COCOALAND HOLDINGS BERHAD (Registration No. 200001013413, Co. No.

516019-H)
(Incorporated in Malaysia)

Financial Year End : 31 March 2020

Quarter : First Quarter

Quarterly report on results for the 1st quarter ended 31 March 2020. These figures have not been audited.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Current Preceding Current Preceding
Year Year Year Year
Quarter Quarter To Date To Date
31.03.2020 31.03.2019 % chg 31.03.2020 31.03.2019 % chg
RM'000 RM'000 RM'000 RM'000

Revenue 61,025 65,569 -6.9% 61,025 65,569 -6.9%

Cost Of Sales (48,296) (47,777) 1.1% (48,296) (47,777) 1.1%

Gross Profit 12,729 17,792 -28.5% 12,729 17,792 -28.5%

Other Income 3,216 1,667 92.9% 3,216 1,667 92.9%

Distribution Costs (3,418) (3,244) 5.4% (3,418) (3,244) 5.4%

Administrative Expenses (6,053) (5,436) 11.4% (6,053) (5,436) 11.4%

Finance Costs (3) (2) (3) (2)

Profit Before Taxation 6,471 10,777 -40.0% 6,471 10,777 -40.0%

Taxation (1,344) (2,359) -43.0% (1,344) (2,359) -43.0%

Profit For the Financial Period 5,127 8,418 -39.1% 5,127 8,418 -39.1%

Other Comprehensive Income

Items that are or may be reclassified
subsequently to profit or loss
- Exchange Translation Differences
For Foreign Operations (16) (14) (16) (14)
Other Comprehensive Loss
For The Financial Period (16) (14) (16) (14)
Total Comprehensive Income
For The Financial Period 5,111 8,404 5,111 8,404

Profit For The Financial Period Attributable To:

Owners Of The Company 5,127 8,418 5,127 8,418

Total Comprehensive Income Attributable To:

Owners Of The Company 5,111 8,404 5,111 8,404

Earnings Per Share

Basic And Diluted Earnings Per Ordinary
Share (Sen) 2.24 3.68 2.24 3.68

Notes :
The Condensed Financial Statements should be read in conjunction with the accompanying explanatory notes attached to the
financial statements.

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413, Co. No. 516019-H)
(Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF 31 MARCH 2020
(These figures have not been audited)

As At End Of As At End of
Current Month Financial Year
(Unaudited) (Unaudited)
31.03.2020 31.12.2019
RM'000 RM'000
ASSETS
Non-Current Assets
Property, Plant And Equipment 100,226 100,124
Right-Of-Use Assets 727 709
Investment Properties 1,621 1,638
102,574 102,471

Current Assets
Inventories 40,017 35,099
Trade Receivables 40,183 48,743
Tax Recoverable 2,255 1,130
Other Receivables, Deposits & Prepayments 23,309 15,274
Fixed Deposits With Licensed Bank 64,752 73,946
Cash & Bank Balances 19,928 11,388
190,444 185,580

TOTAL ASSETS 293,018 288,051

EQUITY AND LIABILITIES

Equity Attributable To Owners Of The Company
Share Capital 130,154 130,154
Revenue Reserves 125,242 120,115
Exchange Translation Reserves 172 188
TOTAL EQUITY 255,568 250,457

Non-Current Liabilities
Lease Liabilities 290 266
Deferred Tax Liabilities 5,459 5,905
5,749 6,171

Current Liabilities
Trade Payables 20,216 20,329
Other Payables & Accruals 8,898 8,869
Lease Liabilities 444 452
Tax Payable 2,143 1,773
31,701 31,423

TOTAL LIABILITIES 37,450 37,594

TOTAL EQUITY AND LIABILITIES 293,018 288,051

Net Assets Per Share (RM) Attributable to Owners of the Company 1.12 1.09

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413, Co. No. 516019-H)
(Incorporated in Malaysia)

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

<-Non Distributable-> <--Distributable-->

Exchange
Retained
Share Capital Translation Total
Earnings
Reserve

3 months ended 31 March 2019 RM'000 RM'000 RM'000 RM'000

As at 1 January 2019 as previously reported 130,154 189 105,855 236,198

Effect of adopting MFRS 16 - - (7) (7)

As at 1 January 2019, as reported 130,154 189 105,848 236,191

Foreign currency translation differences - (14) - (14)

Profit For the Financial Period - - 8,418 8,418

As at 31 March 2019 130,154 175 114,266 244,595

3 months ended 31 March 2020 RM'000 RM'000 RM'000 RM'000

As at 1 January 2020 130,154 188 120,115 250,457

Foreign currency translation differences - (16) - (16)

Profit For the Financial Period - - 5,127 5,127

As at 31 March 2020 130,154 172 125,242 255,568

-

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413, Co. No. 516019-H)
(Incorporated in Malaysia)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE 3 MONTHS ENDED 31 MARCH 2020
(These figures have not been audited)
Cumulative Cumulative
Current Year Preceding Year
To Date To Date
31.03.2020 31.03.2019
RM'000 RM'000
Cash Flows From Operating Activities
Profit before taxation 6,471 10,777

Adjustments for:-
Inventories written down 27 47
Reversal of inventories written down (14) (3)
Reversal of impairment loss on trade receivables (96) (625)
Impairment loss on trade receivables 11 -
Depreciation of property, plant and equipment 3,047 2,593
Depreciation of investment property 16 59
Depreciation of right-of-use assets 124 139
Unrealised loss / (gain) on foreign exchange (790) 227
Gain on disposal of property, plant & equipment (198) -
Property, plant and equipment written off 1 9
Interest paid 2 2
Interest received (663) (742)
Operating profit before working capital changes 7,938 12,483

Changes in working capital:

(Increase) / Decrease in inventories (4,931) 3,793
Decrease in receivables 1,400 417
Decrease in payables (84) (9,816)
(3,615) (5,606)
Cash generated from operations 4,323 6,877

Interest received 663 742

Interest paid (2) (2)
Tax refund - 514
Tax paid (2,546) (2,151)
(1,885) (897)
Net Cash Generated From Operating Activities 2,438 5,980

Cash Flows From Investing Activities

Purchase of property, plant and equipment (9,782) (431)
Proceed from disposal of property, plant and equipment 200 -
Increase in fixed deposits with maturity more than three months (10,309) (28,505)
Net Cash Used In Investing Activities (19,891) (28,936)

Cash Flows From Financing Activities

Repayment of lease liabilities (129) (143)
Decrease in fixed deposits pledged with licensed bank 3,611 -
Net Cash Generated From / (Used in) Financing Activities 3,482 (143)

Net Decrease in Cash And Cash Equivalents (13,971) (23,099)

Effect of Exchange Translation Differences on Cash and Cash Equivalents (7) (12)
Cash And Cash Equivalents At Beginning Of The Period 74,939 87,417
Cash And Cash Equivalents At End Of The Period * 60,961 64,306

* Cash & cash equivalents consists of:

Fixed deposits with licensed banks 64,752 74,949
Cash and bank balances 19,928 17,862
84,680 92,811
Less: Fixed deposits with maturity more than three months (20,705) (28,505)
Less: Fixed deposits pledged to licensed bank (3,014) -
60,961 64,306

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

Part A: Explanatory Notes In Compliance With Malaysian Financial Reporting

Standard (“MFRS”) 134: Interim Financial Reporting in Malaysia

A1. Accounting Policies and Basis Of Preparation

These condensed consolidated interim financial statements have been prepared in

accordance with Malaysian Financial Reporting Standard (“MFRS”) 134: Interim
Financial Reporting in Malaysia issued by the Malaysian Accounting Standards Board
and with paragraph 9.22 and Appendix 9B of the of the Main Market Listing
Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”). The interim
financial statements should be read in conjunction with the Group’s audited financial
statements for year ended 31 December 2018.

The audited financial statements of the Group for the year ended 31 December 2018
were prepared in accordance with MFRS.

There are no new MFRSs or interpretations that are effective for the first time in this
quarter that would be expected to have a material effect of the Group.

The accounting policies and methods of computation adopted by the Group in these
quarterly financial statements are consistent with those adopted in the most recent
annual audited financial statements for the year ended 31 December 2018 except for
changes arising from the adoption of MFRS 16 Leases as described below:

Adoption of MFRS 16 Leases

The Group has adopted MFRS 16 Leases with effective from 1 January 2019. The
standard replaces the MFRS 117 Leases.

MFRS 16 introduces a single, on-balance sheet lease accounting model for lessees. A
lessee recognises a right-of-use asset representing its right to use the underlying asset
and a lease liability representing its present obligations to make lease payments.

There are recognition exemptions for short-term leases and leases of low-value items.
Lessor accounting remains unchanged to the current standard which continues to be
classified as finance or operating lease.

As allowed by the transactional provision, the Group applies modified retrospective

approach without any restatement of comparative information and its impact of adopting
MFRS 16 was recognised as an adjustment to the opening balance of components at 1
January 2019 as follows.

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

Impact of change in accounting policies in Condensed Consolidated

Statement of Financial Position as at 1 January 2019

As previously MFRS 16
Opening Balance reported adjustment After adjustment
RM'000 RM'000 RM'000
Assets
Right-of-use assets - 710 710

Liabilities
Non-current lease
-
liabilities 266 266

Current lease
-
liabilities 451 451

Equity
Retained earnings 105,855 (7) 105,848

A2. Qualification of Financial Statements

The auditors’ report in respect of the audited financial statements for the financial year
ended 31 December 2018 was not subjected to any qualification.

A3. Seasonal or Cyclical Factors

The Group’s business operation results for the current quarter under review were not
materially affected by any seasonal or cyclical factors.

A4. Nature and Amount of Unusual Items

There were no unusual items affecting assets, liabilities, equity, net income or cash flows
of the Group during the current quarter under review.

A5. Nature and Amount of Changes in Estimates

There were no changes in the estimates of amounts reported that have a material effect
in the current quarter.

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

A6. Dividend Paid

There was no dividend paid during the quarter under review (2019: nil)

A7. Debt and Equity Securities

There were no issuance, cancellations, repurchases, resale and repayment of debt and
equity securities during the current quarter.

A8. Segmental Reporting

Group – by business segment:-

The Group’s segmental report for the current financial period ended 31 March 2020 is
as below:-

Investment
Manufacturing Trading Elimination Total
Holding
RM'000 RM'000 RM'000 RM'000 RM'000

1st quarter ended 31 March 2020

Revenue:
External 21,947 39,078 - - 61,025
Inter-segment 23,206 683 - (23,889) -
Total revenue 45,153 39,761 - 61,025
Profit before tax 2,651 3,783 (183) 220 6,471

1st quarter ended 31 March 2019

Revenue:
External 16,899 48,670 - - 65,569
Inter-segment 30,734 2,136 - (32,870) -
Total revenue 47,633 50,806 - 65,569
Profit before tax 3,995 6,539 (140) 383 10,777

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

Investment
Manufacturing Trading Elimination Total
Holding
RM'000 RM'000 RM'000 RM'000 RM'000

Cumulative 1st quarter ended 31 March 2020

Revenue:
External 21,947 39,078 - - 61,025
Inter-segment 23,206 683 - (23,889) -
Total revenue 45,153 39,761 - 61,025
Profit before tax 2,651 3,783 (183) 220 6,471

Cumulative 1st quarter ended 31 March 2019

Revenue:
External 16,899 48,670 - - 65,569
Inter-segment 30,734 2,136 - (32,870) -
Total revenue 47,633 50,806 - 65,569

Profit before tax 3,995 6,539 (140) 383 10,777

Assets and liabilities as at 31 March 2020

Segment assets 168,615 136,169 142,352 (154,118) 293,018

Segment liabilities 109,765 46,598 623 (119,536) 37,450

Group – by geographical segment:-

In preparing information on the basis of geographical segments, segment revenue is
based on geographical location of customers. Segment non-current assets are based on
geographical location of the assets.

Revenue Non-current assets

for the period ending as at
31 March 31 March 31 March 31 March
2020 2019 2020 2019
RM'000 RM'000 RM'000 RM'000
Malaysia 27,893 27,777 102,510 103,571
Eastern Asia 15,849 20,681 64 61
South East Asia 9,267 8,513 - 18
Middle East 7,055 7,147 - -
Others 961 1,451 - -
61,025 65,569 102,574 103,650
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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

A9. Valuations of Property, Plant and Equipment

The property, plant and equipment except for freehold land are stated at cost/valuation
less accumulated depreciation and impairment losses. There was no revaluation of
property, plant and equipment for the current quarter and financial year to date.

The valuations of property, plant and equipment of the Group have been brought forward
without amendments from the financial statements for the year ended 31 December 2018.

A10. Subsequent Events

There were no material events subsequent to the reporting period up to 20 May 2020
(latest practicable date which is not earlier than 7 days from the date of issue of this
quarterly report) which have not been reflected in the financial statements for the
quarter under review.

A11. Changes in the Composition of the Group

There were no material changes in the composition of the Group for the current quarter
under review.

A12. Contingent Liabilities or Contingent Assets

There were no changes in other contingent liabilities or contingent assets since the last
audited consolidated statement of financial position as at 31 December 2018.

A13. Capital Commitments

The outstanding amount of capital commitments as at 31 March 2020 are as follows:-

RM’000

Property, plant and equipment :-

- Approved and contracted for 10,249
- Authorized but not contracted for 7,737

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

A14. Significant Related Party Transactions

The Group has the following significant transactions with the related parties during the
periods:-
Current Preceding
Year Year
Quarter Quarter
RM’000 RM’000

Prepare, package, pack and deliver Fraser and Neave

Limited group of companies’ products :-
- Sales 2,074 1,786
- Purchase of ingredients* 1,254 1,537

* The purchase of ingredients are exclusively used for the preparing of the Fraser and
Neave Limited group of companies products.

The above transactions had been entered into in the ordinary course of business on
normal commercial terms with Fraser and Neave Limited group of companies. These
transactions are within the ambit of the mandate approved by the shareholders of the
Company on 29 May 2019.

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

Part B: Additional Explanatory Notes In Compliance With Listing Requirements Of The

Bursa Malaysia Securities Berhad

B1. Review of Performance

The Group registered lower revenue of RM61.0 million, a decrease of RM4.5 million or
6.9% as compared to RM65.5 million in the preceding year’s corresponding period. The
declined performance was mainly attributable to declining demand for own brand gummy
from overseas market especially China and South Korea due to the outbreak of Covid-
19 pandemic. However, the decrease was partially offset by rising demand for gummy
of Contract Manufacturing Business and own brand snack product.

Pre-tax profit of RM6.5 million, 39.8% lower than RM10.8 million achieved in the
corresponding period of previous year. The decrease was mainly attributable to higher
factory labour overhead and higher advertising expenditure in tandem with the declining
revenue.

The performance of the major operating business segments of the Group is summarized
as follows:-

Manufacturing segment

Higher revenue was predominantly due to rising gummy demand of Contract

Manufacturing Business. The improving revenue was partially offset by declining
demand for hard candy from overseas market. Lower pre-tax profit as compared to the
same period of preceding year was mainly due to higher factory labour overhead and
advertising expenditure.

Trading segment

Lower revenue was predominantly due to the lower demand from overseas market
especially for own brand gummy. Lower pre-tax profit was principally attributable to
higher advertising and promotion expense incurred in tandem with lower revenue earned.

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

B2. Comparison with Immediate Preceding Quarter's Results

Current Immediate Difference

Year Preceding
Quarter Quarter
RM’000 RM’000 %
Revenue 61,025 70,229 -13.1%
Gross Profit 12,729 23,336 -45.4%
Profit Before Tax 6,471 18,023 -64.1%
Profit After Tax 5,127 13,581 -62.2%
Profit Attributable to Owners of
5,127 13,581 -62.2%
The Company

The Group recorded lower revenue of RM61.0 million for current quarter, a decrease of
13.1% from the immediate preceding quarter. The decrease was mainly attributable to
lower demand for own brand gummy from overseas market due to Covid-19 pandemic
and higher festive season sales recorded in immediate preceding quarter.

Lower pre-tax profit of RM6.5 million for the current quarter, a decrease of 64.1% against
immediate preceding quarter. The decrease was mainly due to lower revenue earned
couple with higher labour and factory overhead cost incurred.

B3. Commentary On Prospects

With the global outbreak of COVID-19 pandemic, economic activities in domestic and
overseas markets have been adversely affected by the lockdowns. Amid the pandemic,
all plants under the Group continues to operate with compliance of stringent Standard
Operating Procedures, resources are deployed to minimise the risk of contagion thus
ensure safe working conditions. During this period, the Group will also work closely with
our suppliers and trading partners to ensure minimal disruption of materials and products
supplies.

Due to the uncertain impact of the COVID-19 pandemic on the world and domestic
economic environment, the Board is currently unable to ascertain the financial impact of
the COVID-19 pandemic to the Group until such time that the overall impact of the
COVID-19 pandemic becomes clearer. Nevertheless, the Group will continue to maintain
and improve product quality, innovating products portfolio, reducing costs and
broadening the distributor network to safeguard revenue and addressing the needs of
consumers.

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

B4. Profit Forecast or Profit Guarantee

The Group did not issue any profit forecast or profit estimate previously in any public
document.

B5. Income Tax

Individual Quarter Cumulative Quarter
Current Preceding Current Preceding
Year Year Year Year
Quarter Quarter To Date To Date
RM’000 RM’000 RM’000 RM’000
Income tax:
• Current period 1,791 2,810 1,791 2,810
estimate
• Under/ (Over) - - - -
provision in prior
year

Deferred taxation:
• Transferred from (447) (451) (447) (451)
deferred taxation

1,344 2,359 1,344 2,359

B6. Status of Corporate Proposals

There were no corporate proposals announced but not completed as at 20 May 2020
which is not earlier than 7 days from the date of issue of this quarterly report.

B7. Group Borrowings

The Group’s borrowings (all denominated in Ringgit Malaysia) as at the end of the
reporting quarter are as follows:-
As At As At
31.03.2020 31.03.2019
RM’000 RM’000
TOTAL BORROWING - -

B8. Material Litigation

There was no material litigation at the date of this quarterly report.

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

B9. Dividend Payable

No interim dividend has been declared for the current quarter under review (31 March
2019: nil).

B10. Earnings per share

The earnings per share for the quarter and cumulative year to date are computed as
follows: -

Individual Quarter Cumulative Quarter

Current Preceding Current Preceding
Year Year Year Year
Quarter Quarter To Date To Date
Profit for the period (RM’000) 5,127 8,418 5,127 8,418
Weighted average number of
ordinary shares of RM0.50
each (‘000) 228,800 228,800 228,800 228,800

Basic earnings per share (sen) 2.24 3.68 2.24 3.68

Diluted earnings per share (sen) N.A. N.A. N.A N.A

*

* The Group has no potential ordinary shares in issue, therefore diluted

earnings per share has not been presented.

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COCOALAND HOLDINGS BERHAD (Registration No. 200001013413 (516019-H))
Quarterly Unaudited Results Of The Group For The 1st Quarter Ended 31 March 2020
__________________________________________________________________________________

B11. Profit before tax is stated after charging/(crediting) :-

Current Preceding
Year Year
Quarter Quarter
RM’000 RM’000
Interest income (663) (742)
Interest expense 2 2
Inventories written down 27 47
Reversal of inventories written down (14) (3)
Depreciation of property, plant and equipment 3,047 2,593
Depreciation of investment property 16 59
Depreciation of right-of-use assets 124 139
Gain on disposal of property, plant and equipment (198) -
Property, plant and equipment written off 1 9
Impairment loss on trade receivables 11 -
Reversal of impairment loss on trade receivables (96) (625)
(Gain)/ Loss on foreign exchange
- realized (684) (279)
- unrealized (790) 227

By Order Of The Board

Tai Chun Wah

Executive Director
Dated: 27 May 2020

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