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Condensed interim financial statements For the six months ended 30 September 2023

Condensed interim consolidated statement of profit or loss and other comprehensive income

Condensed interim statements of financial position


Review of Income Statement of the Group

First Half FY2024 ("1H FY2024") vs First Half FY2023 ("1H FY2023")


Group revenue decreased by 6.6% to RMB479.5 million in 1H FY2024 as compared to RMB513.2 million in 1H FY2023.

The decrease is mainly due to lower revenue from sales of tower cranes and components of RMB40.0 million from RMB379.1 million in 1H FY2023 to RMB339.1 million in 1H FY2024. The decrease was offset by higher rental and service income by RMB6.2 million to RMB140.4 million in 1H FY2024.

Revenue from Asia (outside of the PRC) has dropped significantly by RMB63.5 million or equal to 26.6% from RMB238.8 in 1H FY2023 to RMB175.3 million in 1H FY2024 as delivery of tower cranes has slowed in Singapore. Revenue in the PRC also reduced by RMB19.7 million to RMB190.4 million in 1H FY2024. The decrease was offset by higher revenue in USA & Europe and the Middle East & others of RMB38.4 million and RMB10.9 million respectively.

Overall, sales in the PRC and Asia (outside the PRC) contributed to 39.7% (1H FY2023 : 40.9%) and 36.6% (1H FY2022 : 46.5%) respectively of the Group revenue in 1H FY2024.

Gross profit and gross profit margin

Despite the 6.6% decrease in revenue, gross profit decreased marginally by 0.6% to RMB147.1 million in 1H FY2024 from RMB148.0 million in 1H FY2023 due to higher average gross profit margin in 1H FY2024.

Average gross profit margin increased to 30.7% in 1H FY2024 from 28.8% in 1H FY2023.

The higher gross profit margin in 1H FY2024 is due to higher sales proportion of luffing tower cranes as well as higher proportion of rental income in 1H FY2024 which generate higher sales margin.

Other income

Other income decreased by RMB0.7 million to RMB5.9 million in 1H FY2024 as compared to RMB6.5 million in 1H FY2023. The decrease is mainly due to non-recurrence of certain government subsidies and rebates of RMB3.0 million, debts no longer required to pay of RMB0.8 million and insurance compensation of RMB0.3 million. Government subsidies and rebates received in 1H FY2023 pertains to grants from various authorities, as part of the financial assistance to help businesses tide through the pandemic. The decrease was partly offset by higher interest income of RMB4.0 million.

Operating expenses

Total operating expenses decreased 8.2% to RMB95.5 million in 1H FY2024 as compared to RMB104.0 million in 1H FY2023.

Distribution costs decreased 27.5% to RMB41.3 million in 1H FY2024 as compared to RMB57.0 million in 1H FY2023. The reduction primarily from reduced freight and transportation costs, as the supply has returned to its normalcy after the abrupt surge during the pandemic.

Administrative expenses increased 2.4% to RMB42.7 million in 1H FY2024 as compared to RMB41.7 million in 1H FY2023 mainly due to higher legal fee and transportation expenses, partly offset by lower employee cost.

Other operating expenses reported at RMB3.3 million in 1H FY2024 as compared to a credit balance of RMB3.3 million in 1H FY2023. The difference was mainly due to an exchange gain of RMB5.1 million in 1H FY2024 as compared to RMB13.9 million in 1H FY2023. The exchange gain was offset against impairment provision for expected credit loss ("ECL") of RMB7.5 million in 1H FY2024 and RMB7.0 million in 1H FY2023 respectively. The impairment provision for ECL due mainly to the slower collection from customer in the PRC.

The exchange gain for 1H FY2024 arose mainly from the strengthening of Singapore Dollars ("SGD") and Hong Kong Dollars ("HKD") against Renminbi ("RMB") due to net RMB liabilities in the Singapore subsidiary's book and Hong Kong subsidiary's book; and the strengthening of USD against RMB and SGD due to net USD assets in the PRC's and Singapore's subsidiary's book.

Finance costs increased 3.2% to RMB8.2 million in 1H FY2024 due mainly to higher interest rate in Yongmao Hongkong.


Income tax expense increased to RMB9.8 million in 1H FY2024 as compared to RMB8.7 million in 1H FY2023 in line with higher profits for the financial period under review.

Other comprehensive income/(expenses)

The Group reported other comprehensive income of RMB5.0 million in 1H FY2024 as compared to RMB25.8 million in 1H FY2023. Other comprehensive income pertains to gain on exchange translation of RMB17.3 million arose from translation of the net assets of our Hong Kong and Singapore subsidiaries; partly offset by RMB12.4 million of fair value loss in financial assets, FVOCI.

HKD and SGD appreciated 7.4% and 4.0% respectively against RMB as at 30 September 2023 as compared to last financial year end.

Profit before taxation and Net profit attributable to equity holders of the Company

As a result of the above, the Group recorded a profit before taxation of RMB57.4 million in 1H FY2024 as compared to RMB50.5 million in 1H FY2023.

Net profit attributable to equity holders of the Company increased to RMB40.1 million in 1H FY2024 from RMB38.3 million in 1H FY2023.

Review of Financial Position of the Group

Non-current Assets

Non-current assets increased by RMB32.3 million to RMB750.0 million as at 30 September 2023 mainly due to higher property, plant and equipment, partly offset by lower financial assets, at FVOCI.

The increase of RMB45.0 million in the Group's net carrying amount of property, plant and equipment was mainly attributable to the exchange translation differences from Yongmao Hong Kong as HKD appreciated significantly by 7.4% against RMB as compared to last financial year end and the increase in rental fleet. The increase is partly offset by net depreciation charges and disposals.

Deferred tax assets arose mainly from provisions and elimination of unrealised profits in intragroup sales and the various provisions made.

Financial assets, at FVOCI recorded fair value loss of RMB12.4 million as at 30 September 2023.

Current Assets

Current assets decreased by RMB53.2 million to RMB1,263.4 million as at 30 September 2023 mainly due to by lower cash and cash equivalents (see Note on Review on Cash Flow Statement below) and lower inventory and amount owing by related parties, partly offset by higher trade and other receivables.

Amount owing by related parties decreased by RMB4.6 million to RMB42.2 million as at 30 September 2023 due to higher repayment over sales to related parties.

Trade and other receivables increased by RMB38.0 million to RMB641.7 million as at 30 September 2023. Higher trade receivables is due to slower repayment in the PRC.

Inventories decreased by RMB13.2 million to RMB403.1 million as at 30 September 2023 as compared to RMB416.3 million as at 31 March 2023. This lower inventory mainly due to the sales delivery in the 1H FY2024 and transfer of inventory to property, plant and equipment for additional rental fleet of tower cranes.

Non-current Liabilities

Non-current liabilities increased to RMB73.1 million as at 30 September 2023 from RMB70.2 million as at 31 March 2023. The increase was due to higher deferred tax liabilities by RMB1.9 million to RMB48.8 million and higher borrowings of RMB1.4 million to RMB4.7 million as at 30 September 2023.

Deferred tax provision was mainly made for withholding tax levied on dividends of undistributed earnings of PRC subsidiaries, accelerated tax depreciation on inter-company sales of tower cranes used as rental fleet.

Current Liabilities

Current liabilities decreased by RMB66.9 million to RMB908.9 million as at 30 September 2023 as compared to RMB975.9 million as at 31 March 2023 mainly due to lower borrowings, lower trade and other payable and lower amount owing to related parties, partly offset by higher tax payable.

Borrowings decreased by RMB56.8 million mainly due to net loan repayment.

Trade and other payables decreased by RMB13.2 million mainly due to faster payment.

Total Equity

As at 30 September 2023, the Group's total equity amounted to RMB1,031.3 million. The increase was mainly due to total comprehensive income of RMB52.6 million for 1H FY2024, partly offset by dividends paid in 1H FY2024.

Review of Cash Flow Statement

1H FY2024 vs 1H FY2023

The Group reported a net decrease in cash and cash equivalents amounting to RMB57.1 million in 1H FY2024 mainly due to:

  1. Net cash generated from operating activities of RMB1.5 million resulted from operating profit before working capital changes, offset by increase in operating receivables and inventories, decrease in operating payables, and interest and taxes paid.
  2. Net cash used in investing activities of RMB14.5 million from acquisition of property, plant and equipment, partly offset by interested received; and
  3. Net cash used in financing activities of RMB44.1 million mainly from net repayment of bank borrowings, net repayment of principal portion of lease liabilities, interest paid and dividend paid, partly offset by lower restricted bank balances.


The International Monetary Fund (IMF) has revised down its economic growth projections for China in 2023 and 2024. The IMF's latest report, released on early October 2023 estimates China's 2023 economic growth at 5.0 percent, down from the previous forecast of 5.2 percent. Additionally, the 2024 estimate has been lowered to 4.2 percent from the previous projection of 4.5 percent. The IMF states that China's economic momentum is waning, primarily due to the ongoing property crisis and reduced household confidence, despite a surge in economic activity following the COVID-19 reopening in early 2023.

Hong Kong property's market is bracing for a downturn amid rising interest rates and a weak economic outlook. Hong Kong's index of existing home prices fell 7.8% year-on-year in September 2023, according to the government's rating and valuation department. Conversely, the Hong Kong government is making significant efforts to achieve its public housing supply goals for the coming decade, with a primary focus on accelerating the development of the Northern Metropolis.

In Singapore, construction output is expected to continue to grow, driven mainly by investments in infrastructure, transport, housing and industrial projects. The industry still faces challenges such as labour shortages and high raw material prices.

The global business landscape remains marked by challenges and uncertainties, primarily driven by elevated inflation rates, increasing interest rates, mounting geopolitical tensions, and volatility in foreign exchange rates. Nevertheless, the Group will continue to pursue business opportunities in both the public and private sector. The Group expects to face challenges for the rest of the financial year and will continue to remain focused on operational efficiency, cost control, and exercise prudence and vigilance in inventory and credit management.

Further to the announcement on 10 October 2023 in relation to the tower crane accident in Hong Kong. Yongmao Machinery (H.K.) Company Limited ("YMHK") and YMHK's 100% wholly-owned subsidiary, Eastime Engineering Limited ("EEL"), pending the appearances to be made by YMHK and EEL before the magistrate on 30 January 2024 and on the basis of the information available to us at the moment, there have been no material developments in relation to the tower cranes accident in Hong Kong. The Company will provide further updates as and when there are any material developments.

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