Source - RNS
RNS Number : 0726K
All Asia Asset Capital Limited
16 September 2016
 

 

 

Press Release                                                                                        16 September 2016

 

All Asia Asset Capital Limited

 

(All Asia Asset Capital", "AAA" or the "Company")

 

Unaudited Interim Results for the period ended 30 June 2016

 

All Asia Asset Capital (AIM: AAA), an investing company focused on the growing markets of the Asia Pacific region, today announces its unaudited interim results for the six months ended 30 June 2016.

 

Highlights:

·     During six months ended 30 June 2016, the Company maintained its two investments which are minority stakes in Andaman Power and Utility Company Limited ("APU"), a company based in Thailand and Myanmar which operates in the development of utility plants and the provision of electricity, and Myanmar Allure Group Co., Ltd. ("MAG"), which owns and operates the Allure Resort, a combined hotel, resort and gaming facilities located in Tachileik province, Myanmar, in the vicinity of the Thailand-Myanmar Mae Sai border.

·      During the 6 months ended 30 June 2016 the Company made a profit of £0.46 million. This profit was due to a £0.57 million revaluation of the investments as a result of the devaluation of the GBP following the BREXIT vote in the UK to leave the EU.

 

·     In September 2016 the board appointed Mr. Paniti Junhasavasdikul as Chief Executive Officer and a director of the Company. He has 20 years of legal, interim management and private equity experience having worked as a lawyer in various transactions and investments ranging from start-ups, M&A, special situation investments, debt trades, turnarounds, disputes and corporate governance.

 

 

Robert Berkeley, Chairman of AAA said: "During these 6 months in review, the Company remained committed to its two investments in Andaman Power and Utility Company Limited which operates in the development of utility plants and the provision of electricity in Myanmar, and Myanmar Allure Group Co., Ltd., which owns and operates the Allure Resort, a combined hotel, resort and gaming facilities located in Myanmar. We are also delighted at the recent appointment of Mr. Paniti Junhasavasdikul as Chief Executive Officer and believe that with his expertise and experience, the Company will move ahead in a positive direction and continue seeking other investment opportunities in the region in order to deliver and enhance values to its shareholders."

 

-Ends-

 



For further information:

All Asia Asset Capital Limited


Robert Berkeley, Executive Chairman and Finance Director


Wai Tak Jonathan Chu, Executive Director


Tel: +44 (0) 203 713 4490


Tel: +852 3756 0124


www.aaacap.com


 

Allenby Capital Limited (Nomad & Broker)


Nick Athanas / Nick Naylor


Tel: +44 (0) 203 328 5656


www.allenbycapital.com


 

About AAA

AAA is an investment company that has been established as a platform for investors looking to access growing markets in the Asia-Pacific region. The Company invests in a portfolio of companies with at least a majority of operations (or early-stage companies that intend to have at least a majority of their operations) in the Asia-Pacific region in industries with high growth potential including, but not limited to: agriculture, forestry and plantations, mining, natural resources, property, and/or technology. AAA is publicly quoted and its shares are traded on the AIM Market, which is operated by the London Stock Exchange.



 

Chairman's Statement

 

I am pleased to present the results of All Asia Asset Capital Limited (the "Company") together with its subsidiaries (the "Group") for the half year ending 30 June 2016.

 

Business Review

 

During the year ended 30 June 2016 the Company continued its focus on Myanmar. The Company maintained its minority investment of 7 per cent. interest in APU and 7 per cent. interest in MAG.

 

As previously noted the Company's 7 per cent stake in APU has gained increased visibility as APU is now majority owned by United Power of Asia Public Company Limited, a public listed company in Thailand.  APU is moving forward to further developments of 200 Megawatt plants in the region and is currently seeking financing for the project development. The Company is actively seeking for opportunities to realise its investment in APU but at this stage no discussions are at an advanced stage.

 

During the year MAG continued operating the Allure Resort, a combined hotel, resort and gaming facilities located in Tachileik province, Myanmar, in the vicinity of the Thailand-Myanmar Mae Sai border. The resort is situated in an 11-acre plot and is easily accessible from Chiang Rai, Thailand and located within 5 minutes walk from the border. MAG intends to expand its business including the development of a new building and partnerships with other gaming operators in order to fulfill increasing demand in this sector.

 

Financial Results

 

During the 6 months ended 30 June 2016 the Company made a net profit of £0.46 million (12 months ended 31 December 2015: net loss of £0.3 million) . This profit is after taking account of a  £0.57 million revaluation of the investments as a result of the devaluation of the GBP following the BREXIT vote in the UK to leave the EU.

 

The majority of the assets of the Group consists of its two investments in APU and MAG which, as at 30 June 2016, had a carrying value of £6.07 million in AAA's balance sheet. AAA's investments in APU and MAG have been attributed fair values of £4.338 million and £1.730 million respectively as at 30 June 2016. As at 30 June 2016 the net assets of the Group were £6.14 million (31 December 2015: net assets of £5.68 million) and the Group had cash and cash equivalents of £0.06 million (31 December 2015: cash and cash equivalents of £0.19 million). Further details on the methodology for valuing the investments is contained in note 7 to the interim financial statements.

 

Board Changes

I am pleased to announce the appointment of Mr. Paniti Junhasavasdikul as Chief Executive Officer and a director of the Company as of the 9 September 2016.

Mr. Junhasavasdikul has 20 years of legal, interim management and private equity experience. He has worked as a lawyer in various transactions and investments ranging from start-ups, M&A, special situation investments, debt trades, turnarounds, disputes and corporate governance. He was a co-founder of FBLP Legal Co., Ltd where he was a partner from 2000 to 2007 before the practice was merged with DFDL International Law Offices where he was an equity partner between 2007 to 2010, based in the CLMV (Cambodia, Laos, Myanmar and Vietnam) countries. Paniti subsequently became a general partner and a director in a Cayman Islands private equity fund with an investment focus on Thailand where he was responsible for investment structuring and transactions, legal due diligence and formation of funds. Paniti has also been the sole acting attorney for an international private equity fund for over 10 years and sits on the board of certain of their portfolio companies, including Svenson Hair Center (Thailand) Limited and MarieFrance Bodyline International (Thailand) Limited. Paniti was also previously an independent director of Christiani & Nielsen (Thai) Public Company Limited, a company quoted on the Thailand Stock Exchange.

Paniti was a member of the International Advisory Council of International and Executive Legal Education (IELE), Berkeley Law, University of California between 2009 and 2014. He graduated with an LLB from Chulalongkorn University, Faculty of Law in 1992 and received an LLM from University of California, Berkeley in 1995. He is a member of the Thai Bar Association and the Law Society of Thailand.

I am confident that his experience will allow us to drive the company forward in a positive direction into 2017 and beyond.

 

Economic Outlook

 

The World bank in a recent report commented that the historic elections of November 2015 created a general sense of economic optimism and private investors have remained upbeat. However, ongoing structural constraints, short-term exchange rate pressures, rising inflation, and the political transition have contributed to a deceleration in new investment flows, however real GDP growth in Myanmar is still projected to be 7.8% in 2016-2017, and an average of 8.2% per year over the medium-term. The focus on electrifying the entire country is still seen as creating significant opportunities for industry players in this sector. The Board of AAA hopes that investment in APU will play a key part in that.

 

As highlighted in my previous statement the hospitality industry in Myanmar is experiencing significant growth with the number of foreign visitors increasing to 4.7 million in 2015, up from just 800,000 in 2011 (Source : The Irrawaddy Report, May 2016). The Myanmar National Tourism Master Plan envisages the number of foreign visitors to increase to 7.5 million by 2020, supported by the Country's US$500 million funding in this industry on training tourism workers, developing destinations and improving connectivity.

 

Appreciation

 

I would like to thank all the hard work of my fellow Board members and staff, our advisers and of course our shareholders for their continuing support for AAA. I sincerely hope that the Company will continue to enjoy such support towards the development of the Group in the years to come

 

 



 

ALL ASIA ASSET CAPITAL LIMITED

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 



Six months ended 30 June



2016


2015


Notes

GBP

(Unaudited)


GBP

(Unaudited)






Other income


677


-

Administrative expenses


(110,888)


(206,457)

Loss before tax

3

(110,211)


(206,457)

Income tax

5

-


-

 

Loss for the period attributable to the owners of the Company


(110,211)


(206,457)

Other comprehensive income:





Items that may reclassified subsequently to profit or loss:





 Fair value loss on available-for-sale financial assets


-


-

Exchange difference on translating financial

Statements of foreign subsidiaries

569,399


(61,064)

Total comprehensive income/(expenses) for the period


459,188


(267,521)






Loss per ordinary share





Basic loss per ordinary share

6(a)

(0.05pence)


(0.10pence)

Diluted loss per ordinary share

6(b)

(0.05pence)


(0.10pence)






 

  

 

The notes on page 10 to 15 form an integral part of these financial statements.



ALL ASIA ASSET CAPITAL LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

 



As at 30 Jun 2016


As at 31 Dec 2015


Notes

GBP

(Unaudited)


GBP

(Audited)

ASSETS





Non-current assets





Property, plant and equipment


11,361


12,919

Available-for-sale financial assets

7

6,067,911


5,490,437



6,079,272


5,503,356

Current assets





Cash and bank balances


64,098


186,783

Total current assets


68,923


191,613

Total assets


6,148,195


5,694,969

 

CAPITAL AND RESERVES





Share capital

8

6,284,194


6,284,194

Reserves


(146,287)


(605,475)

Total equity


6,137,907


5,678,719

 

LIABILITIES





 

Current liabilities





Other payables and accruals


10,288


16,250

 

Total liabilities


10,288


16,250

 

Total equity and liabilities


6,148,195


5,694,969

 

Net current assets


58,635


175,363

 

Total assets less current liabilities


6,137,907


5,678,719

 

Net assets


6,137,907


5,678,719

 

Approved and authorised for issue by the board of directors on 16 September 2016







 

 

 

 






Wai Tak Jonathan Chu

Director


Robert Anthony Rowland Berkeley

Director

 

 

 

The notes on page 10 to page 15 form an integral part of these financial statements

ALL ASIA ASSET CAPITAL LIMITED

CONSOLIDATED STATEMENT OF CHANGE IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 


Share

capital

Fair

value

reserve

Share

option

reserve

Exchange

reserve

Accumulated

losses

 

Total


GBP

GBP

GBP

GBP

GBP

GBP








At 1 January 2016

6,284,194

180,779

44,125

601,104

(1,431,483)

5,678,719

Total comprehensive

income for the period

-

-

-

569,399

(110,211)

459,188














As at 30 June 2016

6,284,194

180,779

44,125

1,170,503

(1,541,694)

6,137,907








At 1 January 2015

5,794,969

147,676

180,051

345,233

(1,130,337)

5,337,592

Total comprehensive

expenses for the period

-

-

-

(61,064)

(206,457)

(267,521)

Issuance of shares

489,225

-

-

-

-

489,225














As at 30 June 2015

6,284,194

147,676

180,051

284,169

(1,336,794)

5,559,296








 

 

 

The notes on page 10 to page 15 form an integral part of these financial statements



ALL ASIA ASSET CAPITAL LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 


Six months ended 30 June


2016


2015


GBP

(Unaudited)


GBP

(Unaudited)

Operating activities




Loss before taxation

(110,211)


(206,457)

Adjustments for:




   Bank interest income

(2)


-

   Depreciation of property, plant and equipment

1,448


2,480

   Foreign exchange (gain)/loss

(675)


1,872

Operating loss before working capital changes

(109,440)


(202,105)

   Decrease in deposits and prepayments

-


10,723

   Decrease in accrual and other payable

(5,942)


(340,526)

 

Cash used in operating activities

 

   Interest received

 

 

(115,382)

 

2

 


 

(531,908)

 

-

 

Net cash used in operating activities

(115,380)


(531,908)

Financing activities




Issue of share capital

-


489,225

Net cash generated from financing activities

-


489,225

Net decrease in cash and cash equivalents

(115,380)


(42,683)

Cash and cash equivalents at beginning of the period

186,783


452,395

Effect of foreign exchange rate changes, net

(7,305)


(1,707)

Cash and cash equivalents at end of the period

64,098


408,005

Analysis of balances of cash and cash equivalents




Cash and bank balances

64,098


408,005

 

 

 

 

The notes on page 10 to page 15 form an integral part of these financial statements

ALL ASIA ASSET CAPITAL LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

1.    GENERAL INFORMATION

 

All Asia Asset Capital Limited (the "Company") is an investment company incorporated in British Virgin Islands on 14 September 2012 with its registered office located on Commerce House, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands. The shares of the Company are listed on the AIM market of the London Stock Exchange on 2 May 2013.

 

The principal activity of the Company is to invest in growing markets of Asia Pacific region.

 

The financial information relating to the six months ended 30 June 2016 is unaudited and does not constitute statutory accounts.

 

2.    APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRSs")

 

(a)  Statement of compliance

 

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRSs") which included International Accounting Standards ("IASs") issued by the International Accounting Standards Board ("IASB") which comprised standards, amendments and interpretations approved by the IASB and International Financial Reporting Interpretations Committee ("IFRIC"), together with applicable British Virgin Islands law.

 

The IASB has issued certain amendments and interpretations which are or have become effective. It has also issued certain new and revised IFRSs which are first effective or available for early adoption for the current accounting period of the Group. The following paragraph provides information on initial application of these developments to the extent that they are relevant to the Group for the current and prior accounting periods reflected in these consolidated financial statements.

 

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2015, except for the adoption of the new and revised IFRSs and interpretations as of 1 January 2016, noted below:

 

Amendments to a number of IFRSs         Annual Improvements 2012-2014 Cycle1

Amendments to IAS 1                             Disclosure Initiative1

Amendments to IAS 16                           Clarification of Acceptable Methods of Depreciation and

 and IAS 38                                            Amortisation1

                                                              Amendments to IAS 16               Agriculture: Bearer Plants1

 and IAS 41

Amendments to IAS 27                           Equity Method in Separate Financial Statements1

Amendments to IFRS 10,                        Investment Entities: Applying the Consolidated Exception1

IFRS 12 and IAS 28                                                                                                                                  

Amendments to IFRS 11                         Accounting for Acquisition of Interests in Joint Operations2

 

The adoption of the new IFRSs in the current period has had no material effect on the Group's financial performance and positions for the current and prior years and/or the disclosures set out in these interim condensed consolidated financial statements.

 

 

 

 

 

 

ALL ASIA ASSET CAPITAL LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

2.    APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS - CONTINUED

 

(b) New and revised IFRSs issued but not yet effective

 

The Group has not applied the following new and revised IFRSs that have been issued but are not

yet effective:

 

IFRS 9                                                     Financial instruments2

IFRS 15                                                   Revenue from contracts with customers2

IFRS 16                                                   Lease3

Amendments to IFRS 10                            Sale or contribution of assets between an investor and its

          and IAS 28 (2011)                                      associate or joint venture4

Amendments to IFRS 2                              Classification and movement of share-based payment transactions3

Amendments to IAS 7                                Disclosure Initiative1                             

 

       Notes:

         1                 Effective for annual periods beginning on or after 1 January 2017

         2                 Effective for annual periods beginning on or after 1 January 2018

         3                 Effective for annual periods beginning on or after 1 January 2019

         4          No mandatory effective date but is available for early adoption.

 

The Group is in the process of making an assessment of the impact of these new and revised IFRSs upon initial application. So far, the Group considers that these new and revised IFRSs are unlikely to have a significant impact on the Group's results of operations and financial position.

 



 

ALL ASIA ASSET CAPITAL LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

2.    APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS - CONTINUED

 

IFRS 16 Leases

IFRS 16 issued in 2016 introduces new principles for the recognition, measurement, presentation and disclosure of leases, with the objective of ensuring that lessees and lessors provide relevant information that faithfully represents those transactions. IFRS 16 will supersede the current lease recognition guidance including IAS 17 Lease and the related Interpretations when it becomes effective.

 

As for lessees, all leases result in a company (the lessee) obtaining the right to use an asset at the start of the lease and, if lease payments are made over time, also obtaining financing. Accordingly, IFRS 16 eliminates the classification of leases as either operating leases or finance leases as is required by IAS 17 and, instead, introduces a single lessee accounting model. Applying that model, a lessee is required to recognise:

 

assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset

     is of low value; and

 

depreciation of lease assets separately from interest on lease liabilities in the income statement.

 

As for lessors, IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently.

 

Overall, the most significant effect of the new requirements will be an increase in recognised lease assets and financial liabilities.

 

The directors of the Company anticipate that the implementation of IFRS 16 in the future will affect the classification and measurement in lessee accounting. However, it is not practicable to provide a reasonable estimate of that effect until a detailed review has been completed.

 

3.    LOSS BEFORE TAX

 

       Loss before tax arrived at after charging/(crediting):

 


Six month ended 30 June


2016


2015


GBP


GBP

 

Depreciation of property, plant and equipment

1,448


2,480

Foreign exchange (gain)/loss

(675)


1,872

Staff costs (including directors' remuneration)




- Salaries and other benefits

29,466


100,718

- Fees                                       

11,250


11,250

- Retirement scheme contribution

1,935


2,854

Operating lease payment in respect of office premises

7,111


32,602

 

 

 

 

 

ALL ASIA ASSET CAPITAL LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

4.    DIRECTORS' REMUNERATION

      

The emoluments paid or payable to each of the directors were as follows:

 

For six months ended 30 June 2016 (unaudited):

 


 

 

Fees

Salaries

and other

benefits

Share-based

payment

Retirement scheme contribution

 

 

Total


GBP

GBP

GBP

GBP

GBP

Executive directors






Mr. Robert Anthony

 Rowland Berkeley

-

6,000

-

-

6,000

Mr. Chu Wai Tak

Jonathan (Note 2)

-

6,095

-

305

6,400







 

Independent

non-executive director

-

12,095

-

305

12,400

Mr. Seah Boon Chin

11,250

-

-

-

11,250


11,250

12,095

-

305

23,650

      

For six months ended 30 June 2015 (unaudited):

 


 

 

Fees

Salaries

and other

benefits

Share-based

payment

Retirement scheme contribution

 

 

Total


GBP

GBP

GBP

GBP

GBP

Executive directors






Dr. Sri Hartati

 Kurniawan ( Note 1)

-

55,002

-

1,524

56,526

Mr. Robert Anthony

 Rowland Berkeley

-

6,000

-

-

6,000

Mr. Chu Wai Tak

Jonathan (Note 2)

-

965

-

151

1,116

Mr. Akekachat

 Leelapanyalert (Note 3)

-

3,000

-

-

3,000


-

64,967

-

1,675

66,642

 

Independent

non-executive director






Mr. Seah Boon Chin

11,250

-

-

-

11,250

 

 

 

11,250

 

64,967

 

-

 

1,675

 

77,892

 

Notes:

1.   Dr. Sri Hartati Kurniawan resigned on 20 July 2015.

2.   Mr. Chu Wai Tak Jonathan was appointed on 2 April 2015.

3.   Mr. Akekachat Leelapanyalert resigned on 25 March 2015.

 

 

 

 

 

 

ALL ASIA ASSET CAPITAL LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

5.    INCOME TAX

 

No change to income tax arises in the period as there were no taxable profits in the period. The Company and its subsidiaries, except the Hong Kong subsidiary, are incorporated in British Virgin Islands and are not subject to any income tax.

 

The Hong Kong subsidiary of the Company did not record any assessable profits during the period (2015: nil).

 

No deferred tax asset has been recognised in respect of the tax loss due to the loss are not recognised by the tax authority of relevant jurisdictions.

 

6.    LOSS PER SHARE

 

(a)   Basic loss per share

 

During the period, the calculation of basic loss per share is based on the loss for the period attributable to shareholders of GBP110,211 (2015: GBP206,457) by the weight average number of 212,826,072 ordinary shares in issue during the period (2015: 210,753,696).

 

(b)   Diluted loss per share

 

No adjustment has been made to the basic loss per share presented for the six months ended 30 June 2015 and 30 June 2016 in respect of a dilution as the impact of the share options outstanding had an anti-dilutive effect on the basic loss per share presented.

 

7.    AVAILABLE-FOR-SALE FINANCIAL ASSETS

 

Available-for-sale financial assets comprise of:


30 June

2016


31 December

2015


GBP

(Unaudited)


GBP

(Audited)

Unlisted equity securities




Andaman Power and Utility Company Limited

4,337,955


3,925,119

Myanmar Allure Group Company Limited

1,729,956


1,565,318






6,067,911


5,490,437

 

The unlisted equity securities are measured at fair value and are classified as Level 3 fair value measurement. Fair value is estimated using Discounted Cash Flow ("DCF") method. There were no changes in valuation techniques during the periods.

 

The movement of available-for-sale financial assets during the period was attributable to the foreign exchange realignment.

 

 

 

 

 

 

 

ALL ASIA ASSET CAPITAL LIMITED

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 

8.    SHARE CAPITAL




Number of






ordinary shares






of GBP0.10 each


GBP

Authorised






At 30 June 2015 and 2016


1,000,000,000


N/A

Issued






As at 31 December 2014, 1 January






2015


209,861,072


5,794,969








Issue of shares under subscription of






Share (Note 1)


2,000,000


330,000


Issue of shares under subscription of






Share (Note 2)


965,000


159,225








At 31 December 2015 and 30 June 2016


212,826,072


6,284,194

Notes:

 

1.        On 7 May 2015, 2,000,000 ordinary shares of 16.5 pence each in the Company were issued at subscription price of 16.5 pence per share by subscription of share. The net proceeds of GBP330,000 was intended to fund further investment opportunities of the Group and general working capital of the Group.

 

2.        On 27 May 2015, 965,000 ordinary shares of 16.5 pence each in the Company were issued at subscription price of 16.5 pence share by subscription of share. The net proceeds of GBP159,225 was intended to fund further investment opportunities of the Group and general working capital of the Group.

 

All the shares issued were ranked pari passu in all respects with the existing ordinary shares of the Company.

 


This information is provided by RNS
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