RANGE INTERNATIONAL LIMITED — Interim / Quarterly Report 2021

Aug 19, 2021

Range International Limited Appendix 4D Half-year report

1. Company details

Name of entity:	Range International Limited
ABN:	22 611 998 200
Reporting period:	For the half-year ended 30 June 2021
Previous period:	For the half-year ended 30 June 2020

2. Results for announcement to the market

	30-Jun-21US$'000	30-Jun-20US$'000	MovementUS$'000	%
Revenues from ordinary activities	984	567	417	73.5%
Loss from ordinary activities after tax attributable to members	(1,381)	(1,803)	422	23.4%
Net loss for the period attributable to members	(1,381)	(1,803)	422	23.4%

Dividends

There were no dividends paid, recommended or declared during the current financial period.

Comments

The loss for the consolidated entity after providing for income tax amounted to US$1,381k (30 June 2020: US$1,803k).

3. Net tangible assets

	ReportingperiodCents	PreviousperiodCents
Net tangible assets per ordinary security	1.09	1.91

4. Control gained over entities

Not applicable.

5. Loss of control over entities

Not applicable.

6. Dividends

Current period There were no dividends paid, recommended or declared during the current financial period.

Previous period

There were no dividends paid, recommended or declared during the previous financial period.

Range International Limited Appendix 4D Half-year report

7. Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report.

8. Attachments

Details of attachments (if any):

The Interim Report of Range International Limited for the half-year ended 30 June 2021 is attached.

9. Signed

Signed ___________________________ Date: 20 August 2021

Richard Jenkins Executive Chairman

Range International Limited

ABN 22 611 998 200

Interim Report - 30 June 2021

Range International Limited Directors' report 30 June 2021

Your Directors present their report on the consolidated entity consisting of Range International Limited (ASX: RAN) (referred to hereafter as Range or the Company), and the entities it controlled (the Group) at the end of, or during, the half-year ended 30 June 2021.

Directors

The following persons were directors of Range International Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Stephen Bowhill Chief Executive Officer Richard Jenkins Executive Chairman Christopher Fong Executive Director

Stephen Bowhill tendered his resignation as Chief Executive Officer on 12 May 2021. Stephen will serve his 6-month notice period and his resignation as Chief Executive Officer and transition to Non-Executive Director will take effect on 12 November 2021.

Richard Jenkins resigned as Company Secretary effective 12 May 2021. Dean Jagger was appointed Company Secretary on 12 May 2021 and served until his resignation effective 23 July 2021. David Hwang and Robyn Slaughter were appointed Joint Company Secretaries on 23 July 2021.

Principal activities

Range is a manufacturer of recycled plastic pallets. Our ThermoFusion™ technology allows Range to make plastic pallets from 100% recycled mixed waste plastic at a price that is competitive with virgin plastic pallets. It currently has seven production lines operating at its existing factory in Indonesia and sells its pallets under the brand Re>Pal™. Range sells and rents pallets direct to customers and through resellers channels.

Review of operations

The loss for the consolidated entity after providing for income tax amounted to US$1,381,000 (30 June 2020: US$1,803,000).

Board changes and COVID-19 impact

On 12 May 2021, Stephen Bowhill tendered his resignation as Chief Executive Officer. Steve will serve his 6-month notice period, with his resignation as Chief Executive Officer and transition to Non-Executive Director to take effect on 12 November 2021. As of 12 May 2021, Marcus Goldstein, was appointed as President Director of Indonesian Operations. In that role, he will assume most of the responsibilities that were previously undertaken by Stephen.

COVID-19 has affected many staff in Indonesia, but the factory has continued to operate. The pandemic has affected the whole of Indonesian society. We have taken significant precautions to minimise the effect on operations with staff having to isolate while infectious. Those with mild or no symptoms, but positive cases, worked from home where possible while others had to take time off to recuperate. Obviously, this has caused some disruption to the business, but the other team members have worked hard to cover the roles of those not able to attend work. It remains an ongoing issue for us to deal with, as for any other business, but with most staff either vaccinated or already recovered we do not see this having a large impact on the business moving forward.

COVID-19 restrictions across Indonesia tightened during the half-year. Lockdowns and working from home guidelines meant that all meetings for sales prospecting were difficult. Naturally this does affect the pipeline of potential deals. Notwithstanding this, the Group still managed to record orders for 79,521 pallets during the half-year which was up from 40,730 in the prior corresponding period in 2020, an increase of 95%.

While the Board recognises that the half-year to 30 June 2020 was exceptionally weak, which looking back would now strongly be attributable to supply chain disruption in the early stages of COVID-19, we believe that the stronger half-year to 30 June 2021 is starting to show that the underlying value proposition of 100% recycled plastic pallets is increasing in popularity in South East Asia. Even during the very tough year of 2021, we are seeing the adoption of Re>Pal pallets.

In 2021, a key area to improve margins was to improve factory utilisation and operating efficiency, however this was made more difficult with the unpredictable nature of the supply of raw materials due to COVID-19, making access to waste banks for collectors more difficult. Additionally, we have had some unforeseen outages in the factory which has negatively affected the utilisation of the factory. We have redoubled our efforts on an effective maintenance program to improve this.

Range International Limited Directors' report 30 June 2021

Despite the negative environment, we were able to put through a 10% price increase from 1 January 2021, and again a 10% increase from 1 June 2021. We had discounted from mid-2020 due to slower than expected sales and disruption in client's supply chains that COVID-19 likely caused. There was an initial drop-off in 2020 orders due to clients' uncertain circumstances due to COVID-19.

As the year continues to stabilise, we remain excited about the potential to partner with clients when they provide waste plastic to us which we then recycle into pallets. Ideally, they also take the pallets so this is a full 'circular economy' process and at the end of pallet life we can recycle the pallets again, promoting a zero waste model. Unilever is finalising the testing of its waste into our pallets. We will update the market as and when this testing concludes.

There are several other similar multinational opportunities for the company to progress in the rest of 2021.

• Revenue for the half-year to 30 June 2021 was $984k compared to $567k in the previous corresponding period, an increase of 74%;
• EBITDA for the half-year to 30 June 2021 was ($875k) compared to ($1,343k) in the corresponding period in 2020, an improvement of 35%;
• In the half-year to 30 June 2021 employee costs were $564k compared to $715k in the half-year to 30 June 2020, an improvement of 27%; and
• Net operating cash outflow in the half-year to 30 June 2021 was $988k compared to $1,016k in the half-year to 30 June 2020.

We have also invested in capital for pallet welding and friction wash capabilities as well as the new multi-size mould the HDX, which is not due to be completed until December 2021. These investments will improve cash flow as greater output of pallets will lower overall costs of production. The friction washers will allow us to remove a bottle neck in our production line effectively increasing wash plant output by 100%.

As many facilities transition from timber to plastic we do see that we have a strong pipeline for the rest of 2021 and beyond, a stronger sales team is in place after upgrading the team through 2020 and early 2021, and we have appointed new resellers. Resellers demand faster turnaround on sales to delivery, and the volume improvements above will help with these relationships.

Customer and sales highlights:

• A pallet rental business was started during the half-year to 30 June 2021, with two contracts in the Philippines, Unilever and Mondelez, both of 5 years duration which naturally negatively affected cash flows during the half-year;
• We have extended our relationship with Unilever Oleo Chemicals with new orders. We expect to conclude a long-term multiyear supply contract in Q4 2021 after our accreditation of their USQS supplier compliance program;
• 64,915 pallets were invoiced and shipped (Ex-Works Indonesia) during the half-year; and
• There are forward orders for the second half of 2021 of 48,000 pallets.

We are excited about the potential for stronger collaboration with TetraPak for recycling its PolyAl waste into our pallets. We remain hopeful that we will see additional volume of PolyAl be processed by the business in the second half of 2021. COVID-19 affected the availability of this material in the first half of the year.

Late in 2021 we anticipate the HDX mould becoming available and from this we can sell the 1300x1100, the 1200x1100 and the 1100x1100. These will fill applications in the chemical industry, the food industry, and for exports. These are new pallet sizes for Re-Pal and broaden our product range allowing us to sell more pallets to more customers.

Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Events after reporting period

Unilever OleoChemicals purchase orders

On 19 July 2021, the Company announced that Unilever OleoChemicals Indonesia (UOI) has provided a purchase order for 9,472 NP1090 pallets from Re>Pal Indonesia. This is in addition to the 28,416 pallets already ordered this financial year.

Change of Company Secretary

On 23 July 2021, the Company announced that Mr Dean Jagger has resigned as Company Secretary and that Mr David Hwang and Ms Robyn Slaughter from the Automic Group have been appointed as Joint Company Secretaries.

Australian Manufacturing Operation

On 3 August 2021, the Company announced that its wholly owned subsidiary, Re>Pal Australia signed a proposal to lease in Cairns, Queensland to establish an Australian manufacturing operation initially focused on a plastic fencing product made solely from Australian-sourced recycled plastic. The lease will be subject to long form documentation.

As part of this opportunity, deposits have been paid to acquire industrial equipment and tools from Slattery Auctions (Brisbane), and the Company has agreed to acquire additional equipment from Grow Funding Pty Ltd.

The Company also confirmed that it signed a conditional product supply agreement with Botanica for the purchase of plastic planks, which will be manufactured using 100% recycled plastic resin at the new proposed leased site. Whilst purchase terms under the agreement remains subject to Botanica's timelines and the delivery of acceptable quality of the Company's products over the project's development period of 5 years, the Company welcomes this development and looks forward to a mutually beneficial relationship with Botanica.

To accelerate the Company's progression of this opportunity, Executive Chairman Richard Jenkins has agreed to provide a convertible loan facility of A$400,000 on commercial terms. The loan is only convertible with receipt of Shareholder approval, to be sought at the 2022 Annual General Meeting.

Other than the activities described above there were no other significant subsequent events of the Company for the half-year ended 30 June 2021.

Rounding of amounts

The Company is of a kind referred to in ASIC Legislative Instrument 2016/191 relating to the 'rounding off' of amounts in the directors' report. Amounts in the directors' report have been rounded off in accordance with the instrument to the nearest thousand dollars, or in certain cases, to the nearest dollar.

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.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

___________________________

Richard Jenkins Executive Chairman

20 August 2021

DECLARATION OF INDEPENDENCE BY LEAH RUSSELL TO THE DIRECTORS OF RANGE INTERNATIONAL LTD

As lead auditor for the review of Range International Ltd for the half-year ended 30 June 2021, 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
• 1. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Range International Ltd and the entities it controlled during the period.

Leah Russell Director

BDO Audit Pty Ltd

Sydney, 20 August 2021

Range International Limited Consolidated statement of profit or loss For the half-year ended 30 June 2021

		Consolidated
	Note	30 June 2021 30 June 2020US$'000	US$'000
Revenue
Sales revenue		984	567
Cost of sales		(1,665)	(1,173)
Gross loss		(681)	(606)
Other income		28	31
Expenses
Employee benefits expense		(316)	(488)
Depreciation and amortisation expense	4	(64)	(60)
Other expenses		(106)	(186)
Marketing expense		(87)	(73)
Professional fees		(156)	(212)
Impairment expense	4	-	(211)
Foreign exchange gain		1	2
Loss before income tax expense		(1,381)	(1,803)
Income tax expense		-	-
Loss after income tax expense for the half-year attributable to the owners ofRange International Limited		(1,381)	(1,803)
		Cents	Cents
Basic earnings per share	16	(0.31)	(0.52)
Diluted earnings per share	16	(0.31)	(0.52)

Range International Limited Consolidated statement of other comprehensive income For the half-year ended 30 June 2021

	US$'000	Consolidated30 June 2021 30 June 2020US$'000
Loss after income tax expense for the half-year attributable to the owners of RangeInternational Limited	(1,381)	(1,803)
Other comprehensive loss
Items that may be reclassified subsequently to profit or lossExchange differences on translating foreign controlled entities	(299)	(257)
Other comprehensive loss for the half-year, net of tax	(299)	(257)
Total comprehensive loss for the half-year attributable to the owners of RangeInternational Limited	(1,680)	(2,060)

Range International Limited Consolidated statement of financial position As at 30 June 2021

	Consolidated
		31 December
Note	30 June 2021US$'000	2020US$'000
Assets
Current assets
Cash and cash equivalents	676	490
Trade and other receivables5	411	554
Inventories6	51	118
Other current assets	77	28
Total current assets	1,215	1,190
Non-current assets
Trade and other receivables5	107	-
Property, plant and equipment8	6,662	7,243
Right-of-use assets7	553	584
Intangibles9	-	-
Other current assets	99	100
Total non-current assets	7,421	7,927
Total assets	8,636	9,117
Liabilities
Current liabilities
Trade and other payables	381	463
Provisions10	2,643	2,650
Total current liabilities	3,024	3,113
Non-current liabilities
Provisions10	122	157
Total non-current liabilities	122	157
Total liabilities	3,146	3,270
Net assets	5,490	5,847
Equity
Issued capital11	112,545	111,239
Other reserves	(28,336)	(28,054)
Accumulated losses	(78,719)	(77,338)
Total equity	5,490	5,847

Range International Limited Consolidated statement of changes in equity For the half-year ended 30 June 2021

Consolidated	IssuedCapitalUS$'000	ReservesUS$'000	AccumulatedlossesUS$'000	Total equityUS$'000
Balance at 1 January 2020	109,676	(28,108)	(74,351)	7,217
Loss after income tax expense for the half-yearOther comprehensive loss for the half-year, net of tax	--	-(257)	(1,803)-	(1,803)(257)
Total comprehensive loss for the half-year	-	(257)	(1,803)	(2,060)
Transactions with owners in their capacity as owners:Share-based paymentsPaid in Capital	-1,563	167-	--	1671,563
Balance at 30 June 2020	111,239	(28,198)	(76,154)	6,887
	Issued		Accumulated
Consolidated	CapitalUS$'000	ReservesUS$'000	lossesUS$'000	Total equityUS$'000
Balance at 1 January 2021	111,239	(28,054)	(77,338)	5,847
Loss after income tax expense for the half-yearOther comprehensive loss for the half-year, net of tax	--	-(299)	(1,381)-	(1,381)(299)
Total comprehensive loss for the half-year	-	(299)	(1,381)	(1,680)
Transactions with owners in their capacity as owners:Share-based paymentsIssue of shares, net of transaction costs	-1,306	17-	--	171,306

Range International Limited Consolidated statement of cash flows For the half-year ended 30 June 2021

	Consolidated
	Note	30 June 2021 30 June 2020US$'000	US$'000
Cash flows from operating activities
Receipts from customers (inclusive of GST)		1,020	567
Payments to suppliers and employees (inclusive of GST)		(2,009)	(1,604)
Interest received		4	-
Interest and other finance costs paid		(2)	-
Government grants (Cash flow boost)		-	21
Income taxes paid		(1)	-
Net cash used in operating activities		(988)	(1,016)
Cash flows from investing activities
Payments for property, plant and equipment	8	(65)	(42)
Net cash used in investing activities		(65)	(42)
Cash flows from financing activities
Proceeds from issue of shares	11	1,387	1,611
Share issue transaction costs		(81)	(48)
Net cash from financing activities		1,306	1,563
Net increase in cash and cash equivalents		253	505
Cash and cash equivalents at the beginning of the financial half-year		490	569
Effects of exchange rate changes		(67)	(33)
Cash and cash equivalents at the end of the financial half-year		676	1,041

Note 1. Corporate Information

Range International Limited ("Range") is a manufacturer of plastic pallets listed on the Australian Securities Exchange (ASX:RAN). Range's ThermoFusion™ technology allows it to make plastic pallets from 100% recycled mixed waste plastic.

Range has production facilities located in Indonesia operated by its subsidiary PT Enviropallets Bali and sells its pallets under the brand Re>Pal™, while its Singapore subsidiary, Range International Holdings Limited ("RIHL"), owns all of Range's intellectual property.

The address of Range International Limited registered office and its principal place of business is Level 5, 126 Phillip Street, Sydney, NSW Australia 2000.

The financial statements of Range International Limited for the half-year ended 30 June 2021 were authorised for issue in accordance with a resolution of the Directors.

Note 2. Significant accounting policies

These financial statements present the consolidated results of the Company and its subsidiaries (Range or the Group) for the half-year ended 30 June 2021.

These general purpose financial statements for the interim half-year reporting period ended 30 June 2021 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 31 December 2020 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted

The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Going concern

During the period, the Group incurred a loss after tax of $1.38 million (30 June 2020: $1.80 million), net operating cash outflows of $0.99 million (30 June 2020: $1.02 million) and investing cash outflows of $0.07 million (30 June 2020: $0.04 million) and financing inflows of $1.31 million (30 June 2020 $1.56 million.

As at 30 June 2021, the Group has cash and cash equivalents of $0.68 million (31 Dec 2020: $0.49 million)

These events and conditions create a material uncertainty in relation to going concern that may cast significant doubt as to whether the Group will continue as a going concern and, therefore, whether the Group will realise its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial statement.

The Group's ability to continue as a going concern, to recover the carrying value of its assets and meet its commitments as and when they fall due is dependent on the ability of the Group to raise additional capital or obtain external financing in the next few months. The Board is assessing capital raising opportunities as at the date of this report.

The going concern basis of preparation is also dependent on:

• the ability of the Group to raise the additional capital, for which it has a successful history in doing so;
• the ability of the Group to deliver its sales targets and meet its cash flow forecasts;
• improve its gross margins on the sale of pallets; and
• manage its broader cost base.

Note 2. Significant accounting policies (continued)

Throughout the reporting period we made several announcements detailing our successes with new business, with companies such as Nestle Philippines, Unilever Indonesia and PT Unilever Oleochemicals and ongoing testing with Unilever. We anticipate that demand for Re>Pal 100% recycled pallet will continue as companies look to move from an unsustainably sourced product to a recycled product. Furthermore, the 'EasyPay' rental scheme will accelerate access to Re>Pal's product.

Nestle Indonesia has also provided a grant of over $85,000 for the purchase of equipment to support our collection efforts. This includes two trucks and compacting/bailing machines. This will enable us to increase local area collections with community-based suppliers that can also provide for improved plastic quality.

To accelerate the Company's progression on funds, Executive Chairman Richard Jenkins has agreed to provide a convertible loan facility of A$400,000 on commercial terms. The loan is only convertible with receipt of Shareholder approval, to be sought at the 2022 Annual General Meeting.

To preserve the cash on hand, the Board will continue to implement a number of cost savings measures to reduce its cost base. These actions optimising shifts, non-renewal of casual workers, outsourcing factory workers and laying off or rostering off permanent workers to match reduced forecasted demand in the short-term and fitting into new COVID-19 tariffs from our electricity supplier. The Directors believe the reductions in production and administrative costs combined with current and prospective sales in its pipeline will extend the Company's cash flow runway.

At this time, the Board and management are of the opinion that no assets are likely to be realised for an amount less than the amount at which it is recorded in the financial report at 30 June 2021. No adjustment have been made to the financial report relating to the recoverability and classification of the assets carrying amounts or the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern.

Note 3. Segment information

Identification of reportable operating segments

The Group has determined operating segments based on the information provided to the Board of Directors (Chief Operating Decision Maker).

The Group operates predominately in one business segment, being the manufacture and sale of plastic pallets. There is no material difference between the financial information presented to the Chief Operating Decision Maker and the financial information presented in this report.

Sales revenue by geographic location

Revenue obtained from external customers is attributed to individual countries based on the location of the customer. The majority of sales to external customers are made within Indonesia.

Non-current assets by geographic location

Non-current assets are broken down by the geographic location of those assets.

	Consolidated geographicalnon-current assets31 December
	30 June 2021US$	2020US$
Indonesia
Property, plant and equipment	6,662	7,243
Right of use asset	553	584
Trade and other receivables	107	-
Other non-current assets	99	100
	7,421	7,927

Note 4. Expenses

	Consolidated30 June 2021 30 June 2020US$'000	US$'000
Loss before income tax includes the following specific expenses:
DepreciationProperty plant and equipmentProperty, plant and equipment - cost of sales	64442	60400
Total depreciation	506	460
ImpairmentPlant and equipment	-	211

Impairment expense

Assets are assessed for impairment at each reporting period end by evaluating whether indicators of impairment exist. Management has reviewed the carrying value and has not identified any changes to the impairment assumptions.

Note 5. Trade and other receivables

	Consolidated31 December30 June 20212020US$'000US$'000
Current assets
Trade receivables	170	318
Finance lease receivable - current	25	-
Other receivables	216	236
	411	554
Non-current assets
Finance lease receivables - non-current	107	-
	518	554

During the half-year ended 30 June 2021, the Company entered into a leasing arrangement in the capacity of lessor to lease its pallets to one of its customers. When substantially all the risks and rewards transfer to the lessee, the lease is classified as finance, otherwise the lease is an operating lease.

For lease contracts classified as finance leases, the selling profit or loss is recognised at the commencement date and the present value of future lease receivables are recognised as finance lease received.

The reconciliation between the total gross investment in the lease and the net investment in the lease is as follows:

Note 5. Trade and other receivables (continued)

	Consolidated31 December
	30 June 2021US$'000	2020US$'000
Gross receivable	146	-
Less: unearned finance income	(14)	-
Total finance lease receivables	132	-
Of which:
Current portion	25	-
Non-current portion	107	-
Total finance lease receivables	132	-

Note 6. Inventories

	Consolidated31 December
	30 June 2021US$'000	2020US$'000
Current assets
Raw materials - at cost	-	22
Work in progress - at net realisable value	20	2
Finished goods - at net realisable value	31	94
	51	118

Note 7. Right-of-use assets

	30 June 2021US$'000	Consolidated31 December2020US$'000
Non-current assetsLeasehold land - right-of-useLess: Accumulated depreciation	629(76)	651(67)
	553	584

Note 8. Property, plant and equipment

	Consolidated31 December
	30 June 2021US$'000	2020US$'000
Non-current assets
Plant and equipment - at cost	6,527	6,745
Less: Accumulated depreciation and impairment	(2,674)	(2,282)
	3,853	4,463
Building - at cost	2,394	2,479
Less: Accumulated depreciation and impairment	(348)	(339)
	2,046	2,140
Capital work-in-progress - at cost	681	640
Leased assets - at cost	84	-
Less: Accumulated depreciation	(2)	-
	82	-
	6,662	7,243

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:

	Plant andEquipment	Building	Capital work-in-progress	Leasedasset	Total
Consolidated	US$'000	US$'000	US$'000	US$'000	US$'000
Balance at 1 January 2021	4,463	2,140	640	-	7,243
Additions	-	-	65	-	65
Exchange differences	(182)	(35)	(16)	-	(233)
Transfers from inventories	-	-	-	84	84
Transfers in/(out)	8	-	(8)	-	-
Depreciation expense	(436)	(59)	-	(2)	(497)
Balance at 30 June 2021	3,853	2,046	681	82	6,662

During the half-year, the Company entered into a lease-to-own agreement with one of its customers to lease its pallets for a period of 5 years. The contract satisfied the criteria of finance lease under AASB 16 Leases and hence the pallets were transferred from inventories and depreciated over the lease terms.

Property, plant and equipment, intangibles and investments in subsidiaries are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets.

All assets are measured at cost less impairment to reflect the recoverable value.

Note 9. Intangibles

	Consolidated31 December
	30 June 2021US$'000	2020US$'000
Non-current assets
Design and development - at cost	277	277
Less: Accumulated amortisation and impairment	(277)	(277)
	-	-
Intellectual property - at cost	10,424	10,424
Less: Accumulated amortisation and impairment	(10,424)	(10,424)
	-	-
	-	-

Recognition and measurement

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination are fair valued at the date of acquisition. Following initial recognition, intangible assets with finite lives are carried at cost less any accumulated amortisation and any accumulated impairment losses.

Intangible assets with finite lives are amortised on a straight-line basis and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at each financial year end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the income statement in the expense category consistent with the function of the intangible asset.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the income statement when the asset is derecognised.

Intellectual Property

Range's IP portfolio comprises of several trademark applications protecting its brands, as well as trade secrets protecting its ThermoFusionTM technology. Amortisation of the IP commenced 1 February 2017 to coincide with the commissioning of the first production line. They are recorded at cost less accumulated amortisation and impairment losses, using the straight-line method over 10 years.

Design and Development

Capitalised development costs are recorded as an intangible asset and amortised from the point at which the asset is ready for use. They are recorded at cost less accumulated amortisation and impairment losses, using the straight-line method over 5 years.

Impairment

Impairment is assessed annually using a value in use calculation.

Note 10. Provisions

		Consolidated31 December
	30 June 2021US$'000	2020US$'000
Current liabilitiesTax provision	2,643	2,650
Non-current liabilitiesEmployee benefits	122	157
	2,765	2,807

Provisions

Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.

Note 11. Issued capital

		Consolidated
	30 June 2021Shares'000	31 December2020Shares'000	30 June 2021US$'000	31 December2020US$'000
Ordinary shares - fully paid	451,371	361,371	112,545	111,239
Movements in ordinary share capital
Details	Date	Shares'000	Issue price	US$'000
BalanceIssue of ordinary sharesTransaction costs	1 January 20218 February 2021	361,37190,000-	US$0.02US$0.00	111,2391,387(81)
Balance	30 June 2021	451,371		112,545

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Note 12. Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Note 13. Contingent assets and liabilities

There are no contingent assets or liabilities outstanding or recorded at 30 June 2021.

Note 14. Capital Commitments

There are no capital commitments outstanding at 30 June 2021 (31 Dec 2020: nil).

Note 15. Events after the reporting period

Unilever OleoChemicals purchase orders

On 19 July 2021, the Company announced that Unilever OleoChemicals Indonesia (UOI) has provided a purchase order for 9,472 NP1090 pallets from Re>Pal Indonesia. This is in addition to the 28,416 pallets already ordered this financial year.

Change of Company Secretary

On 23 July 2021, the Company announced that Mr Dean Jagger has resigned as Company Secretary and that Mr David Hwang and Ms Robyn Slaughter from the Automic Group have been appointed as Joint Company Secretaries.

Australian Manufacturing Operation

On 3 August 2021, the Company announced that its wholly owned subsidiary, Re>Pal Australia signed a proposal to lease in Cairns, Queensland to establish an Australian manufacturing operation initially focused on a plastic fencing product made solely from Australian-sourced recycled plastic. The lease will be subject to long form documentation.

As part of this opportunity, deposits have been paid to acquire industrial equipment and tools from Slattery Auctions (Brisbane), and the Company has agreed to acquire additional equipment from Grow Funding Pty Ltd.

The Company also confirmed that it signed a conditional product supply agreement with Botanica for the purchase of plastic planks, which will be manufactured using 100% recycled plastic resin at the new proposed leased site. Whilst purchase terms under the agreement remains subject to Botanica's timelines and the delivery of acceptable quality of the Company's products over the project's development period of 5 years, the Company welcomes this development and looks forward to a mutually beneficial relationship with Botanica.

To accelerate the Company's progression of this opportunity, Executive Chairman Richard Jenkins has agreed to provide a convertible loan facility of A$400,000 on commercial terms. The loan is only convertible with receipt of Shareholder approval, to be sought at the 2022 Annual General Meeting.

No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

Note 16. Earnings per share

	Consolidated30 June 2021 30 June 2020US$'000	US$'000
Loss after income tax attributable to the owners of Range International Limited	(1,381)	(1,803)
	Number'000	Number'000
Weighted average number of ordinary shares used in calculating basic earnings per share	447,891	349,920
Weighted average number of ordinary shares used in calculating diluted earnings per share	447,891	349,920
	Cents	Cents
Basic earnings per shareDiluted earnings per share	(0.31)(0.31)	(0.52)(0.52)

Range International Limited Directors' declaration 30 June 2021

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 30 June 2021 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

___________________________

Richard Jenkins Executive Chairman

20 August 2021

INDEPENDENT AUDITOR'S REVIEW REPORT

To the members of Range International Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Range International Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss, the consolidated statement of 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 significant 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 30 June 2021 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.

Material uncertainty relating to going concern

We draw attention to Note 2 in the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern and therefore the Group may be unable to realise its assets and discharge its liabilities in the normal course of business. Our conclusion is not modified in respect of this matter.

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.

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 is free from material misstatement, whether due to fraud or error.

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 Company's financial position as at 30 June 2021 and its 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

Leah Russell Director

Sydney, 20 August 2021