April 20, 2021

Jetcon Corporation Limited (JETCON), for the twelve months ended December 31, 2020, reported a 39% decline in turnover for the twelve months to $629.28 million (2019: $1.03 billion), while for the fourth quarter revenues fell by 42% to $162.12 million in 2020 from $278.68 million in 2019.

Cost of sales also decreased by 38% to $548.48 million (2019: $890.25 million) and as a result gross profit decreased by 40% to $80.79 million compared to $135.67 million in 2019. Gross profit for the fourth quarter ended December 31, 2020 amounted to $4.64 million (2019: $9.97 million).

Other operating income for the year ended December 31, 2020 amounted to $1.19 million (2019: $1.14 million). As such, Total Operating Income totalled $81.98 million (2019: $136.82 million).

Total Expenses decreased by 6% to $65.12 million (2019: $69.37 million). Selling and marketing expenses decreased to $21.59 million (2019: $22.71 million), while administrative and other expenses recorded a decrease of 7%, closing at $43.54 million (2019: $46.66 million).

Depreciation amounted to $17.60 million (2019: $3.48 million) for the year which led to a loss before finance costs of $748,000 relative to profit before finance costs of $63.96 million booked last year.

Finance costs closed the period at $5.99 million when compared to $3.65 million the prior year.

Consequently, loss before taxation amounted to $6.73 million relative to profit before taxation of $60.30 million in 2019 booked last year.

There was no tax charge for the year ended December 31, 2020 (2019: nil).

As a result, net loss for the period amounted to $6.73 million relative to $60.30 million. For the fourth quarter a net loss of $12.29 million was recorded versus a profit of $14.79 million in last year.

JETCON stated that, “the loss includes increased depreciation based on the new treatment of leases that require lease cost to be booked as an asset and be subject to depreciation.”

Total comprehensive loss for the year amounted to $6.76 million (2019 comprehensive income: $60.29 million).

As such, the loss-per-share for the year amounted to $0.01 relative to an EPS of $0.10 last year. Loss per share for the quarter totalled $0.02 (2019 earnings per share: $0.025). The number of shares used in our calculation is 583,500,000. JETCON’s last traded price as at April 20, 2021, was $0.80.

Management noted that, “Moving into 2021, we are optimistic that, with the rollout of vaccinations, society and business will begin to return to normal although we continue to see greater levels of normality compared some normality compared period in 2020 when there was major interruption to businesses and social events. For the first quarter, orders for vehicles have climbed over the similar months of 2020 with sales of vehicles up on as well.”

Balance Sheet Highlights:

The company, as at December 31, 2020, recorded total assets of $649.94 million, a decrease of 5% when compared to $680.68 million recorded last year. This decrease was mainly attributable to a 12% decrease in ‘Inventories’ to $391.86 million ($444.68 million), as well as a 48% decrease in ‘Receivables’ to $45.57 million (2019: $87.15 million).

Total Stockholders’ Equity as at December 31, 2020, closed at $540.58 million (2019: $547.34 million) resulting in a book value per share of $0.93 per share compared to $0.94.

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