Courage Marine Group Limited

Financial Information


Final Results Announcement for the Year Ended 31 December 2017

Financials Archive

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Final Results Announcement For The Year Ended 31 December 2017

Income Statement

Income Statement

Balance Sheet

Balance Sheet

Financial Review

Liquidity, financial resources and capital structure

During FY2017, the Group financed its operation mainly by credit facilities provided by banks and shareholders' funds. At 31 December 2017, the Group had current assets of US$14,130,000 (2016: US$10,735,000) and liquid assets comprising bank balances and cash, time deposit and investment in listed equity securities totalling US$11,311,000 (2016: US$5,689,000). The Group's current ratio, calculated based on current assets over current liabilities of US$5,964,000 (2016: US$9,749,000), was at a strong ratio of about 2.37 at year end (2016: 1.10). At 31 December 2017, equity attributable to owners of the Company amounted to US$37,757,000 (2016: US$15,303,000), increased by US$22,454,000 or 147% compared to the prior year end and was mainly due to the completion of placing of 25,400,000 Company's new shares in January 2017 that raised net proceeds of US$12,207,000, and the profit earned by the Group during FY2017.

At year end, the Group's borrowings represented loans from banks for financing the acquisition of vessels. The bank borrowings were denominated in United States dollar, bore interest at floating rates, and secured by the relevant vessels. The following is an analysis of the Group's bank borrowings and maturity profile:

Financial Review

The Group's finance costs of US$774,000 for the year represented mainly interests for the above bank borrowings, finance costs decreased by 5% compared to the prior year (2016: US$817,000) as there were less bank borrowings during FY2017.

The Group's gearing ratio, calculated on the basis of total bank borrowings of US$17,108,000 (2016: US$19,799,000) divided by total equity of US$37,757,000 (2016: US$15,303,000), was at a ratio of about 45% at year end (2016: 129%). The Group's gearing ratio has greatly improved mainly due to the completion of the Company's shares placement in January 2017 as well as the profitable results recorded by the Group in FY2017.

With the amount of liquid assets on hand as well as credit facilities granted by banks, the management is of the view that the Group has sufficient financial resources to meet its ongoing operational requirement.

Use of proceeds from shares placement

In January 2017, the Company completed the placing of 25,400,000 new shares to independent investors at the price of HK$3.82 per share (before the completion of the Share Subdivision as mentioned below). The net proceeds from the placing amounted to US$12,207,000 and has been used as intended as general working capital of the Group and for funding of attractive business/investment opportunities. A majority of the proceeds has been applied for the operation and development of the Group's investment holding and merchandise trading businesses.

Share Subdivision

On 6 June 2017, the Board proposed to implement the Share Subdivision by subdividing every one existing share of the Company with par value of US$0.18 each in the share capital of the Company into three subdivided shares of the Company with par value of US$0.06 each. The Share Subdivision was approved by the shareholders of the Company on 28 June 2017 and became effective on 6 July 2017.


FY2017 was a successful year for the Group, looking forward, the management will keep up their efforts in managing the businesses of the Group and will continue to seize investment/business opportunities with attractive returns aiming to create value to our shareholders. Particular emphasis will be placed by the Group on investment/business opportunities linking with the "One Belt, One Road" and "Greater Bay Area" initiatives strongly supported by the Chinese Government, which are beneficial to Hong Kong's long-term economic prospects.

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