TIDMASPL

RNS Number : 0472M

Aseana Properties Limited

16 September 2021

16 September 2021

Aseana Properties Limited

("Aseana", the "Company" or, the "Group")

Half-Year Results for the Six Months Ended 30 June 2021

Aseana Properties Limited (LSE: ASPL), a property developer with investments in Malaysia and Vietnam, listed on the Main Market of the London Stock Exchange, announces its unaudited half-year results for the six-month period ended 30 June 2021.

Operational summary:

-- The RuMa Residences have been approximately 71% sold to date based on sale and purchase agreements signed.

-- The RuMa Hotel was temporarily closed for 60 days in two different periods due to MCO and achieved an average occupancy rate of approximately 11% in the first six months of 2021. Losses for the six months ending 30(th) June was approximately 4.6m MYR in line with the budget; second half results will decline resulting from closure of the hotel due to MCO. The hotel has now re-opened but uncertainty remains as the hotel may be subjected to further closure under any future MCO's as mandated by Malaysian government.

-- In the first half year of 2021, The Harbour Mall Sandakan performance has exceeded expectations with occupancy rates at about 95%. The mall operator has continued to rebate rental lease payments to tenants during the prevailing MCO as a measure to support the tenants and to retain the occupancy levels. Financial performance through June 30(th) , 2021 reflects expectations however if MCO continues into the latter half of 2021 financial performance will suffer.

-- City International Hospital has been negatively affected by Covid, similar to other hospitals in Vietnam and specifically Ho Chi Minh City ("HCM"). In the first 6 months, revenue decreased about 27% against budget, with overall EBITDA declining by approximately 57% against budget. Since December 2020, management have undertaken cost cutting measures across the board including instituting a hiring freeze, reviewing profit margins and productivity of staff. Performance is expected to improve in the second half as cost savings are realised, however, the Vietnam government mandated total lockdown of HCM in August, this mandate was expected to be gradually lifted starting 15(th) September, 2021 but has now been extended to month end.

-- As reported in our Annual Report issued 2nd August, 2021, it is expected that the Group would be financed via the disposal of its investments in Vietnam, the sale of the remaining existing units of residential inventories at The RuMa Hotel & Residences in West Malaysia, and through the disposals of the Sandakan hotel asset (formerly Four Points Sheraton Sandakan Hotel), the Harbour Mall Sandakan and the RuMa Hotel. The Divestment Team has been actively seeking for potential purchasers.

Financial summary:

   --        Other Income of US$7.7 million (H1 2020: US$8.6 million) 
   --        Loss before tax of US$3.2 million (H1 2020: loss of US$8.2 million) 
   --        Loss after tax of US$3.3 million (H1 2020: loss of US$8.3 million) 
   --        Total comprehensive loss of US$6.6 million (H1 2020: loss of US$11.1 million) 

-- Net asset value of US$96.7 million (31 December 2020 (audited): US$101.3 million) or US$0.49 per share (31 December 2020 (audited): US$0.51 per share)

Subsequent Events:

On 25(th) August, 2021 the Company announced that it had entered into a binding agreement to sell its entire interest in both the City International Hospital and the adjacent International Healthcare Park in HCM. The terms of the transaction are subject to approvals from regulatory authorities as well as conditions to completion. It is expected the completion will take several months. Once completed, the Company will have no assets in Vietnam.

On 9(th) September, 2021 the Company announced it had entered into a conditional agreement to sell the remaining 58 unsold residential units at The Ruma Hotel & Residences in Kuala Lumpur. Gross sale price is MYR 85.3m (approximately US $20.5m) and is subject to final due diligence by the Buyer as well as receipt of government approval for the sale to a foreign investor. Expected completion will take place within 8 months.

Commenting on the results, Nick Paris, Chairman of Aseana, said:

"The H1 2021 results show that Aseana has still had to deal with challenging market conditions in both Malaysia and Vietnam resulting from the negative impact of COVID 19 and the movement controls introduced by the respective governments to contain the spread of the virus. Nonetheless, the Company has continued to focus on improving the operational performance and narrowing the losses of its operating assets. Since the end of this period we have started to see the results of our divestment activities and we have signed two sale and purchase agreements covering our assets in Vietnam and our high end residences in Kuala Lumpur, Further asset sales are being actively worked on."

For further information:

 
 Aseana Properties Limited        Tel: 020 3325 7050 
 Nick Paris (Chairman)            Email: nick.paris@limadvisors.com 
 
 Liberum Capital                  Tel: 020 3100 2000 
 Darren Vickers / Owen Matthews   Email: aseana@liberum.com 
 
 

Notes to Editors:

London-listed Aseana Properties Limited (LSE: ASPL) is a property developer with investments in Malaysia and Vietnam which is in the process of realising its assets.

CHAIRMAN'S STATEMENT

Introduction

I am pleased to report on the results of Aseana Properties Limited and its Group of companies for the six months ended 30 June 2021.

Interim Results for the Half Year ended 30 June 2021

Our interim results in this period continue to reflect the significant impact of the COVID virus on our various operating businesses. Our operating revenue on our assets continued to be reduced and despite significant ongoing cost cutting initiatives, operating losses and cash outflows were inevitable. However, the comprehensive loss for Aseana for the half year did decrease to US$6.6 million (1H 2020: US$11.1 million), our net cash used in operating activities was US$4 million (1H 2020: US$11.0 million) and our cash balance at the end of the period was US$9.7 million (1H 2020: US$2.7 million) after we drew down some further financing. The loss which we are reporting for the six months ended 30 June 2021 has reduced our Net Asset Value per Share from 51 US cents at 31 December 2020 to 49 US cents (30 June 2020: 50 US cents).

Our Business Focus and Recent Property Divestments

Our business focus for the Group continues to be on reducing our operating costs and on improving the operational performances of our remaining assets in order to preserve our cash balances.

In Vietnam, Hoa Lam Corporation, our long standing joint venture partner, has agreed to buy our interests in the City International Hospital and the International Healthcare Park. This transaction is now subject to completion conditions including local regulatory approvals.

In Kuala Lumpur, a foreign investor has contracted to buy our remaining residential units in The RuMa Hotel & Residences. Completion of this sale is subject to approval of various conditions and multiple regulatory authorities, and will take up to eight months.

These two sale transactions will eliminate the majority of debt owed by the Company. In addition, further sale discussions are underway on some of our other assets and we remain alert for any interest for any of our assets from prospective buyers. Our aim continues to be to seek asset sales in a controlled, orderly and timely manner, to pay off our project debts and then to return surplus sale proceeds to our shareholders.

Our listing on the London Stock Exchange

We had to temporarily suspend the listing of our shares on the London Stock Exchange in late June as the audit of our Annual Accounts for the year ended 31st December 2020 had been held up by the movement controls in Malaysia and Vietnam and the deadline for their publication was 30(th) June. Our Annual Report was subsequently published on 3(rd) August and we are in discussions with Financial Conduct Authority in the UK to get our listing restored and hope that this will happen shortly.

Acknowledgements

I would like to take this opportunity to thank my colleagues on the Board and throughout our Group and our external advisors, bankers and service providers for their tireless efforts on behalf of the Group and its Shareholders.

This has been another very challenging period in the corporate life of Aseana but with our recently announced divestments I believe that we are now heading into the final stages of the life of the Company.

NICK PARIS

Chairman

16 September 2021

PROPERTY PORTFOLIO AS AT 30 JUNE 2021

 
 Project                               Type               Effective   Approximate   Approximate 
                                                          Ownership         Gross     Land Area 
                                                                            Floor        (sq m) 
                                                                             Area 
                                                                           (sq m) 
--------------------------  --------------------------  -----------  ------------  ------------ 
 The RuMa Hotel &               Luxury residential 
  Residences                     tower and bespoke 
  Kuala Lumpur, Malaysia               hotel                  70.0%        40,000         4,000 
--------------------------  --------------------------  -----------  ------------  ------------ 
 Sandakan Harbour 
  Square 
  Sandakan, Sabah,                Hotel and retail 
  Malaysia                              mall                 100.0%       126,000        48,000 
--------------------------  --------------------------  -----------  ------------  ------------ 
 City International 
  Hospital, International 
  Healthcare Park, 
  Ho Chi Minh City,               Private general 
  Vietnam                             hospital              73.04%*        48,000        25,000 
--------------------------  --------------------------  -----------  ------------  ------------ 
 Undeveloped projects 
--------------------------  --------------------------  -----------  ------------  ------------ 
 Other developments 
  in International 
  Healthcare Park, 
  Ho Chi Minh City,               Commercial and 
  Vietnam (formerly           residential development 
  International Hi-Tech           with healthcare 
  Healthcare Park)                     theme                73.04%*       972,000       351,000 
--------------------------  --------------------------  -----------  ------------  ------------ 
 Kota Kinabalu Seafront 
  resort & residences 
  Kota Kinabalu, Sabah, 
  Malaysia                         Resort homes               80.0%           n/a       327,000 
--------------------------  --------------------------  -----------  ------------  ------------ 
 

*Shareholding as at 30 June 2021

n/a: Not available/ Not applicable

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHSED 30 JUNE 2021

 
                                                    Unaudited    Unaudited        Audited 
                                                   Six months   Six months           Year 
                                                        ended        ended          ended 
                                           Notes      30 June      30 June    31 December 
                                                         2021         2020           2020 
 Continuing activities                                US$'000      US$'000        US$'000 
 
 Revenue                                     3            516            -          1,329 
 Cost of sales                               5          (416)          (3)          (950) 
----------------------------------------  ------  -----------  -----------  ------------- 
 Gross profit/(loss)                                      100          (3)            379 
 Other income                                           7,743        8,581         18,271 
 Administrative expenses                                (418)        (637)        (1,658) 
 Foreign exchange gain/(loss)                6            852      (1,023)        (1,051) 
 Loss on disposal of subsidiaries                           -            -          (784) 
 Marketing expenses                                         -         (11)              - 
 Other operating expenses                             (8,585)     (11,647)       (20,657) 
----------------------------------------  ------  -----------  -----------  ------------- 
 Operating loss                                         (308)      (4,740)        (5,500) 
                                                  -----------  -----------  ------------- 
 Finance income                                         1,399          882          3,323 
 Finance costs                                        (4,311)      (4,426)       (11,152) 
                                                  -----------  -----------  ------------- 
                                                                                  ( 7,829 
 Net finance costs                                    (2,912)      (3,544)              ) 
 Net loss before taxation                             (3,220)      (8,284)       (13,329) 
 Taxation                                    7           (38)          (4)          (187) 
----------------------------------------  ------  -----------  -----------  ------------- 
 Loss for the period/year                             (3,258)      (8,288)       (13,516) 
----------------------------------------  ------  -----------  -----------  ------------- 
 Other comprehensive (loss)/ 
  income, net of tax 
  Items that are or may be reclassified 
  subsequently to profit or 
  loss 
----------------------------------------  ------  -----------  -----------  ------------- 
 Foreign currency translation 
  differences 
  for foreign operations                              (3,316)      (2,873)          2,078 
----------------------------------------  ------  -----------  -----------  ------------- 
 Total other comprehensive 
  (loss)/income for the period/year                   (3,316)      (2,873)          2,078 
----------------------------------------  ------  -----------  -----------  ------------- 
 Total comprehensive loss 
  for the period/year                                 (6,574)     (11,161)       (11,438) 
----------------------------------------  ------  -----------  -----------  ------------- 
 
 Loss attributable to: 
  Equity holders of the parent                        (1,733)      (6,485)       (10,260) 
 Non-controlling interests                            (1,525)      (1,803)        (3,256) 
----------------------------------------  ------  -----------  -----------  ------------- 
 Total                                                (3,258)      (8,288)       (13,516) 
----------------------------------------  ------  -----------  -----------  ------------- 
 
 Total comprehensive loss 
  attributable to: 
 Equity holders of the parent                         (4,690)      (9,345)        (8,371) 
 Non-controlling interests                            (1,884)      (1,816)        (3,067) 
----------------------------------------  ------  -----------  -----------  ------------- 
 Total                                                (6,574)     (11,161)       (11,438) 
----------------------------------------  ------  -----------  -----------  ------------- 
 Loss per share 
  Basic and diluted (US cents)                         (0.87)       (3.26)         (5.16) 
----------------------------------------  ------  -----------  -----------  ------------- 
 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

 
                                          Unaudited     Unaudited        Audited 
                                              As at         As at          As at 
                                  Notes     30 June       30 June    31 December 
                                               2021          2020           2020 
                                            US$'000       US$'000        US$'000 
 
 Non-current assets 
 Property, plant and equipment                  527           593            565 
 Intangible assets                            4,097         4,097          4,097 
 Right of use                                    17           360            160 
 Deferred tax assets                          4,944         4,842          5,111 
-------------------------------  ------  ----------  ------------  ------------- 
 Total non-current assets                     9,585         9,892          9,933 
-------------------------------  ------  ----------  ------------  ------------- 
 
 Current assets 
 Inventories                                232,576       232,753        237,394 
 Trade and other receivables                 15,400        17,746       16 , 211 
 Prepayments                                   35 4           606            415 
 Current tax assets                             923             3            956 
 Cash and cash equivalents                    9,722         5,226          5,948 
-------------------------------  ------  ----------  ------------  ------------- 
 Total current assets                      258,97 5       256,334        260,924 
-------------------------------  ------  ----------  ------------  ------------- 
 
 TOTAL ASSETS                              268,56 0       266,226        270,857 
-------------------------------  ------  ----------  ------------  ------------- 
 
 Equity 
 Share capital                               10,601        10,601         10,601 
 Share premium                              208,925       208,925        208,925 
 Capital redemption reserve                   1,899         1,899          1,899 
 Translation reserve                       (22,612)      (24,504)       (19,655) 
                                            (102,16 
 Accumulated losses                             6 )      (96,630)      (100,433) 
-------------------------------  ------  ----------  ------------  ------------- 
 Shareholders' equity                       96,64 7       100,291        101,337 
 Non-controlling interests                  (8,761)       (5,654)        (6,877) 
-------------------------------  ------  ----------  ------------  ------------- 
 Total equity                               87,88 6        94,637         94,460 
-------------------------------  ------  ----------  ------------  ------------- 
 
 Non-current liabilities 
 Trade and other payable                     38,507        37,518         39,789 
 Loans and borrowings               9        26,634        25,318         21,926 
 Total non-current liabilities               65,141        62,836         61,715 
-------------------------------  ------  ----------  ------------  ------------- 
 
 Current liabilities 
 Trade and other payables                    33,511        30,681         33,300 
 Amount due to non-controlling 
  interests                                  11,588        10,923         11,371 
 Loans and borrowings               9        26,986        28,182         29,811 
 Medium term notes                 10        43,448        37,878         40,200 
 Current tax liabilities                          -         1,089              - 
-------------------------------  ------  ----------  ------------  ------------- 
 Total current liabilities                  115,533       108,753        114,682 
-------------------------------  ------  ----------  ------------  ------------- 
 Total liabilities                          180,674       171,589        176,397 
-------------------------------  ------  ----------  ------------  ------------- 
 
 TOTAL EQUITY AND LIABILITIES              268,56 0       266,226        270,857 
-------------------------------  ------  ----------  ------------  ------------- 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the SIX MONTHS ended 30 June 2021 - Unaudited

 
                                                                                                Total Equity 
                                                                                                Attributable 
                                                                                                   to Equity 
                  Redeemable                              Capital                                    Holders          Non- 
                    Ordinary   Management      Share   Redemption   Translation   Accumulated         of the   Controlling      Total 
                      Shares       Shares    Premium      Reserve       Reserve        Losses         Parent     Interests     Equity 
                     US$'000      US$'000    US$'000      US$'000       US$'000       US$'000        US$'000       US$'000    US$'000 
---------------  -----------  -----------  ---------  -----------  ------------  ------------  -------------  ------------  --------- 
 1 January 2021       10,601            -    208,925        1,899      (19,655)     (100,433)        101,337       (6,877)     94,460 
 Loss for the 
  period                   -            -          -            -             -       (1,733)        (1,733)       (1,525)    (3,258) 
 Total other 
  comprehensive 
  loss                     -            -          -            -       (2,957)             -        (2,957)         (359)    (3,316) 
                 -----------  -----------  ---------  -----------  ------------  ------------  -------------  ------------  --------- 
 Total 
  comprehensive 
  loss                     -            -          -            -       (2,957)       (1,733)        (4,690)       (1,884)    (6,574) 
---------------  -----------  -----------  ---------  -----------  ------------  ------------  -------------  ------------  --------- 
 Shareholders' 
  equity 
  at 30 June                                                             (22,61       (102,16 
  2021                10,601            -    208,925        1,899           2 )           6 )         96,647       (8,761)     87,886 
===============  ===========  ===========  =========  ===========  ============  ============  =============  ============  ========= 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the SIX MONTHS ended 30 JuNE 2020 - Unaudited

 
                                                                                                Total Equity 
                                                                                                Attributable 
                                                                                                   to Equity 
                  Redeemable                              Capital                                    Holders          Non- 
                    Ordinary   Management      Share   Redemption   Translation   Accumulated         of the   Controlling      Total 
                      Shares       Shares    Premium      Reserve       Reserve        Losses         Parent     Interests     Equity 
                     US$'000      US$'000    US$'000      US$'000       US$'000       US$'000        US$'000       US$'000    US$'000 
---------------  -----------  -----------  ---------  -----------  ------------  ------------  -------------  ------------  --------- 
 1 January 2020       10,601            -    208,925        1,899      (21,644)      (90,135)        109,646       (3,848)    105,798 
 Loss for the 
  period                   -            -          -            -             -       (6,485)        (6,485)       (1,803)    (8,288) 
 Total other 
  comprehensive 
  loss                     -            -          -            -       (2,860)             -        (2,860)          (13)    (2,873) 
                 -----------  -----------  ---------  -----------  ------------  ------------  -------------  ------------  --------- 
 Total 
  comprehensive 
  loss                     -            -          -            -       (2,860)       (6,485)        (9,345)       (1,816)   (11,161) 
 Change in 
  ownership 
  of 
  subsidiaries             -            -          -            -             -          (10)           (10)            10          - 
 Shareholders' 
  equity 
  at 30 June 
  2020                10,601            -    208,925        1,899      (24,504)      (96,630)        100,291       (5,654)     94,637 
===============  ===========  ===========  =========  ===========  ============  ============  =============  ============  ========= 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2020 - audited

 
                                                                                                      Total 
                                                                                                     Equity 
                                                                                               Attributable 
                                                                                                  to Equity 
                  Redeemable                             Capital                                    Holders          Non- 
                    Ordinary   Management     Share   Redemption   Translation   Accumulated         of the   Controlling      Total 
                      Shares       Shares   Premium      Reserve       Reserve        Losses         Parent     Interests     Equity 
 Consolidated        US$'000      US$'000   US$'000      US$'000       US$'000       US$'000        US$'000       US$'000    US$'000 
---------------  -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Balance at 1 
  January 2019        10,601            -   208,925        1,899      (22,265)      (63,005)        136,155         (966)    135,189 
 Changes in 
  ownership 
  interests 
  in 
  subsidiaries             -            -         -            -             -          (24)           (24)            24          - 
 Loss for the 
  year                     -            -         -            -             -      (27,106)       (27,106)       (2,900)   (30,006) 
 Total other 
  comprehensive 
  loss for the 
  year                     -            -         -            -           621             -            621           (6)        615 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Total 
  comprehensive 
  loss for 
  the year                 -            -         -            -           621      (27,106)       (26,485)       (2,906)   (29,391) 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 As at 31 
  December 
  2019/ 1 
  January 2020        10,601            -   208,925        1,899      (21,644)      (90,135)        109,646       (3,848)    105,798 
 Adjusted 
  balance at 31 
  December 
  2019 / 1 
  January 2020        10,601           -#   208,925        1,899      (21,644)      (90,135)        109,646       (3,848)    105,798 
 
 Changes in 
  ownership 
  interests 
  in 
  subsidiaries             -            -         -            -             -          (38)           (38)            38          - 
 Loss for the 
  year                     -            -         -            -             -      (10,260)       (10,260)       (3,256)   (13,516) 
 Total other 
  comprehensive 
  loss for the 
  year                     -            -         -            -         1,889             -          1,889           189      2,078 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 Total 
  comprehensive 
  loss for                                                                                                                     (11,4 
  the year                 -            -         -            -         1,889      (10,260)        (8,371)       (3,067)       38 ) 
 Disposal of 
  subsidiaries             -            -         -            -           100             -            100             -        100 
                 -----------  -----------  --------  -----------  ------------  ------------  -------------  ------------  --------- 
 
 Shareholders' 
  equity at 31 
  December 2020       10,601           -#   208,925        1,899      (19,655)     (100,433)        101,337       (6,877)     94,460 
                 ===========  ===========  ========  ===========  ============  ============  =============  ============  ========= 
 

# Represents 2 management shares at US$0.05 each

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHSED 30 JUNE 2021

 
                                            Unaudited    Unaudited        Audited 
                                           Six months   Six months           Year 
                                                ended        ended          ended 
                                              30 June      30 June    31 December 
                                                 2021         2020           2020 
                                              US$'000      US$'000        US$'000 
 
 Cash Flows from Operating Activities 
 Loss before taxation                         (3,220)      (8,284)       (13,329) 
 Finance income                               (1,399)        (882)        (3,323) 
 Finance costs                                  4,311        4,426         11,151 
 Loss on disposal of subsidiaries                   -            -            784 
 Unrealised foreign exchange gain               1,736          998          (546) 
 Write down/Impairment of goodwill                  -            -              - 
 Depreciation of property, plant 
  and equipment and right-of-use asset            187           46            479 
 Net realisation value adjustments 
  of inventory                                      -            -              - 
 Operating (loss)/profit before changes 
  in working capital                            1,615      (3,696)        (4,784) 
 Changes in working capital: 
 Decrease /(Increase) in inventories            (753)      (4,287)            856 
 Decrease /(Increase) in trade and 
  other receivables and prepayments               716      (5,442)        (2,607) 
 (Decrease) /Increase in trade and 
  other payables                              (1,326)        6,929          8,164 
----------------------------------------  -----------  -----------  ------------- 
 Cash used in operations                          252      (6,496)          1,629 
 Interest paid                                (4,299)      (4,426)        (9,932) 
 Tax paid                                        (36)        (122)        (2,309) 
----------------------------------------  -----------  -----------  ------------- 
 
 Net cash used in operating activities        (4,083)     (11,044)       (10,612) 
----------------------------------------  -----------  -----------  ------------- 
 
 Cash Flows From Investing Activities 
 Proceeds from disposal of property, 
  plant and 
  equipment                                         -            6              - 
 Purchase of property, plant and 
  equipment                                      (14)         (25)           (39) 
 Proceeds from disposal of subsidiaries             -            -          3,936 
 Finance income received                        1,399          882          3,012 
----------------------------------------  -----------  -----------  ------------- 
 Net cash from investing activities             1,385          863          6,910 
----------------------------------------  -----------  -----------  ------------- 
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONT'D)

FOR THE SIX MONTHSED 30 JUNE 2021

 
                                              Unaudited    Unaudited        Audited 
                                             Six months   Six months           Year 
                                                  ended        ended          ended 
                                                   June      30 June    31 December 
                                                   2021         2020           2020 
                                                US$'000      US$'000        US$'000 
------------------------------------------  -----------  -----------  ------------- 
 Cash Flows From Financing Activities 
 Advances (from)/to non-controlling 
  interests                                         303          578            728 
 Repayment of finance lease liabilities           (227)         (40)          (463) 
 Repayment of loans and borrowings                (481)      (2,496)        (4,879) 
 Drawdown of loans and borrowings 
  and medium term notes                           7,085        9,603          6,526 
 Net decrease in pledged deposits 
  for loans and borrowings and Medium 
  Term Notes                                          -        1,703             75 
 
   Net cash from financing activities             6,680        9,348          1,987 
------------------------------------------  -----------  -----------  ------------- 
 Net changes in cash and cash equivalents 
  during the period/year                          3,982        (833)        (1,715) 
 Effect of changes in exchange rates              (208)          322             48 
 Cash and cash equivalents at the 
  beginning of the period/year (i)                5,948        3,235          7,615 
------------------------------------------  -----------  -----------  ------------- 
 Cash and cash equivalents at the 
  end of the period/year (i)                      9,722        2,724          5,948 
------------------------------------------  -----------  -----------  ------------- 
 
   (i)      Cash and Cash Equivalents 

Cash and cash equivalents included in the consolidated statement of cash flows comprise the following consolidated statement of financial position amounts:

 
                                 Unaudited    Unaudited        Audited 
                                Six months   Six months           Year 
                                     ended        ended          ended 
                                      June      30 June    31 December 
                                      2021         2020           2020 
                                   US$'000      US$'000        US$'000 
-----------------------------  -----------  -----------  ------------- 
 Cash and bank balances              7,261        2,105          3,052 
 Short term bank deposits            2,461        3,121          2,896 
-----------------------------  -----------  -----------  ------------- 
                                     9,722        5,226          5,948 
 Less: Deposits pledged (ii)       (2,174)      (2,502)        (2,619) 
-----------------------------  -----------  -----------  ------------- 
 Cash and cash equivalents           7,548        2,724          3,329 
-----------------------------  -----------  -----------  ------------- 
 

(ii) Included in short term bank deposits and cash and bank balance is US$2,174,000 (31 December 2020:US$2,619,000; 30 June 2020: US$2,502,000) pledged for loans and borrowings and Medium Term Notes of the Group.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHSED 30 JUNE 2021

   1        General Information 

The principal activities of the Group are the development of upscale residential and hospitality projects, sale of development land and operation and sale of hotels, a shopping mall and a hospital in Malaysia and Vietnam.

   2        Summary of Significant Accounting Policies 
   2.1     Basis of Preparation 

The interim condensed consolidated financial statements for the six months ended 30 June 2021 have been prepared in accordance with IAS 34, Interim Financial Reporting.

The interim condensed consolidated financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2020 which have been prepared in accordance with IFRS.

Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings.

The interim results have not been audited nor reviewed and do not constitute statutory financial statements.

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2020 as described in those annual financial statements.

The interim report and financial statements were approved by the Board of Directors on 16 September 2021.

   3        SegmentAL Information 

Segmental information represents the level at which financial information is reported to the Board of Directors, being the chief operating decision makers as defined in IFRS 8. The Directors determine the operating segments based on reports reviewed and used by their staff for strategic decision making and resource allocations. For management purposes, the Group is organised into project units.

The Group's reportable operating segments are as follows:

   (i)       Investment Holding Companies - investing activities; 
   (ii)      Ireka Land Sdn. Bhd. - developed Tiffani ("Tiffani") by i-ZEN; 

(iii) ICSD Ventures Sdn. Bhd. - owns and operates the Harbour Mall Sandakan ("HMS") and the Sandakan hotel asset ("SHA", formerly Four Points by Sheraton Sandakan Hotel);

   (iv)     Amatir Resources Sdn. Bhd. - developed the SENI Mont' Kiara ("SENI"); 
   (v)      The RuMa Hotel KL Sdn Bhd  - operates the RuMa Hotel 
   (vi)     Urban DNA Sdn. Bhd.- developed and owns the RuMa Hotel and Residences ("The RuMa") and 

(vii) Hoa Lam-Shangri-La Healthcare Group - master developer of the International Healthcare Park ("IHP"); owns and operates the City International Hospital ("CIH").

Other non-reportable segments comprise the Group's other development projects. None of these segments meets any of the quantitative thresholds for determining reportable segments in 2020 and 2019.

Information regarding the operations of each reportable segment is included below. The Board of Directors monitors the operating results of each segment for the purpose of performance assessments and making decisions on resource allocation. Performance is based on segment gross profit/(loss) and profit/(loss) before taxation, which the Directors believes are the most relevant in evaluating the results relative to other entities in the industry. Segment assets presented inclusive of inter-segment balances and inter-segment pricing is determined on an arm's length basis.

The Group's revenue generating development projects are located in Malaysia and Vietnam.

   3        SegmentAL Information (continued) 

Operating Segments ended 30 June 2021 - Unaudited

 
 
                                                                                                         Hoa 
                   Investment       Ireka        ICSD       Amatir    The RuMa        Urban   Lam-Shangri-La 
                      Holding        Land    Ventures    Resources    Hotel KL          DNA       Healthcare 
                    Companies        Sdn.        Sdn.    Sdn. Bhd.        Sdn.    Sdn. Bhd.            Group     Total 
                                     Bhd.        Bhd.                     Bhd. 
                      US$'000     US$'000     US$'000      US$'000     US$'000      US$'000          US$'000   US$'000 
---------------  ------------  ----------  ----------  -----------  ----------  -----------  ---------------  -------- 
 Segment 
  (loss)/profit 
  before 
  taxation            (1,745)           -       (223)          227     (1,128)      (1,143)          (1,795)   (5,807) 
===============  ============  ==========  ==========  ===========  ==========  ===========  ===============  ======== 
 Included in 
 the measure 
 of segment 
 (loss)/profit 
 are: 
 Revenue                    -           -           -            -           -          516                -       516 
 Cost of sales              -           -           -            -           -        (416)                -     (416) 
 Revenue from 
  hotel 
  operations                -           -           -            -       1,005            -                -     1,005 
 Revenue from 
  mall 
  operations                -           -         945            -           -            -                -       945 
 Revenue from 
  hospital 
  operations                -           -           -            -           -            -            5,574     5,574 
 Expenses from 
  hotel 
  operations                -           -        (27)            -     (1,967)            -                -   (1,994) 
 Expenses from 
  mall 
  operations                -           -       (636)            -           -            -                -     (636) 
 Expenses from 
  hospital 
  operations                -           -           -            -           -            -          (5,304)   (5,304) 
 Depreciation 
  of property, 
  plant and 
  equipment                 -           -        (26)            -       (139)            -             (16)     (181) 
 Finance costs              -           -       (585)        (102)           -        (869)          (2,037)   (3,593) 
 Finance income           356           -          22          336           -           11                1       726 
===============  ============  ==========  ==========  ===========  ==========  ===========  ===============  ======== 
 Segment assets         5,141         132      58,906        3,192         648      103,929           86,423   258,371 
===============  ============  ==========  ==========  ===========  ==========  ===========  ===============  ======== 
 Segment 
  liabilities          11,500           3       1,806        2,806       2,091       49,686           67,793   135,685 
===============  ============  ==========  ==========  ===========  ==========  ===========  ===============  ======== 
 
   3        SegmentAL Information (continued) 

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

 
 Profit or loss                        US$'000 
------------------------------------  -------- 
 Total loss for reportable segments    (5,807) 
 Other non-reportable segments           2,632 
 Finance income                            673 
 Others                                  (718) 
                                       (5,807) 
------------------------------------  -------- 
 Consolidated loss before taxation     (3,220) 
====================================  ======== 
 
   3        SegmentAL Information (continued) 

Operating Segments ended 30 June 2020 - Unaudited

 
 
 
                                    Ireka        ICSD                 The RuMa       Urban              Hoa 
                   Investment        Land    Ventures       Amatir    Hotel KL         DNA   Lam-Shangri-La 
                      Holding        Sdn.        Sdn.    Resources        Sdn.        Sdn.       Healthcare 
                    Companies        Bhd.        Bhd.    Sdn. Bhd.        Bhd.        Bhd.            Group      Total 
                      US$'000     US$'000     US$'000      US$'000     US$'000     US$'000          US$'000    US$'000 
---------------  ------------  ----------  ----------  -----------  ----------  ----------  ---------------  --------- 
 Segment 
  (loss)/profit 
  before 
  taxation            (1,660)           4     (1,470)           18     (1,518)     (1,227)          (2,397)    (8,250) 
===============  ============  ==========  ==========  ===========  ==========  ==========  ===============  ========= 
 Included in 
 the measure 
 of segment 
 profit/(loss) 
 are: 
 Revenue                    -           -           -            -           -           -                -          - 
 Revenue from 
  hotel 
  operations                -           -         647            -       1,504           -                -      2,151 
 Revenue from 
  mall 
  operations                -           -         731            -           -           -                -        731 
 Revenue from 
  hospital 
  operations                -           -           -            -           -           -            5,615      5,615 
 Marketing 
  expenses                  -           -           -            -           -        (11)                -       (11) 
 Expenses from 
  hotel 
  operations                -           -     (1,744)            -     (2,814)           -                -    (4,558) 
 Expenses from 
  mall 
  operations                -           -       (473)            -           -           -                -      (473) 
 Expenses from 
  hospital 
  operations                -           -           -            -           -           -          (5,680)    (5,680) 
 Depreciation 
  of property, 
  plant and 
  equipment                 -           -           -            -        (23)           -             (23)       (46) 
 Finance costs              -           -       (701)        (169)           -     (1,383)          (2,173)    (4,426) 
 Finance income             -           1          49          209           -          21                7        287 
===============  ============  ==========  ==========  ===========  ==========  ==========  ===============  ========= 
 Segment assets         3,833         351      57,231        6,025       1,486      82,387           86,754   2387,067 
===============  ============  ==========  ==========  ===========  ==========  ==========  ===============  ========= 
 Segment 
  liabilities             164         180       2,783        3,867       2,399       9,993           66,857     86,243 
===============  ============  ==========  ==========  ===========  ==========  ==========  ===============  ========= 
 
   3        SegmentAL Information (continued) 

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

 
 Profit or loss                        US$'000 
------------------------------------  -------- 
 Total loss for reportable segments    (8,250) 
 Other non-reportable segments            (34) 
 Consolidated loss before taxation     (8,284) 
====================================  ======== 
 
   3        SegmentAL Information (continued) 

Operating Segments - Year ended 31 December 2020 - Audited

 
                                                                                                    Hoa Lam 
                   Investment          Ireka        ICSD       Amatir     The RuMa       Urban   Shangri-La 
                      Holding      Land Sdn.    Ventures    Resources     Hotel KL         DNA   Healthcare 
                    Companies           Bhd.        Sdn.    Sdn. Bhd.    Sdn. Bhd.        Sdn.        Group      Total 
                                                    Bhd.                                  Bhd. 
                      US$'000        US$'000     US$'000      US$'000      US$'000     US$'000      US$'000    US$'000 
---------------  ------------  -------------  ----------  -----------  -----------  ----------  -----------  --------- 
 Segment 
  (loss)/profit 
  before 
  taxation            (1,483)             14     (1,314)          171      (2,774)     (1,976)      (4,208)   (11,570) 
===============  ============  =============  ==========  ===========  ===========  ==========  ===========  ========= 
 Included in 
 the measure 
 of segment 
 (loss)/profit 
 are: 
 Revenue                    -              -           -            -            -       1,329            -      1,392 
 Other income 
  from hotel 
  operations                -              -         655            -        2,323           -            -      2,978 
 Other income 
  from mall 
  operations                -              -       1,754            -            -           -            -      1,754 
 Other income 
  from hospital 
  operations                -              -           -            -            -           -       11,800     11,800 
 Expenses from 
  hotel 
  operations                -              -     (1,814)            -      (4,638)           -            -    (6,452) 
 Expenses from 
  mall 
  operations                -              -     (1,380)            -            -           -            -    (1,380) 
 Expenses from 
  hospital 
  operations                -              -           -            -            -           -     (11,094)   (11,094) 
 Depreciation 
  of property, 
  plant and 
  equipment                 -              -           -            -         (48)           -         (47)       (95) 
 Finance costs              -              -     (1,517)        (326)            -     (1,635)      (6,425)    (9,903) 
 Finance income           310              -          68          456            -          22        1,218      2,074 
===============  ============  =============  ==========  ===========  ===========  ==========  ===========  ========= 
 Segment assets         4,464            203      60,999        3,094        1,255     104,524       86,169    260,708 
===============  ============  =============  ==========  ===========  ===========  ==========  ===========  ========= 
 Segment 
  liabilities             596              3       1,911        1,138        2,277      51,087       16,568     73,580 
===============  ============  =============  ==========  ===========  ===========  ==========  ===========  ========= 
 
   3        SegmentAL Information (continued) 

Reconciliation of reportable segment revenues, profit or loss, assets and liabilities and other material items

 
 Profit or loss                         US$'000 
------------------------------------  --------- 
 Total loss for reportable segments    (11,570) 
 Other non-reportable segments          (1,759) 
 Finance income                           1,249 
 Others                                 (1,249) 
 
 Consolidated loss before taxation     (13,329) 
====================================  ========= 
 
 
  3 SegmentAL Information (continued) 
 
   Six months ended 30 June 2021 - Unaudited 
                                                                                                              Addition 
                                                                                                                    to 
                                                                  Finance        Segment        Segment    non-current 
  US$'000           Revenue   Depreciation   Finance costs         income         assets    liabilities         assets 
-----------------  --------  -------------  --------------  -------------  -------------  -------------  ------------- 
 Total reportable 
  segment               516             96         (3,593)            680        258,372        126,003             15 
 
   Other 
   non-reportable 
   segments               -          (144)           (718)            719         10,189         54,673              - 
-----------------  --------  -------------  --------------  -------------  -------------  -------------  ------------- 
 Consolidated 
  total                 516           (48)         (4,311)          1,399        268,561        180,676             15 
=================  ========  =============  ==============  =============  =============  =============  ============= 
 
 
          3 SegmentAL Information (continued) 
 
           Six months ended 30 June 2020 - Unaudited 
                                                                                                                 Addition 
                                              Finance   Finance                                 Segment    to non-current 
  US$'000            Revenue   Depreciation     costs    income      Segment assets         liabilities            assets 
-----------------  ---------  -------------  --------  --------  ------------------  ------------------  ---------------- 
 Total reportable 
  segment                  -           (46)   (4,426)       287             238,067              86,243                 - 
 
   Other 
   non-reportable 
   segments                -              -         -       595              28,159              85,346                25 
-----------------  ---------  -------------  --------  --------  ------------------  ------------------  ---------------- 
 Consolidated 
  total                    -           (46)   (4,426)       882             266,226             171,589                25 
=================  =========  =============  ========  ========  ==================  ==================  ================ 
 
 
  3 SegmentAL Information (continued) 
 
   Year ended 31 December 2020 -Audited 
                                                                                                             Additions 
                                                                                                                    to 
                                                                 Finance         Segment        Segment    non-current 
   US$'000         Revenue   Depreciation   Finance costs         income          assets    liabilities         assets 
----------------  --------  -------------  --------------  -------------  --------------  -------------  ------------- 
 Total 
  reportable 
  segment            1,329          (461)         (9,903)          2,074         260,708         73,580             39 
 Other 
  non-reportable 
  segments               -            366         (1,249)          1,249          10,149        102,817              - 
----------------  --------  -------------  --------------  -------------  --------------  -------------  ------------- 
 Consolidated 
  total              1,329           (95)        (11,152)          3,323         270,857        176,397             39 
================  ========  =============  ==============  =============  ==============  =============  ============= 
 
   3        SegmentAL Information (continued) 

Geographical Information - six months ended 30 June 2021 - Unaudited

 
                       Malaysia   Vietnam   Consolidated 
                        US$'000   US$'000        US$'000 
--------------------  ---------  --------  ------------- 
 Revenue                    516         -            516 
 Non-current assets       9,164       422          9,586 
====================  =========  ========  ============= 
 

Geographical Information - six months ended 30 June 2020 - Unaudited

 
                       Malaysia   Vietnam   Consolidated 
                        US$'000   US$'000        US$'000 
--------------------  ---------  --------  ------------- 
 Revenue                      -         -              - 
 Non-current assets       5,907     3,985          9,892 
====================  =========  ========  ============= 
 

Geographical Information - year ended 31 December 2021 - Audited

 
                       Malaysia   Vietnam   Consolidated 
                        US$'000   US$'000        US$'000 
--------------------  ---------  --------  ------------- 
 Revenue                  1,329         -          1,329 
 Non-current assets       9,489       444          9,933 
====================  =========  ========  ============= 
 

In the financial period/year ended 30 June 2021; 30 June 2020; 31 December 2020, no single customer exceeded 10% of the Group's total revenue.

   4        Seasonality 

The Group's business operations were not materially affected by seasonal factors for the period under review but was affected by the MCO resulting from the Covid 19 pandemic.

   5        Cost of Sales 
 
                               Unaudited    Unaudited        Audited 
                              Six months   Six months           Year 
                                   ended        ended          ended 
                                 30 June      30 June    31 December 
                                    2021         2020           2020 
                                 US$'000      US$'000        US$'000 
 Direct costs attributable 
  to: 
 Completed Units                     416            3            950 
                                     416            3            950 
---------------------------  -----------  -----------  ------------- 
 
   6        Foreign exchange (LOSS)/GAIN 
 
                                    Unaudited    Unaudited        Audited 
                                   Six months   Six months           Year 
                                        ended        ended          ended 
                                      30 June      30 June    31 December 
                                         2021         2020           2020 
                                      US$'000      US$'000        US$'000 
--------------------------------  -----------  -----------  ------------- 
 Foreign exchange gain/(loss) 
  comprises: 
 Realised foreign exchange loss           (3)         (25)           (24) 
 Unrealised foreign exchange 
  gain/(loss)                             855        (998)        (1,027) 
                                          852      (1,023)        (1,051) 
--------------------------------  -----------  -----------  ------------- 
 
   7        Taxation 
 
                                    Unaudited    Unaudited         Audited 
                                   Six months   Six months            Year 
                                        ended        ended           ended 
                                      30 June      30 June     31 December 
                                         2021         2020            2020 
                                      US$'000      US$'000         US$'000 
 Current tax expense                       38            4             139 
 Deferred tax credit                        -            -              48 
--------------------------------  -----------  -----------  -------------- 
 Total tax expense/(income) for 
  the period/year                          38            4             187 
--------------------------------  -----------  -----------  -------------- 
 

The numerical reconciliation between the income tax expense and the product of accounting results multiplied by the applicable tax rate is computed as follows:

 
                                           Unaudited    Unaudited        Audited 
                                          Six months   Six months           Year 
                                               ended        ended          ended 
                                             30 June      30 June    31 December 
                                                2021         2020           2020 
                                             US$'000      US$'000        US$'000 
 
   Net loss before taxation                  (3,220)      (8,284)       (13,329) 
---------------------------------------  -----------  -----------  ------------- 
 
  Income tax at rate of 24%                    (773)      (1,988)        (3,199) 
 
 Add : 
 Tax effect of expenses not deductible 
  in determining taxable profit                  759        3,274          3,781 
 Current year losses and other 
  tax benefits for which no deferred 
  tax asset was recognised                       406          687          3,076 
 Tax effect of different tax rates 
  in subsidiaries                                361          476            162 
 Less : 
 Tax effect of income not taxable 
  in determining taxable profit                (715)      (2,064)        (3,752) 
 (Under)/Over provision in respect 
  of prior period/year                             -        (381)            119 
---------------------------------------  -----------  -----------  ------------- 
 Total tax expense for the period/year            38            4            187 
---------------------------------------  -----------  -----------  ------------- 
 
   7        Taxation (Continued) 

The applicable corporate tax rate in Malaysia is 24%.

The applicable corporate tax rates in Singapore and Vietnam are 17% and 20% respectively.

A subsidiary of the Group, CIH is granted preferential corporate tax rate of 10% for the results of the hospital operations. The preferential income tax is given by the government of Vietnam due to the subsidiary's involvement in the healthcare industry.

The Company is treated as a tax resident of Jersey for the purpose of Jersey tax laws and is subject to a tax rate of 0%. The Company is also registered as an International Services Entity so it does not have to charge or pay local Goods and Services Tax. The cost for this registration is GBP200 per annum.

The Directors intend to conduct the Group's affairs such that the central management and control is not exercised in the United Kingdom and so that neither the Company nor any of its subsidiaries carries on any trade in the United Kingdom. The Company and its subsidiaries will thus not be residents in the United Kingdom for taxation purposes. On this basis, they will not be liable for United Kingdom taxation on their income and gains other than income derived from a United Kingdom source.

   8        LOSS Per Share 

Basic and diluted loss per ordinary share

The calculation of basic and diluted loss per ordinary share for the period/year ended was based on the loss attributable to equity holders of the parent and a weighted average number of ordinary shares outstanding, calculated as below:

 
                                               Unaudited            Unaudited            Audited 
                                              Six months           Six months               Year 
                                                   ended                ended              ended 
                                                 30 June              30 June        31 December 
                                                    2021                 2020               2020 
 Loss attributable to equity 
  holders of the parent ( US$'000)               (1,732)              (6,485)           (10,216) 
 Weighted average number of 
  shares                                198,691,000          198,691,000          198,691,000 
 Loss per share 
 Basic and diluted (US cents)                     (0.87)               (3.26)             (5.16) 
-----------------------------------  -------------------  -------------------  ----------------- 
 
   9        Loans and Borrowings 
 
                               Unaudited   Unaudited              Audited 
                                   As at       As at                As at 
                                 30 June     30 June          31 December 
                                    2021        2020                 2020 
                                 US$'000     US$'000              US$'000 
---------------------------   ----------  ----------  ------------------- 
 Non-current 
 Bank loans                       26,634      25,165               21,925 
 Finance lease liabilities             -         153                    1 
                                  26,634      25,318               21,926 
 ---------------------------  ----------  ----------  ------------------- 
 
 Current 
 Bank loans                      26,94 3      27,949               29,631 
 Finance lease liabilities            43         233                  180 
----------------------------  ----------  ----------  ------------------- 
                                 26,98 6      28,182               29,811 
 ---------------------------  ----------  ----------  ------------------- 
                                 53,62 0      53,500               51,737 
 ---------------------------  ----------  ----------  ------------------- 
 

The effective interest rates on the bank loans and finance lease arrangement for the period ranged from 5.79% to 11.30% (30 June 2020: 5.55% to 12.50%; 31 December 2020: 6.10% to 11.30%) per annum respectively.

Borrowings are denominated in Malaysian Ringgit, United States Dollars and Vietnamese Dong.

Bank loans are repayable by monthly, quarterly or semi-annual instalments.

Bank loans are secured by land held for property development, work-in-progress, operating assets of the Group, pledged deposits and some by the corporate guarantee of the Company.

Reconciliation of movement of loans and borrowings to cash flows arising from financing activities:

 
                As at 1                             Foreign 
                January   Drawdown   Repayment     exchange     As at 30 
                   2021    of loan     of loan    movements    June 2021 
 Unaudited      US$'000    US$'000     US$'000      US$'000      US$'000 
------------  ---------  ---------  ----------  -----------  ----------- 
 Bank loans      51,556      2,674       (481)      (17 2 )      53,57 7 
 Total           51,556      2,674       (481)      (17 2 )      53,57 7 
              =========  =========  ==========  ===========  =========== 
 
 
                As at 1                             Foreign 
                January   Drawdown   Repayment     exchange     As at 30 
                   2020    of loan     of loan    movements    June 2020 
 Unaudited      US$'000    US$'000     US$'000      US$'000      US$'000 
------------  ---------  ---------  ----------  -----------  ----------- 
 Bank loans      53,070      6,998     (2,496)      (4,072)       53,500 
 Total           53,070      6,998     (2,496)      (4,072)       53,500 
              =========  =========  ==========  ===========  =========== 
 
   9        Loans and Borrowings (Continued) 
 
                As at 1                             Foreign    As at 31 
                January   Drawdown   Repayment     exchange    December 
                   2020    of loan     of loan    movements        2020 
 Audited        US$'000    US$'000     US$'000      US$'000     US$'000 
------------  ---------  ---------  ----------  -----------  ---------- 
 Bank loans      53,070      3,148     (4,879)          217      51,556 
 Total           53,070      3,148     (4,879)          217      51,556 
              =========  =========  ==========  ===========  ========== 
 
 
                       As at 1   Repayment                  Foreign   As at 30 
                       January    of lease    Interest     exchange       June 
                          2021     payment    expenses    movements       2021 
 Unaudited             US$'000     US$'000     US$'000      US$'000    US$'000 
-------------------  ---------  ----------  ----------  -----------  --------- 
 Lease Liabilities         181       (227)          12           77         43 
 Total                     181       (227)          12           77         43 
                     =========  ==========  ==========  ===========  ========= 
 
 
                       As at 1   Repayment                  Foreign   As at 30 
                       January    of lease    Interest     exchange       June 
                          2020     payment    expenses    movements       2020 
 Unaudited             US$'000     US$'000     US$'000      US$'000    US$'000 
-------------------  ---------  ----------  ----------  -----------  --------- 
 Lease Liabilities         611       (224)           -          (1)        386 
 Total                     611       (224)           -          (1)        386 
                     =========  ==========  ==========  ===========  ========= 
 
 
                       As at 1   Repayment                  Foreign    As at 31 
                       January    of lease    Interest     exchange    December 
                          2020     payment    expenses    movements        2020 
 Audited               US$'000     US$'000     US$'000      US$'000     US$'000 
-------------------  ---------  ----------  ----------  -----------  ---------- 
 Lease Liabilities         611       (463)          23           10         181 
 Total                     611       (463)          23           10         181 
                     =========  ==========  ==========  ===========  ========== 
 
   10      Medium Term Notes 
 
                                  Unaudited   Unaudited       Audited 
                                      As at       As at         As at 
                                    30 June     30 June   31 December 
                                       2021        2020          2020 
                                    US$'000     US$'000       US$'000 
-------------------------------  ----------  ----------  ------------ 
 Outstanding medium term notes       43,609    (38,060)        40,570 
 Net transaction costs                (161)       (182)         (370) 
 Less: 
 Repayment due within twelve 
  months*                          (43,448)    (37,878)      (40,200) 
-------------------------------  ----------  ----------  ------------ 
 Repayment due after twelve               -           -             - 
  months 
-------------------------------  ----------  ----------  ------------ 
 
   10      Medium Term Notes (continued) 

* Includes net transaction costs in relation to medium term notes due within twelve months of US$0.67 million. (30 June 2020: US$0.18 million; 31 December 2020: US$0.37 million)

Reconciliation of movement of medium term notes to cash flows arising from financing activities:

 
                         As at 1                               Foreign      As at 
                         January   Drawdown      Non-cash     exchange    30 June 
                            2021    of loan    adjustment    movements       2021 
 Unaudited               US$'000    US$'000       US$'000      US$'000    US$'000 
---------------------  ---------  ---------  ------------  -----------  --------- 
 
   Medium Term Notes      40,200      4,411           200      (1,363)     43,448 
                       ---------  ---------  ------------  -----------  --------- 
 
 
                         As at 1                             Foreign 
                         January   Drawdown   Repayment     exchange     As at 30 
                            2020    of loan     of loan    movements    June 2020 
 Unaudited               US$'000    US$'000     US$'000      US$'000      US$'000 
---------------------  ---------  ---------  ----------  -----------  ----------- 
 
   Medium Term Notes      36,142      2,605           -        (869)       37,787 
                       ---------  ---------  ----------  -----------  ----------- 
 
 
                         As at 1                             Foreign    As at 31 
                         January   Drawdown   Repayment     exchange    December 
                            2020    of loan     of loan    movements        2020 
 Audited                 US$'000    US$'000     US$'000      US$'000     US$'000 
---------------------  ---------  ---------  ----------  -----------  ---------- 
 
   Medium Term Notes      36,142      3,378           -          680      40,200 
                       =========  =========  ==========  ===========  ========== 
 

The medium term notes ("MTNs") were issued pursuant to a programme with a tenor of ten (10) years from the first issue date of the notes. The MTNs were issued by a subsidiary, to fund two development projects known as Sandakan Harbour Square and Aloft Kuala Lumpur Sentral ("AKLS") in Malaysia.

In 2016, the Group completed the sale of the AKLS. The net adjusted price value for the sale of AKLS, which included the sale of the entire issued share capital of ASPL M3B Limited and Iringan Flora Sdn. Bhd. (the "Aloft Companies") were used to redeem the MTN Series 2 and Series 3. Following the completion of the disposal of AKLS, US$96.25 million (RM394.0 million) of MTN associated with the AKLS (Series 3) and the Four Points Sheraton Sandakan (Series 2) were repaid on 19 August 2016. The charges in relation to AKLS was also discharged following the completion of the disposal.

In 2017, Silver Sparrow Berhad ("SSB") obtained consent from the lenders to utilise proceeds of US$4.64 million in the Sales Proceeds Account and Debt Service Reserve Account to partially redeem the MTNs in November 2017. SSB also secured "roll-over" for the remaining MTNs of US$24.43 million which is due on 10 December 2019 and 8 December 2020, it is now repayable on 8 December 2021. The MTNs are rated AAA.

No repayments were made in the current financial period.

   10      Medium Term Notes (continued) 

The weighted average interest rate of the MTN was 6.02% per annum at the statement of financial position date. The effective interest rates of the MTN and their outstanding amounts are as follows:

 
                                             Interest rate 
                           Maturity Dates     % per annum      US$'000 
----------------------  ------------------  --------------  ---------- 
 Series 1 Tranche FGI    8 Dec 2021              6.02           13,726 
 Series 1 Tranche BG     8 Dec 2021              6.02           10,354 
                                                                24,080 
 -----------------------------------------  --------------  ---------- 
 

The medium term notes are secured by way of:

   (i)      bank guarantee from two financial institutions in respect of the BG Tranches; 

(ii) financial guarantee insurance policy from Danajamin Nasional Berhad ("Danajamin") in respect to the FG Tranches;

(iii) a first fixed and floating charge over the present and future assets and properties of Silver Sparrow Berhad and ICSD Ventures Sdn. Bhd. by way of a debenture;

   (iv)    a third party first legal fixed charge over ICSD Ventures Sdn. Bhd.'s assets and 

land;

   (v)     a corporate guarantee by the Company; 

(vi) letter of undertaking from the Company to provide financial and other forms of support to ICSD Ventures Sdn. Bhd. to finance any cost overruns associated with the development of the Sandakan Harbour Square;

(vii) assignment of all its present and future rights, interest and benefits under the ICSD Ventures Sdn. Bhd.'s Put Option Agreements in favour of Danajamin, Malayan Banking Berhad and OCBC Bank (Malaysia) Berhad (collectively as "the guarantors") where once exercised, the sale and purchase of HMS and SHA shall take place in accordance with the provision of the Put Option Agreement; and the proceeds from HMS and SHA will be utilised to repay the MTNs;

(viii) assignment over the disbursement account, revenue account, operating account, sale proceed account, debt service reserve account and sinking fund account of Silver Sparrow Berhad; revenue account of ICSD Venture Sdn. Bhd;

(ix) assignment of all ICSD Ventures Sdn. Bhd's present and future rights, title, interest and benefits in and under the insurance policies; and

(x) a first legal charge over all the shares of Silver Sparrow Berhad, ICSD Ventures Sdn. Bhd. and any dividends, distributions and entitlements.

   10      Medium Term Notes (continued) 

Potensi Angkasa Sdn Bhd ("PASB"), a subsidiary incorporated on 25 February 2019, has secured a commercial paper and/or medium term notes programme of not exceeding US$21.02 mil (R M90.0 million) ("CP/MTN Programme") to fund a project known as The RuMa Hotel and Residences. PASB may, from time to time, issue commercial paper and/or medium term notes ("Notes") whereby the nominal value of outstanding Notes shall not exceed US$21.02 million (RM90.0 million) at any one time. The details of the drawdown schedule were as follow s :

 
           Initial Issue                      First Rolled-over                 Second Rolled-over 
-----------------------------------  ----------------------------------  ------------------------------- 
 
   Tranche                   RM         Tranche                  RM         Tranche                RM 
    Number      Date       ('000)       Number      Date       ('000)       Number      Date     ('000) 
-----------  --------  ------------  ----------  -------  -------------  ----------  -------  ---------- 
  Tranche     10 Jun                   Tranche    10 Jun                   Tranche    10 Jun 
    1-23        2019        22,850      63-83      2020         20,950     124-142     2021       20,950 
  Tranche     30 Sep                   Tranche    30 Sep 
    24-31       2019          9,600     84-91      2020           9,600 
  Tranche      7 Oct                   Tranche    7 Oct 
    32-49       2019        17,100      92-109     2020         17,100 
  Tranche     25 Feb                   Tranche    25 Feb 
    50-62       2020        15,350     110-122     2021         15,350 
  Tranche      9 Jun 
     123        2021        18,100 
-----------  --------  ------------  ----------  -------  -------------  ----------  -------  ---------- 
 

The weighted average interest rate of the loan was 6.2% per annum at the statement of financial position date. The effective interest rates of the medium term notes and their outstanding amounts were as follows:

Maturity

 
                                        Interest rate 
                      Maturity Dates     % per annum      US$'000 
-----------------  ------------------  --------------  ---------- 
 Tranche 84-91      1 Oct 2021               6.0            2,312 
 Tranche 92-109     8 Oct 2021               6.0            4,118 
 Tranche 110-122    28 Feb 20 22             6.0            3,696 
 Tranche 123        10 Jun 202 2             7.0            4,358 
 Tranche 124-142    13 Jun 202 2             6.0            5,045 
                                                           19,529 
 ------------------------------------  --------------  ---------- 
 

Security for CP/MTN Programme

(a) A legal charge over the Designated Accounts by the PASB and/or the Security Party (as defined below) (as the case may be) and assignment of the rights, titles, benefits and interests of the PASB and/or the Security Party (as the case may be) thereto and the credit balances therein on a pari passu basis among all Notes, subject to the following:

(i) In respect of the 75% of the sale proceeds of a Secured Asset ("Net Sale Proceeds") arising from the disposal of a Secured Asset, the Noteholders of the relevant Tranche secured by such Secured Asset shall have the first ranking security over such Net Sale Proceeds;

(j)

   10      Medium Term Notes (continued) 

(ii) In respect of the insurance proceeds from the Secured Assets ("Insurance Proceeds"), the Noteholders of the relevant Tranche secured by such Secured Asset shall have the first ranking security over such Insurance Proceeds;

(iii) In respect of the sale deposits from the Secured Assets ("Sale Deposits"), the Noteholders of the relevant Tranche secured by such Secured Asset shall have the first ranking security over such Sale Deposits;

(iv) In respect of the amount at least equivalent to an amount payable in respect of any coupon payment of that particular Tranche for the next six (6) months to be maintained by the Issuer ("Issuer's DSRA Minimum Required Balance"), the Noteholders of the relevant Tranche shall have the first ranking security over such Issuer's DSRA Minimum Required Balance;

(v) In respect of the proceeds from the Collection Account ("CA Proceeds"), the Noteholders of the relevant Tranche shall have the first ranking security over such CA Proceeds; and

(vi) In respect of any amount deposited by the Guarantor which are earmarked for the purposes of an early redemption of a particular Tranche of the Notes and/or principal payment of a particular Tranche of the Notes ("Deposited Amount"), the Noteholders of the relevant Tranche shall have the first ranking security over such Deposited Amount;

(b) An irrevocable and unconditional guarantee provided by the Urban DNA Sdn Bhd for all payments due and payable under the CP/MTN Programme ("Guarantee"); and

(c) Any other security deemed appropriate and mutually agreed between the PASB and the Principal Adviser/Lead Arranger ("PA/LA"), the latter being Kenanga Investment Bank Berhad.

Security for each medium term note:

Each Tranche shall be secured by assets ("Secured Assets") to be identified prior to the issue date of the respective Tranche.

Such Secured Assets may be provided by third party(ies), (which, together with the Guarantor, shall collectively be referred to as "Security Parties" and each a "Security Party") and/or by the PASB. Subject always to final identification of the Secured Asset prior to the issue date of the respective Tranche, the security for any particular Tranche may include but not limited to the following:

(a) Legal assignment and/or charge by the PASB and/or the Security Party (as the case may be) of the Secured Assets;

(b) An assignment over all the rights, titles, benefits and interests of the PASB and/or the Security Party (as the case may be) under all the sale and purchase agreements executed by end-purchasers and any subsequent sale and purchase agreement to be executed in the future by end-purchaser (if any), in relation to the Secured Assets;

(k) A letter of undertaking from Aseana Properties Limited to, amongst others, purchase the Secured Assets ("Letter of Undertaking"); and/or

   10      Medium Term Notes (continued) 

(c) Any other security deemed appropriate and mutually agreed between the Issuer and the PA/LA and/or Lead Manager prior to the issuance of the relevant Tranche.

The security for each Tranche is referred to as "Tranche Security".

   11      Related Party Transactions 

Transactions between the Group with Ireka Corporation Berhad ("ICB") and its group of companies are classified as related party transactions based on ICB's 23.07% shareholding in the Company.

Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel include all the Directors of the Group, and certain members of senior management of the Group.

 
                                         Unaudited    Unaudited                   Audited 
                                        Six months   Six months                      Year 
                                             ended        ended                     ended 
                                           30 June      30 June               31 December 
                                              2021         2020                      2020 
                                           US$'000      US$'000                   US$'000 
-------------------------------------  -----------  -----------  ------------------------ 
 ICB Group of Companies 
  Accounting and financial reporting 
   services fee charged by an ICB                -          208 
   subsidiary                                                                           - 
 Accrued interest on shareholders 
  advance payable by ICB                       356            -                       227 
 Accrued interest on a contract 
  payment by an ICB subsidiary                  70            -                        83 
 Construction progress claim charged 
  by ICB subsidiary                              -          604                         - 
 Hosting and IT support services 
  charged by an ICB subsidiary                   2           38                         - 
 Marketing commission charged 
  by an ICB subsidiary                           7            8                         - 
  Rental expenses charge by an 
   ICB subsidiary                               29           36                         - 
 Secretarial and administrative 
  services fee charged by an ICB                            371                         - 
  subsidiary                                     - 
 
 Key management personnel 
 Remuneration of key management 
  personnel - Directors' fees                  146          312                       233 
 Remuneration of key management 
  personnel - Salaries                         125           47                        67 
-------------------------------------  -----------  -----------  ------------------------ 
 
   11      Related Party Transactions (continued) 

Transactions between the Group and other significant related parties are as follows:

 
                                     Unaudited    Unaudited        Audited 
                                    Six months   Six months           Year 
                                         ended        ended          ended 
                                       30 June      30 June    31 December 
                                          2021         2020           2020 
                                       US$'000      US$'000        US$'000 
---------------------------------  -----------  -----------  ------------- 
 Non-controlling interests 
 Advances - non-interest bearing 
  Other related parties                    193          578            731 
 Disposal of subsidiaries                    -            -          3,936 
---------------------------------  -----------  -----------  ------------- 
 

The above transactions have been entered into in the normal course of business and have been established on terms and conditions that are not materially different from those obtainable in transactions with unrelated parties.

The outstanding amounts due from/ (to) ICB and its group of companies as at 30 June 2021, 30 June 2020 and 31 December 2020 are as follows:

 
                               Unaudited                        Audited 
                                   As at       Unaudited          As at 
                                 30 June           As at    31 December 
                                    2021    30 June 2020           2020 
                                 US$'000         US$'000        US$'000 
----------------------------  ----------  --------------  ------------- 
 Net amount due from an ICB 
  subsidiary                       1,945           4,555          1,953 
 
 Net amount due from ICB           5,109           3,692          3,381 
----------------------------  ----------  -------------- 
 
 

The outstanding amounts due from/ (to) the other significant related parties as at 30 June 2021, 30 June 2020 and 31 December 2020 are as follows:

 
                                                                         Audited 
                                        Unaudited       Unaudited          As at 
                                            As at           As at    31 December 
                                     30 June 2021    30 June 2020           2020 
                                          US$'000         US$'000        US$'000 
---------------------------------  --------------  --------------  ------------- 
 Non-controlling interests 
 Advances - non-interest bearing         (10,830)        (10,923)       (11,370) 
---------------------------------  --------------  --------------  ------------- 
 

Transactions between the parent company and its subsidiaries are eliminated in these consolidated financial statements.

   12      Dividends 

The Company has not paid or declared any dividends during the financial period ended 30 June 2021.

   13      Interim Statement 

Copies of this interim statement are available on the Company's website www.aseanaproperties.com or from the Company's registered office at 12 Castle Street, St. Helier, Jersey, JE2 3RT, Channel Islands.

   14      EVENTS AFTER STATEMENT OF FINANCIAL POSITION DATE 

On 25th August, 2021 the Company announced that it had entered into a binding agreement to sell its entire interest in both the City International Hospital and the adjacent International Healthcare Park in HCM. The terms of the transaction are subject to approvals from regulatory authorities as well as conditions to completion. It is expected the completion will take several months. Once completed, the Company will have no assets in Vietnam.

On 9th September, 2021 the Company announced it had entered into a conditional agreement to sell the remaining 58 unsold residences at The Ruma Hotel & Residences in Kuala Lumpur. Gross sale price is MYR 85.3m (approximately US $20.5m) and is subject to final due diligence by the Buyer as well as receipt of government approval for the sale to a foreign investor. Expected completion will take place within 8 months.

Principal Risks and Uncertainties

The Board has overall responsibility for risk management and internal control. The following have been identified previously as the areas of principal risk and uncertainty facing the Company, and they remain relevant in the second half of the year.

   --    Economic 
   --    Strategic 
   --    Regulatory 
   --    Law and regulations 
   --    Tax regimes 
   --    Management and control 
   --    Operational 
   --    Financial 
   --    Going concern 

For greater detail, please refer to page 19 of the Company's Annual Report for 2020, a copy of which is available on the Company's website www.aseanaproperties.com .

RESPONSIBILITY STATEMENT

The Directors of the Company confirm that to the best of their knowledge that:

a) The condensed consolidated financial statements have been prepared in accordance with IAS 34 (Interim Financial Reporting);

b) The interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c) The interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).

On behalf of the Board

Nicholas John Paris

Director

16 September 2021

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IR DKABPBBKDPCD

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September 16, 2021 09:01 ET (13:01 GMT)

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