervisory Board member as an extra work in addition to principal work
duties)	3	3
Management Board members (two employees perform the functions of the
Management Board member as an extra work in addition to principal work
duties)	3	3
Other employees	30	30
Total average number of employees	36	36

Report on Management Liability

Based on information at the Management Board's possession the interim report for the first six months of the year 2019 has been prepared according to the effective requirements of legislative enactments and provide a true and fair view of the joint stock company's 'Siguldas ciltslietu un mākslīgās apsēklošanas stacija' assets, liabilities, financial condition and profit, and the management report contains true information.

Interim report is prepared in accordance with the same item recognition and assessment principles which were used in the preparation of the annual report.

Interim report for the first six months of the year 2019 has not been audited by a sworn auditor.

Nils Ivars Feodorovs Sarmīte Arcimoviča Valda Mālniece

Chairman of the Management Board

Member of the Management Board, Manager of the Production and Marketing department

Member of the Management Board, Manager of the Financial and Accounting department