Oriental Food Industries : Quarterly REport

ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Registration No. 199601017418 (389769-M)) (Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the quarter ended 31 March 2024

(The figures have not been audited)

	INDIVIDUAL QUARTER	CUMULATIVE QUARTER
	3 MONTHS ENDED	12 MONTHS ENDED
	CURRENT YEAR	PRECEDING YEAR	CURRENT	PRECEDING YEAR
	QUARTER	CORRESPONDING	PERIOD	CORRESPONDING
	ENDED	QUARTER ENDED	TO-DATE	PERIOD TO-DATE
	31/03/2024	31/03/2023	31/03/2024	31/03/2023
	RM'000	RM'000	RM'000	RM'000
Revenue	109,663	83,860	431,724	360,013
Cost of sales	(86,394)	(71,614)	(342,573)	(305,566)
Gross Profit	23,269	12,246	89,151	54,447
Other operating income / (expenses)	1,513	(945)	4,742	3,074
Selling & distribution costs	(4,825)	(3,217)	(15,102)	(12,908)
Administrative expenses	(1,846)	(4,245)	(21,549)	(20,347)
Finance costs	(31)	(52)	(146)	(186)
Net impairment gains / (losses) on financial assets	45	530	(1,477)	583
Profit before tax	18,125	4,317	55,619	24,663
Tax expense	(3,871)	(1,309)	(12,325)	(5,537)
Profit net of tax, for the financial year	14,254	3,008	43,294	19,126
Other comprensive income
Fair value changes of equity instruments	255	(95)	588	130
Other comprehensive income for the financial year	255	(95)	588	130
Total comprehensive income for the financial year	14,509	2,913	43,882	19,256
Profit net of tax, attributable to :
Owners of the parent	14,254	3,008	43,294	19,126
Non-controlling interest	-	-	-	-
	14,254	3,008	43,294	19,126
Earnings per share (Note B 15 )
- Basic (Sen)	5.94	1.25	18.04	7.97
- Diluted	N/A	N/A	N/A	N/A

The Condensed Consolidated Statements of Comprehensive Income should be read in conjunction with the Annual Financial Report for the financial year ended 31st March 2023 and the accompanying explanatory notes attached to the interim financial statements.

(Registration No. 199601017418 (389769-M))

ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	31 March 2024	31 March 2023
	Unaudited	Audited
	RM'000	RM'000
ASSETS
Non-current assets
Property, plant and equipment	97,496	104,507
Right-of-use assets	16,116	17,141
Investment properties	3,875	3,969
Land held for property development	962	962
Investment securities	3,190	2,602
Deferred tax assets	1,803	1,972
	123,442	131,153
Current assets
Inventories	53,712	50,481
Right of return asset	238	931
Trade receivables	87,874	67,107
Other receivables, deposits and prepayments	5,507	5,112
Current tax assets	8	468
Fixed deposits with a licensed bank	4,000	-
Short-term investments	103	101
Cash and bank balances	53,970	32,773
	205,412	156,973
TOTAL ASSETS
328,854	288,126
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital	120,000	120,000
Fair Value Reserve of Financial Assets at FVOCI	2,818	2,230
Retained earnings	140,260	108,966
Total equity	263,078	231,196
Non-current liabilities
Lease liabilities	-	211
Loans and borrowings	1,174	2,397
Deferred tax liabilities	10,264	12,092
	11,438	14,700
Current liabilities
Trade payables	27,810	27,104
Refund liabilities	1,798	3,600
Contract liabilities	5,973	764
Other payables and accruals	14,467	7,901
Lease liabilities	54	585
Loans and borrowings	1,247	1,206
Current tax liabilities	2,989	1,070
	54,338	42,230
Total liabilities	65,776	56,930
TOTAL EQUITY AND LIABILITIES
328,854	288,126
	-	-
Net assets per share attributable to owners of
the Parent (RM) **	1.10	0.96

• Net assets per share is calculated based on total assets (including intangibles) minus total liabilities divided by the total number of ordinary shares in issue

as at 31 March 2024.

The Condensed Consolidated Statements of Financial Position should be read in conjunction with the Annual Financial Report for the financial year ended 31st March 2023 and the accompanying explanatory notes attached to the interim financial statements.

ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Registration No. 199601017418 (389769-M)) (Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the quarter ended 31 March 2024

(The figures have not been audited)

		Attributable to Owners of the Parent
	Share	Fair Value	Retained	Total
	Capital	Reserve of	Earnings	Equity
		Financial Assets
		at FVOCI
	RM'000	RM'000	RM'000	RM'000
12 months period ended 31 March 2024
Balance as at 1 April 2023	120,000	2,230	108,966	231,196
Total comprehensive income for the financial year	-	588	43,294	43,882
Interim dividend for the financial year ended 31 March 2023	-	-	(1,200)	(1,200)
Interim dividend for the financial year ended 31 March 2024	-	-	(2,400)	(2,400)
Interim dividend for the financial year ended 31 March 2024	-	-	(3,600)	(3,600)
Interim dividend for the financial year ended 31 March 2024	-	-	(4,800)	(4,800)
Balance as at 31 March 2024	120,000	2,818	140,260	263,078
	-		-
12 months period ended 31 March 2023
Balance as at 1 April 2022	120,000	2,100	98,720	220,820
Total comprehensive income for the financial year	-	130	19,126	19,256
Interim dividend for the financial year ended 31 March 2022	-	-	(2,880)	(2,880)
Interim dividend for the financial year ended 31 March 2023	-	-	(1,200)	(1,200)
Interim dividend for the financial year ended 31 March 2023	-	-	(2,400)	(2,400)
Interim dividend for the financial year ended 31 March 2023	-	-	(2,400)	(2,400)
Balance as at 31 March 2023	120,000	2,230	108,966	231,196

The Condensed Consolidated Statements of Changes in Equity should be read in conjunction with the

Annual Financial Report for the financial year ended 31st March 2023 and the accompanying explanatory notes attached to the interim financial statements.

ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Registration No. 199601017418 (389769-M)) (Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the quarter ended 31 March 2024

(The figures have not been audited)

	CURRENT YEAR		PRECEDING YEAR
	ENDED		ENDED
	31/03/2024	31/03/2023
	RM'000		RM'000
OPERATING ACTIVITIES
Profit before tax	55,619	24,663
Adjustments for non cash items	14,454		13,412
	70,073	38,075
Changes in working capital	(17,460)		(18,211)
Net cash generated from operating activities	52,613	19,864
Income taxes paid	(12,150)	(7,023)
Income taxes refunded	544	-
Net cash flows from operating activities	41,007	12,841
INVESTING ACTIVITIES
Additional investments on short-term investments	3	2
Purchase of property, plant and equipment	(5,832)	(7,220)
Advanced payments to suppliers of property, plant & equipment	(1,199)	(597)
Proceeds from disposal of:
- property, plant and equipment	100	184
Interest received	281	77
Net cash used in investing activities	(6,647)	(7,554)
FINANCING ACTIVITIES
Repayment of lease liabilities	(633)	(671)
Dividends paid on ordinary shares	(7,200)	(8,880)
Repayment of loans and borrowings	(1,182)	(2,047)
Interest paid	(146)	(186)
Net cash used in financing activities	(9,161)		(11,784)
Net Change in Cash & Cash Equivalents	25,199	(6,497)
Cash and Cash Equivalents at beginning of the financial year	32,874	39,371
Cash and Cash Equivalents at end of the financial year	58,073	32,874

Note : There is no non-cash movement in liabilities arising from financing activities for the financial year ended 31 March 2024.

The Condensed Consolidated Statements of Cash Flows should be read in conjunction with the Annual Financial Report for the financial year ended 31st March 2023 and the accompanying explanatory notes attached to the interim financial statements.

ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Registration No.199601017418 (389769-M))

(Incorporated in Malaysia)

EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024

1. INFORMATION REQUIRED BY MFRS 134

1. Basis of Preparation
   The condensed consolidated interim financial statements are unaudited and have been prepared in accordance with the requirements of MFRS 134, Interim Financial Reporting and Paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ("Bursa Malaysia"). These condensed consolidated interim financial statements also comply with IAS 34, Interim Financial Reporting issued by the International Accounting Standards Board ('IASB").
   The interim financial statements should be read in conjunction with the audited financial statements for the financial year ended 31 March 2023. These explanatory notes attached to the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the financial year ended 31 March 2023.
2. Changes in Accounting Policies
   The significant accounting policies and the methods adopted for the unaudited condensed financial statements are consistent with those adopted for the audited financial statements for the financial year ended 31 March 2023, except for the adoption of the following Malaysian Financial Reporting Standards (MFRS), Amendments to MFRS and IC Interpretation for the financial periods beginning on or after 1 April 2023.
3. • Amendments to MFRS 112 : International Tax Reform - Pillar Two Model Rules
   • MFRS 17 : Insurance Contracts
   • Amendments to MFRS 17 : Insurance Contracts
   • Amendments to MFRS 17 : Initial Application of MFRS 17 and MFRS 9 - Comparative Information
   • Amendments to MFRS 101 : Disclosure of Accounting Policies
   • Amendments to MFRS 108 : Definition of Accounting Estimates
   • Amendments to MFRS 112 : Deferred Tax related to Assets and Liabilities arising from a Single Transaction

At the date of authorisation of the interim financial statements, the following MFRSs, Amendments to MFRSs and IC Interpretation were issued but not yet effective and have not been applied by the Group:

1. • Amendments to MFRS 121 : Lack of Exchangeability
   • Amendments to MFRS 107 and MFRS 7 : Supplier Finance Arrangements
   • Amendments to MFRS 101 : Non-current Liabilities with Covenants
   • Amendments to MFRS 101 : Classification of Liabilities as Current or Non-current
   • Amendments to MFRS 16 Leases : Lease Liability in a Sale and Leaseback
   • Amendments to MFRS 10 and MFRS 128 : Sale or Contribution of Assets between an Investor and its Associate of Joint Venture
2. Seasonal or Cyclical Factors
   The business operations of the Group are not materially affected by any seasonal or cyclical factors.
3. Exceptional / Extraordinary Items
   There were no exceptional / extraordinary items for the financial period under review.

Page 1 of 11

ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Registration No.199601017418 (389769-M))

(Incorporated in Malaysia)

EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024

1. Changes in Estimates
   There were no changes to the estimates of amounts reported in prior financial years that may have a material effect in the current period.
2. Debts and Equity Securities
   There was no issuance, cancellation, repurchase, resale and repayment of debts and equity securities for the current financial quarter.
3. Dividend Paid
   An interim single tier dividend of 0.50 sen per share, amounting to RM1,200,000 for the financial year ended 31 March 2023 was approved during the 97th Board of Directors Meeting held on 23 May 2023 and was paid on 30 June 2023.
   An interim single tier dividend of 1.0 sen per share, amounting to RM2,400,000 for the financial year ended 31 March 2024 was approved during the 98th Board of Directors Meeting held on 23 August 2023 and was paid on 5 October 2023.
   An interim single tier dividend of 1.5 sen per share, amounting to RM3,600,000 for the financial year ended 31 March 2024 was approved during the 99th Board of Directors Meeting held on 23 November 2023 and was paid on 8 January 2024.
   An interim single tier dividend of 2.0 sen per share, amounting to RM4,800,000 for the financial year ended 31 March 2024 was approved during the 100th Board of Directors Meeting held on 28 February 2024 and was paid on 15 April 2024.
4. Segment Information
   Management has determined the operating segments based on the reports used to make strategic decisions.
   For management purposes, the Group is organised into business units based on their products and services, and has three reportable operating segments as follows:
5. 1. Manufacturing and marketing of snack food and confectioneries
   2. Property development
   3. Investment holding

As the activities of the Group are carried out in Malaysia, segmental reporting by geographical location is not presented.

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ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Registration No.199601017418 (389769-M))

(Incorporated in Malaysia)

EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024

8. Segment information (continued)
		Manufacturing					Per
		and marketing					condensed
		of snack food			Adjustments		consolidated
		and	Property	Investment	and		financial
		confectioneries	development	holding	eliminations	Notes	statements
31 March 2024	RM'000	RM'000	RM'000	RM'000		RM'000
Revenue:
External customers	431,724	-	-	-		431,724
Inter-segment	-	-	12,750	(12,750)	A	-
Total revenue	431,724	-	12,750	(12,750)		431,724
Results:
Interest income	281	-	-	-		281
Depreciation of:
- Property, plant and equipment	12,883	66	-	-		12,949
- Right-of-use assets	924	-	-	-		924
- Investment properties	9	85	-	-		94
Other non-cash expenses	633	-	-	-	B	633
Segment profit/(loss)	56,041	307	(729)	-	C	55,619
Assets:
Additions to non-current assets	5,972	-	-	-	D	5,972
Segment assets	321,507	7,171	176	-	E	328,854
Segment liabilities		60,396	145	5,235	-	F	65,776

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ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Registration No.199601017418 (389769-M))

(Incorporated in Malaysia)

EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024

8. Segment information (continued)
		Manufacturing					Per
		and marketing					condensed
		of snack food			Adjustments		consolidated
		and	Property	Investment	and		financial
		confectioneries	development	holding	eliminations	Notes	statements
31 March 2023	RM'000	RM'000	RM'000	RM'000		RM'000
Revenue:
External customers	360,013	-	-	-		360,013
Inter-segment	-	-	9,519	(9,519)	A	-
Total revenue	360,013	-	9,519	(9,519)		360,013
Results:
Interest income	77	-	-	-		77
Depreciation of:
- Property, plant and equipment	12,665	66	-	-		12,731
- Right-of-use assets	986	-	-	-		986
- Investment properties	9	84	-	-		93
Other non-cash income	502	-	-	-	B	502
Segment profit/(loss)	25,014	312	(663)	-	C	24,663
Assets:
Additions to non-current assets	9,674	-	-	-	D	9,674
Segment assets	281,074	6,938	114	-	E	288,126
Segment liabilities		56,382	152	396	-	F	56,930

Page 4 of 11

ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Registration No.199601017418 (389769-M))

(Incorporated in Malaysia)

EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024

8. Segment Information (continued)

1. Inter-segmentrevenues are eliminated on consolidation.
2. Other non-cash expense/(incomes) consist of the following items as presented in the respective notes to the financial statements:

	31.03.2024	31.03.2023
	RM'000	RM'000
Unrealised foreign exchange (gain)/loss	(159)	175
(Reversal of inventory written
down)/Inventory written down	(619)	60
Impairment loss /(reversal) for trade
receivables	1,477	(584)
Bad debts written off	-	1
Gain on disposal of property, plant and
equipment	(66)	(154)
	─────────	─────────
	633	(502)
	═════════	═════════

1. The following items are added to/(deducted from) segment profit to arrive at total consolidated profit before tax:

	31.03.2024	31.03.2023
	RM'000	RM'000
Dividend income from inter-segment	12,750	9,519
Unallocated corporate expenses	(729)	(663)
	─────────	─────────
	12,021	8,856
	═════════	═════════

1. Additions to non-current assets consist of property, plant and equipment.
2. Inter-segmentassets are deducted from segment assets to arrive at total assets reported in the condensed consolidated statement of financial position.
3. Inter-segmentliabilities are deducted from segment liabilities to arrive at total liabilities reported in the condensed consolidated statement of financial position.

Revenue information based on the geographical location of customers is as follows:

		Revenues
	01.04.2023 - 31.03.2024	01.04.2022 - 31.03.2023
	RM'000	%	RM'000	%
Malaysia	150,702	35%	154,308	43%
Asia	223,046	52%	158,040	44%
Others	57,976	13%	47,665	13%
	──────	───	──────	───
Total reported segments	431,724	100%	360,013	100%
	══════	═══	══════	═══

The Group has one customer that contributed more than 10% of the Group's revenue.

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ORIENTAL FOOD INDUSTRIES HOLDINGS BERHAD (Registration No.199601017418 (389769-M))

(Incorporated in Malaysia)

EXPLANATORY NOTES TO THE INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024

9. Significant Related Party Disclosures

The significant related party transactions and outstanding balance described below were carried out in the ordinary course of business and on commercial terms that are no more favourable than that available to other third parties.

	Transactions for
	the 12 months	Outstanding
	period ended	balance as at
	31.03.2024	31.03.2024
	RM'000	RM'000
Sale of goods to Syarikat Perniagaan Chong Mah Sdn.	1,239	72
Bhd.

Syarikat Perniagaan Chong Mah Sdn Bhd, a company incorporated in Malaysia, is a substantial shareholder of the Company. The transactions with this related party are conducted in accordance with the general mandate obtained from shareholders for recurrent related party transactions.

1. Material Events Subsequent to the End of the Reporting Period
   There was no material events subsequent to the end of the current quarter reported.
2. Changes in the Composition of the Group
   There were no changes in the composition of the Group during the current quarter.
3. Contingent Liabilities
   There were no contingent liabilities of a material nature to be disclosed.
4. Capital Commitments

	As at 31.03.2024
	RM'000
Authorised, contracted but not provided for:-
- purchase of property, plant and equipment	1,247
	______
	1,247
	═════

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