l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Quantum Health Group Limited
ABN 19 003 677 245
Annual Report
2020
Quantum Health Group Limited
CONTENTS
Directors’ Report
Auditor’s Independence Declaration
Independent Auditor’s Report
Directors’ Declaration
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Securities Exchange Information
1
8
9
14
15
16
17
18
19
56
The Company’s Corporate Governance Statement can be found on the company’s website
www.qhealthcare.com.au/cg
This financial report was authorised for issue by the Board of Directors on 12 October 2020. The Company has the power to
amend and re-issue the financial report.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Quantum Health Group Limited
DIRECTORS’ REPORT
The Directors present their report together with the consolidated financial report of Quantum Health Group Limited (“the
Company”) and its controlled entities (together referred to as “the Group” or “Quantum”) for the financial year ended 30 June
2020.
Directors
The Directors of the Company at any time during or since the end of the financial year are:
• Mr Drew Townsend, Chairman
• Mr John Walstab, Managing Director
• Mr Alan McCarthy, Non-executive Director
Directors have been in office since the start of the financial year to the date of this report, unless otherwise stated. The
particulars of the qualifications, experience and independence status of each Director as at the date of this report are set out
below in this report. Mr Walstab has also been the Company Secretary since the start of the financial year to the date of this
report.
Principal Activities
The principal activities of the Group during the financial year continue to be:
Distribution and service of state-of-the-art medical products in the field of radiology, oncology, aesthetics and environmental
health throughout Asia.
There were no significant changes in the nature of the Group’s principal activities during the financial year.
Operating results
The net profit from continuing operations of the Group attributable to owners of the Group after providing for income tax
amounted to $5,446,000 (2019: $1,905,000).
The total comprehensive income of the Group attributable to owners of the Group for the year is $5,805,000 (2019: $2,226,000).
Review of Operations
The introduction of the new accounting standard AASB 16 Leases has added $1,416,000 in Right-of-Use Assets to our Balance
Sheet. Offsetting this are similar values recorded as Lease Liabilities. Please note, the EBIT Margin and other profitability and
performance measures in this report are reported post AASB 16. The impact of AASB 16 and pre and post AASB 16 comparisons
for common profitability and performance measures are detailed below.
Directors are pleased to advise that Quantum has delivered a trading result consistent with our expectations for the year ended
30 June 2020, as follows:
Revenue
EBITDA
Restructure and Impairment costs
Normalised EBITDA
Reconciliation of EBITDA:
Profit/(loss) before tax
Interest expenses
Interest income
Depreciation
EBITDA
FY2020
post AASB16
$ 000
59,398
9,334
-
9,334
FY2020
post AASB16
$ 000
7,235
757
(210)
1,552
9,334
FY 2020
pre AASB16
$ 000
59,398
8,629
-
8,629
FY 2020
pre AASB16
$ 000
7,235
736
(210)
868
8,629
2019
$ 000
59,429
4,017
1,185
5,202
FY 2019
$ 000
2,610
1,092
(313)
628
4,017
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Page 1
DIRECTORS’ REPORT (CONTINUED)
Quantum Health Group Limited
Quantum’s trading results have improved in all regions. Quantum has made further investments in its international healthcare
operations building on our foundation for further expansion into the Asia Pacific healthcare market by the acquisition of
Carestream Health Service business in Australia and New Zealand in October 2019 and Carestream Health Philippines Service
Business in January 2020. Quantum will continue to build its healthcare technology platform across Asia to provide leading-
class distribution model for global healthcare manufactures.
Financial position
The net assets of the consolidated Group have increased to $40,928,000 as at 30 June 2020 (2019: $34,094,000). The
Directors believe that the Group is in a strong and stable financial position to expand and grow its current operations.
Significant changes and state of affairs
Other than those events detailed above, there were no significant changes in the state of affairs of the Group during the year.
COVID-19 Impact
Despite initially experiencing adverse business results from the effects of COVID-19 restrictions and the subsequent downturn
in market purchasing activities between February and April 2020, Quantum Healthcare's prompt implementation of
operational measures in our working environments maintained its global workforce (other than in the Philippines where
tighter government workplace controls were in place). These measures together with government stimulus assistance in
Australia successfully aided the business back to pre-COVID 19 results in most segments of the business. Quantum Healthcare
experienced improved performance in the Radiology sector in May and June with sales of Carestream and Micro-X Digital
Radiography systems comprising part of the government's Covid-19 medical equipment purchase.
Quantum Healthcare will continue to follow the respective government guidelines to ensure full compliance and implement
initiatives to seek new growth during these changing market conditions. We don’t expect COVID-19 to materially
impact our business performance in the coming year but continue to monitor conditions, restrictions and opportunities across
all regions.
Events subsequent to balance date
The impact of the COVID-19 pandemic was evident during the year ended 30 June 2020 and is ongoing. The Directors and
management are continually monitoring and managing the Group's operations closely in response to COVID-19. The Group
continues to achieve budgeted results up to 31 August 2020 and management believes it will continue to do so even though
the extent of the impact COVID-19 may have on the Group's future liquidity, financial performance and position and
operations is uncertain and cannot be reasonably estimated at the date these financial statements were issued.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect:
(a)
(b)
(c)
the Group’s operations in future financial years;
the results of those operations in future financial years;
the Group’s state of affairs in future financial years.
Future developments, prospects and business strategies
The Group is unaware of any factors which are likely to affect results in the future other than those mentioned in the Review
of Operations.
Dividends paid or recommended
No dividends were paid or declared for payment during the financial year or since the end of the financial year.
Environmental Regulation
The Group’s operations are not significantly affected by environmental regulations.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Page 2
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Quantum Health Group Limited
DIRECTORS’ REPORT (CONTINUED)
Information on the Directors
Drew Townsend
Qualifications
— Chairman and Non-Executive Director
— Bachelor of Commerce, Member of Institute of Company Directors and Member of
Chartered Accountants Australia and New Zealand.
Experience
— Appointed Chairman 2003. Board member since 2003. Over 30 years’ experience in
Australian and international accounting and finance.
Interest in Shares and Options
— 329,312,458 ordinary shares in Quantum Health Group Limited.
John Walstab
Experience
— Managing Director and Company Secretary
— Board member since 2003. Wide range of experience for more than 35 years in
Healthcare technology organisations and developing overseas markets.
Interest in Shares and Options
— 514,712,393 ordinary shares in Quantum Health Group Limited.
Alan McCarthy
Qualifications
Experience
— Non-Executive Director
— B Bus (Accounting), M Com in Marketing and Organisational Behaviour, CPA
— Mr McCarthy’s experience spans public health and private health services across
Australia, New Zealand and Asia Pacific over more than 28 years, including:
•
Co-Founder at Alpenglow Australia and SRG NZ, both diagnostic imaging
businesses
Vice-President Asia-Pacific at CareFusion
• Managing Director of Philips ANZ
•
•
•
Country Manager ANZ at Cardinal Health
General Manager of Diagnostic Imaging at Mayne Health/Health Care of
Australia
Interest in Shares and Options
— Nil.
None of the directors hold, or have held, a position as Director of another listed Company at any time in the 3 years prior to
30 June 2020.
Meetings of Directors
During the financial year, 6 meetings of directors and no meeting of committees of directors were held as all matters that
might have been addressed by the committee of directors were discussed by Board of Directors. Attendances by each director
during the year were as follows:
Board of Directors
Number
eligible to
Attend
6
6
6
Attended
6
6
6
Mr D.A. Townsend
Mr J. Walstab
Mr A. McCarthy
Page 3
Quantum Health Group Limited
DIRECTORS’ REPORT (CONTINUED)
Indemnifying Officers or Auditors
During the financial year the Company paid a premium in respect of a contract insuring the directors of the Company against
any liability incurred as such by a director or secretary to the extent permitted by the Corporations Act 2001. The contract of
insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The Company has, during the financial year, agreed to indemnify officers of the Group or any related body against a liability
incurred by such an officer.
No indemnity has been granted to the auditors of the Group.
Options
At the date of this report, there are no unissued ordinary shares of Quantum Health Group Limited under options. During the
year ended 30 June 2020, no ordinary shares of Quantum Health Group Limited were issued on the exercise of options. No
options have been granted since year end.
Proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to
which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those
proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit Services
There were no non-audit services provided during the year to the Group by HLB Mann Judd (NSW Partnership) or any related
practices or related audit firms.
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2020 has been received and a copy can be viewed on
page 8 of the Annual Report.
Rounding of Amounts
The Company is an entity of the kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191 issued by the Australian Securities and Investments Commission (“ASIC”) relating to the “rounding off” of amounts
in the directors' report and financial report. Amounts in the directors' report and financial report have been rounded off in
accordance with that ASIC Instrument to the nearest thousand dollars, unless otherwise indicated.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Page 4
Quantum Health Group Limited
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (Audited)
This report outlines the remuneration arrangements in place for each director of Quantum Health Group Limited and other
key management personnel.
(1) Remuneration philosophy
The performance of Quantum Health Group Limited depends upon the quality of its directors and executives. To prosper, the
Company must attract, motivate and retain highly skilled directors and executives.
To this end, Quantum Health Group Limited embodies the following principles in its remuneration framework:
•
•
•
provide competitive rewards to attract high calibre executives;
link executive rewards to shareholder value;
establish appropriate, demanding performance hurdles in relation to variable executive remuneration.
While Quantum Health Group Limited does not have a remuneration committee, the Board of directors is responsible for
determining and reviewing compensation arrangements for the directors, and the senior management team.
Remuneration structure
In accordance with best practice corporate governance, the structure of non-executive director and senior management
remuneration is separate and distinct.
Non-executive director remuneration
As all directors of the Company are stakeholders (with the exception of Alan McCarthy), directors’ remuneration is not as
important as is generally the case.
The non-executive directors did not receive remuneration during the current or prior year. Fees charged by Hall Chadwick
Chartered Accountants of which Drew Townsend is a Partner for accounting services totalled $3,261 during the year (2019:
$31,580).
Senior executives and executive director remuneration
Objective
Quantum Health Group Limited aims to reward executives with a level and mix of remuneration which is commensurate with
their position, their responsibilities within the Group, their length of service and the overall performance of the Group, and so
as to:
•
•
•
•
reward executives for Group and individual performance against targets set by reference to appropriate benchmarks;
align the interests of executives with those of shareholders;
link rewards with the strategic goals and performance of the Group; and
ensure that total remuneration is competitive by market standards.
Structure
Details of contracts with Directors and senior executives are shown below.
Remuneration for senior managers and the executive director consist of the following key elements:
•
•
fixed remuneration;
variable remuneration, being short and long term incentives.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Page 5
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Quantum Health Group Limited
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (Audited) (CONTINUED)
Fixed Remuneration
Fixed remuneration is reviewed regularly. Senior managers are given the opportunity to receive their fixed (primary)
remuneration in a variety of forms including cash and fringe benefits such as motor vehicle leases. The fixed remuneration
component for directors and key management personnel is detailed below.
Variable Remuneration
The objectives of the short and long term incentive plans are:
•
to link the achievement of the Group’s operational targets with the remuneration received by the executives charged with
meeting those targets; and
to reward directors and senior executives in a manner which aligns this element of remuneration with the creation of
shareholder wealth.
•
Incentives
•
Short term incentives are delivered in the form of cash bonus rewards, being incentive payments based on key
performance indicators such as sales targets.
Company performance, shareholder wealth and director and executive remuneration
The following table shows the performance of the Consolidated Group during the past five financial years:
Fiscal Year
Revenue from
continuing operations
$ 000
NPAT/(NLAT)
$ 000
Basic EPS
Cents
Share price at
balance date
Cents
Total Equity
$ 000
2016
2017
2018
2019
2020
58,797
58,676
66,993
59,429
59,398
(642)
(1,709)
3,127
1,905
5,446
(0.06)
(0.17)
0.30
0.17
0.49
0.025
0.018
0.016
0.026
0.038
26,254
25,507
30,539
34,094
40,928
NTA per
share
$
0.0030
0.0251
0.0072
0.0099
0.0134
No dividends have been paid by the Company during the past 5 years.
(2) Employment contracts for director and senior executives
The employment conditions of the Managing Director, Mr. John Walstab, and other specified executives are formalised in
contracts of employment. All executives are permanent employees of Quantum Health Group Limited or its controlled entities.
Under the terms of the present employment contracts, which have no fixed term, the executives may resign from their positions
and thus terminate their contracts by giving one month’s written notice. The Company may terminate these employment
agreements by providing one to three month’s written notice or by payment in lieu of the notice period based on the executive’s
fixed component of remuneration. There are no other termination payments included in the contracts. Termination payments
are generally not payable on resignation or dismissal for serious misconduct. In the instance of serious misconduct, the
Company can terminate employment at any time.
Mr. Youngchun Kim (senior executive) is entitled to an annual bonus based on the performance of Quantum Healthcare Korea
Co. Ltd, Quantum Hunex Korea Co. Ltd, Quantum Healthcare Thailand Co. Ltd, Quantum Holdings Korea Co. Ltd and Quantum
Healthcare Australia Pty Ltd. This bonus is based upon a percentage of accumulated profit after tax of the companies listed
above.
(3) Remuneration of Key Management Personnel and Other Executives
The key management personnel of the Group and the specified executives of the Company and the Group are the directors of
the Company and the executives as set out in the table below.
Page 6
Quantum Health Group Limited
DIRECTORS’ REPORT (CONTINUED)
REMUNERATION REPORT (Audited) (CONTINUED)
Short-Term Benefits
Salary/Fees
and
Commission
Bonus
Termination
Post
Employment
Benefits
Superannuation
Long-term
benefits
Long service
leave
Total
$
$
$
$
$
$
Executive Directors
J. Walstab
Total Executive
Directors
Total Executive
Directors
Key Executives
Y. Kim
Total Key Executives
Total Key Executives
Grand Total
Grand Total
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
277,119
275,026
277,119
275,026
306,748
299,514
306,748
299,514
583,867
574,540
-
-
-
-
283,486
372,559
283,486
372,559
283,486
372,559
-
-
-
-
-
-
-
-
-
-
26,747
26,573
4,428
4,687
308,294
306,286
26,747
4,428
308,294
26,573
4,687
306,286
29,558
45,722
29,558
45,722
56,305
72,295
4,388
6,180
4,388
6,180
8,816
624,180
723,975
624,180
723,975
932,474
10,867
1,030,261
The positions held by key management personnel are disclosed in Note 5 to the financial statements.
Relative proportion of remuneration linked to performance
Y. Kim
J. Walstab
2020
45%
0%
2019
51%
0%
(4) Changes in Directors and Executives Subsequent to Year End
There has been no change in directors or executives subsequent to year end.
(5) Options and Rights Granted and Exercised
During the financial year ended 30 June 2020 there were no options/rights issued or exercised.
This Directors’ Report, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of
Directors.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
John Walstab
Director
12 October 2020
Page 7
Auditor’s Independence Declaration to the directors of Quantum Health Group Limited:
As lead auditor for the audit of the consolidated financial report of Quantum Health Group Limited for the
year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been no
contraventions of:
(a)
the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit;
and
(b)
any applicable code of professional conduct in relation to the audit.
This declaration is in relation to Quantum Health Group Limited and the entities it controlled during the
period.
Sydney, NSW
12 October 2020
M D Muller
Partner
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Page 8
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
Independent Auditor’s Report to the Members of Quantum Health Group Limited
REPORT ON THE AUDIT OF THE FINANCIAL REPORT
Opinion
We have audited the financial report of Quantum Health Group Limited (“the Company”) and its controlled
entities (collectively “the Group”), which comprises the consolidated statement of financial position as at 30
June 2020 the consolidated statement of profit or loss and other comprehensive income, the consolidated
statement of changes in equity and the consolidated statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies, and the directors’
declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
(a)
giving a true and fair view of the Group’s financial position as at 30 June 2020 and of its financial
performance for the year then ended; and
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (“the Code”) that are relevant to
our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Emphasis of Matter – Current and Possible Effects and Uncertainties of COVID-19
We draw attention to Note 34 of the financial report, which describes the current and possible effects and
uncertainties on the Group arising from the on-going issues associated with COVID-19. Our opinion is not
modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
r
o
F
Page 9
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
How our audit addressed the key audit matter
• We assessed the Group’s determination and
application of Australian Accounting Standards to
the acquisition transactions;
• We assessed the reasonableness of the adopted
acquisition date and the fair value of purchase
consideration by agreeing to the relevant
purchase deeds and supporting documents;
• We performed audit procedures to evaluate the
reasonableness of the fair value of the acquisition
date assets acquired and liabilities assumed;
• We assessed the adequacy of the Group’s
disclosures in the financial statements.
Key Audit Matter
Business combination
Note 17
As described in Note 17 “Business
combination”, On 1 November 2019, the Group
acquired Carestream’s medical imaging Service
Businesses in Australia and New Zealand for
the total consideration of $2,088k. The fair value
of identifiable net assets at purchase date was
$546k. The acquisition resulted in recognition of
goodwill of $1,542k.
On 1 January 2020, the Group acquired 100%
of the shares of Carestream Health Philippines
Inc for a total consideration of $2,468k. The fair
value of identifiable net assets at purchase date
was $2,598k. The acquisition resulted in
recognition of a bargain purchase of $130k.
The accounting for the business combination
has been recorded on a provisional basis in the
consolidated financial statements.
The acquisition accounting is considered a key
audit matter due to the level of judgment
included in accounting for business
combinations, the valuation of the assets and
liabilities acquired as well as the significance of
the business combination to the Group’s
financial position.
Impairment of Goodwill
Note 18
The Group recognised Goodwill of $21,525k at
30 June 2020. This Goodwill arose on
acquisition of subsidiary companies in prior
years and during the year.
As required by Australian Accounting Standards
the Group tested this Goodwill for impairment, at
30 June 2020.
The Group determined the recoverable amount
using value in use calculations for the relevant
cash generating units (“CGU”), which involved a
significant level of judgement in respect of
factors such as:
• Estimated future revenue and costs;
• Discount rates; and
• Terminal values.
• We evaluated the Group’s goodwill impairment
assessment process;
• We obtained the Group’s value in use models and
considered the assumptions applied by
management;
• We assessed the accuracy of previous Group
forecasts to inform our evaluation of forecasts
included in the value in use model. We applied
increased scepticism to current period forecasts
in areas where previous forecasts were not
achieved and /or where future uncertainty is
greater or volatility is expected;
• We challenged discount and terminal value
multiples by comparing these with rates used by
comparable companies.
• We compared forecast revenues and costs to
historical results;
We considered this to be a key audit matter due
to the significant judgement involved in
estimating the recoverable amount of the
Goodwill and the potentially material impact on
the financial report.
• We tested the mathematical accuracy of the
impairment models used by management;
• We performed sensitivity analysis on all CGUs in
relation to the discount rate and terminal value
multiple assumptions, and profit forecasts;
We assessed the adequacy of the Group’s
disclosures in the financial statements.
Page 10
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Key Audit Matter
How our audit addressed the key audit matter
Inventory Obsolescence
Note 10
The Group holds inventories recognised at 30
June 2020 at a value of $10,246k. A provision
for obsolescence of $782k was recognised at 30
June 2020.
• We reviewed management’s processes for
identifying inventory that might not be sold at or
above carrying value;
• We agreed a sample of inventory items to sales
We consider this to be a key audit matter due to
the significant judgement involved in estimating
the realisable value of inventories.
invoices before and after balance date;
• We considered the time period that inventories
had been held, and the prospects of their sale.
Using the Work of Component Auditors
The Group has operations in Thailand, Korea
and Philippines. The Group has appointed audit
firms in each of those locations to conduct work
on the components in those areas.
We considered this to be a key audit matter due
to the significance of each component to the
Group.
We performed the following procedures, as well as
other procedures:
• We obtained an understanding of the Group, its
components and their environments to identify
significant components.
• We obtained in relation to each component
auditor, an understanding:
o
that the component auditor understands and
would comply with ethical requirements
o of the component auditor’s’ professional
competence
o whether the component auditor operates in a
regulatory environment that actively oversees
auditors.
• We communicated our requirements with
component auditors, including being involved in
the component auditors’ risk assessment, and
ensuring that the component materiality used by
each component auditor was appropriate.
• We performed an audit of the financial information
of the component, by reviewing the work
performed by each component auditor and
discussing with the component auditors and
component management the work that they had
performed, during a visit to each overseas
operation of the Group.
• Where necessary, we determined what additional
procedures were to be performed by the
component auditor and by the Group
engagement team.
• We evaluated whether sufficient appropriate audit
evidence had been obtained from these audit
procedures, on which to base the Group audit
opinion.
Information Other than the Financial Report and Auditor’s Report Thereon
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2020 but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
Page 11
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that
gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations,
or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is 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 Australian Auditing Standards 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 this
financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
•
•
•
•
•
•
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ 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 report 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 report, including the
disclosures, and whether the financial report represents 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 financial report. 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.
Page 12
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 report 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 THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 5 to 7 of the directors’ report for the year
ended 30 June 2020.
In our opinion, the Remuneration Report of Quantum Health Group Limited for the year ended 30 June 2020
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
HLB Mann Judd
Chartered Accountants
Sydney, NSW
12 October 2020
M D Muller
Partner
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Page 13
Quantum Health Group Limited
DIRECTORS’ DECLARATION
1.
In the directors’ opinion:
l
y
n
o
(a)
the financial statements and notes set out on pages 15 to 55 are in accordance with the Corporations Act 2001,
including:
(i)
complying with Australian Accounting Standards and the Corporations Regulations 2001 and other
mandatory professional reporting requirements; and
(ii)
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2020 and of its
performance for the financial year ended on that date; and
(b)
there are reasonable grounds to believe that the company will be able to pay its debts as and when they become
due and payable.
The notes to the financial statements include a statement of compliance with International Financial Reporting
Standards.
The directors have been given the declarations by the chief executive officer and chief financial officer for the year
ended 30 June 2020 required by section 295A of the Corporations Act 2001.
2.
e
s
u
3.
This declaration is made in accordance with a resolution of the directors.
l
a
n
o
s
r
e
p
John Walstab
Director
12 October 2020
r
o
F
Page 14
Quantum Health Group Limited
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020
Note
2020
$ 000
2019
$ 000
Continuing operations
Revenue from contracts with customers
Other revenue
Cost of sales
Employee benefits expense
Depreciation and amortisation expense
Advertising and promotion expenses
Finance costs
Legal fees
Research and development expenditure
Travel expenses
Motor vehicle expenses
Warranty expenses
Telephones & internet
Consultants
Freight & delivery expenses
Occupancy (rent) expenses
Insurance
Foreign exchange gain (loss)
Fair value gain/(loss) on financial assets
Other expenses
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
Profit from continuing operations before income tax
Income tax (expense) credit
Net profit after tax
Other comprehensive income
Items that may be reclassified to profit or loss:
Translation of foreign subsidiaries gain
Items that will not be reclassified to profit or loss:
Actuarial gain on post-employment benefit obligations
Total comprehensive income for the year
Profit for the year is attributable to:
Non-controlling interests
Owners of Quantum Health Group Limited
r
o
F
Total comprehensive income for the year is attributable to:
Non-controlling interests
Owners of Quantum Health Group Limited
2
2
3
3
3
4
58,309
1,089
(31,032)
(11,337)
(1,553)
(847)
(757)
(138)
(77)
(1,052)
(645)
(559)
(230)
(645)
(327)
(221)
(302)
(222)
67
(2,286)
7,235
(816)
6,419
259
155
6,833
973
5,446
6,419
1,028
5,805
6,833
57,955
1,474
(34,990)
(11,171)
(628)
(704)
(1,092)
(75)
(145)
(1,034)
(395)
(487)
(103)
(725)
(144)
(912)
(292)
45
(22)
(3,945)
2,610
197
2,807
719
29
3,555
902
1,905
2,807
1,329
2,226
3,555
0.17
0.17
Earnings per share for profit from continuing operations attributable to the
ordinary equity holders of Quantum Health Group Limited
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
7
7
0.49
0.48
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes to the financial statements.
Page 15
Quantum Health Group Limited
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
l
y
n
o
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Financial assets
Other
TOTAL CURRENT ASSSETS
NON-CURRENT ASSETS
Property, plant and equipment
Right-of-use-assets
Investment property
Deferred tax assets
Goodwill and Intangible Assets
Financial assets
Other
TOTAL NON-CURRENT ASSSETS
TOTAL ASSETS
CURRENT LIABLITIES
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Current tax liabilities
Short term provisions
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Trade and other payables
Contract liabilities
Borrowings
Lease liabilities
Employee benefits
Defined benefit plans
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
e
s
u
l
a
n
o
s
r
e
p
r
o
F
EQUITY
Issued Capital
Reserves
Retained Earnings (accumulated losses)
Equity attributable to owners of Quantum Health Group Limited
Non-controlling interests
TOTAL EQUITY
Consolidated Group
30/06/2020
$ 000
30/06/2019
$ 000
Note
8
9
10
11
19
13
14
15
16
18
11
19
20
21
22
26
23
20
21
22
26
23
24
25
27
8,765
14,963
9,464
1,043
3,870
38,105
1,700
1,414
2,444
3,137
22,719
2,628
1,906
35,948
74,053
11,401
6,840
8,888
929
443
2,249
30,750
880
237
4
476
443
335
2,375
33,125
40,928
4,327
10,646
9,147
661
3,708
28,489
1,570
-
2,444
3,212
19,983
5,093
570
32,872
61,361
7,734
3,054
12,412
-
403
1,704
25,307
-
178
641
-
185
956
1,960
27,267
34,094
86,429
2,268
(52,840)
35,857
5,071
40,928
86,429
1,908
(58,286)
30,051
4,043
34,094
The above consolidated statement of financial position should be read in conjunction with the accompanying notes to the financial
statements.
Page 16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
Quantum Health Group Limited
Ordinary
Share
Capital
Shares to be
issued
Attributable to owners of Quantum Health Group limited
Undistributable
Profits Reserve
Other
Reserves
Exchange
Translation
Reserve
Actuarial
Gain
Reserve
Total
Retained
Profits
(Losses)
Attributable
to non-
controlling
interests
Total
$ 000
$ 000
$ 000
$ 000
$ 000
$ 000
$ 000
$ 000
$ 000
$ 000
85,229
1,200
504
-
-
480
85,709
PY
85,709
-
-
720
86,429
-
-
(480)
720
720
-
-
(720)
-
-
-
-
504
PY
504
-
-
-
504
1,077
-
298
-
1,375
PY
1,375
-
211
-
1,586
6
-
23
-
29
PY
29
-
149
-
178
-
-
-
-
-
-
-
-
-
-
(60,191)
1,905
27,825
1,905
-
-
321
-
(58,286)
30,051
PY
(58,286)
5,446
-
-
PY
30,051
5,446
360
-
2,714
902
427
-
4,043
PY
4,043
973
55
-
30,539
2,807
748
-
34,094
PY
34,094
6,419
415
-
(52,840)
35,857
5,071
40,928
Consolidated
Balance at 1 July 2018
Profit for the year
Other comprehensive income
for the year
Shares Issued / to be issued
Balance at 30 June 2019
Balance at 1 July 2019
Profit for the year
Other comprehensive income
for the year
Shares Issued
Balance at 30 June 2020
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes to the financial statements.
Page 17
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Quantum Health Group Limited
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
l
y
n
o
e
s
u
a
n
o
s
r
e
p
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Interest paid lease liabilities
Income tax paid
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
Dividends received from unrelated entity
Payments for financial assets
Proceeds from sale of financial assets
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of Lease liabilities
Repayment of borrowings
Net cash used in financing activities
Net increase/(decrease) in cash held
Cash at beginning of period
Cash at end of period
Payments for acquisition of investment – QHC Thailand and QHC Korea
l
Payments for acquisition of investment – Carestream Health Australia Pty Ltd
Payments for acquisition of investment (net)– Carestream Health Philippines Inc
Notes
29
8
2020
$ 000
62,189
(52,580)
94
(234)
(21)
(321)
9,127
209
(879)
-
-
(1,208)
(462)
(1,324)
947
(2,717)
(784)
(1,188)
(1,972)
4,438
4,327
8,765
2019
$ 000
61,536
(58,591)
12
(427)
-
(1,293)
1,237
-
(489)
14
(1,603)
-
-
(978)
1,902
(1,154)
-
(1,180)
(1,180)
(1,097)
5,424
4,327
r
o
F
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes to the financial statements
Page 18
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
Quantum Health Group Limited
This financial report includes the consolidated financial statements of Quantum Health Group Limited (‘the Company’) and controlled
entities (collectively the ‘Group’ or ‘consolidated entity’).
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, Australian
Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (“AASB”) and the
Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing
relevant and reliable information about transactions, events and conditions.
The financial statements also comply with International Financial Reporting Standards.
Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied
unless otherwise stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the
measurement at fair value of selected non-current assets, financial assets and financial liabilities.
l
y
n
o
e
s
u
(a)
l
a
n
o
s
r
e
p
(b)
r
o
F
Principles of Consolidation
Subsidiaries
A controlled entity is an entity that is controlled by Quantum Health Group Limited. Quantum controls a company when it is
exposed, or has rights, to variable returns from its involvement with the company and has the ability to affect those returns
through its power over the company. The acquisition method of accounting is used to account for business combinations by
the Group (Note 1(t)).
A list of controlled entities is contained in Note 12 to the financial statements.
The assets and liabilities of all controlled entities have been incorporated into the consolidated financial statements as well as
their results for the year.
All balances and transactions between entities in the consolidated Group, including any unrealised profits or losses, have been
eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency
with those adopted by the parent entity.
Income Tax
The income tax expense (revenue) for the year comprises current income tax expense (credit) and deferred tax expense
(credit).
Current income tax expense (credit) charged to profit or loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantively enacted, as at the reporting date. Current tax liabilities (assets) are measured at
the amounts expected to be paid to (recovered from) the relevant taxation authority.
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as
well as unused tax losses.
Current and deferred income tax expense (credit) are charged or credited directly to equity instead of profit or loss when the
tax relates to items that are charged or credited directly to equity.
Deferred tax assets and liabilities are based on temporary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the financial statements, and unused tax losses. Deferred tax assets also result where amounts
have been expensed but future tax deductions are available. No deferred income tax is recognised from the initial recognition
of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Page 19
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b)
Income Tax (continued)
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
(c)
(d)
r
o
F
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates enacted or substantively enacted at the reporting date. Their
measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related
asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be
utilised.
Where temporary differences exist in relation to investments in subsidiaries, deferred tax assets and liabilities are not
recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the
reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and
liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income
taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended
that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods
in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
Tax Consolidation
Quantum Health Group Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated Group
under tax consolidation legislation. Each entity in the tax consolidated group recognises its own current and deferred tax
assets and liabilities. Such taxes are measured using the ‘stand-alone taxpayer’ approach to allocation. Deferred tax assets
arising from unused tax losses and tax credits in the subsidiaries are immediately assumed by the head entity. The Company
notified the Tax Office that it had formed an income tax consolidated group to apply from 1 July 2003. The tax consolidated
group has entered a tax sharing agreement whereby each company in the tax consolidated group contributes to the income
tax payable by the tax consolidated group in proportion to their contribution to the tax consolidated group’s taxable income.
Differences between the amounts of net tax assets and liabilities recognised pursuant to the tax sharing agreement are
recognised as either a contribution by, or distribution to, the head entity.
Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of manufactured products includes direct
materials, direct labour and an appropriate portion of variable and fixed overheads. Overheads are applied on the basis of
normal operating capacity.
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less accumulated depreciation and impairment losses.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. All other repairs and maintenance are charged to profit or loss during the financial period in which they are
incurred.
Depreciation
The depreciable amount of all plant and equipment including capitalised lease assets, is depreciated on a straight-line or
diminishing value basis over the asset’s useful life to the Group commencing from the time the asset is held ready for use.
Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful
lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Plant and equipment - General
- Office Equipment
- Motor Vehicles
Depreciation Rate
15% – 20%
33%
12.5% – 23%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.
Page 20
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d)
l
y
n
o
(e)
e
s
u
l
(f)
a
n
o
s
r
e
p
(g)
r
o
F
Property, Plant and Equipment (continued)
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount (Note 1(h)).
Gains and losses on disposal are determined by comparing proceeds with the carrying amount. These gains and losses are
included in profit or loss.
Right-of-use assets
A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which
comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the
commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the
cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and
restoring the site or asset.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life
of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the
end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms
of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.
Lease liabilities
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or,
if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed
payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected
to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably
certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a
rate are expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if
there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee;
lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is
made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written
down.
Financial Instruments
Classification
The Group classified its financial assets in the following measurement categories:
-
-
those to be measured subsequently at fair value through profit or loss (“FVPL”) and;
those to be measured at amortised cost.
The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the
cash flows.
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 the risks and rewards of ownership
Page 21
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g)
l
y
n
o
e
s
u
l
(h)
a
n
o
s
r
e
p
r
o
F
Financial Instruments (continued)
Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at FVPL,
transaction costs that are directly attributable to the acquisition of the financial asset.
The Group subsequently measures all debt investments that do not qualify for measurement at amortised cost and all equity
investments at fair value. Where the Group’s management has elected to present fair value gains and losses on debt and
equity investments in profit or loss, interest and dividends from such investments continue to be recognised in profit or loss
as other income when the Group’s right to receive payments is established.
Impairment losses (and reversal of impairment losses) on debt and equity investments measured at FVPL are not reported
separately from other changes in fair value.
Impairment
From 1 July 2017, the Group assesses on a forward looking basis the expected credit losses associated with its debt
instruments carried at amortised cost and FVPL and equity instruments carried at FVPL. The impairment methodology applied
depends on whether there has been a significant increase in credit risk since initial recognition. For trade receivables, the
Group applies the simplified approach permitted by AASB 9, which requires expected lifetime losses to be recognised from
initial recognition of the receivables.
Impairment of Assets
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are measured at amortised cost.
The measurement of the loss allowance depends upon the Group’s assessment at the end of each reporting period as to
whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and
supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant
increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This
represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within
the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has
increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected
credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over
the life of the instrument discounted at the original effective interest rate.
Impairment of non-financial assets other than Goodwill
At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. The
assessment will include considering both external and internal sources of information. If such an indication exists, an
impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s
fair value less costs of disposal and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount
over its recoverable amount is recognised immediately in profit or loss.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Page 22
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(i)
l
y
n
o
e
s
u
l
(j)
a
n
o
s
r
e
p
r
o
F
Intangibles
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair value at
the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life intangible
assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are
subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising
from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying
amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in
the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or
period.
Goodwill
Goodwill on consolidation is initially recorded at the amount by which the purchase price for a business combination exceeds
the net fair value of identifiable assets, liabilities and contingent liabilities at date of acquisition. Goodwill on acquisition of
subsidiaries is included in intangible assets. Goodwill is tested annually for impairment and carried at cost less accumulated
impairment losses. Any gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the
entity sold.
Customer Contracts
Customer contracts acquired in a business combination are amortised on a straight-line basis over the period of their
expected benefit, being their finite life of 10 years.
Foreign Currency Transactions and Balances
Functional and Presentation Currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment
in which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent
entity’s functional and presentation currency.
Transaction and Balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the dates of the
transactions. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items measured
at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at
fair value are reported at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in profit or loss.
Group Companies
The financial results and position of foreign operations whose functional currency is different from the Group’s presentation
currency are translated as follows:
—
—
—
assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the dates of the transactions.
Exchange differences arising on translation of foreign operations are recognised in other comprehensive income.
Page 23
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k)
l
y
n
o
e
s
u
(l)
l
(m)
a
n
o
s
r
e
p
(o)
(n)
r
o
F
(p)
Employee Benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to balance date.
Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid
when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those benefits.
Additionally, the Korean and Philippine entities operate defined benefit pension plans, which require contributions to be
made to a separately administered fund. Actuarial gains and losses for the defined benefit plan are recognised in full in the
period in which they occur in other comprehensive income. Such actuarial gains and losses are also immediately recognised in
retained earnings and are not reclassified to profit or loss in subsequent periods.
The defined benefit liability comprises the present value of the defined benefit obligation, less the fair value of plan assets out
of which the obligations are to be settled. Plan assets are assets that are held by a long-term employee benefit fund or
qualifying insurance policies. Plan assets are not available to the creditors of the Group, nor can they be paid directly to the
Group. Fair value is based on market price information, and, in the case of quoted securities, it is the published bid price.
Unvested past service costs are recognised as an expense on a straight line basis over the average period until the benefits
become vested. Past service costs are recognised immediately if the benefits have already vested following the introduction
of, or changes to, a pension plan.
Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Provision for Warranties
Provision is made in respect of the Group’s estimated liability on all products and services under warranty at balance date.
The provision is based on the Group’s history of claims to settle warranty obligations over the last two years, calculated as a
percentage of revenue, net of warranties provided to the Group by suppliers.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term, highly liquid investments
with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in
current liabilities in the consolidated statement of financial position.
Trade and other receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective
interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30
days for Australia and New Zealand entities, 30 to 60 days for Philippine and 60 to 90 days for Korea and Thailand . Other
receivables are recognised at amortised cost, less any allowance for expected credit losses. The group has applied the
simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. Trade and other
receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets.
Contract liabilities
Contract liabilities represent the Group’s obligation to transfer goods or services to a customer and are recognised when a
customer pays consideration, or when the consolidated entity recognises a receivable to reflect its unconditional right to
consideration, (whichever is earlier) before the consolidated entity has transferred the goods or services to the customer.
Page 24
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(q)
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
(r)
(s)
r
o
F
Revenue
The Group recognises revenue to depict the transfer of promised goods or services to customers at an amount that reflects
the consideration to which the Group expects to be entitled in exchange for those goods or services.
Sale of goods:
Revenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods, which is
generally at the time of delivery of equipment or when the acceptance form is signed. The Group considers that the point of
satisfaction of the performance obligation is the point of delivering goods or acceptance of equipment.
Service Maintenance Revenue:
Revenue from Service maintenance agreements is recognised over time as the services are rendered over the period of
service maintenance agreements.
Extended Warranty Revenue:
Equipment is often sold with an extended warranty, which is considered to be a separate performance obligation for the
purposes of recognising revenue. In this case, the Group determines the relative stand-alone selling price (price at which an
entity would sell this service separately) of the services underlying the performance obligation. Revenue from extended
warranty is recognised over time over the period of the extended warranty.
Interest:
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.
Other revenue:
Other revenue is recognised when it is received or when the right to receive payment is established.
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial
period of time to prepare for their intended use or sale are added to the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Goods and Services Tax (“GST”)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the tax authority. In these circumstances the GST is recognised as part of the cost of acquisition of the asset
or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of
GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and
financing activities, which are disclosed as operating cash flows.
(t)
Business Combinations
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments
issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest
in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or
at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or
loss.
Page 25
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(t)
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
(v)
(u)
r
o
F
(w)
Business Combinations (Continued)
On the acquisition of a business, the Group assesses the financial assets acquired and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic conditions, the group's operating or
accounting policies and other pertinent conditions in existence at the acquisition-date.
Where the business combination is achieved in stages, the group remeasures its previously held equity interest in the acquiree
at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in
profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent changes
in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss. Contingent
consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest
in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the
acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of
the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in
profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of
the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's
previously held equity interest in the acquirer.
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional
amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new
information obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on
either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the information possible
to determine fair value.
Comparative Figures
When required by accounting standards, comparative figures have been adjusted to conform to changes in presentation for
the current financial year.
Rounding of Amounts
The Company is an entity of the kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument
2016/191 issued by the Australian Securities and Investments Commission (“ASIC”) relating to the “rounding off” of amounts
in the directors' report and financial report. Amounts in the directors' report and financial report have been rounded off in
accordance with that ASIC Instrument to the nearest thousand dollars, unless otherwise indicated.
Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best
available current information. Estimates assume a reasonable expectation of future events and are based on current trends
and economic data, obtained both externally and within the Group.
Key Estimates
(i)
Impairment
The Group assesses impairment at each reporting date by evaluating conditions and events specific to the Group that
may be indicative of impairment triggers. Where any impairment trigger exists, the recoverable amount of the asset is
determined. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate
various key assumptions.
Page 26
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(w)
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Critical Accounting Estimates and Judgments (Continued)
Key Judgements
(i)
Provision for expected credit losses of trade receivables
The Directors have reviewed outstanding debtors of the Group as at 30 June 2020, and have formed the opinion
that amounts receivable from sales made during the current and previous financial years amounting to $732,000
(2019: $527,000) may not be collectable, and have created an allowance for expected credit losses.
(ii)
Provision for Inventory obsolescence
The directors review all inventories at the year end and provide for any inventories where the expected realisable
value is less than carrying value.
(iii)
Impairment of Goodwill and other intangible
The directors have assessed the value of goodwill and other intangible at balance date and have determined that
the net book value at 30 June 2020 is recoverable. Further details are included in Note 18.
(iv)
Provision for Warranty – Quantum Energy Technologies Pty Ltd
Quantum Energy Technologies, a subsidiary of the Company, has a provision for warranty expenses as at 30 June
2020 of $322,000. The provision is based on management's estimate of the cost of providing this warranty for two
years to its customer.
If management's estimate was to increase or decrease by 10%, the warranty provision would increase or decrease
by $32,000.
(v)
Provision for Warranty – Quantum Healthcare Korea Co, Ltd (“QHK”)
Quantum Healthcare Korea Co, Ltd, a subsidiary of the Company, reduced the provision for warranty provision to
$196,000 as at 30 June 2020. The provision of $196,000 is based on management's estimate of the cost of providing
this warranty for one year to its customer (being the difference between the warranty of three years provided by
QHK to its customer and the warranty of two years received from its supplier, which is estimated by management's
review of the contract with its supplier and determining the warranty element of total costs payable to its supplier.
If management's estimate was to increase or decrease by 10%, the warranty provision would increase or decrease
by $19,600.
(vi)
Defined benefit plans – Quantum Healthcare Korea Co. Ltd (“QHK”), Quantum Hunex Korea Co. Ltd (“Hunex”) and
Carestream Health Philippine Inc (“QHP”)
Various actuarial assumptions are required when determining the Group’s defined benefit obligations. See Note 24.
(vii)
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences and tax losses only if the Group considers
that it is possible that future taxable amounts will be available to utilise those temporary differences and losses.
(viii)
Estimation of useful lives of assets
The group determines the estimated useful lives and related depreciation and amortisation charges for its property,
plant and equipment and finite life intangible assets, including customer contracts through business combination.
The useful lives could change significantly as a result of technical innovations or some other event. The depreciation
and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically
obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.
Page 27
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(w)
l
y
n
o
Critical Accounting Estimates and Judgments (Continued)
(ix)
Business combinations
As discussed in note 1(t), business combinations are initially accounted for on a provisional basis. The fair value of
assets acquired, liabilities and contingent liabilities assumed are initially estimated by the group taking into
consideration all available information at the reporting date. Fair value adjustments on the finalisation of the
business combination accounting is retrospective, where applicable to the period the combination occurred and
may have an impact on the assets and liabilities, depreciation and amortisation reported.
(x)
e
s
u
l
Fair Value Measurement
The fair value of financial assets and liabilities are estimated for disclosure purposes in accordance with AASB 13– Fair Value
Measurement which requires disclosure of fair value measurements by level of the following fair value measurement
hierarchy:
(i)
(ii)
(iii)
Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 - 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); and
Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).
(y)
a
n
o
s
r
e
p
(z)
r
o
F
Going Concern
During the year ended 30 June 20, the consolidated entity earned a profit after income tax of $6,419,000. At June 2020, the
consolidated entity had net assets of $40,928,000 and net current assets of $7,355,000, and during the year ended 30 June
2020 generated cash flow from operating activities of $9,127,000. Included in current liabilities are amounts due to J Walstab
(a director of the Company) of $2,323,000. Mr Walstab has confirmed that he will not demand repayment of this amount
prior to 31 December 2021 if it affects the ability of the consolidated entity to pay its other debts as and when they fall due
and payable.
Management have prepared cash flow forecasts which management considers demonstrates that the consolidated entity will
generate sufficient cash flows to enable it to continue as going concern and pay its debts as and when they fall due and
payable. Accordingly, the financial statements have been prepared on a going concern basis.
New, revised or amending Accounting Standards and Interpretations adopted
The Group has applied all new, revised or amending Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board that are mandatory for the current reporting period. The main new Accounting Standards and
Interpretations that became effective during the current reporting period are as follows:
AASB 16 Leases
The Group has adopted AASB 16 from 1 July 2019 which replaces AASB 117 ‘Leases’ and for lessees eliminates the
classification of operating leases and finance leases.
Except for short-term leases and leases of low-value assets, right-of-use assets and corresponding liabilities are recognised in
the balance sheet. Straight-line operating lease expense recognition is replaced with a depreciation charge for the right-of-
use assets and an interest expense on the recognised lease liabilities. In the earlier periods of the lease, the expenses
associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. However, EBITDA
(Earnings Before Interest, Tax, Depreciation and Amortisation) results improve as the operating expense is now replaced by
interest expense and depreciation in profit or loss. For classification within the statement of cash flows, the interest portion is
disclosed in operating activities and the principal portion of the lease payments are separately disclosed in financing activities.
Page 28
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(z)
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
New, revised or amending Accounting Standards and Interpretations adopted (continued)
On adoption, lease liabilities were measured at the present value of the remaining lease payments, discounted using the
Group’s incremental borrowing rate at 1 July 2019. The weighted average incremental borrowing rate that applied to the
lease liabilities on 1 July 2019 was 4.3%.
Right of use assets were measured at their carrying amounts as if the standard had been applied since commencement date
of each lease but discounted using the incremental borrowing rate that applied on 1 July 2019.
Impact of adoption
The new accounting policies are disclosed in note 1(z). AASB 16 was adopted using the modified retrospective approach and
as such the comparatives have not been restated. The impact of adoption on opening retained profits as at 1 July 2019 was as
follows:
Operating lease commitments as at 1 July 2019
Operating lease commitments discount based on the weighted
average incremental borrowing rate of 4.3% (AASB 16)
Leases exemptions (short term leases and low value leases)
Right-of-use assets (AASB 16)
Lease liabilities – current (AASB 16)
Lease liabilities – non-current (AASB 16)
Increase in opening retained profits as at 1 July 2019
1 July 2019
$000
1,508
(65)
(27)
1,416
(805)
(611)
-
When adopting AASB 16 from 1 July 2019, the Group has applied the following practical expedients:
• applying a single discount rate to the portfolio of leases with reasonably similar characteristics;
• excluding any initial direct costs from the measurement of right-of-use assets;
• using hindsight in determining the lease term when the contract contains options to extend or terminate the lease; and
• not apply AASB 16 to contracts that were not previously identified as containing a lease
There are no other Standards that have been issued that are not yet effective and that are expected to have a material impact
on financial reports of the Group in the current or future reporting periods.
Page 29
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 2: REVENUE AND OTHER INCOME
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Revenue from contracts with customers
Sale of goods
Services revenue
Other revenue
Interest receivable – other entities
Interest receivable – related parties
Dividend from unrelated parties
Bargain purchase on business acquisition (Note 17)
Other revenue
Total Revenue
Timing of revenue recognition
Goods transferred at a point in time
Other revenue recognised at point in time
Services transferred over time
NOTE 3: PROFIT FOR THE YEAR
Profit for the year includes the following expenses:
Finance costs
- External - bank loans and overdrafts
- Interest expenses on lease liabilities
- Related parties
Total finance costs
Depreciation and amortisation expenses
- Depreciation of right-of-use assets
- Depreciation of property, plant and equipment
- Depreciation of intangible assets
Total depreciation and amortisation expenses
Rental expense relating to operating leases
Consolidated Group
2019
2020
$000
39,876
18,433
58,309
94
118
-
130
747
1,089
59,398
39,876
1,089
18,433
59,398
$000
43,477
14,478
57,955
12
301
14
-
1,147
1,474
59,429
43,477
1,474
14,478
59,429
Consolidated Group
2019
2020
$000
$000
210
21
526
757
784
684
85
1,553
221
470
-
622
1,092
-
628
-
628
912
AASB 15 requires on entity to disaggregate revenue recognised from contracts with customers into categories that depict how the
nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The Group has assessed that the
disaggregation of revenue by operating segments is appropriate in meeting this disclosure requirement as this is the information
regularly reviewed by the chief operating decision maker in order to evaluate the financial performance of the Group.
Rental expenses of $221,000 recognised in the 30 June 2020 income statement relate to leases that terminated during the year (short
term lease exemption) or low value leases.
Page 30
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 4: INCOME TAX EXPENSE / (CREDIT)
(a) Continuing Operations
The components of income tax expense / (credit) comprise:
Current tax relating to Continuing Operations
Deferred tax relating to Continuing Operations
(b) Income Tax Expense / (Credit)
The prima facie tax on profit from continuing activities before income
tax is reconciled to the income tax expense (credit) as follows:
Prima facie tax payable on profit from continuing activities before
income tax at 30% (2019:30%)
Add / (Deduct) tax effect of:
Difference in overseas tax rate
Fully franked dividend
Previously unrecognised tax losses used to reduce tax expense
Other amounts which are not deductible (assessable) for income tax purposes
Income tax expense (credit)
The applicable weighted average effective rates are
(c) Other comprehensive income
There is no income tax on the items in other comprehensive income.
Consolidated Group
2019
2020
$000
$000
268
548
816
383
(580)
(197)
2,171
783
(161)
-
(956)
(238)
816
18%
124
(4)
(961)
(139)
(197)
15%
NOTE 5: INTERESTS OF KEY MANAGEMENT PERSONNEL
(a) Names and positions held of consolidated entity key management personnel in office at any time during the current and
previous financial year are:
D.A Townsend
Chairman and Non-executive Director
J. Walstab
Y. Kim
A. McCarthy
CEO, Managing Director and Company Secretary
CEO, Quantum Healthcare Pty Ltd (subsidiary)
Non-executive Director
(b) Key Management Personnel remuneration
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Short-term employee benefits
Post-employment benefits
Long-term benefits
(c) Option holdings
There are no options held by key management personnel (2019: Nil)
Consolidated Group
2019
$000
947,099
72,295
10,867
1,030,261
2020
$000
867,353
56,305
8,816
932,474
Page 31
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 5: INTERESTS OF KEY MANAGEMENT PERSONNEL (CONTINUED)
The numbers of share in the Company held during the year by each director of the Company and other key management
personnel of the Group, including their personally related parties, are set out below:
(d) Shareholdings
Directors
D.A Townsend
J. Walstab
A. McCarthy
Specified Executives
Y. Kim
Related Parties
M. Walstab (Brother of J. Walstab)
Balance 1.7.19
No.
Disposed
No.
Acquired
No.
Balance 30.6.20
No.
329,312,458
514,712,393
32,000,000
400,000
-
-
-
-
-
-
329,312,458
514,712,393
12,000,000
44,000,000
-
400,000
NOTE 6: REMUNERATION OF AUDITORS
Auditing and reviewing financial reports
HLB Mann Judd (NSW Partnership)
- Audit and review of financial statements
Non-HLB Mann Judd (NSW Partnership) auditors for audit of subsidiary
companies:
- China
- Thailand
- Korea
- Philippines
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Consolidated Group
2019
2020
159,750
206,250
-
24,000
80,998
6,956
7,102
32,159
64,799
-
Page 32
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 7: EARNINGS PER SHARE
Earnings per share after tax
Basic earnings per share
Diluted earnings per share
Net profit
Earnings used to calculate basic EPS
Earnings used to calculate diluted EPS
(a) Weighted average number of ordinary shares outstanding during
the year used in calculating basic EPS
(b) Weighted average number of ordinary shares outstanding during
the year used in calculating diluted EPS
Weighted average number of shares used as the denomination:
Weighted average number of ordinary shares used as the
denomination in calculating basic earnings per share:
Adjustment for ordinary shares to be issued:
Weighted average number ordinary shares and for shares to be
issued used as the denominator in calculating diluted earnings per
share
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
NOTE 8: CASH AND CASH EQUIVALENTS
Cash at bank and in hand
r
o
F
Consolidated Group
2019
2020
Cents per share
Cents per share
0.49
0.48
0.17
0.17
Consolidated Group
2019
$000
1,905
1,905
2020
$000
5,446
5,446
No.
No.
1,114,455,832
1,098,308,291
1,128,308,291
1,128,308,291
1,128,308,291
1,098,308,291
-
1,128,308,291
30,000,000
1,128,308,291
Consolidated Group
2019
$000
2020
$000
8,765
8,765
4,327
4,327
Page 33
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 9: TRADE AND OTHER RECEIVABLES
Consolidated Group
2019
2020
$000
$000
15,695
(732)
14,963
12,446
1,562
955
14,963
(527)
(253)
48
(732)
11,173
(527)
10,646
9,565
497
1,111
11,173
(601)
74
-
(527)
Current
Trade receivables
Allowance for expected credit losses
Ageing of trade receivables not impaired
Not overdue
61-90 days past due
91 days and above past due
Total trade receivables
Movement in allowance for expected credit loss
Opening balance
Additions during the year
Amounts written off during the year
l
Closing balance
Allowance for expected credit losses
l
y
n
o
e
s
u
a
n
o
s
r
e
p
Current trade receivables are non-interest bearing and generally on 30-day terms for Australia and New Zealand entities, and 60 to 90-
day terms for Korea, Thailand and Philippine entities. The Group applies the AASB 9 simplified approach to measuring expected credit
losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. To measure the expected credit losses,
trade receivables have been grouped based on shared credit risk characteristics and the days past due.
Credit Risk — Trade and Other Receivables
The Group has no significant concentration of credit risk. The class of assets described as Trade and Other Receivables is considered to
be the main source of credit risk related to the Group. On a geographical basis, the Group has significant credit risk exposures in Australia,
Korea and Thailand given the substantial operations in these countries. In Australia, the Group has retention of title clauses over goods
sold until payment is received. The Group does not hold any financial assets with terms that have been renegotiated, but which would
otherwise be past due or impaired.
NOTE 10: INVENTORIES
r
o
F
At cost:
Raw materials and stores
Finished goods
Less: Provision for Impairment
Consolidated Group
2019
2020
$000
$000
8
10,238
10,246
(782)
9,464
90
12,530
12,620
(3,473)
9,147
Page 34
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 11: FINANCIAL ASSETS
Current
Financial assets at fair value through profit or loss:
- Shares in listed companies
- Renewable Energy Certificates
At face value:
l
y
n
o
- Term deposits
- Loans - others
e
s
u
Non-Current
- Deposits
- Loans - others
- Convertible note
Consolidated Group
2019
2020
$000
21
3
1,019
-
1,043
2,065
183
380
2,628
$000
264
8
330
59
661
2,144
2,749
200
5,093
l
Level 1 in the fair value hierarchy (refer Note 1 (x)): The fair values of shares in listed companies and Renewable Energy Certificates are
based on quoted market prices at the end of the reporting period.
Term deposits, Deposits and Loans are measured at their face value, which is considered to be their fair value.
a
n
o
s
r
e
p
r
o
F
NOTE 12: CONTROLLED ENTITIES
Name of entity
Country of
Incorporation
Ownership Interest
2020
2019
Parent entity
Quantum Health Group Limited
Controlled entity
Quantum Energy Technologies Pty Ltd
Quantum Energy Installations Pty Ltd
Quantum Healthcare Australia Pty Ltd (formerly Insight Oceania Pty Ltd)
Medishop Pty Ltd
Quantum Solar Power Pty Ltd
Quantum Energy Technologies (Suzhou) Co Ltd
Suzhou Sheerdrop Wine Co Ltd
Med-X Healthcare Pty Ltd
Quantum Healthcare Korea Co. Ltd
Quantum Bio Science Co. Ltd
Quantum Hunex Korea Co. Ltd
Quantum Healthcare Thailand Co. Ltd
Quantum Healthcare Pty Ltd
Quantum Healthcare Hong Kong Limited
Quantum Holdings Co. Ltd
Carestream Health Philippines, Inc.
Australia
Australia
Australia
Australia
Australia
Australia
China
China
Australia
Korea
Korea
Korea
Thailand
Australia
China
Korea
Philippines
100%
100%
100%
100%
100%
100%
100%
100%
100%
70%
95%
49%
100%
100%
100%
100%
On 1 January 2020, the Group purchased 100% of the shares of Carestream Health Philippines, Inc. (Note 17).
100%
100%
100%
100%
100%
100%
100%
100%
100%
70%
95%
49%
100%
100%
100%
-
Page 35
Consolidated Group
2019
$000
6,474
(4,880)
(24)
1,570
2020
$000
6,986
(5,286)
-
1,700
1,570
879
28
65
(158)
(684)
1,700
1,548
489
-
252
(91)
(628)
1,570
Consolidated Group
2019
$000
2020
$000
1,430
(657)
420
(46)
457
(190)
1,414
1,416
782
(784)
1,414
-
-
-
-
-
-
-
-
-
-
-
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 13: PROPERTY, PLANT AND EQUIPMENT
Plant & Equipment at cost
Accumulated depreciation
Provision for Impairment
Movements in carrying amounts
Opening Balance
Additions
Additions thought business combinations (Note 17)
Re-classification from inventory
Disposals/write-offs
Depreciation/amortisation expense
Closing balance
NOTE 14: RIGHT OF USE ASSETS
Non-Current
Land and building - right-of-use
Less: Accumulated Depreciation
Equipment-right-of-use
Less: Accumulated Depreciation
Vehicles-right-of-use
Less: Accumulated Depreciation
Total
Movements in carrying amounts
Opening balance at 1 July 2019
Additions
Depreciation/amortisation expense
Closing balance
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Total opening balance at 1 July 2019 was $1,416,000. AASB 16 was adopted using the modified retrospective approach and
comparatives for right-of-use assets have not been provided. Refer to Note1(z).
The Group leases land and buildings for its offices and warehouses under agreements of between three to five years with options to
extend. The leases have various escalation clauses. On renewal, the terms of the leases are renegotiated. The Group also leases office
equipment under agreements of up to three years. The Group leases vehicles under agreements of between seven to ten years.
In relation to right of use assets, depreciation charged in the year for land and buildings was $657,000; equipment was $46,000 and for
vehicle was $190,000.
Details on interest expense and cashflows relating to lease liabilities are disclosed in Note 26.
Page 36
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 15: INVESTMENT PROPERTIES
Investment properties, principally a freehold office building in Korea, are held for long-term rental yields and are no longer occupied by
the Group due to the restructure of its environmental division during the year. They are carried at cost.
Consolidated Group
2020
$000
2,444
2,444
2019
$000
2,444
2,444
Consolidated Group
2020
$000
186
832
313
1,264
121
(306)
(358)
465
620
3,137
2019
$000
682
589
-
1,247
(95)
-
-
466
323
3,212
Opening Balance
Closing Balance
NOTE 16: DEFERRED TAX ASSETS
l
y
n
o
e
s
u
a
n
o
s
r
e
p
Consists of:
- Inventories
- Employee entitlements
- Lease liability
l
- Accruals and Provisions
- Other
- Right of use assets
- customer relationship
- Impairment provisions
- Tax losses
The tax losses carried forward from the Australian tax consolidated group have not been recognised as the group estimates that is not
probable that taxable profit will be available against which the unused tax losses in a near future. The total value of the Deferred tax
assets on losses carried forward is $3,410,000.
NOTE 17: BUSINESS ACQUISITION
On 1 November 2019, the Group acquired Carestream’s medical imaging service Businesses in Australia and New Zealand (“Carestream
ANZ”). Carestream ANZ provides onsite and remote service to hospitals, radiology imaging centres in Australia and New Zealand. On 1
January 2020, the Group acquired Carestream Health Philippines Inc. (“Carestream Philippines”). Carestream Philippines provides onsite
and remote service to hospitals, radiology imaging centres in Philippine.
r
o
F
Page 37
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
Quantum Health Group Limited
NOTE 17: BUSINESS ACQUISITION (CONTINUED)
Details of the acquisition are as follows:
l
y
n
o
e
s
u
Cash and cash equivalent
Trade and other receivables
Inventory
Customer contracts
Other assets
Property, plant and equipment
Retirement benefit plan
Deferred tax assets / (liabilities)
Employee liabilities
Deferred income & extended warranty
Trade and other payables
Net identifiable assets acquired
Goodwill / (bargain purchase)
l
Acquisition-date fair value of the total consideration transferred
Representing:
Cash paid
Deferred consideration
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
Less: cash and cash equivalents
Net cash used - investing activities
Carestream ANZ
Service Business
Fair value
$000
Carestream
Philippines
Service Business
Fair value
$000
Total
$000
-
-
1,465
1,279
18
-
-
(143)
(773)
(1,300)
-
546
1,542
2,088
1,208
880
2,088
1,208
-
1,208
2,006
387
113
-
163
15
127
387
-
(315)
(285)
2,598
(130)
2,468
2,468
-
2,468
2,468
(2,006)
462
2,006
387
1,578
1,279
181
15
127
244
(773)
(1,615)
(285)
3,144
1,412
4,556
3,676
880
4,556
3,676
(2,006)
1,670
The provisional accounting for the acquisition of Carestream Philippines generated a gain from bargain purchase of $130,000 as the fair
value of net assets of $2,598,000 was in excess of the aggregate consideration of $2,468,000. This bargain purchase gain has been
recognised as other income during the year.
The acquisition of Carestream ANZ contributed revenue of $7,671,000 and net profit of $1,015,000 to the group for the period from 1
November 2019 to 30 June 2020. The acquisition of Carestream Philippines contributed revenue of $448,000 and net profit of $24,000 to
the group for the period from 1 January 2020 to 30 June 2020.
Due to restructuring that occurred in both businesses before the acquisition by the Group, it is not possible to estimate reliably what
would have been the impact on revenue and profit for the year ended 30 June 2020 if both businesses had been purchased on 1 July
2019.
a
n
o
s
r
e
p
r
o
F
NOTE 18: GOODWILL AND INTANGIBLE ASSETS
Goodwill on acquisition
Cost
Accumulated impairment losses
Net carrying amount
Consolidated Group
2019
$000
2020
$000
92,860
(71,335)
21,525
91,318
(71,335)
19,983
Page 38
l
y
n
o
e
s
u
a
n
o
s
r
e
p
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 18: GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
Medical:
- Quantum Healthcare Australia (formerly Insight Oceania Pty Ltd)
- Carestream Health Australia Pty Ltd
- Quantum Healthcare Korea Co., Ltd.
- Quantum Healthcare Thailand Co., Ltd.
- Quantum Hunex Korea Co., Ltd.
Customer contacts
Customer contacts – at cost
Less: Accumulated amortisation
Net carrying value
Total Goodwill and Intangible Assets
Consolidated Group
2019
$000
2020
$000
11,811
1,542
5,102
2,231
839
21,525
1,279
(85)
1,194
11,811
-
5,102
2,231
839
19,983
-
-
-
22,719
19,983
Reconciliations of the written down values at the beginning and end of the current financial period are set out below:
l
Balance at 1 July 2019
Additions through business combination (Note 7)
Amortisation expense
Net carrying value
Goodwill
$
19,983
1,542
-
21,525
Customer
contracts
$
-
1,279
(85)
1,194
Total
$
19,983
2,821
(85)
22,719
The value in use calculations for the goodwill on acquisition are based on discounted estimated maintainable earnings before interest
and taxes (“EBIT”). EBIT increase is forecast at an average rate for the next five years and a terminal value of a multiple of EBIT. Details
of key assumptions used in the value in use calculations are as follows:
r
o
F
Discount rate
Terminal value of approximate times EBIT
EBIT base on forecast for year ending 30 June 2020
increase (decrease) at average of
Quantum
Healthcare
Australia Pty
Ltd (formerly
Insight Oceania
Pty Ltd)
17.5%
5.7
11%
Quantum
Healthcare
Korea Co., Ltd.
Quantum
Hunex Korea
Co., Ltd.
Quantum
Healthcare
Thailand Co.,
Ltd.
17.5%
5.7
2 %
17.5%
5.7
53 %
17.5%
5.7
5%
Page 39
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 18: GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
Sensitivity Analysis
If discount rates were changed to the rates detailed in the table below with no change to any of the other assumptions, the estimated
recoverable amount would approximately equal the carrying amount.
If forecast EBIT used was changed by the amounts noted in the table below with no change to any of the other assumptions the estimated
recoverable amount would approximately equal the carrying amount.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Discount rate – change discount rates to
EBIT change – reduce forecast EBIT by
NOTE 19: OTHER ASSETS
CURRENT
Prepayments
Guarantee deposits
Other
NON-CURRENT
Security Deposits
Guarantee deposits
Other
NOTE 20: TRADE AND OTHER PAYABLES
CURRENT
Trade payables
Account payable to related parties
Deferred consideration
Employee benefits
Other
NON-CURRENT
Deferred consideration
Other payables
Quantum
Healthcare
Australia Pty
Ltd (formerly
Insight Oceania
Pty Ltd)
27%
34%
Quantum
Healthcare
Korea Co., Ltd.
Quantum
Hunex Korea
Co., Ltd.
Quantum
Healthcare
Thailand Co.,
Ltd.
21%
16%
127%
86%
206%
86%
Consolidated
Group
2020
$000
114
3,363
393
3,870
450
1,385
71
1,906
2019
$000
43
2,707
958
3,708
487
-
83
570
Consolidated Group
2019
2020
$000
9,346
211
200
657
987
11,401
680
200
880
$000
5,891
221
-
230
1,392
7,734
-
-
-
NOTE 21: CONTRACT LIABILITIES
Page 40
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
Quantum Health Group Limited
Contract liabilities are aggregate amount of the transaction price allocated to performance obligations that are unsatisfied at the end of
the reporting period. This will be recognised as revenue when the performance obligations are satisfied.
Consolidated Group
2019
2020
$000
3,423
3,417
6,840
237
237
7,077
$000
1,218
1,836
3,054
178
178
3,232
Consolidated Group
2019
2020
$000
$000
3,398
1,370
1,453
2,667
8,888
-
4
-
-
4
5,537
1, 200
2,243
3,432
12,412
23
81
-
537
641
CURRENT
Customer deposits
Contract liabilities
NON-CURRENT
Contract liabilities
Total
NOTE 22: BORROWINGS
CURRENT
Unsecured liabilities:
- Loans - Related parties (Note 30)
- Loans - Other parties
- Loans - Director of subsidiary
Secured liabilities:
- Bank borrowings
NON-CURRENT
Unsecured liabilities:
- Loans - Related parties (Note 30)
- Loans - Other parties
- Loans - Director of subsidiary
Secured liabilities:
- Bank borrowings
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Borrowings are accounted for at face value.
In relation to the current bank borrowings (relates to QHC Korea & Quantum Hunex Korea) amount $717,126 is guaranteed by a Korea
Credit Guarantee Fund. QHC Korea pays a guarantee fee to the Korea Credit Guarantee Fund for the guarantee provided. $204,858 is
secured by the CEOs of QHC Korea and Quantum Hunex Korea. $1,248,545 is secured with Hunex factory as collateral and $496,021 is
secured with QHoldings foreign currency deposit.
NOTE 23: PROVISIONS
Page 41
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
Consolidated Group
2020
$000
1,731
518
2,249
443
2019
$000
1,040
664
1,704
185
Consolidated Group
2019
$000
1,426
(470)
956
2020
$000
891
(556)
335
The group has defined benefit pension plans in Korea and Philippines. The cost of defined benefit pension plans and the present value
of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These
include the determination of the discount rate, future salary increases, mortality rates and future pension increases. The following
tables summarise the main assumptions used, the components of net benefit expense recognised in the statement of profit or loss and
amounts recognised in the statement of financial position. The actuarial reports underlying the following amounts were received by the
Company in September 2020.
(a) Details of the net retirement benefit obligation is as follows:
Present value of the retirement benefit obligation
Fair value of the plan assets
Net retirement benefit obligation
(b) Profit and loss recognised in connection with defined benefit pension plans for the year ended
30 June 2020 as follows:
CURRENT
Employee benefits
Warranty
NON CURRENT
Employee benefits
NOTE 24: DEFINED BENEFIT PLANS
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
Current service cost
Past service cost / (income) from plan amendments
Interest cost on retirement benefit obligation
Total expenses included in the employee benefits expense
r
o
F
Consolidated Group
2019
$000
257
(582)
16
(309)
2020
$000
321
-
17
338
Page 42
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Beginning balance
Contributions
Benefits paid
Expected return
Foreign exchange loss/(gain)
Actuarial gain/(loss)
Ending balance
Discount rate
Future salary increases rate
Retirement age
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 24: DEFINED BENEFIT PLAN (CONTINJUED)
(c) Changes in the present value of the defined benefit liabilities for the year ended
30 June 2020 are as follows:
Consolidated Group
2019
$000
1,763
-
257
23
27
52
(582)
(115)
1,426
2020
$000
1,426
(129)
265
18
(20)
(167)
-
(502)
891
Defined benefit (asset) / liability adopted upon business acquisition
Beginning balance
Current service cost
Interest cost
Foreign exchange loss/(gain)
Actuarial loss/(gain)
Retirement benefits paid
Ending balance
Past service cost / (income) from plan amendments
(d) Changes in the fair value of plan assets for the year ended 30 June 2020 are as follows:
Consolidated
Group
2019
2020
$000
470
391
(299)
5
(11)
-
556
$000
231
271
(13)
8
5
(32)
470
Consolidated
Group
2019
2020
2.72%
4.94%
60
years
2.32%
4.16%
60
years
(e) The principal assumptions used in actuarial valuation as at 30 June 2020 are as follows:
(f) The plan assets as at 30 June 2020 are as follows:
Term deposits
Consolidated
Group
2019
2020
$000
556
$000
470
Page 43
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 25: ISSUED CAPITAL AND SHARES TO BE ISSUED
CURRENT
Fully paid ordinary shares
Ordinary shares to be issued
Movements- Fully paid ordinary shares:
At the beginning of the year
Share issued
Shares to be issued
At the end of the year
Movements – Ordinary shares to be issued:
At the beginning of the year
Share issued
At the end of the year
30 June 2020
No.
30 June 2019
No.
30 June 2020
$ 000
30 June 2019
$ 000
Consolidated Group
1,128,308,291
-
1,128,308,291
1,098,308,291
30,000,000
1,128,308,291
86,429
-
86,429
1,128,308,291
30,000,000
-
1,128,308,291
20,000,000
-20,000,000
1,158,308,291
1,128,308,291
86,429
-
-
86,429
30,000,000
(30,000,000)
50,000,000
(20,000,000)
720
(720)
-
30,000,000
-
85,709
720
86,429
86,429
480
-480
86,429
1200
(480)
720
l
Capital Management
Management controls the capital of the Group in order to meet debt covenants, provide shareholders with adequate returns and 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.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital structure in response
to changes in risks and in the market. These responses include the management of debt levels and share issues. There have been no
changes in the strategy adopted by management to control the capital of the Group since the prior year.
Issued shares
The Group and the minority shareholders agreed to a two-year voluntary escrow through to 5 April 2020 in respect of these issued QTM
Shares. The minority shareholders have agreed to continue to be engaged with QTM after the acquisition to assist in the operations and
management of QHC. To further strengthen the future ongoing commitment and involvement of the minority shareholders in the QHC
business agreement was also reached, that:
-
-
if QHC achieved EBIT of greater than $A5,000,000 for the financial year ended 30 June 2018, on 30 Sept 2018 QTM would issue
to the minority shareholders a further 20,000,000 shares at 2.4 cents per share, and
if QHC achieved an aggregate EBIT of greater than $A11 million for the 2 year period from 1 July 2017 to 30 June 2019, QTM would
on 30 September 2019 issue to the minority shareholders a further 30,000,000 shares at 2.4 cents per share.
With QHC’s EBIT exceeding $A5 million for the financial year ended 30 June 2018, the group issued 20,000,000 QTM shares on 3 October
2018 to the QHC sellers, in accordance with the QHC Acquisition agreement.
With QHC’s EBIT exceeding $A11 million for the 2 year period from 1 July 2017 to 30 June 2019, the group issued 30,000,000 QTM
shares on 17 December 2019 to the QHC sellers, in accordance with the QHC Acquisition agreement.
l
y
n
o
e
s
u
a
n
o
s
r
e
p
r
o
F
Page 44
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 26: LEASE LIABILITIES
AASB 16 was adopted using the modified retrospective approach and comparatives for lease liabilities have not been provided. Refer to
Note 1(z). Interest expense recognised in the statement of profit or loss and other comprehensive income was $21,000 and interest
and principle payments made to lessors in respect to lease liabilities was $805,000 for the year.
The lease liabilities relating to equipment and vehicles are secured over the assets to which the leases relate.
Consolidated Group
2020
$000
929
476
2019
$000
-
-
Consolidated Group
2020
$ 000
504
1,586
178
2,268
2019
$ 000
504
1,375
29
1,908
CURRENT
- Lease liability
NON CURRENT
- Lease liability
l
y
n
o
e
s
u
a
n
o
s
r
e
p
l
NOTE 27: RESERVES
Reserve
Undistributable Profits Reserve
Exchange Translation Reserve
Actuarial Gain Reserve
Closing Balance
Undistributable Profits Reserve
The undistributable profits reserve records profits earned by Quantum Energy Technologies (Suzhou) Co Ltd that are required to be
retained by that Company and cannot be distributed as dividends to Quantum Health Group Limited. The reserve is currently at its
maximum required amount.
Exchange Translation Reserve
The exchange translation reserve records the exchange differences arising on translation of the financial statements of overseas
subsidiaries to Australian dollars.
r
o
F
Page 45
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 28: SEGMENT REPORTING
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Revenue recognised at
point in time - Australia
Revenue recognised at
point in time - China
Revenue recognised at
point in time - Thailand
Revenue recognised at
point in time - Korea
Revenue recognised at
point in time - Philippines
Total recognised at point in
time
Revenue recognised over
time - Australia
Revenue recognised over
time - China
Revenue recognised over
time - Thailand
Revenue recognised over
time - Korea
Revenue recognised over
time - Philippines
Total recognised over time
Total revenue - Australia
Total revenue- China
Total revenue - Thailand
Total revenue - Korea
Total revenue - Philippines
Total revenue
Profit/(Loss) after income
tax - Australia
Profit/(Loss) after income
tax - China
Profit/(Loss) after income
tax - Thailand
Profit/(Loss) after income
tax - Korea
Profit/(Loss) after income
tax - Philippines
Total profit / (loss) after
income tax
Environmental
Services
Medical
Unallocated
Elimination
Consolidated-
Continuing
Operations
2020
$ 000
2019
$ 000
2020
$ 000
2019
$ 000
2020
$ 000
2019
$ 000
2020
$ 000
2019
$ 000
2020
$ 000
2019
$ 000
2,244
2,774 10,071
5,643
119
302
(2,402)
463
10,032
9,182
1,556
1,663
-
-
17
51
(1,586)
(1,670)
(13)
44
-
-
-
- 16,523 15,454
- 14,497 20,271
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16,523
15,454
14,497
20,271
-
-
3,800
4,437 41,091 41,368
136
353
(4,062)
(1,207)
40,965
44,951
61
55
9,720
7,061
-
-
-
-
-
-
-
-
-
-
426
280
7,784
7,082
448
-
61
55 18,378 14,423
2,305
1,556
-
-
-
3,861
2,829 19,791 12,704
-
1,663
-
- 16,949 15,734
- 22,281 27,353
-
-
448
4,492 59,469 55,791
-
-
-
-
-
-
119
17
-
-
-
136
-
-
-
-
-
-
(6)
-
-
-
-
(6)
-
-
-
-
-
-
302
51
-
-
-
353
(2,408)
(1,586)
-
(74)
-
463
(1,670)
-
-
-
(4,068)
(1,207)
9,775
7,116
-
-
426
280
7,784
7,082
448
-
18,433
14,478
19,807
(13)
16,949
22,207
448
59,398
16,298
44
15,734
27,353
-
59,429
(426)
(847)
5,947
3,302
(1,379)
(624)
(907)
(789)
3,235
1,042
673
(1,840)
-
-
(40)
(26)
(1,586)
416
(953)
(1,450)
-
-
-
-
-
-
1,928
2,533
(401)
681
24
-
-
-
-
-
-
-
1,637
949
-
-
-
-
3,565
2,533
548
681
24
-
247
(2,687)
7,498
6,516
(1,419)
(650)
93
(372)
Segment assets - Australia
Segment assets - China
Segment assets - Thailand
Segment assets - Korea
Segment assets - Philippines
Total segment assets
9,482
(1,004)
-
-
-
8,478
(20)
1,411 45,133 33,494
-
-
- 11,669 11,173
- 19,560 18,025
-
-
3,017
9,011 11,037
-
-
-
-
-
-
-
-
(22,815)
-
-
-
-
(13,759)
-
-
-
-
1,391 79,379 62,692
9,011 11,037
(22,815)
(13,759)
6,419
40,811
(1,004)
11,669
19,560
3,017
74,053
2,807
32,183
(20)
11,173
18,025
-
61,361
Page 46
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 28: SEGMENT REPORTING (CONTINUE)
Environmental
Services
Medical
Unallocated
Elimination
Consolidated-
Continuing
Operations
2020
$ 000
2019
$ 000
2020
$ 000
2019
$ 000
2020
$ 000
2019
$ 000
2020
$ 000
2019
$ 000
2020
$ 000
2019
$ 000
8,080
120
823 13,858
-
680
5,256
-
10,503 12,283
-
-
(12,124)
-
(4,996)
-
-
-
-
135
2,988
-
- 12,259 10,233
-
294
-
-
-
-
-
-
-
-
-
-
-
-
-
20,317
120
135
12,259
13,366
680
2,988
10,233
294
-
8,200
1,503 26,546 18,477
10,503 12,283
(12,124)
(4,996)
33,125
27,267
(4)
128
-
-
40
-
66
3
-
14
15
892
1,424
94
247
(157)
625
12
322
27
(37)
-
879
489
(72)
-
118
510
-
-
(106)
-
301
756
-
-
-
-
-
-
-
-
-
-
-
-
-
-
816
1,553
212
757
(197)
628
313
1,092
67
(22)
879
489
Segment liabilities -
Australia
Segment liabilities - China
Segment liabilities -
Thailand
Segment liabilities - Korea
Segment liabilities -
Philippines
Total segment liabilities
Income tax expense (credit)
Depreciation
Interest Revenue
Interest Expense
Fair value gain/(loss) on
financial assets
Acquisition of Property,
plant & equipment
Operating segments are reported in a manner consistent with the internal reporting provided by the chief operating decision maker.
The chief operating decision maker who is responsible for allocating resources and assessing performance of operating segments has
been identified as the board.
Accounting Policies
Segment revenues and expenses are those directly attributable to the segments and include any joint revenue and expenses where a
reasonable basis of allocation exists. Segment assets include all assets used by a segment and consist principally of cash, receivables,
inventories, intangibles, other financial assets and property, plant and equipment, net of allowances and accumulated depreciation and
amortisation. While most assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by
two or more segments is allocated to the segments on a reasonable basis. Segment liabilities consist principally of payables, employee
benefits, accrued expenses, provisions and borrowings.
Business Segments
The entity operates in two primary business segments being the Medical division focussing on high-end medical equipment distribution
in Asia Pacific and the Environmental division for manufacture of energy saving heat pump technology used for heating and cooling
systems internationally, and other investments/assets.
Geographical Segments
The Group predominantly operates in 5 geographical segments with manufacturing operations in China (ceased in early 2019) and
distribution in Australia, Korea, Thailand and Philippines.
The manufacturing operations in China have not been disclosed as a discontinued corporation, as the Group continues the acquisition
and sale of the same products.
Intersegment Transfers
There were no intersegment transfers.
Page 47
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 29: CASH FLOWS INFORMATION
Reconciliation of Cash Flows from Operations with Profit After
Income Tax
Operating profit after income Tax
Non-cash items in profit
-Depreciation of property, plan and equipment
-Depreciation of right-of-use assets
-Net exchange differences
-Profit/loss on disposal of assets/investments
-Deferred consideration (gain)
-Change in fair value of financial assets
-Provision for annual leave and long service leave
-Impairment of receivables
-Impairment of goodwill
-Amortisation of intangible
-Provision for defined benefit plans
Increase/ (decrease) in:
-Trade receivables
-Inventories
-Deferred Tax Asset
-Other assets
Increase/ (decrease) in:
-Trade creditors and accruals
-Contract liabilities
-Provision for warranty
-Income tax payable
Cash flows from operating activities
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Note
13
14
Consolidated Group
2020
$000
2019
$000
6,419
2,807
684
784
259
(91)
-
(27)
166
205
-
85
(621)
(4,438)
(317)
75
(1,498)
3,703
3,845
(146)
40
9,127
628
-
719
107
(124)
(38)
255
456
144
-
(575)
1,250
3,537
(580)
312
(6,457)
197
(243)
(1,159)
1,237
Page 48
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 30: RELATED PARTY DISCLOSURES
(a) Equity interests in related parties
Equity interests in controlled entities
(b) Key management personnel
Details of the percentage of ordinary shares held in controlled entities are disclosed in Note 12 to the financial statements.
Details of key management personnel remuneration are disclosed in the Remuneration Report in the Directors’ Report, and in Note 5.
(c) Directors’ equity holdings
Details of directors’ and other key management personnel’s equity holdings are disclosed in Note 5.
(d) Other transactions with key management personnel and related parties
Amount payable to key management personnel and other related parties
- Phelan Art Studio (company related to Susan Walstab, John Walstab's sister)
- Youngchun Kim
Disclosed as Other payables (Note 20).
Loans from key management personnel and other related parties
- John Walstab (unsecured)
- Drew Townsend
Accrued interest payable on loans from directors and director related parties at 10% and
15% per annum
- John Walstab
- Drew Townsend
Disclosed as:
Non-Current liability (Note 22)
Current liability (Note 22)
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Consolidated Group
2019
$
2020
$
65,610
145,546
211,156
16,190
204,102
220,292
264,078
964,916
23,156
899,996
2,058,902 4,626,245
10,427
3,397,861 5,559,824
109,964
-
23,156
3,397,861 5,536,668
3,397,861 5,559,824
Page 49
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 30: RELATED PARTY DISCLOSURES (CONTINUED)
(d) Other transactions with key management personnel and their related parties (continued)
Payment for accountancy services to Hall Chadwick Chartered Accountants of which Drew
Townsend is a Partner
Payment for sales expenses to Phelan Art studio (company related to Susan Walstab, sister
of John Walstab)
Interest expense/(income) on loans from/(to) Directors
- John Walstab
- Drew Townsend
Consolidated Group
2019
$
2020
$
3,261
31,580
65,610
4,000
(329,539) 505,540
86,987
(99,537)
(e) Loans from key management personnel
l
2020
l
y
n
o
e
s
u
a
n
o
s
r
e
p
r
o
F
John Walstab
- Loan
- Accrued Interest
Drew Townsend
- Loan
- Accrued Interest
2019
John Walstab
- Loan
- Accrued Interest
Drew Townsend
- Loan
- Accrued Interest
Youngchun Kim
- Loan
Balance at
beginning of
the year
$
Interest
payable for the
year
$
Loans
(repayments)
made during
the year
$
Balance at
end of the
year
$
Highest
balance in the
year
$
61,934
4,626,245
899,996
10,427
-
329,539
202,144
(2,896,882)
264,078
2,058,902
264,078
2,058,902
-
99,537
64,920
-
964,916
109,964
964,916
109,964
2,070,120
4,120,705
-
505,540
(2,008,186)
-
61,934
4,626,245
61,934
4,626,245
904,501
(76,560)
-
86,987
(4,505)
-
899,996
10,427
899,996
10,427
692,442
-
(692,442)
-
-
Page 50
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 31: FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks:
Market risk – including:
(i)
Foreign exchange risk
(ii)
(iii)
Interest rate risk
Price risk
Credit risk, and
Liquidity risk
1 (i). Foreign exchange risk
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating due to movement
in foreign exchange rates of currencies in which the Group holds financial instruments which are other than the AUD functional currency
of the Group.
The Group does not hedge and therefore is exposed to fluctuations in foreign currencies arising from the sale and purchase of goods and
services in currencies other than the Group’s functional currency. The Group monitors movements in exchange rates.
The following table shows the foreign currency exposure on the financial assets and liabilities of the Group’s operations, denominated in
currencies other than the functional currency of the operations.
1.
l
y
n
o
2.
3.
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Receivables:
China RMB
Euro
US dollars
New Zealand dollars
Korea WON
Thai Baht
Philippine Peso
Total amounts receivable in foreign currencies
Payables:
China RMB
Euro
US dollars
New Zealand dollars
Korea WON
Thai Baht
Philippine Peso
Total amounts payable in foreign currencies
Converted to
Australian dollars
2019
$000
115
35
509
682
7,221
4,672
-
13,234
1,068
13
-
4
5,346
1,825
-
8,256
2020
$000
137
4
18
808
11,097
7,256
789
20,109
217
1
2,155
6
10,699
863
158
14,099
Page 51
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 31: FINANCIAL RISK MANAGEMENT (CONTINUED)
1 (i). Foreign exchange risk (continued)
Financial Assets:
If foreign exchange rates changed by +10% (value of Australian dollar weakens) or -
10% (value of Australian dollar improves) with no change to any other amounts, the
following impact will be noted:
Increase/ (decrease) in profit
Increase/ (decrease) in net assets
Financial Liabilities:
If foreign exchange rates changed by +10% (value of Australian dollar weakens) or -
10% (value of Australian dollar improves) with no change to any other amounts, the
following impact will be noted:
Increase/ (decrease) in profit
Increase/ (decrease) in net assets
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
2020
2019
$000
$000
$000
$000
+10%
1,828
1,828
-10%
(2,234)
(2,234)
+10%
1,200
1,200
-10%
(1,467)
(1,467)
+10%
1,272
1,272
-10%
(1,567)
(1,567)
+10%
(749)
(749)
-10%
916
916
Page 52
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Consolidated
Financial assets:
Cash
Trade & Other
Receivables
Renewable Energy
Certificates
Shares in Listed
Companies
Other loans - non
interest bearing
Loans
Term deposits
Deposits
Convertible note
Other financial
assets
Total financial assets
Financial liabilities:
Lease liability
Bank and other loans
Trade and other creditors
Contract liabilities
Total financial liabilities
10%
1.7%
10%
10%
4.3%
2.5%
13.2%
10.9%
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 31: FINANCIAL RISK MANAGEMENT (CONTINUED)
1 (ii). Interest rate risk
Exposure to interest rate risk arises on financial assets and financial liabilities recognised at reporting date whereby a future change in
interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The Group is also exposed to earnings
volatility on floating rate instruments. Interest rate risk is managed using a mix of fixed and floating rate debt as detailed below.
Floating
Fixed Interest Rate Maturing
Non-Interest Bearing
Total
Interest Rate
Less than 1 Year
1 to 5 Years
Weighted
Average Interest
Rate
%
$ 000
$ 000
$ 000
$ 000
$ 000
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
0.1%
0.1%
8,765 4,327
-
-
-
-
-
-
-
-
-
-
-
-
1,019
330
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
183
2,749
-
-
-
-
-
-
8,765
4,327
14,963
10,646
14,963
10,646
3
8
3
8
21
264
21
264
-
-
-
59
-
-
-
59
183
2,749
1,019
330
2,065
2,144
2,065
2,144
380
200
-
-
380
200
-
-
5,884
4,278
5,884
4,278
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8,765 4,327
1,019
330
563
2,949
22,936 17,399
33,283
25,005
-
-
-
-
-
-
-
-
-
-
929
49
476
7,435
10,120
-
-
-
-
-
-
-
6
537
-
-
-
-
1,405
55
1,457
2,341
8,892
12,998
12,281
7,734
12,281
7,734
7,077
3,232
7,077
3,232
8,364
10,169
476
543
20,815 13,307
29,655
24,019
Page 53
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 31: FINANCIAL RISK MANAGEMENT (CONTINUED)
Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices largely due to demand and supply factors for commodities.
The Group is exposed to movement in the market values of Renewable Energy Certificates (“RECs”) and shares in listed companies.
Exposure to credit risk relating to financial assets arises from the potential non-performance by counter parties of contract obligations
that could lead to a financial loss to the Group. The Group does not have any material credit risk exposure to any single receivable or
group of receivables under financial instruments entered into by the Group.
Credit risk is managed through the maintenance of procedures including the utilisation of systems for the approval, granting and renewal
of credit limits, regular monitoring of exposures against such limits and monitoring of the financial stability of significant customers and
counterparties, ensuring to the extent possible that customers and counterparties to transactions are of sound credit worthiness. Such
monitoring is used in assessing receivables for impairment. Within the Group, credit terms are generally 30 to 60 days from the invoice
date.
Risk is also minimised through investing any surplus funds in financial institutions that maintain a high credit rating.
l
The maximum exposure to credit risk by class of recognised financial assets at balance date, excluding the value of any collateral or other
security held, is equivalent to the carrying value of those financial assets as presented in the balance sheet.
Liquidity risk arises from the possibility that the Group might encounter difficulty in settling its debts or otherwise meeting its obligations
related to financial liabilities. The Group manages this risk through the following mechanisms:
•
•
•
•
preparing forward looking cash flow analysis in relation to its operational, investing and financing activities
monitoring undrawn credit facilities
maintaining a reputable credit profile
managing credit risk related to financial assets.
1 (iii). Price risk
2. Credit risk
3. Liquidity risk
l
y
n
o
e
s
u
a
n
o
s
r
e
p
r
o
F
Financial liability maturity analysis
Consolidated
Financial liabilities:
Lease liability
Bank and other loans
Trade and other creditors
Contract liabilities
Total financial liabilities
After 1 month,
within 1 year
$ 000
1 to 5 Years
$ 000
Total
$ 000
2020
2019
2020
2019
2020
2019
929
8,892
11,401
6,840
28,062
49
12,363
8,952
1,836
23,200
476
-
880
237
1,593
6
635
-
178
819
1,405
8,892
12,281
7,077
29,655
55
12,998
8,952
2,014
24,019
Page 54
Quantum Health Group Limited
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020
NOTE 32: PARENT ENTITY INFORMATION
Consolidated
Group
2019
$ 000
1
8,884
6,554
14,085
2020
$ 000
-
6,557
4,807
13,137
85,229
(91,809)
(6,580)
85,229
(90,430)
(5,201)
(1,379)
(1,379)
(624)
(624)
Current assets
Total assets
Current liabilities
Total liabilities
Shareholders' equity:
Issued capital
Retained earnings
Loss for the year
Total comprehensive loss
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
NOTE 33: COMPANY DETAILS
The registered office of the Company and the principal place of business is:
Quantum Health Group Limited
22 Rosebery Avenue, Rosebery, NSW 2018 Australia
NOTE 34: IMPACT OF COVID-19 AND EVENTS SUBSEQUENT TO BALANCE DATE
The impact of COVID-19 pandemic is ongoing. Management is closely monitoring the evolution of this pandemic and the response of the
governments, particularly restrictions in place to contain this virus and how this will impact the Group and the economy, as a whole.
The Group continues to achieve budgeted results up the 31 August 2020 and management believes it will continue to do so even through
the extent of the impact COVID-19 may have on its future liquidity, financial performance and position and operations is uncertain and
cannot be reasonably estimated at date these financial statements were issued.
With significant term deposit and cash on hand, the group is positively placed to manage the impact of this health crisis in the short term.
Management is currently monitoring and assessing the ongoing development and have appropriate plans in place to respond accordingly.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affected, or may significantly affect:
(a)
(b)
r
o
F
(c)
the Group’s operations in future financial years;
the results of those operations in future financial years;
the Group’s state of affairs in future financial years.
Page 55
Quantum Health Group Limited
SECURITIES EXCHANGE INFORMATION
(a) Distribution of Shareholders as at 12 October 2020
Holdings Ranges
1-1,000
1,001-5,000
5,001-10,000
10,001-1,000,000
1000,001-99,999,999,999
Total
Holders
89
234
247
521
192
1,283
Total Units
40,324
744,674
1,995,687
18,625,514
1,106,902,092
1,128,308,291
%
0.000
0.070
0.180
1.650
98.100
100.000
(a) Distribution of Shareholders as at 12 October 2020
(b)
There are currently 933 holders with less than a marketable parcel of 50,000 shares
reflects the directors relevant stock interests:
Directors
J. Walstab
D.A. Townsend
Ordinary shareholder
Crisp Holdings Ltd
Shares
514,712,393
329,312,458
Relevant interest notified
310,064,505 ordinary shares
(c) The names of the substantial shareholders listed in the holding Company’s register as at 30 June 2020 are as follows. This also
(d) Unquoted equity securities
There are no options issued.
(e) Voting Rights
Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a
meeting or by proxy has one vote on a show of hands.
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
r
o
F
Page 56
Quantum Health Group Limited
SECURITIES EXCHANGE INFORMATION (CONTINUED)
(e) 20 Largest Shareholders - Ordinary Shares as at 12 October 2020
l
y
n
o
e
s
u
l
a
n
o
s
r
e
p
Holder Name
MR JOHN WALSTAB
CRISP HOLDINGS LTD
YOUNGCHUN KIM
DONG SUN IM
MRS SANDRA JOAN MCDONALD & MR ANDREW MCDONALD
MRS SANDRA JOAN MCDONALD & MR ANDREW MCDONALD
SEOK SANGYUP
JANG HW
RAMN PTY LTD
MR BARRY RAYMOND NELSON & MR BRAD ANDREW NELSON
MR ANDREW MCDONALD
MR NICHOLAS DERMOTT MCDONALD
CHICAGO LIMITED
DINWOODIE INVESTMENTS PTY LTD
MR YU JIE
MR JOHN ROBERT MCGEACHIE & MRS JENNIFER ANN MCGEACHIE
HIGHLANDS INVESTMENTS HOLDINGS PTY LTD
DIXSON TRUST PTY LTD
MR DONG XIE
MR RICHARD ALBARRAN
Balance
512,182,377
310,064,505
44,000,000
22,000,000
18,528,909
13,205,000
10,000,000
10,000,000
9,266,444
8,400,000
5,856,000
5,363,763
4,642,267
4,350,000
4,000,000
4,000,000
4,000,000
4,000,000
3,700,000
3,244,551
%
45.394%
27.480%
3.900%
1.950%
1.642%
1.170%
0.886%
0.886%
0.821%
0.744%
0.519%
0.475%
0.411%
0.386%
0.355%
0.355%
0.355%
0.355%
0.328%
0.288%
There is no on-market buy-back currently on place in relation to the securities of the Company.
(h) On-market buy-backs
(i) Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the Australian Stock
Exchange Limited.
MATERIAL DIFFERENCE TO APPENDIX 4E
There are no material differences to the financial statements set out in this report when compared to the information set out
in the Company’s Appendix 4E preliminary final statement released to the ASX on 31 August 2020.
r
o
F
Page 57