Multistack International : Preliminary Final Report

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Multistack International Limited	Appendix 4E
Preliminary final report	31 December 2021

+Rules 4.3A

Appendix 4E

Preliminary final report

Year ending on 31 December 2021

Provided to the ASX under listing rule 4.3A

Name of entity	ABN
Multistack International Limited	54 007 254 346

1. Reporting period

Report for the financial year ended 31 December 2021.

Previous corresponding period is the financial year ended 31 December 2020.

2. Results for announcement to the market

				$A
Revenues from ordinary activities	up	7.16 %	to	643,851
Loss from ordinary activities after tax attributable to	up	207.61%	to	(1,132,977)
members
Net loss for the period attributable to members	up	207.61%	to	(1,132,977)
Record date for determining entitlements to the dividend		Not applicable

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For personal use only

Multistack International Limited	Appendix 4E
Preliminary final report	31 December 2021

Results for announcement to the market (cont'd)

Dividends

No dividends were paid or declared for the year ended 31 December 2021.

Trends in Performance

Total revenue in 2021 increased by 7.16% to $643,851. Revenue from Other Income has decreased to loss of $146,326, due to foreign currency loss and cessation of government grants. The net loss for the period attributable to members was $1,132,977 (2020: $368,316).

Operations

The trading entity, Multistack Australia Pty Ltd, has incurred losses before income tax for the year ending 31 December 2021 of $473,952 (2020: $457,031).

The outbreak of COVID-19 and its variations have been threatening the lives of human beings around the world as well as affecting the global economies in two consecutive years. Due to the various restrictions and health concerns in the country, sales activities have not improved much and the cost of material and transportation was geared up to an unbelievable level. With all these impacts it was hard for our agents to sell many of our air-conditioning equipment. In fact we have to thank them for their effort to try, at least to keep the ball rolling with a marginal increase in our revenue. However we were more optimistic about the launch of the ORC power generation business in the market, after our acquisition of the Verdicorp assets in June 2020, which would allow us to develop the ORC equipment in line with the carbon reduction program of the country.

There was a learning curve for the Group to pick up the ORC technology and turn it into marketing and selling these ORC products in Australia as well as to the rest of the world. As reported in the last annual report the Company has been in negotiations with various interested parties for local and overseas distribution rights in their regions. Given the current pandemic environment, these negotiations may still take longer than expected, but the Directors trust that this will be no doubt the right direction because global warming is always a big issue threatening human generations around the world. The United Nations have made further warnings and urged all country leaders to take actions to reduce carbon emission without delay. This was a positive signal for promoting our ORC units and we were glad that we received increasing amount of enquiries from customers in different areas who showed their interest in our equipment.

On 19 November 2021, Multistack International Limited (ASX:MSI) announced that the Group has completed the issue of new shares to a Hong Kong based company for $1.20 million which has given the Group a viable cash flow for the development projects of the ORC product.

The MSI Board has good faith in our ORC technology and believes that it has great future growth potential. We are currently in negotiations with talented people about the development of new ORC concepts. We shall expect to see results in the coming year for practical progress in this direction. The board will expect that these new development projects will bring more value to the Company than its current carrying value of the book records.

Tax consolidation

For the purposes of income taxation, Multistack International Ltd and its 100% owned subsidiaries have not formed a tax consolidated group and entry into a tax consolidated group is unlikely. This did not impact the consolidated results for the year. From 1 January 2004, the carried forward tax losses of each entity in the Group could only be used to offset taxable income of that individual entity.

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Multistack International Limited	Appendix 4E
Preliminary final report	31 December 2021

For personal use only

3. Consolidated Statement of Profit or Loss and other comprehensive income

FOR THE YEAR ENDED 31 DECEMBER 2021
	For the year
	31 December 2021	31 December 2020
	$	$
Revenue
Sale of goods	643,851	600,819
Total Revenue	643,851	600,819
Cost of sales	(529,844)	(474,929)
Gross Profit	114,007	125,890
Other Income
Subsidies and grants	20,000	249,501
Reversal of impairment	-	167,975
Foreign currency (loss) / gain	(193,552)	353,068
Interest income	25,945	58,245
Sundry income	1,281	33,944
Total Other (Loss) / Income	(146,326)	862,733
Expenses
Employee benefits expense	(416,359)	(432,781)
Administrative and occupancy expense	(537,743)	(665,480)
Professional fees	(113,656)	(141,546)
Other expenses	(32,900)	(117,132)
Total Expenses	(1,100,658)	(1,356,939)
Loss before income tax	(1,132,977)	(368,316)
Loss from continuing operations	(1,132,977)	(368,316)
Other comprehensive income or loss for the year
Items that may be reclassified subsequently to profit and loss	-	-
Total comprehensive loss for the year	(1,132,977)	(368,316)
Earnings per share for loss from continuing operations
attributable to members of the parent:
Basic earnings per share	$(0.0083)	$(0.0033)
Diluted earnings per share	$(0.0083)	$(0.0033)

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Multistack International Limited	Appendix 4E
Preliminary final report	31 December 2021

4. Consolidated Statement of Financial Position

For personal use only

	31 December 2021	31 December 2020
	$	$
Current assets
Cash and cash equivalents	1,334,547	346,758
Investments	687,967	666,528
Receivables	98,739	233,842
Inventories	118,470	299,328
Prepayment	-	5,664
Deposit - Bond for property	17,612	17,612
Total current assets	2,257,335	1,569,732
Non-current assets
Receivables	-	51,935
Intangible assets - ORC Technology	3,113,182	3,113,182
Lease assets - right of use	214,995	35,770
Total non-current assets	3,328,177	3,200,887
Total assets	5,585,512	4,770,619
Current liabilities
Payables	1,488,802	1,501,145
Lease liability	82,871	45,540
Loan from ACR Equipment HK Co Ltd	696,000	286,000
Loan from Superlink Company Ltd	2,480,706	2,337,055
Provisions	147,742	117,830
Total current liabilities	4,896,121	4,287,570
Non-current liabilities
Lease liability	135,656	-
Provisions	7,660	3,997
Total non-current liabilities	143,316	3,997
Total liabilities	5,039,437	4,291,567
Net assets	546,075	479,052
Equity
Contributed equity	156,838,695	155,638,695
Accumulated losses	(156,292,620)	(155,159,643)
Total equity	546,075	479,052

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For personal use only

Multistack International Limited	Appendix 4E
Preliminary final report	31 December 2021

5. Consolidated Statement of Changes in Equity

		Attributable to equity holders of the
			parent
		Accumulated
	Contributed	Losses
	Equity		Total Equity
CONSOLIDATED	$	$	$
At 1 January 2020	155,638,695	(154,791,327)	847,368
Loss for the year	-	(368,316)	(368,316)
Total comprehensive income / (loss) for the
year	-	(368,316)	(368,316)
Transactions with owners as their capacity of
owners	-	-	-
As at 31 December 2020	155,638,695	(155,159,643)	479,052

		Attributable to equity holders of the
			parent
	Contributed	Accumulated
	Equity	Losses	Total Equity
CONSOLIDATED	$	$	$
At 1 January 2021	155,638,695	(155,159,643)	479,052
Loss for the year	-	(1,132,977)	(1,132,977)
Total comprehensive income / (loss) for the
year	-	(1,132,977)	(1,132,977)
Transactions with owners as their capacity of
owners
Issue of share capital	1,200,000	-	1,200,000
As at 31 December 2021	156,838,695	(156,292,620)	546,075

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