Courage Marine Group Limited

Financial Information

Financials

Unaudited Interim Results For The Six Months Ended 30 June 2017

Financials Archive

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Unaudited Interim Results For The Six Months Ended 30 June 2017

Income Statement

Income Statement

Balance Sheet

Balance Sheet

Financial Review

Liquidity, financial resources and capital structure

During the six months ended 30 June 2017, the Group financed its operation mainly by credit facilities provided by banks and shareholders' funds. At 30 June 2017, the Group had current assets of US$10,482,000 (31 December 2016: US$10,735,000) and liquid assets comprising bank balances and cash, time deposit and investment in listed equity securities totalling US$7,230,000 (31 December 2016: US$5,689,000). The Group's current ratio, calculated based on current assets over current liabilities of US$10,052,000 (31 December 2016: US$9,749,000), was at a ratio of about 1.04 at the period end (31 December 2016: 1.10).

At 30 June 2017, the increase of equity attributable to owners of the Company by 73% to US$26,476,000 (31 December 2016: US$15,303,000) was mainly due to the completion of the placing of 25,400,000 Company's new shares in January 2017 that raised net proceeds of US$12,207,000.

At the period end, the Group's borrowings represented loans from banks for financing the acquisition of vessels. The bank borrowings were denominated in United States dollars, 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$382,000 for the period represented mainly interests for the above bank borrowings, finance costs decreased by 9% compared to prior period (30 June 2016: US$421,000) as there were less bank borrowings during the review period.

The Group's gearing ratio, calculated on the basis of total bank borrowings of US$18,453,000 (31 December 2016: US$19,799,000) divided by total equity of US$26,476,000 (31 December 2016: US$15,303,000), was at a ratio of about 70% at the period end (31 December 2016: 129%). The Group's gearing ratio has improved after the completion of the Company's shares placement in January 2017 as mentioned below.

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. 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. Up to 30 June 2017, 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 a 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.

PROSPECTS

The Board is of the view that the operating environment of the Group's marine transportation business will continue to be challenging in the near term and the management has already adopted various measures aiming to improve its financial performance. As for the Group's remaining businesses, namely, property holding and investment, investment holding and merchandise trading, the management will continue to step up its effort to improve their results and to seize attractive business/investment opportunities that can create value to shareholders.

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