Kian Ann Group (KAG)
In August 2021, the Group transferred 48.81% of KAG to Mr. Zou and associates, KAG’s partner in Modesty Investment Holding (“MIH”) and Kunshan Kensetsu Buhin (“KKB”) and also transferred 2.38% to
Mr. Loy Soo Chew, the CEO of KAG. Simultaneously with the sale, KAG increased its shareholding in MIH from 50.01% and in KKB from 27.6%, both to 100%. Hence, KAG began to consolidate the financial
results of both MIH and KKB as 100% subsidiaries from August 2022. The Group equity accounts KAG from this date as a joint venture.
In respect of the year under review:
> KAG’s attributable profit for the period under review was S$55 million
> Ignoring the gains on remeasurement, fair value loss on derivatives, amortisation of intangibles and deal-related tax and deferred tax adjustments, the net profit attributable to shareholders for KAG was S$22.1 million, an improvement of 180% over last year.
> The Group’s share of the normalised attributable profit has increased from S$7.9 million last year to S$11.4 million this year.
Business conditions across Southeast Asia were better than the prior year. MIH and KKB also saw higher demand for their parts and consequently contributed strongly to the financial results of KAG.
Working capital was a major focus of the team and the year-end net cash balance was S$42.3 million.