OPERATIONS
& FINANCIAL REVIEW
including trailers, motor vehicles,
forklift and warehouse equipment
for the cement mixing plant located
in Wuzhou City, China. As a result,
total non-current asset declined from
S$141.4 million as at end FY2014 to
S$135.7 million as at end FY2015.
Cash and cash equivalents as at end
FY2015 was S$18.4 million, up from
S$5.3 million at end FY2014, boosted
by the proceeds from the Rights
Issue. Together with an increase in
trade and other receivables, total
current assets increased from S$16.3
million as at end FY2014 to S$30.8
million as at end FY2015.
Total liabilities remained largely
unchanged, amounting to S$84.3
million as at end FY2015, compared
with S$85.3 million as at end
FY2014. Non-current liabilities
decreased from S$70.3 million as
at end FY2014 to S$66.9 million
as at end FY2015 as a result of
repayment of loans in relation to
the financing of the construction of
the warehouse in Yangshan, China,
and the acquisition of warehouses
located at No. 6 Pioneer Walk and
No. 39 Benoi Road. The decrease
was offset by the increase in current
liabilities from S$15.0 million as at
end FY2014 to S$17.5 million as at
end FY2015. The increase in current
liabilities during the year was due
to the professional fees payable in
relation to the Rights Issue, higher
borrowings to finance ongoing
business expansion projects, and
higher tax provision for FY2015.
CASH FLOW
The Group generated S$6.3 million
from operating activities in FY2015,
compared with S$1.4 million used in
operating activities in FY2014. This
was mainly due to the lower loss
before tax and increase in trade and
other receivables.
With fewer acquisitions and
investments made during the year,
net cash flows used in investing
activities was significantly lower at
S$0.5 million in FY2015, compared
with S$20.6 million in the previous
financial year.
Net cash generated from financing
activities was S$7.2 million in
FY2015, compared with S$16.3
million in FY2014. This was mainly
due to lower bank borrowings of
S$3.5 million and the S$12.6 million
net proceeds from the Rights Issue,
which was partially offset by higher
repayment of loans and borrowings
and obligations under finance leases
in FY2015.
16
GKE CORPORATION LIMITED
ANNUAL REPORT 2015
