Condensed Interim Financial Statements For The First Half Ended 30 June 2024

Financials Archive

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Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income

Condensed Interim Statement of Financial Position

Review of performance of the Group

Revenue

In the first half of FY2024 (“1H2024”), the Group generated revenue of $35.91 million, 11.9% higher than the corresponding period in the first half of FY2023 (“1H2023”). While overall revenues generated by the three attractions in China were about the same level as 1H2023, revenues generated at Singapore Flyer were 33% higher than corresponding period.

Overall visitation to all our attractions totalled 1.47 million visitors for the half year, 13% higher than the corresponding period of 1.30 million visitors in 1H2023.

Finance income increased due to higher interest income from fixed deposits.

Operational Results

Total Expenses (excluding finance cost) for 1H2024 was $23.41 million, 1.4% lower than 1H2023. Exchange gain of $0.38 million was recorded in the current period, compared to an exchange loss of $1.49 million recorded in the corresponding period, as Renminbi was stronger against the Singapore Dollar in the current period compared to last year-end exchange rate. Excluding the exchange gain/loss in both periods, total expenses for 1H2024 have been $23.79 million, 6.9% higher than the corresponding period of $22.26 million in 1H2023.

Property and other taxes increased 45.1% over 1H2023, mainly due to the upward revision of annual value of the Giant Observation Wheel by the Singapore tax authority as well as new property tax accounts for retail units being added at Singapore Flyer. Staff cost was higher, mainly due to annual increment and increased headcounts. Utilities expenses were lower, mainly due to lower expense at Singapore Flyer as a lower unit rate for electricity was secured during the contract renewal in October 2023. Other expenses increased, mainly due to higher packaging expenses, insurance expense, science education expenses and contract security charges, as well as higher audit fee accrued this year based on the agreed increase in statutory audit fee.

Profit before tax was $14.81 million for 1H2024, as all attractions were profitable for the period.

Balance Sheet items

Trade and other receivables increased 30.4% from $4.27 million at 31 December 2023 to $5.57 million at 30 June 2024, mainly due to increase in fixed deposits interest receivable recognised in the current period.

Other current assets increased 36.9% from $1.17 million at 31 December 2023 to $1.61 million at 30 June 2024, mainly due to increase at Singapore Flyer arising from increase in prepayment of insurance premiums for the yearly renewal in May 2024, downpayment upon confirmation of enhancement project and advance payment for purchase of replacement materials; as well as increase at Lixing Cable Car arising from the advance payment for purchase of imported spare parts and increase in prepayments from yearly renewal of insurance premium and annual maintenance of ticketing system.

Non-current trade and other payables increased 29.8% from $205,000 at 31 December 2023 to $266,000 at 30 June 2024, due to the increase in security deposits from a tenant upon extension of lease.

Deferred income decreased 18.1% from $116,000 at 31 December 2023 to $95,000 at 30 June 2024, due to the periodic recognition of deferred income to profit & loss in the current period.

Current trade and other payables decreased 13.8% from $10.6 million at 31 December 2023 to $9.14 million at 30 June 2024, mainly due to decrease in deposits received for bookings of Singapore Flyer’s event hall, decrease in deferred revenue for unused tickets at Singapore Flyer, performance bonus and certain expenses accrued in last year being paid in the current period; offset by increase in trade payables arising from annual insurance premiums payable upon renewal.

Current tax liabilities increased 98.1% from $0.94 million at 31 December 2023 to $1.86 million at 30 June 2024, mainly due to the provisions of income taxes for 2Q2024 by the China subsidiaries; offset by instalment payment of YA2024 income taxes at HQ.

Cash Flow Statement

The Group reported net cash of $13.56 million generated from operating activities for 1H2024. Final dividend of 1.5 cent per share and special dividend of $0.5 cent per share in respect of FY2023 was paid out to the Company’s shareholders in the current period. Instalment repayment of borrowings and interest in 1H2024 totalled $0.53 million for the temporary bridging loan taken up by Singapore Flyer in July 2021.

As at 30 June 2024, the Group’s cash and cash equivalent balance amounted to $164.86 million.

Commentary

The National Bureau of Statistics of China reported that China’s national economy was generally stable with steady progress as gross domestic product (“GDP”) grew 5% year-on-year in the first half of 2024. On the tourism sector, China saw about 295 million domestic tourist trips during the five days May Day holiday, up 7.6% year-on-year and 28.2% higher than the same period in 2019, according to data from the Ministry of Culture and Tourism; indicating further recovery in the domestic tourism sector.

Singapore’s economy grew 2.9% year-on-year in the second quarter of 2024, according to advance estimates released by the Ministry of Trade and Industry (“MTI”). For the first four months of 2024, Singapore welcomed 5.7 million tourists, about 90% of the corresponding period in 2019 pre-Covid19 numbers. The Singapore Tourism Board (“STB”) has projected international visitor arrivals of between 15 million to 16.5 million for 2024 and expected tourism receipts to reach between $27.5 billion to $29 billion. It was reported that the government will inject $300 million into the country’s Tourism Development Fund, for developing and marketing new tourism products and experiences, rejuvenating existing tourism offerings, upskilling tourism workforce and supporting local tourism companies to become more productive, innovative, and sustainable.