Century Pacific Food Inc.

Consolidated Statements of Cash Flow

Years ended December 31
Notes 2020 2019
Amount Percent Amount Percent
Cash Flows from Operating Activities
Profit before tax 5,127,831,149 417.11% 4,038,629,005 251.18%
Adjustments for:
Depreciation and amortization 12,13,15 1,106,149,015 89.98% 932,365,731 57.99%
Finance costs 17,32 261,151,374 21.24% 369,427,817 22.98%
Provision on slow moving inventories 10 83,254,371 6.77% 72,394,430 4.50%
Loss on impairment of input VAT 11 9,316,412 0.76% 5,538,547 0.34%
Retirement benefit expense 19 70,397,959 5.73% 38,685,892 2.41%
Provision on write-down 10 391,036,678 31.81% 185,817,650 11.56%
Loss (Gain) on disposal of property, plant
15 (2,503,626) -0.20% 31,630,206 1.97%
and equipment - net
Allowance for expected loss 9 9,270,257 0.75% 5,794,328 0.36%
Provisions on inventory obsolescence 24 - -
Loss on impairment of goodwill 12 - -
Share based compensation expense 28 - -
Impairment loss of trademark 34,700,000 2.82% -
Interest income 23 (35,206,519) -2.86% (8,082,061) -0.50%
Gain from sale of scrap - net 23 (107,664,525) -8.76% (15,150,463) -0.94%
Unrealized foreign exchange loss (gain) -
41,100,997 3.34% (31,083,986) -1.93%
net
Reversal of allowance for sales return 9 (3,446,268) -0.28% (48,887,970) -3.04%
Reversal of accruals 19 (107,184,824) -8.72% (125,718,029) -7.82%
Reversal of allowance of inventory 10 (373,327,170) -30.37% (192,375,933) -11.96%
Operating cash flows before working
6,504,875,280 529.12% 5,258,985,164 327.08%
capital changes
Decrease (Increase) in:
Trade and other receivables (605,209,506) -49.23% 119,292,471 7.42%
Due from related parties (19,199,975) -1.56% (138,741,763) -8.63%
Inventories (2,524,528,199) -205.35% (176,845,510) -11.00%
Biological assets (32,346,274) -2.63% 9,473,395 0.59%
Prepayments and other current assets 335,800,702 27.31% (347,649,729) -21.62%
Other non-current assets (43,657,035) -3.55% 2,683,773 0.17%
Increase (Decrease) in: 0.00%
Trade and other payables 2,955,682,590 240.42% (23,410,693) -1.46%
Due to related parties 88,515,508 7.20% 9,125,107 0.57%
Finance lease obligation - -
Exchange differences on translating
operating assets and liabilities - (17,072,597) -1.06%
Cash generated from operations 6,659,933,091 541.73% 4,695,839,618 292.06%
Contribution to the retirement fund 19 (48,612,624) -3.95% (48,612,624) -3.02%
Income tax paid (1,468,959,658) -119.49% (974,189,582) -60.59%
Interest received 35,136,001 2.86% 7,731,582 0.48%
Net cash from (used in) operating activities 5,177,496,810 421.15% 3,680,768,994 228.93%
Cash Flows from Investing Activities
Acquisitions of property, plant and
15 (1,736,384,126) -141.24% (1,774,163,199) -110.34%
equipment
Proceeds from sale of property, plant and
equipment 2,503,626 0.20% 4,250,055 0.26%
Net cash used in investing activities (1,733,880,500) -141.04% (1,769,913,144) -110.08%
Cash Flows from Financing Activities
Proceeds from borrowings 17 5,551,000,000 451.53% 4,986,000,000 310.10%
Repayments of borrowings 17 (7,537,541,907) -613.12% (5,778,491,413) -359.39%
Dividends paid 29 (1,275,213,094) -103.73% (637,606,547) -39.66%
Finance costs paid (264,635,783) -21.53% (363,634,829) -22.62%
Payment of lease liabilities 32 (295,688,307) -24.05% (185,753,933) -11.55%

Net cash from (used in) financing activities (3,822,079,090) -310.89% (1,979,486,722) -123.11%
Net Increase (Decrease) in Cash and Cash
(378,462,781) -30.78% (68,630,872) -4.27%
Equivalents
Cash and Cash Equivalents, Beginning 1,607,844,054 130.78% 1,676,474,926 104.27%

Cash and Cash Equivalents, End 8 1,229,381,273 100.00% 1,607,844,054 100.00%

See Notes to Consolidated Financial Statements.

Analysis in Operating Activities:

 In the analysis of operating activities, it can be seen that the net cash from operating activities
had an increase of 192% (421% - 229%) from 2019 to 2020. This is mostly due to a large increase
in profits in 2020 which is 417% of the net cash compared to 251% in 2019.
 Century pacific Food shows a positive cash flow from its operating activities meaning it had
more cash collected than spent on its regular recurring expenses.

Analysis in Investing Activities:

 The financing activities of Century Pacific Food shows a negative cash flow (-1,733,880,500)
which means there is a more money being used or spent for investment than the money
collected from sales of properties.
 The cash flow from investing activities shows an increase of 29.96% (140.04% - 110.08%) from
2019 to 2020. The reason for this is because the proceeds from sales of property, plant and
equipment in 2020 is lower compared to 2019.

Analysis in Financing Activities:

 The Century Pacific Food’s cash flow statement shows a bigger margin of the cash used in 2020
(-310.89%) compared to 2019 (123.11%) for its financing activities. One factor of this is the cash
used for the repayment of borrowings.
 Converge Information and Communication Technology Solutions Inc.
Statement of Cash Flows
For the years ended December 31
Notes 2020 2019
Amount Percent Amount Percent
Cash Flow From Operating Activities
Profit before income tax 5,494,599,483 49.38% 2,666,170,660 47.14%
Adjustments for:
Depreciation and amortization 14,15 2,506,787,806 22.53% 1,689,765,506 29.87%
Provisions for impairment of trade and
other receivables 3 720,474,218 6.48% 529,944,733 9.37%
Amortization of deferred contract
costs 13 826,710,561 7.43% 355,363,899 6.28%
Finance costs 10,19 531,342,360 4.78% 259,233,603 4.58%
Provision for contingencies 15 110,925,384 1.00% -
Loss on disposal of property, plant,
and equipment 16 50,887,121 0.46% -
Unrealized loss on financial asset at
FVTPL 23.1 26,489,855 0.24% -
Retirement benefit expense 14,15 23,113,325 0.21% 23,205,512 0.41%
Provision for inventory obsolescence 14 2,049,102 0.02% 27,716,510 0.49%
Dividend income 16 (600,000,000) -5.39% -
Unrealized foreign exchange (gain)
loss, net 21 (229,427,384) -2.06% 2,905,841 0.05%
Interest income on cash in banks and
cash equivalents 16 (34,204,825) -0.31% (4,136,147) -0.07%
Interest income on finance lease
receivable 16 (10,414,835) -0.09% -
Interest income on financial asset at
FVTPL 16 (2,034,258) -0.02% -
Loss on disposal of financial asset at
FVTPL 16 - 18,749,900 0.33%
Operating income before changes in
assets and liabilities 9,417,297,913 84.64% 5,568,920,017 98.45%
(Increase) decrease in assets:
Trade and other receivables (871,234,910) -7.83% (1,488,578,725) -26.32%
Due from related parties (169,789,284) -1.53% (804,482,787) -14.22%
Network materials and supplies (1,615,041,428) -14.52% (121,532,878) -2.15%
Deferred contract costs (1,760,860,845) -15.83% (817,050,840) -14.44%
Other current and non-current assets (1,287,557,872) -11.57% (286,170,631) -5.06%
Deferred input value-added tax (35,622,338) -0.32% 29,396,914 0.52%
Increase in liabilities:
Trade and other current liabilities 2,500,557,610 22.47% 675,047,840 11.93%
Subscribers' deposits 641,133,903 5.76% 477,035,507 8.43%
Due to related parties 22,370,583 0.20% 38,761,539 0.69%
Deferred revenue 387,291,020 3.48% 129,140,189 2.28%
Cash from operations 7,228,544,352 64.97% 3,400,486,145 60.12%
Interest received 34,204,825 0.31% 4,136,147 0.07%
Income taxes paid (1,250,591,473) -11.24% (733,439,196) -12.97%
Retirement benefits paid - (269,800) 0.00%
Net cash from operating activities 6,012,157,704 54.04% 2,670,913,296 47.22%
Cash Flows from Investing Activities
Acquisitions of property, plant, and
equipment 6 (14,077,996,881) -126.53% (8,345,957,471) -147.55%
Acquisitions of intangible assets 7 (672,925,662) -6.05% (510,833,564) -9.03%
Acquisition of right-of-use assets 19 (126,991,800) -1.14% -
Acquisition of investment in financial
asset at FVTPL 23.1 (104,510,000) -0.94% -
Acquisition of investment in short-term
government securities 5 (5,500,000) 0.05% -

Acquisition of investment in a subsidiary 8 - (83,000,000) -1.47%

Net cash used in investing activities (14,987,924,343) -134.71% (8,939,791,035) -158.05%
Cash Flow from Financing Activities
Proceeds from initial public offering 12 8,078,111,008 72.60% -
Proceeds from issuance of convertible
preferred shares 12 4,567,949,670 41.06% 7,056,450,000 124.75%
Payment of share issuance costs 12 (116,408,818) -1.05% (208,440,000) -3.69%
Proceeds from loans payable 10 5,462,196,429 49.09% 6,788,971,272 120.02%
Payments of loans payable 10 (2,098,250,000) -18.86% (1,563,769,559) -27.65%
Interest paid on loans payable 10 (568,800,064) -5.11% (272,564,640) -4.82%
Payment of dividends 12 (635,313,051) -5.71% (134,897,402) -2.38%
Payments of lease liabilities 19 (203,141,626) -1.83% (131,846,263) -2.33%
Interest paid on lease liabilities 19 (102,204,948) -0.92% (21,260,867) -0.38%
Net cash from financing activities 14,384,138,600 129.28% 11,512,642,541 203.53%
Net increase in cash and cash
equivalents 5,408,371,961 48.61% 5,243,764,802 92.71%
Cash and cash equivalents, beginning 5,656,393,947 50.84% 434,767,213 7.69%
Effects of exchange rate changes in cash
and cash equivalents 61,407,243 0.55% (22,138,068) -0.39%
Cash and cash equivalents, ending 2 11,126,173,151 100.00% 5,656,393,947 100.00%

Analysis on Operating Activities:

 Converge Information and Communication Technology Solutions Inc. shows a small margin in
net cash flows from operating activities in 2020 on which the amount is equal to 54.04% of the
total cash flow compared to 47.22% in 2019. This is because even there is big difference in
amount, since there are many cash outflows from unrealized income in 2020, the percentage
lowered in 2020 resulting to this small margin.

Analysis on Investing Activities:

 Converge ICT Solutions presents a negative cash flow both in 2020 (-14,987,924343) and in 2019
(-8,939,781,035). You can see that the amount cash used in investing in 2020 is significantly
bigger than in 2019. This means that the company has enough cash now to purchase property,
plant and equipment and other type of investments.
Analysis on Financing Activities:
 Converge ICT Solutions presents a positive cash flow in financing activities both in 2019
(11,512,642,541) and in 2020 (14,384,138,600). This is due to the cash inflow from the issuance
of preferred shares. 2019 (203.53%) also has almost double of the percentage in 2020
(129.28%). This is because the percentage of the cash inflow coming from the company’s loans
relative to the total cash flow is also higher compared to the company’s loans in 2020.

Difference in the Cash Flow Analysis of Century Pacific Food and Converge ICT Solutions