16 September 2021

Aseana Properties Limited
("Aseana", the "Company" or, the "Group")

Half-Year Results for the Six Months Ended 30 June 2021

Aseana Properties Limited (LSE: ASPL), a property developer with investments in Malaysia  and Vietnam, listed on the Main Market of the London Stock Exchange, announces its unaudited half-year results for the six-month period ended 30 June 2021.

Operational summary:

·        The RuMa Residences have been approximately 71% sold to date based on sale and purchase agreements signed.

·        The RuMa Hotel was temporarily closed for 60 days in two different periods due to MCO and achieved an average occupancy rate of approximately 11% in the first six months of 2021. Losses for the six months ending 30^th June was approximately 4.6m MYR in line with the budget; second half results will decline resulting from closure of the hotel due to MCO. The hotel has now re-opened but uncertainty remains as the hotel may be subjected to further closure under any future MCO's as mandated by Malaysian government.

·        In the first half year of 2021, The Harbour Mall Sandakan performance has exceeded expectations with occupancy rates at about 95%. The mall operator has continued to rebate rental lease payments to tenants during the prevailing MCO as a measure to support the tenants and to retain the occupancy levels. Financial performance through June 30^th, 2021 reflects expectations however if MCO continues into the latter half of 2021 financial performance will suffer.

·        City International Hospital has been negatively affected by Covid, similar to other hospitals in Vietnam and specifically Ho Chi Minh City ("HCM"). In the first 6 months, revenue decreased about 27% against budget, with overall EBITDA declining by approximately 57% against budget. Since December 2020, management have undertaken cost cutting measures across the board including instituting a hiring freeze, reviewing profit margins and productivity of staff. Performance is expected to improve in the second half as cost savings are realised, however, the Vietnam government mandated total lockdown of HCM in August, this mandate was expected to be gradually lifted starting 15^th September, 2021 but has now been extended to month end.

·        As reported in our Annual Report issued 2nd August, 2021, it is expected that the Group would be financed via the disposal of its investments in Vietnam, the sale of the remaining existing units of residential inventories at The RuMa Hotel & Residences in West Malaysia, and through the disposals of the Sandakan hotel asset (formerly Four Points Sheraton Sandakan Hotel), the Harbour Mall Sandakan and the RuMa Hotel. The Divestment Team has been actively seeking for potential purchasers.  

Financial summary:

·        Other Income of US$7.7 million (H1 2020: US$8.6 million)

·        Loss before tax of US$3.2 million (H1 2020: loss of US$8.2 million)

·        Loss after tax of US$3.3 million (H1 2020: loss of US$8.3 million)

·        Total comprehensive loss of US$6.6 million (H1 2020: loss of US$11.1 million)

·        Net asset value of US$96.7 million (31 December 2020 (audited): US$101.3 million) or US$0.49 per share (31 December 2020 (audited): US$0.51 per share)

Subsequent Events:

On 25^th August, 2021 the Company announced that it had entered into a binding agreement to sell its entire interest in both the City International Hospital and the adjacent International Healthcare Park in HCM. The terms of the transaction are subject to approvals from regulatory authorities as well as conditions to completion. It is expected the completion will take several months. Once completed, the Company will have no assets in Vietnam.

On 9^th September, 2021 the Company announced it had entered into a conditional agreement to sell the remaining 58 unsold residential units at The Ruma Hotel & Residences in Kuala Lumpur. Gross sale price is MYR 85.3m (approximately US $20.5m) and is subject to final due diligence by the Buyer as well as receipt of government approval for the sale to a foreign investor. Expected completion will take place within 8 months.

Commenting on the results, Nick Paris, Chairman of Aseana, said:

"The H1 2021 results show that Aseana has still had to deal with challenging market conditions in both Malaysia and Vietnam resulting from the negative impact of COVID 19 and the movement controls introduced by the respective governments to contain the spread of the virus. Nonetheless, the Company has continued to focus on improving the operational performance and narrowing the losses of its operating assets. Since the end of this period we have started to see the results of our divestment activities and we have signed two sale and purchase agreements covering our assets in Vietnam and our high end residences in Kuala Lumpur, Further asset sales are being actively worked on."

For further information:

Notes to Editors:

London-listed Aseana Properties Limited (LSE: ASPL) is a property developer with investments in Malaysia and Vietnam which is in the process of realising its assets.

CHAIRMAN'S STATEMENT

Introduction

I am pleased to report on the results of Aseana Properties Limited and its Group of companies for the six months ended 30 June 2021. 

Interim Results for the Half Year ended 30 June 2021

Our interim results in this period continue to reflect the significant impact of the COVID virus on our various operating businesses. Our operating revenue on our assets continued to be reduced and despite significant ongoing cost cutting initiatives, operating losses and cash outflows were inevitable. However, the comprehensive loss for Aseana for the half year did decrease to US$6.6 million (1H 2020: US$11.1 million), our net cash used in operating activities was US$4 million (1H 2020: US$11.0 million) and our cash balance at the end of the period was US$9.7 million (1H 2020: US$2.7 million) after we drew down some further financing.  The loss which we are reporting for the six months ended 30 June 2021 has reduced our Net Asset Value per Share from 51 US cents at 31 December 2020 to 49 US cents (30 June 2020: 50 US cents).

Our Business Focus and Recent Property Divestments

Our business focus for the Group continues to be on reducing our operating costs and on improving the operational performances of our remaining assets in order to preserve our cash balances.

In Vietnam, Hoa Lam Corporation, our long standing joint venture partner, has agreed to buy our interests in the City International Hospital and the International Healthcare Park. This transaction is now subject to completion conditions including local regulatory approvals.

In Kuala Lumpur, a foreign investor has contracted to buy our remaining residential units in The RuMa Hotel & Residences. Completion of this sale is subject to approval of various conditions and multiple regulatory authorities, and will take up to eight months.

These two sale transactions will eliminate the majority of debt owed by the Company. In addition, further sale discussions are underway on some of our other assets and we remain alert for any interest for any of our assets from prospective buyers. Our aim continues to be to seek asset sales in a controlled, orderly and timely manner, to pay off our project debts and then to return surplus sale proceeds to our shareholders.

Our listing on the London Stock Exchange

We had to temporarily suspend the listing of our shares on the London Stock Exchange in late June as the audit of our Annual Accounts for the year ended 31st December 2020 had been held up by the movement controls in Malaysia and Vietnam and the deadline for their publication was 30^th June. Our Annual Report was subsequently published on 3^rd August and we are in discussions with Financial Conduct Authority in the UK to get our listing restored and hope that this will happen shortly. 

Acknowledgements

I would like to take this opportunity to thank my colleagues on the Board and throughout our Group and our external advisors, bankers and service providers for their tireless efforts on behalf of the Group and its Shareholders. 

This has been another very challenging period in the corporate life of Aseana but with our recently announced divestments I believe that we are now heading into the final stages of the life of the Company.

NICK PARIS

Chairman

16 September 2021

PROPERTY PORTFOLIO AS AT 30 JUNE 2021

*Shareholding as at 30 June 2021

n/a: Not available/ Not applicable

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2021

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021