Exhibit 99.20

 

Entity 19

 

ULI (SOUTH CHINA) LIMITED

(Incorporated in Hong Kong with limited liability)

 

Report and Condensed Financial Statements

For the ten months ended 31 October 2022

 

 
 

 

ULI (SOUTH CHINA) LIMITED

REPORTS AND CONDENSED FINANCIAL STATEMENTS

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

 

C O N T E N T S

 

  Pages
   
Independent Review Report 1 - 2
   
Condensed Statement of Profit or Loss and Other Comprehensive Income 3
   
Condensed Statement of Financial Position 4
   
Condensed Statement of Changes in Equity 5
   
Condensed Statement of Cash Flows 6
   
Notes to the Condensed Financial Statements 7 - 11
   
Appendices (For management information only)  
   
Detailed Income Statement i
   
Overhead Expenses ii

 

 
1

 

INDEPENDENT REVIEW REPORT

TO THE BOARD OF DIRECTORS OF

ULI (SOUTH CHINA) LIMITED

(Incorporated in Hong Kong with limited liability)

 

 

Introduction

 

We have reviewed the interim financial information set out on pages 3 to 11 which comprises the condensed statement of financial position of the Company as at 31 October 2022 and the related condensed statement of profit or loss and other comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the ten-month period then ended, and a summary of significant accounting policies and other explanatory notes. The preparation of a report on interim financial information to be in compliance with the relevant provisions thereof, International Accounting Standard 34 “Interim Financial Reporting” (“IAS 34”) and Hong Kong Accounting Standard 34 “Interim Financial Reporting” (“HKAS 34”) issued by the International Accounting Standards Board (“IASB”) and Hong Kong Institute of Certified Public Accountants (the “HKICPA”) respectively. The directors are responsible for the preparation and presentation of this interim financial information in accordance with IAS/HKAS 34. Our responsibility is to express a conclusion on this interim financial information based on our review and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

 

Scope of Review

 

We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the HKICPA. A review of interim financial information consists of making inquires, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

 
2

 

INDEPENDENT REVIEW REPORT

TO THE BOARD OF DIRECTORS OF

ULI (SOUTH CHINA) LIMITED

(Incorporated in Hong Kong with limited liability)

 

 

Conclusion

 

Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with IAS/HKAS 34.

 

/s/ RSM Hong Kong  
Certified Public Accountants  
29th Floor, Lee Garden Two  
28 Yun Ping Road, Causeway Bay  
Hong Kong  
   
10 February 2023  

 

 
3

 

ULI (SOUTH CHINA) LIMITED

CONDENSED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)

 

 

      Unaudited 
      Ten months ended 31 October 
   Note  2022   2021 
      USD   USD 
            
Revenue  3   41,845,709    37,937,991 
              
Freight costs      (38,814,686)   (34,540,013)
              
Gross profit      3,031,023    3,397,978 
              
Other income  4   13    93,410 
Other gains and losses - net exchange losses      (94,969)   (4,155)
Administrative expenses      (817,027)   (417,742)
Other operating expenses      (385,655)   (132,006)
              
Profit from operations      1,733,385    2,937,485 
              
Finance costs      -    (15,290)
              
Profit before taxation  5   1,733,385    2,922,195 
              
Income tax expense  6   -    - 
              
Profit for the period      1,733,385    2,922,195 
              
Other comprehensive income for the period, net of tax      -    - 
              
Total comprehensive income for the period      1,733,385    2,922,195 

 

 
4

 

ULI (SOUTH CHINA) LIMITED

CONDENSED STATEMENT OF FINANCIAL POSITION

AT 31 OCTOBER 2022

(Expressed in United States dollars)

 

 

     

Unaudited

31 October

   Audited
31 December
 
   Note  2022   2021 
      USD   USD 
            
Non-current asset             
              
Property and equipment  7   -    7 
              
Current assets             
              
Trade receivables  8   1,913,385    10,805,376 
Prepayments, deposits and other receivables      58,179    3,906,923 
Amount due from a related party  10   -    76,559 
Cash and cash equivalents      991,382    340,418 
       2,962,946    15,129,276 
Current liabilities             
              
Trade payables  9   919,531    3,135,578 
Other payables and accrued expenses      551,132    8,039,699 
Amount due to a related party  10   -    11,629 
       1,470,663    11,186,906 
Net current assets      1,492,283    3,942,370 
              
NET ASSETS      1,492,283    3,942,377 
              
Capital and reserves             
              
Share capital  11   1,282    1,282 
Reserves      1,491,001    3,941,095 
              
TOTAL EQUITY      1,492,283    3,942,377 

 

Approved by the Board of Directors on 10 February 2023 and are signed on its behalf by:

 

     
Lee Chi Tak, Richard   Lee Man Bun, Patrick
     

 

 
5

 

ULI (SOUTH CHINA) LIMITED

CONDENSED STATEMENT OF CHANGES IN EQUITY

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)

 

 

 

       Unaudited 
   Note 

Share

capital

   Retained
Profits
   Total 
      USD   USD   USD 
                
Balance at 1 January 2021      1,282    2,710,437    2,711,719 
                   
Total comprehensive income for the period      -    2,922,195    2,922,195 
                   
Dividends paid  11(b)   -    (2,710,437)   (2,710,437)
                   
At 31 October 2021      1,282    2,922,195    2,923,477 
                   
Balance 1 January 2022      1,282    3,941,095    3,942,377 
                   
Total comprehensive income for the period      -    1,733,385    1,733,385 
                   
Dividends paid  11(b)   -    (4,183,479)   (4,183,479)
                   
Balance at 31 October 2022      1,282    1,491,001    1,492,283 

 

 
6

 

ULI (SOUTH CHINA) LIMITED

CONDENSED STATEMENT OF CASH FLOWS

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)

 

 

      Unaudited 
      Ten months ended 31 October 
   Note  2022   2021 
      USD   USD 
            
CASH FLOWS FROM OPERATING ACTIVITIES             
              
Profit before taxation      1,733,385    2,922,195 
Adjustments for:             
- Finance costs      -    15,290 
- Interest income  4   (12)   (1)
- Depreciation      7    37 
              
Operating profit before changes in working capital      1,733,380    2,937,521 
              
Decrease/(increase) in trade receivables      8,891,991    (7,509,064)
Decrease/(increase) in prepayments, deposits and other receivables      3,848,744    (2,672,441)
Decrease in amount due from a related party      76,559    - 
(Decrease)/increase in trade payables      (2,216,047)   4,785,016 
(Decrease)/increase in other payables and accrued expenses      (7,488,567)   4,715,864 
Decrease in amounts due to related parties      (11,629)   (723,082)
              
Cash generated from operations      4,834,431    1,533,814 
Interest paid      -    (15,290)
              
Net cash generated from operating activities      4,834,431    1,518,524 
              
CASH FLOWS FROM INVESTING ACTIVITIES             
              
Interest received and net cash generated from investing activities  4   12    1 
              
CASH FLOWS FROM FINANCING ACTIVITIES             
              
Dividends paid and net cash used in financing activities  11(b)   (4,183,479)   (1,599,230)
              
Net increase/(decrease) in cash and cash equivalents      650,964    (80,705)
              
Cash and cash equivalents at 1 January      340,418    183,756 
              
Cash and cash equivalents at 31 October      991,382    103,051 

 

 
7

 

ULI (SOUTH CHINA) LIMITED

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)

 

 

1.BASIS OF PREPARATION

 

These condensed financial statements have been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” and Hong Kong Accounting Standard 34 “Interim Financial Reporting” issued by the International Accounting Standards Board (“IASB”) and the Hong Kong Institute of Certified Public Accountants (the “HKICPA”) respectively.

 

These condensed financial statements should be read in conjunction with the 2021 annual financial statements. The accounting policies (including the significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty) and methods of computation used in the preparation of these condensed financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2021.

 

As Hong Kong dollar (“HKD”) is pegged to United States dollar (“USD”), the management of the Company used the exchange rate of USD1: HKD7.8 for the translation of presentation currency from HKD to USD.

 

2.ADOPTION OF NEW AND REVISED INTERNATIONAL / HONG KONG FINANCIAL REPORTING STANDARDS

 

The accounting policies applied in these condensed financial statements are the same as those applied in the Company’s financial statements as at and for the year ended 31 December 2021. In the current period, the Company has adopted all the new and revised International Financial Reporting Standards and Hong Kong Financial Reporting Standards issued by IASB and the HKICPA respectively that are relevant to its operations and effective for its accounting year beginning on 1 January 2022 but they do not have a material effect on the Company’s financial statements.

 

A number of new standards and amendments to standards are effective for annual periods beginning after 1 January 2022 and earlier application is permitted. The Company has not early adopted any of the forthcoming new or amended standards in preparing these condensed interim financial statements.

 

3.REVENUE

 

The principal activities of the Company are the provision of air and ocean freight forwarding services in the People’s Republic of China.

 

Revenue represents gross invoiced freight income and recognised at a point in time for the period.

 

 
8

 

ULI (SOUTH CHINA) LIMITED

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)

 

 

4.OTHER INCOME

 

   Ten months ended 31 October 
   2022   2021 
   USD   USD 
   (Unaudited)   (Unaudited) 
         
Bank interest income   12    1 
Sundry income   1    93,409 
    13    93,410 

 

5.PROFIT BEFORE TAXATION

 

Profit before taxation is arrived at after charging:

 

      Ten months ended 31 October 
      2022   2021 
      USD   USD 
      (Unaudited)   (Unaudited) 
            
(a)  Finance costs:        
   Bank loan interest   -    1,464 
   Other loan interest   -    13,826 
       -    15,290 
              
(b)  Staff costs (including directors’ remuneration) Salaries and allowances   788,737    393,478 
              
(c)  Other item:          
   Depreciation   7    36 

 

6.INCOME TAX EXPENSE

 

No provision for Hong Kong Profits Tax or deferred taxation has been made in the financial statement since the Company’s income is derived from overseas sources which is not liable to Hong Kong Profits Tax.

 

7.PROPERTY AND EQUIPMENT

 

No property and equipment was acquired by the Company during the ten months ended 31 October 2022 (2021: USDNil).

 

 
9

 

ULI (SOUTH CHINA) LIMITED

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)

 

 

8.TRADE RECEIVABLES

 

All trade receivables are expected to be recovered within one year.

 

Trade receivables represented by:

 

   31 October   31 December 
   2022   2021 
   USD   USD 
   (Unaudited)   (Audited) 
         
- Third parties   54,105    4,446,926 
- Fellow subsidiaries   1,052,553    4,835,322 
- Related companies   806,727    1,523,128 
           
    1,913,385    10,805,376 

 

9.TRADE PAYABLES

 

Trade payables are expected to be settled within one year.

 

Trade payables represented by:

 

   31 October   31 December 
   2022   2021 
   USD   USD 
   (Unaudited)   (Audited) 
         
Trade payables          
- Third parties   60,936    1,719,296 
- Immediate holding company   19,775    32,659 
- Fellow subsidiaries   777,243    1,338,176 
- Related companies   61,577    45,447 
           
    919,531    3,135,578 

 

 
10

 

ULI (SOUTH CHINA) LIMITED

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)

 

 

10.AMOUNTS DUE FROM/(TO) RELATED PARTIES

 

   31 October   31 December 
   2022   2021 
   USD   USD 
   (Unaudited)   (Audited) 
         
Amounts due from a related party          
– member             -    76,559 
           
Amounts due to a related party          
- fellow subsidiary   -    11,629 

 

The balances with related parties are in the nature of current account, are unsecured, interest free and have no fixed terms of repayment.

 

11.CAPITAL, RESERVES AND DIVIDENDS

 

  (a)Share capital

 

   31 October 2022   31 December 2021 
  

Number of

shares

   Amount  

Number of

shares

   Amount 
      

HKD

(Unaudited)

       HKD
(Audited)
 
                 
Ordinary share, issued and fully paid   10,000    10,000    10,000    10,000 
                     
Equivalent to       USD1,282        USD1,282 

 

  (b)Dividends

 

The directors have declared the following dividends during the period:

 

   Ten months ended 31 October 
   2022   2021 
  

USD

(Unaudited)

  

USD

(Unaudited)

 
         
2021 interim dividend of USD118.23 per ordinary share declared on 5 May 2022   1,182,328    - 
2021 interim dividend of USD275.88 per ordinary share declared on 9 June 2022   2,758,768    - 
2022 interim dividend of USD24.24 per ordinary share declared on 22 August 2022   242,383    - 
2020 interim dividend of USD86.42 per ordinary share declared on 7 January 2021   -    864,208 
2020 final dividend of USD184.62 per ordinary share declared on 20 April 2021   -    1,846,229 
    4,183,479    2,710,437 

 

 
11

 

ULI (SOUTH CHINA) LIMITED

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)

 

 

12.MATERIAL RELATED PARTY TRANSACTIONS

 

During the period, the Company entered into the following material related party transactions:

 

   Ten months ended 31 October 
   2022   2021 
   USD   USD 
   (Unaudited)   (Unaudited) 
         
Immediate holding Company          
           
Administration and handling fees paid   30,128    30,128 
Corporate fee refund   -    93,409 
Corporate fee expenses paid   63,005    66,200 
Group fee paid   39,697    62,734 
           
Fellow subsidiaries          
           
Freight income received   2,070,180    2,748,663 
Freight charges paid   6,128,053    9,958,716 
Computer expenses   14,086    9,802 
Interest expense paid   -    13,826 
           
Related parties          
           
Freight income received   24,376,382    27,948,534 
Freight charges paid   20,767,666    16,803,568 

 

Balances with related parties are disclosed in the condensed statement of financial position and in notes 8, 9 and 10 to the condensed financial statements.

 

 
Appendix i

 

ULI (SOUTH CHINA) LIMITED

DETAIL INCOME STATEMENT

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)

(For Management Information Only)

 

 

13.APPROVAL OF FINANCIAL STATEMENTS

 

The interim financial statements were approved and authorised for issue by the Board of Directors on 10 February 2023.

 

   Ten months ended 31 October 
   2022   2021 
   USD   USD 
   (Unaudited)   (Unaudited) 
         
Freight income   41,845,709    37,937,991 
           
Freight costs   (38,814,686)   (34,540,013)
           
Gross profit   3,031,023    3,397,978 
           
Add: Other income          
           
Bank interest income   12    1 
Sundry income   1    93,409 
           
    13    93,410 
           
Add: Other gains and losses - net exchange losses   (94,969)   (4,155)
           
Less: Expenditure (Appendix ii)          
Administrative expenses   817,027    417,742 
Other operating expenses   385,655    132,006 
           
    1,202,682    549,748 
           
Profit from operations   1,733,385    2,937,485 
           
Less: Finance costs (Appendix ii)   -    15,290 
           
Profit before taxation   1,733,385    2,922,195 

 

 
Appendix ii

 

ULI (SOUTH CHINA) LIMITED Appendix ii

OVERHEAD EXPENSES  

FOR THE TEN MONTHS ENDED 31 OCTOBER 2022

(Expressed in United States dollars)  

(For Management Information Only)  

 

 

   Ten months ended 31 October 
   2022   2021 
   USD   USD 
   (Unaudited)   (Unaudited) 
         
Administrative expenses          
Computer expenses   14,086    9,802 
Directors’ remuneration   65,737    46,736 
Salaries and allowances   723,000    346,742 
Telephone, facsimile and internet   14,204    14,462 
           
    817,027    417,742 
Other operating expenses
Advertisement and promotion   250,373    - 
Administration and handling fees   30,128    30,128 
Auditor’s remuneration   17,778    6,346 
Bank charges   22,977    28,483 
Business registration fee   19    32 
Corporate fee expenses   63,005    66,200 
Depreciation   7    36 
Legal and professional fees   1,229    641 
Sundries   9    - 
Travel - Local   130    140 
           
    385,655    132,006 
           
    1,202,682    549,748 
Finance costs
Bank loan interest   -    1,464 
Other loan interest   -    13,826 
           
    -    15,290