Revision to Preliminary Full Year Report to 30 June 2018

CSM Group Limited

Updated Preliminary Annual Financial Result 2018
(unaudited)

CSM Group Limited Page 2 of 7
CSM Group Limited
Updated Preliminary Financial Results (unaudited)
For the year ended 30 June 2018

Contents

Contents 2
Consolidated Statement of Comprehensive Income 3
Consolidated Statement of Changes in Equity 4
Consolidated Statement of Financial Position 5
Consolidated Statement of Cash Flows 6
Segment Information 7

CSM Group Limited Page 3 of 7
CSM Group Limited
Consolidated Statement of Comprehensive Income (unaudited)
For the year ended 30 June 2018


30.6.2018 30.6.2017
US$’000 US$’000
Continuing Operations
Revenue - -
Cost of goods sold - -
Gross Profit - -
Other income - -
Administrative expenses (430) (422)
Operating loss (430) (422)
Finance income 19 14
Exchange gain / (loss) (153) 78
Loss before income tax (564) (330)
Income tax expense - -
Loss from continuing operations (564) (330)
Discontinued Operation
Loss from discontinued operation (105) (858)
Net loss for the year attributable to shareholders (669) (1,188)

Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of overseas subsidiaries 2 17
Other comprehensive income for the year, net of tax 2 17

Total comprehensive loss for the year attributable to shareholders (667) (1,171)

Total comprehensive loss for the year attributable to shareholders arises
from:

Continuing operations (564) (330)
Discontinuing operations (103) (841)
(667) (1,171)

Earnings per share for loss attributable to shareholders for continuing
operations:

Basic loss per share (cents per share) (0.1361) (0.0796)
Diluted loss per share (cents per share) (0.1361) (0.0796)

CSM Group Limited Page 4 of 7
CSM Group Limited
Consolidated Statement of Changes in Equity (unaudited)
For the year ended 30 June 2018

Share
Capital
Foreign
Currency
Translation
Reserve
Accumulated
Losses
Total Equity
US$’000 US$’000 US$’000 US$’000

Balance as at 1 July 2016 32,355 (491) (28,207) 3,657

Net loss attributable to shareholders - - (1,188) (1,188)
Other comprehensive income - 17 - 17
Total comprehensive loss - 17 (1,188) (1,171)

Balance as at 30 June 2017 32,355 (474) (29,395) 2,486

Net loss attributable to shareholders - - (669) (669)
Other comprehensive income - 2 - 2
Total comprehensive loss - 2 (669) (667)

Balance as at 30 June 2018 32,355 (472) (30,064) 1,819

CSM Group Limited Page 5 of 7
CSM Group Limited
Consolidated Statement of Financial Position (unaudited)
As at 30 June 2018

30.6.2018 30.6.2017
US$’000 US$’000
ASSETS
Non-current assets
Property, plant and equipment - -
Intangible assets - -
Total Non-Current Assets - -

Current assets
Cash and cash equivalents 1,653 1,961
Trade and other receivables 81 97
Inventories - 228
Property, plant and equipment - 348
Taxation receivable 166 174
Total Current Assets 1,900 2,808
TOTAL ASSETS 1,900 2,808


LIABILITIES
Current liabilities
Trade and other payables 81 322
Total Current Liabilities 81 322
TOTAL LIABILITIES 81 322

EQUITY
Share capital 32,355 32,355
Reserves (30,536) (29,869)
Total Equity 1,819 2,486
TOTAL EQUITY AND LIABILITIES 1,900 2,808

CSM Group Limited Page 6 of 7
CSM Group Limited
Consolidated Statement of Cash Flows (unaudited)
For the year ended 30 June 2018

30.6.2018 30.6.2017
US$’000 US$’000
OPERATING ACTIVITIES
Receipts from customers 414 482
Interest received 21 19
Payments to suppliers and employees (996) (920)
Income tax paid (5) (3)
Net cash outflows from operating activities (566) (422)

INVESTING ACTIVITIES
Disposal of property, plant and equipment 365 128
Purchase of property, plant and equipment - (7)
Purchase of intangible assets - -
Net cash outflows from investing activities 365 121

Net decrease in cash and cash equivalents (201) (301)
Cash and cash equivalents at the beginning of the year 1,961 2,231
Effect of exchange rate changes (107) 31
Cash and cash equivalents at end of year 1,653 1,961

CSM Group Limited Page 7 of 7
CSM Group Limited
Segment Information (unaudited)
For the year ended 30 June 2018

The Group has identified its operating segments based on the internal reports reviewed and used by the Board of Directors in assessing
performance and in determining the allocation of resources.
The Group is organised into the following main operating segments:
• China Scrap Metals Resources Pty Limited (CSM Ltd Australia) includes the now discontinued business operation in Australia that was
involved in the processing of scrap metal for export sale to Chinese markets.
• Holding company New Zealand includes holding company costs and head office charges.
Revenue is allocated based on the country where the sale is generated. Expenses are allocated based on the country where the expense is
incurred.
Total assets and liabilities are allocated based on where those assets and liabilities are located.

Year ended 30 June 2018 Year ended 30 June 2017

CSM Ltd
Australia
Holding
Company New
Zealand
Total CSM Ltd
Australia
Holding
Company New
Zealand
Total

US$’000 US$’000 US$’000 US$’000 US$’000 US$’000

Total inter-segment revenue - - - - 72 72
Total external sales revenue 394 - 394 479 - 479

Total EBITDA (174) (430) (604) (390) (422) (812)
Amortisation - - - (3) - (3)
Depreciation - - - (133) - (133)
Impairment recovered / (Impairment) 17 - 17 (247) - (247)
Provision for closedown costs - - - (95) - (95)
Finance income 2 19 21 5 14 19
Exchange gain / (loss) 50 (153) (103) 5 78 83
Loss before taxation (105) (564) (669) (858) (330) (1,188)
Income tax expense - - - - - -
Net loss for the year (105) (564) (669) (858) (330) (1,188)

Allocated non-current segment assets - - - - - -
Additions to non-current assets - - - 27 - 27
Allocated segment liabilities - 81 81 233 89 322
The “Total EBITDA” measure above excludes foreign exchange gains / losses as well as net finance income and depreciation.

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CSM GROUP LIMITED
P. O Box 105 745, Auckland City 1143

21st September 2018

announce@nzx.com

The Company is pleased to release its unaudited preliminary results for the year ended 30 June 2018.

Updated Preliminary Financial Statements for the year ended 30 June 2018 (unaudited)


CSM GROUP LIMITED
Updated Results for Release to the Market
Reporting Period 12 Months to 30 June 2018
Previous Reporting Period 12 Months to 30 June 2017

Amount US $000’s Percentage change
Revenue from ordinary activities
- Discontinued activities

$394

(17.75) %
Profit (Loss) from ordinary activities after
tax attributable to security holder

($669)

43.69 %
Net Profit (Loss) attributable to security
holders

($667)

43.04 %
Interim Dividend It is not proposed to pay a
dividend

Record date N/a
Dividend date N/a


The Company’s Presentation Currency is US Dollars

Results
The Group’s preliminary financial results for 2018 are attached.

These attached results include:
• Statement of comprehensive income
• Statement of movements in equity
• Statement of financial position
• Statement of cashflows
• Segmental information

The Group’s result shows a net loss of US$669,000 for the year ended 30 June 2018. The total comprehensive
loss for the year to 30 June 2018 is USD $667,000. The company holds its cash reserves in Australian dollars as
that is the currency where its major expenditure occurs but it reports in the Group’s presentation currency of US
Dollars.
The Company had 414,550,000 ordinary shares on issue during the reporting period. No shares were issued
during the reporting period.

The net tangible assets per share as at 30 June 2018 is USD 0.44 cents (2017: USD 0.60 cents).

The basic and diluted loss per share for the 30 June 2018 period was:
• Continued activities USD 0.1361 cents (2017: USD 0.0796 cents).
• Discontinued activities USD 0.0253 cents (2017: USD 0.2070 cents).
• Total USD 0.1614 cents (2017: USD 0.2866 cents).

Directors’ Report

CSM Group Operations

Following the decision last financial year to cease operations at its wholly owned subsidiary China Scrap Metal
Resources Pty Ltd (“CSM Pty”) the company has continued to wind down that business and proceed to a voluntary
winding up of that entity.

The financial results reflect the decision to minimise costs, wind down and exit the Australian operation, CSM Pty.

The wind down has taken the following steps:
• CSM Pty has sold all of its scrap metal inventory.
• CSM Pty has sold all of its property, plant and equipment as the operations were wound down.
• CSM Pty employees’ service with CSM Pty ceased on 30 September 2017.
• CSM Pty undertook a land reinstatement programme in respect of the site in Lara, to return the site to the
state it was in as at the commencement of the lease.
• The Lara site has been formally handed back to the landlord.

As cash has been realised from the sale of inventory, property, plant and equipment and local liabilities satisfied,
surplus funds have been transferred to the parent company, CSM Group.

Future Options
Following the winding up of CSM Pty, the Company will revert to operating as a listed shell, with considerable cash
resources and no debt. The Company has no term liabilities, and will have limited ongoing liabilities, most of which
are associated with maintaining a listing on the NZAX market.

The options available for CSM Group include:
• finding a business operation to invest in;
• undertaking a reverse listing of a business seeking a stock exchange listing;
• the voluntary liquidation of the Company, and the distribution of the net proceeds of the liquidation to the
shareholders of the Company.

No decision has yet been made as to which course of action the Company shall take in the future.

Result
The financial result for the Group for the year ended 30 June 2018 is a loss of USD $669,000.