SNOWFIT GROUP BERHAD

(Registration No. 202101026487 (1426787-K))

(Incorporated in Malaysia)

FINANCIAL STATEMENTS FOR THE HALF-YEAR

ENDED 31 MAY 2022

CHARACTERISTICS OF THE LEAP MARKET OF BURSA MALAYSIA SECURITIES BERHAD (“BURSA

SECURITIES”)

THE LEAP MARKET HAS BEEN POSITIONED AS A MARKET DESIGNED TO ACCOMMODATE

CORPORATIONS TO WHICH A HIGHER INVESTMENT RISK MAY BE ATTACHED THAN OTHER
CORPORATIONS LISTED ON THE ACE MARKET OR MAIN MARKET OF BURSA SECURITIES. IT IS A
QUALIFIED MARKET WHICH IS MEANT MAINLY FOR SOPHISTICATED INVESTORS ONLY. ONLY
EXISTING SECURITIES HOLDERS AND SOPHISTICATED INVESTORS ARE ALLOWED TO PARTICIPATE
IN CORPORATE EXERCISES UNDERTAKEN BY SNOWFIT GROUP BERHAD (“SNOWFIT” OR THE
“COMPANY”). SOPHISTICATED INVESTORS SHOULD BE AWARE OF THE POTENTIAL RISKS OF
INVESTING IN SUCH CORPORATIONS AND SHOULD MAKE THE DECISION TO INVEST ONLY AFTER
DUE AND CAREFUL CONSIDERATION.
SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY

2022(1)

As at 31/5/2022 As at 31/5/2021
Unaudited Audited(2)
RM’000 RM’000

ASSETS

Non-current assets
Property, plant and equipment 4,299 N/A
Right-of-use assets 2,204 N/A
Goodwill 255 N/A
Total non-current assets 6,758 N/A

Current assets
Inventories 2,336 N/A
Trade receivables 50 N/A
Other receivables 110 N/A
Cash and bank balances 2,783 N/A
Income tax recoverable 38 N/A
Total current assets 5,317 N/A

Total assets 12,075 N/A

LIABILITIES AND EQUITY

Equity
Share capital 2,732 N/A
Retained earnings 2,466 N/A
Total equity 5,198 N/A

Non-current liabilities
Bank borrowings 2,258 N/A
Finance lease liabilities 843 N/A
Lease liabilities 2,154 N/A
Deferred tax liability 88 N/A
Total non-current liabilities 5,343 N/A

Current liabilities
Trade payables 215 N/A
Other payables 322
Bank borrowings 997 N/A
Finance lease liabilities - N/A
Lease liabilities - N/A
Total current liabilities 1,534 N/A

Total liabilities and equity 12,075 N/A

Net assets per share (sen)(3) 2.46 N/A

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

Notes:

(1) The basis of preparation of the Unaudited Condensed Consolidated Statement of Financial Position are detailed in
Note A1 and should be read in conjunction with the Audited Combined Financial Statements as disclosed in the
Information Memorandum of the Company dated 20 April 2022 and the accompanying explanatory notes attached to
this interim financial report.

(2) There are no comparative figures for the preceding year available as Snowfit was incorporated on 12 August 2021.

(3) Net assets per share is calculated based on the Company's number of issued ordinary shares of 211,100,002
ordinary shares as at 31 May 2022.

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER

COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED (“FYE”) 31 MAY 2022 (1)

Individual 6 months ended Cumulative 12 months ended

31/5/2022 31/5/2021(2) 31/5/2022 31/5/2021(2)
RM’000 RM’000 RM’000 RM’000

Revenue 13,801 N/A 13,801 N/A

Cost of sales (8,296) N/A (8,296) N/A
Gross profit 5,505 N/A 5,505 N/A
Other income - N/A - N/A
Administrative expenses (4,824) N/A (4,824) N/A
Other operating expenses (236) N/A (236) N/A
Profit from operation 445 N/A 445 N/A
Finance costs (126) N/A (126) N/A
Profit before tax 319 N/A 319 N/A
Income tax (63) N/A (63) N/A
Profit for the financial 256 N/A 256 N/A
period/year

Profit for the financial

period/year attributable to
owners of the company 256 N/A 256 N/A

Total comprehensive profit

attributable to owners of the
company 256 N/A 256 N/A

Earnings per share (“EPS”)

(sen):
- Basic and diluted(3) 0.29 N/A 0.29 N/A

Notes:

(1) The basis of preparation of the Unaudited Condensed Consolidated Statement of Comprehensive Income are
detailed in Note A1 and should be read in conjunction with the Audited Combined Financial Statements as disclosed
in the Information Memorandum of the Company dated 20 April 2022 and the accompanying explanatory notes
attached to this interim financial report.

(2) There are no comparative figures for the preceding year and preceding period presented as this is the first interim
report on consolidated results for the current 6-month financial period ended 31 May 2022 announced in compliance
with the Listing Requirements of Bursa Securities (“Listing Requirements”).

(3) EPS is calculated based on the Company's weighted average number of issued shares of 87,621,097 for the financial
period/year. Diluted EPS is the same as the basic EPS as there were no potential dilutive instruments.

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE FYE 31 MAY 2022(1)

Non-distributable Distributable

Share capital Retained earnings Total

RM’000 RM’000 RM’000

(2)
Balance at 12 August 2021 - -

Total comprehensive profit for the year

Acquisition of subsidiaries 200 2,210 2,410
Profit for the year - 256 256
Total 200 2,466 2,666

Transaction with owners, recognised directly in equity

Issuance of ordinary shares 2,532 - 2,532
Total 2,532 - 2,532

Balance at 31 May 2022 2,732 2,466 5,198

Notes:

(1) The basis of preparation of the Unaudited Condensed Consolidated Statement of Changes in Equity are detailed in Note A1 and should be read in conjunction with the Audited
Combined Financial Statements as disclosed in the Information Memorandum of the Company dated 20 April 2022 and the accompanying explanatory notes attached to this interim
financial report.

(2) Snowfit was incorporated on 12 August 2021 with RM2.00 issued share capital comprising of 2 shares.

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE FYE 31 MAY
2022(1)(2)

12 months ended
31/5/2022 31/5/2021
RM’000 RM’000

Cash Flows From Operating Activities

Profit before income tax 319 N/A
Adjustments for:
Depreciation of property, plant and equipment 190 N/A
Depreciation of right-of-use assets 6 N/A
Interest expenses 113 N/A
Interest expenses on lease liabilities 13 N/A
Loss on foreign exchange 29 N/A
Bank charges 9 N/A
Operating profit before movement in working capital 679 N/A

Changes in working capital

Decrease in trade and other receivables 55 N/A
Decrease in inventories 3,280 N/A
Decrease in trade and other payables (6,731) N/A
Interest paid (60) N/A
Tax paid (373) N/A
Net cash used in operating activities (3,150) N/A

Cash Flows From Investing Activities

Purchase of property, plant and equipment (169) N/A
Placement of fixed deposit (600) N/A
Net cash used in investing activities (769) N/A

Cash Flows From Financing Activities

Interest paid (62) N/A
Issuance of shares 2,532 N/A
Repayment of bank borrowings (68) N/A
Drawdown of finance lease liabilities 139 N/A
Repayments of finance lease payables (66) N/A
Repayment of lease liabilities (70) N/A
Net cash from financing activities 2,405 N/A

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 31 MAY 2022(1)(2)
(CONT’D)

12 months ended
31/05/2022 31/05/2021
RM’000 RM’000

Net decrease in cash and cash equivalents (1,514) N/A

Cash and cash equivalents at beginning of the year/period 2,854 N/A

Effect of foreign exchange rate changes on the balance of - N/A
cash held in foreign currencies
Cash and cash equivalents at end of the financial year 1,340(3) N/A

Cash and cash equivalents at the end of the financial year

comprises:
Cash and bank balances 2,783 N/A
Less: Bank overdraft (843) N/A
Total cash and cash equivalents 1,940 N/A
Less: Fixed deposits pledged to licensed banks (600) N/A
1,340 N/A

Notes:

(1) The basis of preparation of the Unaudited Condensed Consolidated Statement of Cash Flows are detailed in Note
A1 and should be read in conjunction with the Audited Combined Financial Statements as disclosed in the Information
Memorandum of the Company dated 20 April 2022 and the accompanying explanatory notes attached to this interim
financial report.

(2) There are no comparative figures for the preceding year as this is the first interim financial report on consolidated
results for the current 6-month financial period ended 31 May 2022 announced in compliance with the Listing
Requirements.

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

A EXPLANATORY NOTES TO THE INTERIM FINANCIAL FOR THE HALF-YEAR ENDED 31 MAY 2022

A1. BASIS OF PREPARATION

Snowfit was incorporated in Malaysia under the Companies Act 2016 on 12 August 2021 as a public
limited company.

During the current 6-month financial period ended 31 May 2022, the Company had completed the
acquisition of the entire equity interest in Snowfit Malaysia for a purchase consideration of RM1,900,000.
On 21 June 2022, the Company’s entire issued share capital of RM4,432,002 comprising 211,100,002
shares were listed on the LEAP Market of Bursa Securities.

The interim financial statements of Snowfit and its subsidiary (the “Group”) are unaudited and have been
prepared in accordance with the Malaysian Financial Reporting Standards (“MFRS”) 134: Interim
Financial Reporting.

This is the first interim financial report on the consolidated results for the current 6-month financial period
ended 31 May 2022 announced by the Company in compliance with the Listing Requirements and as
such, there are no comparative figures for the preceding year and preceding period available as no interim
financial report was prepared for the comparative financial period concerned.

The interim financial report should be read in conjunction with the Audited Combined Financial
Statements as disclosed in the Information Memorandum of the Company dated 20 April 2022 and the
accompanying explanatory notes attached to this interim financial report.

A2. CHANGES IN ACCOUNTING POLICIES

The significant accounting policies and methods of computation adopted by the Group in this interim
financial report are consistent with those adopted in the Audited Combined Financial Statements as
disclosed in the Information Memorandum of the Company dated 20 April 2022, except for the following:

MFRSs (Including the consequential amendments) Effective date

Amendments to MFRS 1, First-time Adoption of Malaysian Financial 1 January 2022
Reporting Standards (Annual Improvements to MFRSs 2018 - 2020 Cycle)
Amendments to MFRS 3, Business Combination - Reference to the 1 January 2022
Conceptual Framework
Amendments to MFRS 9, Financial Instruments (Annual Improvements to 1 January 2022
MFRSs 2018 - 2020 Cycle)
Amendments to MFRS 116, Property, Plant and Equipment - Proceeds 1 January 2022
before Intended Use
Amendments to MFRS 137, Provisions, Contingent Liabilities and 1 January 2022
Contingent Assets - Onerous Contracts - Cost of Fulfilling a Contract
Amendments to MFRS 141, Agriculture (Annual Improvements to MFRSs 1 January 2022
2018 - 2020 Cycle)
MFRS 17, Insurance Contracts 1 January 2023
Amendments to MFRS 17, Insurance Contracts 1 January 2023
Amendments to MFRS 108, Accounting Policies, Changes in Accounting 1 January 2023
Estimates and Errors — Definition of Accounting Estimates
Amendments to MFRS 101, Presentation of Financial Statements — 1 January 2023
Disclosure of Accounting Policies
Amendments to MFRS 10 and MFRS 128, Consolidated Financial Deferred until further
Statements and Investments in Associates and Joint Ventures - Sale or notice
Contribution of Assets between an Investor and its Associate or Joint
Venture

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

A EXPLANATORY NOTES TO THE INTERIM FINANCIAL FOR THE HALF-YEAR ENDED 31 MAY 2022
(CONT’D)

A3. SEASONAL AND CYCLICAL FACTORS

The Group did not experience any material seasonality or cyclical effects in sales for the current 6-month
financial period and financial year under review.

A4. UNUSUAL ITEMS AFFECTING ASSETS, LIABILITIES, EQUITY, NET INCOME OR CASH FLOWS

There were no material unusual items affecting assets, liabilities, equity, net income or cash flows of the
Group during the current 6-month financial period and financial year under review.

A5. MATERIAL CHANGES IN ESTIMATES

There were no material changes in estimates in the current financial period and financial year under
review.

A6. DEBT AND EQUITY SECURITIES

Save as disclosed below, there was no issuance, cancellation, repurchase, resale and repayment of debt
and equity securities for the current financial period and financial year:

(i) Snowfit had on 13 December 2021 entered into a share sale agreement to acquire the entire equity
interest in Snowfit Malaysia comprising 200,000 shares, which was satisfied via the issuance of
190,000,000 new shares in Snowfit to the shareholders of Snowfit Malaysia (“Acquisition”). The
Acquisition was completed on 31 December 2021.

A7. SEGMENTAL INFORMATION

The Group’s revenue based on product segments is presented as follows:

Individual 6 months ended Cumulative 12 months ended

31/5/2022 31/5/2021 31/5/2022 31/5/2021
RM’000 % RM’000 % RM’000 % RM’000 %
Massage and wellness 13,687 99.2 N/A N/A 13,687 99.2 N/A N/A
equipment

Musical instruments and 114 0.8 N/A N/A 114 0.8 N/A N/A
accessories
Total 13,801 100.0 N/A N/A 13,801 100.0 N/A N/A

Note:

Comparative figures for the preceding year and preceding period are not presented as this is the first interim financial
report on the consolidated results for the current 6-month financial period ended 31 May 2022 being announced by
the Company in compliance with the Listing Requirements.

A8. MATERIAL EVENTS SUBSEQUENT TO THE END OF THE CURRENT FINANCIAL PERIOD

There were no material events subsequent to the end of the current 6-month financial period that have
not been reflected in this interim financial report.

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

A EXPLANATORY NOTES TO THE INTERIM FINANCIAL FOR THE HALF-YEAR ENDED 31 MAY 2022
(CONT’D)

A9. CHANGES IN THE COMPOSITION OF THE GROUP

Save as disclosed below, there were no changes in the composition of the Group for the current 6-month
financial period under review:

During the current 6-month financial period under review, the Company had completed the acquisition of
Snowfit Malaysia as explained in Note A1 above.

A10. CONTINGENT ASSETS AND CONTINGENT LIABILITIES

There were no contingent assets and contingent liabilities as at the date of this interim financial report.

A11. CAPITAL COMMITMENTS

There were no material capital commitments in respect of property, plant and equipment as at 31 May
2022.

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

B ADDITIONAL INFORMAITON REQUIED UNDER THE LISTING REQUIREMENTS

B1. REVIEW OF PERFORMANCE

For the current 6-month financial period ended 31 May 2022, the Group achieved revenue of RM13.8
million. The Group’s revenue was derived from the designing, marketing and retailing of massage and
wellness equipment, and musical instruments and accessories, which contributed RM13.7 million and
RM0.1 million respectively. The Group recorded a profit before tax of RM0.3 million for the current 6-
month financial period ended 31 May 2022 after listing expenses of RM0.3 million was charged to the
consolidated statement of profit and loss and other comprehensive income.

B2. COMMENTARY ON PROSPECTS

As disclosed in the Company’s Information Memorandum dated 20 April 2022, the Group has in place
the following future plan and strategy to further expand its business:

(i) Strengthen its presence in the massage and wellness equipment industry in Malaysia

As the Group has increasingly been receiving enquiries from potential customers based in the
Northern region of Peninsular Malaysia, the Group had set up an additional showroom located in
Perak and had commenced operations on 23 July 2022. In addition, the Group is currently in the
midst of setting up another showroom located in Penang, of which the renovations are expected to
be completed in August 2022 and operations to commence within a month thereafter. The Group
is confident that the additional showrooms located in Perak and Penang will allow the Group to
reach out to the market in the Northern region of Peninsular Malaysia, allowing potential customers
in the region to try and experience its massage and wellness equipment, which in turn will allow
the Group to generate higher revenue for the financial year ending 31 May 2023.

Barring any unforeseen circumstances, the Board of Directors of the Company (“Board”) is of the opinion
that the prospects of the Group’s financial performance for the financial year ending 31 May 2023 will
remain favourable.

B3. VARIANCE OF ACTUAL PROFIT FROM PROFIT FORECAST AND PROFIT GUARANTEE

The Group has not issued any profit forecast or profit guarantee in any form of public documentation and
announcement.

B4. STATUS OF CORPORATE PROPOSALS

There were no other corporate proposals announced as at the date of this report.

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SNOWFIT GROUP BERHAD
(Registration No. 202101026487 (1426787-K))

B5. MATERIAL LITIGATION

There were no material litigations pending as at the date of this announcement.

B6. DIVIDENDS

The Board had on 21 July 2022, declared a first interim single tier dividend of 0.17 sen per share for the
FYE 31 May 2022, which will be paid on 15 August 2022 to all holders of shares whose names appear in
the Record of Depositors at the close of business on 4 August 2022.

B7. EPS

The basic and diluted EPS for the current financial period and financial year are computed as follows:

Individual 6 months ended Cumulative 12 months ended

31/5/2022 31/5/2021 31/5/2022 31/5/2021
RM’000 RM’000 RM’000 RM’000

Profit attributable to owners of 256 N/A 256 N/A

the Company
Weighted average number of 87,621 N/A 87,621 N/A
ordinary shares in issue
Basic and diluted EPS (sen) 0.29 N/A 0.29 N/A

Comparative figures for the preceding year and preceding period are not presented as this is the first
interim financial report on the consolidated results for the current 6-month financial period ended 31 May
2022 being announced by the Company in compliance with the Listing Requirements.

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