11
GDS Global Limited Annual Report 2015
CASH FLOWS
SHAREHOLDERS’ RETURNS
Although the Group does not have a fixed dividend policy, it intends to recommend and distribute dividends
of not less than 30% of its net profits attributable to shareholders in each of FY2013, FY2014 and FY2015.
For FY2015, the Group declared a total dividend of 1.0 Singapore cent per ordinary share, which represented
a payout ratio of 34.1%.
UPDATE ON USE OF INITIAL PUBLIC OFFERING PROCEEDS
The Group raised net proceeds of S$1.43 million from its initial public offering in FY2013, which have
been utilised as follows as at 30 September 2015 and in accordance with the intended use as stated in the
Company’s Offer Document dated 11 April 2013:
S$’000
FY2015
FY2014
Net cash fromoperating activities
2,413
5,284
Net cash used in investing activities
(1,889)
(762)
Net cash used in financing activities
(527)
(992)
Net (decrease) increase in cash and
cash equivalents
(3)
3,530
Cash and cash equivalents at end
of the financial year
8,095
8,098
Net cash from operating activities:
In
FY2015, the Group generated net cash of
S$4.04 million from operating activities before
changes in working capital. The Group’s net
working capital outflow amounted to S$1.09
million and was mainly due to the decrease
in trade and other payables of S$1.40 million.
Thiswas partially offset by (i) adecrease in trade
and other receivables of S$0.24 million; and (ii)
a decrease in inventories of S$0.06 million.
After payment of income tax of S$0.54 million,
the net cash from operating activities in
FY2015 amounted to S$2.41 million.
Net cash used in investing activities:
Amounted to S$1.89 million and was mainly
due to (i) purchase of property, plant and
equipment of S$1.34 million; (ii) advance of
loan to a third party of S$0.50 million; and
(iii) an increase in pledged bank deposits
for bank borrowings of S$0.13 million.
Net cash used in financing activities:
Amounted to S$0.53 million and was mainly
due to payment of dividends of S$1.46
million. This was partially offset by (i) capital
contribution from non-controlling interests
in a subsidiary of S$0.28 million; and (ii) new
bank loans of S$0.65 million.
Use of Net Proceeds
Allocation of
Net Proceeds
(S$’000)
Net Proceeds
Utilised as at 30
September 2015
(S$’000)
Balance of Net
Proceeds as at 30
September 2015
(S$’000)
To acquire new machinery and equipment
600
600
-
To fund product development activities
400
197
203
Working capital and general corporate purposes
431
431
-
Total
1,431
1,228
203
Breakdown of Working Capital
S$’000
Inventories
431
