Legion Consortium Limited

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 2129)

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2021

The board (the “ Board ”) of directors (the “ Directors ”) of Legion Consortium Limited (the “ Company ”) is pleased to present the unaudited consolidated results of the Company and its subsidiaries (hereinafter collectively referred to as the “ Group ”) for the six months ended 30 June 2021 together with comparative figures for the corresponding period in 2020 as follows:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER

COMPREHENSIVE INCOME

For the six months ended 30 June 2021

Notes Revenue 6 Cost of services Gross profit Other income 7 Other gains and losses 8 Selling expense Administrative expenses Finance costs 9 Listing expenses 10 Profit before tax Income tax expense 11 Profit and other comprehensive income for the period 10 Basic and diluted earnings per share (Singapore cents) 13	30 June 2021 (unaudited) S$ 21,425,543 (14,846,325) 6,579,218 428,321 173,134 (48,808) (4,628,575) (122,007) (815,030) 1,566,253 (420,492) 1,145,761 0.09	30 June 2020 (unaudited) S$ 19,656,168 (12,557,338) 7,098,830 734,618 229,406 (32,433) (3,904,240) (113,159) (610,322) 3,402,700 (628,920) 2,773,780 0.27

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2021

Notes ASSETS AND LIABILITIES Non-current assets Property, plant and equipment 14 Investment properties 15 Intangible assets 16 Deposits 18 Current assets Trade receivables 17 Other receivables, deposits and prepayments 18 Amount due from related parties 19 Restricted bank deposit 20 Bank balances and cash 20 Current liabilities Trade and other payables 21 Amount due to related parties 19 Lease liabilities 22 Bank borrowings 23 Provisions 24 Income tax payable Net current assets Non-current liability Trade and other payables 21 Lease liabilities 22 Bank borrowings 23 Provisions 24 Deferred tax liabilities 25 Total liabilities Net assets EQUITY Share capital 26 Reserves Total equity attributable to owners of the Company	As at 30 June 2021 (unaudited) S$ 8,144,724 3,930,746 117,862 576,646 12,769,978 9,559,628 4,644,191 3,342 450,000 22,683,278 37,340,439 3,204,546 82,932 3,045,845 45,377 133,000 994,057 7,505,757 29,834,682 750,380 1,604,692 557,990 347,000 369,500 3,629,562 11,135,319 38,975,098 2,133,905 36,841,193 38,975,098	As at 31 December 2020 (audited) S$ 7,973,790 4,023,795 133,265 576,646 12,707,496 9,914,734 2,004,852 6,147 450,000 12,740,393 25,116,126 4,115,834 99,711 2,585,253 95,292 — 1,390,221 8,286,311 16,829,815 564,980 1,984,528 1,001,229 480,000 426,500 4,457,237 12,743,548 25,080,074 134,698 24,945,376 25,080,074

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2021

1 GENERAL

The Company was incorporated and registered as an exempted company in the Cayman Islands with limited liability on 20 June 2018. The registered office of the Company is Windward 3, Regatta Office Park, PO Box 1350, Grand Cayman KY1-1108, Cayman Islands. The principal place of business of the Company in Singapore is at 7 Keppel Road, #03-22, Tanjong Pagar Complex, Singapore and in Hong Kong is at Unit 912, 9/F, Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong.

The Company is an investment holding company. The Company’s subsidiaries were engaged in the provision of trucking services, freight forwarding services, and value added transport services (“VATS”).

The shares of the Company were listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) on 13 January 2021.

Mirana Holdings Limited (“Mirana Holdings”), a company incorporated in the British Virgin Islands (the “BVI”), is the immediate holding company of the Company, and in the opinion of the Directors, which is also the ultimate holding company of the Company.

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The Company has direct and indirect interests in its subsidiaries, all of which are private limited liability companies (or, if incorporated outside Hong Kong, have substantially similar characteristics to a private company incorporated in Hong Kong), the particulars of which are set out below:

	Country of	Percentage of equity	Percentage of equity
Company name	incorporation	attributable to the Company		Principal activities
		Direct	Indirect
		%	%
Held by the Company
Clear Bliss Holdings Limited	BVI	100	—	Investment holding
Held through a subsidiary
Rejoice Container Services	Singapore	—	100	Trucking and VATS
(Pte) Ltd
Radiant Overseas Pte Ltd	Singapore	—	100	Freight forwarding
Richwell Global Forwarding	Singapore	—	100	Freight forwarding
Pte. Ltd.
Real Time Forwarding Pte. Ltd.	Singapore	—	100	Freight forwarding
Relief Logistics Pte. Ltd.	Singapore	—	100	Freight transport
Will Knight Limited	Hong Kong	—	100	Business
				development

The historical financial information are expressed in Singapore dollars (“S$”), which is also the functional currency of the Company. No statutory financial statements of the Company have been prepared since its date of incorporation as it is incorporated in the jurisdiction where there are no statutory audit requirements.

2 GROUP REORGANISATION AND BASIS OF PREPARATION AND PRESENTATION OF THE HISTORICAL FINANCIAL INFORMATION

For the purpose of the listing of the shares of the Company on the Stock Exchange, the companies comprising the Group underwent a group reorganisation (the “Reorganisation”) as set out in the section headed “History, Development and Reorganisation” to the prospectus of the Company dated 30 December 2020.

The Group resulting from the Reorganisation is regarded as a continuing entity. Accordingly, the interim condensed consolidated financial statements have been prepared to include the financial statements of the companies now comprising the Group.

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3 ADOPTION OF NEW AND REVISED STANDARDS

New and amended IFRSs that are effective for the current period

In the current period, the Group has applied the amendments to IFRS Standards and Interpretations issued by the Board that are effective for an annual period that begins on or after 1 January 2021. Their adoption has not had any material impact on the disclosures or on the amounts reported in these consolidated financial statements, except as discussed below:

Impact of the initial application of Covid-19-Related Rent Concessions Amendment to IFRS 16

In 2020, the Group has applied the amendment to IFRS 16 (as issued by the IASB in May 2020) in advance of its effective date.

The Group has applied the practical expedient retrospectively to all rent concessions that meet the conditions in IFRS 16: 46B, and has not restated prior period figures.

New and revised IFRS Standards in issue but not yet effective

At the date of authorisation of these consolidated financial statements, the Group has not applied the following new and revised IFRS Standards that have been issued but are not yet effective:

IFRS 17	Insurance Contracts1
IFRS 10 and IAS 28 (amendments)	Sale or Contribution of Assets between an investor and its
	Associate or Joint Venture3
Amendments to IAS 1	Classification of Liabilities as Current or
	Non-current1
Amendments to IFRS 3	Reference to the Conceptual Framework2
Amendments to IAS 16	Property, Plant and Equipment – Proceeds before Intended Use2
Amendments to IAS 37	Onerous Contracts – Cost of Fulfilling a Contract2
Amendments to IAS 1 and	Disclosure of Accounting Policies1
IFRS Practice Statement 2
Amendments to IAS 8	Definition of Accounting Estimates1

The directors do not expect that the adoption of the new and amendments to IFRSs and IASs listed above will have a material impact on the consolidated financial statements of the Group in future periods.

1 Effective for annual periods beginning on or after 1 January 2023
2 Effective for annual periods beginning on or after 1 January 2022
3 Date to be determined

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4 SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting

The consolidated financial statements of the Group have been prepared in accordance with IFRS issued by the IASB.

In addition, the consolidated financial statements include applicable disclosures required by the Rules Governing the Listing of Securities on the Stock Exchange and the applicable disclosures required by the Companies Ordinance.

5 CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Group’s management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

6 REVENUE AND SEGMENT INFORMATION

Revenue represents the fair value of amounts received and receivable from provision of trucking services, freight forwarding services and VATS by the Group to external customers, also represents the revenue from contracts with customers. This is consistent with the revenue information that is disclosed for each operating and reportable segment under IFRS 8. During the six months ended 30 June 2021 and 2020, there is no inter-segment sales.

Information is reported to the Mr. Ng, which is also the Chief Operating Decision Maker (“CODM”) of the Group, for the purposes of resource allocation and performance assessment. The CODM reviews segment revenue and results attributable to each segment, which is measured by reference to respective segments’ gross profit. The segment information is defined by nature of services provided:

‧ Trucking services
‧ Freight forwarding services
‧ VATS

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No further detailed analysis of the Group’s results nor assets and liabilities is regularly provided to the CODM for review.

An analysis of the Group’s revenue and segment result for the financial periods are as follows:

Revenue from external customers – Trucking services – Freight forwarding services – VATS Segment result – Trucking services – Freight forwarding services – VATS	30 June 2021 (unaudited) S$ 8,750,185 10,204,942 2,470,416 21,425,543 2,881,494 2,642,577 1,055,147 6,579,218	30 June 2020 (unaudited) S$ 10,375,009 7,464,711 1,816,448 19,656,168 3,761,714 2,289,419 1,047,697 7,098,830

The Group derives its revenue from provision of trucking services, freight forwarding services and VATS over time. As permitted under IFRS 15, the transaction price allocated to these unsatisfied contracts is not disclosed.

During the six months ended 30 June 2021 and 2020, the contract prices for trucking services and freight forward services are agreed based on factors such as weight and distance etc. and for VATS are based on storage space occupied and storage duration.

The accounting policies for segment information are the same as Group’s accounting policies with segment results represent the profit earned by each segment without allocation of other income, other gains and losses, selling expenses, administrative expenses, impairment gains and losses (including reversals of impairment losses), finance costs and listing expenses.

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Geographical information

The Group principally operates in Singapore, which is also the place of domicile. The Group’s all noncurrent assets other than financial assets are all located in Singapore.

Information about major customers

During the six months ended 30 June 2021 and 2020, no single customer contributes 10% or more of total revenue of the Group.

7 OTHER INCOME

Government grants (Note 1) Interest income Rental income Yard utilities income Others	30 June 2021 (unaudited) S$ 262,549 3,419 133,655 9,039 19,659 428,321	30 June 2020 (unaudited) S$ 561,899 1,768 152,347 8,969 9,635 734,618

Note:

(1) The government grants received mainly comprise Wage Credit Scheme (“WCS”), Productivity Innovation Credit (“PIC”), Temporary Employment Credit (“TEC”), Special Employment Credit (“SEC”), Job Support Scheme (“JSS”) and Foreign Worker Levy Rebates (“FWL Rebates”), all of them are compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs.

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8 OTHER GAINS AND LOSSES

Net impairment (loss) gains Gain on disposal of property and equipment, net Net foreign exchange (losses) gains 9 FINANCE COSTS Interest on: Bank borrowings Lease liabilities	30 June 2021 (unaudited) S$ (922) 30,669 143,387 173,134 30 June 2021 (unaudited) S$ 18,562 103,445 122,007	30 June 2020 (unaudited) S$ 173,496 960 54,950 229,406 30 June 2020 (unaudited) S$ 18,807 94,352 113,159

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10 PROFIT FOR THE PERIOD

Profit for the period has been arrived at after charging (crediting):

Depreciation of property, plant and equipment – Recognised as cost of services – Recognised as administrative expenses Depreciation of investment property Amortisation of intangible assets Listing expenses Directors’ remuneration Other staff costs: – Salaries and other benefits – Contributions to CPF Total staff costs (including directors’ remuneration) (Note i) Gross rental income from investment property recognised as other income (Note 7) Less: Direct operating expenses incurred for investment property that generated rental income	30 June 2021 (unaudited) S$ 1,567,606 229,530 1,797,136 93,049 21,394 815,030 563,200 4,033,114 331,471 4,927,785 133,655 (120,155) 13,500	30 June 2020 (unaudited) S$ 1,181,707 123,828 1,305,535 94,570 25,013 610,322 407,250 3,733,131 271,510 4,411,891 152,347 (115,527) 36,820

Notes:

(i) The total staff costs of S$1,497,163 (30 June 2020: S$1,401,048) is included in cost of services and S$3,430,622 (30 June 2020: S$3,010,843) is included in administrative expenses respectively.

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11 INCOME TAX EXPENSE

Tax expense comprises: Current tax: – Singapore corporate income tax (“CIT”) Deferred tax expense (Note 25)	30 June 2021 (unaudited) S$ 477,492 (57,000) 420,492	30 June 2020 (unaudited) S$ 628,920 — 628,920

Singapore CIT is calculated at 17% of the estimated assessable profit and the subsidiaries in Singapore can also enjoy 75% tax exemption on the first S$10,000 of chargeable income and a further 50% tax exemption on the next S$190,000 of chargeable income for both the Year of Assessment 2021 and 2022.

The income tax expense for the period can be reconciled to the profit before taxation per the consolidated statement of profit or loss and other comprehensive income as follows:

Profit before taxation Tax at applicable tax rate of 17% Tax effect of expenses not deductible for tax purpose Tax effect of income not taxable for tax purpose Effect of tax concessions and partial tax exemptions Taxation for the period	30 June 2021 (unaudited) S$ 1,566,253 266,263 201,671 (16,344) (31,098) 420,492	30 June 2020 (unaudited) S$ 3,402,700 578,459 157,103 (70,516) (36,126) 628,920

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12 DIVIDENDS

No dividend has been declared by the Company or any Group entities during the six months ended 30 June 2021 or subsequent to the month end.

Dividend of S$4 million has been declared and paid out by the Group entities during the year ended 31 December 2020.

13 EARNINGS PER SHARE

Profit for the period attributable to the owners of the Company (S$) Weighted average number of ordinary shares in issue Basic and diluted earnings per share (S$ cents)	30 June 2021 (unaudited) 1,145,761 1,250,000,000 0.09	30 June 2020 (unaudited) 2,773,780 1,015,625,000 0.27

The calculation of basic earnings per share for the six months ended 30 June 2021 and 2020 is based on the profit for the period attributable to owners of the Company and the weighted average number of shares in issue.

The weighted number of ordinary shares for the purpose of calculating basic earnings per share for the six months ended 30 June 2020 had been determined on the assumption that the Group Reorganisation to enable the Company to become the holding Company of the Group had been effective on 1 January 2020 and 1,015,625,000 shares in issue upon completion of the Group Reorganisation as detailed in Note 2.

Diluted earnings per share is the same as the basic earnings per share because the Group has no dilutive securities that are convertible into shares during the six months ended 30 June 2021 and 2020.

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14 PROPERTY, PLANT AND EQUIPMENT

		Computer				Furniture
		and office	Motor	Leasehold	Leasehold	and
	Machinery	equipment	vehicles	buildings	improvement	fittings	Total
	S$	S$	S$	S$	S$	S$	S$
Cost:
At 1 January 2020	1,304,784	470,876	13,037,366	4,920,923	1,064,029	52,807	20,850,785
Additions	—	92,051	48,383	2,225,118	57,944	1,759	2,425,255
Disposals/Written off	—	(39,149)	—	(55,577)	—	—	(94,726)
At 31 December 2020	1,304,784	523,778	13,085,749	7,090,464	1,121,973	54,566	23,181,314
Additions	—	34,861	—	—	1,947,455	5,428	1,987,744
Disposals/Written off	—	—	(414,874)	—	—	—	(414,874)
At 30 June 2021	1,304,784	558,639	12,670,875	7,090,464	3,069,428	59,994	24,754,184
Accumulated depreciation:
At 1 January 2019	1,115,857	345,032	9,004,513	779,400	1,025,518	46,975	12,317,295
Charge for the year	144,507	76,297	673,888	2,048,890	33,560	3,957	2,981,099
Disposals/Written off	—	(35,293)	—	(55,577)	—	—	(90,870)
At 31 December 2020	1,260,364	386,036	9,678,401	2,772,713	1,059,078	50,932	15,207,524
Charge for the period	12,774	34,733	338,144	1,365,086	44,576	1,825	1,797,136
Disposals/Written off	—	—	(395,200)	—	—	—	(395,200)
At 30 June 2021	1,273,138	420,769	9,621,345	4,137,799	1,103,654	52,757	16,609,460
Carrying amounts:
At 31 December 2020	44,420	137,742	3,407,348	4,317,751	62,895	3,634	7,973,790
At 30 June 2021	31,646	137,870	3,049,530	2,952,665	1,965,774	7,237	8,144,724

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The above items of property, plant and equipment are depreciated on a straight-line basis at the following useful lives:

Machinery	5 years
Company and office equipment	3 – 5 years
Motor	10 years
Leasehold buildings	Lease terms of 2 – 3 years
Leasehold improvement	Shorter of 5 years and lease term
Furniture and fittings	3 – 5 years

The carrying value of rights-of-use assets and the depreciation by classes of rights-of-use assets are set out as below:

Carrying values Leasehold buildings Computer and office equipment Motor vehicles Depreciation recognised in profit and loss Leasehold buildings Computer and office equipment Motor vehicles Additions Leasehold buildings Computer and office equipment Motor vehicles	As at 30 June 2021 (unaudited) As at 31 December 2020 (audited) S$ S$ 4,565,554 4,317,751 40,146 49,916 — 1,217,417 4,605,700 5,585,084 For the six months ended 30 June 2021 (unaudited) 30 June 2020 (unaudited) S$ S$ 1,349,920 844,180 9,774 8,540 — 46,646 1,359,694 899,366 1,597,722 — — 22,180 — — 1,597,722 22,180
	30 June 2021 (unaudited) S$ 1,349,920 9,774 — 1,359,694 1,597,722 — — 1,597,722

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15 INVESTMENT PROPERTIES

Cost: At 1 January 2020, 31 December 2020 and 30 June 2021 Accumulated depreciation: At 1 January 2020 Charge for the year At 31 December 2020 Charge for the period At 30 June 2021 Carrying amount: At 31 December 2020 At 30 June 2021	Investment properties
	S$ 5,528,341
	1,315,406 189,140
	1,504,546 93,049
	1,597,595
	4,023,795
	3,930,746

The investment properties comprise industrial properties that are leased to external customers. The leases contain initial non-cancellable period of between 1 to 4 years. Subsequent renewal are negotiated with the lessees. Investment properties with net carrying value amounting to S$972,477 (31 December 2020: S$1,780,090) are mortgaged to the bank to secure bank loans (Note 23).

The above items of investment properties are depreciated on a straight-line basis over 30 years after taking into account the residual values.

As at 30 June 2021, the fair values of the investment property amounted to S$5,900,000. The fair value measurement of the Group’s investment property as at 31 August 2020 was carried out by Ravia Global Appraisal Advisory Limited, an independent valuer not related to the Group, and who has the appropriate qualifications and relevant experience. Management has assessed that the key inputs and assumptions used by the valuer for valuation date 31 August 2020 remain applicable and reasonable as at 31 December 2020 and 30 June 2021. The fair values are based on comparable market transactions of similar properties in the neighbourhood that have been transferred in the open market.

The investment properties are categorised within level 3 of the fair value hierarchy.

In estimating the fair value of the property, the highest and best use of the property is its current use.

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16 INTANGIBLE ASSETS

Cost: At 1 January 2020 Charge for the year At 31 December 2020 Charge for the period At 30 June 2021 Accumulated amortisation: At 1 January 2020 Charge for the year At 31 December 2020 Charge for the period At 30 June 2021 Carrying values: At 31 December 2020 At 30 June 2021	Software
	S$ 336,446 6,195
	342,641 5,991
	348,632
	161,262 48,114
	209,376 21,394
	230,770
	133,265
	117,862

The intangible assets included above consist of software with useful live of 3 to 5 years, over which the assets are amortised, after taking into account the residual values.

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17 TRADE RECEIVABLES

Trade receivables Allowance for doubtful receivable	As at 30 June 2021 (unaudited) S$ 9,706,786 (147,158) 9,559,628	As at 31 December 2020 (audited) S$ 10,064,011 (149,277) 9,914,734

The Group provides trucking services to new customers at cash upon delivery and grants credit terms to other customers typically ranging from 30 to 90 days from the invoice date for trade receivables.

The following is an aged analysis of trade receivables, net of allowance for doubtful debts, presented based on the invoice date which approximated the revenue recognition date at the end of each financial period:

Within 30 days 31 days to 60 days 61 days to 90 days 91 days to 180 days 181 days to 1 year Over 1 year	As at 30 June 2021 (unaudited) S$ 4,773,800 1,515,588 1,307,030 1,064,339 338,914 559,957 9,559,628	As at 31 December 2020 (audited) S$ 4,111,077 3,037,013 1,357,659 738,419 333,811 336,755 9,914,734

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The following table shows the movement in lifetime ECL that has been recognised for trade receivables under the simplified approach.

1 January 2020 Credit impaired receivable (individually assessed) Write-offs Reversal of provision from prior year 31 December 2020 Write-offs 30 June 2021	Lifetime ECL (credit-impaired) S$ 456,000 161,908 (202,631) (266,000) 149,277 (2,119) 147,158

18 OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS

Rental and other deposits Prepayments Staff advances Grant receivable (Note a) Deferred issue costs Issue costs reimbursable by a shareholder (Note b) Others Analysed as: – Current – Non-current	As at 30 June 2021 (unaudited) S$ 4,431,798 172,308 50,750 — — 370,257 195,724 5,220,837 4,644,191 576,646 5,220,837	As at 31 December 2020 (audited) S$ 794,348 179,156 49,200 101,017 1,062,645 354,215 40,917 2,581,498 2,004,852 576,646 2,581,498

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Note:

(a) As at 30 June 2021, the Group was not eligible for any further Job Support Scheme (“JSS”), a government grant announced to provide wage support to employers to help them retain their local employees (Singapore Citizens and Permanent Residents) during the period of economic uncertainty caused by the COVID-19. Grant receivable and a deferred grant income (Note 21) are recognised when the Group has fulfilled the conditions to receive the grant.
(b) The balance is interest free and will be repaid within 12 months from the date of this report.

19 AMOUNT DUE FROM (TO) RELATED PARTIES

The average credit period for services provision from/to the related parties is 30 days. The balances as at 30 June 2021 are aged within 30 days (31 December 2020: 30 days) presented based on the invoice date.

20 BANK BALANCES AND CASH

Cash and bank balances Pledged deposits	As at 30 June 2021 (unaudited) S$ 22,683,278 450,000 23,133,278	As at 31 December 2020 (audited) S$ 12,740,393 450,000 13,190,393

As at 30 June 2021, bank balances of S$22,683,278 (31 December 2020: S$12,740,393) carry interest ranging from 0.01% to 0.05% (31 December 2020: 0.01% to 0.05%) per annum.

As at 30 June 2021, included in the pledged deposit of S$450,000 (31 December 2020: S$450,000) represents restricted bank deposit for issuance of letter of credits with original maturity of 6 months to 1 year and being renewed automatically by month.

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21 TRADE AND OTHER PAYABLES

Trade payables GST payables Customer deposits Accrued operating expenses Accrued listing expenses Deferred grant income Others Analysed as: – Current – Non-current (Note a)	As at 30 June 2021 (unaudited) S$ 1,428,944 175,208 822,380 1,273,743 — — 254,651 3,954,926 3,204,546 750,380 3,954,926	As at 31 December 2020 (audited) S$ 955,697 191,718 636,980 1,260,928 1,459,933 163,514 12,044 4,680,814 4,115,834 564,980 4,680,814

Note:

(a) Non-current trade and other payables arise from customer deposit for yard rental. The lease term for these yard rental range from 1 to 3 years (31 December 2020: 1 to 3 years).

The following is an aged analysis of trade payables presented based on the invoice date at the end of each reporting period:

	As at	As at
	30 June	31 December
	2021	2020
	(unaudited)	(audited)
	S$	S$
Within 30 days	871,433	644,002
31 to 60 days	358,012	261,847
61 to 90 days	146,171	32,485
Over 90 days	53,328	17,363
	1,428,944	955,697

The credit period on purchases from suppliers is between 0 to 30 days or payable upon delivery.

22 LEASE LIABILITIES

Minimum lease payments due: – Within one year – More than one year but not more than two years – More than two years but not more than five years Less: Amount due for settlement within one year shown under current liabilities Amount due for settlement after one year shown under non-current liabilities	As at 30 June 2021 (unaudited) S$ 3,045,845 1,584,390 20,302 4,650,537 (3,045,845) 1,604,692	As at 31 December 2020 (audited) S$ 2,585,253 1,638,998 345,530 4,569,781 (2,585,253) 1,984,528

The Group leases offices, staff dormitory and warehouses, computer and office equipment and motor vehicles for operation and these lease liabilities were measured at the present value of the lease payment that are not yet paid. All leases are entered at fixed prices.

The Group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the Group’s treasury function.

Extension options are not involved in lease agreements entered by the Group.

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23 BANK BORROWINGS

Secured and guaranteed - at amortised cost: Bank loans Analysed as: Carrying amount repayable: – Within one year – More than one year, but not exceeding two years – More than two years, but not exceeding five years – More than five years Less: Amount due for settlement within 12 months (show under current liabilities) Amount due for settlement after one year shown under non-current liabilities	As at 30 June 2021 (unaudited) S$ 603,367 45,377 46,210 144,303 367,477 603,367 (45,377) 557,990	As at 31 December 2020 (audited) S$ 1,096,521 95,292 100,277 328,408 572,544 1,096,521 (95,292) 1,001,229

The bank borrowings are secured by:

(i) First legal mortgage over the Group’s investment properties (Note 15); and
(ii) Joint and several guarantees from the directors and shareholders of the Group in their personal capacities.

As at 30 June 2021, the weighted average effective interest rate of the loans is 6.25% (31 December 2020: ranged 2.48% to 4.18%). The amounts are repayable at the dates throughout to 2033.

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24 PROVISIONS

At beginning of the period Additions At end of the period Analysed as: – Current – Non-current	As at 30 June 2021 (unaudited) S$ 480,000 — 480,000 133,000 347,000 480,000	As at 31 December 2020 (audited) S$ 389,000 91,000 480,000 — 480,000 480,000

Provisions for reinstatement cost were recognised for the expected costs associated with restoring the requirements of the lease contract, based on the estimated costs of dismantlement, removal and restoration to be incurred for yard spaces. The provisions is based on estimates made from historical data associated with reinstatement works incurred for similar properties, adjusted for the size of the properties.

25 DEFERRED TAX LIABILITIES

The following are the deferred tax liabilities recognised and the movements thereon:

At beginning of the period (Credit) Charged to profit or loss for the period (Note 11) At end of the period	As at 30 June 2021 (unaudited) S$ 426,500 (57,000) 369,500	As at 31 December 2020 (audited) S$ 438,924 (12,424) 426,500

The deferred tax liabilities resulted from temporary taxable differences arising from accelerated depreciation in relation to capital allowance claims on qualified assets in accordance with prevailing tax law in Singapore.

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26 SHARE CAPITAL

The shares of the Company were successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited on 13 January 2021 by way of placement of 156,250,000 ordinary shares and public offer of 156,250,000 ordinary shares at the price of HK$0.40 per share (“Share Offer”).

Authorised share capital of the Company: At 1 January 2019, 31 December 2019 and at 1 January 2020 Increase on 18 December 2020 (Note a) As at and 31 December 2020 and 30 June 2021 Issued and fully paid of the Company 1 January 2020 Issue of shares pursuant to the Reorganisation (Note At 31 December 2020 Capitalisation issue (Note a) Issue of shares under the initial public offering At 30 June 2021	Number of ordinaryshares 38,000,000 1,962,000,000 2,000,000,000 2)	Par Value HK$ 0.01 0.01 Number of ordinaryshares 1 78,124,999 78,125,000 937,500,000 234,375,000 1,250,000,000	Share capital
			HK$ 380,000 19,620,000
			20,000,000
			Share capital
			S$ —* 134,698
			134,698 1,599,366 399,841
			2,133,905

The amount is less than S$1.

Notes:

(a) Pursuant to the written resolution on 18 December 2020, it was resolved that the authorised share capital of the Company was increased from HK$380,000 divided into 38,000,000 Shares of par value of HK$0.01 to HK$20,000,000 divided into 2,000,000,000 Shares of par value of HK$0.01 each by the creation of 1,962,000,000 Shares of par value of HK$0.01 each; and conditional on the share premium account of the Company being credited as a result of the Share Offer, an amount of HK$9,375,000 which will then be standing to the credit of the share premium account of the Company be capitalised and applied to pay up in full at par a total of 937,500,000 shares for allotment, each ranking pari passu in all respects with the Shares then in issue.

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MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS REVIEW AND PROSPECTS

The Group is a well-established logistics service provider in Singapore offering trucking, freight forwarding and VATS to our customers.

The Group has developed a reputation as an integrated logistics solution provider equipped with a vehicle fleet, logistics yards, and experienced management team.

As at 30 June 2021, the Group had a vehicle fleet comprising 51 prime movers, 499 trailers and three flat vans, and machineries comprising two reach stackers and two forklifts. Furthermore, we are operating three logistics yards of approximately 38,240 sq. m. for the provision of our open-yard storage services as part of our VATS.

The Company was successfully listed on the Main Board of the Stock Exchange on 13 January 2021. It represents an important milestone to the Group and will greatly benefit the Group’s further development in the future.

Prospects

Since the outbreak of the COVID-19, the Singapore government has taken emergency public health and safe distancing measures to reduce the risk of further local transmission of COVID-19. The measures include the closure of workplace premises and enhanced safe distancing measures. According to the Singapore Ministry of Trade and Industry (MTI), the Singapore economy grow by 14.7 per cent in second quarter of 2021 as compared to the similar period in 2020, with the container throughput for first half of 2021 increasing 5.0 % as compared to the similar period in 2020.

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The logistics sector remains a key cornerstone of Singapore’s economy. Not only does it play a critical role in connecting various supply chains, it also supports the operational continuity of other industries. Recognised for its importance, it has been identified to be one of the recipients of pro-government policies by the Singapore government such as i) economic diversification; ii) Logistics Industry Transformation Map; and iii) Singapore’s Mega Port development. Singapore has also pivot itself as the main Southeast Asian for major alliances boost logistics opportunities with various joint venture efforts making Singapore the primary port of call for its services and main hub for major shipping lines and alliances.

FINANCIAL REVIEW

Revenue

Revenue increased by approximately 8.6% from approximately S$19.7 million for the six months ended 30 June 2020 to approximately S$21.4 million for the six months ended 30 June 2021. The increase was mainly attributable to the opening of global economy following better control of the COVID-19 situation by larger countries such as China, Europe and the United States of America following aggressive vaccination efforts.

Trucking services

Our Group’s trucking services revenue was approximately S$10.4 million and S$8.7 million for the six months ended 30 June 2020 and 2021 respectively. Trucking revenue consists of revenue from transportation fees in relation to the transportation of cargo. The decrease of S$1.7 million or 16.3% was mainly due to border restrictions imposed by the Singapore government to control the COVID-19 situation which has greatly impact the driver’s retention and recruitment efforts causing driver shortage, and the slowdown in customers importing COVID-19 essentials.

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Freight forwarding services

Our Group’s revenue from freight forwarding services was approximately S$7.5 million and S$10.2 million for the six months ended 30 June 2020 and 2021 respectively. Revenue from freight forwarding services consists of fees from import and export freight forwarding arrangement (by either air or sea), local trucking and haulage to and from airport/seaport and customers/warehouses, as well as other related services such as cargo permit declaration and crating. Such revenue is mainly driven by the volume of goods, type of services provided, type of cargoes, among other factors. The increase of S$2.7 million or 36.0% was due to the recovery of the global trade from COVID-19.

VATS

Our Group’s revenue from VATS was approximately S$1.8 million and S$2.5 million for the six months ended 30 June 2020 and 2021 respectively. Revenue from VATS consists of openyard storage fees, stuffing and unstuffing fees and transportation fees for the container haulage between our logistics yard and our customers’ designated pick up and/or delivery points. Such revenue is primarily driven by land area that the containers are stored for. The increase of S$0.7 million or 38.9% was due to the revenue generated from the new logistics yard leased in June 2020.

Gross Profit and Gross Profit Margin

For the six months ended 30 June 2020 and 2021, we recorded a gross profit of approximately S$7.1 million and S$6.6 million respectively. The decrease of S$0.5 million or approximately 7.0% was due to the more competitive landscape caused by COVID-19 on the local trucking industry. The trucking revenue decreased by 16.3% while certain operational fixed costs remained constant, this impact was offset by the better performing freight forwarding and VATS segment with the new logistics yard leased in June 2020. Trucking services accounted for approximately 53.5% and 43.9% of our total gross profit for the six months ended 30 June 2020 and 2021 respectively. Freight forwarding services accounted for approximately 32.4% and 39.4% of our total gross profit for the six months ended 30 June 2020 and 2021 respectively. VATS accounted for approximately 14.1% and 16.7% of our total gross profit for the six months ended 30 June 2020 and 2021 respectively.

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For the six months ended 30 June 2020 and 2021, we recorded a gross profit margin of approximately 36.0% and 30.8% respectively. Gross profit margin for trucking services were approximately 36.5% and 33.3% for the six months ended 30 June 2020 and 2021 respectively. The decrease in gross profit margin of trucking services was due to the decrease in trucking revenue by 16.3%. The border restrictions imposed by the Singapore government to control the COVID-19 situation has greatly impact the driver’s retention and recruitment efforts. Gross profit margin for freight forwarding services decreased from approximately 30.7% to 25.5% for the six months ended 30 June 2020 and 2021 respectively due to the more competitive landscape caused by the decrease in global freight prices with freight forwarders having to mark down accordingly to remain competitive. Gross profit margin for VATS decreased from approximately 55.6% to 44.0% for the six months ended 30 June 2020 and 2021 respectively. The decrease in gross profit margin of VATS was due to the increase in costs incurred in the new logistics yard leased in June 2020.

Other income

Our Group reported other income of approximately S$0.7 million and S$0.4 million for the six months ended 30 June 2020 and 2021 respectively. Other income mainly relates to government grants which mainly comprise of the Wage Credit Scheme, Productivity Innovation Credit, Temporary Employment Credit, Special Employment Credit, Jobs Support Scheme (“JSS”) and Foreign Worker Levy Rebates, interest income and rental income from investment properties. The JSS was introduced by the Singapore government in February 2020 to help businesses retain their local employees during the period of uncertainty caused by the outbreak of COVID-19 and the Group received grants under this scheme of approximately S$0.4 million and S$0.3 million for the six months ended 30 June 2020 and 2021 respectively.

Other gains and losses

Our Group reported other gains of approximately S$0.2 million for both the six months ended 30 June 2020 and 2021. Other gains and losses relate to gain on disposal of property and equipment, loss on disposal of intangible assets and net foreign exchange gains or losses.

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Administrative expenses

Our Group reported administrative expenses of approximately S$3.9 million and S$4.6 million for the six months ended 30 June 2020 and 2021 respectively. Administrative expenses for our Group primarily consist of directors’ remuneration cost, staff cost, depreciation and amortisation expenses and other miscellaneous expenses. Directors’ remuneration cost includes Directors’ remuneration. Staff cost includes office staff salary, CPF contribution and bonuses. Depreciation and amortisation expenses include property depreciation, office equipment depreciation and software amortisation. Miscellaneous expenses include office expenses such as utility expenses, insurance expenses and office rental expenses as well as professional expenses such as audit and secretarial fees and other expenses. The increase in the administrative expenses of approximately S$0.7 million is mainly due to the increase in staff cost from a discretionary bonus provided to staff in recognition of their contribution to the successful listing of the Company on the Stock Exchange.

Income tax expense

As our operations are based in Singapore, the Group is liable to pay corporate income tax in accordance with the tax regulations of Singapore. Income tax expense of the Group amounted to approximately S$0.6 million and S$0.4 million for the six months ended 30 June 2020 and 2021 respectively. The decrease of approximately S$0.2 million or 33.3% was due to the decrease in profit before tax.

The statutory corporate tax rate in Singapore was 17% for the six months ended 30 June 2020 and 2021, while our corresponding effective tax rates were approximately 17.6% and 25.0% respectively. The higher effective tax rate for the six months ended 30 June 2020 and 2021 as compared to the statutory corporate tax rate in Singapore were mainly due to the listing expenses incurred in both periods which are non-deductible expenses for tax purpose.

Profit for the period

As a result of the foregoing, profit decreased by approximately S$1.7 million from approximately S$2.8 million for the six months ended 30 June 2020 to approximately S$1.1 million for the six months ended 30 June 2021. Net profit margin decreased from approximately 14.2% for the six months ended 30 June 2020 to approximately 5.1% for the six months ended 30 June 2021.

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Interim dividend

The Board did not recommend a payment of an interim dividend for the six months ended 30 June 2021 (30 June 2020: S$2.0 million).

Liquidity and capital assets

The shares of the Company were successfully listed on the Main Board of the Stock Exchange on 13 January 2021 (the “Listing Date”) and there has been no change in capital structure of the Group since then. The capital structure of the Group consists of debt, which includes amount due to related parties, trade and other payables, lease liabilities and bank borrowings as disclosed in Notes 19, 21, 22 and 23, to the consolidated financial statements of the Group for the six months ended 30 June 2021, respectively, net of bank balances and cash and equity attributable to owners of the Group, comprising share capital and reserves.

Our primary uses of cash are to satisfy our working capital needs. Our working capital needs have been financed through a combination of funds generated from operations and bank borrowings. As at 31 December 2020 and 30 June 2021, we had bank balances and cash of approximately S$12.7 million and S$22.7 million respectively. Going forward, we expect to fund our working capital and other capital requirements with a combination of various sources, including but not limited to cash generated from our operations and short-term or long-term indebtedness.

The bank balances and cash of the Group, mainly denominated in S$, HK$ and US$, are generally deposited with authorised financial institutions. As at 30 June 2021, 41.5% (31 December 2020: 87.5%), 50.0% (31 December 2020: 0.1%) and 8.5% (31 December 2020: 12.4%) of the Group’s bank balances and cash was denominated in S$, HK$, and US$ respectively.

As at 30 June 2021, the Group had banking facilities with credit limit amounting to approximately S$1.1 million (31 December 2020: S$1.1 million). There was no unutilised credit facilities at the end of the period.

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As at 30 June 2021, the gearing ratio of the Group, based on total interest-bearing liabilities (including bank borrowings and lease liabilities) to total equity (including all capital and reserves) of the Company was approximately 13.6% (31 December 2020: 22.7%). The decrease in gearing ratio was mainly attributable to the increase in equity from the listing offer.

Foreign currency exposure

The Group transacts mainly in Singapore dollars, which is the functional currency of all the Group’s operating subsidiaries. The Group retains a large part of its proceeds from the Share Offer in HK$. The Group currently does not have a foreign currency hedging policy but maintains a conservative approach to foreign currency management to ensure its exposure to fluctuations in foreign exchange rates is minimised.

Pledge of assets

The deposit of S$0.5 million (31 December 2021: S$0.5 million) is pledged as security with a financial institution to obtain letter of credit facilities with original maturity of 6 months to 1 year and being renewed automatically by month.

Significant investment held, material acquisitions and disposal of subsidiaries, associated companies or joint ventures

Apart from the Reorganisation in relation to the Listing (as set out under the section headed “History, Development and Reorganisation” of the prospectus of the Company dated 30 December 2020 (the “Prospectus”)), there were no significant investments held, material acquisitions or disposals of subsidiaries, associated companies or joint ventures by the Group during the six months ended 30 June 2021.

Save for the business plan as disclosed in the Prospectus, there was no plan for material investments or capital assets as at 30 June 2021.

Future plans for material investments or capital assets

Save as disclosed in the Prospectus, the Group did not have other future plans for material investments or capital assets as at 30 June 2021.

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Employees and remuneration policy

As at 30 June 2021, the Group had a total of 151 employees (31 December 2020: 141 employees), including executive Directors. Total staff costs including Directors’ emoluments, salaries, wages and other staff benefits, contributions and retirement schemes in the six months ended 30 June 2021 amounted to approximately S$4.9 million (30 June 2020: approximately S$4.4 million). In order to attract and retain high quality staff and to enable smooth operation within the Group, the remuneration policy and package of the Group’s employees are periodically reviewed. The salary and benefit levels of the employees of the Group are competitive (with reference to market conditions and individual qualifications and experience). The Group provides adequate job training to the employees to equip them with practical knowledge and skills. Apart from central provident fund and job training programs, salaries increment and discretionary bonuses may be awarded to employees according to the assessment of individual performance and market situation. The emoluments of the Directors have been reviewed by the remuneration committee of the Company, having regard to the Company’s operating results, market competitiveness, individual performance and achievement, and approved by the Board.

Capital commitments and contingent liabilities

As at 30 June 2021, the Group had no capital commitment and contingent liabilities.

Use of proceeds

On the Listing Date, the shares of the Company (the “Shares”) were listed on the Main Board of the Stock Exchange. The Group intends to apply the net proceeds from the issuance of 312,500,000 Shares at the offer price of HK$0.40 per Share in accordance with the proposed applications as set out in the section headed “Future Plans and Use of Proceeds” in the Prospectus. After deducting share issuance expense and professional fee relating to the Share Offer, the net proceeds amounted to approximately HK$41.5 million (equivalent to approximately S$7.2 million).

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The below table sets out the proposed applications of the net proceeds:

Strategic Acquisition Expansion of our fleet in relation to our trucking services segment Increase and strengthen our freight forwarding services segment Purchase of an accounting and operations system Working capital and other general corporate purposes	Percentage of netproceeds % 42.6% 39.7% 6.1% 11.1% 0.5% 100%	Planned usage of net proceeds HK$ million (approximately) 17.7 16.5 2.5 4.6 0.2 41.5	Utilised net proceeds up to the date of this announcement HK$ million (approximately) — — 0.7 — 0.1 0.8	Unutilised net proceeds up to the date of this announcement HK$ million (approximately) 17.7 16.5 1.8 4.6 0.1 40.7	Expected timeline for utilising the remaining proceeds
					Before 31 December 2021 Before 31 December 2023 Before 31 December 2023 Before 30 June 2022 Before 30 June 2022

The Company is presently looking at perspective targets. Bearing unforeseen circumstances and adaptability of business to COVID-19, we expect more time to establish collaboration and planning for due diligence on acquisition targets and trucking fleet expansion.

Events after the reporting period

Save as disclosed in elsewhere in this announcement, there are no significant events affecting the Group which have occurred after the six months ended 30 June 2021 and up to the date of this announcement.

Compliance with the model code for securities transactions by directors of listed issuers (the “Model Code”)

The Company has adopted the Model Code as rules governing dealings by the Directors in the listed securities of the Company on 13 January 2021. Based on specific enquiry with the Directors, all the Directors have compiled with the required standards as set out in the code conduct and the Model Code since the Listing Date and up to the date of this announcement.

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Corporate governance

During the six months ended 30 June 2021, the Company complied with the code provisions as set out in the Corporate Governance Code (the “CG Code”) in Appendix 14 of Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”) except for the following deviation:

CG Code A.2.1

The Company is aware of the requirement under paragraph A.2.1 of the CG Code that the roles of chairman and chief executive should be separated and should not be performed by the same individual. The Company does not separately have any officer with the title of “chief executive”. Mr. Ng Choon Eng, the chairman, executive Director and chief executive officer of the Company, is also responsible for the leadership and effective running of the Board, ensuring that all material issues are decided by the Board in a conducive manner. The Board will meet regularly to consider major matters affecting the operations of the Group. The Board considers that this structure will not impair the balance of power and authority between the Board and the management of the Company. The roles of the respective executive Directors and senior management, who are in charge of different functions complement the role of the chairman and chief executive. The Board is of the view that this structure provides the Group with strong and consistent leadership, facilitates effective and efficient planning and implementation of business decisions and strategies, and ensures the generation of shareholders’ benefits.

The Board shall nevertheless review the structure from time to time to ensure appropriate measures would be taken should suitable circumstance arise.

Purchase, sale or redemption of the Company’s listed securities

Since 13 January 2021, being the Listing Date, and up to the date of this announcement, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the listed securities of the Company.

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Audit committee

The audit committee of the Company has reviewed the Group’s unaudited consolidated financial statements for the six months ended 30 June 2021 and discussed with the management of the Company on the accounting principles and practices adopted by the Group with no disagreement by the audit committee of the Company.

The Group’s consolidated financial statements for the six months ended 30 June 2021 have not been audited and reviewed by the auditors of the Company.

Publication of interim results announcement and interim report

This announcement will be published on the websites of the Stock Exchange at www. hkexnews.hk and the Company at www.legionconsortium.com. The interim report of the Company for the six months ended 30 June 2021 will be dispatched to the shareholders of the Company and made available on the websites of the Stock Exchange and Company in due course.

By Order of the Board