TIMAH RESOURCES LIMITED — Interim / Quarterly Report 2021

Aug 24, 2021

Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

Interim Financial Report

APPENDIX 4D – INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 30 JUNE 2021

Results for Announcement to the Market

Results for Announcement to the Market
Key Information	Half-year Ended	Half-year Ended
	30 June 2021	30 June 2020
	RM’000	RM’000	% Change
Revenue from ordinary activities	4,200	4,942	-15%
Profit/(Loss) after tax from ordinary activities attributable to	75	(170)	144%
members
Net profit/(loss) attributable to members	75	(170)	144%

Explanation of Key Information

An explanation of the above figures is contained in the Review of Operations included within the attached directors’ report.

Net Tangible Assets per share
	Half-year Ended	Half-year Ended
	30 June 2021	30 June 2020
	RM/Share	RM/Share
Net tangible assets per share	0.28	0.10

Dividend Reinvestment Plans

The Group does not have any dividend reinvestment plans in operation.

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Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

DIRECTORS’ REPORT

Your directors submit the financial report of the consolidated group for the half-year ended 30 June 2021.

Directors

The names of directors who held office during or since the end of the half-year:

Tan Sri Dr Mah King Thian Dato Seri' Mah King Seng Mr. Soong Swee Koon Mr. Jack Tian Hock Tan Mr. Lee Chong Hoe Mr. Derrick De Souza

Dr. Jordina Siu Yi Mah (Alternate Director to Tan Sri Dr Mah King Thian)

Ms. Li-Na Mah (Alternate Director to Dato’ Seri Mah King Seng)

Review of Operations for the 6 months ended 30 June 2021

Over the past year, the Malaysian Government has imposed several Movement Control Orders (MCOs) to curb the spread of COVID 19 cases throughout the country. Fortunately, the Power Generation sector has been allowed to operate as an essential business. By following the Government's strict Safety Operating Procedure, the Group has been able to continue operating despite nation-wide MCOs.

However, the intermittent MCO lockdowns particularly state and international border closures have caused major disruptions to the supply of services and spare parts required to maintain the plant in good operating condition. Consequently, there has been a significant increase in machinery downtime, leading to a 15% drop in power generated and exported as compared to the preceding year's corresponding period.

	KWh
6 months ended 30 June 2020	10,585,177
6 months ended 30 June 2021	8,995,845

Despite the significant drop in plant productivity, the Group managed to record a net profit of RM75,126 for the 6-month period compared to the net loss of RM169,940 incurred in the preceding year's corresponding period, mainly due to the interest savings from the debt capitalisation exercise in August 2020.

The debt capitalisation exercise has increased the Group Net Tangible Assets per share from RM0.10/share to RM0.28/share.

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Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

DIRECTORS’ REPORT

Rounding of Amounts

The consolidated group has applied the relief available to it under ASIC Corporation Instrument 2016/191 and accordingly certain amounts in the financial report and the directors’ report have been rounded off to the nearest RM1,000.

Auditor’s Independence Declaration

The lead Auditor’s Independence Declaration under s 307C of the Corporations Act 2001 is set out on page 4 for the half-year ended 30 June 2021.

This directors’ report is signed in accordance with a resolution of the Board of Directors.

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Director ……………………………………………………………………………………………………………….
Tan Sri Dr Mah King Thian
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Dated this 25 day of August 2021

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TIMAH RESOURCES LIMITED AND CONTROLLED ENTITIES ABN 69 123 981 537

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF TIMAH RESOURCES LIMITED

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Timah Resources Limited. As the lead audit partner for the review of the financial report of Timah Resources Limited for the review period ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

• (ii) any applicable code of professional conduct in relation to the review.

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HALL CHADWICK (NSW) Level 40, 2 Park Street Sydney NSW 2000

Sandeep Kumar Partner Dated: 25 August 2021

Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE HALF-YEAR ENDED

30 JUNE 2021

Note Revenue 2 Cost of sales Gross profit Other income 2 Administrative expenses Finance costs Profit/(Loss) before income tax Income tax expenses Profit/(Loss) for the period Other comprehensive income: Exchange differences on translation of foreign operations Total comprehensive income/(loss) for the period Earnings per share (cents)	Consolidated Group Half-year Ended 30 June 2021 Half-year Ended 30 June 2020 RM’000 RM’000 4,200 4,942 (3,405) (3,509)
	795 1,433 397 154 (334) (435) (662) (1,250)
	196 (98) (121) (72)
	75 (170) 24 77
	99 (93)
	0.08 (0.19)

The accompanying notes form part of these financial statements.

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Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets Inventories TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Right of use Deferred tax assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Lease liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Borrowings Lease liabilities Deferred tax liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Foreign currency translation reserve Retained earnings TOTAL EQUITY	Consolidated Group As at 30 June 2021 As at 31 December 2020 RM’000 RM’000 6,484 6,352 2,658 2,832 326 140 130 136
	9,598 9,460
	41,317 43,075 319 330 13,931 13,926
	55,567 57,331
	65,165 66,791
	1,337 1,386 10 10
	1,347 1,396
	30,389 32,119 341 346 7,233 7,106
	37,963 39,571
	39,310 40,967
	25,855 25,824
	47,262 47,330 16 (8) (21,423) (21,498)
	25,855 25,824

The accompanying notes form part of these financial statements.

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Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 30 JUNE 2021

Consolidated Group Balance at 1 January 2020 Comprehensive income Debt capitalisation Share buy-back Loss for the period Foreign exchange translation difference Balance at 31 December 2020 Balance at 1 January 2021 Comprehensive income Share buy-back Profit for the period Foreign exchange translation difference Balance at 30 June 2021	Ordinary Share Capital Retained Earnings Foreign Currency Translation Reserve Total RM’000 RM’000 RM’000 RM’000 31,711 (21,322) (288) 10,101 15,803 - - 15,803 (184) - - (184) - (176) - (176) - - 280 280
	47,330 (21,498) (8) 25,824
	47,330 (21,498) (8) 25,824 (68) - - (68) - 75 - 75 - - 24 24
	47,262 (21,423) 16 25,855

The accompanying notes form part of these financial statements.

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Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 30 JUNE 2021

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Finance costs Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payment for property, plant and equipment Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings Advances from holding company Right to use Share buy-back Net cash (used in)/provided by financing activities Net increase in cash held Cash and cash equivalents at beginning of period Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at end of period	Consolidated Group Half-year Ended 30 June 2021 Half-year Ended 30 June 2020 RM’000 RM’000 4,369 4,269 (1,972) (2,257) 132 21 (629) (1,207)
	1,900 826
	(76) (82)
	(76) (82)
	(1,635) (1,500) - 1,635 6 (4) (68) -
	(1,697) 131
	127 875 6,353 6,074 4 58
	6,484 7,007

The accompanying notes form part of these financial statements.

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Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2021

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Preparation

These general purpose interim financial statements for half-year reporting period ended 30 June 2021 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting . The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.

This interim financial report is intended to provide users with an update on the latest annual financial statements of Timah Resources Limited and its controlled entities (referred to as the “consolidated group” or “group”). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 31 December 2021, together with any public announcements made during the following half-year.

These interim financial statements were authorised for issue on 25 August 2021.

The consolidated financial statements have been prepared using reverse acquisition accounting. In reverse acquisition accounting, the cost of the business combination is deemed to have been incurred by the legal subsidiary Mistral (the acquirer for accounting purposes) in the form of equity instruments issued to the owners of the legal parent, Timah (the acquirer for accounting purposes).

The ultimate holding company of the Group is Cepatwawasan Group Berhad. Cepatwawasan Group Berhad is incorporated in Malaysia.

Functional and Presentation Currency

The functional currency of each of the group’s entities is measured using the currency of the primary economic environment in which that entity operates. The consolidated financial statements are presented in Malaysian Ringgit which is the parent entity’s functional and presentation currency.

c. Accounting Policies

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.

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Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2021

NOTE 2: REVENUE

The following revenue items are relevant in explaining the financial performance for the interim period: Revenue: Sales of renewable energy Other Income: Sales of sludge oil Interest income Debt forgiveness Other income NOTE 3: ISSUED CAPITAL Movements in share capital of the Company are set out below: Opening balance at 1 January 2020 Debt capitalisation Share buy-back Closing balance at 31 December 2020 Opening balance at 1 January 2021 Share buy-back Closing balance at 30 June 2021	Consolidated Group Half-year Ended 30 June 2021 Half-year Ended 30 June 2020 RM’000 RM’000 4,200 4,942 169 111 132 21 96 - - 22
	4,597 5,096
	No. RM’000 91,694,275 31,711 - 15,803 (999,057) (184)
	90,695,218 47,330
	90,695,218 47,330 (350,003) (68)
	90,345,215 47,262

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Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 30 JUNE 2021

NOTE 4: OPERATING SEGMENTS

The Group operated in one business segment being renewal energy power generation and 2 geographical segments.

(i) Segment Performance Year Ended 30.06.2021 Revenue Total Segment Revenue Inter-Segment Elimination Total Group Revenue Segment Net (Loss)/Profit before tax Year Ended 30.06.2020 Revenue Total Segment Revenue Inter-Segment Elimination Total Group Revenue Segment Net (Loss)/Profit before tax (ii) Segment Asset As at 30.06.2021 As at 31.12.2020 (iii) Segment Liabilities As at 30.06.2021 As at 31.12.2020	Australia Malaysia Total RM’000 RM’000 RM’000 96 4,501 4,597
	- - -
	96 4,501 4,597
	(292) 367 75
	30 5,066 5,096
	- - -
	30 5,066 5,096
	(398) 228 (170)
	3,384 61,781 65,165
	3,713 63,078 66,791
	88 39,222 39,310
	82 40,885 40,967

NOTE 5: EVENTS AFTER THE END OF THE INTERIM PERIOD

There are no events after the end of the interim period.

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Timah Resources Limited ABN 69 123 981 537 and Controlled Entities

DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Timah Resources Limited, the directors of the company declare that:

1. The financial statements and notes, as set out on pages 5 to 11, are in accordance with the Corporations Act 2001 , including:

2. a. complying with Accounting Standard AASB 134: Interim Financial Reporting ; and

3. b. giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its performance for the half-year ended on that date.

4. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Director Tan Sri Dr Mah King Thian

Dated this 25 day of August 2021

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TIMAH RESOURCES LIMITED AND CONTROLLED ENTITIES

ABN 69 123 981 537

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF TIMAH RESOURCES LIMITED AND CONTROLLED ENTITIES

Report on the Half-year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of Timah Resources Limited, which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the half-year ended on that date, notes to the financial statements including a summary of significant accounting policies, 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 half-year financial report of Timah Resources Limited does not comply with the Corporations Act 2001 , including:

• (i) giving a true and fair view of Timah Resources Limited ‘s financial position as at 30 June 2021 and of its 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 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 our 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 has been given to the directors of the Company.

Directors’ Responsibility for the Half-Year Financial Report

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

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 halfyear ended on that date; and complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001 .

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TIMAH RESOURCES LIMITED AND CONTROLLED ENTITIES ABN 69 123 981 537

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF TIMAH RESOURCES LIMITED AND CONTROLLED ENTITIES

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.

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HALL CHADWICK (NSW) Level 40, 2 Park Street Sydney NSW 2000

SANDEEP KUMAR Partner Dated: 25 August 2021