For the financial year ended 31 March 2024
ANNUAL REPORT FY2024
ASX code: 8IH
Company registration number 201414213R
ARBN 601 582 129
8I Holdings Limited
For personal use only
About 8I Holdings Limited
8I Holdings Limited (“8IH” or “the Group”) is an
Australia-listed investment holding company committed
to strategic holdings management. With a vision
centred on empowering growth and transforming lives,
8I dedicates its efforts to creating a positive impact and
fostering empowerment.
Our Vision
Empowering Growth and Transforming Lives
Our Mission
Empowering Everyone Towards Sustainable Wealth
For personal use only
CONTENTS
Chairman’s Message
2
Operations and Financial Review
4
Board of Directors and Key
Management
7
Corporate Governance Statement
10
Remuneration Report
20
Directors’ Statement
23
Independent Auditors’ Report
25
Consolidated Statement of
Comprehensive Income
30
Consolidated Statement of
Financial Position
31
Statement of Financial Position
– Company
32
Consolidated Statement of
Changes in Equity
33
Consolidated Statement of
Cash Flows
37
Notes to the Financial Statements
39
Additional Information
75
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
For personal use only
OPERATING AND FINANCIAL REVIEW
For the financial year ended 31 March 2024
2
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Dear Valued Shareholders,
I am honored to present to you the annual report for 8I Holdings
Limited for the financial year ended 31st March 2024. This year
has been one of profound transformation and strategic
realignment for our Group. As we navigate through an
exceptionally dynamic and challenging global investment
landscape, our commitment to delivering long-term value to our
shareholders remains unwavering.
FY2024 was characterized by significant global economic and
geopolitical shifts. The resilience of the U.S. economy contrasted
sharply with the slower-than-expected recovery in China and the
ongoing conflict between Russia and Ukraine, which continued
to create volatility in energy markets and global supply chains.
Additionally, persistent geopolitical tensions between major
economies added layers of complexity to the investment
environment.
Amid
these
challenges,
technological
advancements in AI, cybersecurity, and biotechnology drove
innovation and growth in specific sectors, underscoring the
importance of staying ahead of technological trends.
In response to these multifaceted global conditions, we
undertook a comprehensive restructuring of our Group. This
transformative process involved the strategic divestment of our
operational businesses, including VI College and Goodwhale.
This pivotal decision marked a significant shift in our strategic
direction, allowing us to streamline our operations and refocus
on our core strength: investment management.
Our new investment strategy is a testament to our commitment
to prudence and value creation. By utilizing proprietary funds and
adopting a conservative risk management approach, we have
laid a solid foundation for sustainable growth. Our focus is on
leveraging diversified, low-expense ETFs for broad market
exposure and meticulously selecting undervalued companies
with strong growth potential. This strategy not only minimizes risk
but also positions us to capitalize on mid to long-term market
opportunities.
One of the most significant developments this year was the
completion of a capital reduction and the distribution of CHESS
Depository Interests (CDIs) in 8VI Holdings Limited to our
shareholders. This move was part of a broader strategy to
rationalize our corporate structure and enhance shareholder
value by providing direct ownership in a focused FinEduTech
entity. This strategic action reflects our ongoing commitment to
maximizing shareholder returns and aligning our interests with
those of our investors.
CHAIRMAN’S STATEMENT
Ken Chee
Chairman
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OPERATING AND FINANCIAL REVIEW
For the financial year ended 31 March 2024
3
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Our financial performance for FY2024 underscores the positive
impact of our strategic pivot. While the divestment of operational
businesses and the adoption of a new investment strategy
presented initial challenges, these changes have set the stage
for a more resilient and focused business model. The shift
towards proprietary fund management, coupled with a
disciplined approach to risk management, has already begun to
yield favorable results.
Looking forward, our strategic priorities are clear. We are
committed to generating robust returns through a balanced
investment
approach
that
emphasizes
diversification,
conservative risk management, and strategic stock selection.
Our focus on value investing, coupled with our no-leverage
policy, ensures that we are well-positioned to navigate market
volatility and capitalize on emerging opportunities.
The coming year will undoubtedly present its own set of
challenges and opportunities. However, I am confident that with
our refined strategic focus, disciplined investment approach,
and unwavering commitment to our shareholders, we will
continue to build on our successes and drive sustainable
growth.
In closing, I would like to extend my heartfelt gratitude to our
shareholders for your unwavering trust and support during this
period of transformation. Your confidence in our vision and
strategy drives us to strive for excellence. Together, we will
navigate the complexities of the global market and emerge
stronger, creating lasting value for all our stakeholders.
Warm regards,
Ken Chee
Executive Chairman
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
CHAIRMAN’S STATEMENT
For personal use only
OPERATING AND FINANCIAL REVIEW
For the financial year ended 31 March 2024
4
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Overview of the Global Investment
Climate
The fiscal year 2024 presented a challenging and
dynamic global investment landscape influenced by
a confluence of macroeconomic trends, geopolitical
events, and rapid technological advancements.
Persistent inflationary pressures and disparate
regional economic growth patterns emerged as
dominant themes. The U.S. economy, for instance,
demonstrated
remarkable
resilience,
with
a
significant GDP rebound in the latter part of the
year, reflecting robust consumer spending and
business
investment.
Conversely,
emerging
markets exhibited varied performance, with some
regions showing signs of recovery while others
struggled with structural economic issues and
political instability.
China's economic recovery from its stringent zero-
COVID policy was slower than anticipated, with
growth rates not yet reaching pre-pandemic levels.
This gradual recovery impacted global supply
chains and commodity markets, given China's
integral role in global trade. Meanwhile, the ongoing
conflict between Russia and Ukraine continued to
disrupt global markets, particularly in terms of
energy prices and supply chains, highlighting
Europe's heavy reliance on Russian energy
supplies. This conflict introduced considerable
volatility into global markets and contributed to
heightened inflationary pressures.
Simultaneously, the persistent geopolitical tensions
between the U.S. and China continued to influence
global trade and investment flows, creating an
environment of uncertainty for businesses and
investors alike. These tensions had far-reaching
implications for global supply chains, technology
transfers, and foreign direct investment.
Technological advancements continued to drive
growth in specific sectors. The technology sector
thrived, driven by significant progress in artificial
intelligence, cybersecurity, and semiconductor
technologies.
These
advancements
spurred
innovation and productivity gains across various
industries. The healthcare sector also experienced
substantial growth, propelled by breakthroughs in
biotechnology and pharmaceuticals, which were
further accelerated by the global emphasis on
healthcare in the wake of the pandemic. However,
both sectors faced increasing regulatory scrutiny in
major markets like the U.S. and Europe, where
governments sought to balance innovation with
consumer protection and data privacy concerns.
The real estate market exhibited contrasting trends.
Globally, residential real estate remained robust,
buoyed by historically low interest rates in the early
part of the year and a limited housing supply that
kept demand high. In contrast, commercial real
estate, particularly office space, struggled to adapt
to the new normal of remote and hybrid work
models. This shift in work culture led to decreased
demand for traditional office spaces and prompted
a revaluation of commercial real estate strategies.
Operations Review
In response to this uncertain global investment
climate, 8IH undertook a comprehensive and
strategic restructuring. This transformative process
involved the divestment of all its operational
businesses, including VI College and Goodwhale,
its FinEduTech arm. This decision marked a
significant shift in the Group's strategic direction, as
it moved away from managing educational services
to focusing exclusively on investment activities. The
divestment allowed 8IH to streamline its operations
and concentrate its resources on its core
competency of investment management.
The Group's new investment strategy is centered
around the utilization of proprietary funds, moving
away from the previous model of managing external
capital through VI Fund Management. This
approach underscores a commitment to leveraging
the Group’s own capital to drive growth and
generate returns. The strategy combines the use of
widely diversified, low-expense, reputable ETFs for
broad market exposure with a targeted approach to
stock picking. The focus is on identifying and
investing in undervalued companies that have
strong potential for outperformance in the mid to
long term.
A critical aspect of this strategy is the emphasis on
conservative risk management. The Group has
adopted a no-leverage policy, choosing to avoid the
use of leverage to minimize investment risk. This
disciplined approach to risk management is
designed to ensure the stability and resilience of the
investment portfolio.
For personal use only
OPERATING AND FINANCIAL REVIEW
For the financial year ended 31 March 2024
5
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Financial Performance
The financial performance for the fiscal year 2024
reflects the impact of these strategic changes and
the
challenging
market
environment.
From
continuing operations, 8IH reported investment
gains of S$0.7 million, a significant improvement
compared to the previous year’s loss of S$1.8
million.
Other gains coupled with other income totalling
S$1.0 million. Despite these positive contributions,
the Group incurred administrative expenses of
S$1.6 million. As a result, the profit before income
tax from continuing operations stood at S$0.1
million, a substantial turnaround from the loss of
S$3.6 million in FY 2023.
However, the Group’s discontinued operations
reported a loss of S$3.0 million, significantly lower
than the previous year’s loss of S$13.6 million.
Consequently, the total loss for the year was S$3.0
million, an improvement from the S$17.3 million loss
reported in FY 2023.
In terms of the financial position, as of 31 March
2024, 8IH’s total assets amounted to S$13.5 million,
down from S$34.2 million the previous year. This
decrease was primarily due to the distribution of
interests
in
8VI
Holdings
Limited
to
8IH
shareholders. The Group’s net assets stood at
S$13.1 million down from S$17.5 million, reflecting
the losses incurred during the year and the
distribution to shareholders.
Capital Reduction and Distribution of
CHESS Depository Interests in 8VI
Holdings Limited
On November 8, 2023, 8IH completed a significant
corporate action involving a capital reduction and
the distribution of CHESS Depository Interests
(CDIs) in 8VI Holdings Limited (8VI) to its
shareholders. This initiative was part of a broader
strategy to rationalize the Company’s structure and
create value for shareholders.
This strategic move aimed to rationalize 8IH'
business and focus on its core investment activities.
The
distribution
of
8VI
shares
provided
shareholders with direct ownership in a focused
FinEduTech company, aligning with the Group’s
objective of maximizing shareholder value.
The divestment of all operational businesses
represents a major transformation for 8IH, allowing
the Group to reorient its strategic focus towards
investment activities. The adoption of a new
investment strategy, which uses proprietary funds
and emphasizes the use of ETFs, value investing,
and stringent risk management practices, signifies
a deliberate and targeted approach to achieving
sustainable returns. This strategic pivot is expected
to enhance the Group's ability to navigate the
complexities of the global market environment and
capitalize on emerging opportunities.
Distribution of Interests in 8VI to Shareholders
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OPERATING AND FINANCIAL REVIEW
For the financial year ended 31 March 2024
6
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Looking Forward
As 8IH embarks on this new strategic path, the
success of its investment strategy will be contingent
on its ability to effectively navigate a volatile and
unpredictable market environment. The Group is
committed to generating strong returns through its
selected investment vehicles, which include a
combination of diversified ETFs and carefully
selected stocks with high growth potential.
Looking ahead, 8IH remains dedicated to its
strategic objectives and is well-positioned to
capitalize on market opportunities while maintaining
a disciplined approach to risk management. The
Group's commitment to focus on value investing
and conservative risk practices, sets a solid
foundation for sustainable growth and long-term
success. By staying attuned to market trends and
continuously adapting its strategy, 8IH aims to
deliver robust financial performance and create
lasting value for its shareholders.
For personal use only
BOARD OF DIRECTORS AND KEY MANAGEMENT
7
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Board of Directors
Ken Chee
Executive Chairman
Ken Chee is the co-founder and Executive Chairman of 8I Holdings Limited
and is based in Singapore. Appointed to the board in May 2014, Ken advises
on strategic planning and partnerships development of the Group.
Ken has more than 20 years of professional experience across business
development, operations, strategy and marketing from his past roles,
including Quicken (Singapore) and Telekurs Financial.
Ken was awarded the Spirt of Enterprise, Honoree Award in 2005 by the
President of Singapore for outstanding business results. He sits on the board
of 8VI Holdings Limited and is also a Young Presidents’ Organisation
member under the Singapore Chapter.
Ken graduated from the Singapore Polytechnic with a Diploma in Banking
and Financial Services, and the University of Queensland with a Bachelors’
Degree in Business Administration. He also attended Columbia Business
School in New York for its Executive Program in Value Investing.
Clive Tan
Executive Director
Clive Tan is the co-founder and Executive Director of 8I Holdings Limited and
is based in Singapore.
Within the Group, Clive is responsible for the strategic planning, investment
management, corporate policies and risk management of its businesses.
Clive is also on the board of Australian-listed 8VI Holdings Limited. He began
his professional career in the public education sector in Singapore.
Clive holds an Honours Degree in Mechanical and Production Engineering
from the Nanyang Technological University and a Post-Graduate Diploma in
Education from the National Institute of Education. He also attended the
University of Technology, Sydney on an academic exchange programme.
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BOARD OF DIRECTORS AND KEY MANAGEMENT
8
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Board of Directors (continue)
Chay Yiowmin (FCA, ACA, CVA)
Non-Executive Director
Mr. Chay Yiowmin is currently the chief executive officer of Chay Corporate
Advisory Pte. Ltd., a boutique corporate advisory firm. Yiowmin is also the
lead independent and non-executive director of Ntegrator Holdings Limited
and Mary Chia Holdings Limited. Between 2013 and 2024, Yiowmin was the
lead independent and non-executive director of UMS Holdings Ltd. Between
2013 and 2015, Yiowmin was the lead independent and non-executive
director of Advance SCT Limited, between 2018 and 2023, Yiowmin was the
chairman and lead independent and non-executive director of Metech
International Limited, between 2021 and 2023, Yiowmin was the lead
independent and non-executive director of Raffles Infrastructure Holdings
Limited and between 2019 and 2020, Yiowmin was a non-executive director
of Libra Group Limited.
Since graduating in 1998, Yiowmin has accumulated many years of public
accounting experience in Singapore and the United Kingdom with a number
of
reputable
international
accounting
firms,
including
PricewaterhouseCoopers LLP, Deloitte and Touche LLP, Moore Stephens
LLP and BDO LLP, the latter of which he was the advisory partner heading
the Corporate Finance Practice from 2012 to 2019. Prior to joining BDO LLP,
Yiowmin was an assurance partner from 2010 to 2012, specialising in
financial services and shipping.
Yiowmin holds a Bachelor of Accountancy (Hons) and a Master of Business
from Nanyang Technological University, and a Master of Business
Administration from the University of Birmingham. Yiowmin is also a Fellow
Chartered Accountant (FCA Singapore) of the Institute of Singapore
Chartered Accountants (ISCA), an Associate Chartered Accountant (ACA) of
the Institute of Chartered Accountants in England and Wales (ICAEW), and
a Chartered Valuer and Appraiser (CVA) of the Institute of Valuers and
Appraisers of Singapore (IVAS). Yiowmin currently sits on the Singapore
steering committee of the Professional Risk Managers’ International
Association (PRMIA), and the Standards and Technical Committee of IVAS,
the latter of which Yiowmin is also a programme instructor. Yiowmin is also
an associate lecturer with the Singapore University of Social Sciences
(SUSS) teaching financial statements analysis and valuation.
Yiowmin is also an active Grassroots Leader, serving as chairman of the
Sengkang Central Citizens Consultative Committee, treasurer of the
Fernvale Community Development and Welfare Fund, assistant treasurer
with the Fernvale Citizens Consultative Committee and the Kebun Baru
Citizens Consultative Committee. Yiowmin is also a member of the Kebun
Baru Inter-Racial and Religious Confidence Circles. Yiowmin was awarded
the Pingat Bakti Masyarakat (Public Service Medal) (PBM) by the President
of the Republic of Singapore on 9 August 2016.
For personal use only
BOARD OF DIRECTORS AND KEY MANAGEMENT
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8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Board of Directors (continue)
Charles Mac
Non-Executive Director
Charles was appointed Non-Executive Director in April 2016. Charles has
more than 18 years of IT corporate experience, of which 15 years in the SAP
Industry dealing with multinational companies across the Asia Pacific Region.
He has held various leadership roles for large, global multinational
companies with extensive experience across Asia Pacific in Team
Management, Quality Management, Audits, Business Development and
Contract Deliveries.
Charles previously served on the Board of ASX-listed companies, 8VI
Holdings Limited and Ennox Group Limited as Non-Executive Director.
Charles is an Australian citizen and holds a Bachelor of Computing
(Information System) from Monash University.
Key Management
Louis Chua (FCA, FCCA, FCPA)
Chief Financial Officer
Louis Chua joined 8I Holdings in April 2015 as the Company’s Chief Financial
Officer and is based in Singapore. Within the 8I Group, Louis is responsible
for risk management, corporate secretarial, controllership and treasury
duties, as well as economic strategy and financial forecasting for the
Company.
Louis is based in Singapore and has more than 20 years of assurance,
financial and commercial experience including infrastructure development,
treasury and controllership operations, group restructuring and consolidation,
tax planning and mergers and acquisitions. Before he joined 8I Holdings, he
had 9 years of experience within the offshore marine industry in Farstad
Shipping, with its holding company listed in the Oslo Stock Exchange. He
started his career in the Audit Division with Arthur Andersen (later Ernst &
Young).
Louis graduated from University of Queensland with a Bachelor of Commerce
(Finance). He is a Fellow Chartered Accountant (FCA Singapore) of the
Institute of Singapore Chartered Accountants (ISCA), a Fellow Certified
Chartered Accountant (FCCA) of The Association of Chartered Certified
Accountants (ACCA), and a Fellow Certified Practising Accountant (FCPA)
of Certified Practising Accountant Australia (CPA Australia).
For personal use only
CORPORATE GOVERNANCE STATEMENT
31 March 2024
10
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Introduction
8I Holdings Limited (the “Company”) and its Board has adopted
comprehensive systems of control and accountability as the basis
for the administration of corporate governance, which are in
effect as of 25 July 2024. The Board is committed to administering
the Company’s policies and procedures with openness and
integrity, pursuing the true spirit of corporate governance
commensurate with the Company’s needs.
To the extent applicable, the Company has adopted the ASX
Corporate Governance Council’s Corporate Governance Principles
and Recommendations (Recommendations).
In light of the Company’s size and nature, the Board considers that
the current Board is a cost effective and practical method of
directing and managing the Company. As the Company’s
activities develop in size, nature and scope, the size of the Board
and the implementation of additional corporate governance
policies and structures will be reviewed.
The Company’s main corporate governance policies and practices
as at the date of this report are detailed below. The Company’s
full Corporate Governance Plan is available in a dedicated
corporate governance information section of the Company’s
website at www.8iholdings.com.
Principle 1: Lay solid foundations for
management and oversight
Recommendation 1.1
A listed entity should disclose:
(a) the respective roles and responsibilities of its board and
management; and
(b) those matters expressly reserved to the board and those
delegated to management.
The Company has adopted a Board Charter. The Board Charter
sets out the specific responsibilities of the Board, requirements as
to the Boards composition, the roles and responsibilities of the
Chairman and Company Secretary, the establishment, operation
and management of Board Committees, Directors access to
company records and information, details of the Board’s
relationship
with
management,
details
of
the
Board’s
performance review and details of the Board’s disclosure policy.
A copy of the Company’s Board Charter is available on the
Company’s website.
The Board is responsible for the corporate governance of the
Company. The Board develops strategies for the Company,
reviews strategic objectives and monitors performance against
those
objectives.
Clearly
articulating
the
division
of
responsibilities between the Board and management will help
manage expectations and avoid misunderstandings about their
respective roles and accountabilities.
In general, the Board assumes (amongst others) the following
responsibilities:
(i)
providing leadership and setting the strategic objectives of
the Company;
(ii) appointing and when necessary replacing the Executive
Directors;
(iii) approving
the
appointment
and
when
necessary
replacement, of other senior executives;
(iv) undertaking appropriate checks before appointing a person,
or putting forward to security holders a candidate for
election, as a director;
(v) overseeing
management’s
implementation
of
the
Company’s strategic objectives and its performance
generally;
(vi) approving operating budgets and major capital expenditure
and investment;
(vii) overseeing the integrity of the company’s accounting and
corporate reporting systems including the external audit;
(viii) overseeing the company’s process for making timely and
balanced disclosure of all material information concerning
the Company that a reasonable person would expect to have
a material effect on the price or value of the Company’s
securities;
(ix) ensuring that the Company has in place an appropriate risk
management framework and setting the risk appetite within
which the board expects management to operate; and
(x) monitoring the effectiveness of the Company’s governance
practices.
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CORPORATE GOVERNANCE STATEMENT
31 March 2024
11
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Principle 1: Lay solid foundations for
management and oversight (continued)
The Company is committed to ensuring that appropriate checks
are undertaken before the appointment of a Director and has in
place written agreements with each Director which detail the
terms of their appointment.
Recommendation 1.2
A listed entity should:
(a) undertake appropriate checks before appointing a person, or
putting forward to security holders a candidate for election,
as a director; and
(b) provide security holders with all material information relevant
to a decision on whether or not to elect or re-elect a director.
Election of Board members is substantially the province of the
Shareholders in general meeting. The Board currently consists of
the two Executive Directors (each of whom is a significant
Shareholder) and two Non-Executive Directors (each of whom is
independent). As the Company’s activities develop in size, nature
and scope, the composition of the Board and the implementation
of additional corporate governance policies and structures will be
reviewed.
Nominations of new Directors are considered by the full Board. If
any vacancies arise on the Board, all directors are involved in the
search and recruitment of a replacement.
The Board has taken a view that the full Board will hold special
meetings or sessions as required. The Board is confident that this
process for selection, including undertaking appropriate checks
before appointing a person, or putting forward to security holders
a candidate for election, and review is stringent and full details of
all Directors will be provided to Shareholders in the annual report
and on the Company’s website.
All material information relevant to a decision on whether or not
to elect or re-elect a Director will be provided to security holders
in Section 3 of the Prospectus or a Notice of Meeting pursuant to
which the resolution to elect or re-elect a Director will be voted
on.
Recommendation 1.3
A listed entity should have a written agreement with each director
and senior executive setting out the terms of their appointment.
The Company has entered into Executive Service Agreements
with executive directors and Letters of Appointment with each
Non-Executive Director.
Recommendation 1.4
The company secretary of a listed entity should be accountable
directly to the board, through the chair, on all matters to do with
the proper functioning of the board.
The Board Charter outlines the roles, responsibility and
accountability of the Company Secretary. The Company Secretary
is accountable directly to the board, through the chair, on all
matters to do with the proper functioning of the Board.
Recommendation 1.5
A listed entity should:
(a) have and disclose a diversity policy;
(b) through its board or a committee of the board set measurable
objectives for achieving gender diversity in the composition of
its board, senior executives and workforce generally; and
(c) disclose in relation to each reporting period:
(1) the measurable objectives set for that period to achieve
gender diversity;
(2) the entity’s progress towards achieving those objectives;
and
(3) either:
(A) the respective proportions of men and women on the
board, in senior executive positions and across the
whole organisation (including how the entity has
defined “senior executive” for these purposes); or
(B) if the entity is a “relevant employer” under the
Workplace Gender Equality Act, the entity’s most
recent “Gender Equality Indicators”, as defined in and
published under that Act.
The Company has adopted a Diversity Policy. The Board values
diversity and recognises the benefits it can bring to the
organisation’s ability to achieve its goals. Accordingly, the
Company has set in place a diversity policy. This policy outlines
the Company’s diversity objectives in relation to gender, age,
cultural background and ethnicity. It includes requirements for
the Board to establish measurable objectives for achieving
diversity, and for the Board to assess annually both the objectives,
and the Company’s progress in achieving them.
The Diversity Policy provides a framework for the Company to
achieve a list of measurable objectives that encompass gender
equality. The Diversity Policy provides for the monitoring and
evaluation of the scope and currency of the Diversity Policy. The
company is responsible for implementing, monitoring and
reporting on the measurable objectives. The Diversity Policy is
available on the Corporate Governance Plan on the Company’s
website.
The Company does not discriminate on the basis of gender. The
Company is not of a relevant size to consider setting measurable
objectives for achieving gender diversity. As such the board has
not set any measurable objectives for achieving gender diversity.
Category
31 March 2024
Male
Female
Board of Directors
4
-
Senior Management
1
-
Company wide
-
1
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CORPORATE GOVERNANCE STATEMENT
31 March 2024
12
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Principle 1: Lay solid foundations for
management and oversight (continued)
The Senior Management refer to those persons having authority
and responsibility for planning, directing, controlling the activities
of the consolidated entity, directly or indirectly, of the
consolidated entity.
Recommendation 1.6
A listed entity should:
(a) have and disclose a process for periodically evaluating the
performance of the board, its committees and individual
directors; and
(b) disclose in relation to each reporting period, whether a
performance evaluation was undertaken in the reporting
period in accordance with that process.
The Company is not of a relevant size to consider formation of a
Nomination Committee. The responsibilities of the Nomination
Committee are currently carried out by the board and evaluating
the performance of the Board, any committees and individual
directors on an annual basis. The Board may do so with the aid of
an independent advisor. The process for this can be found in
Schedule 5 of the Company’s Corporate Governance Plan.
The Company has established the Nomination Committee
Charter, which requires disclosure as to whether or not
performance evaluations were conducted during the relevant
reporting period.
During the year a performance evaluation of the Executive
Chairman and Executive Director was undertake by the non-
executive directors. The performance of the board, its
committees and the individual directors is assessed on an on-
going basis by the Chairman of the Board.
Recommendation 1.7
A listed entity should:
(a) have and disclose a process for periodically evaluating the
performance of its senior executives at least once every
reporting period; and
(b) disclose for each reporting period whether a performance
evaluation has been undertaken in accordance with that
process during or in respect of that period.
The responsibilities of the Nomination Committee are currently
carried out by the board, which includes periodically evaluating
the performance of senior executives. The process is disclosed in
Schedule 6 of the Corporate Governance Plan.
During FY2024, over a series of informal discussions, the executive
directors reviewed each senior executive. All senior executives’
performances met performance criteria.
Principle 2: Structure the board to add value
Recommendation 2.1
The board of a listed entity should:
(a) have a nomination committee which:
(i) has at least three members, a majority of whom are
independent directors; and
(ii) is chaired by an independent director,
and disclose:
(iii) the charter of the committee;
(iv) the members of the committee; and
(v) as at the end of each reporting period, the number of
times the committee met throughout the period and
the individual attendances of the members at those
meetings; or
(b) if it does not have a nomination committee, disclose that fact
and the processes it employs to address board succession
issues and to ensure that the board has the appropriate
balance of skills, experience, independence and knowledge of
the entity to enable it to discharge its duties and
responsibilities effectively.
The Company does not comply with Principle 2.1. The Company is
not of a relevant size to consider formation of a nomination
committee to deal with the selection and appointment of new
Directors and as such a nomination committee has not been
formed.
Nominations of new Directors are considered by the full Board. If
any vacancies arise on the Board, all directors are involved in the
search and recruitment of a replacement. The Board has taken a
view that the full Board will hold special meetings or sessions as
required. The Board is confident that this process for selection,
including undertaking appropriate checks before appointing a
person, or putting forward to security holders a candidate for
election, and review is stringent and full details of all Directors will
be provided to Shareholders in the annual report and on the
Company’s website.
Recommendation 2.2
A listed entity should have and disclose a board skill matrix setting
out the mix of skills and diversity that the board currently has or
is looking to achieve in its membership.
The Company identifies the following as the main areas of skills
required by the board to successfully service the Company. The
directors have been measured to these areas in the skills matrix:
Number of
Directors that
meet the skill
Executive and Non-Executive experience
4
Industry experience and knowledge
4
Leadership
4
Corporate governance & Risk Management
4
Strategic thinking
4
Desired behavioural competencies
4
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CORPORATE GOVERNANCE STATEMENT
31 March 2024
13
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Principle 2: Structure the board to add value
(continued)
Number of
Directors that
meet the skill
Geographic experience
4
Capital Markets experience
3
Subject matter expertise
- accounting
3
- capital management
3
- corporate financing
3
- industry taxation
1
- risk management
4
- legal
3
- IT expertise
1
The Board Charter requires the disclosure of each board
member’s qualifications and expertise as set out in the Company’s
Board skills matrix. Full details as to each director and senior
executive’s relevant skills and experience are available in the
Annual Report and the Company’s Website.
Recommendation 2.3
A listed entity should disclose:
(a) the names of the directors considered by the board to be
independent directors;
(b) if a director has an interest, position, association or
relationship of the type described in Box 2.3 of the ASX
Corporate Governance Principles and Recommendation (3rd
Edition), but the board is of the opinion that it does not
compromise the independence of the director, the nature of
the interest, position, association or relationship in question
and an explanation of why the board is of that opinion; and
(c) the length of service of each director.
The Board Charter provides for the disclosure of the names of
Directors considered by the board to be independent. Currently
two members of the Board are considered independent being Mr
Yiowmin Chay and Mr Charles Mac;
The Board Charter requires Directors to disclose their interest,
positions, associations and relationships and requires that the
independence of Directors is regularly assessed by the board in
light of the interests disclosed by Directors. Details of the
Directors interests, positions associations and relationships are
provided in the Annual Report; and
The Board Charter provides for the determination of the
Directors’ terms and requires the length of service of each
Director to be disclosed. The length of service of each Director is
as follows:
•
Mr Ken Chee appointed on 17 May 2014
•
Mr Clive Tan appointed on 17 May 2014
•
Mr Yiowmin Chay appointed on 22 Sep 2014
•
Mr Charles Mac appointed on 26 Apr 2016
Recommendation 2.4
A majority of the board of a listed entity should be independent
directors.
The Board considers that only two out of the four Directors are
independent directors in accordance with the ASX Corporate
Governance Council’s definition of independence:
•
Mr. Chay Yiowmin (Independent Non-Executive Director)
•
Mr. Charles Mac (Independent Non-Executive Director)
The Board considers that the Company is not currently of a size,
nor are its affairs of such complexity to justify the expense of the
appointment of additional independent non-executive Directors.
The Board believes that the individuals on the Board can make,
and do make, quality and independent judgements in the best
interests of the Company on all relevant issues. Directors having
a conflict of interest in relation to a particular item of business
must absent themselves from the Board meeting before
commencement of discussion on the topic.
Recommendation 2.5
The chair of the board of a listed entity should be an independent
director and, in particular, should not be the same person as the
CEO of the entity.
Mr. Chee currently holds the position of Executive Chairman
which does not comply with the ASX Corporate Governance
Council’s recommendations.
While the Board considers the importance of a division of
responsibility and independence at the head of the Company, the
existing structure is considered appropriate and provides a
unified leadership structure. Mr. Chee has been the major force
behind the establishment of the 8I Group and its current growth
and direction. The Board considers that, at this stage of the
Company’s development, he is able to bring quality and
independent judgement to all relevant issues, and the Company
benefits from his long standing experience of its operations and
business relationships.
Recommendation 2.6
A listed entity should have a program for inducting new directors
and
providing
appropriate
professional
development
opportunities for continuing directors to develop and maintain
the skills and knowledge needed to perform their role as a
director effectively.
The Board Charter states that a specific responsibility of the Board
is to procure appropriate professional development opportunities
for Directors. The Remuneration Committee is responsible for the
approval and review of induction and continuing professional
development programs and procedures for Directors to ensure
that they can effectively discharge their responsibilities.
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CORPORATE GOVERNANCE STATEMENT
31 March 2024
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8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Principle 3: Act ethically and responsibly
Recommendation 3.1
A listed entity should articulate and disclose its values.
The Company has statement of values which can be viewed on its
website.
Recommendation 3.2
A listed entity should:
(a) have and disclose a code of conduct for its directors, senior
executives and employees; and
(b) ensure that the board or a committee of the board is informed
of any material breaches of that code.
The Board is committed to the establishment and maintenance of
appropriate ethical standards.
The Corporate Code of Conduct applies to the Company’s
directors, senior executives and employees. The Company’s
Corporate Code of Conduct is available in the Corporate
Governance plan which is on the Company’s website.
Recommendation 3.3
A listed entity should:
(a) have and disclose a whistleblower policy; and
(b) ensure that the board or a committee of the board is informed
of any material incidents reported under that policy.
The Company has implemented a whistleblower policy which can
be viewed on its website and the Board is informed when any
material incidents are reported under the policy.
Recommendation 3.4
A listed entity should:
(a) have and disclose an anti-bribery and corruption policy; and
(b) ensure that the board or a committee of the board is informed
of any material breaches of that policy.
The Company has implemented an anti-bribery and corruption
policy which can be viewed on its website and the Board is
informed when any material incidents are reported under the
policy.
Principle 4: Safeguard integrity in financial
reporting
Recommendation 4.1
The board of a listed entity should:
(a) have an audit committee which:
(i) has at least three members, all of whom are non-
executive directors and a majority of whom are
independent directors; and
(ii) is chaired by an independent director, who is not the chair
of the board,
and disclose:
(iii) the charter of the committee;
(iv) the relevant qualifications and experience of the
members of the committee; and
(v) in relation to each reporting period, the number of times
the committee met throughout the period and the
individual attendances of the members at those meetings;
or
(b) if it does not have an audit committee, disclose that fact and
the processes it employs that independently verify and
safeguard the integrity of its financial reporting, including the
processes for the appointment and removal of the external
auditor and the rotation of the audit engagement partner.
The Company is not currently of a size, nor are its affairs of such
complexity to justify the formation of audit committee to satisfy
this recommendation. The Board believes that the individuals on
the Board can make, and do make, quality and informed
judgements in the best interests of the Company on all relevant
issues.
The Board will carry out the duties that would ordinarily be
assigned to that committee under the written terms of reference
for that committee, including but not limited to, monitoring and
reviewing any matters of significance affecting financial reporting
and compliance, the integrity of the financial reporting of the
Company, the Company's internal financial control system and
risk management systems and the external audit function. The
Board from time to time will review the scope, performance and
fees of the external auditors and the rotation of the audit
engagement partner.
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CORPORATE GOVERNANCE STATEMENT
31 March 2024
15
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Principle 4: Safeguard integrity in financial
reporting (continued)
Recommendation 4.2
The board of a listed entity should, before it approves the entity’s
financial statements for a financial period, receive from its CEO
and CFO a declaration that the financial records of the entity have
been properly maintained and that the financial statements
comply with the appropriate accounting standards and give a true
and fair view of the financial position and performance of the
entity and that the opinion has been formed on the basis of a
sound system of risk management and internal control which is
operating effectively.
The Board ensure that before they approve the entity’s financial
statements for a financial period, the Executive Directors have
declared that in their opinion the financial records of the entity
have been properly maintained and that the financial statements
comply with the appropriate accounting standards and give a true
and fair view of the financial position and performance of the
entity and that the opinion has been formed on the basis of a
sound system of risk management and internal control which is
operating effectively.
Recommendation 4.3
A listed entity should disclose its process to verify the integrity of
any periodic corporate report it releases to the market that is not
audited or reviewed by an external auditor.
Any periodic corporate reports are prepared by the accountant,
reviewed by the CFO and presented to the Board for sign off prior
to release to the market.
Principle 5: Make timely and balanced disclosure
Recommendation 5.1
A listed entity should have and disclose a written policy for
complying with its continuous disclosure obligations under listing
rule 3.1.
The Board Charter provides details of the Company’s disclosure
policy. In addition, Schedule 7 of the Corporate Governance Plan
is entitled ‘Disclosure-Continuous Disclosure’ and details the
Company’s disclosure requirements as required by the ASX Listing
Rules and other relevant legislation.
The Board Charter and Schedule 7 of the Corporate Governance
Plan which is available at the Company’s website.
Recommendation 5.2
A listed entity should ensure that its board receives copies of all
material market announcements promptly after they have been
made.
All material market announcements are circulated to the board
via email.
Recommendation 5.3
A listed entity that gives a new and substantive investor or analyst
presentation should release a copy of the presentation materials
on the ASX Market Announcements Platform ahead of the
presentation.
Results, presentations and transcripts of the Chairman’s address
at annual general meetings are released on the ASX Market
Announcements Platform as soon as practically possible after the
conclusion of the general meeting. Other presentations to new or
substantive shareholders or investor analysts are released on the
ASX Market Announcements Platform prior to the presentation.
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CORPORATE GOVERNANCE STATEMENT
31 March 2024
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8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Principle 6: Respect the rights of security holders
Recommendation 6.1
A listed entity should provide information about itself and its
governance to investors via its website.
The Company has a comprehensive website found at
www.8iholdings.com, where there are links to directors,
corporate governance, plans and policies. Also included are links
to all financial reports, announcements, notice of meetings and
presentations and any external media commentary made on the
Company.
Recommendation 6.2
A listed entity should design and implement an investor relations
program to facilitate effective two-way communication with
investors.
The Company has adopted a Shareholder Communications
Strategy which aims to promote and facilitate effective two-way
communication with investors. The Strategy outlines a range of
ways in which information is communicated to shareholders. The
Shareholder Communications Strategy can be found in the
Corporate Governance plan under schedule 11 which is available
at the Company’s website.
Recommendation 6.3
A listed entity should disclose the policies and processes it has in
place to facilitate and encourage participation at meetings of
security holders.
The Shareholder Communication Strategy, which can be found in
schedule 11 of the Corporate Governance Plan which is available
on the Company’s website.
Recommendation 6.4
A listed entity should ensure that all substantive resolutions at a
meeting of security holders are decided by a poll rather than by a
show of hands.
The company decides all resolutions at a meeting of security
holders by a poll.
Recommendation 6.5
A listed entity should give security holders the option to receive
communications from, and send communications to, the entity
and its security registry electronically.
Security holders can register with the Company to receive email
notifications when an announcement is made by the Company to
the ASX. Shareholders queries should be referred to the Company
Secretary at first instance.
Principle 7: Recognise and manage risk
Recommendation 7.1
The board of a listed entity should:
(a) have a committee or committees to oversee risk, each of
which:
(i) has at least three members, a majority of whom are
independent directors; and
(ii) is chaired by an independent director,
and disclose:
(iii) the charter of the committee;
(iv) the members of the committee; and
(v) as at the end of each reporting period, the number of
times the committee met throughout the period and the
individual attendances of the members at those meetings;
or
(b) if it does not have a risk committee or committees that satisfy
(a) above, disclose that fact and the process it employs for
overseeing the entity’s risk management framework.
The Board has established an Audit and Risk Committee that has
assumed the role of a separate Risk Management Committee and
which operates under the Audit and Risk Committee Charter
approved by the Board. The Board is ultimately responsible for
risk oversight and risk management. Discussions on the
recognition and management of risks were also considered by the
Board. Further details of the committee’s activities are provided
in the Company’s Annual Report.
Recommendation 7.2
The board or a committee of the board should:
(a) review the entity’s risk management framework with
management at least annually to satisfy itself that it continues
to be sound, to determine whether there have been any
changes in the material business risks the entity faces and to
ensure that they remain within the risk appetite set by the
board; and
(b) disclose in relation to each reporting period, whether such a
review has taken place.
The Company process for risk management and internal
compliance includes a requirement to identify and measure risk,
monitor the environment for emerging factors and trends that
affect these risks, formulate risk management strategies and
monitor the performance of risk management systems. Schedule
8 of the Corporate Governance Plan, which can be found on the
Company’s website, is entitled ‘Disclosure - Risk Management’
and details the Company’s disclosure requirements with respect
to the risk management review procedure and internal
compliance and controls.
The Board Charter requires in relation to the reporting period
relevant to that Committee, to disclose the number of times that
Committee met throughout the period, and the individual
attendances of the members at those Committee meetings.
Details of the Committee meetings are provided in the Company’s
Annual Report. There have been no changes to the risk
management framework during the financial period.
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CORPORATE GOVERNANCE STATEMENT
31 March 2024
17
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Principle 7: Recognise and manage risk
(continued)
Recommendation 7.3
A listed entity should disclose:
(a) if it has an internal audit function, how the function is
structured and what role it performs; or
(b) if it does not have an internal audit function, that fact and the
processes it employs for evaluating and continually improving
the effectiveness of its risk management and internal control
processes.
The Company does not currently have an internal audit function.
Given the size of the Company, no internal audit function is
currently considered necessary. The Company’s Management
periodically undertakes an internal review of financial systems
and processes and where systems are considered to require
improvement these systems are developed. The Board also
considers external reviews of specific areas and monitors the
implementation of system improvements.
Recommendation 7.4
A listed entity should disclose whether, it has any material
exposure to economic, environmental and social sustainability
risks and, if it does, how it manages or intends to manage those
risks.
The Audit and Risk Committee Charter details the Company’s risk
management systems which assist in identifying and managing
potential or apparent business, economic, environmental and
social sustainability risks (if appropriate). Review of the
Company’s risk management framework is conducted at least
annually and reports are continually created by management on
the efficiency and effectiveness of the Company’s risk
management framework and associated internal compliance and
control procedures.
Principle 8: Remunerate fairly and responsibly
Recommendation 8.1
The board of a listed entity should:
(a) have a remuneration committee which:
(i) has at least three members, a majority of whom are
independent directors; and
(ii) is chaired by an independent director,
and disclose:
(iii) the charter of the committee;
(iv) the members of the committee; and
(v) as at the end of each reporting period, the number of
times the committee met throughout the period and the
individual attendances of the members at those meetings;
or
(b) if it does not have a remuneration committee, disclose that
fact and the processes it employs for setting the level and
composition of remuneration for directors and senior
executives and ensuring that such remuneration is
appropriate and not excessive.
The Company has a Remuneration Committee which is made up
by Mr Charles Mac as Chairman, Mr Yiowmin Chay and Mr Clive
Tan. The committee is made up of a majority of independent
directors and is chaired by one of the independent directors and
is therefore compliant with recommendation 8.1 (a)(i) and(ii).
The Company has adopted The Remuneration Committee
Charter. The Remuneration Committee Charter outlines the roles
and responsibilities of the Remuneration Committee and provides
that:
(i) The Remuneration Committee comprises of at least three
Directors, the majority of whom are independent non-
executive Directors;
(ii) The Remuneration Committee must be chaired by an
independent Director who is appointed by the Board.
(iii) The Remuneration Committee Charter is available in the
Corporate Governance Plan which is available on the
Company’s website;
(iv) The Board Charter requires disclosure of the members of the
Committee. Details of the current members are provided in
the Annual Report; and
(v) The Board Charter requires each Committee in relation to the
reporting period relevant to that Committee, to disclose the
number of times that Committee met throughout the period,
and the individual attendances of the members at those
Committee meetings. Details of the Committee meetings will
be provided in the Company’s Annual Report.
Remuneration Committee members
Details of attendance at meetings up to 31 March 2024 are set out
below.
Director Name
Held
Attended
Charles Mac (Chair)
1
1
Clive Tan Che Koon
1
1
Chay Yiowmin
1
1
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CORPORATE GOVERNANCE STATEMENT
31 March 2024
18
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Principle 8: Remunerate fairly and responsibly
(continued)
Recommendation 8.2
A listed entity should separately disclose its policies and practices
regarding the remuneration of non-executive directors and the
remuneration of executive directors and other senior executives.
The Remuneration Committee Charter outlines the Company’s
policies and practices regarding the remuneration of non-
executive, executive and other senior directors.
The remuneration of any Executive Director will be decided by the
Board following the recommendation of the Remuneration
Committee, without the affected Executive Director participating
in that decision-making process.
The Constitutions provide that the Non-Executive Directors will be
paid by way of remuneration for their services as Directors a sum
not exceeding such fixed sum per annum pursuant to a resolution
passed at a general meeting of the Company. Until a different
amount is determined, the amount of the remuneration is
S$200,000 per annum.
In addition, subject to any necessary Shareholder approval, a
Director may be paid fees or other amounts as the Directors
determine where a Director performs special duties or otherwise
performs services outside the scope of the ordinary duties of a
Director (e.g. non-cash performance incentives such as options).
Directors are also entitled to be paid reasonable travel and other
expenses incurred by them in the course of the performance of
their duties as Directors.
The Remuneration Committee reviews and approves the
Company’s remuneration policy in order to ensure that the
Company is able to attract and retain executives and Directors
who will create value for Shareholders, having regard to the
amount considered to be commensurate for an entity of the
Company’s size and level of activity as well as the relevant
Directors’ time, commitment and responsibility.
The Board is also responsible for reviewing any employee
incentive and equity-based plans including the appropriateness of
performance hurdles and total payments proposed.
Recommendation 8.3
A listed entity which has an equity-based remuneration scheme
should:
(a) have a policy on whether participants are permitted to enter
into transactions (whether through the use of derivatives or
otherwise) which limit the economic risk of participating in
the scheme; and
(b) disclose that policy or a summary of it.
The Company had obtained its shareholders’ approval on the
creation of an equity-based remuneration scheme. The
Company’s full Employee Share Plan is available in the Company’s
website at www.8iholdings.com.
The Board has adopted a policy that sets out the guidelines on the
sale and purchase of securities in the Company by its key
management personnel (i.e. Directors and, if applicable, any
employees reporting directly to the Executive Directors). The
policy generally provides that the written acknowledgement of
the Executive Chairman (or the Board in the case of the Executive
Chairman) must be obtained prior to trading.
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CORPORATE GOVERNANCE STATEMENT
31 March 2024
19
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Principle 9: Additional Recommendations that
apply only in certain cases
Recommendation 9.1
A listed entity with a director who does not speak the language in
which board or security holder meetings are held or key corporate
documents are written should disclose the processes it has in
place to ensure the director understands and can contribute to
the discussions at those meetings and understands and can
discharge their obligations in relation to those documents.
Not Applicable
Recommendation 9.2
A listed entity established outside Australia should ensure that
meetings of security holders are held at a reasonable place and
time.
Meetings of security holders are held at the Company’s head
office in Singapore. In addition, where possible the Company
provide security holders with the option to attend the meeting via
electronic/online facilities.
Recommendation 9.3
A listed entity established outside Australia, and an externally
managed listed entity that has an AGM, should ensure that its
external auditor attends its AGM and is available to answer
questions from security holders relevant to the audit.
The Company ensures that its auditor attends each AGM and is
available to answer questions from security holders relevant to
the audit.
For personal use only
REMUNERATION REPORT
For the financial year ended 31 March 2024
20
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
This remuneration report set out information about the
remuneration of 8I Holdings Limited’s key management
personnel for the financial year ended 31 March 2024. The term
‘key management personnel’ refer to those persons having
authority and responsibility for planning, directing, controlling the
activities of the consolidated entity, directly or indirectly,
including any director (whether executive or otherwise) of the
consolidated entity.
Remuneration Policy
The remuneration policy of 8I Holdings Limited has been designed
to align director and executive objectives with shareholder and
business objectives. The board of the Company believes the
remuneration policy to be appropriate and effective in its ability
to attract and retain the best executives and directors to run and
manage the Company and Consolidated Group, as well as create
goal congruence between directors, executives and shareholders.
All remuneration paid to directors and executives is valued at the
cost to the Consolidated Group and expensed.
The names and positions of key management personnel of the
Company and of the Consolidated Entity who have held office
during the financial year are:
Chee Kuan Tat, Ken
Executive Chairman
Clive Tan Che Koon
Executive Director
Chay Yiowmin
Non-Executive Director
Charles Mac
Non-Executive Director
Louis Chua Chun Woei
Chief Financial Officer;
Chief Risk Officer;
and Company Secretary (Australia)
Non-Executive Directors’ remuneration
The Constitution and the ASX Listing Rules specify that the
aggregate remuneration of Non-Executive Directors shall be
determined from time to time by shareholders in general
meeting. Total remuneration for all Non-Executive Directors, last
voted upon by shareholders in 2023, is not to exceed $200,000
per annum. Directors’ fees cover all main board activities and
membership of committees if applicable.
Non-Executive Directors do not receive any retirement benefits.
Executive remuneration
Remuneration for executives is set out in employment
agreements. Details of the employment agreement with
Executive Directors are provided below.
Executive
Directors
may
receive
performance-related
compensation but do not receive any retirement benefits, other
than statutory Central Provident Fund (CPF) contribution.
Assessing performance
The Board is responsible for assessing performance against Key
Performance Indicators (KPIs) and determining the Short-term
Incentives (STI) and Long-term Incentive (LTI) to be paid. To assist
in this assessment, the Board may request detailed reports on
performance from management and market share.
The Group does not have any formal bonus scheme in place. The
Group does not have any ongoing commitment to pay bonuses.
Long-term incentive
Long-term Incentives (LTI) may be provided to key management
personnel in the form of Share Plans over ordinary shares of the
Company. LTI are considered to promote continuity of
employment and provide additional incentive to recipients to
increase shareholder wealth. Share Plans may only be issued to
Directors subject to approval by shareholders in general meeting.
Service Agreements
Remuneration and other terms of employment for the Executive
Directors and other Key Management Personnel are formalized in
a service agreement. For Non-Executive Directors, these terms
are set out in a Letter of Appointment. The major provisions of
the agreements relating to Directors’ remuneration as at date of
this report are set out below.
Name
Base Salary(1)
Fees
Chee Kuan Tat, Ken
S$142,800 p.a.
S$nil
Clive Tan Che Koon
S$214,200 p.a.
S$nil
Chay Yiowmin
S$nil
S$40,800 p.a.
Charles Mac
S$nil
S$40,800 p.a.
* There are no fixed term nor notice period in the Directors’ service
agreements
(1) Excluding employer’s Central Provident Fund (CPF) contribution
For personal use only
REMUNERATION REPORT
For the financial year ended 31 March 2024
21
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Details of Remuneration
A breakdown showing the level and mix of each Director’s and Key Management Personnel’s remuneration for the financial year ended 31
March 2024 is set out below:
_______Short-term_______
Post-employment
Name of Directors
Salary
S$’000
Bonus
S$’000
Directors’ Fee
S$’000
CPF Contribution
S$’000
Total
S$’000
Executive Directors
Chee Kuan Tat, Ken
Remuneration of Company
118
-
-
14
132
Remuneration of a subsidiary
(discontinued operations)
78
-
-
8
86
Clive Tan Che Koon
Remuneration of Company
176
-
-
14
190
Remuneration of a subsidiary
(discontinued operations)
-
-
18
-
18
Non-executive Directors
Chay Yiowmin
Remuneration of Company
-
-
34
-
34
Charles Mac
Remuneration of Company
-
-
34
-
34
___Short-term___
Post-employment
Name of Key Management
Personnel
Designation
Salary
%
Bonus
%
CPF Contribution
%
Total
%
S$150,000 to below S$250,000
Louis Chua Chun Woei
Chief Financial Officer;
Chief Risk Officer; and
Company Secretary (Australia)
87
5
8
100
The total remuneration of each Key Management Personnel has not been disclosed in dollar terms given the sensitivity of remuneration
matters and to maintain the confidentiality of the remuneration packages of these Key Management Personnel.
The total remuneration of the top five key executives (who are not directors of the Company) is S$607,739 for the financial year ended 31
March 2024 (2021: S$886,383).
There were no terminations, retirement or post-employment benefits granted to Directors and Key Management Personnel other than the
standard contractual notice period termination payment in lieu of service for the financial year ended 31 March 2024 and the prevailing
norm of retrenchment benefit payment of 2 weeks salary per year of service as stated in Ministry of Manpower’s website.
No employee whose remuneration exceeded S$50,000 during the financial year is an immediate family member of any of the members of
the Board. Apart from disclosed elsewhere in this report, the Company did not provide any equity compensation to Directors or executives
during the financial year ended 31 March 2024.
The Company also reimburses validly incurred business expenses of Directors and Key Management Personnel.
Share-based remuneration
No options over ordinary shares in the Company were granted as compensation to each key management person during the reporting
period.
For personal use only
REMUNERATION REPORT
For the financial year ended 31 March 2023
22
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Other Information
There were no loans made to any Key Management Personnel
during the financial year or outstanding at financial year ended.
Apart from disclosed elsewhere in this report, there were no
transactions with Key Management Personnel during the financial
year. During the financial year, the Remuneration Committee
reviewed and approved the Company’s remuneration policy.
Directors Meetings
Since the beginning of the financial year, five meetings of
directors were held. Attendances by each director during the
period were as follows:
DIRECTORS' MEETINGS
DIRECTORS
ELIGIBLE TO ATTEND
ATTENDED
Chee Kuan Tat, Ken
4
4
Clive Tan Che Koon
4
4
Chay Yiowmin
4
4
Charles Mac
4
4
Environmental Issues
The
Company’s
operations
comply
with
all
relevant
environmental laws and regulations, and have not been subject
to any actions by environmental regulators.
For personal use only
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2024
23
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
The directors present their statement to the members together with the audited consolidated financial statements of 8I Holdings Limited
(the “Company”) and its subsidiaries (the “Group”) for the financial year ended 31 March 2024 and the statement of financial position of
the Company as at 31 March 2024 and statement of changes in equity of the Company for the financial year ended 31 March 2024.
In the opinion of the directors,
(a)
the consolidated financial statements of the Group and the statement of financial position and statement of changes in equity of the
Company are drawn up so as to give a true and fair view of the financial position of the Group and of the Company as at 31 March
2024 and the financial performance, changes in equity and cash flows of the Group and changes in equity of the Company for the
year ended on that date, and
(b)
at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they fall due.
Directors
The directors of the Company in office at the date of this statement are as follows:
Mr Chee Kuan Tat, Ken
Mr Clive Tan Che Koon
Mr Charles Mac
Mr Chay Yiowmin
Arrangements to enable directors to acquire shares and debentures
Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose object was to enable
the directors of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body
corporate.
Directors’ interests in shares or debentures
According to the register of directors’ shareholdings kept by the Company under section 164 of the Singapore Companies Act 1967 (the
“Act”), none of the directors holding office at the end of the financial year had any interest in the shares or debentures of the Company or
its related corporations, except as follows:
Holdings registered in name of
director or nominee
At 31.3.2024
At 1.4.2023
8I Holdings Limited
(No. of ordinary shares)
Mr Chee Kuan Tat, Ken
86,885,009
86,885,009
Mr Clive Tan Che Koon
65,140,000
65,140,000
There was no change in any of the above-mentioned interests in the Company between the end of the financial year and date of this
statement.
Except as disclosed in this statement, no director who held office at the end of the financial year had interests in shares, shares options,
warrants or debentures of the Company, or of related corporations not yet disposed, either at the beginning of the financial year, or date
of appointment if later, or during the financial year.
For personal use only
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2024
24
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Independent Auditor
The independent auditor, KLP LLP, has expressed its willingness to accept re-appointment.
On behalf of the directors
Chee Kuan Tat, Ken
Director
Clive Tan Che Koon
Director
25 July 2024
For personal use only
25
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF 8I HOLDINGS LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of 8I Holdings Limited (the “Company”) and its subsidiaries (the “Group”), which comprise the
consolidated statement of financial position of the Group and the statement of financial position of the Company as at 31 March 2024, and
the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash
flows of the Group and the statement of changes in equity of the Company for the year then ended, and notes to the financial statements,
including material accounting policy information.
In our opinion, the accompanying consolidated financial statements of the Group and the statement of financial position and statement of
changes in equity of the Company are properly drawn up in accordance with the provisions of the Companies Act 1967 (the “Act”) and
Financial Reporting Standards in Singapore (“FRSs”) so as to give a true and fair view of the consolidated financial position of the Group and
the financial position of the Company as at 31 March 2024 and of the consolidated financial performance, consolidated changes in equity
and consolidated cash flows of the Group and the changes in equity of the Company for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
the Group in accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional Conduct and Ethics for Public
Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial
statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements
for the financial year ended 31 March 2024. These matters were addressed in the context of our audit of the financial statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
For personal use only
26
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF 8I HOLDINGS LIMITED (continued)
Key Audit Matters (continued)
Key Audit Matter
How our audit addressed the Key Audit Matter
Carrying amount and impairment of investment in subsidiaries
(Refer to Note 2.6, 2.7 and 14 to the financial statements)
The Company carries its investment in subsidiaries at cost adjusted for
impairment losses. As at 31 March 2024, the carrying amount of
investment in subsidiaries amounted to S$730,769. During the financial
year 2024, the Company recognised an impairment loss of S$6,479,469.
We consider the carrying amount and impairment of investment in
subsidiaries to be a significant key audit matter as the amount is
significant to the Company. Moreover, the identification of impairment
indicators, the estimation of recoverable amount and the determination
of impairment loss requires the use of significant judgements and
assumptions by management.
We assessed the appropriateness of management’s process
by which indicators of impairment were identified.
Where impairment had been identified in the investment in
subsidiaries, our procedures included:
•
considering the latest developments in relation to the
subsidiaries’
financial
position
and
financial
performance;
•
examining the recoverable amounts determined by
management, including the appropriateness of the
method and key assumptions used;
•
challenging management’s assumptions;
•
testing the adequacy of impairment loss; and
•
considered the adequacy of disclosures in the financial
statements.
Based on procedures performed above, we have assessed
that the provision for impairment loss is appropriate.
Valuation of financial instruments held at fair value
(Refer to Note 3.1(c), 11, 16 and 24(e) to the financial statements)
Financial instruments held by the Group at fair value include equity
securities designated at fair value.
The Group’s financial instruments are predominantly valued using
quoted market prices (‘Level 1’). The valuations of ‘Level 3’ financial
instruments (unquoted financial assets measured at fair value through
other comprehensive income) rely on significant unobservable inputs.
Accordingly, we have involved our valuation specialists in assessing the
reasonableness of the significant unobservable inputs used by the Group.
We considered the overall valuation of financial instruments (Level 1 and
3) to be a key audit matter given the financial significance to the Group,
the nature of the underlying financial instruments and the high degree of
judgement involved in the estimation of fair value.
In the current financial year 2024, the Group recognised fair value gain
on financial assets at FVPL amounting to S$976,919. There were no
changes to fair value of financial assets at FVOCI.
Our procedures included:
•
obtain quoted market prices of listed equity securities
from independent sources to compare the fair values
of Level 1 financial instruments determined by
management;
•
working with our valuation specialists, we assessed the
reasonableness of the methodologies used and the
assumptions made by management for financial
instruments valuations with significant unobservable
valuation inputs (Level 3 financial instruments); and
•
performed tests of source data and inputs, in light of
available market data and industry trends.
Based on procedures performed above, we have assessed
that the fair value measurements of Level 1 and Level 3
financial instruments held at fair value were reasonable.
The fair value disclosures in the financial statements are
adequate.
For personal use only
27
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF 8I HOLDINGS LIMITED (continued)
Key Audit Matters (continued)
Key Audit Matter
How our audit addressed the Key Audit Matter
Existence and classification of investments carried out on behalf by an
individual
(Refer to Note 11, 12(d) and 12(e) to the financial statements)
During the financial year, the Company entered into a profit-sharing
agreement with an individual, where the individual would make
investments on behalf of the Company. Based on the agreement, the
Company advanced an amount of S$269,520 to the individual to carry out
investment activities on behalf of the Company. The individual placed the
entire amount advanced into an online investment platform. The amount
was initially classified as ‘Other Receivables’ and was reclassified to
‘Financial assets, at FVPL’. Due to the high risk nature of the investment
and inadequate risk management procedures in place, the trading
conducted on the online investment platform resulted in a realised loss
of S$269,520 which has been recognised in the Statement of
Comprehensive Income.
We consider the ownership, carrying amount and impairment of the
investment to be a significant key audit matter due to the complex
arrangement and transaction as disclosed in Note 11 and 12.
Our procedures included:
•
obtain the profit-sharing agreement entered into by
the Company and the individual and determined the
substance of the agreement such that whether it is an
advance or an investment;
•
review and corroborate management’s assessment on
the classification of the investment balance;
•
interview the individual and management on the flow
of event leading to the trading loss in its entirety,
rationale of investment and due diligence carried out;
and
•
communicate our findings to the Independent Board
of Directors.
Based on procedures performed above, we have assessed
that the existence and classification of investments carried
out on behalf by the individual is appropriate.
For personal use only
28
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF 8I HOLDINGS LIMITED (continued)
Other Information
Management is responsible for the other information contained in the annual report. The other information comprises the Chairman’s
message, operations and financial review, Corporate Governance statement, remuneration report and additional information included in
the annual report but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Directors for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of
the Act and FRSs, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance
that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are
recorded as necessary to permit the preparation of true and fair financial statements and to maintain accountability of assets.
In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
The directors’ responsibilities include overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit.
We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
For personal use only
29
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF 8I HOLDINGS LIMITED (continued)
Auditor’s Responsibilities for the Audit of the Financial Statements (continued)
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout the audit.
We also: (continued)
•
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the
direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our
audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by the Company and by those subsidiary corporations
incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.
The engagement partner on the audit resulting in this independent auditor’s report is See Zhen Ni Jenny.
KLP LLP
Public Accountants and
Chartered Accountants
Singapore, 25 July 2024
For personal use only
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the financial year ended 31 March 2024
30
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Note
2024
2023
S$
S$
Continuing operations
Investment gains/(losses)
4
707,399
(1,839,664)
Cost of sales
6
(106,554)
(76,617)
Gross profit/(loss)
600,845
(1,916,281)
Other gains
5
151,474
1,000
Other income
5
985,215
1,609,447
Expenses
- Administrative expenses
6
(1,599,611)
(3,249,193)
- Other operating expenses
6
(23,113)
(50,677)
- Finance costs
(22,407)
(31,149)
Profit/(loss) before income tax
92,403
(3,636,853)
Income tax credit
8
-
3,642
Profit/(loss) from continuing operations
92,403
(3,633,211)
Discontinued operations
Loss from discontinued operations (net of tax)
27
(3,049,327)
(13,642,387)
Loss for the year
(2,956,924)
(17,275,598)
Other comprehensive income/(loss):
Items that may be reclassified subsequently to profit or loss:
- Currency translation differences arising from consolidation
161,138
(121,324)
Items that will not be reclassified subsequently to profit or loss:
- Fair value losses - financial assets, at FVOCI
16
(5,121)
(977,389)
Other comprehensive income/(loss), net of tax
156,017
(1,098,713)
Total comprehensive loss for the year
(2,800,907)
(18,374,311)
Profit/(loss) attributable to:
- Owners of the Company
- from continuing operations
92,403
(3,633,211)
- from discontinued operations
(2,293,334)
(11,296,895)
- Non-controlling interests
(755,993)
(2,345,492)
(2,956,924)
(17,275,598)
Total comprehensive profit/(loss) attributable to:
- Owners of the Company
- from continuing operations
92,403
(4,057,624)
- from discontinued operations
(2,161,365)
(11,851,004)
- Non-controlling interests
(731,945)
(2,465,683)
(2,800,907)
(18,374,311)
Earnings/(loss) per share for profit/(loss) from continuing and discontinued operations attributable to
owners of the Company ($ per share)
Basic earnings/(loss)
- From continuing operations
9
0.0003
(0.0102)
- From discontinued operations
9
(0.0065)
(0.0316)
Diluted earnings/(loss)
- From continuing operations
9
0.0003
(0.0102)
- From discontinued operations
9
(0.0065)
(0.0316)
The accompanying notes form an integral part of these financial statements.
For personal use only
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 March 2024
31
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Note
2024
2023
(As reclassified)
S$
S$
ASSETS
Current assets
Cash and cash equivalents
10
4,218,208
20,406,258
Financial assets, at FVPL
11
6,996,966
3,944,687
Trade and other receivables
12
1,291,458
2,731,617
Tax recoverable
8
-
535,868
12,506,632
27,618,430
Non-current assets
Property, plant and equipment
13
347,135
5,902,486
Development of software
15
-
-
Financial assets, at FVOCI
16
628,728
687,690
975,863
6,590,176
Total assets
13,482,495
34,208,606
LIABILITIES
Current liabilities
Trade and other payables
17
197,111
1,712,890
Lease liabilities
18
127,133
764,607
Bank borrowing
19
-
342,513
Current income tax liabilities
8
-
184,100
Contract liabilities
20
-
8,731,221
Redeemable participating shares
21
-
-
324,244
11,735,331
Non-current liabilities
Trade and other payables
17
-
169,460
Lease liabilities
18
97,802
3,489,124
Bank borrowing
19
-
57,086
Contract liabilities
20
-
1,296,564
97,802
5,012,234
Total liabilities
422,046
16,747,565
NET ASSETS
13,060,449
17,461,041
EQUITY
Capital and reserves attributable to owners of the Company
Share capital
22
30,822,105
33,731,412
Treasury shares
22
(715,615)
(209,883)
Other reserves
23
(991,408)
(14,953,905)
Accumulated losses
(16,054,633)
(2,127,434)
13,060,449
16,440,190
Non-controlling interests
-
1,020,851
Total equity
13,060,449
17,461,041
The accompanying notes form an integral part of these financial statements.
For personal use only
STATEMENT OF FINANCIAL POSITION - COMPANY
As at 31 March 2023
32
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Note
2024
2023
S$
S$
ASSETS
Current assets
Cash and cash equivalents
10
4,125,428
7,567,233
Financial assets, at FVPL
11
6,996,966
2,493,367
Trade and other receivables
12
582,006
511,664
11,704,400
10,572,264
Non-current assets
Investments in subsidiaries
14
730,769
18,944,445
Financial assets, at FVOCI
16
628,728
628,728
1,359,497
19,573,173
Total assets
13,063,897
30,145,437
LIABILITIES
Current liabilities
Trade and other payables
17
1,396,190
8,801,847
Total liabilities
1,396,190
8,801,847
NET ASSETS
11,667,707
21,343,590
EQUITY
Capital and reserves attributable to owners of the Company
Share capital
22
30,822,105
33,731,412
Treasury shares
22
(715,615)
(209,883)
Other reserves
23
(424,413)
(2,511,668)
Accumulated losses
(18,014,370)
(9,666,271)
Total equity
11,667,707
21,343,590
The accompanying notes form an integral part of these financial statements.
For personal use only
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 March 2024
33
Attributable to owners of the Company
Group
Share
capital
Treasury
shares
Fair value
reserve
Currency
translation
reserve
Capital
reserve
Employee
share plan
reserve
Accumulated
losses
Total
Non-
controlling
interests
Total
equity
S$
S$
S$
S$
S$
S$
S$
S$
S$
S$
2024
At 1 April 2023
33,731,412
(209,883)
(12,260,086)
(637,899)
(2,619,240)
563,320
(2,127,434)
16,440,190
1,020,851
17,461,041
Loss for the year
-
-
-
-
-
-
(2,200,931)
(2,200,931)
(755,993)
(2,956,924)
Other comprehensive loss for the year
-
-
(5,121)
137,090
-
-
-
131,969
24,048
156,017
Total comprehensive loss for the year
-
-
(5,121)
137,090
-
-
(2,200,931)
(2,068,962)
(731,945)
(2,800,907)
Capital reduction and disposal of subsidiaries (Note 10) (2,909,307)
-
11,821,794
(47,186)
2,619,240
(563,320) (11,726,268)
(805,047)
(288,906)
(1,093,953)
Share buyback
-
(505,732)
-
-
-
-
-
(505,732)
-
(505,732)
Total transactions with owners of the Company,
recognised directly in equity
(2,909,307)
(505,732)
11,821,794
(47,186)
2,619,240
(563,320)
(11,726,268)
(1,310,779)
(288,906)
(1,599,685)
End of financial year
30,822,105
(715,615)
(443,413)
(547,995)
-
-
(16,054,633)
13,060,449
-
13,060,449
The accompanying notes form an integral part of these financial statements.
r personal use only
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
For the financial year ended 31 March 2024
34
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Attributable to owners of the Company
Group
Share
capital
Treasury
shares
Fair value
reserve
Currency
translation
reserve
Capital
reserve
Employee
share plan
reserve
Accumulated
profits/
(losses)
Total
Non-
controlling
interests
Total
equity
S$
S$
S$
S$
S$
S$
S$
S$
S$
S$
2023
At 1 April 2022
33,731,412
(209,883) (11,395,395)
(572,635)
(2,229,579)
1,751,284
10,406,223
31,481,427
3,311,085
34,792,512
Loss for the year
-
-
-
-
-
-
(14,930,106)
(14,930,106)
(2,345,492) (17,275,598)
Other comprehensive loss for the year
-
-
(864,691)
(113,831)
-
-
-
(978,522)
(120,191)
(1,098,713)
Total comprehensive loss for the year
-
-
(864,691)
(113,831)
-
-
(14,930,106)
(15,908,628)
(2,465,683) (18,374,311)
Value of employee services
-
-
-
-
-
1,138,548
-
1,138,548
10,797
1,149,345
Waiver of performance rights & options
-
-
-
-
-
(2,326,512)
2,390,871
64,359
(64,359)
-
Dilution of subsidiaries without change in control
-
-
-
-
(335,516)
-
-
(335,516)
202,780
(132,736)
Disposal of subsidiaries
-
-
-
48,567
(54,145)
-
5,578
-
26,231
26,231
Total transactions with owners of the Company,
recognised directly in equity
-
-
-
48,567
(389,661)
(1,187,964)
2,396,449
867,391
175,449
1,042,840
End of financial year
33,731,412
(209,883) (12,260,086)
(637,899)
(2,619,240)
563,320
(2,127,434)
16,440,190
1,020,851
17,461,041
The accompanying notes form an integral part of these financial statements.
r personal use only
STATEMENT OF CHANGES IN EQUITY – COMPANY
For the financial year ended 31 March 2024
35
Attributable to owners of the Company
Company
Share
capital
Treasury
shares
Fair value
reserve
Capital
reserve
Employee
share plan
reserve
Accumulated
losses
Total
S$
S$
S$
S$
S$
S$
S$
2024
Beginning of financial year
33,731,412
(209,883)
(872,822)
(1,638,846)
-
(9,666,271)
21,343,590
Loss for the year
-
-
-
-
-
(6,260,844)
(6,260,844)
Total comprehensive loss for the year
-
-
-
-
-
(6,260,844)
(6,260,844)
Capital reduction and disposal of subsidiaries
(2,909,307)
-
448,409
1,638,846
-
(2,087,255)
(2,909,307)
Share buyback
-
(505,732)
-
-
-
-
(505,732)
Total transactions with owners of the Company, recognised directly in equity
(2,909,307)
(505,732)
448,409
1,638,846
-
(2,087,255)
(3,415,039)
End of financial year
30,822,105
(715,615)
(424,413)
-
-
(18,014,370)
11,667,707
The accompanying notes form an integral part of these financial statements.
r personal use only
STATEMENT OF CHANGES IN EQUITY – COMPANY (continued)
For the financial year ended 31 March 2024
36
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Attributable to owners of the Company
Company
Share
capital
Treasury
shares
Fair value
reserve
Capital
reserve
Employee
share plan
reserve
Accumulated
losses
Total
S$
S$
S$
S$
S$
S$
S$
2023
Beginning of financial year
33,731,412
(209,883)
(1,072,073)
(1,638,846)
986,155
(1,793,802)
30,002,963
Loss for the year
-
-
-
-
-
(8,073,103)
(8,073,103)
Other comprehensive loss for the year
-
-
(1,684,216)
-
-
-
(1,684,216)
Total comprehensive loss for the year
-
-
(1,684,216)
-
-
(8,073,103)
(9,757,319)
Value of employee services
-
-
-
-
1,097,946
-
1,097,946
Waiver of performance rights & options
-
-
-
-
(2,084,101)
2,084,101
-
Disposal of FVOCI
-
-
1,883,467
-
-
(1,883,467)
-
Total transactions with owners of the Company, recognised directly in equity
-
-
1,883,467
-
(986,155)
200,634
1,097,946
End of financial year
33,731,412
(209,883)
(872,822)
(1,638,846)
-
(9,666,271)
21,343,590
The accompanying notes form an integral part of these financial statements.
r personal use only
CONSOLIDATED STATEMENT OF CASH FLOWS
For the financial year ended 31 March 2024
37
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Note
2024
2023
S$
S$
Cash flows from operating activities
Profit/(loss) before income tax from continuing operations
92,403
(3,636,853)
Loss before income tax from discontinued operations
(3,162,044)
(12,921,536)
Loss before income tax
(3,069,641)
(16,558,389)
Adjustments for:
- Gain on disposal of subsidiaries
-
(35,459)
- Net fair value (gain)/loss of investment securities held at fair value through profit or
loss
- continuing operations
4
(628,045)
1,859,910
- discontinued operations
-
888,868
- Net loss on disposal of investment securities held at fair value through profit or loss
- discontinued operations
-
2,961,556
- Dividend income
- continuing operations
4
(79,354)
(20,246)
- discontinued operations
-
(131,979)
- Interest income
- continuing operations
5
(226,104)
(70,552)
- discontinued operations
(7,828)
(270,068)
- Depreciation of property, plant and equipment
- continuing operations
6
214,174
212,183
- discontinued operations
6
666,039
1,415,903
- Amortisation of development of software
6
-
1,116,553
- Property, plant and equipment written off
6
34,874
20,771
- Bad debt written off
6
-
89,727
- Credit loss allowance
6
-
(17,451)
- Impairment of development of software
6
-
1,684,011
- Finance costs
78,833
152,543
- Employee share plan expense
7
-
1,149,345
- Share of loss attributable to the unit holders of redeemable participating shares
21
-
(1,592,197)
- Share of loss of associate
235,500
-
- Loss on disposal of associate
5,276
-
- Non-cash shares compensation to non-controlling interest
-
250,000
- Reversal of legal compensation receivable
6
-
510,631
- Exchange differences
339,297
24,807
(2,436,979)
(6,359,533)
Change in working capital, net of effects from disposal of subsidiaries:
- Trade and other receivables
(401,091)
640,163
- Financial assets, at FVPL
(3,589,861)
15,040,579
- Trade and other payables
611,489
(2,146,552)
- Contract liabilities
(4,336,769)
(3,523,732)
Cash (used in)/generated from operations
(10,153,211)
3,650,925
Interest received
233,932
444,642
Dividend received
79,354
152,225
Income tax paid
8(b)
(138,357)
(604,252)
Net cash (used in)/provided by operating activities
(9,978,282)
3,643,540
Cash flows from investing activities
Acquisition of non-controlling interest without a change in control
(70,000)
(392,446)
Net proceeds from disposal of subsidiaries
(4,914,213)
(44,684)
Additions to property, plant and equipment
13
-
(220,744)
Additions to development of software
15
-
(1,375,212)
Additions of financial assets through other comprehensive income
16
-
(356,855)
Net cash used in investing activities
(4,984,213)
(2,389,941)
The accompanying notes form an integral part of these financial statements.
For personal use only
CONSOLIDATED STATEMENT OF CASH FLOWS (continued)
For the financial year ended 31 March 2024
38
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Note
2024
2023
S$
S$
Cash flows from financing activities
Shares buy-back
22
(505,732)
-
Payment of principal portion of lease liabilities
18
(517,629)
(807,684)
Interest paid
(78,833)
(152,543)
Repayment of bank borrowing
(198,038)
(331,571)
Net proceeds from fund’s non-controlling unit holders
21
-
(5,386,701)
Net cash used in financing activities
(1,300,232)
(6,678,499)
Net decrease in cash and cash equivalents
(16,262,727)
(5,424,900)
Cash and cash equivalents
Beginning of financial year
20,406,258
26,348,010
Effects of currency translation on cash and cash equivalents
74,677
(516,852)
End of financial year
4,218,208
20,406,258
The accompanying notes form an integral part of these financial statements.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
39
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
These notes form an integral part of and should be read in
conjunction with the accompanying financial statements.
1. Corporate information
8I HOLDINGS LIMITED (the “Company”) is listed on the Australian
Securities Exchange and incorporated and domiciled in Singapore.
The address of its registered office and principal place of business
is 1557 Keppel Road #01-01 Singapore 089066.
The principal activities of the Company is management
consultancy services and investment holding. The principal
activities of its subsidiaries are disclosed in Note 14 to the
financial statements.
2. Material accounting policies
2.1 Basis of preparation
These financial statements have been prepared in accordance
with Financial Reporting Standards in Singapore (“FRSs”) under
the historical cost basis, except as disclosed in the accounting
policies below.
The preparation of Group consolidation financial statements in
conformity with FRSs requires management to exercise its
judgement in the process of applying the Group’s accounting
policies. It also requires the use of certain critical accounting
estimates and assumptions. The areas involving a higher degree
of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed
in Note 3.
The financial statements of the Company have been prepared on
the basis that it will continue to operate as a going concern.
Interpretations and amendments to published standards
effective in 2023
On 1 April 2023, the Group has adopted the new or amended FRSs
and Interpretations of FRSs (“INT FRSs”) that are mandatory for
application for the financial year. Changes to the Group’s
accounting policies have been made as required, in accordance
with the transitional provisions in the respective FRSs and INT
FRSs.
The adoption of these new or amended FRSs and INT FRSs did not
result in substantial changes to the Group’s accounting policies
and had no material effect on the amounts reported for the
current or prior financial years.
2.2 Gains and income recognition
Investment gains and losses are recognized in the income
statement when the investments are derecognized or impaired,
and through the periodic revaluation of financial assets held at
fair value. The company classifies its investments in accordance
with FRS 109 Financial Instruments.
(a)
Interest income
Interest income is recognised using the effective interest
method.
(b)
Dividend income
Dividend income is recognised when the right to receive
payment is established. It is probable that the economic
benefits associated with the dividend will flow to the Group,
and the amount of the dividend can be reliably measured.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
40
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
2. Material accounting policies (continued)
2.3 Group accounting
(a)
Subsidiaries
(i) Consolidation
Subsidiaries are all entities (including structured
entities) over which the Group has control. The Group
controls an entity when the Group is exposed to, or has
rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through
its power over the entity. Subsidiaries are fully
consolidated from the date on which control is
transferred to the Group. They are deconsolidated from
the date on that control ceases.
In preparing the consolidated financial statements,
transactions, balances and unrealised gains on
transactions between group entities are eliminated.
Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment
indicator of the transferred asset. Accounting policies of
subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the
Group.
Non-controlling interests comprise the portion of a
subsidiary’s net results of operations and its net assets,
which is attributable to the interests that are not owned
directly or indirectly by the equity holders of the
Company. They are shown separately in the
consolidated statement of comprehensive income,
statement of changes in equity, and consolidated
statement of financial position. Total comprehensive
income is attributed to the non-controlling interests
based on their respective interests in a subsidiary, even
if this results in the non-controlling interests having a
deficit balance.
(ii) Acquisitions
The acquisition method of accounting is used to account
for business combinations entered into by the Group.
The consideration transferred for the acquisition of a
subsidiary or business comprises the fair value of the
assets transferred, the liabilities incurred and the equity
interests issued by the Group. The consideration
transferred also includes any contingent consideration
arrangement and any pre-existing equity interest in the
subsidiary measured at their fair values at the
acquisition date.
Acquisition-related costs are expensed as incurred.
Identifiable
assets
acquired
and
liabilities
and
contingent liabilities assumed in a business combination
are, with limited exceptions, measured initially at their
fair values at the acquisition date.
On an acquisition-by-acquisition basis, the Group
recognises any non-controlling interest in the acquiree
at the date of acquisition either at fair value or at the
non-controlling interest’s proportionate share of the
acquiree’s identifiable net assets.
The excess of (a) the consideration transferred, the
amount of any non-controlling interest in the acquiree
and the acquisition-date fair value of any previous
equity interest in the acquiree over the (b) fair value of
the identifiable net assets acquired is recorded as
goodwill.
(iii) Disposals
When a change in the Group’s ownership interest in a
subsidiary results in a loss of control over the subsidiary,
the assets and liabilities of the subsidiary including any
goodwill
are
derecognised.
Amounts
previously
recognised in other comprehensive income in respect
of that entity are also reclassified to profit or loss or
transferred directly to retained earnings if required by a
specific Standard.
Any retained equity interest in the entity is remeasured
at fair value. The difference between the carrying
amount of the retained interest at the date when
control is lost and its fair value is recognised in profit or
loss.
Please refer to the paragraph “Investments in
subsidiaries and associated companies” for the
accounting policy on investments in subsidiaries in the
separate financial statements of the Company.
(b)
Transactions with non-controlling interests
Changes in the Group’s ownership interest in a subsidiary
that do not result in a loss of control over the subsidiary are
accounted for as transactions with equity owners of the
Company. Any difference between the change in the
carrying amounts of the non-controlling interest and the fair
value of the consideration paid or received is recognised
within equity attributable to the equity holders of the
Company.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
41
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
2. Material accounting policies (continued)
2.3 Group accounting (continued)
(c)
Associated companies
Associated companies are entities over which the Group has
significant
influence,
but
not
control,
generally
accompanied by a shareholding giving rise to voting rights
of 20% and above but not exceeding 50%.
Investments in associated companies is accounted for in the
consolidated financial statements using the equity method
of accounting less impairment losses, if any.
(i) Acquisitions
Investments in associated companies is initially
recognised at cost. The cost of an acquisition is
measured at the fair value of the assets given, equity
instruments issued or liabilities incurred or assumed at
the date of exchange, plus costs directly attributable to
the acquisition. Goodwill on associated companies
represents the excess of the cost of acquisition of the
associated company over the Group’s share of the fair
value of the identifiable net assets of the associated
company and is included in the carrying amount of the
investments.
(ii) Equity method of accounting
Under the equity method of accounting, the
investments are initially recognised at cost and adjusted
thereafter to recognise Group’s share of its associated
companies’ post-acquisition profits or losses of the
investee in profit or loss and its share of movements in
other comprehensive income of the investee’s other
comprehensive
income.
Dividends
received
or
receivable from the associated companies are
recognised as a reduction of the carrying amount of the
investments. When the Group’s share of losses in an
associated company equals to or exceeds its interest in
the associated company, the Group does not recognise
further losses, unless it has legal or constructive
obligations to make, or has made, payments on behalf
of the associated company. If the associated company
subsequently reports profits, the Group resumes
recognising its share of those profits only after its share
of the profits equals the share of losses not recognised.
Unrealised gains on transactions between the Group
and its associated companies are eliminated to the
extent of the Group's interest in the associated
companies. Unrealised losses are also eliminated unless
the transactions provide evidence of impairment of the
assets
transferred.
The
accounting
policies
of
associated companies is changed where necessary to
ensure consistency with the accounting policies
adopted by the Group.
(iii) Disposals
Investments in associated companies is derecognised
when the Group loses significant influence. If the
retained equity interest in the former associated
company is a financial asset, the retained equity
interest is measured at fair value. The difference
between the carrying amount of the retained interest at
the date when significant influence is lost, and its fair
value and any proceeds on partial disposal, is
recognised in profit or loss.
Please refer to the paragraph “Investments in
subsidiaries and associated companies” for the
accounting policy on investments in associated
companies in the separate financial statements of the
Company.
2.4 Property, plant and equipment
(a)
Measurement
(i) Property, plant and equipment
Property, plant and equipment are initially recognised
at cost and subsequently carried at cost less
accumulated
depreciation
and
accumulated
impairment losses.
(ii) Components of costs
The cost of an item of property, plant and equipment
initially recognised includes its purchase price and any
cost that is directly attributable to bringing the asset to
the location and condition necessary for it to be capable
of operating in the manner intended by management.
(b)
Depreciation
Depreciation of property, plant and equipment is calculated
using the straight-line method to allocate their depreciable
amounts over their estimated useful lives as follows:
Useful lives
Office premises
1 to 7 years
Office equipment
1 to 3 years
Furniture and fittings
3 to 7 years
Motor vehicles
5 years
The residual values, estimated useful lives and depreciation
method of property, plant and equipment are reviewed,
and adjusted as appropriate, at each reporting date. The
effects of any revision are recognised in profit or loss when
the changes arise.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
42
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
2. Material accounting policies (continued)
2.4 Property, plant and equipment (continued)
(c)
Subsequent expenditure
Subsequent expenditure relating to property, plant and
equipment that has already been recognised is added to the
carrying amount of the asset only when it is probable that
future economic benefits associated with the item will flow
to the entity and the cost of the item can be measured
reliably. All other repair and maintenance expenses are
recognised in profit or loss when incurred.
(d)
Disposal
On disposal of an item of property, plant and equipment,
the difference between the disposal proceeds and its
carrying amount is recognised in profit or loss within “other
gains”.
2.5 Intangible assets
Development of software
Research costs are recognised as an expense when incurred. Costs
directly attributable to the development of VI App and CRM
system are capitalised as intangible assets only when technical
feasibility of the project is demonstrated, the Group has an
intention and ability to complete and use the software and the
costs can be measured reliably. Such costs include purchases of
materials and services and payroll-related costs of employees
directly involved in the project and are amortised over their
estimated useful lives of 2 years.
2.6 Investments in subsidiaries and associated
companies
Investments in subsidiaries and associated companies are carried
at cost less accumulated impairment losses in the Company’s
statement of financial position. On disposal of such investments,
the difference between disposal proceeds and the carrying
amounts of the investments are recognised in profit or loss.
2.7 Impairment of non-financial assets
Intangible assets – Development of software
Property, plant and equipment
Right-of-use assets
Investments in subsidiaries and associated companies
Intangible assets, property, plant and equipment, right-of-use
assets and investments in subsidiaries and associated companies
are tested for impairment whenever there is any objective
evidence or indication that these assets may be impaired.
For the purpose of impairment testing, the recoverable amount
(i.e. the higher of the fair value less cost to sell and the value-in-
use) is determined on an individual asset basis unless the asset
does not generate cash inflows that are largely independent of
those from other assets. If this is the case, the recoverable
amount is determined for the CGU to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be
less than its carrying amount, the carrying amount of the asset (or
CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable
amount is recognised as an impairment loss in profit or loss.
For an asset other than goodwill, management assesses at the
end of the reporting period whether there is any indication that
an impairment recognised in prior periods may no longer exist or
may have decreased. If any such indication exists, the recoverable
amount of that asset is estimated and may result in a reversal of
impairment loss. The carrying amount of this asset is increased to
its revised recoverable amount, provided that this amount does
not exceed the carrying amount that would have been
determined
(net
of
any
accumulated
amortisation
or
depreciation) had no impairment loss been recognised for the
asset in prior years.
A reversal of impairment loss for an asset other than goodwill is
recognised in profit or loss, unless the asset is carried at revalued
amount, in which case, such reversal is treated as a revaluation
increase. However, to the extent that an impairment loss on the
same revalued asset was previously recognised as an expense, a
reversal of that impairment is also recognised in profit or loss.
2.8 Financial assets
(a) Classification and measurement
The Group classifies its financial assets in the following
measurement categories:
• Amortised cost;
• Fair value through other comprehensive income (FVOCI);
and
• Fair value through profit or loss (FVPL).
The classification depends on the Group’s business model
for managing the financial assets as well as the contractual
terms of the cash flows of the financial asset.
The Group reclassifies debt investments when and only
when its business model for managing those assets changes.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
43
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
2. Material accounting policies (continued)
2.8 Financial assets (continued)
(a) Classification and measurement (continued)
At initial recognition
At initial recognition, the Group measures a financial asset at its
fair value plus, in the case of a financial asset not at fair value
through profit or loss, transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction
costs of financial assets carried at fair value through profit or loss
are expensed in profit or loss.
At subsequent measurement
(i)
Debt instruments
Debt instruments mainly comprise of cash and cash equivalents
and trade and other receivables.
There are three subsequent measurement categories, depending
on the Group’s business model for managing the asset and the
contractual cash flow characteristics of the asset:
•
Amortised cost: Debt instruments that are held for
collection of contractual cash flows where those cash flows
represent solely payments of principal and interest are measured
at amortised cost. A gain or loss on a debt investment that is
subsequently measured at amortised cost and is not part of a
hedging relationship is recognised in profit or loss when the asset
is derecognised or impaired. Interest income from these financial
assets is included in other income and presented as interest
income, using the effective interest rate method.
•
FVOCI: Debt instruments that are held for collection of
contractual cash flows and for sale, and where the assets’ cash
flows represent solely payments of principal and interest, are
classified as FVOCI. Movements in fair values are recognised in
Other Comprehensive Income (OCI) and accumulated in fair value
reserve, except for the recognition of impairment gains or losses,
interest income and foreign exchange gains and losses, which are
recognised in profit and loss. When the financial asset is
derecognised, the cumulative gain or loss previously recognised
in OCI is reclassified from equity to profit or loss and presented in
“other gains and(losses)”. Interest income from these financial
assets is recognised using the effective interest rate method and
presented in “interest income”.
•
FVPL: Debt instruments that are held for trading as well as
those that do not meet the criteria for classification as amortised
cost or FVOCI are classified as FVPL. Movement in fair values and
interest income that is not part of a hedging relationship is
recognised in profit or loss in the period in which it arises and
presented in “other gains and(losses)”.
(ii) Equity instruments
The Group subsequently measures all its equity investments
at their fair values. Equity investments are classified as FVPL
with movements in their fair values recognised in profit or loss
in the period in which the changes arise and presented in
“other gains and losses”, except for those equity securities
which are not held for trading. The Group has elected to
recognise changes in fair value of equity securities not held
for trading in other comprehensive income as these are
strategic investments and the Group considers this to be more
relevant.
Movements in fair values of investments classified as FVOCI
are presented as “fair value gains and losses” in Other
Comprehensive Income. Dividends from equity investments
are recognised in profit or loss as “dividend income”.
(c)
Impairment
The Group assesses on a forward looking basis the expected
credit losses associated with its debt financial assets carried
at amortised cost and FVOCI. The impairment methodology
applied depends on whether there has been a significant
increase in credit risk.
For trade receivables, the Group applies the simplified
approach permitted by the FRS 109, which requires
expected lifetime losses to be recognised from initial
recognition of the receivables.
(d) Recognition and derecognition
Regular way purchases and sales of financial assets are
recognised on trade date – the date on which the Group
commits to purchase or sell the asset.
Financial assets are derecognised when the rights to receive
cash flows from the financial assets have expired or have
been transferred and the Group has transferred
substantially all risks and rewards of ownership.
On disposal of a debt instrument, the difference between
the carrying amount and the sale proceeds is recognised in
profit or loss. Any amount previously recognised in other
comprehensive income relating to that asset is reclassified
to profit or loss.
On disposal of an equity investment, the difference
between the carrying amount and sales proceed is
recognised in profit or loss if there was no election made to
recognise fair value changes in other comprehensive
income. If there was an election made, any difference
between the carrying amount and sales proceed amount
would be recognised in other comprehensive income and
transferred to retained profits along with the amount
previously recognised in other comprehensive income
relating to that asset.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
44
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
2.
Material accounting policies (continued)
2.9 Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount
reported in the consolidated statement of financial position when
there is a legally enforceable right to offset and there is an
intention to settle on a net basis or realise the asset and settle the
liability simultaneously.
2.10 Borrowings
Borrowings are presented as current liabilities unless the Group
has an unconditional right to defer settlement for at least 12
months after the balance sheet date, in which case they are
presented as non-current liabilities.
Borrowings are initially recognised at fair value (net of transaction
costs) and subsequently carried at amortised cost. Any difference
between the proceeds (net of transaction costs) and the
redemption value is recognised in profit or loss over the period of
the borrowings using the effective interest method.
2.11 Trade and other payables
Trade and other payables represent liabilities for goods and
services provided to the Group prior to the end of financial year
which are unpaid. They are classified as current liabilities if
payment is due within one year or less (or in the normal operating
cycle of the business if longer). Otherwise, they are presented as
non-current liabilities.
Trade and other payables are initially recognised at fair value, and
subsequently carried at amortised cost using the effective interest
method.
2.12 Fair value estimation of financial assets and
liabilities
The fair values of financial instruments traded in active markets
(such as exchange-traded and over-the-counter securities and
derivatives) are based on quoted market prices at the reporting
date. The quoted market prices used for financial assets are the
current bid prices; the appropriate quoted market prices used for
financial liabilities are the current asking prices.
The fair values of financial instruments that are not traded in an
active market are determined by using valuation techniques. The
Group uses a variety of methods and makes assumptions based
on market conditions that are existing at each reporting date.
Where appropriate, quoted market prices or dealer quotes for
similar instruments are used. Valuation techniques, such as
discounted cash flow analysis, are also used to determine the fair
values of the financial instruments.
2.13 Leases
(a)
When the Group is the lessee:
At the inception of the contract, the Group assesses if the
contract contains a lease. A contract contains a lease if the
contract convey the right to control the use of an identified
asset for a period of time in exchange for consideration.
Reassessment is only required when the terms and
conditions of the contract are changed.
•
Right-of-use assets
The Group recognised a right-of-use asset and lease
liability at the date which the underlying asset is
available for use. Right-of-use assets are measured at
cost which comprises the initial measurement of lease
liabilities adjusted for any lease payments made at or
before the commencement date and lease incentive
received. Any initial direct costs that would not have
been incurred if the lease had not been obtained are
added to the carrying amount of the right-of-use assets.
These right-of-use asset is subsequently depreciated
using
the
straight-line
method
from
the
commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the
lease term.
Right-of-use assets (except for those which meets the
definition of an investment property) are presented
within “Property, plant and equipment”.
•
Lease liabilities
The initial measurement of lease liability is measured at
the present value of the lease payments discounted
using the implicit rate in the lease, if the rate can be
readily determined. If that rate cannot be readily
determined, the Group shall use its incremental
borrowing rate.
Lease payments include the following:
-
Fixed
payment (including
in-substance
fixed
payments), less any lease incentives receivables;
-
Variable lease payment that are based on an index
or rate, initially measured using the index or rate as
at the commencement date;
-
Amount expected to be payable under residual
value guarantees;
-
The exercise price of a purchase option if is
reasonably certain to exercise the option; and
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
45
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
2.
Material accounting policies (continued)
2.13 Leases (continued)
(a) When The Group is the lessee (continued)
•
Lease liabilities (continued)
-
Payment of penalties for terminating the lease, if
the lease term reflects the Group exercising that
option.
For contract that contain both lease and non-lease
components, the Group allocates the consideration to
each lease component on the basis of the relative stand-
alone price of the lease and non-lease component. The
Group has elected to not separate lease and non lease
component for property leases and account these as
one single lease component.
Lease liability is measured at amortised cost using the
effective interest method. Lease liability shall be
remeasured when:
- There is a change in future lease payments arising
from changes in an index or rate;
- There is a changes in the Group’s assessment of
whether it will exercise an extension option; or
- There are modification in the scope or the
consideration of the lease that was not part of the
original term.
Lease liability is remeasured with a corresponding
adjustment to the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.
•
Short term and low value leases
The Group has elected to not recognised right-of-use
assets and lease liabilities for short-term leases that
have lease terms of 12 months or less and leases of low
value leases, except for sublease arrangements. Lease
payments relating to these leases are expensed to profit
or loss on a straight-line basis over the lease term.
(b)
When the Group is the lessor:
The accounting policy applicable to the Group as a lessor in
the comparative period were the same under FRS 16 except
when the Group is an intermediate lessor.
In classifying a sublease, the Group as an intermediate
lessor classifies the sublease as a finance or an operating
lease with reference to the right of-use asset arising from
the head lease, rather than the underlying asset.
When the sublease is assessed as a finance lease, the Group
derecognises the right-of-use asset relating to the head
lease that it transfers to the sublessee and recognised the
net investment in the sublease within “Trade and other
receivables”. Any differences between the right-of-use
asset derecognised and the net investment in sublease is
recognised in profit or loss. Lease liability relating to the
head lease is retained in the balance sheet, which
represents the lease payments owed to the head lessor.
When the sublease is assessed as an operating lease, the
Group recognise lease income from sublease in profit or loss
within “Other income”. The right-of-use asset relating to the
head lease is not derecognised.
For contract which contains lease and non-lease
components, the Group allocates the consideration based
on a relative stand-alone selling price basis.
2.14 Income taxes
Current income tax for current and prior periods is recognised at
the amount expected to be paid to or recovered from the tax
authorities, using the tax rates and tax laws that have been
enacted or substantively enacted at the end of reporting period.
Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions, where
appropriate, on the basis of amounts expected to be paid to the
tax authorities.
Deferred income tax is recognised for all temporary differences
arising between the tax bases of assets and liabilities and their
carrying amounts in the financial statements except when the
deferred income tax arises from the initial recognition of goodwill
or an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profit or
loss at the time of the transaction.
A deferred income tax liability is recognised on temporary
differences arising on investments in subsidiaries and associated
companies, except where the Group is able to control the timing
of the reversal of the temporary difference and it is probable that
the temporary difference will not reverse in the foreseeable
future.
A deferred income tax asset is recognised to the extent that it is
probable that future taxable profit will be available against which
the deductible temporary differences and tax losses can be
utilised.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
46
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
2. Material accounting policies (continued)
2.14 Income taxes (continued)
Deferred income tax is measured:
(i)
at the tax rates that are expected to apply when the related
deferred income tax asset is realised or the deferred income
tax liability is settled, based on tax rates and tax laws that
have been enacted or substantively enacted by the end of
the reporting period; and
(ii)
based on the tax consequence that will follow from the
manner in which the Group expects, at the end of the
reporting period, to recover or settle the carrying amounts
of its assets and liabilities.
Current and deferred income taxes are recognised as income or
expense in profit or loss, except to the extent that the tax arises
from a business combination or a transaction which is recognised
directly in equity. Deferred tax arising from a business
combination is adjusted against goodwill on acquisition.
The Group accounts for investment tax credits (for example,
productivity and innovative credit) similar to accounting for other
tax credits where deferred tax asset is recognised for unused tax
credits to the extent that it is probable that future taxable profit
will be available against which the unused tax credit can be
utilised.
2.15 Employee compensation
Employee benefits are recognised as an expense, unless the cost
qualifies to be capitalised as an asset.
Defined contribution plans
Defined contribution plans are post-employment benefit plans
under which the Group pays fixed contributions into separate
entities such as the Central Provident Fund on a mandatory,
contractual or voluntary basis. The Group has no further payment
obligations once the contributions have been paid.
Employee share plan
The Group operates an equity-settled, share-based compensation
plan. The value of the employee services received in exchange for
the grant of options is recognised as an expense with a
corresponding increase in the employee share plan reserve over
the vesting period. The total amount to be recognised over the
vesting period is determined by reference to the fair value of the
options granted on grant date. Non-market vesting conditions are
included in the estimation of the number of shares under options
that are expected to become exercisable on the vesting date.
At each balance sheet date, the Group revises its estimates of the
number of shares under options that are expected to become
exercisable on the vesting date and recognises the impact of the
revision of the estimates in profit or loss, with a corresponding
adjustment to the employee share plan reserve over the
remaining vesting period.
When the options are exercised, the proceeds received (net of
transaction costs) and the related balance previously recognised
in the employee share plan reserve are credited to the share
capital account, when new ordinary shares are issued, or to the
“treasury shares” account, when treasury shares are re-issued to
the employees.
2.16 Currency translation
(a)
Functional and presentation currency
Items included in the financial statements of each entity in
the Group are measured using the currency of the primary
economic environment in which the entity operates
(“functional currency”). The financial statements are
presented in Singapore Dollars, which is the functional
currency of the Company.
(b)
Transactions and balances
Transactions in a currency other than the functional
currency (“foreign currency”) are translated into the
functional currency using the exchange rates at the dates of
the transactions. Currency exchange differences resulting
from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated
in foreign currencies at the closing rates at the balance
sheet date are recognised in profit or loss. Monetary items
include primarily financial assets (other than equity
investments), contract assets and financial liabilities.
However, in the consolidated financial statements, currency
translation differences arising from borrowings in foreign
currencies and other currency instruments designated and
qualifying as net investment hedges and net investment in
foreign operations, are recognised in other comprehensive
income and accumulated in the currency translation
reserve.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
47
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
2. Material accounting policies (continued)
2.16 Currency translation (continued)
(c)
Translation of Group entities’ financial statements
The results and financial position of all the Group entities
(none of which has the currency of a hyperinflationary
economy) that have a functional currency different from the
presentation currency are translated into the presentation
currency as follows:
(i)
assets and liabilities are translated at the closing
exchange rates at the reporting date;
(ii)
income and expenses are translated at average
exchange rates (unless the average is not a reasonable
approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case
income and expenses are translated using the
exchange rates at the dates of the transactions); and
(iii)
all resulting currency translation differences are
recognised in other comprehensive income and
accumulated in the currency translation reserve.
These currency translation differences are reclassified
to profit or loss on disposal or partial disposal with
loss of control of the foreign operation.
Goodwill and fair value adjustments arising on the
acquisition of foreign operations are treated as assets and
liabilities of the foreign operations and translated at the
closing rates at the reporting date.
2.17 Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting provided to the executive committee whose
members are responsible for allocating resources and assessing
performance of the operating segments.
2.18 Cash and cash equivalents
For the purpose of presentation in the consolidated statement of
cash flows, cash and cash equivalents include cash at bank, cash
on hand and deposits with financial institutions which are subject
to an insignificant risk of change in value.
2.19 Share capital and treasury shares
Ordinary shares are classified as equity. Incremental costs directly
attributable to the issuance of new ordinary shares are deducted
against the share capital account.
When any entity within the Group purchases the Company’s
ordinary shares (“treasury shares”), the carrying amount which
includes the consideration paid and any directly attributable
transaction cost is presented as a component within equity
attributable to the Company’s equity holders, until they are
cancelled, sold or reissued.
When treasury shares are subsequently cancelled, the cost of
treasury shares are deducted against the share capital account if
the shares are purchased out of capital of the Company, or against
the retained profits of the Company if the shares are purchased
out of earnings of the Company.
When treasury shares are subsequently sold or reissued pursuant
to an employee share option scheme, the cost of treasury shares
is reversed from the treasury share account and the realised gain
or loss on sale or reissue, net of any directly attributable
incremental transaction costs and related income tax, is
recognised in the capital reserve.
2.20 Redeemable participating shares
Redeemable participating shares are redeemable at the option of
the unit holders and providing the investors with the right to
require redemption for cash at the value proportionate to the
investor’s share in the fund’s net assets. Profit/(losses)
attributable to the holders of redeemable participating shares
were recorded as part of the liabilities of redeemable
participating shares.
2.21 Discontinued operations
A discontinued operation is a component of an entity that either
has been disposed of, or that is classified as held-for-sale and:
(a)
represents a separate major line of business or geographical
area of operations; or
(b)
is part of a single co-ordinated plan to dispose of a separate
major line of business or geographical area of operations; or
(c)
is a subsidiary acquired exclusively with a view to resale.
2.22 Contract liabilities
Contract liabilities represent advances collected from the
customers before the Group’s performance obligations to deliver
the services are satisfied. Contract liabilities are recognised as
revenue as and when the performance obligations are satisfied.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
48
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
3. Critical accounting estimates,
assumptions and judgements
Estimates, assumptions and judgements are continually
evaluated and are based on historical experience and other
factors, including expectations of future events that are believed
to be reasonable under the circumstances.
3.1 Critical judgements in applying the entity’s
accounting policies
a.
Determination of lease term of contracts with extension
options
As at 31 March 2024, the Group’s lease liabilities, which are
measured with reference to an estimate of the lease term,
amounted to S$224,935 (2023: S$4,253,730), of which S$Nil
(2023: 2,247,084) arose from extension options. Extension
option is included in the lease term if the lease is reasonably
certain to be extended. In determining the lease term,
management considers all facts and circumstances that
create an economic incentive to exercise the extension
option.
For leases of office premises, the following factors are
considered to be most relevant:
• If any leasehold improvements are expected to have a
significant remaining value, the Group typically includes
the extension option in lease liabilities;
• Otherwise, the Group considers other factors including its
costs required to obtain replacement assets, and business
disruptions.
b.
Leases – estimating the incremental borrowing rate
The Group cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate to measure lease liabilities. The incremental
borrowing rate is the rate of interest that the Group would
have to pay to borrow over a similar term, and with a similar
security, the funds necessary to obtain an asset of a similar
value to the right-of-use asset in a similar economic
environment. The incremental borrowing rate therefore
reflects what the Group ‘would have to pay’, which requires
estimation when no observable rates are available or when
they need to be adjusted to reflect the terms and conditions
of the lease. The Group estimates the incremental
borrowing rate using observable inputs (such as market
interest rates) when available and is required to make
certain entity-specific estimates.
c. Fair value of financial instruments
The majority of the Group’s financial instruments reported
at fair value are based on quoted and observable market
prices or valuation techniques that are based on
independently sourced or verified market parameters.
The fair value of financial instruments without an
observable market price in an active market may be
determined using valuation techniques. The choice of
valuation techniques and assumptions that are based on
market conditions requires significant judgement for
investment in unquoted equities.
Please refer to Note 25(e) for further details on fair
valuation and fair value hierarchy of the Group’s financial
instruments measured at fair value.
d.
Income taxes
The Group has exposure to income taxes in numerous
jurisdictions.
Significant
judgement
is
involved
in
determining the Group’s provision for income taxes. The
Group recognises liabilities for expected tax issues based on
reasonable estimates of whether additional taxes will be
due. Where uncertainty exists around the Group’s tax
position including resolution of any related appeals or
litigation processes, appropriate provisions are provided
based on technical merits of the positions with the same tax
authority. In general, determination of the value of
assets/liabilities relating to carry forward tax losses requires
judgement.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
49
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
4. Investment gains/(losses)
Group
2024
2023
S$
S$
Fair value gain/(loss) on investment
securities
628,045
(1,859,910)
Dividend income
79,354
20,246
707,399
(1,839,664)
5. Other gains and other income
Group
2024
2023
S$
S$
Other gains
Gain on foreign exchange – net
151,474
-
Gain on disposal of subsidiaries
-
1,000
151,474
1,000
Other income
Interest income
226,104
70,552
Government grants
13,388
8,457
Management and service fee
744,980
1,527,772
Others
743
2,666
985,215
1,609,447
6. Expenses by nature
Group
2024
2023
S$
S$
Audit fees paid to:
- Auditors of the Company
137,585
160,868
- Other auditors
10,287
29,536
Non-audit fees paid to auditors of the
Company
12,960
18,700
Depreciation of property, plant and
equipment (Note 13)
- continuing operations
214,174
212,183
- discontinued operations
666,039
1,415,903
Employee compensation (Note 7)
4,223,282
10,417,226
Rental expense on operating
leases (Note 18(d))
69,451
18,581
Travelling expense
571,229
592,051
Professional fees
421,070
562,301
Commission
69,834
90,092
Loss on foreign exchange – net
-
481,950
Marketing expenses
1,114,707
5,071,668
Credit card charges
70,481
458,589
Trainer fees
228,181
748,484
Food catering expense
36,627
57,016
Book and printing expenses
231,335
511,933
Other program costs
21,406
199,674
Investment related expense
106,554
467,172
Training costs
41,375
134,188
AGM and listing expenses
80,951
120,933
Office expenses
120,814
297,433
Amortisation of development of
software (Note 15)
-
1,116,553
Information technology cost
457,970
2,053,316
Property, plant and equipment
written off
34,874
20,771
Bad debt written off (Note 12(b))
-
89,727
Credit loss allowance (Note 24(b))
- Trade receivables
-
(17,451)
Donation
1,388
24,747
Withholding tax expense
76,681
141,961
Admin expenses
175,621
487,785
Non-cash shares compensation to
non-controlling interest
-
250,000
Sale and service tax expense
-
270,161
Reversal of legal compensation
receivable
-
510,631
Impairment of development of
software (Note 15)
-
1,684,011
Other expenses
216,622
624,220
9,411,498
29,322,896
Less: Amounts attributable to
discontinued operations
(7,682,220)
(25,946,409)
Total cost of sales and services,
administrative expenses,
marketing and other operating
expenses attributable to continuing
operations
1,729,278
3,376,487
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
50
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
7. Employee compensation
Group
2024
2023
S$
S$
Wages and salaries
3,863,900
8,101,874
Employer’s contribution to defined
contribution plans
328,831
928,884
Other short-term benefits
30,551
237,123
Employee share plan
-
1,149,345
4,223,282 10,417,226
Less: Amounts attributable to
discontinued operations
(3,259,515) (7,682,815)
Amounts attributable to continuing
operations
963,767
2,734,411
8. Income taxes
(a)
Income tax (expense)/credit
Group
2024
2023
S$
S$
Tax credit/(expense) attributable to
loss is made up of:
- Loss for the financial year:
From discontinued operations
Current income tax
- Foreign
-
(15,971)
-
(15,971)
Deferred income tax (Note 22)
-
(702,139)
-
(718,010)
- Over provision in prior financial
years:
Current income tax
112,717
801
112,717
(717,209)
Tax credit/(expense) attributable to:
- continuing operations
-
3,642
- discontinued operations
112,717
(720,851)
112,717
(717,209)
The tax on the Group’s profit/(loss) before income tax differs from
the theoretical amount that would arise using the Singapore
standard rate of income tax as follows:
Group
2024
2023
S$
S$
Profit/(loss) before income tax
- continuing operations
92,403
(3,636,853)
- discontinued operations
(3,162,044) (12,921,536)
(3,069,641) (16,558,389)
Tax calculated at tax rate of 17%
(2023: 17%)
(521,839) (2,814,926)
Effects of:
- income not subject to tax
-
(6,028)
- expenses not deductible for tax
purposes
709,483
392,882
- reversal of deferred tax asset
recognised in prior years
-
783,845
- deferred tax assets not recognised
-
2,516,811
- utilisation of previously
unrecognised tax losses
(187,644)
(113,970)
- others
-
(40,604)
- over provision of tax in prior
financial years
(112,717)
(801)
Tax (credit)/charge
(112,717)
717,209
(b)
Movement in income tax recoverable/(tax liabilities):
Group
2024
2023
S$
S$
Beginning of financial year
351,768
(237,314)
Income tax paid
138,357
604,252
Tax expense
-
(15,971)
Over provision in prior financial years
112,717
801
Disposal of subsidiaries
(602,842)
-
End of financial year
-
351,768
Group
2024
2023
S$
S$
Current income tax asset
-
535,868
Current income tax liabilities
-
(184,100)
-
351,768
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
51
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
9. Earnings/(loss) per share
(a)
Basic earnings/(loss) per share
Basic earnings/(loss) per share is calculated by dividing the net profit/(loss) attributable to equity holders of the Company by the weighted
average number of ordinary shares outstanding during the financial year.
Continuing operations
Discontinued operations
Total
2024
2023
2024
2023
2024
2023
Net profit/(loss) attributable to equity holders of the
Company (S$)
92,403
(3,633,211) (2,293,334) (11,296,895)
(2,200,931) (14,930,106)
Weighted average number of ordinary shares
outstanding for basic earnings/(loss) per share
352,733,306 357,355,994 352,733,306 357,355,994 352,733,306 357,355,994
Basic earnings/(loss) per share (S$ per share)
0.0003
(0.0102)
(0.0065)
(0.0316)
(0.0062)
(0.0418)
(b)
Diluted earnings/(loss) per share
For the purpose of calculating diluted earnings/(loss) per share, profit/(loss) attributable to equity holders of the Company and the weighted
average number of ordinary shares outstanding are adjusted for the effects of all dilutive potential ordinary shares. The Company has one
category of dilutive potential ordinary shares: performance rights.
The weighted average number of shares on issue has been adjusted as if all dilutive performance rights were exercised. Diluted
earnings/(loss) per share for continuing operations and discontinued operations attributable to equity holders of the Company is calculated
as follows:
Continuing operations
Discontinued operations
Total
2024
2023
2024
2023
2024
2023
Net profit/(loss) attributable to equity holders of the
Company (S$)
92,403
(3,633,211) (2,293,334) (11,296,895)
(2,200,931) (14,930,106)
Weighted average number of ordinary shares
outstanding for basic earnings/(loss) per share
352,733,306 357,355,994 352,733,306 357,355,994 352,733,306 357,355,994
Diluted earnings/(loss) per share (S$ per share)
0.0003
(0.0102)
(0.0065)
(0.0316)
(0.0062)
(0.0418)
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
52
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
10. Cash and cash equivalents
Group
2024
2023
S$
S$
Cash with financial institution
3,473,618
7,424,234
Cash at bank and on hand
744,590 12,213,921
Short-term bank deposits
-
768,103
4,218,208 20,406,258
Company
2024
2023
S$
S$
Cash with financial institution
3,473,618
3,587,341
Cash at bank and on hand
651,810
3,979,892
4,125,428
7,567,233
Acquisition and disposal of subsidiaries
On 8 November 2023, the Group disposed all its stake in 8VI
Holdings Limited and its subsidiaries (“8VI Group”) through capital
reduction by in-specie distribution of its entire interest in 8VI
Group to the Company’s shareholders. The effects of the disposal
on the cash flows of the Group were:
Group
At date of
disposal
S$
Carrying amounts of assets and liabilities as at the
date of disposal:
Cash and cash equivalents
4,914,213
Financial assets, at FVPL
991,125
Trade and other receivables
2,479,977
Tax recoverable
602,842
Property, plant and equipment
3,901,308
Financial assets, at FVOCI
58,669
12,948,134
Less:
Trade and other payables
(2,298,612)
Lease liabilities
(2,769,770)
Bank borrowing
(201,561)
Contract liabilities
(5,691,016)
Net assets derecognised
1,987,175
Less: Investment in associate
(705,000)
Less: Non-controlling interests
(288,906)
Net assets disposed of
993,269
Cash inflows arising from disposal:
Net assets disposed of (as above)
993,269
Capital reduction
(2,909,307)
Reserve
1,916,038
-
Less: Cash and bank balances in subsidiaries
disposed of
(4,914,213)
Net cash outflow on disposal
(4,914,213)
11. Financial assets, at FVPL
Group
2024
2023
(As
reclassified)
S$
S$
Fair value through profit or loss:
Listed securities
- Equity securities - Australia
-
23,567
- Equity securities - India
-
1,534,309
- Equity securities - Hong Kong
-
33,765
- Equity securities - America
6,869,848
1,539,880
- Equity securities - Malaysia
127,118
313,344
- Equity securities – Singapore
-
55,800
- Trading fund 1
-
444,022
6,996,966
3,944,687
Company
2024
2023
S$
S$
Fair value through profit or loss:
Listed securities
- Equity securities - America
6,869,848
819,785
- Equity securities - India
-
1,534,309
- Equity securities - Malaysia
127,118
133,208
- Equity securities - Hong Kong
-
6,065
6,996,966
2,493,367
The instruments are all mandatorily measured at fair value
through profit or loss.
1 As disclosed in Note 12(d) to the financial statements, the
Company entered into an agreement with an individual with the
intention of the individual carrying out investment activities on
behalf of the Company, by virtue of the agreement, the amount
advanced to the individual, amounting to S$269,520, is treated as
investments by the Company and recognised as financial assets,
at FVPL. Due to the high risk nature of the investment and
inadequate risk management procedures in place, the trading
conducted on the online investment platform resulted in a
realised loss of S$269,520 which has been recognised in the
Statement of Comprehensive Income.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
53
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
12. Trade and other receivables
Group
2024
2023
(As
reclassified)
S$
S$
Current
Trade receivables
- Non-related parties (a)
-
107,252
- Affiliated companies
1,268,655
-
Less: Credit loss allowance
(Note 24(b))
-
(67,002)
1,268,655
40,250
Other receivables
- Non-related parties (b)
238,032
238,202
- Others
-
220,296
Less: Credit loss allowance
(225,562)
(225,562)
12,470
232,936
Deposits (c)
-
879,348
Prepayments
10,333
1,579,083
1,291,458
2,731,617
Company
2024
2023
S$
S$
Current
Trade receivables
- Subsidiaries
1,146,598
-
- Affiliated companies
464,223
-
Less: Credit loss allowance
(Note 24(b))
(1,051,618)
-
559,203
-
Other receivables
- Non-related parties (b)
238,032
692,357
- Subsidiaries
-
1,051,618
Less: Credit loss allowance
(225,562) (1,277,180)
12,470
466,795
Prepayments
10,333
44,869
582,006
511,664
(a)
Trade receivables from non-related parties are non-interest
bearing and are generally on 30 to 60 days’ (2023: 30 to 60
days’) terms. There is no other class of financial assets that
is past due and/or impaired except for trade receivables.
Receivables that were past due but not impaired
The Group has no trade receivables from non-related
parties as at 31 March 2024 and has S$269 as at 1 April 2023
that are past due but not impaired. These receivables are
unsecured and the analysis of their aging at the end of the
reporting period is as follows:
Group
2024
2023
S$
S$
Trade receivables past due but
not impaired:
Lesser than 30 days
-
-
31-60 days
-
269
-
269
Receivables that were past due and impaired
There were no receivables that were past due and impaired.
Expected credit losses
The movement in allowance for expected credit losses of
trade receivables computed based on lifetime ECL are as
follows:
Group
2024
2023
S$
S$
Movement in allowance
accounts:
At 1 April
67,002
91,375
Disposal of subsidiaries
(67,002)
-
Write back for the year
-
(17,451)
Currency translation difference
-
(6,922)
At 31 March
-
67,002
Company
2024
2023
S$
S$
Movement in allowance
accounts:
At 1 April
-
-
Addition
1,051,618
-
At 31 March
1,051,618
-
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
54
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
12. Trade and other receivables (continued)
(b)
Included in the other receivables are unsecured loans to
third parties of S$238,032 (2023: S$225,562). The loans
amounting to S$225,562 (2023: S$225,562) were past due
and full allowance for credit losses were made.
(c)
Included in current deposits as at 31 March 2023 are
bankers’ guarantees of S$190,000 and S$218,000 as
required by Global Payments Asia Pacific (Hong Kong
Holding) Limited and Green World FinTech Service Co., Ltd.
respectively in order to provide services in accordance to
the merchant agreements.
(d)
During the financial year, the Company entered into a
profit-sharing agreement with an individual, where the
individual would make investments on behalf of the
Company. Based on the agreement, the Company
advanced an amount of S$269,520 to the individual to carry
out investment activities on behalf of the Company. The
individual placed the entire amount advanced into an online
investment platform. The amount was initially classified as
‘Other Receivables’ and was reclassified to ‘Financial assets,
at FVPL’. Due to the high risk nature of the investment and
inadequate risk management procedures in place, the
trading conducted on the online investment platform
resulted in a realised loss of S$269,520 which has been
recognised in the Statement of Comprehensive Income.
(e)
In the previous financial year, a former subsidiary of the
Group, entered into a similar balance advance arrangement
as disclosed in (d) amounting to S$444,022. As the
underlying substance of the advance is for the intention of
investment, the balance was reclassified to ‘Financial
assets, at FVPL’, the balance as of the previous financial year
end was $444,022. In the current financial year, the balance
formed part of the disposed assets of 8VI Group as disclosed
in Note 10 to the financial statements.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
55
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
13. Property, plant and equipment
Office
premises
S$
Office
equipment
S$
Furniture and
fittings
S$
Motor
vehicles
S$
Total
S$
Group
2024
Cost
Beginning of financial year
5,177,034
1,784,726
2,036,457
94,317
9,092,534
Currency translation differences
-
23,914
16,310
(3,725)
36,499
Disposal
-
(105,883)
(232,772)
(90,592)
(429,247)
Disposal of subsidiaries
(3,555,556) (1,639,317)
(1,541,337)
-
(6,736,210)
Written off
(1,072,684)
-
-
-
(1,072,684)
End of financial year
548,794
63,440
278,658
-
890,892
Accumulated depreciation
Beginning of financial year
1,121,661
1,288,812
685,258
94,317
3,190,048
Currency translation differences
(1)
(31,182)
(33,577)
(3,725)
(68,485)
Depreciation charge (Note 6)
- continuing operations
159,852
-
54,322
-
214,174
- discontinued operations
349,759
288,061
28,219
-
666,039
Disposal
-
(105,883)
(232,772)
(90,592)
(429,247)
Disposal of subsidiaries
(1,064,483) (1,376,368)
(394,050)
-
(2,834,901)
Written off
(193,871)
-
-
-
(193,871)
End of financial year
372,917
63,440
107,400
-
543,757
Net book value
End of financial year
175,877
-
171,258
-
347,135
2023
Cost
Beginning of financial year
5,112,107
1,668,259
2,107,124
100,899
8,988,389
Currency translation differences
(23,402)
(21,574)
(44,582)
(6,582)
(96,140)
Additions
456,635
173,983
46,761
-
677,379
Disposal
-
(359)
(482)
-
(841)
Written off
(368,306)
(35,583)
(72,364)
-
(476,253)
End of financial year
5,177,034
1,784,726
2,036,457
94,317
9,092,534
Accumulated depreciation
Beginning of financial year
584,571
885,015
510,577
100,899
2,081,062
Currency translation differences
(12,449)
(17,130)
(27,256)
(6,582)
(63,417)
Depreciation charge (Note 6)
- continuing operations
879,447
447,222
249,606
-
1,576,275
- discontinued operations
38,398
-
13,413
-
51,811
Disposal
-
-
(201)
-
(201)
Written off
(368,306)
(26,295)
(60,881)
-
(455,482)
End of financial year
1,121,661
1,288,812
685,258
94,317
3,190,048
Net book value
End of financial year
4,055,373
495,914
1,351,199
-
5,902,486
Right-of-use of assets acquired under leasing arrangements are presented together with the owned assets of the same class. Details of such
leased assets are disclosed in Note 18(a).
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
56
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
14. Investments in subsidiaries
Company
2024
2023
S$
S$
Equity investments
Cost
Beginning of financial year
38,061,614 37,838,588
Increase in investment
70,000
400,000
Disposal of subsidiaries
(19,908,848)
(176,974)
End of financial year
18,222,766 38,061,614
Provision for impairment
Beginning of financial year
19,117,169 15,648,562
Charge for the year
6,873,693
3,645,581
Reversal during the year
(394,224)
-
Disposal of subsidiaries
(8,104,641)
(176,974)
End of financial year
17,491,997 19,117,169
Net carrying value
End of financial year
730,769 18,944,445
On 8 November 2023, the Group disposed all its stake in 8VI
Holdings Limited and its subsidiaries (“8VI Group”) through capital
reduction by in-specie distribution of its entire interest in 8VI
Group to the Company’s shareholders.
During the financial year, the Company provided an impairment
loss of S$6,873,693 (2023: S$3,645,581) representing the write-
down of the carrying value of the subsidiaries to the recoverable
amount.
During the financial year, the Company reversed past provided
impairment loss of S$394,224 (2023: Nil) representing the write-
back of the carrying value of the subsidiaries to the recoverable
amount.
The Group has the following subsidiaries as at 31 March 2024 and 2023:
Name
Principal activities
Country of
business/
incorporation
Proportion
of ordinary
shares
directly held
by parent
Proportion
of ordinary
shares held
by the Group
Proportion
of ordinary
shares held
by non-
controlling
interests
2024
2023
2024
2023
2024
2023
%
%
%
%
%
%
Held by the Company:
8 Investment Pte. Ltd.
Business management consultancy
Singapore
100
100
100
100
-
-
VI Fund Management Pte. Ltd.
Dormant
Singapore
100
100
100
100
-
-
8IH Global Limited
Dormant
Mauritius
100
100
100
100
-
-
8VI Holdings Limited
Investment holding and
management consultancy services
Singapore
-
79.6
-
79.6
-
20.4
8Bit Global Pte. Ltd.
Computer programming and data
processing and hosting
Singapore
-
42.0
-
82.6
-
17.4
8IH VCC
Dormant
Singapore
100
100
100
100
-
-
Held through 8VI Holdings Limited:
8VI Global Pte. Ltd.
Seminar and programs organiser
Singapore
-
-
-
79.6
-
20.4
Vastus Wealth Advisory Singapore
Pte. Ltd.
Insurance agencies and agents
Singapore
-
-
-
39.8
-
60.2
METAVI World Pte. Ltd.
Seminar and programs organiser
Singapore
-
-
-
74.3
-
25.7
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
57
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
14. Investments in subsidiaries (continued)
The Group has the following subsidiaries as at 31 March 2024 and 2023: (continued)
Name
Principal activities
Country of
business/
incorporation
Proportion
of ordinary
shares
directly held
by parent
Proportion
of ordinary
shares held
by the Group
Proportion
of ordinary
shares held
by non-
controlling
interests
2024
2023
2024
2023
2024
2023
%
%
%
%
%
%
Held through 8VI Global Pte. Ltd.:
8VI Malaysia Sdn. Bhd.
Seminar and programs organiser
Malaysia
-
-
-
79.6
-
20.4
8VI Taiwan Co., Ltd
Seminar and programs organiser
Taiwan
-
-
-
72.6
-
27.4
Value Investing College Pte. Ltd.
Struck off
Singapore
-
-
-
79.6
-
20.4
Held through 8VI Malaysia Sdn. Bhd.:
8VI FIN Malaysia Sdn. Bhd.
Advisory services
Malaysia
-
-
-
55.7
-
44.3
Held through 8IH Global Limited:
Hidden Champions Fund
Dormant
Mauritius
-
-
100
100
-
-
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
58
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
15. Development of software
Group
2024
2023
S$
S$
Cost
Beginning of financial year
3,956,560
2,581,348
Additions
-
1,375,212
Disposal
(3,956,560)
-
End of financial year
-
3,956,560
Accumulated amortisation and
impairment loss
Beginning of financial year
3,956,560
1,155,996
Amortisation charge
-
1,116,553
Impairment loss
-
1,684,011
Disposal
(3,956,560)
-
End of financial year
-
3,956,560
Net book value
-
-
Impairment
Development software is pertaining to the GoodWhale App
(formerly known as VI App) which was developed by the Group’s
subsidiary, 8Bit Global Pte. Ltd. (“8Bit”), a cash generating unit
(“CGU”).
The recoverable amount of a CGU was determined based on
value-in-use. Cash flow projections used in the value-in-use
calculations were based on financial budgets approved by
management covering a three-year period, with key assumptions
used in the cash flow projections includes budgeted gross margin
based on past performance and its expectations of market
developments, and growth rates used were consistent with
industry forecast.
In the previous financial year, an impairment charge of
S$1,684,011 was made (included within “Marketing and other
operating expenses”) in the statement of comprehensive income.
The impairment charge arose from the expected loss making in
8Bit in subsequent financial years that leads to negative
recoverable amount of the asset, as a result of expected declining
GoodWhale App’s subscription income from customers.
During the financial year the GoodWhale App was disposed to
Goodwhale Pte. Ltd., an associated company of 8VI Holdings
Limited.
16. Financial assets, at FVOCI
Financial assets, at FVOCI comprise of equity securities which are
not held for trading, and for which the Group has made an
irrevocable election at initial recognition to recognise changes in
fair value through OCI rather than profit or loss as these are
strategic investments and the Group considered this to be more
relevant.
Group
2024
2023
S$
S$
Beginning of financial year
687,690
1,308,682
Net (disposal)/additions
(53,841)
356,855
Fair value losses recognised in other
comprehensive income/(loss)
(5,121)
(977,389)
Currency translation differences
-
(458)
End of financial year
628,728
687,690
Company
2024
2023
S$
S$
Beginning of financial year
628,728
5,379,897
Disposal
-
(3,066,953)
Fair value losses recognised in other
comprehensive income
-
(1,684,216)
End of financial year
628,728
628,728
Financial assets at FVOCI are analysed as follows:
Group
2024
2023
S$
S$
Listed securities
-
6,256
Unlisted securities
628,728
681,434
Total
628,728
687,690
Company
2024
2023
S$
S$
Unlisted securities
628,728
628,728
Total
628,728
628,728
The Group has elected to measure these equity securities at
FVOCI due to the Group’s intention to hold these equity
instruments for long term appreciation.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
59
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
17. Trade and other payables
Group
2024
2023
S$
S$
Current
Trade payables – non-related parties
45,319
201,325
Accruals for operating expenses
107,868
829,682
Sale and service tax
-
407,048
Other payables
43,924
274,835
Total
197,111
1,712,890
Non-current
Provision for reinstatement
-
169,460
Company
2024
2023
S$
S$
Current
Trade payables – non-related parties
44,748
7,334
Accruals for operating expenses
96,923
81,419
Amounts due to subsidiaries
1,217,806
8,633,129
Other payables
36,713
79,965
Total
1,396,190
8,801,847
Trade payables are non-interest bearing and are normally settled
on 30-day (2023: 30 day) terms.
18. Leases
The Group as a lessee
Group
2024
2023
S$
S$
Current
127,133
764,607
Non-current
97,802
3,489,124
Total
224,935
4,253,731
Nature of the Group’s leasing activities
The Group leases office premises for the purpose of running
financial education technology activities and back office
operations.
(a)
Carrying amounts
ROU assets classified within property, plant and equipment
2024
2023
S$
S$
Office premises
175,877
4,055,373
(b)
Depreciation charged during the year
Office premises
509,611
917,845
(c)
Interest expense
Interest expense on lease
liabilities
71,179
129,614
(d)
Lease expense not capitalised in lease liabilities
Lease expense – low-value
leases
69,451
18,581
(e)
There is no income for subleasing ROU assets in the financial
year 2024 (2023: S$Nil).
(f)
Total cash outflow for all the leases in the financial year 2024
was S$658,259 (2023: S$955,879).
(g)
There is no addition of ROU assets during the financial year
(2023: S$456,635).
(h)
There is no future cash outflow which is not capitalised in
lease liabilities in 2024 (2023: S$Nil).
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
60
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
18. Leases (continued)
(i)
Reconciliation of lease liabilities arising from financing
activities:
Group
2024
2023
S$
S$
Beginning of financial year
4,253,731
4,800,400
Principal and interest payments
(588,808)
(937,298)
Non-cash changes
- Addition during the year
-
281,956
- Lease modification
(644,137)
-
- Interest expense
71,179
129,614
- Disposal
(2,867,030)
-
- Foreign exchange movement
-
(20,941)
End of financial year
224,935
4,253,731
19. Bank borrowing
Group
2024
2023
S$
S$
Current
-
342,513
Non-current
-
57,086
Total
-
399,599
In the previous financial year, bank borrowing bears fixed interest
at 3% per annum, with a monthly repayment of S$29,082 and is
secured by corporate guarantee given by 8VI Holdings Limited.
The fair value of non-current bank borrowing approximates its
carrying amount as at reporting date. There is no further undrawn
borrowing facilities at the reporting date.
Reconciliation of bank borrowing arising from financing activities.
Group
2024
2023
S$
S$
Beginning of financial year
399,599
731,170
Principal and interest payments
(203,574)
(348,984)
Non-cash changes:
- Interest expense
5,536
17,413
- Disposal of subsidiaries
(201,561)
-
End of financial year
-
399,599
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
61
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
20. Contract liabilities
Group
2024
2023
S$
S$
Current
Advances from customer
-
8,731,221
Non-current
Advances from customer
-
1,296,564
-
10,027,785
Advances from customer represent revenue received from
customers but not yet recognised to the profit or loss as service
has yet to be rendered as at reporting date.
21. Redeemable participating shares
Group
2024
2023
S$
S$
As at beginning of year
-
7,383,512
Proceeds received from fund’s non-
controlling unit holders
-
320,755
Payment to fund’s non-controlling
unit holders
-
(5,707,456)
Share of loss attributable to the unit
holders of redeemable participating
shares
-
(1,592,197)
Currency translation differences
-
(404,614)
As at end of year
-
-
8IH VCC and Hidden Champions Fund are investment funds with
redeemable participating shares. These shares relate to amounts
payable to non-controlling unit holders of the redeemable
participating shares in 8IH VCC and Hidden Champions Fund. The
unit holders are entitled to redeem their shares in cash at the
option of the holders at the value proportionate to the investors
share in the fund’s net assets at the redemption price.
During the previous financial year, the 8IH VCC and Hidden
Champions Fund performed compulsory redemption of all
participating shares held by their investors at the price per
participating share equal to the prevailing funds’ net asset value
per share in accordance with the funds’ constitutions and private
placement memorandums.
22. Share capital and treasury shares
Share capital
Number of
shares
Amount
S$
Group and Company
2024
As at beginning of year
358,138,783 33,731,412
Capital reduction
-
(2,909,307)
Beginning and end of financial year
358,138,783 30,822,105
2023
End of financial year
358,138,783 33,731,412
All issued ordinary shares are fully paid. There is no par value for
these ordinary shares. Fully paid ordinary shares carry one vote
per share and carry a right to dividends as and when declared by
the Company.
On 8 November 2023, the Company disposed all its stake in 8VI
Holdings Limited and its subsidiaries (“8VI Group”) through capital
reduction by in-specie distribution of its entire interest in 8VI
Group to the Company’s shareholders. The issued and paid-up
share capital of the Company was reduced by an amount of
S$2,909,307.
During the financial year, pursuant to the selective share buy-back
resolution approved by shareholders in the annual general
meeting, the Company bought back 9,195,129 treasure shares, by
way of a selective off-market acquisition, for cash considerations
of S$505,732.
Treasury share
Number of
shares
Amount
S$
Group and Company
2024
As at beginning of year
(782,789)
(209,883)
Share buyback
(9,195,129)
(505,732)
Beginning and end of financial year
(9,977,918)
(715,615)
2023
Beginning and end of financial year
(782,789)
(209,883)
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
62
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
23. Other reserves
Group
Company
2024
2023
2024
2023
S$
S$
S$
S$
Composition:
Fair value reserve
(443,413) (12,260,086)
(424,413)
(872,822)
Currency translation reserve
(547,995)
(637,899)
-
-
Capital reserve
-
(2,619,240)
-
(1,638,846)
Employee share plan reserve
-
563,320
-
-
(991,408) (14,953,905)
(424,413) (2,511,668)
Movements:
(i) Fair value reserve
Beginning of financial year
(12,260,086) (11,395,395)
(872,822) (1,072,073)
Financial assets through other comprehensive income
- Fair value losses from financial assets at FVOCI
(5,121)
(864,691)
-
(1,684,216)
Disposal of FVOCI
-
-
-
1,883,467
Disposal of subsidiaries
11,821,794
-
448,409
-
End of financial year
(443,413) (12,260,086)
(424,413)
(872,822)
(ii) Currency translation reserve
Beginning of financial year
(637,899)
(572,635)
-
-
Net currency translation differences of financial statements of foreign
subsidiaries and associated companies
137,090
(113,831)
-
-
Disposal of subsidiaries
(47,186)
48,567
-
-
End of financial year
(547,995)
(637,899)
-
-
(iii) Capital reserve
Beginning of financial year
(2,619,240) (2,229,579)
(1,638,846) (1,638,846)
Movement in equity attributable to non-controlling interest
-
(335,516)
-
-
Disposal of subsidiaries
2,619,240
(54,145)
1,638,846
-
End of financial year
-
(2,619,240)
-
(1,638,846)
(iv) Employee share plan reserve
Beginning of financial year
563,320
1,751,284
-
986,155
Value of employee services
-
1,138,548
-
1,097,946
Wavier of performance rights
-
(2,326,512)
-
(2,084,101)
Disposal of subsidiaries
(563,320)
-
-
-
End of financial year
-
563,320
-
-
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
63
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management
Financial risk factors
The Group’s activities expose it to market risk (including currency risk and price risk), credit risk and liquidity risk. The Group’s overall risk
management strategy seeks to minimise any adverse effects from the unpredictability of financial markets on the group’s financial
performance.
The Board of Directors reviews and agrees policies and procedures for the management of these risks, which are executed by the Chief
Financial Officer.
(a)
Market risk
(i) Currency risk
The Group operates in Asia with dominant operations in Singapore, Malaysia and China. Entities in the Group regularly transact
in currencies other than their respective functional currencies (“foreign currencies”).
Currency risk arises within entities in the Group when transactions are denominated in foreign currencies primarily Malaysian
Ringgit (“MYR”), Australian Dollar (“AUD”), United States Dollar (“USD”), Chinese Renminbi (“RMB”), Hong Kong Dollar (“HKD”),
New Taiwan Dollar (“NTD”) and Indian Rupee (“INR”).
In addition, the Group is exposed to currency translation risk on the net assets in foreign operations. Currency exposure to the
net assets of the Group’s foreign operations in Malaysia and China are managed primarily through transactions denominated in
the relevant foreign currencies.
The Group’s currency exposure based on the information provided to key management is as follows:
MYR
AUD
USD
RMB
HKD
NTD
INR
S$
S$
S$
S$
S$
S$
S$
At 31 March 2024
Financial assets
Cash and cash equivalents, financial
assets, at FVPL and financial assets, at
FVOCI
127,118
9,327 10,622,498
-
-
-
-
127,118
9,327 10,622,498
-
-
-
-
Financial liabilities
Trade and other payables
-
(5,025)
-
-
-
-
-
-
(5,025)
-
-
-
-
-
Net financial assets
127,118
4,302 10,622,498
-
-
-
-
Currency exposure of financial assets
net of those denominated in the
respective entities’ functional
currencies
127,118
4,302 10,622,498
-
-
-
-
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
64
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management (continued)
(a)
Market risk (continued)
(i) Currency risk (continued)
MYR
AUD
USD
RMB
HKD
NTD
INR
S$
S$
S$
S$
S$
S$
S$
At 31 March 2023
Financial assets
Cash and cash equivalents, financial
assets, at FVPL and financial assets, at
FVOCI
1,777,920
391,364 11,588,275
-
33,765
438,469
1,534,309
Trade and other receivables
187,618
-
156,437
-
-
543,577
-
1,965,538
391,364 11,744,712
-
33,765
982,046
1,534,309
Financial liabilities
Trade and other payables
(646,124)
(7,180)
(52,489)
(3,971)
-
(50,505)
-
Lease liabilities
(57,517)
-
-
-
-
(108,319)
-
(703,641)
(7,180)
(52,489)
(3,971)
-
(158,824)
-
Net financial assets/(liabilities)
1,261,897
384,184 11,692,223
(3,971)
33,765
823,222
1,534,309
Currency exposure of financial
assets/(liabilities) net of those
denominated in the respective entities’
functional currencies
143,988
384,184 10,833,230
(3,971)
33,765
18,516
1,534,309
The Company’s currency exposure based on the information provided to key management is as follows:
MYR
AUD
USD
HKD
INR
S$
S$
S$
S$
S$
At 31 March 2024
Financial Assets
Cash and cash equivalents, financial assets, at FVPL and financial
assets, at FVOCI
127,118
8,019 10,622,498
-
-
Financial Liabilities
Trade and other payables
-
(5,025)
-
-
-
Net financial assets
127,118
2,994 10,622,498
-
-
Currency exposure of financial assets net of those denominated in
the respective entities’ functional currencies
127,118
2,994 10,622,498
-
-
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
65
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management (continued)
(a)
Market risk (continued)
(i)
Currency risk (continued)
The Company’s currency exposure based on the information provided to key management is as follows (continued):
MYR
AUD
USD
HKD
INR
S$
S$
S$
S$
S$
At 31 March 2023
Financial Assets
Cash and cash equivalents, financial assets, at FVPL and financial
assets, at FVOCI
133,208
151,635
7,536,960
6,065
1,534,309
Financial Liabilities
Trade and other payables
-
(5,514)
-
-
-
Net financial assets
133,208
146,121
7,536,960
6,065
1,534,309
Currency exposure of financial assets net of those denominated in
the respective entities’ functional currencies
133,208
146,121
7,536,960
6,065
1,534,309
If the MYR, AUD, USD, RMB, HKD, NTD and INR change against the SGD by 5% (2023: 1%), 1% (2023: 5%), 2% (2023: 0%), 4%
(2023: 4%), 2% (2023: 0%), 0% (2023: 3%) and 0% (2023: 2%) respectively with all other variables including tax rate being held
constant, the effects arising from the net financial asset/(liabilities) that are exposed to currency risk will be as follows:
Increase/(Decrease)
2024
2023
Profit
after tax
Other
comprehensive
income
Loss
after tax
Other
comprehensive
loss
S$
S$
S$
S$
Group
MYR against SGD
- Strengthened
6,356
-
(8,266)
-
- Weakened
(6,356)
-
8,266
-
AUD against SGD
- Strengthened
43
-
(38,265)
-
- Weakened
(43)
-
38,265
-
USD against SGD
- Strengthened
212,450
-
(179,864)
(568)
- Weakened
(212,450)
-
179,864
568
RMB against SGD
- Strengthened
-
-
(296)
-
- Weakened
-
-
296
-
HKD against SGD
- Strengthened
-
-
(561)
-
- Weakened
-
-
561
-
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
66
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management (continued)
(a)
Market risk (continued)
(i)
Currency risk (continued)
Increase/(Decrease)
2024
2023
Profit
after tax
Other
comprehensive
income
Loss
after tax
Other
comprehensive
loss
S$
S$
S$
S$
NTD against SGD
- Strengthened
-
-
-
(1,229)
- Weakened
-
-
-
1,229
INR against SGD
- Strengthened
-
-
(127,348)
-
- Weakened
-
-
127,348
-
Company
MYR against SGD
- Strengthened
6,356
-
(7,740)
-
- Weakened
(6,356)
-
7,740
-
AUD against SGD
- Strengthened
30
-
(14,554)
-
- Weakened
(30)
-
14,554
-
USD against SGD
- Strengthened
212,450
-
(125,114)
-
- Weakened
(212,450)
-
125,114
-
HKD against SGD
- Strengthened
-
-
(101)
-
- Weakened
-
-
101
-
INR against SGD
- Strengthened
-
-
(127,348)
-
- Weakened
-
-
127,348
-
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
67
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management (continued)
(a)
Market risk (continued)
(ii) Price risk
The Group is exposed to equity securities price risk arising from the investments held by the Group which are classified on the
consolidated statement of financial position at fair value through profit or loss. These securities are listed in Australia, India,
Taiwan, Hong Kong, America, Malaysia and Singapore. To manage its price risk arising from investments in equity securities, the
Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
If prices for equity securities listed in Australia, India, Taiwan, Hong Kong, America, Malaysia and Singapore had changed by 0%
(2023: 11%), 0% (2023: 11%), 0% (2023: 33l%), 0% (2023: 33%), 38% (2023: 13%), 38% (2023: 11%) and 0% (2023: 11%)
respectively with all other variables including tax rate being held constant, the effects on profit after tax and other comprehensive
income/(loss) would have been:
Increase/(Decrease)
2024
2023
Profit
after tax
Other
comprehensive
income
Loss
after tax
Other
comprehensive
loss
S$
S$
S$
S$
Group
Listed in Australia
- increased by
-
-
(978)
-
- decreased by
-
-
978
-
Listed in India
- increased by
-
-
(63,674)
-
- decreased by
-
-
63,674
-
Listed in Taiwan
- increased by
-
-
-
(1,481)
- decreased by
-
-
-
1,481
Listed in Hong Kong
- increased by
-
-
(2,242)
-
- decreased by
-
-
2,242
-
Listed in America
- increased by
2,610,542
-
(38,343)
(1,026)
- decreased by
(2,610,542)
-
38,343
1,026
Listed in the Malaysia
- increased by
11,441
-
(13,003)
(313)
- decreased by
(11,441)
-
13,003
313
Listed in the Singapore
- increased by
-
56,586
(2,316)
(31,436)
- decreased by
-
(56,586)
2,316
31,436
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
68
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management (continued)
(a)
Market risk (continued)
(ii) Price risk (continued)
Increase/(Decrease)
2024
2023
Profit
after tax
Other
comprehensive
income
Loss
after tax
Other
comprehensive
loss
S$
S$
S$
S$
Company
Listed in India
- increased by
-
-
(63,674)
-
- decreased by
-
-
63,674
-
Listed in Hong Kong
- increased by
-
-
(403)
-
- decreased by
-
-
403
-
Listed in America
- increased by
2,610,542
-
(20,413)
-
- decreased by
(2,610,542)
-
20,413
-
Listed in Singapore
- increased by
-
56,586
-
(14,201)
- decreased by
-
(56,586)
-
14,201
Listed in Malaysia
- increased by
11,441
-
(5,528)
-
- decreased by
(11,441)
-
5,528
-
(b)
Credit risk
Credit exposure to an individual counterparty is restricted by credit limits that are approved by the Board of Directors based on
ongoing credit evaluations. The counterparty’s payment pattern and credit exposure are continuously monitored at the entity level
by the respective management and at the Group level by the Executive Management.
Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment
plan with the Group. The Group categorises a loan or receivable for write off when a debtor fails to make contractual payments
greater than a year past due based on historical collection trend. Where loans or receivables have been written off, the company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are
recognised in profit or loss.
The Group applies the simplified approach to providing for expected credit losses prescribed by FRS 109, which permits the use of
the lifetime credit loss provision for all trade receivables.
To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and days past
due. In calculating the expected credit loss rates, the Group considers historical loss rates for each category of customers, and adjusts
for forward-looking macroeconomic data.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
69
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management (continued)
(b)
Credit risk (continued)
The Group and Company uses four categories of internal credit risk rating for its financial assets at amortised costs. These four
categories reflect the respective credit risk and how the loan loss provision is determined for each of those categories.
A summary of assumptions underpinning the Group’s expected credit loss model is as follow:
Group and Company’s
category of internal
credit rating
Group and Company’s definition
of category
Basis for recognition of
expected credit loss provision
Performing
Customers have a low risk of default and a strong capacity to meet
contractual cash flows.
12-month expected credit
losses
Underperforming
Loans for which there is a significant increase in credit risk. As
significant increase in credit risk is presumed if interest and/or
principal repayments are 30 days past due.
Lifetime expected credit
losses
Non-performing
Interest and/or principal repayments are 60-365 days past due.
Lifetime expected credit
losses
Write-off
Interest and/or principal repayments are 365 days past due and
there is no reasonable expectation of recovery.
Asset is written off
Movements in credit loss allowance for financial assets are set out as follows:
Group
Trade
receivables
Other financial
assets at
amortised costs
Stage 1
Total
S$
S$
S$
2024
Balance at 1 April 2023
67,002
225,562
292,564
Changes in credit loss:
- Disposal of subsidiaries
(67,002)
-
(67,002)
Balance at 31 March 2024
-
225,562
225,562
2023
Balance at 1 April 2022
91,375
225,562
316,937
Changes in credit loss recognised in profit or loss:
- Decrease due to credit risk
(17,451)
-
(17,451)
- Currency translation differences
(6,922)
-
(6,922)
Balance at 31 March 2023
67,002
225,562
292,564
Company
Trade
receivables
Other financial
assets at
amortised costs
Stage 1
Total
S$
S$
S$
2024
Balance at 1 April 2023
-
1,277,180
1,277,180
Changes in credit loss recognised in profit or loss:
- Increase/(decrease) due to credit risk
1,051,618
(1,051,618)
-
Balance at 31 March 2024
1,051,618
225,562
1,277,180
2023
Balance at 1 April 2022
-
225,562
225,562
Changes in credit loss recognised in profit or loss:
- Increase due to credit risk
-
1,051,618
1,051,618
Balance at 31 March 2023
-
1,277,180
1,277,180
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
70
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management (continued)
(b)
Credit risk (continued)
The Group does not have any trade receivables from non-related parties as at 31 March 2024. The Group has assessed that its
affiliated companies (previously its subsidiaries) have strong financial capacity to meet the contractual obligation to repay the trade
receivables from affiliated companies of S$1,268,655 and considered to have low credit risk.
The Company has assessed that its subsidiaries has high credit risk in repaying its trade receivables from subsidiaries of S$1,146,598
and has made a credit loss allowance of S$1,051,618.
The Group’s credit risk exposure in relation to trade receivables from non-related parties, under FRS 109 as at 31 March 2023 are set
out in the provision matrix as follows:
Past due
Group
Current
Within 30
days
30 to 60
Days
61-90
days
More than
90 days
Total
Expected loss rate
0%
0%
5%
0%
100%
Gross carrying amount (S$)
39,982
-
283
-
66,987
107,252
Credit loss allowance (S$)
-
-
(15)
-
(66,987)
(67,002)
Trade receivables
The impairment of financial assets was assessed based on the incurred loss impairment model. Individual receivables which were
known to be uncollectible were written off by reducing the carrying amount directly. The other receivables were assessed collectively,
to determine whether there was objective evidence that an impairment had been incurred but not yet identified.
The Group considered whether there was evidence if any of the following indicators were present:
• Significant financial difficulties of the debtor;
• Probability that the debtor will enter bankruptcy or financial reorganisation; and
• Default or delinquency in payments (more than 90 days overdue).
Financial assets that are neither past due nor impaired
Financial assets that are neither past due nor impaired are mainly deposits with banks with high credit-ratings assigned by
international credit-rating agencies. Receivables that are neither past due nor impaired are substantially companies with a good
collection track record with the Group and Company.
(c)
Liquidity risk
Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents and the ability to close out market
positions at a short notice. At the reporting date, assets held by the Group and the Company for managing liquidity risk included cash
and short-term deposits as disclosed in Note 10.
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
71
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management (continued)
(c)
Liquidity risk (continued)
The table below analyses non-derivative financial liabilities of the Group and the Company into relevant maturity groupings based on
the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying amounts as the impact of discounting is not significant.
Less than
1 year
Between
1 and
5 years
More than
5 years
S$
S$
S$
Group
At 31 March 2024
Trade and other payables
197,111
-
-
Lease liabilities
132,000
99,000
-
At 31 March 2023
Trade and other payables, excluding sales and service tax
1,305,842
-
-
Lease liabilities
764,607
2,832,647
656,477
Bank borrowing
352,788
58,799
-
Company
At 31 March 2024
Trade and other payables
1,396,190
-
-
At 31 March 2023
Trade and other payables
8,801,847
-
-
(d)
Capital risk
Management controls the capital of the Group in order to maintain a good debt to equity ratio, provide the shareholders with
adequate returns and to ensure that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
There are externally imposed capital requirements on the Group as disclosed in Note 14.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in
response to changes in these risks and in the market. These responses include the management of debt levels, distributions to
shareholders and share issues.
(e)
Fair value measurements
The table below presents assets and liabilities measured and carried at fair value and classified by level of the following fair value
measurement hierarchy:
(i)
quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(ii)
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices) (Level 2); and
(iii) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
72
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
24. Financial risk management (continued)
(e)
Fair value measurements (continued)
Level 1
Level 2
Level 3
Total
S$
S$
S$
S$
Group
2024
Assets
Financial assets, at FVPL
6,996,966
-
-
6,996,966
Financial assets, at FVOCI
-
-
628,728
628,728
Total assets
6,996,966
-
628,728
7,625,694
2023
Assets
Financial assets, at FVPL
3,944,687
-
-
3,944,687
Financial assets, at FVOCI
6,256
-
681,434
687,690
Total assets
3,950,943
-
681,434
4,632,377
Company
2024
Assets
Financial assets, at FVPL
6,996,966
-
-
6,996,966
Financial assets, at FVOCI
-
-
628,728
628,728
Total assets
6,996,966
-
628,728
7,625,694
2023
Assets
Financial assets, at FVPL
2,493,367
-
-
2,493,367
Financial assets, at FVOCI
-
-
628,728
628,728
Total assets
2,493,367
-
628,728
3,122,095
There were no transfers between levels 1 and 2 during the year.
The fair value of financial instruments traded in active markets (such as fair value through profit and loss and financial assets through
other comprehensive income) is based on quoted market prices at the reporting date. The quoted market price used for financial
assets held by the Group is the current bid price. These instruments are included in Level 1.
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group
uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. Where a
valuation technique for these instruments is based on significant unobservable inputs, such instruments are classified as Level 3. Level
3 instruments include unquoted equity securities which fair values are measured based on Guideline Public Company Method, a
market approach which values the underlying investee based on trading multiples derived from publicly traded companies that are
similar to the investee. The steps taken in applying the Guideline Public Company Method include identifying comparable public
companies, adjusting the guideline public company multiples for differences in the size and risk of these companies compared to the
investee, and then applying the adjusted pricing multiples from the representative companies.
The carrying amount less impairment provision of trade receivables and payables are assumed to approximate their fair values.
(f)
Financial instruments by category
Group
Company
2024
2023
2024
2023
S$
S$
S$
S$
Financial assets, at FVPL
6,996,966
3,944,687
6,996,966
2,493,367
Financial assets, at FVOCI
628,728
687,690
628,728
628,728
Financial assets at amortised cost
5,499,333
22,002,814
4,697,101
8,034,028
Financial liabilities at amortised cost
422,046
5,959,172
1,396,190
8,801,847
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2024
73
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
25. Related party transactions
In addition to the information disclosed elsewhere in the financial
statements, the following transactions took place between the
Group and related parties at terms agreed between the parties.
(a)
Transactions with related parties
Group
2024
2023
S$
S$
Sales of services to affiliated
companies
135,700
-
Purchases of goods and
services from other
related party
203,000
232,000
Other related party comprise of a company which a Group
key management’s close family member has significant
influence.
(b)
Directors and key management personnel compensation
Directors and key management personnel compensation is
as follows:
Group
2024
2023
S$
S$
Wages, salaries and fees
694,709
1,233,944
Employer’s contribution to
defined contribution
plans, including Central
Provident Fund
52,938
61,200
Employee share plan
-
1,136,495
747,647
2,431,639
26. Segment information
The continuing operations of the Group operates in a single
business segment and operates primarily as a unified entity.
Management has assessed the business activities and
organizational structure and determined that the Group's
continuing operations are not comprised of distinct business
segments as defined by the relevant accounting standards.
As a result, the Company is not required to disclose segment
information in accordance with FRS 8, Operating Segments. The
operating decisions are made and performance is evaluated on a
consolidated basis. Therefore, no separate segment reporting is
presented in these financial statements.
The financial information presented in the consolidated financial
statements represents the entire activities of the Group, and the
management believes that such presentation provides a
comprehensive view of the Company's financial position, results
of operations, and cash flows.
27. Discontinued operations
During the financial year, on 31 October 2023, the Group
completed a significant corporate action involving a capital
reduction and the distribution of CHESS Depository Interests
(CDIs) in 8VI Holdings Limited (8VI) to its shareholders. As a result
of this action, the Group ceased to have control over 8VI and its
subsidiaries (collectively, the 8VI Group).
In the prior financial year, the Group wound down its fund
management business and carried out a compulsory redemption
of all participating shares held by unit holders of the Hidden
Champions Fund and 8IH VCC (“Funds”). The redemption was
executed at the price per participating share equal to the
prevailing Funds’ net asset value per share, in accordance with the
Funds’ constitutions and private placement memorandums. This
discontinuation process was completed by 31 March 2023.
The results for the entire 8VI Group and the fund management
business have been presented separately in the condensed
consolidated
statement
of
comprehensive
income
as
“Discontinued operations” for the financial year ended 31 March
2024.
The results of the discontinued operations are as follows:
Group
2024
2023
S$
S$
Revenue
5,088,749
16,299,675
Investment losses
-
(3,822,467)
Other losses
(293,329)
(923,138)
Expenses
(7,682,220)
(25,946,409)
Finance cost
(56,426)
(121,394)
Share of loss of investment in
associated companies
(218,818)
-
Share of loss attributable to the unit
holders of redeemable
participating shares
-
1,592,197
Loss before tax from discontinued
operations
(3,162,044)
(12,921,536)
Income tax expense/(credit)
112,717
(720,851)
Loss after tax from discontinued
operations
(3,049,327)
(13,642,387)
The net cash flows incurred by the discontinued operations are,
as follows:
Group
2024
2023
S$
S$
From operating activities
(1,871,485)
(4,444,276)
From investing activities
(4,914,213)
(2,389,941)
From financing activities
(622,900)
(6,506,299)
Net cash outflow
(7,408,598)
(13,340,516)
For personal use only
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2023
74
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
28. New or revised accounting standards and
interpretations
Below are the mandatory standards, amendments and
interpretations to existing standards that have been published,
and are relevant for the Group’s accounting periods beginning on
or after 1 April 2024 and which the Group has not early adopted.
Amendments to FRS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current (effective for
annual periods beginning on or after 1 January 2024)
The narrow-scope amendments to FRS 1 Presentation of Financial
Statements clarify that liabilities are classified as either current or
non-current, depending on the rights that exist at the end of the
reporting period. Classification is unaffected by the expectations
of the entity or events after the reporting date (e.g. the receipt of
a waiver or a breach of covenant).
Covenants of loan arrangements will not affect classification of a
liability as current or non-current at the reporting date if the
entity must only comply with the covenants after the reporting
date. However, if the entity must comply with a covenant either
before or at the reporting date, this will affect the classification as
current or non-current even if the covenant is only tested for
compliance after the reporting date.
The amendments require disclosures if an entity classifies a
liability as non-current and that liability is subject to covenants
that the entity must comply with within 12 months of the
reporting date. The disclosures include:
•
the carrying amount of the liability
•
information about the covenants, and
•
facts and circumstances, if any, that indicate that the entity
may have difficulty complying with the covenants.
The amendments also clarify what SFRS(I) 1-1 means when it
refers to the ‘settlement’ of a liability. Terms of a liability that
could, at the option of the counterparty, result in its settlement
by the transfer of the entity’s own equity instrument can only be
ignored for the purpose of classifying the liability as current or
non-current if the entity classifies the option as an equity
instrument. However, conversion options that are classified as a
liability must be considered when determining the current/non-
current classification of a convertible note.
The Group does not expect any significant impact arising from
applying these amendments.
29. Comparative figures
During the financial year, the Company modified the classification
of ‘Trade and other receivables’ and ‘Financial assets, at FVPL’ to
reflect more appropriately the way in which economic benefits
are derived from its use. Comparative amounts in the statement
of financial position and respective notes to accounts were
reclassified for consistency. As a result, S$444,022 was
reclassified from ‘Trade and other receivables’ to ‘Financial
assets, at FVPL’. Since the amounts are reclassifications within the
statement of financial position, this reclassification did not have
any effect on the statement of comprehensive income and
statement of changes in equity.
30. Authorisation of financial statements
These financial statements were authorised for issue in
accordance with a resolution of the Board of Directors of 8I
Holdings Limited on 25 July 2024.
For personal use only
ADDITION INFORMATION
75
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Shareholders Information as at 24 July 2024
8I Holdings Limited – Ordinary Shares
The Company has ordinary shares on issue. These are listed on the Australian Securities Exchange under ASX code: 8IH. Details of trading
activity are published daily by electronic information vendors. All ordinary shares carry one vote per share without restriction.
Analysis of Shareholders and CDI Holders*
Category (size of holding)
Number of
holders
Number of
shares
% of issued
capital
1 – 1,000
28
9,606
0.00%
1,001 – 5,000
78
293,274
0.08%
5,001 – 10,000
61
554,033
0.16%
10,001 – 100,000
421
19,271,591
5.54%
100,001 – and over
226
328,032,361
94.22%
814
348,160,865
100.00%
The number of investors holding less than a marketable parcel of 41,667 8IH shares (based on a share price of A$0.012) was 387. They hold
6,328,747 8IH shares in total .
Twenty Largest Shareholders and CDI Holders*
Registered Holder
Number of
Shares
% of issued
capital
1.
Chee Kuan Tat, Ken
86,885,009
24.96%
2.
Clive Tan Che Koon
65,140,000
18.71%
3.
BNP Paribas Noms Pty Ltd
46,267,818
13.29%
4.
Citicorp Nominees Pty Limited
29,252,332
8.40%
5.
HSBC Custody Nominees (Australia) Limited
19,408,010
5.57%
6.
Philip John Raff
8,006,840
2.30%
7.
Clarence Wee Kim Leng
2,063,400
0.59%
8.
Lim Wei Lin
2,000,000
0.57%
9.
Alex Chia Che Keng
1,398,140
0.40%
10. Hor Chook Lam
1,348,737
0.39%
11. Hue Kuan Yew
1,203,914
0.35%
12. Fance Chua Meon Keng
1,118,000
0.32%
13. Loo Tian Guan
1,107,203
0.32%
14. Kang Tien Hock Edwin
1,105,664
0.32%
15. Roger Ho Tian Teck
1,024,099
0.29%
16. Yap Pei Koon
1,020,872
0.29%
17. Willyama Asset Management Pty Ltd
923,556
0.27%
18. Tan Chong Yan
870,020
0.25%
19. Lau Eng Seng
776,243
0.22%
20. Rodney Tay
710,836
0.20%
ALL OTHER SHAREHOLDERS
76,530,172
21.98%
Total
348,160,865
100.00%
Notes
* CDI Holders are holder of CHESS Depository Interests issued by CHESS Depository Nominees Pty Limited, where each CDI represents a
beneficial interest in one ordinary share.
For personal use only
ADDITION INFORMATION
76
8I Holdings Limited and its Subsidiaries | Annual Report FY2024
Shareholders Information as at 24 July 2024 (continued)
Substantial Shareholders and CDI Holders**
Name
Direct Interest
Shares
% of voting
power
Deemed
Interest Shares
% of voting
power
Chee Kuan Tat, Ken
86,885,009
24.96%
-
-
Clive Tan Che Koon
65,140,000
18.71%
-
-
Notes
** This table is compiled on the basis that each holding of CDIs is a separate holding and accordingly, the holding of shares by CHESS
Depository Nominees Pty Limited is ignored.
ASX Listing Rule 4.10.18
Current On-Market Buy-Back
There is no current on-market buy-back arrangement for the
Company.
ASX Listing Rule 4.10.20
Investment
The Group had a total of 25 transactions in securities during the
financial year ended 31 March 2024 and has paid or accrued
brokerage and management fees totalling S$106,554 and S$Nil
respectively. As at 31 March 2024, the Group held investment in
Autowealth Private Limited, Alphabet Inc-CL A, Amplify ETF,
Genting BHD, Paypal Holdings Inc, Vanguard Total Bond Market,
Vanguard Total Intl Stock and Vanguard Total Stock Mkt ETF.
Corporate Information
Company registration
number
201414213R
ARBN
601 582 129
Registered office
(Singapore)
1557 Keppel Road #01-01
Singapore 089066
Registered office
(Australia)
C/- SmallCap Corporate Pty Ltd, Suite 6,
295 Rokeby Road, Subiaco WA, Australia,
6008
Tel:
+61 (8) 6555 2950
Fax:
+61 (8) 6166 0261
Share registrar
Boardroom Pty Limited
Level 7, 207 Kent Street, Sydney, NSW,
Australia 2000
Tel:
+61 (2) 9290 9600
Fax:
+61 (2) 9279 0664
Stock exchange
listing
8I Holdings Limited shares are listed on
the Australian Securities Exchange (ASX
code: 8IH)
For personal use only
For personal use only
8I Holdings Limited
(Incorporated in the Republic of Singapore)
Company Registration Number: 201414213R
ARBN 601 582 129
www.8iholdings.com
Offices
Singapore
1557 Keppel Road #01-01 Singapore 089066
Australia
C/- SmallCap Corporate Pty Ltd, Suite 6, 295 Rokeby Road, Subiaco WA, Australia, 6008
T: +61 (8) 6555 2950
F: +61 (8) 6166 0261
Follow Us On:
Facebook:
www.facebook.com/8IHoldings
Linkedin:
www.linkedin.com/company/8iholdings
For personal use only