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8VI Holdings Limited
FY2021 Annual Report
{
= [ Smarter ]
= [ Faster ]
= [ Easier ]
Principle
const constant = (
const
const Speed
const Mode
return (
< FinEduTech >
);
);
// How we continue to prioritise our key ideas?
$orderBy = array(
=>’DESC’,
‘ Digitalisation ’
‘ Talent ’
=>’DESC’,
‘ Expand Addressable Market ’
‘ Widen Product Offerings’
=>’DESC’,
=>’DESC’,
// Results achieved?
$this->db->from->
Investment Intelligence
as a Service (IIAAS)
}
?>
Coding Towards
a Smarter
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100,0010 01
At our core, 8VI’s codes of being rooted in FinEduTech,
driving lifelong learning and community exchange
through technology, and empowering everyone to
achieve sustainable wealth; have now been fully written
and embedded within our value system.
We are now ready to look forward and start coding for
a smarter future, having pivoted our business model
successfully. With all the right elements in place to
support our growth, 8VI Holdings will look to deepen
and broaden our business offerings and strategies to
ensure we continue to deliver value for our subscribers
as well as our shareholders in the long-term.
PRELUDE
We have almost fully completed our digitalisation
journey in FY2021 and have successfully achieved a few
significant goals we have put in place in the last few
years. With digitalisation, we are doing more with less
every day.
VI App now has a stable base of subscribers, surpassing
its own target in record time. The regulatory clearance
granted by the Monetary Authority of Singapore for
VI App as a Licensed Financial Adviser means that
we can demonstrate more conviction on VI Analysis’
research and development and put forward detailed
recommendations.
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While we have undoubtedly set new records in terms of
its earnings and operations this year, we are also looking
further ahead into plans to invest heavily in talent
acquisition and the right skill sets to bring our Group
forward.
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CONTENTS
About 8VI Holdings Limited
VI App
VI College
VI Community
Letter from the Chairman
Financial Highlights
Operating and Financial Review
Board of Directors
Key Management
Corporate Structure
Engaging Our Team Members
Playing Our Part For Communities
Corporate Governance Statement
Remuneration Report
Directors’ Statement
Independent Auditors’ Report
Consolidated Statement of Financial Position - Group
Statement of Financial Position - Company
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Equity
Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Additional Information
1
2 - 3
4 - 5
6
7 - 9
10
11 - 18
19 - 20
21 - 22
23
24
25
26 - 35
36 - 39
40 - 44
45 - 48
49
50
51
52 - 53
54
55
56 - 100
101- 102
With numerous offices across the Asia Pacific region, VI
College supports a community of value investors from
29 cities globally through its flagship “VI Bootcamp”
and other advanced programmes. As the region’s
leading FinEduTech provider, VI College leverages the
power of technology and transforms the perception and
application of value investing.
About 8VI Holdings Limited
>> Invest Smarter, Faster, Easier
8VI Holdings Limited (“8VI”) is a
Singapore-based FinEduTech company
operating under the brand name VI.
in 2008, VI
(read as “vee”)
is the
Established
in Value
representation of our beliefs and roots
Investing and empowers everyone
to achieve
sustainable wealth as part of their mission to make
investments smarter, faster and easier. At VI, we offer
results-oriented and process-driven analysis powered
by technology, as well as promote investor education
and knowledge exchange on a single platform.
VI App, a proprietary stock analysis tool developed
through 8BIT Global Pte Ltd (“8BIT Global”), crunches
traditional financial data and simplifies the complex
stock analysis and decision-making process for equity
investors into easy-to-use visuals under a comprehensive
framework. As a licensed Financial Adviser approved
by the Monetary Authority of Singapore, 8BIT Global
provides financial advice on securities and units in
collective investment schemes through research analyses
and research reports, through VI App.
Key Markets
>> Spreading smart investing knowledge to the world
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Supporting a
global community
of value investors
since
2008
Offices in
4
cities: Singapore,
Malaysia, Shanghai,
Taiwan
Presence across
29
cities globally
1
VI App
>> Smart stock analysis and screening tool
Developed by 8BIT Global, licensed by the Monetary Authority of Singapore.
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We strive to help you build your wealth by
investing smarter, faster and easier through
a single platform.
Seize control of the stock market and get set for real
results as you connect with users within the VI Community
through the app’s Social Bubbles. VI App simplifies all
the key essential ratios which makes businesses easier
to understand, and identifies winning stocks across 25
stock exchanges, 4 continents and 42,000 companies to
compound your wealth.
Within the VI App, you can be assured of deeper insights
into business models, accounting risk, intrinsic value, and
easily track your personal watchlist of stocks, gains and
losses – across multiple portfolios – in one place.
KEY BENEFITS
Powered by
technology
Distils complex stock
analysis processes into easy-
to-use visuals with a
comprehensive framework
Unique and
practical features
Promotes investor
education and knowledge
exchange on a
single platform
Integrated offering
on a single app
Access VI College
and its offerings on
VI App as a
one-stop platform
2
VI App (Cont’d)
> VI Screener
- Search and screen companies
with great potential that suit
your investment preference in
seconds
> VI Watchlist
- Potential companies to
watch, organised into one
space, with consolidated
view of companies for easy
monitoring, and notifications
when opportunities arise
> VI Portfolio
- Keeps a record of investment
positions, allows tracking
and monitoring and shows
portfolio performance at a
glance
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> VI Analysis
- VI Risk Rating – Identifies
high-risk stocks, corporate
governance issues or
accounting treatments,
vigorously supported by
backtesting
- VI Star Chart – Comprehensive
snapshot of a company’s
performance based on
profitability, financial health,
growth, assets and dividends
- VI Line – Smart algorithms
to calculate intrinsic value
of a company, calculates
Margin-of-Safety based on
different valuation methods
and provides quick overview
of valuation vs price of
companies
25
stock exchanges
> VI Social Bubble
l
- Social media module for
all users which encourages
exchange of investment
opinions and ideas,
aggregates market sentiments
and improves important
information flow
42,000+
companies covered
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VI College
>> Spreading Value Investing knowledge to the World
Established since
2008
Offices in Singapore, Malaysia,
Taiwan and Shanghai
Supporting a community of
value investors globally
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FLAGSHIP PROGRAMMES
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OTHER PROGRAMMES
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VI Bootcamp
An investment programme conducted in English and Mandarin designed to impart
fundamental knowledge in value investing with hands-on practical learning to build your
financial portfolio through intelligent stock investments and passive income.
VI OS+
Learn the mechanics of an option contract and how it behaves. Use it to complement
your value investing strategy by amplifying your returns and at the same time reduce
your risks.
ReWealth
Called “the most important financial class you will ever attend”; you deserve to lead a
life of financial abundance and joy, and it will not happen unless you choose to fix your
wealth container today.
Infinite Wealth
A holistic personal development and mentoring program – from business strategies,
stock investing, healthy living to personal relationships.
VI Summit
Since 2012, VI Summit is the largest gathering of value investors in Asia which features
renowned investors and fund managers, as well as some of the best investing minds
around the world.
VI REITs
Understand the different kind of REITs and their characteristics as well as key things to
look out for to protect your investment. Learn about advanced REITs valuation strategies
accompanied with real case studies.
VI Xponential Growth
An intensely packed 2.5 days programme with ground-breaking content which will
transform the way you view stocks with a single aim: to give you ultimate clarity on which
stocks have the best growth potential.
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VI College (Cont’d)
Edutainment & Outreach
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Behind the Stock
Dive deep and have a look behind the curtains on the latest trending stocks in this
YouTube web series with our VI College speaker and trainer.
Money Money Home
A financial literacy programme about the importance of managing personal and home
finance in an easy-to-comprehend, light-hearted manner.
Bai Gu Jing
Jointly created by Money Money Home and VI, Bai Gu Jing is a new talk show which
shares insights on noteworthy listed companies around the word using value investing
methodology, bringing new investors into the world of investing with an eye on superior
business models, excellent management, and optimal value and prices.
Bijak Labur
A series focused on sharing of knowledge and exemplary stories in financial planning,
business models as well as the advantages and risks of stock investing.
Will Be Good
Will Be Good explores and discusses sensible approaches to improve various aspects
of one’s personal growth and financial wellness in conjunction with trending topics and
news in Taiwan.
投资金股追
A series which provides a quick understanding and overview on noteworthy companies
around the world, providing viewers with the opportunity with a deeper understanding
of a company’s business model and performance, while diving into the latest trends and
business models.
深VI一口气
A podcast which covers different aspects of what makes a person a better investor
including personal development plans, motivational talks, as well as financial
management and investment strategies. The series also explores and discusses current
events and global developments in a relatable and light-hearted fashion.
VI Channel
A dedicated channel featuring a variety of talkshow programmes, discussing trending
topics around stocks, markets, and investing opportunities and strategies.
5
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VI Community
>> Value investors brought together by VI College and VI App
Our VI Community has been painstakingly built from the ground up over the last 13 years,
drawing on our years of experience as a financial education provider. Today, our community
of value investors continues to scale on a healthy upward path with close to 100,000 app
users.
The VI Community features a rich roster of engagement
activities driven by both our retention and acquisition
teams. As part of the VI Community, our members
actively foster collective intelligent decision-making as
a result of aggregation of market sentiment. The social
interaction within the VI Community further drives a
powerful network effect whereby community-based
content is generated and insights into investor behaviour
are actively shared.
The VI Social Bubble social networking platform further
empowers the VI Community’s interaction, fostering
greater engagement which is even more frequent and
streamlined on a single platform. This feature also
allows us to track and monitor overall engagement and
interaction levels, which in turn enables us to make the
necessary improvements to the VI App in order to serve
our community even better.
Total user growth
rate: 207%*
Subscriber growth
rate: 189%*
Page view growth
rate: 82%*
* Last Twelve Months ending March 2021
6
>> Value investors brought together by VI College and VI App
Letter from the Chairman
The global COVID-19
situation continues to evolve
as governments around
the world are working hard
to get their economies
back on track in line with
vaccination rollouts, even
amidst ongoing lockdowns
and fresh waves of the
pandemic in various
countries.
Clive Tan
Non-Executive Chairman
8VI Holdings Limited
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Dear shareholders
I am pleased to share that we have enjoyed another remarkable year in FY2021 with
significant developments in our business. The strong building blocks that we have been
working relentlessly to put in place last year by devoting 100% of our effort and energy
into our digital transformation strategy, are now firmly in place.
While it had always been our strategy to move to an online
platform, riding on the acceleration of digitalisation and
technology and amidst the COVID-19 pandemic, 8VI
successfully transitioned from an offline education provider
to an integrated FinEduTech platform in 2020.
This changed the way in which we conducted business
significantly, given our ability to touch even more lives
while scaling our business exponentially in the absence
of geographical barriers. We have also since refocused
our growth efforts to further cement our position in core
English, Chinese and Malay speaking markets in order to
tap growth opportunities.
Today, we are proud to see that our core codes of
being rooted in FinEduTech, driving lifelong learning
and community exchange through technology, and
empowering everyone to achieve sustainable wealth;
have now been fully written and embedded within
our value system.
Buoyed by the digital framework that we have put in
place since 2016 to pave the way towards a smarter
future, as well as our expedited digital transformation
across the region, we have set new records in both our
operations and earnings. Through the unyielding effort
of our 8VI team, we have achieved what we set out to
accomplish a year ago.
7
Letter from the Chairman (Cont’d)
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We have come a long way as an integrated FinEduTech
platform – serving investors who are seeking knowledge
and lifelong-learning opportunities through a variety of
both one-off and recurring subscription products.
Our unique, proprietary stock analysis tool, VI App,
developed through 8BIT Global Pte Ltd (“8BIT Global”)
continued to break new ground this year as it garnered
regulatory clearance as a Licensed Financial Adviser
approved by the Monetary Authority of Singapore. This
breakthrough was a result of the team’s tireless efforts –
from the perspectives of both research and development,
as well as regulatory clearance; as this was no easy feat
given the time spent in taking this milestone across the
line. 8BIT Global is therefore licensed to provide financial
advice on securities and units in collective investment
schemes through research analyses and research reports
via VI App.
In particular, the license enables us to demonstrate more
conviction on VI Analysis’ research and development and
put forward detailed recommendations based on a rating
system that better informs our users on a company’s
financials and valuation methods.
This represents a major milestone in our journey to bring
smarter investing to everyone. Our license will allow us
to further etch out new areas of capabilities, expand and
improve on our offerings and services, and ultimately
develop new proprietary features for VI App which will
enhance overall user experiences and information delivery
around smart stock analysis.
During the year, we have also been pushing ahead with
our strategy to acquire and retain graduates, and invest
in technology development while bearing our guiding
principles in mind – focusing on innovation, our customers’
needs, and staying results-driven. FinTech remains as the
cornerstone of our growth and customer experiences
and our VI Community of investors continues to grow
at a healthy pace. In the past year, our efforts to further
strengthen our position in core markets are tracking well,
particularly in markets that are predominantly English,
Chinese and Malay speaking.
Having established VI App as a smart, technology-enabled
investing platform, we will work to continue to attract
like-minded individuals who are looking to make better
investment decisions in a smarter, faster and easier manner.
This group of potential graduates will have access to
ongoing support from our coaches and learn through real-
life case studies, while also benefitting from knowledge
exchange with the wider network of VI users within the
community.
Particularly, as we look at the total addressable market
(“TAM”) for asset and wealth management in the coming
years, we believe there is immense potential to be tapped.
Amongst three core segments of the TAM comprising “Do
It Myself”, “Do It With Me” and “Do It For Me” groups,
we will target the “Do It With Me” segment. Essentially,
these savvy individuals are keen to learn about investing
and prefer to use a paid service to assist them in making
the right investment decisions. We elaborate more on this
approach in the Operations Review.
The global COVID-19 situation continues to evolve as
governments around the world are working hard to get
their economies back on track in line with vaccination
rollouts, even amidst ongoing lockdowns and fresh waves
of the pandemic in various countries. As a result, many
industries have been witnessing a structural shift to an
online model of operations.
At 8VI, the fast-tracked digitalisation of our company since
late 2019 has weathered us well, where we have already
transformed our existing working processes and embraced
new ways of working wholeheartedly. In FY2020, we
successfully held our first virtual Annual General Meeting
(“AGM”), and FY2021 will mark our second edition. VI
College also held its annual keynote event VI Summit
2021 virtually for the first time this year, garnering a record
number of participants across the Asia Pacific region. In
addition to a Group-wide upgrade of our assets and
technology which enables us with the infrastructural
capability and flexibility to readily handle both on-site and
off-site working arrangements, we have also launched two
new broadcasting studios in Malaysia and Singapore, from
which we can host virtual masterclasses and events either
on-site or remotely across borders.
We attribute our success in implementing our strategies
to the commitment of our team, as well as the dynamism,
vision and stewardship of our CEO, Mr Ken Chee. All
the progress we have made thus far would not have
been possible without their collective effort, sacrifice and
resilience. Our team’s belief in our vision propels us forward
every day and brings us closer to our goal of coding a
smarter future.
With the above, we are pleased to report that we have
further grown our profitability in FY2021. This year, 8VI
achieved strong increments across our net profit, operating
profit margin and free cash flow. We recorded EBITDA of
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Letter from the Chairman (Cont’d)
>> We will continue striving to deliver our value proposition
to better serve our community of like-minded investors
through technology-empowered investment analysis
and education.
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S$9.5 million in FY2021, which represented a 246.7% jump
as compared to the S$2.7 million reported in the previous
year and EBITDA margin of 36.5%. Accordingly, our net
profit after tax attributable to owners of the company
soared 446.7% to S$5.9 million over S$1.1 million in the
corresponding period in FY2020.
We also saw a significant increase in our cash flow from
operations alongside growth in revenue. Our healthy
financial performance this year is in line with our expedited
digital transformation strategy across the region with
an extended period of recovery expected yet from the
COVID-19 pandemic.
Looking ahead, as we build out our long-term plan for the
next decade, continual digitalisation and acquiring talent
to grow our technological capabilities, the area of financial
services remains one of our key focuses as we believe that
having the right team on board will be key to our growth
strategy. In the coming year, we will be looking to invest
in a new space for our talents to come together to build
a stronger brand and culture for the Group and team.
Digitalisation continues to be critical to our long-term
strategy, where we will continue to adopt not just digital
programmes and practices, but also a digital mindset.
With immense potential to be tapped in the TAM for asset
and wealth management in the coming years, particularly in
the “Do It With Me” segment, we intend to focus on these
savvy, investing individuals who will use a paid service for
their investment decisions. At the same time, we will work
to attract more potential VI App users who are avid, mass-
market investors, and also expand VI College’s business
model laterally with new offerings for our customers.
Also, we will explore ways to offer complementary financial
services that can integrate with our VI App platform and
core capabilities where it makes sense. We are of the
view that we should look at ways to make inroads into
these types of regulated services so as to further raise our
competitive edge. Meanwhile, we also intend to broaden
and deepen our acquisition, retention and technology
development pillars to ensure we grow across the markets
we operate in.
We continue to do our part for the communities where we
operate, based on education and fintech as our identified
material pillars. Our efforts include establishing a free
financial literacy platform for young adults in Malaysia, as
well as supporting deserving students and lower-income
families through bursaries and fund-raising efforts in
conjunction with industry partners.
I would like to welcome on board Attlee Hue, our new CEO
at 8BIT Global, who has joined us on our exciting journey
towards coding a smarter future. Attlee will be responsible
for 8BIT Global’s overall strategic performance in line with
8VI’s wider direction. We have also introduced an Advisory
Panel for 8VI in the course of the year – all experts in their
own fields across fintech, blockchain, data analytics and
marketing. Their collective experience and counsel will no
doubt bring valuable perspectives and enable us to hone
our strengths further.
Moving forward, we also intend to look at ways to diversify
our Board composition as part of our effort to continue to
upkeep the highest levels of corporate governance. This
move will also help ensure that our Group maintains the
latest pulse on industry best practices and standards.
At 8VI, we remain firmly rooted in our vision and mission
to empower everyone with smart investing knowledge in
order to achieve sustainable wealth. Our priorities have
not wavered – we will continue striving to deliver our value
proposition to better serve our community of like-minded
investors through technology-empowered
investment
analysis and education. I am confident that we will be able
to rise collectively to even greater heights by constantly
moving towards individual and group mastery.
Clive Tan
Non-Executive Chairman
8VI Holdings Limited
9
Financial Highlights Year ended 31 March 2021
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Revenue (S$’m)
EBITDA (S$’m)
30
20
10
0
26.0
22.3
9.4*
12.9
10.9
FY2019
FY2020
FY2021
* Digital and Marketing Segment contribution prior to disposal
10
5
0
-5
-10
9.5
2.7
FY2020 FY2021
FY2019
-2.3
Net Profit After Tax Attributable To Equity
Holders Of The Company (S$’m)
Earnings Per Share (Singapore cents)
10
5
0
-5
5.9
FY2019
1.1
FY2020 FY2021
-4.9
15
10
5
0
-5
-10
-15
14.3
FY2019
2.6
FY2020 FY2021
-11.6
Cash and Cash Equivalents (S$’m)
Net Tangible Assets Per Security
(Singapore cents)
20
15
10
5
0
18.6
7.4
4.7
FY2019
FY2020
FY2021
30
20
10
0
26.0
11.0
9.3
FY2019
FY2020
FY2021
Operating Cash Flow (S$’m)
Free Cash Flow (S$’m)
20
15
10
5
0
-5
16.8
3.9
FY2020 FY2021
FY2019
-1.4
20
15
10
5
0
-5
15.6
3.6
FY2020 FY2021
FY2019
-1.7
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Operating and Financial Review
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We intend to remain laser-
focused on building a
smarter future with our
growth initiatives and we
are confident that the
strong foundation we have
put in place enables us to
strengthen our FinEduTech
platform further for the next
decade.
Ken Chee
Executive Director & CEO
8VI Holdings Limited
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Overview
FY2021 has undoubtedly been another eventful year in 8VI’s journey since we embarked
on our digital transformation. We have not only successfully circumvented the traditional
earning challenges and limitations of a conventional education and training business in
record time, but we have also rewritten records in terms of our progress – both operationally
and financially.
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In FY2021, 8VI has stayed true to our mantra of achieving
ever more with ever less and that has shone through
in all aspects of our business. Through our successful
digitalisation efforts, we are proud to have brought
together an integrated, smart and easy investing
platform for a community of like-minded investors
through a variety of value-added subscription products.
Our community is at the heart of all that we do and drives
our inspiration to continually improve and find new ways
of fulfilling their needs.
By embarking on the right strategy, managing the right
level of prudence in terms of our costs and expenses and
embodying the right spirit and determination, our team
has never stopped spinning the wheels of innovation.
We are always working to further raise the bar when it
comes to our VI App platform, ensuring that we look at
ways to improve on our capabilities, features and how
to amplify knowledge sharing and exchange with the VI
community.
FY2021 in review
Following the successful implementation of our 3-year
transformation plan in FY2019, we are today operating
on a model where more than 90% of our operations are
held online. In FY2021, we worked to further refine our
strategy to ensure we enjoy economies of scale while
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Operating and Financial Review (Cont’d)
keeping an eye on costs and cashflow against the
backdrop of our broader macro-environment.
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As a result, the Group recorded revenue of S$26.0
million in FY2021 as compared to S$10.9 million in the
corresponding period in the previous year (“FY2020”),
representing a growth of 139.1% with expanded gross
profit and net profit margins. Of which, 29% of our
revenue is recurring, a significant improvement from
the 20.5% in FY2020, which is a strong testament to our
successful acquisition and retention strategies.
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We recorded EBITDA of S$9.5 million in FY2021, which
represented a 246.7% jump as compared to the S$2.7
million reported in the previous year and EBITDA
margin of 36.5%. Accordingly, our net profit after tax
attributable to owners of the company soared 446.7%
to S$5.9 million over S$1.1 million in the corresponding
period in FY2020.
FY2020
FY2021
Movement
10.9
2.7
26.0
9.5
139.1%
246.7%
1.1
5.9
446.7%
Net Profit
Margin
Free Cash Flow
Margin
77.3%
25.0%
60.1%
32.9%
7.2%
FY2020 FY2021
FY2020 FY2021
Net profit after
tax attributable
to owners of
the company
Gross Profit
Margin
72.8%
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(S$’m)
Revenue
EBITDA
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FY2020 FY2021
in
With revenue growth of 139.1% achieved
FY2021, accompanied by an EBITDA margin of
36.5%, we have also exceeded the Rule of 40, a
performance metric commonly used for fast-growing
technology companies, by 4-fold. Testament to 8VI’s
transformation strategy, the Group has grown its
EBITDA at a faster pace than revenue, thus achieving
operating leverage in FY2021.
In FY2021, we maintained a strong financial position
with cash and cash equivalents as well as short term
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Quarterly Receipts from Customers
(S$’m)
UP 118%
10.7
8.1
7.1
7.3
4.9
3.1
2.8
2.3
1.6
FY2019
FY2020
FY2021
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10
8
6
4
2
0
liquid assets totalling S$22.2 million, as compared to
S$7.8 million in FY2020, and remained at zero debt with
S$9.8 million unearned revenue to be recognised.
receipts
from customers have
Cash
increased
significantly over the last nine quarters. Cash receipts
from customers for the fourth quarter of FY2021 stood
at S$10.7 million, up 118% as compared to S$4.9 million
in the fourth quarter of FY2020.
Cash flow from operations have increased significantly
to S$16.8 million compared to S$3.9 million in FY2020,
while free cash flow stands at S$15.6 million, a jump
from S$3.6 million in FY2020. This was attributable
to improved performances across both our Financial
Education and FinTech segments.
We also made a significant breakthrough this year
with VI App, developed through 8BIT Global Pte
Ltd (“8BIT Global”), which garnered regulatory
clearance as a Licensed Financial Adviser approved
by the Monetary Authority of Singapore. This means
we can provide financial advice on securities and units
in collective investment schemes through research
analyses and research reports via VI App.
The license enables us to demonstrate more conviction
on our research and development and put forward
detailed recommendations based on VI Analysis, our
proprietary rating system. The system allows our users
to immediately verify the soundness of the target
company’s financials and show how valuations are
derived. These features are designed to aid overall
investor confidence in making smarter, faster and easier
investment decisions.
Operating and Financial Review (Cont’d)
Across Malaysia and Taiwan, we also launched 6 new
content programmes in local languages to engage with
our audiences in those markets, and these have been
well received so far.
• A spin-off to our “Behind The Stock”
video series, we have created “The
Unscripted Video”, which takes a
laidback approach
the
wider topic of investing and financial
management for the layman.
tackle
to
MALAYSIA
•
Inspired by our “Bijak Labur” video
series, we also introduced the “Pecah
Rahsia” series that covers a wide
range of financial topics from personal
finance,
investment, current stock
market developments and current
trending discussions.
• Also, “Wokao!”, designed for those
who have burning questions about
investment or financial management
with practical solutions, ideas, and
answers for the everyday investor,
made its debut in Malaysia this year.
• “深VI一口气”
personal
is a podcast which
covers different aspects of what
makes a person a better investor
including
development
plans, motivational talks, as well as
financial management and investment
strategies. The series also explores and
discusses current events and global
developments in a relatable and light-
hearted fashion.
TAIWAN
• “Will Be Good” explores and discusses
sensible approaches to improve various
aspects of one's personal growth and
financial wellness in conjunction with
trending topics and news in Taiwan.
• The “投资金股追” series provides a
quick understanding and overview
on noteworthy companies around the
world, giving viewers the opportunity
to gain a deeper understanding of
a company’s business model and
performance, while diving into the
latest trends and business models.
STAYING TRUE TO OUR FY2020 ACTION
PLAN
Adding breadth and depth to our acquisition,
retention, and technology development efforts
i. Acquisition
The ability to generate a unique and robust content flow
remains key to how we acquire potential graduates, which
entails planning, creating and deploying content across
various platforms to build engagement and feature the
new additions to our educational programmes.
This year, we have broadened our content creation
efforts on many levels and across regions to ensure we
reach a wider audience set and engage with them in
more meaningful ways and in localised contexts, whilst
building awareness for our brand.
By ensuring a robust content calendar and leveraging our
owned social channels, we have extended our reach across
borders both in Malaysia and Singapore through targeted,
language-specific content. Following our success in
Malaysia in reducing the reliance on direct marketing,
we have replicated the same approach in Singapore
by assembling a dedicated team that is responsible for
content planning, creation and implementation.
We have been pilot-testing YouTube content
in
Singapore that feature real and relatable investment
journeys of various individuals, who will share their own
experiences and stories with other investors. We plan to
roll these out in due course in FY2022, as our Singapore
office had been integrating our digitalisation efforts to
date. Meanwhile, we have set up two virtual broadcast
studios in Singapore and Malaysia, which will allow us to
host large-scale online events seamlessly across borders,
such as the 10th VI Summit in January 2021 which saw a
record number of more than 3,500 attendees.
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Growth in users
207% growth
in LTM
10% growth
in CMGR
LTM
CMGR - Compounded Monthly Growth Rate
- Last Twelve Months
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Operating and Financial Review (Cont’d)
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From an acquisition perspective, we are also seeing
the benefits of the network effect from the ecosystem.
This network effect is a result of the virtuous cycle
that originates from the content that we generate,
which is then shared across various platforms to build
engagement across languages and broaden our reach
across borders to grow our community and followers.
As a result, there are deeper opportunities within our
ecosystem to drive collaboration through third-party
partnerships with financial services agents, brokerages
and financial planners. This not only effectively
expands our service base and offerings to our existing
graduates and community, but also contributes to how
we can attract new, potential graduates.
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Our success in acquisition is based on monthly growth
in users and subscribers, as well as growth in Annual
Recurring Revenue (“ARR”); both of which have increased
on healthy levels in FY2021. We have also seen overall
growth in our Total Number of Graduates of 450% at
25,926 pax in FY2021, Total User Growth Rates of
207% as well as Subscriber Growth Rates of 189%
in the last twelve months, which is testament to our
successful acquisition model. While we have seen our
percentage growth in the past year stabilise over the
course of the year, our growth in terms of absolute
numbers have actually grown significantly. The success
of various programmes such as our flagship VI Bootcamp
reflects the success of our strategy, as these continue to
grow in popularity and take up.
ii. Retention
In the past year, we have been building retention
amongst our graduates by bringing a customer-centric
culture and mindset to the table, which in turn enables
us to create entire lifetime value. Through the use of
our planned CRM system to mine data analytics, we
see long-term potential to build on our insights to
improve the entire experience for our graduates. Once
complete, our CRM system will build, link and leverage
data to optimise both our operations and our product
and programme offerings with the appropriate business
intelligence. The system is currently being implemented
and is expected to be completed in phases over the
next year.
We also practice active engagement and content
building via our VI Social Bubble, while providing
content and support well received in the form of
VI Coaching Sessions and VI Resources for flagship
programme graduates. We have expanded our
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library of VI Resources this year as well across English,
Malay and both Simplified and Traditional Chinese
languages, with content to ensure that we continue to
promote knowledge sharing and exchange amongst
our community.
Our retention success rates are measured via
performance metrics such as the Page View Growth
Rate, equivalent to the number of average page
views on our website, which continues to grow
healthily in FY2021. We also measure success via our
overall participation in VI Coaching viewership and
participation, which has also been gaining momentum
in the past year. For example, VI Coaching sessions in
English have grown at a rate of 202% since its inception
in May 2020 till March 2021.
Growth in
average page
views
82% increase
since FY2020
iii. Technology Development
This year, we have continued to develop existing and
new features on VI App that are designed to enhance
the overall experience.
In relation to the AI and machine learning (“ML”)
aspects, we are already in the process of establishing a
team of data science engineers focusing on enhancing
various features within the VI App. The team will focus
on using various ML techniques, working closely with our
community managers and business analysts, to enhance
existing features and possibly discover new features.
Some of the planned upcoming enhancements and
premium features within VI App include:
“Enhanced Peers” which allows better identification
of peer companies so as to unearth other opportunities
that are in the same business;
“Dynamic News Feed” which presents relevant
social news that matters and is aligned with the user
behavioural patterns;
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Operating and Financial Review (Cont’d)
“Intelligent Alerts” which generates notifications that are
relevant and deemed important based on the user profile;
despite the pandemic, we aim to similarly establish our
80:20 model here as well in the long run – to have 80%
of our revenue on a recurring basis.
“VI Score” which complements the Screener and Peer
Comparison modules in VI App, while ranking the
quality of a company based on historical financial and
price-performance, ranking companies based on their
quality for research prioritisation; as well as
“Guru Bubble” where a Watchlist is linked to a Social
Bubble under a specific theme with a community built
around the bubbles which encourages learning and
discussion of specific strategies within the Bubble.
With our digital transformation complete, we are doing
ever more with ever less as a result of our technological
capabilities. Ongoing digitalisation has further catalysed
the changes and pace of change as compared to the
conventional ways of operating. By integrating our
signature programs with the subscription to our VI
platform, we have achieved a massive breakthrough in
the way our company grows and generates high-quality
recurring revenue and positive cashflow.
Refining the
distinctions in
stock classification
through machine
learning
More than 55,000
lives inspired to date
25,926 VI College
graduates in FY2021
187 new VI College
batches in FY2021
All these will not only improve user experiences but
also allow users to quickly discover new perspectives in
their investment journeys. These exciting developments
are testament to our core capabilities as a technology
company that integrates our loves for finance and
education, as well as one that constantly seeks to stay
ahead of the curve as we code for a smarter future.
Growing our recurring revenue model
VI App, coupled with VI College, is a cohesive ecosystem
which is designed to make investments Smarter, Faster
and Easier and without borders. Our value proposition
is crystal clear: users can Analyse, Learn and Connect on
all levels of smart investing using one single tool.
We leverage the unit economics of our unique
business model, where unlike other technology start-
ups that invest heavily in acquiring users through
cash, our entry-level product range already covers
our cost of acquiring a new potential graduate. As
such, we are witnessing amplified benefits where all
additional spending translates into positive impact on
our margins, which we intend to re-invest into our growth
plans. Coupled with our prudent cashflow management
Cementing our position in core markets
Today, we operate in highly successful and well-adapted
English, Chinese and Malay language-speaking markets,
with our operations in Singapore, Malaysia, Shanghai and
Taiwan. In these markets, we have a physical presence
while operating almost solely through online channels.
Our geographical revenue also represents one of our
80:20 strategies, where we hope to work towards
having 80% of our revenue outside of Singapore.
In FY2021, Malaysia accounted for 40% of our revenue,
whilst another 20% comprised international income – a
combination of revenue from other markets and our VI
App subscriptions. Our Singapore revenue contribution
stood at 40% meanwhile.
Malaysia remains a significant, addressable growth market
of focus and together with Taiwan, continued to generate
positive growth in FY2021. Malaysia has always been an
important market for us with its large, multi-language
population, and represents a much deeper market
where we can capture new opportunities. Here, we are
developing the market through bespoke content and
learning materials catered according to local language
and demographics, such as Shariah-compliant investing.
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Operating and Financial Review (Cont’d)
Our 80:20 rule also applies to our way of working,
where 80% of our operations will be digital going
forward. With work-from-home (“WFH”) practices
here to stay, we have equipped our employees with
the right infrastructure, hardware and software setups
to ensure we are ready to tackle hybrid working
arrangements. In the coming year, we will be looking
to invest in a new space for our talents to come
together to build a stronger brand and culture for the
Group and team, ensuring that we are on the front
foot and ready to face any challenges at any given
time. In addition, we have also expanded our training
and development budget so that our team members
can benefit from continuous learning.
Last year, we grew our development team to be the
largest component within the Group as part of our
expansion plans. Going forward, we plan to invest
a significant amount of our resources and costs into
diversifying our human capital in various aspects,
in order to find the right talent to strengthen our
position in technology. Our quest to acquire talented
individuals in the fields that support our growth plans
is expected to accelerate further in the coming years,
as we focus on acquiring the right skill sets in these
areas. We are constantly looking for subject matter
experts who have a passion for all things FinEduTech
to join us on our exciting growth journey.
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We have seen good traction in our Taiwan market to
date, which is now operating independently with positive
growth. On the whole, Taiwan is a more mature market
which offers healthy potential as the local audiences are
well exposed to investment-related topics and more
receptive towards personal development programmes.
The focus will therefore be to grow our presence and
brand in the region with outreach activities and engaging
social media content to reach Taiwan’s local audiences.
KEY TO FUTURE GROWTH
Digitalisation & talent, expanding our addressable
market, and positioned to offer new products in the
regulated space
We have witnessed a major structural shift in many
industries, including ours, and in how we work amidst
the ongoing COVID-19 pandemic. To adapt ourselves
to these changes, we intend to invest heavily in a few
key areas.
Investing for a smarter future – digitalisation & talent
•
We will be working towards progressive automation
of our operational processes and a data-driven
approach to analytics to enable us to achieve the
best business results and optimise business decisions
on the backend. In the course of doing so, we also
plan to digitalise more programmes and integrate
these programmes onto our VI App platform going
forward.
We also plan to digitalise more specific aspects of
our programmes going forward, for instance, for
our participants in our VI Bootcamp, Full Edition
programme (“VIB FE”). Within the simulated investing
games offered in VIB FE, we are automating and
incorporating the game portal into the VI App to
enable more hands-on participation from participants
and involve less manual facilitation and intervention
from our team members.
This year, we set up our broadcasting studios in
Singapore and Malaysia for the production of digital
content to serve this purpose. As a borderless working
culture becomes the new norm, our broadcasting
studios are also outfitted with the requisite capabilities
to host large scale events that transcend borders, such
as our recent VI Summit 2021, which saw approximately
3,500 members in attendance – our largest VI Summit
event to date.
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Operating and Financial Review (Cont’d)
• Expanding our addressable market
As we look at the total addressable market (“TAM”)
for asset and wealth management in the coming
years, there is immense potential to be tapped.
Amongst three core segments of the TAM comprising
“Do It Myself”, “Do It With Me” and “Do It For Me”
groups, we have identified a core group of target
users, whom we call the “Do It With Me” group, that
we want to engage with at this stage.
These individuals are straddling the Millennial and
Gen X ages of between 25 – 55 years of age, who
would be keen to learn how to invest, and are willing
to pay for a service that can offer coaching, ongoing
support and case studies. They would also be the
ones to use VI Analysis to make investment decisions.
In the longer-term future, we will also be keen to
look at the “Do It For Me” group of users and ways
to engage with them through more offerings on our
platform. These are individuals who appreciate our
investment philosophies and the learning offered
through our programmes and resources, but still
prefer to have a representative who will manage and
invest on their behalf – a role which we can work
towards fulfilling.
As part of our growth strategy, we hope to be able
to cast our net wider to attract more potential VI App
users. These could be avid, mass-market investors
who may primarily choose to tap on the convenience
of a generic, user-friendly version of our app for
smarter, faster, easier investing. At the same time,
we would also look at ways to expand VI College’s
business model laterally with new offerings to extend
the value chain for our existing and new customer
base.
• Positioned to offer more regulated products and
services
Having secured 8BIT Global’s license to provide
financial advice on securities and units in collective
investment schemes through research analyses and
research reports via VI App, we believe we are in a
position to explore offering more of such regulated
products and services that are complementary to our
existing FinEduTech business.
Tapping on our capabilities in using data, analytics and
AI to analyse our users, incorporate risk assessment
and better understand our users’ investment styles,
we plan to integrate complementary financial services
on our VI App platform where we see synergies and
value-add to our community. By making inroads into
these types of regulated services, we believe we can
further raise our competitive edge in the long-term
by extending our position on the value chain – all
towards our ultimate goal of building a smarter future
for our community.
Total Addressable Market
I am sophisticated, do my own research & analysis using/supplemented by VI App
(self-directed investing)
I want to learn how to invest, will pay for on-going support & case studies
from coaches. I use VI Analysis to make my investment decisions.
TAM: 5 Million Users (SG, MY, TW)
Untapped Market: 35 Million Users (ID, VN, CN)
I like your investment style/philosophy & enjoyed the learning.
Still prefer someone to invest for me.
TAM: US$11.9 trillion
(Asia Pacific e2025 mutual fund AUM)
Do It
Myself
Do It
With Me
Do It
For Me
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Operating and Financial Review (Cont’d)
TOWARDS A SMARTER FUTURE
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Having emerged stronger through the disruption a year
ago, we are set up and ready to face any upcoming
challenges whenever
resilience,
nimbleness and flexibility that we have developed
through weathering past challenges will equip us well to
handle oncoming ones.
they arise. The
In the coming year, we will be looking at ways to
further raise our corporate profile so as to attract new
opportunities within various markets. In line with these
efforts, we will be exploring ways to improve the liquidity
of our counter, which may result in certain shareholders
realising a portion of their investment in order to create
the necessary headroom for potential new investors. We
believe this is an opportune and appropriate time to
embark on this as we ready 8VI for the next growth phase.
Also, as part of our ongoing efforts to enhance
shareholder value and raise our profile, we are planning
to undertake a secondary listing by way of introduction
on the Main Board of the Singapore Exchange Securities
Trading Limited (“SGX-ST”), with further details to be
made available by end 2021.
Meanwhile, we will continue to sharpen
our competitive edge on our Investment
Intelligence as a Service (“IIAAS”) model –
leveraging AI, big data analytics and machine-
learning, sharing investing knowledge and
empowering better investment decisions,
and ultimately generating alpha for our
investors.
Our commitment to delivering long-term value to our
shareholders and our mission and vision are unwavering
– to empower everyone to create sustainable wealth
and inspire 100 million lives, whilst driving growth and
building a sustainable business.
We intend to remain laser-focused on building a smarter
future with our growth initiatives and we are confident
that the strong foundation we have put in place enables
us to strengthen our FinEduTech platform further for the
next decade.
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We would like to express our appreciation for the
support of our shareholders and the hard work of our
8VI team who have made our journey meaningful and
fulfilling so far, and we look forward to our onward path
together.
Ken Chee
Executive Director & CEO
8VI Holdings Limited
Board of Directors
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>> Clive Tan
Non-Executive Chairman
As co-founder and executive director of parent company,
8I Holdings Limited, Clive is familiar with the strategic
planning, business development, corporate policies and
risk management practices for the financial education
and asset management business.
Within 8VI, Clive advises on corporate governance,
strategic planning and overall direction of the Group.
Clive holds a Post-Graduate Diploma in Education from
the National Institute of Education and an Honours
Degree in Mechanical and Production Engineering from
the Nanyang Technological University. He also attended
the University of Technology, Sydney on an academic
exchange programme. He began his professional career
in the public education sector in Singapore.
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>> Ken Chee
Executive Director & CEO
Ken is the co-founder of the Group and sits on the board
of parent company, 8I Holdings Limited. As CEO of 8VI,
he is involved in driving the all-round growth of the
Group’s FinEduTech business under the VI brand.
He has more than 20 years of professional experience
across business development, operations, strategy and
marketing from his past roles in data management firms
including Quicken (Singapore) and Telekurs Financial.
Prior to his current appointment, Ken held executive
and management roles in 8I Holdings Limited and was
the originator and key trainer of its financial education
programmes.
Ken was awarded the Spirit of Enterprise, Honoree
Award in 2005 by the President of Singapore for
outstanding business results. He 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 and graduated from its
Executive Program in Value Investing.
Board of Directors (Cont’d)
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Executive Director
Pauline is involved in the management and regional
operations of the Company, leading VI College. She is
also one of the key speakers for the various programs,
seminars and coaching sessions that the Company
undertakes.
Under her leadership, VI College is currently the leading
Financial Education provider in Singapore and Malaysia,
with presence in Taiwan and mainland China. She leads
8VI’s retention team in terms of organising, planning
the activities and topics for our subscribers, keeping
conversations alive in the community.
Pauline is based in Singapore and has more than 10
years’ experience working as a public servant, primarily
in the field of learning and development. During her
days with Singapore Ministry of Defence and Civil
Service College, Pauline led a team of course developers
and had the full spectrum of experience in training and
development, ranging from conducting learning-needs
analysis to outcome evaluation.
Pauline graduated from the Nanyang Technological
University with a Master of Arts (Instructional Design and
Methodology) and holds a Bachelor in Business Studies.
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>> Charles Mac
Non-Executive Director
With rich IT corporate experience comprising 15 years in
the SAP industry dealing with multinational companies
across the Asia Pacific region, Charles provides advisory
and counsel on the operations, strategy and compliance
for the Company.
Charles Mac was appointed Non-Executive Director in
May 2019. Charles has more than 18 years of IT corporate
experience, of which 15 years was spent 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 currently serves on the Board of Australian-
listed companies, 8I Holdings Limited and 8VI Holdings
Limited as a Non-Executive Director. Charles is an
Australian citizen and holds a Bachelor of Computing
(Information System) from Monash University.
Key Management
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CTO, 8BIT Global
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Bernard leads the technology development at 8BIT
Global, leveraging the digital economy for improved
positioning and competitiveness.
With 8BIT Global’s position as a Licensed Financial
Adviser to provide financial advice concerning securities
and units in collective investment schemes through
research analyses and research reports, approved by the
Monetary Authority of Singapore, Bernard will focus on
expanding and improving the proprietary features on
VI App to enhance user experiences and information
delivery.
He has more than 10 years of experience as a technology
specialist. Bernard began his career in a start-up and led
the R&D and product development team. During this
period, he gained invaluable experience in building the
R&D team and developing processes to deliver products
in the intelligent CCTV industry. Eventually, he grew with
the company through its IPO in SGX.
After his start-up experience, he joined a marine
company and continued to apply his vast experience
in product development to create a world-class system
which provides advance vessel performance monitoring
services. The entity was eventually acquired by a French
company from the growing LPG market.
Bernard graduated from the National University of
Singapore with a Bachelor of Computing (Technology
Focus).
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>> Gary Yeow
Executive Director, 8VI Malaysia
Gary oversees the planning and implementation of
marketing, operations and business development
strategies across the regional markets and 8VI’s overseas
expansion activities.
Gary Yeow is the Director of 8VI Malaysia Sdn Bhd. He
has been with the Group since May 2012.
Gary brings over 30 years of business experience, where
prior to 8VI, he held the directorship of a building
materials wholesale and manufacturing business. Gary
graduated from Anglo-Chinese Secondary School in
Sitiawan, Malaysia.
Key Management (Cont’d)
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>> Juanna Chua
Executive Director, 8VI China
Juanna manages the Company’s strategic objectives
and plans within the Chinese market.
Previously, Juanna spent 9 years on distribution and
central store management with Shell Malaysia Trading
Sdn Bhd. She brings with her strong human capital and
operations knowledge.
She graduated with a Bachelor of Business Administration
(Honours) in Marketing from Universiti Tenaga Nasional.
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>> Will Huang
General Manager, 8VI Taiwan
Will is the General Manager of 8VI Taiwan, where he
leads the office’s operations and strategy. As a leader,
Will successfully bridges technical and business aspects,
while handling high-level management and operations.
He has been with the Group since 2019.
Prior to this, Will created and headed an ODM/OEM
unit at Strongled LED Lighting Systems, a Taiwan-listed
company and leading manufacturer of LED lighting,
where he led market research and development, analysis
of business model, team establishment, resource
evaluation and coordination, process formulation and
staff training. Will has more than 6 years of experience
across quality engineering and customer service in
multi-national companies. He was also a key member
in Strongled’s IPO team, handling public relations and
acting as a corporate spokesperson.
Will holds a Masters’ Degree in MSc. Management from
the University of Southampton, as well as a Bachelor of
Geomatics from the National Cheng-Kung University.
Corporate Structure
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>
>
>
>
>>>>>>>>>
>
>
>>>>>>>>>
>
>
8VI Global
Pte. Ltd.
(100%)
8BIT Global
Pte. Ltd.
(51%)
>>>>>>>>>>>>>>>>>>
>
>
>
>
>
>
>
>>>>>>>>>>>>>>>>>>
>
>
8VI Malaysia
Sdn. Bhd.
(100%)
8VI Taiwan
Co., Ltd.
(70%)
>
>
8VIC JooY
Media
Sdn. Bhd.
(100%)
8VI China
Pte. Ltd.
(65%)
>
>
8VI China
(Shanghai)
Co. Ltd.
(100%)
23
Engaging Our Team Members
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We have put in place several initiatives to continuously
engage with our team members, particularly in this
‘new normal’ age.
As WFH becomes a cultural mainstay in our everyday
lives, our employees are equipped with the right
infrastructure, hardware and software setups to ensure
they are ready to tackle hybrid working arrangements.
In addition to expanding our training and development
budget so that our team members can benefit from
continuous learning and upgrading of their skill sets, we
will be looking to invest in a new space for our talented
team of individuals to come together to build a stronger
brand and culture for the Group and team, ensuring that
24
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we are on the front foot and ready to face any challenges
at any given time.
Apart from just focusing on their operational efficacies
and core competencies, the Group also places great
emphasis on cultivating a strong team bond amongst
our supportive team members and establishing a
supportive, conducive and collaborative working
environment for our team members to grow alongside
the organisation.
We do so through virtual events such as birthday and life
milestone celebrations for our team, regional anniversary
events, as well as festive occasions.
Playing Our Part For Communities
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With FinTech and financial education in our DNA, we
look to contribute and share our knowledge on finance
and investing within the communities where we operate
and in turn, give back to our communities through
meaningful social initiatives in these sectors.
Education will be a material, guiding pillar as we embark
on corporate citizenry, and as the origin from which we
built our business since 2008. FinTech will also be a key
area since we view technology as the way forward and
an important part of our future which drives us to stay
vested and do our part for advancing technology.
This year, we established the “VI Club for Youth” in
Malaysia - a financial education platform that is freely
accessible for students between 16-24 years old. With
an aim to empower and encourage financial literacy
among young adults, we wanted to equip young adults
across the globe with proper financial knowledge, and
our initiatives in the pipeline include a series of talks,
both online and offline engagement activities and
partnerships with universities, amongst others.
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In partnership with Nanyang Technological University
(“NTU”) of Singapore, we have also established the VI
College NTU Bursary Fund for the School of Computer
Science and Engineering, in support of NTU’s vision of
ensuring that every deserving student has access to
quality education while also remaining true to our aim of
advancing technology by supporting education.
25
In December 2020, we also contributed to the Singapore
FinTech Association’s efforts to raise S$100,000 for
the NTUC-U Care Fund under the “FinTech for Good
initiative” to provide financial assistance to lower-
income union members and families.
We are heartened that our vision of empowering growth
and transforming lives through VI College and VI App
now extends across our community efforts, and will
endeavour to give back in more meaningful ways going
forward.
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Corporate Governance Statement
31 March 2021
Introduction
8VI 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 the 30
June 2020. The Board is committed to administering the
Company’s policies and procedures with openness and
integrity, pursuing
true spirit of corporate
governance commensurate with the Company’s needs.
the
To the extent applicable, the Company has adopted the
ASX Corporate Governance Council’s Corporate
Governance
Recommendations
(Recommendations).
Principles
and
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
in a dedicated corporate governance
available
information section of the Company’s website at
www.8viholdings.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
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
and
establishment,
Secretary,
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.
operation
The Board is responsible for the corporate governance
of the Company. The Board develops strategies for the
Company, reviews strategic objectives and monitors
Clearly
performance against
articulating the division of responsibilities between the
Board and management will help manage expectations
and avoid misunderstandings about their respective
roles and accountabilities.
those objectives.
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
accounting and corporate
including the external audit;
integrity of
the company’s
reporting systems
(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.
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.
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Corporate Governance Statement
31 March 2021
Principle 1: Lay solid foundations for
management and oversight (continued)
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Recommendation 1.2
A listed entity should:
(c) undertake appropriate checks before appointing a
person, or putting forward to security holders a
candidate for election, as a director; and
(d) 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 two Executive Directors and two
Non-Executive Directors
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.
of whom
(each
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.
into Executive Service
The Company has entered
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 and in the composition of its board, senior
executives and workforce generally; and
(c) disclose in relation to each reporting period:
(i)
the measurable objectives set for that period
to achieve gender diversity;
(ii) the entity’s progress towards achieving those
objectives; and
(iii) either:
(A) the respective proportions of men and
women on the Board, in senior executive
the whole
positions
organisation (including how the entity has
defined “senior executive”
for these
purposes); or
across
and
(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
its goals.
to the organisation’s ability to achieve
Accordingly, the Company has set in place a diversity
policy. This policy outlines the Company’s diversity
objectives
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.
relation
in
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Corporate Governance Statement
31 March 2021
Principle 1: Lay solid foundations for
management and oversight (continued)
Recommendation 1.5 (continued)
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.
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Category
31 March 2021
Board of Directors
Senior Management
Company wide
Male
3
3
50
Female
1
1
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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.
a Nomination Committee.
The Company is not of a relevant size to consider
formation of
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.
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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 Directors was undertaken 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 March 2021, over a series of
informal
discussions, the Executive Directors have 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
the committee met
individual
those
times
number of
throughout the period and the
attendances of
meetings; or
the members at
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Corporate Governance Statement
31 March 2021
Principle 2: Structure the Board to add
value (continued)
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Recommendation 2.1 (continued)
(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.
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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:
Executive and Non-Executive experience
Industry experience and knowledge
Leadership
Corporate governance & Risk Management
Strategic thinking
Desired behavioural competencies
Geographic experience
Capital Markets experience
Number of
Directors that
meet the skill
4
4
4
4
4
4
4
3
(continued)
Subject matter expertise
- accounting
- capital management
- corporate financing
- industry taxation
- risk management
- legal
- IT expertise
Number of
Directors that
meet the skill
3
3
3
1
4
2
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 Clive Tan Che Koon
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
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Corporate Governance Statement
31 March 2021
Principle 2: Structure the Board to add
value (continued)
Recommendation 2.3 (continued)
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 Clive Tan Che Koon appointed on 1 Sep 2015
• Ms Pauline Teo Puay Lin appointed on 3 Jan 2018
• Mr Chee Kuan Tat, Ken appointed on 1 Jan 2019
• Mr Charles Mac appointed on 23 May 2019
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. Clive Tan Che Koon
(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
the Board meeting before
commencement of discussion on the topic.
from
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. Clive Tan currently holds the position of Non-
Executive Chairman which does not comply with the ASX
Corporate Governance Council’s recommendations.
The Board considers the importance of a division of
responsibility and independence at the head of the
Company, the existing Board is chaired by Mr Tan who
is also a Non-Executive Director. The Board considers
that he is able to bring quality and independent
judgement to all relevant issues, and the Company
benefits from his
its
operations and business relationships.
long-standing experience of
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
is to procure appropriate professional
the Board
The
development opportunities
Remuneration Committee
for the
induction and continuing
approval and review of
professional development programs and procedures for
Directors to ensure that they can effectively discharge
their responsibilities.
for Directors.
is responsible
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.
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Corporate Governance Statement
31 March 2021
Principle 3: Act ethically and
responsibly (continued)
Recommendation 3.3
A listed entity should:
(a) have and disclose a whitsleblower 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
the committee met
individual
those
number of
times
throughout the period and the
attendances of
meetings; or
the members at
the processes
(b) if it does not have an audit committee, disclose that
fact and
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.
it employs
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.
affecting
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
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.
reporting
financial
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.
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Corporate Governance Statement
31 March 2021
Principle 4: Safeguard integrity in
financial reporting (continued)
Principle 6: Respect the rights of
security holders
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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 Executive Directors 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 the Listing Rules 3.1.
The Company’s Corporate Governance Plan includes a
continuous disclosure program. The Corporate
Governance Plan is available on 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
the ASX Market
Announcements Platform ahead of the presentation.
on
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.
Recommendation 6.1
A listed entity should provide information about itself
and its governance to investors via its website.
there are
The Company has a comprehensive website found at
www.8viholdings.com, where
to
directors, corporate governance, plans and policies.
links to all financial reports,
Also
announcements, notice of meetings and presentations
and any external media commentary made on the
Company.
included are
links
Recommendation 6.2
A listed entity should design and implement an investor
relations program to facilitate effective two-way
communication with investors.
a
has
adopted
Company
The
Shareholder
Communications Strategy which aims to promote and
two-way communication with
facilitate effective
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.
32
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
Corporate Governance Statement
31 March 2021
Principle 6: Respect the rights of
security holders (continued)
Recommendation 6.5
A listed entity should give security holders the option to
receive
send
communications to, the entity and its security registry
electronically.
communications
from,
and
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
the committee met
individual
those
times
number of
throughout the period and the
attendances of
meetings; or
the members at
(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 not established a separate Risk
Management Committee. However, the Board has
assumed the role of a separate Risk Management
Committee and it is ultimately responsible for risk
oversight and risk management. Discussions on the
recognition and management of risks were also
considered by the Board.
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The Board's collective experience will assist in the
identification of the principal risks that may affect the
Company's business. Key operational risks and their
management will be recurring items for deliberation at
Board meetings.
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,
‘Disclosure - Risk
is entitled
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. The Board has not
established a separate Risk Management Committee
and hence no meeting was being conducted in the
reporting period.
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.
33
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
Corporate Governance Statement
31 March 2021
Principle 7: Recognise and manage
risk (continued)
Recommendation 7.3 (continued)
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.
in
or
apparent
business,
The Board details the Company’s risk management
identifying and managing
systems which assist
economic,
potential
(if
environmental and social sustainability
appropriate). Review of
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
internal
compliance and control procedures.
framework and associated
the Company’s
risks
Principle 8: Remunerate fairly and
responsibly
Recommendation 8.1
The Board of a listed entity should:
(a) have a remuneration committee which:
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(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
the committee met
individual
those
number of
times
throughout the period and the
attendances of
meetings; or
the members at
(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.
remuneration
The Board as a whole performs the function of the
Remuneration Committee which includes setting the
Company's
structure, determining
eligibilities to incentive schemes, assessing performance
senior management and
and
determining the remuneration and incentives of the
Board.
remuneration of
from
The Board may obtain external advice
independent consultants in determining the Company's
remuneration practices, including remuneration levels,
where considered appropriate.
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 to satisfy this
recommendation.
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 Board 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.
34
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
Corporate Governance Statement
31 March 2021
Principle 8: Remunerate fairly and
responsibly (continued)
Recommendation 8.2 (continued)
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 Board 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.
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
limit the
of derivatives or otherwise) which
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
at
the
www.8viholdings.com.
Company’s
website
in
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 Non-
Executive Chairman (or the Board in the case of the Non-
Executive Chairman) must be obtained prior to trading.
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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
those
documents.
their obligations
in relation
to
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.
35
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
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Remuneration Report
For the financial year ended 31 March 2021
This remuneration report set out information about the remuneration of 8VI Holdings Limited’s key management
personnel for the financial year ended 31 March 2021. 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 8VI 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:
Clive Tan Che Koon
Chee Kuan Tat, Ken
Pauline Teo Puay Lin
Charles Mac
Gary Yeow Hin Lai
Bernard Siah
Juanna Chua
Will Huang
Non-Executive Chairman
Executive Director & Chief Executive Officer
Executive Director
Non-Executive Director
Director, Malaysia subsidiary
Chief Technology Officer
Director, China subsidiary
General Manager, Taiwan subsidiary
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 2020, is not to exceed $200,000 per annum. Directors’ fees cover all main board
activities and membership of committees if applicable.
Non-Executive Directors do not receive any retirement benefits.
Executive remuneration
Remuneration for executives is set out in employment agreements. Details of the employment agreement with Executive
Directors are provided below.
Executive Directors may receive performance-related compensation but do not receive any retirement benefits, other
than statutory Central Provident Fund (CPF) contribution.
Assessing performance
The Board is responsible for assessing performance against Key Performance Indicators (KPIs) and determining the Short-
term Incentives (STI) and Long-term Incentive (LTI) to be paid. To assist in this assessment, the Board may request detailed
reports on performance from management and market share.
The Group does not have any formal bonus scheme in place. The Group does not have any ongoing commitment to pay
bonuses.
36
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
Remuneration Report
For the financial year ended 31 March 2021
Remuneration Policy (continued)
Long-term incentive
Long-term Incentives (LTI) may be provided to key management personnel in the form of Share Plans over ordinary shares
of the Company. LTI are considered to promote continuity of employment and provide additional incentive to recipients
to increase shareholder wealth. Share Plans may only be issued to Directors subject to approval by shareholders in
general meeting.
Service Agreements
Remuneration and other terms of employment for the Executive Directors and other Key Management Personnel are
formalised in a service agreement. For Non-Executive Directors, these terms are set out in a Letter of Appointment. The
major provisions of the agreements relating to Directors’ remuneration as at date of this report are set out below.
Name
Clive Tan Che Koon
Chee Kuan Tat, Ken
Pauline Teo Puay Lin
Charles Mac
Base Salary(1)
S$nil
S$192,000 p.a.
S$216,000 p.a.
S$nil
Fees
S$43,200 p.a. (2)
S$nil
S$nil
S$42,000 p.a.(2)
Term of Agreement
No fixed term
No fixed term
No fixed term
No fixed term
Notice Period
N/A
N/A
N/A
N/A
(1) Excluding employer’s Central Provident Fund (CPF) contribution
(2) Non-executive director fee of the Company
Details of Remuneration
A breakdown showing the level and mix of each Director’s and Key Management Personnel’s remuneration for the
financial year ended 31 March 2021 is set out below:
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Name of Directors
Executive Directors
Chee Kuan Tat, Ken
Pauline Teo Puay Lin
Non-executive Directors
Clive Tan Che Koon
Charles Mac
Short-term
Bonus/
Profit-
sharing
S$’000
369
225
-
-
Salary
S$’000
192
178
-
-
Post-
employment
Share-based
Payments
Directors’
Fee
S$’000
CPF
Contribution
S$’000
Share Plan
S$’000
Total
S$’000
-
-
43
21
17
17
-
-
307
153
153
37
885
573
196
58
37
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
Remuneration Report
For the financial year ended 31 March 2021
Details of Remuneration (continued)
Name of Key
Management
Personnel
Designation
S$100,000 to below S$250,000
Gary Yeow Hin Lai
Director, 8VI Malaysia Sdn Bhd
Bernard Siah
Below S$100,000
Juanna Chua
Will Huang
Chief Technology Officer
Director, China subsidiary
General Manager, Taiwan
subsidiary
Short-term
Salary
%
Bonus
%
Post-
employment
Pension
Contribution
%
Share-based
Payments
Share Plan
%
Total
%
77
79
86
44
12
12
5
56
11
9
9
-
-
-
-
-
100
100
100
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$994,018 for the
financial year ended 31 March 2021 (2020: S$543,403).
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 2021.
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. The Company did not provide any equity compensation to Directors or executives during
the financial year ended 31 March 2021.
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 except for the Rights and Share Options granted to Directors as shown in the Directors’ Statement.
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 Board of Directors reviewed and approved the Company’s remuneration
policy.
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38
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
Remuneration Report
For the financial year ended 31 March 2021
Directors Meetings
Since the beginning of the financial year, four meetings of directors were held. Attendances by each director during the
period were as follows:
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DIRECTORS
Clive Tan Che Koon
Chee Kuan Tat, Ken
Pauline Teo Puay Lin
Charles Mac
DIRECTORS' MEETINGS
ELIGIBLE TO ATTEND
4
4
4
4
ATTENDED
4
4
3
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.
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39
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2021
The directors are pleased to present their statement to the members together with the audited consolidated
financial statements of 8VI Holdings Limited (the “Company”) and its subsidiaries (the “Group”) and the
statement of financial position and statement of changes in equity of the Company for the financial year ended
31 March 2021.
1.
Opinion of the directors
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 2021 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.
2.
Directors
The directors of the Company in office at the date of this statement are:
Clive Tan Che Koon
Pauline Teo Puay Lin
Chee Kuan Tat, Ken
Charles Mac
3.
Arrangements to enable directors to acquire shares or debentures
Neither at the end of nor at any time during the financial year was the Company a party to any
arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to
acquire benefits by means of the acquisition of shares or options in, or debentures of, the Company or
any other body corporate.
4.
Directors’ interests in shares or debentures
(a) According to the register of directors’ shareholdings kept by the Company under section 164 of the
Singapore Companies Act, Chapter 50 (the “Act”), the directors of the Company who held office at
the end of the financial year had no interests in the shares or debentures of the Company and its
related corporations except as stated below:
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
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DIRECTORS’ STATEMENT
For the financial year ended 31 March 2021
4.
Directors’ interests in shares or debentures (continued)
Holding Company, 8I Holdings Limited
(No. of ordinary shares)
Clive Tan Che Koon
Pauline Teo Puay Lin
Chee Kuan Tat, Ken
The Company, 8VI Holdings Limited
(No. of ordinary shares)
Clive Tan Che Koon
Pauline Teo Puay Lin
Chee Kuan Tat, Ken
Holdings registered in name of
director or nominee
At 31.3.2021
At 1.4.2020
65,140,000
8,859,103
86,885,009
65,140,000
8,859,103
86,684,792
200,000
184,943
400,000
-
-
-
(b) According to the register od director’s shareholdings, certain directors holding office at the end of the
financial year had interests in performance rights and options to subscribe for ordinary shares of the
Company, granted pursuant to the Company’s Employee Securities Incentive Plan set out below and
under “Rights and Share Options” below:
8VI Holdings Limited
Clive Tan Che Koon and Pauline Teo Puay Lin
Class C Performance Rights
Class D Performance Rights
Class E Performance Rights
Class F Performance Rights
Options
Chee Kuan Tat, Ken
Class C Performance Rights
Class D Performance Rights
Class E Performance Rights
Class F Performance Rights
Options
No. of unissued ordinary shares under
performance rights and options
At 31.3.2021
At 1.4.2020
100,000
100,000
125,000
125,000
500,000
200,000
200,000
250,000
250,000
1,000,000
-
-
-
-
-
-
-
-
-
-
(c) Chee Kuan Tat, Ken, who by virtue of his interest of not less than 20% of the issued capital of the
holding company, is deemed to have an interest in the share capital of the Company.
(d) The directors’ interests in the ordinary shares and convertible securities of the Company as at 21 April
2021 were the same as those as at 31 March 2021.
5.
Rights and share options
(a) Employee Securities Incentive Plan
The Company’s Employee Securities Incentive Plan (“Share Plan”) for key directors and employees of
the Group was approved by members of the Company as its annual general meeting on 23 July 2020.
The Share Plan provides a means to attract, motivate and retain key directors and employees and
provide them with the opportunity to participate in the future growth of the Company.
41
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
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DIRECTORS’ STATEMENT
For the financial year ended 31 March 2021
5.
Rights and share options (continued)
(a) Employee Securities Incentive Plan (continued)
Under the Share Plan, the board of directors may from time to time determine that a director of the
companies of the Group, subject to its members’ approval, or an employee may participate in the
Share Plan to apply for securities on such terms and conditions as the board of directors decides.
The persons to whom the rights and options have been issued have no right to participate by virtue
of the options in any share issue of any other companies of the Group. The Group has no legal or
constructive obligation to repurchase or settle the securities in cash.
During the financial year, pursuant to members’ approval at its annual general meeting on 23 July
2020, the Company granted its directors options to subscribe for 2,000,000 ordinary shares at
exercise price of AUD 0.45 per share (“Options”) and performance rights to be converted into
2,600,000 ordinary shares upon meeting the vesting conditions (“Performance Rights”).
The Options are exercisable from 21 August 2020 and expire on 30 June 2025. The total fair value of
the Options granted was estimated to be AUD 955,600 using the Hoadleys Employee Stock Option
Model. Details of the Options granted to directors of the Company are as follows:
No. of unissued ordinary shares of the Company under Options
Granted in
financial
year ended
31.3.2021
500,000
500,000
1,000,000
Aggregated
granted since
commencement
of plan to
31.3.2021
Aggregated
exercised since
commencement
of plan to
31.3.2021
Aggregate
outstanding as
at 31.3.2021
500,000
500,000
1,000,000
-
-
-
500,000
500,000
1,000,000
Name of director
Clive Tan Che Koon
Pauline Teo Puay Lin
Chee Kuan Tat, Ken
The Performance Rights will not have consideration on satisfaction of the vesting conditions. The
vesting conditions for the Performance Rights are:
- The holder being a director of the Company as at the relevant vesting determination dates
specified in the table below; and
- The relevant volume weighted average price (VWAP) of the Company’s shares traded on ASX over
any 20-day period exceeds the prices specified in the table below.
Performance Rights granted
Vesting conditions
Performance
Rights
Class A
Class B
Class C
Class D
Class E
Class F
Number
400,000
400,000
400,000
400,000
500,000
500,000
Effective
grant date
23 Jul 2020
23 Jul 2020
23 Jul 2020
23 Jul 2020
23 Jul 2020
23 Jul 2020
Fair value
per right
at
effective
grant date
(AUD)
Earliest vesting
determination
date
VWAP
Share Price
condition
(AUD)
0.4675
0.3813
0.4037
0.2016
0.2570
0.1389
21 Aug 2020
21 Aug 2020
01 Apr 2021
01 Apr 2021
01 Apr 2022
01 Apr 2022
0.45
0.60
0.70
2.00
2.30
5.00
Expiry Date
30 Apr 2021
30 Apr 2021
30 Apr 2022
30 Apr 2022
30 Apr 2023
30 Apr 2023
42
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2021
5.
Rights and share options (continued)
(a) Employee Securities Incentive Plan (continued)
The total fair value of the Performance Rights granted was estimated to be AUD 779,590 using the
Hoadleys Hybrid ESO Model (a Monte Carlo simulation model). Details of the Performance Rights
granted to directors of the Company are as follows:
No. of unissued ordinary shares of the Company under Performance Rights
Granted in
financial
year ended
31.3.2021
Aggregated
granted since
commencement
of plan to
31.3.2021
Aggregated
exercised since
commencement
of plan to
31.3.2021
Aggregate
outstanding as at
31.3.2021
Name of director
Clive Tan Che Koon
Pauline Teo Puay Lin
Chee Kuan Tat, Ken
650,000
650,000
1,300,000
650,000
650,000
1,300,000
200,000
200,000
400,000
450,000
450,000
900,000
During the financial year, the vesting conditions of the Class A Performance Rights and Class B
Performance Rights were satisfied and both classes of Performance Rights were converted into
ordinary shares. Mr Chee received 400,000 ordinary shares while Mr Tan and Ms Teo received
200,000 ordinary shares respectively from the exercising of their Class A Performance Rights and Class
B Performance Rights.
(b) Performance Rights and Options outstanding
The number of unissued shares under Performance Rights and Options in relation to the Share Plan
outstanding at the end of the financial year was as follows:
No. of unissued ordinary
shares under the rights and
options at 31.3.2021
Exercise price
Exercise period
Performance Rights
- Class C
- Class D
- Class E
- Class F
Options
400,000
400,000
500,000
500,000
2,000,000
-
-
-
-
AUD 0.45
01 Apr 2021 to 30 Apr 2022
01 Apr 2021 to 30 Apr 2022
01 Apr 2022 to 30 Apr 2023
01 Apr 2022 to 30 Apr 2023
21 Aug 2020 to 30 Jun 2025
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
DIRECTORS’ STATEMENT
For the financial year ended 31 March 2021
6.
Auditor
KLP LLP has expressed its willingness to accept re-appointment as auditor.
On behalf of the Board of Directors,
Chee Kuan Tat, Ken
Director
Singapore, 29 May 2021
Pauline Teo Puay Lin
Director
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
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Independent Auditor's Report to the members of 8VI Holdings Limited
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of 8VI 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 2021, 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 a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements of the Group and the statement of financial
position of the Company are properly drawn up in accordance with the provisions of the Companies Act, Chapter
50 (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 2021 and
of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the
Group and 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 judgment, were of most significance in our audit
of the financial statements of the current period. 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 each matter below, our description of how our audit addressed the matter is
provided in that context.
We have fulfilled our responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the accompanying financial statements.
45
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KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
Independent Auditor's Report to the members of 8VI Holdings Limited
(continued)
Key audit matters (continued)
Key audit matter in the audit of the Group
Intangible assets recognition and measurement
How our audit addressed the key audit matter
Our procedures in relation to the Group’s recognition and
measurement of development software, we:
1. Obtained an understanding and assessing the design
of the controls in relation to how management
determined and measured costs that are directly
attributable to the development activities;
2. Evaluate the nature of the development costs
incurred that are capitalised into intangible assets;
3. Assessing the reasonableness of the capitalisation
based on our knowledge of the business and industry.
4. Evaluating
the
appropriateness of expenses
capitalised on a sample basis by agreeing the costs to
internal timesheet and payroll records.
Based on the procedure performed above, we consider
the costs capitalised to be supportable by available
evidence.
Refer to Note 5 “Intangible assets”, Note 2.6 (b)
‘Summary of significant accounting policies – intangible
assets and Note 3.1 (d) “Critical accounting estimates,
assumptions and judgments” to the consolidated
financial statements.
As at 31 March 2021, the Group’s intangible assets
included development
to
S$790,401 (net of amortisation).
software amounting
During the year, the Group conducted a continuous
update on the mobile application for VI App.
Management applied judgement in identifying which
functions need updates and expenditure attributable
to the updates that met the criteria for capitalisation
under the requirements of accounting standards.
Factors taken into account by management included
the Group’s intention, availability of technical, financial
and other resources and technical ability to complete
the updates, the likelihood of generating sufficient
future economic benefits to the Group and its ability to
measure the expenditure incurred.
We considered such to be a key audit matter because
of the significance of the costs capitalised and the
judgement
the
involved
capitalisation criteria have been met.
in assessing whether
Other Information
Management is responsible for other information. The other information comprises the Board of Directors,
Corporate Governance Report and Directors’ Statement (but does not include the financial statements and our
auditor’s report thereon), which we obtained prior to the date of this auditor’s report, and the other sections
of the annual report (“the Other Sections”), which are expected to be made available to us after that date.
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
identified above when it becomes available 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.
46
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
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Independent Auditor's Report to the members of 8VI Holdings Limited
(continued)
Other Information (continued)
When we read the annual report, if we conclude that there is a material misstatement therein, we are required
to communicate the matter to those charged with governance and take appropriate actions in accordance with
SSAs.
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 Company’s internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
47
KLP LLP
13A MacKenzie Road
Singapore 228676
Tel: (65) 6227 4180
klp@klp.com.sg
www.klp.com.sg
Independent Auditor's Report to the members of 8VI Holdings Limited
(continued)
Auditor’s Responsibilities for the Audit of the Financial Statements (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.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance 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 Rochelle Santiago.
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KLP LLP
Public Accountants and
Chartered Accountants
Singapore, 29 May 2021
48
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - GROUP
As At 31 March 2021
SOFP
Assets
Non-current assets
Property, plant and equipment
Intangible assets
Investment in associated company
Financial assets, at FVOCI
Deferred tax assets
Current assets
Trade and other receivables
Current tax assets
Prepayment
Financial assets, at FVPL
Fixed deposits
Cash and cash equivalents
Total assets
Equity and liabilities
Equity attributable to owners of the Company
Share capital
Retained earnings/(Accumulated loss)
Foreign currency translation reserve
Employee securities plan reserve
Other reserves
Non-controlling interests
Total equity
Current liabilities
Trade and other payables
Unearned revenue
Lease liabilities
Provision for income tax
Non-current liabilities
Unearned revenue
Lease liabilities
Deferred tax liabilities
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Group
Note
2021
S$
2020
S$
4
5
7
8
18
9
8
10
10
11
12
13
14
15
16
17
16
17
18
1,440,868
799,706
-
7,421
296,355
2,544,350
1,493,543
73,394
516,048
3,600,947
100,000
18,629,229
24,413,161
1,572,875
439,744
-
7,443
264,331
2,284,393
1,629,839
91,960
133,980
402,305
-
7,433,590
9,691,674
26,957,511
11,976,067
13,282,193
2,422,799
(90,905)
278,750
(4,481,538)
11,411,299
876,848
12,288,147
3,446,851
9,521,393
798,089
591,617
14,357,950
233,789
73,625
4,000
311,414
12,895,103
(3,438,606)
(61,801)
-
(4,490,583)
4,904,113
243,255
5,147,368
1,648,235
3,845,802
1,146,938
116,150
6,757,125
-
67,574
4,000
71,574
Total liabilities
14,669,364
6,828,699
Total equity and liabilities
26,957,511
11,976,067
The accompanying notes form an integral part of these financial statements.
49
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
STATEMENT OF FINANCIAL POSITION - COMPANY
As At 31 March 2021
Assets
Non-current assets
Investment in subsidiaries
Current assets
Trade and other receivables
Prepayment
Cash and cash equivalents
Total assets
Equity and liabilities
Equity attributable to owners
of the Company
Share capital
Employee securities plan reserve
Accumulated losses
Total equity
Current liabilities
Trade and other payables
Unearned revenue
Total liabilities
Company
Note
2021
S$
2020
S$
6
9
10
11
13
15
16
2,568,393
2,568,393
2,760
18,516
1,574,600
1,595,876
2,568,393
2,568,393
587,747
10,093
288,525
886,365
4,164,269
3,454,758
77,810,264
278,750
(74,165,691)
3,923,323
77,423,174
-
(74,075,327)
3,347,847
240,946
-
240,946
90,811
16,100
106,911
Total equity and liabilities
4,164,269
3,454,758
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SOCI
The accompanying notes form an integral part of these financial statements.
50
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the financial year ended 31 March 2021
Note
2021
S$
19
20
21
23
Revenue
Cost of sales and services
Gross profit
Other income
Other items of expense
Administrative expenses
Marketing and other expenses
Finance costs
Share of results of associated companies
Profit before tax
Income tax expense
Profit after tax
Other comprehensive (loss)/income:
Items that may be reclassified subsequently
to profit or loss
Foreign currency translation
Items that will not be reclassified subsequently to
profit or loss
Financial assets, at FVOCI
- Fair value gains/(losses) – equity investments
Other comprehensive (loss)/income, net of tax
Total comprehensive income for the year
Total profit after tax attributable to:
Owners of the Company
Non-controlling interests
Total comprehensive income attributable to:
Owners of the Company
Non-controlling interests
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2020
S$
10,859,351
(2,957,453)
7,901,898
25,960,661
(5,894,172)
20,066,489
1,054,432
236,121
(5,994,774)
(7,559,680)
(33,693)
(3,699,332)
(3,352,423)
(81,574)
-
(135,939)
7,532,774
(1,037,169)
6,495,605
868,751
(89,330)
779,421
(17,569)
(17,569)
40,922
40,922
142
(17,427)
6,478,178
5,861,405
634,200
6,495,605
5,832,443
645,735
6,478,178
(746)
40,176
819,597
1,072,047
(292,626)
779,421
1,076,357
(256,760)
819,597
Earnings per share (cents per share)
Basic
Diluted
24
14.34
13.87
2.64
2.64
The accompanying notes form an integral part of these financial statements.
51
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 March 2021
SOCE
Accumulated
profits/
(losses)
S$
Foreign
currency
translation
reserve
S$
Share
capital
S$
Other
reserves
S$
Total equity
to owners of
the Company
S$
Non-
controlling
interest
S$
Total equity
S$
Group
Balance as at 1 April 2019
Profit/(Loss) for the year
Other comprehensive income/(loss), net of tax
Total comprehensive income/(loss) for the year
Contributions by and distributions to owners
Dilution of non-controlling interest
Acquisition of subsidiaries
Total transactions with owners in their capacity as
owners
Balance as at 31 March 2020
12,895,103
-
-
-
(4,510,653)
1,072,047
-
1,072,047
(66,857)
-
5,056
5,056
(4,546,552)
-
(746)
(746)
3,771,041
1,072,047
4,310
1,076,357
303,138
(292,626)
35,866
(256,760)
4,074,179
779,421
40,176
819,597
-
-
-
-
-
-
56,715
-
56,715
-
(64,195)
261,072
(7,480)
261,072
-
12,895,103
-
(3,438,606)
-
(61,801)
56,715
(4,490,583)
56,715
4,904,113
196,877
243,255
253,592
5,147,368
The accompanying notes form an integral part of these financial statements.
52
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 March 2021
Accumulated
profits/
(losses)
S$
Foreign
currency
translation
reserve
S$
Employee
securities
plan reserve
S$
Other
reserves
S$
Share
capital
S$
Total
equity to
owners of
the
Company
S$
Non-
controlling
interest
S$
Total
equity
S$
Group
Balance as at 1 April 2020
Profit for the year
Other comprehensive income/(loss), net of tax
Total comprehensive income/(loss) for the year
Contributions by and distributions to owners
Changes in non-controlling interest
Value of employee services
Performance rights exercised
Total transactions with owners in their capacity
as owners
Balance as at 31 March 2021
12,895,103
-
-
-
(3,438,606)
5,861,405
-
5,861,405
(61,801)
-
(29,104)
(29,104)
-
-
-
-
(4,490,583)
-
142
142
4,904,113
5,861,405
(28,962)
5,832,443
243,255
634,200
11,535
645,735
5,147,368
6,495,605
(17,427)
6,478,178
-
51,882
335,208
-
-
-
-
-
-
-
613,958
(335,208)
8,903
-
-
8,903
665,840
-
(12,142)
-
-
(3,239)
665,840
-
387,090
13,282,193
-
2,422,799
-
(90,905)
278,750
278,750
8,903
674,743
(4,481,538) 11,411,299
662,601
(12,142)
876,848 12,288,147
The accompanying notes form an integral part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 March 2021
Share
capital
S$
Employee
securities
plan reserve
S$
Accumulated
losses
S$
Total
equity
S$
Company
Balance as at 1 April 2019
Total comprehensive loss for the year
Balance as at 31 March 2020
77,423,174
-
77,423,174
Total comprehensive loss for the year
-
-
-
-
-
(73,618,732)
(456,595)
3,804,442
(456,595)
(74,075,327)
3,347,847
(90,364)
(90,364)
Contributions by and distributions to owners
Value of employee services
Performance rights exercised
Total transactions with owners in their capacity
51,882
335,208
613,958
(335,208)
-
-
665,840
-
as owners
Balance as at 31 March 2021
387,090
77,810,264
278,750
278,750
-
(74,165,691)
665,840
3,923,323
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The accompanying notes form an integral part of these financial statements.
54
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
CONSOLIDATED STATEMENT OF CASH FLOWS
For the financial year ended 31 March 2021
SOCF
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Cash flows from operating activities
Profit before tax
Adjustments for:
Amortisation of development of software
Depreciation of property, plant and equipment
Property, plant and equipment written-off
Finance cost
Impairment of financial assets
Fair value (gain)/loss in financial assets at FVPL
Gain on disposal of an associate
Gain on disposal of property, plant and equipment
Interest income
Dividend income
Employee share plan expense
Rent concession
Share of results of associated company
Unrealised exchange loss
Working capital changes in:
Trade and other receivables
Prepayment
Trade and other payables
Unearned revenue
Cash generated from operating activities
Interest income
Dividend income
Income tax paid
Net cash generated from operating activities
Cash flows from investing activities
Additions to property, plant and equipment
Additions to development of software
Acquisition of subsidiaries, net of cash acquired
Disposal in associated companies
Dilution of non-controlling interest
Investment in financial assets at FVPL
Loan to non-related party
Placement of fixed deposits
Proceeds from disposal of property, plant and equipment
Net cash (used in)/generated from investing activities
Cash flows from financing activities
Principal payment of lease liabilities
Interest paid
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of financial year
Effect of currency translation on cash and cash equivalents
Cash and cash equivalents at the end of financial year (Note 10)
2021
S$
2020
S$
7,532,774
868,751
313,134
1,631,297
34,936
33,693
175,481
(209,138)
-
(1,710)
(37,504)
(9,581)
665,840
(65,191)
-
39,813
10,103,844
12,340
(382,068)
1,642,091
5,909,380
17,285,587
37,504
9,581
(579,129)
16,753,543
(469,283)
(673,096)
-
-
(3,239)
(2,987,688)
-
(100,000)
5,995
(4,227,311)
(1,219,403)
(33,693)
(1,253,096)
11,273,136
7,433,590
(77,497)
18,629,229
97,967
1,694,801
-
81,574
74,635
4,392
(8,121)
-
(12,704)
(6,511)
-
-
135,939
34,959
2,965,682
(451,537)
45,936
132,933
1,408,402
4,101,416
12,704
6,511
(191,061)
3,929,570
(168,815)
(188,059)
936,828
20,000
(7,481)
(226,169)
(91,997)
-
-
274,307
(1,392,434)
(81,574)
(1,474,008)
2,729,869
4,702,031
1,690
7,433,590
The accompanying notes form an integral part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
These notes form an integral part and should be read in conjunction with the accompanying financial
statements.
1.
Corporate information
1.1 General
8VI Holdings Limited (the “Company”, formerly known as 8VIC Holdings Limited) is a limited liability
company incorporated and domiciled in Singapore and is listed on the Australian Securities Exchange
(ASX). The registered office and principal place of business of the Company is located at 47 Scotts Road
#03-03/04 Goldbell Towers, Singapore 228233.
The principal activities of the Company are management consultancy services.
The immediate and ultimate holding company is 8I Holdings Limited, which is incorporated and domiciled
in Singapore and is listed on the Australian Securities Exchange (ASX).
The principal activities of the subsidiaries are disclosed in Note 6 to the financial statements.
2.
Summary of significant accounting policies
2.1
Basis of preparation
The consolidated financial statements of the Group and the statement of financial position and
statement of changes in equity of the Company have been prepared in accordance with Financial
Reporting Standards in Singapore (FRSs), under the historical cost convention, except as disclosed in the
accounting policies below.
The preparation of 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 are presented in Singapore Dollars (S$).
Interpretations and amendments to published standards effective in 2020
On 1 April 2020, 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 except for the early adoption of amendment to FRS 116 Leases: Covid-19-Related Rent
Concessions:
Early adoption of amendment to FRS 116 Leases: Covid-19-Related Rent Concessions
The Group has elected to early adopt the amendment to FRS 116 which introduced a practical expedient
for a lessee to elect not to assess whether a rent concession is a lease modification, if all the following
conditions are met:
(a) the change in lease payments results in revised consideration for the lease that is substantially the
same as, or less than, the consideration for the lease immediately preceding the change;
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.1
Basis of preparation (continued)
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Early adoption of amendment to FRS 116 Leases: Covid-19-Related Rent Concessions (continued)
(b) any reduction in lease payments affects only payments originally due on or before 30 June 2021; and
(c) there is no substantive change to other terms and conditions of the lease.
The Group has elected to apply this practical expedient to all property leases. As a result of applying the
practical expedient, rent concessions of S$65,191 (Note 20) was included in “Government grants”
presented under “Other income” in the profit or loss during the year.
2.2
Revenue recognition
Revenue is measured based on the consideration to which the Group expects to be entitled in exchange
for transferring promised goods or services to a customer, excluding amounts collected on behalf of third
parties.
Revenue is recognised when the Group satisfies a performance obligation by transferring a promised
good or service to the customer, which is when the customer obtains control of the good or service. A
performance obligation may be satisfied at a point in time or over time. The amount of revenue
recognised is the amount allocated to the satisfied performance obligation.
(a) Rendering of services
The Group provides program sales, events site rental income, digital production and advertising
income. Revenue is recognised when the services have been performed and rendered.
(b) Commission income
Commission income is recognised when the corresponding service is provided.
(c) Programme fees
This comprises of providing financial education and training services. Revenue is recognised when the
participants attended first day of training. The Company will record contractual liabilities for advance
payment made for the training.
(d) Interest income
Interest income is recognised using the effective interest method.
(e) 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.
(f) Subscription income
Subscription income is recognised over the subscription period.
2.3 Government grants
Grants from the government are recognised as a receivable at their fair value when there is reasonable
assurance that the grant will be received and the Group will comply with all the attached conditions.
Government grants received are recognised as income over the periods necessary to match them with
the related costs which they are intended to compensate, on a systematic basis. Government grants
relating to expenses are shown separately as other income.
Government grants relating to assets are deducted against the carrying amount of the assets.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.4
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, inter-companies transactions and 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.
The acquisition method of accounting is used to account for business combinations entered
into by the Group.
(ii)
Acquisitions
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. Please
refer to the paragraph “Intangible assets – Goodwill on acquisitions” for the subsequent
accounting policy on goodwill.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.4
Group accounting (continued)
(a) Subsidiaries (continued)
(iii) Disposals
When a change in the Group’s ownership interest in a subsidiary result 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.
(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.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.4 Group accounting (continued)
(c) Associated companies (continued)
(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 and in the separate financial
statements of the Company.
2.5
Property, plant and equipment
(a) Measurement
(i)
(ii)
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. Dismantlement, removal
or restoration costs are included as part of the cost of property, plant and equipment if the
obligation for dismantlement, removal or restoration is incurred as a consequence of acquiring
or using the property, plant and equipment.
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.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.5
Property, plant and equipment (continued)
(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:
Office premises
Office equipment
Furniture and fittings
Motor vehicles
Useful lives
1 to 3 years
1 to 3 years
3 years
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.
(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 and (losses)”.
2.6
Intangible assets
(a) Goodwill
Goodwill on acquisitions of subsidiaries and businesses, represents the excess of (i) the sum of 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 (ii) the fair value of the
identifiable net assets acquired. Goodwill on subsidiaries is recognised separately as intangible assets
and carried at cost less accumulated impairment losses.
Goodwill on acquisitions of associated companies represents the excess of the cost of the acquisition
over the Group’s share of the fair value of the identifiable net assets acquired. Goodwill on associated
companies is included in the carrying amount of the investments.
Gains and losses on the disposal of subsidiaries and associated companies include the carrying
amount of goodwill relating to the entity sold.
(b) 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.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.6
Intangible assets (continued)
(b) Development of software (continued)
Following initial recognition of the development expenditure as an asset, the asset is carried at cost
less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset
begins when development is complete and the asset is available for use. It has a finite useful life and
is amortised over the period of expected future benefit (2 years) on a straight-line basis. Amortisation
is recorded in cost of sales. During the period of development, the asset is tested for impairment
annually.
2.7
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.
2.8
Impairment of non-financial assets
(a) Goodwill
Goodwill recognised separately as an intangible asset is tested for impairment annually and whenever
there is indication that the goodwill may be impaired.
For the purpose of impairment testing of goodwill, goodwill is allocated to each of the Group’s cash-
generating-units (“CGU”) expected to benefit from synergies arising from the business combination.
An impairment loss is recognised when the carrying amount of a CGU, including the goodwill, exceeds
the recoverable amount of the CGU. The recoverable amount of a CGU is the higher of the CGU’s fair
value less cost to sell and value-in-use.
The total impairment loss of a CGU is allocated first to reduce the carrying amount of goodwill
allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying
amount of each asset in the CGU.
An impairment loss on goodwill is recognised as an expense and is not reversed in a subsequent
period.
(b) Intangible assets
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.
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Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.8
Impairment of non-financial assets (continued)
(b) Intangible assets
Property, plant and equipment
Right-of-use assets
Investments in subsidiaries and associated companies (continued)
The difference between the carrying amount and recoverable amount is recognised as an impairment
loss in profit or loss.
An impairment loss for an asset other than goodwill is reversed only if, there has been a change in
the estimates used to determine the asset’s recoverable amount since the last impairment loss was
recognised. 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.
2.9
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.
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, trade and other receivables,
listed and unlisted debt securities.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.9
Financial assets (continued)
(a) Classification and measurement (continued)
At subsequent measurement (continued)
(i)
Debt instruments (continued)
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/(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/(losses)”.
(ii)
Equity instruments
The Group subsequently measures all its equity investments at their fair values. Equity
instruments 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/(losses)”, except
where the Group has elected to classify the investments as FVOCI.
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”.
(b) Expected credit losses
The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held
at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to receive, discounted at an approximation
of the original effective interest rate. The expected cash flows will include cash flows from the sale of
collateral held or other credit enhancements that are integral to the contractual terms.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.9
Financial assets (continued)
(b) Expected credit losses (continued)
ECLs are recognised in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is recognised for credit losses expected over the remaining life of the exposure, irrespective
of timing of the default (a lifetime ECL).
For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead recognised a loss allowance based on lifetime
ECLs at each reporting date. The Group has established a provision matrix that is based on its historical
credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic
environment which could affect debtors’ ability to pay.
For debt instruments at FVOCI, the Group applies the low credit risk simplification. At every reporting
date, the Group evaluates whether the debt instrument is considered to have low credit risk using all
reasonable and supportable information that is available without undue cost or effort. In making that
evaluation, the Company reassesses the internal credit rating of the debt instrument. In addition, the
Company considers that there has been a significant increase in credit risk when the contractual
payments are more than 90 days past due.
The Group considers a financial asset in default when contractual payments are 90 days past due.
However, in certain cases, the Group may also consider a financial asset to be default when internal
or external information indicates that the Group is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit enhancements held by the Group. A financial
asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
(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.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.9
Financial assets (continued)
(d) Recognition and derecognition (continued)
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.
2.10 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.
2.11 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 noncurrent 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.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.13 Leases (continued)
(a) When the Group is the lessee: (continued)
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
- 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.
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.
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.13 Leases (continued)
(a) When the Group is the lessee: (continued)
• Early adoption of amendment to FRS 116 Leases: Covid-19-Related Rent Concessions
The Company has applied the amendment to FRS 116 Leases: Covid-19-Related Rent Concessions.
The Company applies the practical expedient allowing it not to assess whether a rent concession
related to COVID-19 is a lease modification. The Company applies the practical expedient consistently
to contracts with similar characteristics and in similar circumstances. For rent concessions in leases
to which the Company chooses not to apply the practical expedient, or that do not qualify for the
practical expedient, the Company assesses whether there is a lease modification.
(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 retains 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.
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.14
Income taxes (continued)
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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.
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 Provisions
Provisions are measured at the present value of the expenditure expected to be required to settle the
obligation using a pre-tax discount rate that reflects the current market assessment of the time value of
money and the risks specific to the obligation. The increase in the provision due to the passage of time is
recognised in the statement of comprehensive income as finance expense.
Changes in the estimated timing or amount of the expenditure or discount rate are recognised in profit
or loss when the changes arise.
2.16 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.
Short-term compensated absences
Employee entitlements to annual leave are recognised when they accrue to employees. A provision is
made for the estimated liability for annual leave as a result of services rendered by employees up to the
reporting date.
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8VI Holdings Limited and its Subsidiaries
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.16 Employee compensation (continued)
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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 share option 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 share option 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 share option 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.
2.17 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 reporting date are
recognised in profit or loss.
When a foreign operation is disposed of or any loan forming part if the net investment of the foreign
operation is repaid, a proportion share of the accumulated currency translation differences is
reclassified to profit or loss, as part of the gain or loss on disposal.
(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)
(ii)
assets and liabilities are translated at the closing exchange rates at the reporting date;
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
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8VI Holdings Limited and its Subsidiaries
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
2.
Summary of significant accounting policies (continued)
2.17 Currency translation (continued)
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(c) Translation of Group entities’ financial statements (continued)
(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 of the entity giving rise to such
reserve.
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.
2.18 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.
2.19 Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents
include cash at banks, cash on hand and deposits with financial institutions which are subject to an
insignificant risk of change in value.
2.20 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new
ordinary shares are deducted against the share capital account.
3.
Critical accounting estimates, assumptions and judgments
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)
Provision for expected credit losses of trade receivables
The Group uses a provision matrix to calculate ECLs for trade receivables. The provision rates are
based on days past due for groupings of various customer segments that have similar loss patterns.
The provision matrix is initially based on the Group’s historical observed default rates. The Group
will calibrate the matrix to adjust historical credit loss experience with forward-looking
information. At every reporting date, historical default rates are updated and changes in the
forward-looking estimates are analysed.
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
3.
Critical accounting estimates, assumptions and judgments (continued)
3.1
Critical judgements in applying the entity’s accounting policies (continued)
(a)
Provision for expected credit losses of trade receivables (continued)
The assessment of the correlation between historical observed default rates, forecast economic
conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to changes in
circumstances and of forecast economic conditions. The Group’s historical credit loss experience
and forecast of economic conditions may also not be representative of customer’s actual default
in the future. The information about the ECLs on the Group’s trade receivables is disclosed in Note
26.
The carrying amount of the Group’s trade receivables as at 31 March 2021 was S$282,856 (2020:
S$318,298).
(b)
Deferred tax assets
Deferred tax assets in respect of current and prior period accumulated tax losses are not (unless
related to overseas jurisdictions) recognised at balance sheet date as management has assessed
that it is not probable that sufficient taxable surplus will be available to allow all or part of the
deferred income tax asset to be utilised.
(c)
Useful lives of property, plant and equipment
The useful life of an item of property, plant and equipment is estimated at the time the asset is
acquired and is based on historical experience with similar assets and takes into account
anticipated technological or other changes. If changes occur more rapidly than anticipated or the
asset experiences unexpected level of wear and tear, the useful life will be adjusted accordingly.
The carrying amounts of the Group’s property, plant and equipment as at 31 March 2021 was
S$1,440,868 (2020: S$1,572,875).
(d)
Amortisation and useful lives of intangible assets
The Group estimates the useful lives to amortise intangible assets based on the future
performance of the assets acquired and management's judgement of the period over which
economic benefits will be derived from the assets. The estimated useful lives of intangible assets
are reviewed periodically, taking into consideration factors such as changes in technology. The
amount and timing of recorded expenses for any period would be affected by changes in the
estimates. A reduction in the estimated useful lives of the intangible assets would increase the
recorded expenses and decrease the non-current assets.
The cost of intangible asset is amortised on a straight-line basis over the assets' useful lives.
Directors estimate the useful lives of these intangible assets to be 2 years.
(e)
Determination of lease term of contracts with extension options
As at 31 March 2021, the Group’s lease liabilities, which are measured with reference to an
estimate of the lease term, amounted to S$871,714, of which none 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.
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
3.
Critical accounting estimates, assumptions and judgments (continued)
3.1
Critical judgements in applying the entity’s accounting policies (continued)
(e)
Determination of lease term of contracts with extension options (continued)
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.
As at 31 March 2021, the Group did not include the extension option in the lease term for leases
of office premises as it is not certain that the extension options will be exercised.
(f)
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.
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
4.
Property, plant and equipment
Group
Cost
At 1 April 2019
Adoption of FRS116
Additions
Acquisition of subsidiaries
Exchange differences
At 31 March 2020
Additions
Disposals
Written off
Exchange differences
At 31 March 2021
Accumulated depreciation
At 1 April 2019
Depreciation
Exchange differences
At 31 March 2020
Depreciation
Disposals
Written off
Exchange differences
At 31 March 2021
Net carrying amount
At 31 March 2020
At 31 March 2021
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Furniture and
fittings
S$
Office
equipment
S$
Motor
vehicles
S$
Office
premises
S$
-
2,497,157
2,497,157
70,928
-
8,693
2,576,778
969,403
-
(2,189,602)
(7,424)
1,349,155
104,128
-
104,128
-
-
(345)
103,783
-
-
-
(2,257)
101,526
67,683
20,649
(116)
88,216
15,368
-
-
(2,058)
101,526
-
1,381,191
6,256
1,387,447
1,263,914
-
(2,165,814)
(4,399)
481,148
Total
S$
1,654,422
2,497,157
4,151,579
239,743
2,944
34,826
4,429,092
1,543,686
(5,998)
(2,466,062)
(76,518)
3,424,200
1,132,856
1,694,801
28,560
2,856,217
1,631,297
(1,713)
(2,431,126)
(71,343)
1,983,332
1,167,312
-
1,167,312
90,607
1,320
16,598
1,275,837
148,703
(1,471)
(264,308)
(36,269)
1,122,492
754,691
235,604
13,549
1,003,844
219,628
(204)
(254,114)
(35,110)
934,044
382,982
-
382,982
78,208
1,624
9,880
472,694
425,580
(4,527)
(12,152)
(30,568)
851,027
310,482
57,357
8,871
376,710
132,387
(1,509)
(11,198)
(29,776)
466,614
271,993
188,448
95,984
384,413
15,567
1,189,331
-
868,007
1,572,875
1,440,868
(a) The carrying amounts of motor vehicles held under finance leases are S$Nil (2020: S$15,567) at the end
of reporting period. The hire purchase liabilities had been fully settled during the financial year.
(b) Right-of-use assets acquired under leasing arrangements are presented as “office premises”.
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Annual Report FY2021
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
5.
Intangible assets
Compositions:
Goodwill (a)
Development of software (b)
(a) Goodwill
Cost
Beginning of financial year
Addition from acquisition of subsidiaries
End of financial year
(b) Development of software
Cost
Beginning of financial year
Acquisition of subsidiaries
Additions
End of financial year
Accumulated amortisation
Beginning of financial year
Amortisation charged
End of financial year
Carrying amount
Group
2021
S$
9,305
790,401
799,706
2020
S$
9,305
430,439
439,744
Group
2021
S$
2020
S$
9,305
-
9,305
Group
2021
S$
528,406
-
673,096
1,201,502
97,967
313,134
411,101
-
9,305
9,305
2020
S$
-
340,347
188,059
528,406
-
97,967
97,967
790,401
430,439
(c) Amortisation expense included in the statement of comprehensive income is analysed as follows:
Administrative expenses
313,134
97,967
Group
2021
S$
2020
S$
6.
Investment in subsidiaries
Shares, at cost
Addition of subsidiaries
Less: Allowance for impairment losses
Company
2021
S$
2020
S$
29,418,798
-
(26,850,405)
2,568,393
29,140,848
277,950
(26,850,405)
2,568,393
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
6.
Investment in subsidiaries (continued)
a)
Composition of the Group
The Group has the following investment in subsidiaries.
Name
Held by the Company
8VI Global Pte. Ltd. (a)
8Bit Global Pte. Ltd. (a)
Held through 8VI Global Pte. Ltd.
8VIC Singapore Pte. Ltd. (d)
8VI Malaysia Sdn. Bhd. (b)
8VI Taiwan Co., Ltd. (d)
8VIC (Thailand) Co., Ltd. (d)
Value Investing College Pte. Ltd. (d)
8VI China Pte. Ltd. (a)
Held through 8VI Malaysia Sdn Bhd
8VIC JooY Media Sdn Bhd (c)
Held through 8VI China Pte. Ltd.
8VI China (Shanghai) Co. Ltd (d)
Principal
place of
business
Principal activities
Singapore
Singapore
Conducting business courses
Computer programming and data
processing and hosting
Singapore Dormant
Conducting business courses
Malaysia
Conducting business courses
Taiwan
Thailand
Dormant
Singapore Dormant
Singapore
Investment holdings
Proportion
of
ownership
interest
2021 2020
%
100
51
%
100
51
100
100
70
90.6
100
65
100
100
70
90.6
100
65
Malaysia
Agency and media
100
70
People’s
Republic of
China
Business and management consultancy
services
65
65
Held through 8VI China (Shanghai) Co. Ltd
Shanghai Ba Tou Culture Media Co.
Ltd (d)
People’s
Republic of
China
(a) Audited by Group auditor, KLP LLP
(b) Audited by Crowe Malaysia PLT
(c)
Audited by CWC & ENG PLT
(d) No statutory audit required
Seminar and programs organiser
65
-
Significant restrictions
Cash and short-term deposits of S$297,811 (2020: S$130,608) are held in the People’s Republic of China and are
subject to local exchange control regulations. These local exchange control regulations provide for restrictions
on exporting capital from the country, other than through normal dividends.
b)
Interest in subsidiaries with material non-controlling interest (NCI)
The Group has the following subsidiary that has NCI that are material to the Group.
Principal
place of
business
Proportion of
ownership interest
held by non-
controlling interest
Name
8Bit Global Pte. Ltd.
Singapore
49%
76
Profit allocated
to NCI during the
reporting period
S$
890,618
Accumulated NCI
at the end of
reporting period
S$
1,082,965
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
6.
c)
Investment in subsidiaries (continued)
Summarised financial information about subsidiary with material NCI
Summarised financial information including goodwill on acquisition and consolidation adjustments but
before intercompany eliminations of subsidiaries with material non-controlling interests, from date of
acquisition, are as follows:
Summarised statement of financial position
Current
Assets
Liabilities
Net current assets
Net assets
Summarised statement of comprehensive income
Revenue
Profit/(Loss) before tax
Income tax expense
Total comprehensive income/(loss) for the year
Other summarised information
Net cash flows from operating activities
Net cash flows used in investing activities
Net cash flows from financing activities
Subsidiary with material NCI
2020
S$
2021
S$
4,879,223
(3,497,263)
1,381,960
2,210,133
1,099,951
(1,137,843)
(37,892)
392,546
4,204,782
1,779,815
-
1,817,587
539,972
(134,209)
-
(134,209)
3,980,536
(673,036)
-
56,568
(188,059)
500,000
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
7.
Investment in associated company
Group
2021
S$
2020
S$
Investment in associated company, at carrying amount
-
-
Set out below is the associated company of the Group as at 31 March 2021, which, in the opinion of the
directors, is material to the Group. The associated company as listed below have share capital consisting
solely of ordinary shares, which is held directly by the Group; the country of incorporation is also its
principal place of business.
Name of entity
Held through 8VI Global Pte. Ltd.
Learnpod Pte. Ltd.
8.
Financial assets at FVPL and at FVOCI
Place of business/
country of
incorporation
% of ownership
interest
2021
2020
Singapore
30.0%
30.0%
Group
Company
2021
S$
2020
S$
2021
S$
2020
S$
Current – listed quoted equity securities
Financial assets, at FVPL
3,600,947
402,305
-
-
Non-current – listed quoted equity securities
Financial assets, at FVOCI
7,421
7,443
-
-
3,608,368
409,748
-
-
9.
Trade and other receivables
Trade receivables
- third parties
Less: Allowance for credit losses
(Note 26(b))
Trade receivables (net)
Other receivables
Amount due from subsidiaries
Deposits
GST receivables
Group
2021
S$
2020
S$
Company
2021
S$
2020
S$
387,505
455,835
(104,649)
282,856
(137,537)
318,298
121,453
-
1,082,955
6,279
1,493,543
339,006
-
926,883
45,652
1,629,839
-
-
-
2,760
-
-
-
2,760
-
-
-
40,671
547,076
-
-
587,747
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Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
9.
Trade and other receivables (continued)
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Trade receivables are unsecured, non-interest bearing and are generally on 7 to 30 days terms (2020: 7
to 30 days).
Included in current deposits are bankers’ guarantee of S$426,000 (2020: S$190,000) as required by Global
Payments Asia Pacific (Hong Kong Holding) Limited and Green World FinTech Service Co., Ltd. in order to
provide services in accordance to the merchant agreements.
Related party balances
Amount due from subsidiaries are non-trade, unsecured, interest-free and with no fixed terms of
repayment.
10.
Cash and cash equivalents
Cash on hand
Cash at banks
Short-term bank deposits
Fixed deposits
Group
Company
2021
S$
32,945
15,971,196
2,625,088
100,000
18,729,229
2020
S$
45,814
4,377,776
3,010,000
-
7,433,590
2021
S$
-
1,574,600
-
-
1,574,600
2020
S$
-
288,525
-
-
288,525
Cash at banks earn interest at floating rates based on daily bank deposit rates. Short-term bank deposits
have maturity of one to three months and a weighted average effective interest rates of 1.52% (2020:
1.42%) per annum of the Group. Fixed deposits have maturity of more than three months and bear
interest rate of 0.15% (2020: Not applicable).
For the purpose of presenting the consolidated statement of cash flows, cash and cash equivalents
comprise the following:
Group
2021
S$
2020
S$
Cash and bank balances (as above)
Less: Fixed deposits
Cash and cash equivalents per consolidated statement of cash flows
18,729,229
(100,000)
18,629,229
7,433,590
-
7,433,590
11.
Share capital
2021
2020
No. of shares(1)
S$
No. of shares(1)
S$
Group
Issued and fully paid ordinary shares
At beginning of financial year
Issuance of shares under Employee
Securities Incentive Plan
At end of financial year
40,545,626
12,895,103
40,545,626
12,895,103
828,800
41,374,426
387,090
13,282,193
-
40,545,626
-
12,895,103
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
11.
Share capital (continued)
2021
2020
No. of shares(1)
S$
No. of shares(1)
S$
Company
Issued and fully paid ordinary shares
At beginning of financial year
Issuance of shares under Employee
Securities Incentive Plan
At end of financial year
40,545,626
77,423,174
40,545,626
77,423,174
828,800
41,374,426
387,090
77,810,264
-
40,545,626
-
77,423,174
The holders of ordinary shares are entitled to receive dividends as and when declared by the Company.
All ordinary shares carry one vote per share without restrictions. The ordinary shares have no par value.
(1) The equity structure (i.e. the number and types of equity instruments issued) reflect the equity
structure of the Company, being the legal parent, including the equity instruments issued by the
Company to effect the reverse acquisition.
12.
Foreign currency translation reserve
The foreign currency translation reserve represents exchange differences arising from the translation of
the financial statements of foreign operations whose functional currencies are different from that of the
Group’s presentation currency.
13.
Employee securities plan reserve
Movement:
Beginning of financial year
Value of employee services
Performance rights exercised
End of financial year
Group/Company
2021
S$
-
613,958
(335,208)
278,750
2020
S$
-
-
-
-
The Company’s Employee Securities Incentive Plan (“Share Plan”) for key directors and employees of the
Group was approved by members of the Company as its annual general meeting on 23 July 2020. The
Share Plan provides a means to attract, motivate and retain key directors and employees and provide
them with the opportunity to participate in the future growth of the Company.
Under the Share Plan, the board of directors may from time to time determine that a director of the
companies of the Group, subject to its members’ approval, or an employee may participate in the Share
Plan to apply for securities on such terms and conditions as the board of directors decides.
The persons to whom the rights and options have been issued have no right to participate by virtue of
the options in any share issue of any other companies of the Group. The Group has no legal or
constructive obligation to repurchase or settle the securities in cash.
During the financial year, pursuant to members’ approval at its annual general meeting on 23 July 2020,
the Company granted its directors options to subscribe for 2,000,000 ordinary shares at exercise price of
AUD 0.45 per share (“Options”) and performance rights to be converted into 2,600,000 ordinary shares
upon meeting the vesting conditions (“Performance Rights”).
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Annual Report FY2021
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
13.
Employee securities plan reserve (continued)
The Options are exercisable from 21 August 2020 and expire on 30 June 2025. The total fair value of the
Options granted was estimated to be AUD 955,600 using the Hoadleys Employee Stock Option Model.
The Performance Rights will not have consideration on satisfaction of the vesting conditions. The vesting
conditions for the Performance Rights are:
- The holder being a director of the Company as at the relevant vesting determination dates specified
in the table below; and
- The relevant volume weighted average price (VWAP) of the Company’s shares traded on ASX over
any 20-day period exceeds the prices specified in the table below.
Performance Rights granted
Vesting conditions
Performance
Rights
Class A
Class B
Class C
Class D
Class E
Class F
Number
400,000
400,000
400,000
400,000
500,000
500,000
Effective
grant date
23 Jul 2020
23 Jul 2020
23 Jul 2020
23 Jul 2020
23 Jul 2020
23 Jul 2020
Fair value
per right
at
effective
grant date
(AUD)
Earliest vesting
determination
date
VWAP
Share Price
condition
(AUD)
0.4675
0.3813
0.4037
0.2016
0.2570
0.1389
21 Aug 2020
21 Aug 2020
01 Apr 2021
01 Apr 2021
01 Apr 2022
01 Apr 2022
0.45
0.60
0.70
2.00
2.30
5.00
Expiry Date
30 Apr 2021
30 Apr 2021
30 Apr 2022
30 Apr 2022
30 Apr 2023
30 Apr 2023
The total fair value of the Performance Rights granted was estimated to be AUD 779,590 using the
Hoadleys Hybrid ESO Model (a Monte Carlo simulation model).
Movements in the number of unissued ordinary shares of the Company under the Share Plan and their
exercise prices are as follows:
No. of unissued ordinary shares of the Company
under Share Plan
Exercised
during the
financial
year
Granted
during the
financial
year
End of
financial
year
Beginning
of financial
year
Exercise
price
Exercise period
Performance
Rights:
- Class A
- Class B
- Class C
- Class D
- Class E
- Class F
Options
-
-
-
-
-
-
-
-
400,000
400,000
400,000
400,000
500,000
500,000
2,000,000
4,600,000
(400,000)
(400,000)
-
-
-
-
-
-
-
400,000
400,000
500,000
500,000
21.08.2020-30.04.2021
21.08.2020-30.04.2021
01.04.2021-30.04.2022
01.04.2021-30.04.2022
01.04.2022-30.04.2023
01.04.2022-30.04.2023
2,000,000 AUD 0.45 21.08.2020-30.06.2025
-
-
-
-
-
-
(800,000) 3,800,000
There were no unissued ordinary shares under Share Plan in financial year 2020.
During the financial year, the vesting conditions of the Class A and Class B Performance Rights were
satisfied and both classes of Performance Rights were exercised. 800,000 ordinary shares of 8VI were
issued to the holders of Class A and Class B Performance Rights.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
14. Other reserves
Other reserves comprise of premium paid on acquisition of 49% non-controlling interest in 8VIC
Singapore Pte. Ltd. during the financial year ended 31 March 2017.
15.
Trade and other payables
Group
2021
S$
2020
S$
Company
2021
S$
2020
S$
Trade payables
- third parties
Other payables
Accruals
Amount due to holding company
Amount due to related companies
GST payable
474,973
213,394
2,105,504
-
392,627
260,353
3,446,851
199,247
283,448
687,474
-
301,730
176,336
1,648,235
5,545
-
196,341
-
-
39,060
240,946
5,561
-
81,393
3,857
-
-
90,811
Trade payables are non-interest bearing and are generally payable based on agreed terms between the
parties.
Amount due to holding company and related companies are non-trade, unsecured, interest-free and with
no fixed terms of repayment.
16. Unearned revenue
Current:
Advances from customers
Deferred grant income
Non-current:
Advances from customers
Group
2021
S$
9,521,393
-
9,521,393
2020
S$
3,696,702
149,100
3,845,802
233,789
-
9,755,182
3,845,802
Company
2021
S$
2020
S$
-
-
-
-
-
-
16,100
16,100
-
16,100
Advances from customers represent amount received from customers but not yet recognised to the profit
or loss as service has yet to be rendered as at reporting date.
17.
Lease liabilities
Lease liabilities - current
Lease liabilities – non-current
Total
Group
2021
S$
2020
S$
798,089
73,625
871,714
1,146,938
67,574
1,214,512
82
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
17.
Lease liabilities (continued)
(i)
Lease liabilities - The Group as a lessee
Nature of the Group’s leasing activities
The Group leases office premises for the purpose of running financial education programmes and back
office operations.
(a)
Carrying amounts
ROU assets classified within property, plant and equipment
31 March 2021
S$
31 March 2020
S$
Office premises
868,007
1,189,331
(b) Depreciation charged during the financial year
Office premises
1,263,914
1,381,191
(c)
Interest expense
Interest expense on lease liabilities
33,693
80,429
2021
S$
2020
S$
(d)
(e)
(f)
(g)
(h)
The lease expense not capitalised in lease liabilities from low value leases was S$3,293
(2020: S$Nil).
Total income from subleasing ROU assets in 2021 was S$60,632 (2020: S$154,783).
Net cash outflow for all the office leases in 2021 was S$1,253,096 (2020: S$1,436,440).
Addition of ROU assets during the financial year 2021 was S$969,403 (2020: S$70,928).
Reconciliation of lease liabilities arising from financing activities:
Beginning of financial year
Principal and interest payments
Non-cash changes
- Adoption of FRS 116
- Addition during the year
- Rent concession
- Interest expense
- Written off
- Foreign exchange movement
End of financial year
2021
S$
2020
S$
1,214,512
(1,253,096)
36,424
(1,474,008)
-
969,403
(65,191)
33,693
(23,788)
(3,819)
871,714
2,497,157
70,928
-
81,574
-
2,437
1,214,512
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83
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
17.
Lease liabilities (continued)
(ii)
Lease liabilities – the Group as a lessor
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Nature of the Group’s leasing activities – Group as an intermediate lessor
Subleases – classified as operating leases
The Group acts as an intermediate lessor under arrangement in which it subleases out office space to a
third party for monthly lease payments. The sublease periods do not form a major part of the remaining
lease terms under the head leases and accordingly, the sub-leases are classified as operating leases.
Income from subleasing the office space recognised during the financial year 2021 was S$60,632 (2020:
S$154,783). The Group is no longer lessor as at balance sheet date.
(iii)
Borrowings
The subsidiary of the Company had secured SGD 1 million temporary bridging loan, with 3% interest rate
per annum, guaranteed by the Company. None has been drawn down as at balance sheet date.
18.
Deferred income taxes
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current income tax assets against current income tax liabilities and when the deferred income taxes relate
to the same taxation authority.
The amounts, determined after appropriate offsetting, are shown on the balance sheet as follows:
Group
2021
S$
2020
S$
Company
2021
S$
2020
S$
Deferred tax assets:
- Accelerated tax depreciation
- Unearned revenue
Deferred tax liabilities:
- Accelerated tax depreciation
Net deferred tax assets:
2,321
294,034
296,355
(4,000)
292,355
2,373
261,958
264,331
-
-
-
-
-
-
(4,000)
260,331
-
-
-
-
The movement in net deferred income tax (assets)/liabilities is as follows:
Beginning of financial year
Tax credited to profit or loss
Currency translation differences
End of financial year
Group
2021
S$
(260,331)
(37,772)
5,748
(292,355)
2020
S$
(174,865)
(86,058)
592
(260,331)
Company
2021
S$
2020
S$
-
-
-
-
-
-
-
-
84
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
18.
Deferred income taxes (continued)
The Group has unrecognised tax losses of S$Nil (2020: S$2,739,695) and capital allowances of S$Nil (2020:
S$Nil) at the balance sheet date which can be carried forward and used to offset against future taxable
income subject to meeting certain statutory requirements by those companies with unrecognised tax
losses and capital allowances in their respective countries of incorporation. The tax losses and capital
allowances have no expiry date.
19.
Revenue
Type of goods or services
Subscription income
Programme fees
Commission income
Rendering of services
Timing of transfer of goods or services
At a point of time
Over time
20. Other income
Dividend income
Fair value gain/(loss) on financial assets at FVPL
Gain on disposal of associated company
Gain on disposal of property, plant and equipment
Interest income
Government grants
Rental income
Miscellaneous income
Group
2021
S$
2020
S$
5,212,642
20,385,924
277,138
84,957
25,960,661
539,972
10,041,699
128,088
149,592
10,859,351
20,740,794
5,219,867
25,960,661
10,319,379
539,972
10,859,351
Group
2021
S$
9,581
209,138
-
1,710
37,504
698,537
60,632
37,330
1,054,432
2020
S$
6,511
(4,392)
8,121
-
12,704
44,915
154,783
13,479
236,121
Included within Government grants are Covid-19 related rent concessions received from lessors of
S$65,191 to which the Group applied the practical expedient as disclosed in Note 2.1.
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Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
21.
Profit before tax
The following items have been included in arriving at profit before tax:
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Agency cost
Amortisation of development of software
Audit fee:
- Auditors of the Company
- Other auditors
Depreciation of property, plant and equipment
Foreign exchange differences (net)
Impairment of financial assets
IT expenses
Marketing expenses
Merchant charges
Office expenses
Other COS
Professional fees
Program costs
Property, plant and equipment written-off
Speakers’ fees
Software expenses
Travelling expenses
Employee benefits expense (Note 22)
22.
Employee benefits expense
Employee benefits expenses (including directors)
Salaries, fees and bonus
CPF Contributions
Employee Securities Share Plan
Commissions and other benefits
Group
2021
S$
10,967
313,134
44,525
17,382
1,631,297
125,750
175,481
235,979
5,394,321
1,228,428
174,828
88,501
351,679
263,106
34,936
1,038,894
438,240
298,543
6,695,816
2020
S$
59,370
97,967
56,750
10,770
1,694,801
4,218
74,635
185,601
2,369,969
589,493
196,902
61,990
139,395
671,062
-
206,435
53,671
318,949
2,931,499
Group
2021
S$
2020
S$
3,672,143
509,002
665,840
1,848,831
6,695,816
2,225,176
294,258
-
412,065
2,931,499
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Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
23.
Income tax
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The major components of income tax expenses recognised in profit or loss for the years ended 31 March
2021 and 2020 were:
Current income tax:
Current year
Under/(Over) provision in respect of prior years
Deferred income tax:
Current year
Group
2021
S$
1,046,198
28,743
1,074,941
2020
S$
184,706
(9,318)
175,388
(37,772)
(86,058)
Income tax expense recognised in profit or loss
1,037,169
89,330
Relationship between tax expenses and accounting profit
A reconciliation between tax expenses and the product of accounting profit multiplied by the applicable
corporate tax rate for the financial years ended 31 March 2021 and 2020 were as follows:
Group
2021
S$
Profit before tax
Share of results of associated company, net of tax
Profit before tax and share of results of associated company
7,532,774
-
7,532,774
2020
S$
868,751
135,939
1,004,690
Income tax using the statutory tax rate of 17% (2020: 17%)
1,280,572
170,797
Tax effects of:
Non-deductible expenses
Income not subject to taxation
Tax exemptions
Deferred tax assets recognised
Deferred tax assets not recognised
Utilisation of previously unrecognised deferred tax assets
Utilisation of group relief
Effect of tax rates in foreign jurisdictions
Under/(Over) provision in respect of prior years
Income tax expense recognised in profit or loss
501,834
(118,737)
(102,500)
(37,772)
6,592
(571,377)
(107,215)
157,029
28,743
1,037,169
30,598
(13,902)
(32,425)
-
237,108
(307,815)
-
14,287
(9,318)
89,330
The above reconciliation is prepared by aggregating separate reconciliations for each national jurisdiction.
87
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Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
23.
Income tax (continued)
Movement in current income tax liabilities/(assets):
Group
2021
S$
2020
S$
Company
2021
S$
2020
S$
Beginning of financial year
Income tax paid
Tax expense
Under/(Over) provision in respect of prior years
Currency translation differences
End of financial year
24,190
(579,129)
1,046,198
28,743
(1,779)
518,223
41,947
(191,061)
184,706
(9,318)
(2,084)
24,190
-
-
-
-
-
-
-
-
-
-
-
-
24.
Earnings per share
(a) Basic earnings per share
The basic and diluted earnings per share are calculated by dividing profit net of tax by the weighted
average number of ordinary shares during the financial period.
The following table reflect the profit and share data used in the computation of basic and diluted
earnings per share for the year ended 31 March 2021 and 2020:
Group
2021
2020
Net profit attributable to equity holders of the Company (S$)
5,861,405
1,072,047
Weighted average number of ordinary shares outstanding for basic
earnings per share
40,867,766
40,545,626
Basic earnings per share (Singapore cents per share)
14.34
2.64
(b) Diluted earnings per share
For the purpose of calculating diluted earnings per share, profit attributable to equity holders of the
Company and the weighted average number of ordinary shares outstanding are adjusted for the
effects of all dilutive potential ordinary shares. The Company has one category of dilutive potential
ordinary shares: share options.
For share options, the weighted average number of shares on issue has been adjusted as if all dilutive
share options were exercised. The number of shares that could have been issued upon the exercise
of all dilutive share options less the number of shares that could have been issued at fair value
(determined as the Company’s average share price for the financial year) for the same total proceeds
is added to the denominator as the number of shares issued for no consideration. No adjustment is
made to the net profit.
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For the financial year ended 31 March 2021
24.
Earnings per share (continued)
(b) Diluted earnings per share (continued)
Group
2021
2020
Net profit attributable to equity holders of the Company (S$)
5,861,405
1,072,047
Weighted average number of ordinary shares outstanding for basic
earnings per share
Adjusted for share options
40,867,766
1,402,449
42,270,215
40,545,626
-
40,545,626
Diluted earnings per share (Singapore cents per share)
13.87
2.64
25.
Significant related party transactions
In addition to the related party information disclosed elsewhere in the financial statements, the following
transactions with related parties took place at terms agreed between the parties during the financial
year:
Group
2021
S$
221,283
(234,000)
(224,000)
Group
2021
S$
1,485,465
67,097
613,958
2,166,520
2020
S$
291,340
(185,000)
(24,000)
2020
S$
712,193
62,947
-
775,140
Cost of lease sharing charged to related parties
Admin handling expenses charged by related parties
Consultancy expense charged by related parties
Compensation of key management personnel
Salaries, fees and bonus
CPF Contributions
Employee Securities Share Plan
26.
Financial risk management
Financial risk factors
The Group’s activities expose it to market risk (including currency risk, interest rate 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. The audit committee provides independent oversight
to the effectiveness of the risk management process.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
26.
Financial risk management (continued)
(a) Market risk
(i) Currency risk
The Group operates in Asia with dominant operations in Singapore and Malaysia. 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 Singapore Dollar (“SGD”), Malaysian Ringgit (“MYR”), Australian Dollar
(“AUD”), United States Dollar (“USD”), Chinese Renminbi (“RMB”), New Taiwan Dollar (“NTD”),
Thailand Baht (“THB”) and Hong Kong Dollar (“HKD”).
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,
Taiwan 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:
At 31 March 2021
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets, at FVPL
Financial assets, at FVOCI
Financial liabilities
Trade and other payables
Lease liabilities
MYR
S$
USD
S$
AUD
S$
NTD
S$
RMB
S$
HKD
S$
6,627,759
103,533
187,544
7,421
6,926,257
327,790
-
3,250,055
-
3,577,845
11,839
-
27,213
-
39,052
328,136
708,957
-
-
1,037,093
297,811
462
-
-
298,273
-
-
49,135
-
49,135
(865,659)
(97,946)
(963,605)
-
-
-
(4,689)
-
(4,689)
(76,872)
(199,161)
(276,033)
-
-
-
-
-
-
Net financial assets
5,962,652
3,577,845
34,363
761,060
298,273
49,135
Currency exposure of
financial (liabilities)
/assets net of those
denominated in the
respective entities’
functional currencies
(76) 3,577,845
34,363
17,975
-
49,135
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
26.
Financial risk management (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
MYR
S$
USD
S$
AUD
S$
NTD
S$
THB
S$
RMB
S$
1,137,400
128,155
187,358
7,443
1,460,356
126,538
-
151,409
-
277,947
74,243
-
-
-
74,243
91,192
379,781
-
-
470,973
27,063
-
-
-
27,063
257,360
61,026
-
-
318,386
(245,077)
(222,140)
(467,217)
(10,851)
-
(10,851)
(5,561)
-
(5,561)
(27,280)
(107,918)
(135,198)
-
(32,122)
(32,122)
(9,485)
-
(9,485)
At 31 March 2020
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial assets, at FVPL
Financial assets, at FVOCI
Financial liabilities
Trade and other payables
Lease liabilities
Net financial
assets/(liabilities)
993,139
267,096
68,682
335,775
(5,059)
308,901
Currency exposure of
financial assets/
(liabilities) net of those
denominated in the
respective entities’
functional currencies
-
267,096
66,317
12,385
-
(4,216)
The Company’s currency exposure based on the information provided to key management is as
follows:
At 31 March 2021
Financial assets
Cash and cash equivalents
Financial liabilities
Trade and other payables
Net financial assets
USD
S$
AUD
S$
30,330
11,839
-
(4,689)
30,330
7,150
Currency exposure of financial assets net of those
denominated in the respective entities’ functional currencies
30,330
7,150
At 31 March 2020
Financial assets
Cash and cash equivalents
Financial liabilities
Trade and other payables
Net financial assets
32,075
71,878
-
(5,561)
32,075
66,317
Currency exposure of financial assets net of those
denominated in the respective entities’ functional currencies
32,075
66,317
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8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
26.
Financial risk management (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
If the AUD, USD, NTD, RMB and HKD change against the SGD by 17% (2020: 8%), 5% (2020: 5%),
2% (2020: 7%), 2% (2020: 3%), 7% (2020: not applicable) respectively with all other variables
including tax rate being held constant, the effects arising from the net financial asset that are
exposed to currency risk will be as follows:
Increase / (Decrease)
Profit after tax
Group
2021
S$
2020
S$
Company
2021
S$
2020
S$
4,849
(4,849)
4,403
(4,403)
1,009
(1,009)
4,403
(4,403)
148,481
(148,481)
11,084
(11,084)
1,259
(1,259)
1,331
(1,331)
298
(298)
-
-
2,855
(2,855)
720
(720)
(105)
105
-
-
-
-
-
-
-
-
-
-
-
-
-
-
AUD against SGD
- Strengthened
- Weakened
USD against SGD
- Strengthened
- Weakened
NTD against SGD
- Strengthened
- Weakened
RMB against SGD
- Strengthened
- Weakened
HKD against SGD
- Strengthened
- Weakened
(ii) Price risk
The Group is exposed to equity securities price risk arising from the investments held by the Group
which are classified either as financial assets, at FVPL or FVOCI. These securities are listed in
Singapore, Malaysia and the United States. 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 Singapore, Malaysia, the United States, Australia and Hong
Kong had changed by 49% (2020: 17%), 49% (2020: 17%), 69% (2020: 17%), 49% (2020: not
applicable) and 49% (2020: not applicable) respectively with all other variables including tax rate
being held constant, the effects on profit after tax and other comprehensive income would have
been:
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
26.
Financial risk management (continued)
(a) Market risk (continued)
(ii) Price risk (continued)
Increase / (Decrease)
Profit after tax
2021
2020
Profit after
tax
S$
Other
comprehensive
income
S$
Profit after
tax
S$
Other
comprehensive
income
S$
35,383
(35,383)
-
-
8,918
(8,918)
-
-
76,274
(76,274)
3,018
(3,018)
26,484
(26,484)
1,050
(1,050)
Group
Listed in Singapore
- increased by
- decreased by
Listed in Malaysia
- increased by
- decreased by
Listed in the United States
- increased by
- decreased by
1,861,306
(1,861,036)
Listed in Australia
- increased by
- decreased by
Listed in Hong Kong
- increased by
- decreased by
(b) Credit risk
11,068
(11,068)
19,983
(19,983)
-
-
-
-
-
-
21,364
(21,364)
-
-
-
-
-
-
-
-
-
-
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.
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Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
26.
Financial risk management (continued)
(b) Credit risk (continued)
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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
Performing
Underperforming
Non-performing
Write-off
Group and Company’s definition of category
Customers have a low risk of default and a strong capacity
to meet contractual cash flows.
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.
Interest and/or principal repayments are 60-365 days past
due.
Interest and/or principal repayments are 365 days past due
and there is no reasonable expectation of recovery.
Basis for
recognition of
expected credit loss
provision
12-month expected
credit losses
Lifetime expected
credit losses
Lifetime expected
credit losses
Asset is written off
Movements in credit loss allowance for trade receivables are set out as follows:
Balance at beginning of year
(Reversal)/Charge for the year
Written off
Exchange differences
Balance at end of year (Note 9)
Group
2021
S$
137,537
(32,731)
-
(157)
104,649
2020
S$
77,067
62,635
(2,165)
-
137,537
Company
2021
S$
2020
S$
-
-
-
-
-
-
-
-
-
-
The Group’s credit risk exposure in relation to trade receivables, under FRS 109 as at 31 March 2021
are set out in the provision matrix as follows:
2021
Expected loss rate
Gross carrying amount (S$)
Credit loss allowance (S$)
2020
Expected loss rate
Gross carrying amount (S$)
Credit loss allowance (S$)
Current
1-30 days
Past due
31-60
days
61-90
days
> 90 days
Total
0%
278,522
-
0%
4,049
-
5%
10%
300
(15)
100%
104,634
(104,634)
-
-
387,505
(104,649)
0%
255,975
-
0%
26,221
-
5%
12,977
(714)
10%
26,488
(2,649)
100%
134,174
(134,174)
455,835
(137,537)
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
26.
Financial risk management (continued)
(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.
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.
Group
At 31 March 2021
Trade and other payables
Lease liabilities
At 31 March 2020
Trade and other payables
Finance lease liabilities
Company
At 31 March 2021
Trade and other payables
At 31 March 2020
Trade and other payables
(d) Capital risk
One year or
less
S$
Two to five
years
S$
3,446,851
816,163
1,648,235
1,176,581
-
67,686
-
68,630
One year or
less
S$
240,946
90,811
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 no externally imposed capital requirements.
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.
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Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
26.
Financial risk management (continued)
(e) Fair value measurements
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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).
Group
As at 31 March 2021
Financial assets:
Financial assets, at FVPL (quoted)
Financial assets, at FVOCI (quoted)
As at 31 March 2020
Financial assets:
Financial assets, at FVPL (quoted)
Financial assets, at FVOCI (quoted)
Level 1
S$
Level 2
S$
Level 3
S$
3,600,947
7,421
-
-
402,305
7,443
-
-
-
-
-
-
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 carrying amount less impairment provision of trade receivables and payables are assumed to
approximate their fair values.
(f) Financial instruments by category
Group
2021
S$
2020
S$
Company
2021
S$
2020
S$
Financial assets, at FVPL
Financial assets, at FVOCI
Financial assets at amortised cost
Financial liabilities at amortised cost
3,600,947
7,421
20,222,772
(4,188,565)
402,305
7,443
9,017,777
(2,686,411)
-
-
1,577,360
(240,946)
-
-
876,272
(90,811)
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Annual Report FY2021
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
27.
Segment information
For management purposes, the Group is organised into geographical business units based on the
management reporting structure and organisational set-up, in line with the main business divisions
driving the growth of the Group. Geographically, management manages and monitors the business in
two primary geographic areas namely Singapore and Malaysia, where the Company and certain
subsidiaries operate. Based on the management reporting structure, management reviews the business
segments’ performance and to make strategic decisions.
The segment under the reporting model are as follows:
i.
ii.
Financial Education: involved in providing financial education in the discipline of value investing
and supporting a community of value investors from 29 cities globally under the “VI” brand.
Others: included fintech business and subsidiaries that provided financial education and training
in Taiwan and China.
Management monitors the operating results of its business units separately for the purpose of making
decisions about resource allocation and performance assessment. Segment performance is evaluated
based on operating profit or loss which in certain respects, as explained in the table below, is measured
differently from operating profit or loss in the consolidated financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
27.
Segment information (continued)
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
31 March 2021
Revenue
Total revenue
Inter-segment
Revenue from external customers
Results:
Depreciation and amortisation
Segment profit/(loss)
Assets:
Additions to property, plant and equipment
Additions to intangible assets
Segment asset
Liabilities:
Segment liabilities
Singapore
S$
Financial Education
Malaysia
S$
Total
S$
Others
Corporate
Total
S$
S$
S$
11,050,339
(602,575)
10,447,764
10,562,204
(256,334)
10,305,870
21,612,543
(858,909)
20,753,634
5,637,511
(430,484)
5,207,027
1,915,962
(1,915,962)
-
29,166,016
(3,205,355)
25,960,661
1,173,908
4,053,768
292,520
1,561,815
1,466,428
5,615,583
478,003
970,386
-
(90,364)
1,944,431
6,495,605
1,175,955
-
13,127,341
111,140
-
6,122,986
1,287,095
-
19,250,327
256,591
673,096
5,833,358
-
-
1,873,826
1,543,686
673,096
26,957,511
(5,460,385)
(4,284,622)
(9,745,007)
(4,683,411)
(240,946)
(14,669,364)
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
27.
Segment information (continued)
31 March 2020
Revenue
Total revenue
Inter-segment
Revenue from external customers
Results:
Depreciation and amortisation
Share of result of associated companies
Segment profit/(loss)
Assets:
Additions to plant and equipment
Additions to intangible assets
Segment asset
Liabilities:
Segment liabilities
Singapore
S$
Financial Education
Malaysia
S$
Total
S$
Others
Corporate
Total
S$
S$
S$
7,274,355
(389,704)
6,884,651
3,285,799
(69,816)
3,215,983
10,560,154
(459,520)
10,100,634
758,717
-
758,717
216,000
(216,000)
-
11,534,871
(675,520)
10,859,351
(1,209,919)
(135,939)
1,827,584
(286,248)
-
244,412
(1,496,167)
(135,939)
2,071,996
(296,601)
-
(861,872)
-
-
(430,703)
(1,792,768)
(135,939)
779,421
25,797
-
7,013,434
67,814
-
1,924,349
93,611
-
8,937,783
75,204
197,364
1,877,826
-
-
1,160,458
168,815
197,364
11,976,067
(3,577,254)
(1,617,795)
(5,195,049)
(1,530,596)
(103,054)
(6,828,699)
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NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2021
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 2021
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 2023)
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 waver or a breach of covenant). The amendments also clarify what FRS 1 means
when it refers to the ‘settlement’ of a liability. The amendments could affect the classification of liabilities,
particularly for entities that previously considered management’s intentions to determine classification
and for some liabilities that can be converted into equity. The Group does not expect any significant
impact arising from applying these amendments.
Amendments to FRS 16 Property, Plant and Equipment: Proceeds before Intended Use (effective for
annual periods beginning on or after 1 January 2022)
The amendment to FRS 16 Property, Plant and Equipment (PP&E) prohibits an entity from deducting from
the cost of an item of PP&E any proceeds received from selling items produced while the entity is
preparing the asset for its intended use. It also clarifies that an entity is ‘testing whether the asset is
functioning properly’ when it assesses the technical and physical performance of the asset. The financial
performance of the asset is not relevant to this assessment.
Entities must disclose separately the amounts of proceeds and costs relating to items produced that are
not an output of the entity’s ordinary activities. The Group does not expect any significant impact arising
from applying these amendments.
29.
Authorisation of financial statements for issue
The financial statements for the financial year ended 31 March 2021 were authorised for issue by the
Board of Directors on the date of the Directors' Statement.
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Annual Report FY2021
ADDITIONAL INFORMATION
Shareholders Information as at 17 June 2021
8VI Holdings Limited – Ordinary Shares
The Company has ordinary shares on issue. These are listed on the Australian Securities Exchange under ASX
code: 8VI. 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)
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 – and over
Number of
holders
Number of
shares
% of issued
capital
741
370
32
47
14
1,204
327,767
794,892
247,020
1,389,526
39,615,221
42,374,426
0.77%
1.88%
0.58%
3.28%
93.49%
100.00%
The number of investors holding less than a marketable parcel of 100 8VI shares (based on a share price of
A$5.33) was 25. They hold 760 8VI shares in total.
Twenty Largest Shareholders and CDI Holders*
Registered Holder
1. 8I Holdings Limited
2. HSBC Custody Nominees (Australia) Limited
3. BNP Paribas Nominees Pty Ltd
4. Chee Kuan Tat, Ken
5. Citicorp Nominees Pty Limited
6. Pauline Teo Puay Lin
7. Low Ming Li
8. Clive Tan Che Koon
9. Wong Wai Chuan
10. Chua Chun Woei
11. Yeow Hin Lai
12. Bernard Siah Wee Boon
13. Goh Siew Bee
14. Low Chern Hong
15. Jeff Li Mingyuan
16. Yeo Yue Ru
17. Huang Shih Hao
18. Chai Lin Lin
19. Ho Tuck Chee
20. Cherie Lim
ALL OTHER SHAREHOLDERS
Total
Number of
Shares
% of issued
capital
33,375,566
1,176,370
1,142,151
800,000
545,015
484,943
452,933
400,000
289,887
275,111
268,245
175,000
128,800
101,200
76,500
68,000
61,300
60,000
57,500
49,389
2,386,516
42,374,426
78.76%
2.78%
2.70%
1.89%
1.29%
1.14%
1.07%
0.94%
0.68%
0.65%
0.63%
0.41%
0.30%
0.24%
0.18%
0.16%
0.14%
0.14%
0.14%
0.12%
5.64%
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.
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101
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
ADDITIONAL INFORMATION
Shareholders Information as at 17 June 2021
Substantial Shareholders and CDI Holders**
Name
Direct Interest
Shares
% of voting
power
Deemed
Interest Shares
% of voting
power
8I Holdings Limited and its subsidiaries
33,375,566
78.76%
-
-
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.
Current On-Market Buy-Back (ASX Listing Rule 4.10.18)
There is a current on-market buy-back arrangement for the Company as announced on 28 July 2020.
Corporate Governance Statement
The directors of 8VI Holdings Limited support and adhere to the principles of corporate governance, recognising
the need for the highest standard of corporate behaviour and accountability. Please refer to the corporate
governance statement and the appendix 4G released to ASX and posted on the Company website at
www.8viholdings.com.
The directors are focused on fulfilling their responsibilities individually, and as a Board, for the benefit of all the
Company’s stakeholders. That involves recognition of, and a need to adopt, principles of good corporate
governance. The Board supports the guidelines on the “Principles of Good Corporate Governance and
Recommendations – 3rd Edition” established by the ASX Corporate Governance Council.
Given the size and structure of the Company, the nature of its business activities, the stage of its development
and the cost of strict and detailed compliance with all of the recommendations, it has adopted a range of
modified systems, procedures and practices which enables it to meet the principles of good corporate
governance.
The Company’s practices are mainly consistent with those of guidelines and where do not correlate with the
recommendations in the guidelines the Company considers that its adopted practices are appropriate to it.
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102
8VI Holdings Limited and its Subsidiaries
Annual Report FY2021
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8VI Holdings Limited
(Incorporated in the Republic of Singapore)
Company Registration Number: 201505599H
ARBN 605 944 198
www.8viholdings.com
Singapore
Goldbell Towers, 47 Scotts Road, #03-03/04, Singapore 228233
T: +65 6225 8480
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