GLG CORP LTD — Interim / Quarterly Report 2021

Feb 24, 2021

GLG Corp Ltd

ACN 116 632 958 Financial report for the half-year ended 31 December 2020

GLG Corp Limited

Financial report for the halfyear ended 31 December 2020

020
	Page
Directors’ report	3
Auditor’s independence declaration	6
Independent review report	7
Directors’ declaration	9
Consolidated statement of profit or loss and other	10
comprehensive income
Consolidated statement of financial position	11
Consolidated statement of changes in equity	12
Consolidated statement of cash flows	13
Notes to the consolidated financial statements	14

2

GLG Corp Limited Directors’ Report

Directors’ report

The Directors of GLG Corp Ltd (“GLG”) submit herewith the financial report of GLG Corp Ltd and its subsidiaries for the half-year ended 31 December 2020. In order to comply with the provisions of the Corporations Act 2001 , the Directors report as follows:

The names of the directors of the company during or since the end of the half-year are:

Estina Ang Suan Hong Executive Chairman and Chief Executive Officer Peter Tan Lead Independent Director Grant Hummel Independent Director Felicia Gan Peiling Deputy Chief Executive Officer

Review of operations

Review of operations

GLG’s revenue increased by 32.3% from US$75.2m to US$99.5m this financial period ended 31 December 2020 (“1HFY2021”). This is mainly due to diversification of its business into manufacturing of fabric masks and direct land duties paid businesses.

The gross margin also improved from 15.2% to 19.6% in 1HFY2021 due to better product mix.

Selling and distribution costs increased by 48.6% from US$3.3m in the previous financial period ended 31 December 2019 (“1HFY2020”) to US$4.9m in 1HFY2021. This was mainly due to duty and freight cost incurred on reinstatement of sales from postponed Land-Duty Paid customers’ orders and customs duties incurred by the subsidiaries.

Administration expenses decreased by 9.3% to US$5.6m as compared to US$6.2m in the previous corresponding period 1HFY2020. The decrease in costs was achieved through cost reduction strategies and streamlining of manpower.

Finance costs decreased by 48.4% from US$1.9m to US$1.0m in 1HFY2021 compared with the previous corresponding financial period. The decrease was mainly due to lower interest rate and better cash management on invoice financing.

Other expenses increased by US$6.2m from US$0.6m to US$6.8m in the 1HFY2021 compared with the previous corresponding financial period, mainly attributed to the debts written off on outsource manufacturers, write-off of old machineries and goodwill impairment .

Net profit after tax for GLG for the half year ended 31 December 2020 was US$1.3m, which represented an increase of US$0.9m compared to the previous financial period. Overall, the increase was mainly due to higher revenue generated and better cost control.

3

GLG Corp Limited Directors’ Report

Directors’ report (cont’d)

Balance Sheet position

Trade and other receivables decreased by 20.5% from US$47.1m as at 30 June 2020 to US$37.4m as at 31 December 2020 mainly attributed to the prompt settlement of payment from customers and partial write-off debts due from outsourced manufacturer.

Inventory decreased by about 12.4% to US$23.1m as at 31 December 2020 compared to US$26.4m as at 30 June 2020, mainly due to provision of obsolete stock amounted to US$4.9m.

The right-of-use assets decreased by 6.9% from US$14.7m as at 30 June 2020 to US$13.7m as at 31 December 2020 mainly due to the amortised value of leases recognised as non-current assets in the Group’s statement of financial position as at 31 December 2020.

The intangible assets decreased by 17.9% from US$6.4m as at 30 June 2020 to US$5.3m as at 31 December 2020 mainly due to the goodwill impairment of US$0.8m of a subsidiary.

Trade and others payables decreased by 32.8% from US$25.5m as at 30 June 2020 to US$17.1m as at 31 December 2020. This was mainly due to the of settlement of the outstanding amount for the purchase consideration payable for the acquisition of Maxim entities to Ghim Li Group Pte Ltd.

Current and non-current borrowings increased by 9.1% from US$45.4m as at 30 June 2020 to US$49.5m as at 31 December 2020, as a result of increase in trust receipts to meet the increase orders from buyers.

Cash Flow

Overall, the net cash flow generated from operating activities in 1HFY2021 was US$25.3m, this was mainly due to higher revenue and prompt settlement from customers.

In 1HFY2021, net cash flows used in investing activities amounted to US$2.3m was mainly due to investing new machineries in fabric factory to increase the productivity and order requirements.

Net cash used in financial activities in 1HFY2021 amounted to US$10.1m, was mainly attributed to the repayment to Ghim Li Group Pte Ltd for the Maxim’s acquisition amounted to US$13.3m and net off against the proceeds from banks’ borrowings amounted to US$4.1m.

As a result of the above, there was a net increase of US$12.9m in cash and cash equivalents for 1HFY2021, from a net cash surplus of US$7.6m as at 30 June 2020 to a net cash surplus of US$20.5m as at 31 December 2020.

We believe the cash flow from operations of GLG remains sufficient to meet our working capital requirements, capital expenditures, debt servicing and other funding requirements.

Dividends

The Board has declared an ordinary dividend for the financial year ending 31 December 2020 of US1.0 cents per share (fully unfranked). The dividend is to be paid out of the profit reserve. GLG earned its income outside of Australia and therefore has no franking credits because its income is considered conduit foreign income. The declaration date is 25 February 2021. The record date for determining entitlements to the dividend is 26 March 2021 and the payment date is 15 April 2021. The financial effect of these dividends has not been brought to account in the financial statements for the half-year ended 31 December 2020 and will be recognised in the subsequent financial period.

4

GLG Corp Limited Directors’ Report

Auditor’s independence declaration

The auditor’s independence declaration is included on page 6 of the half-year report.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the consolidated entity during the financial half year.

Rounding off of amounts

The consolidated entity satisfies the requirements of ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191 issued by the Australian Securities and Investments Commission in relation to rounding of amounts in the directors' report and the financial statements to the nearest thousand dollars, unless otherwise indicated. Amounts have been rounded off in the directors' report and financial statements in accordance with that Legislative Instrument.

Signed in accordance with a resolution of directors made pursuant to s.306 (3) of the Companies Act 2001 .

On behalf of the Directors

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Estina Ang Suan Hong Executive Chairman and CEO Singapore 25[th] February 2021

5

Tel: +61 2 9251 4100 Level 11, 1 Margaret St Fax: +61 2 9240 9821 Sydney NSW 2000 www.bdo.com.au Australia

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DECLARATION OF INDEPENDENCE BY RYAN POLLETT TO THE DIRECTORS OF GLG CORP LIMITED

As lead auditor for the review of GLG Corp Ltd for the half-year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of GLG Corp Ltd and the entities it controlled during the period.

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Ryan Pollett Director

BDO Audit Pty Ltd

Sydney, 25 February 2021

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

Tel: +61 2 9251 4100 Level 11, 1 Margaret St Fax: +61 2 9240 9821 Sydney NSW 2000 www.bdo.com.au Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of GLG Corp Ltd

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of GLG Corp Ltd (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2020, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, a summary of statement of accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including:

• (i) Giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its

• financial performance for the half-year ended on that date; and

• (ii) Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be the same terms if given to the directors as at the time of this auditor’s review report.

Responsibility of the directors for the financial report

The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

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Auditor’s responsibility for the review of the financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2020 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

BDO Audit Pty Ltd

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Ryan Pollett Director

Sydney, 25 February 2021

GLG Corp Limited Directors’ Declaration

Directors’ declaration

In the directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2020 and of its performance for the financial half-year ended on that date; and

• there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the Directors

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Estina Ang Suan Hong Executive Chairman and CEO Singapore 25[th] February 2021

9

GLG Corp Limited Consolidated statement of profit or loss and other comprehensive income

Consolidated statement of profit or loss and other comprehensive income for the half-year ended 31 December 2020

Continuing Operations Revenue Cost of sales Gross profit Other income Selling and distribution expenses Administration expenses Finance costs Other expenses Profit before income tax expense Income tax (expense)/ benefit Profit for the period Other comprehensive income: Total comprehensive income for the period Earnings per share: From continuing operations: Basic (cents per share) Diluted (cents per share)	Note 2 3	Consolidated
		Half-year ended
		31 Dec 2020 US$’000 31 Dec 2019 US$’000
		99,450 75,159 (79,913) (63,722)
		19,537 11,437 1,131 900 (4,852) (3,265) (5,636) (6,211) (981) (1,903) (6,755) (597)
		2,444 361 (1,132) 13
		1,312 374
		- -
		1,312 374
		1.77 0.50 1.77 0.50

Notes to the financial statements are included on pages 14 to 23

10

GLG Corp Limited Consolidated statement of financial position

Consolidated statement of financial position as at 31 December 2020

Current assets Cash and cash equivalents Trade and other receivables Inventory Other assets Total current assets Non-current assets Other financial assets Property, plant and equipment Right-of-use assets Intangible assets Total non-current assets Total assets Current liabilities Trade and other payables Borrowings Lease liabilities Current tax liabilities Total current liabilities Non-current liabilities Borrowings Lease liabilities Deferred tax liabilities Total non-current liabilities Total liabilities Net assets Equity Issued capital Retained earnings Merger reserve Revaluation reserve Total equity	Note 4 8 9 10 5 5	Consolidated
		31 Dec 2020 US$’000 30 Jun 2020 US$’000
		20,498 7,614 37,396 47,098 23,086 26,352 1,582 1,855
		82,562 82,919
		6,871 6,871 32,358 33,123 13,668 14,694 5,264 6,409
		58,161 61,097
		140,723 144,016
		17,132 25,508 43,567 42,148 1,945 1,875 1,938 1,369
		64,582 70,900
		5,949 3,230 12,539 13,520 2,722 2,747
		21,210 19,497
		85,792 90,397
		54,931 53,619
		10,322 10,322 55,943 54,631 (14,812) (14,812) 3,478 3,478
		54,931 53,619

Notes to the financial statements are included on pages 14 to 23

11

GLG Corp Limited Consolidated statement of changes in equity

Consolidated statement of changes in equity for the halfyear ended 31 December 2020

Consolidated Balance at 1 July 2019 Profit after income tax expense Other comprehensive income for the half-year, net of tax Total comprehensive income for the half- year Balance at 31 December 2019 Balance at 1 July 2020 Profit after income tax expense Other comprehensive income for the half-year, net of tax Total comprehensive income for the half- year Balance at 31 December 2020	Issued Capital US$’000	Asset Revaluation Reserve Merger Reserve US$’000 US$’000	Retained Profits Total US$’000 US$’000
	10,322 - -	4,916 (14,812) - - - -	50,835 51,261 374 374 - -
	-	- -	374 374
	10,322	4,916 (14,812)	51,209 51,635
	10,322 - -	3,478 (14,812) - - - -	54,631 53,619 1,312 1,312 - -
	-	- -	1,312 1,312
	10,322	3,478 (14,812)	55,943 54,931

Notes to the financial statements are included on pages 14 to 23

12

GLG Corp Limited Consolidated statement of cash flows

Consolidated statement of cash flows for the half-year ended 31 December 2020

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Proceeds from outsourced manufacturing suppliers Interest and other costs of finance paid Interest paid to lease liabilities Interest received Income tax paid Net cash provided by operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Proceeds from sale of software Purchase of software Net cash (used in)/provided by investing activities Cash flows from financing activities Proceeds from / (Repayments to) borrowings Repayments of lease liability Repayments to key management personnel Repayments to Ghim Li Group Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the financial period	Consolidated
	Half-year ended
	31 Dec 2020 US$’000 31 Dec 2019 US$’000
	101,047 79,863 (81,057) (81,028) 6,670 3,523 (498) (1,318) (321) (357) 18 1 (588) (360)
	25,271 324
	(2,352) (357) 21 10,682 - 21 - (3)
	(2,331) 10,343
	4,137 (9,228) (936) (776) - (312) (13,257) (96)
	(10,056) (10,412)
	12,884 255 7,614 5,304
	20,498 5,559

Notes to the financial statements are included on pages 14 to 23

13

GLG Corp Limited Notes to the consolidated financial statements

Notes to the consolidated financial statements

1. Significant accounting policies

Statement of compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting . Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting . The halfyear report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report.

Basis of preparation

The consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in United States dollars, unless otherwise noted.

The consolidated entity satisfies the requirements of ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191 issued by the Australian Securities and Investments Commission in relation to rounding of amounts in the directors' report and the financial statements to the nearest thousand dollars, unless otherwise indicated. Amounts have been rounded off in the directors' report and financial statements in accordance with that Legislative Instrument.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the company’s 2020 annual financial report for the financial year ended 30 June 2020, except for the impact of the new and revised Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

Comparative figures

Comparative figures have been adjusted to conform to changes in presentation for the current financial year.

Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data.

14

GLG Corp Limited Notes to the consolidated financial statements

1. Significant accounting policies (cont’d)

Fair value measurement (cont’d)

Fair value hierarchy

The following details the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3: Unobservable inputs for the asset or liability

Assets and liabilities measured at fair value include:

• Freehold and leasehold land and buildings - Level 3 – refer to Note 8 for further details

• Contingent consideration - Level 3 – refer to Note 10 for further details

There were no transfers between levels during the period.

Valuations of land and buildings and investment properties

Freehold and leasehold land and building, along with investment properties have been valued based on similar assets, location and market conditions at fair value on an annual basis.

New accounting standards and interpretations

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current half-year.

Any new, revised or amending accounting standards or interpretations that are not yet mandatory have not been early adopted.

15

GLG Corp Limited Notes to the consolidated financial statements

2. Segment information

Identification of reportable operating segments

The consolidated entity is organised into two operating segments: fabric and garments. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments.

The directors’ review EBIT (earnings before interest and tax). The accounting policies adopted for internal reporting to the directors are consistent with those adopted in the financial statements.

The information reported to the directors is on at least a monthly basis.

Types of products and services

The principal products and services of each of these operating segments are as follows: Fabric manufacturing the manufacture and wholesaling of fabric Garment the manufacturing and wholesaling of garments

Intersegment transactions

Intersegment transactions were made at market rates. The garment retailing operating segment purchases fabric from the fabric manufacturing operating segment. Intersegment transactions are eliminated on consolidation.

Operating segment information

Consolidated – 31 December 2020 Revenue Sales to external customers Intersegment sales Total revenue Interest received Depreciation and amortisation Provision for stock obsolescence Impairment loss on receivables Impairment on goodwill EBIT Finance costs Profit before income tax expense Income tax expense Profit after income tax expense	Fabric manufacturing US$'000 332 33,945	Garment US$'000 99,118 - 99,118 18 1,814 4,934 5,050 841 2,607	Intersegment eliminations US$'000 - (33,945)	Total US$'000 99,450 -
	34,277		(33,945)	99,450
	-		-	18
	1,179		-	2,993
	-		-	4,934
	75		(1,550)	3,575
	-		-	841
	1,647		(828)	3,425
				981
				2,444
				1,132
				1,312

16

GLG Corp Limited Notes to the consolidated financial statements

2. Segment information (cont’d)

Operating segment information

Consolidated – 31 December 2019 Revenue Sales to external customers Intersegment sales Total revenue Interest received Depreciation EBIT Finance costs Profit before income tax expense Income tax benefit Profit after income tax expense	Fabric manufacturing US$'000 626 23,432	Garment US$'000 74,533 - 74,533 - 1,744 3,549	Intersegment eliminations US$'000 - (23,432)	Total US$'000 75,159 -
	24,058		(23,432)	75,159
	1		-	1
	1,028		-	2,772
	1,673		(2,958)	2,264 1,903
				361 13
				374

Revenue attributable to external customers is disclosed below, based on the location of the external customer:

Cambodia India Malaysia Myanmar Singapore Cambodia Canada China Europe Hong Kong Indonesia Japan Malaysia Philippines Singapore Taiwan Thailand USA Vietnam	Fabric 31 December 2020 US$’000 31 December 2019 US$’000 - 96 237 106 60 74 - 350 35 - 332 626 Garments 31 December 2020 US$’000 31 December 2019 US$’000 - 387 13,614 6,982 - - 403 8 288 711 18 5 22 26 18 12 - 3 21,060 153 84 - - 2 63,611 66,106 - 138
	99,118 74,533

17

GLG Corp Limited Notes to the consolidated financial statements

2. Segment information (cont’d)

Disaggregation of revenue

Revenue is disaggregated by the country in which the customer is located as this depicts how the nature, amount, and timing and uncertainty of our revenue and cash flows ae affected by economic factors.

3. Other expenses

Other expenses
	31 December 2020	31 December 2019
	US$’000	US$’000
Bad and doubtful debts	75	-
Bad debts from outsourced manufacturer	3,500	-
Impairment ofgoodwill	841	-
Loss on disposal of fixed assets	1,458	-
Other	881	597
	6,755	597

4. Trade and other receivables

Trade receivables are net trade receivables. The reconciliation between gross and net receivables is set out below:

is set out below:
As at	31 December 2020	30 June 2020
	US$’000	US$’000
Trade receivables
Trade customers	15,714	22,235
GLIT Holdings	5,135	6,406
Outsourced manufacturingsuppliers	14,683	18,407
Ghim Li Group	11,215	-
Allowance for expected credit losses	-	(43)
Trade receivables	46,747	47,005
Other receivables
Other receivables	1,508	1,564
Other receivables	1,508	1,564
Less:
Payable to outsourced manufacturingsuppliers	(455)	(450)
Payable to GLIT Holdings	(6,193)	(1,021)
Payable to Ghim Li Group	(4,651)	-
	36,956	47,098
Goods and services tax recoverable	440	-
Total Trade and other receivables	37,396	47,098

18

GLG Corp Limited Notes to the consolidated financial statements

5. Borrowings

As at	31 December 2020	30 June 2020
	US$’000	US$’000
Current
Trust receipts(Gross) (i)	40,811	35,641
Billspayable(Gross)	1	145
Finance lease liabilities	52	39
Bank Loan	1,376	4,938
Term Loan	1,327	1,385
Total current borrowings	43,567	42,148
Non-current
Finance lease liabilities	115	93
Bank Loan	3,657	350
Term Loan	2,177	2,787
Total non-current borrowings	5,949	3,230
Disclosed in the financial statements as:
Current borrowings	43,567	42,148
Non-current borrowings	5,949	3,230
Total borrowings	49,516	45,378

(i) Secured by a negative pledge over all assets of Ghim Li Global Pte Ltd, some of which are also secured by a corporate guarantee from Ghim Li Group Pte Ltd.

Banking relationship: GLG uses bank facilities to support the working capital requirement of its operations. Presently, the bank facilities provided to GLG are uncommitted short term trade financing facilities which are renewable annually by the banks and long term financing facilities.

At 31 December 2020, GLG Corp Ltd had short term financing facilities available of US$111.7m, long-term financing facilities available of US$5.5m and foreign exchange available of US$19.0m. (Short term: US$50.7m was used and US$61.0m was unused. Long-term: US$3.5m was used and US$2.0m was unused. Foreign exchange of US$19.0m was unused). Compared with US$129.1m of short term financing facilities, long-term financing facilities of US$5.7m and forward contract available of US$12.1m at 30 June 2020 (Short term: US$44.1m was used and US$85.0m was unused. Long-term: US$4.2m was used and US$1.5m was unused. Foreign exchange of US$12.1m was unused). GLG believe that it will continue to have the strong support from main bankers for its working capital and capital expenditure requirements.

The facilities used are inclusive of the contingent liabilities as disclosed in Note 6.

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GLG Corp Limited Notes to the consolidated financial statements

6. Contingent Liabilities

Contingent Liabilities
Guarantees arising from letters of credit in force (i) Total	31 December 2020 30 June 2020 US$’000 US$’000 3,581 2,066
	3,581 2,066

(i) As a result of the Group’s letter of credit issued by banks for purchase of goods has arisen the contingent liabilities.

7. Subsequent Events

There has not been any matter or circumstance occurring subsequent to the end of the financial year that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of the consolidated entity in future financial year.

8. Non-current assets – property, plant and machinery

Assets measured at fair value include:

• Freehold and leasehold land and buildings - Level 3

Freehold and leasehold land and buildings of the Company were revalued on 30 June 2020 by One Asia Property Consultants (KL) Sdn. Bhd, an external, independent and registered valuer. The comparison method was adopted in arriving at the market value of the freehold and leasehold land and buildings. In estimating the fair value of the properties, the highest and best use of the properties is their current use. There has been no change to the valuation technique as compared with previous financial year and revaluations are done on an annual basis.

Freehold and leasehold land and buildings at valuation are categorised as Level 3 fair value, which has been generally derived using the sales comparison approach. Sales price of comparable properties in close proximity are adjusted for differences in key attributes such as property size. The most significant input to this valuation approach is price per square foot of comparable properties.

Description	Valuation Approach	Unobservable inputs	Range of inputs	Weighted average	Relationship of unobservable inputs to fair value
Leasehold Property	Sales comparison	Price per square foot	RM27-56 per square foot for land RM30-100 per square foot for building RM = Malaysian Ringgit currency	RM28 per square foot for land RM75 per square foot for building	The higher the price per square foot the higher the fair value
Freehold property	Sales comparison	Price per square foot	RM37 to 61 per square foot for land RM40 to 100 per square foot for building RM = Malaysian Ringgit currency	RM50 per square foot for land RM73 per square foot for building	The higher the price per square foot, the higher the fair value

20

GLG Corp Limited Notes to the consolidated financial statements

8. Non-current assets – property, plant and machinery (cont’d)

		At Valuation	At Valuation	At Valuation	At Cost	At Cost	At Cost	At Cost
	Cost	Freehold land and buildings	Leasehold land and buildings	Sub-total	Plant and machinery	Renovation	Other assets	Motor vehicles	Total
		US$’000	US$’000	US$’000	US$’000	US$’000	US$’000	US$’000	US$’000
	Balance as at 1 July2020	5,326	9,343	14,669	26,728	4,234	3,800	702	50,133
	Additions	-	-	-	2,266	30	27	29	2,352
	Disposal	-	-	-	(1,778)	-	-	(8)	(1,786)
	Cost as at 31 December 2020	5,326	9,343	14,669	27,216	4,264	3,827	723	50,699
	Accumulated depreciation
	Balance as at 1 July2020	-	-	-	10,218	3,297	2,978	517	17,010
	Depreciation expenses	-	-	-	1,306	164	129	38	1,637
	Disposal	-	-	-	(298)	-	-	(8)	(306)
	Accumulated depreciation as at 31 December 2020	-	-	-	11,226	3,461	3,107	547	18,341
	Net book value
	As at 30 June 2020	5,326	9,343	14,669	16,510	937	822	185	33,123
	As at 31 December 2020	5,326	9,343	14,669	15,990	803	720	176	32,358

Other assets comprise of computers, furniture and fittings, hostel and office equipment

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GLG Corp Limited Notes to the consolidated financial statements

9. Intangible Assets

		Consolidated	Consolidated
Cost	Software	Goodwill	Trademark & customers network	Others	Total
	US$’000	US$’000	US$’000	US$’000	US$’000
Balance as at 1 July2020	2,153	1,841	2,518	407	6,919
Additions	-	-	-	-	-
Impairment	-	841	-	-	841
Balance as at 31 December 2020	2,153	1,000	2,518	407	6,078
Accumulated Amortisation
Balance as at 1 July2020	122	-	252	136	510
Amortisation	110	-	126	68	304
Balance as at 31 December 2020	232	-	378	204	814
Net book value
As at 30 June 2020	2,031	1,841	2,266	271	6,409
As at 31 December 2020	1,921	1,000	2,140	203	**5,264 **

Software

Computer software is stated as intangible assets in the statement of financial position and amortised on the straightline method over 3 -10 years.

Goodwill – recognition and measurement

All business combinations are accounted for by applying the acquisition method. Goodwill represent the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired and has an indefinite useful life. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is assessed as part of the Ghim Li Fashion (M) Sdn Bhd CGU. Goodwill is not amortised but is subject to impairment testing on an annual basis or whenever there is an indication of impairment.

Trademark and customers network

Trademark and customers network are stated as intangible assets in the statement of financial position and amortised on the straight-line method over 10 years.

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GLG Corp Limited Notes to the consolidated financial statements

10. Trade and other payable

Trade and other payable
As at	31 December 2020	30 June 2020
	US$’000	US$’000
Tradepayables(i)	9,867	8,153
Otherpayables	3,593	3,645
Ghim Li Group (ii)	-	17,908
Accruals	3,672	3,282
	17,132	32,988
Less:
Receivables from Ghim Li Group (ii)	-	(7,480)
Total Trade and other payables	17,132	25,508

(i) The average credit period on purchases of certain goods is 4 months. No interest is charged on the outstanding balance of trade payables. GLG has financial risk management policies in place to ensure that all payables are paid within the credit time frame.

(ii) The 30 June 2020 payable due to Ghim Li Group (majority shareholder of GLG) represents the outstanding amount of contingent consideration of US$13.3m owed by GLG for the purchase consideration payable for the acquisition of Maxim entities in December 2016, along with additional loan from Ghim Li Group to GLG of US$4.6m and receivables of US$7.5m from Maxim SG to Ghim Li Group. This balance was fully settled during the period ended 31 December 2020.

11. Related party transactions

Transactions with other related parties

During the year, GLG entities entered into the following expenditure transactions with related parties that are not members of GLG:

Rental Utilities	Transaction with Ghim Li Group Pte Ltd (majority shareholder)
	31 Dec 2020 31 Dec 2019 US$’000 US$’000 728 728 23 25
	751 753

No amounts were provided for doubtful debts relating to debts due from related parties at reporting date. Amounts payable to these related parties are disclosed in note 9 to the financial statements.

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