Projection of future performance (10 pages) Provide pro-forma financial statements of 10 years forecast. Logical reasoning should be provided utilizing the effects of systematic and unsystematic risks) based on market information (various methods can be utilized such as percentage of sales, assumption of market efficiency, Altman Z score, indicator, etc.). You can also perform the company stock evaluation and calculate its intrinsic value. This part is crucial in finance, so this section carries most of the marks.

Note: Company name is "HWA TAI INDUSTRIES BERHAD". Data is taken from 2015 to 2019. Here i am uploadind pictures of financial statements of 2019.

PEAR 2017 - Bursa.pdf Hwa Tai_AR2019 (BURSA).pdf POE Hwa Tai AR2015 (Bursa).pdf c File | C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 38 of 124 Q IL Page view A Read aloud Draw Highlight Erase A STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 Group 2019 RM 2018 RM 2019 RM Company 2018 RM Note 11,768,273 10,595,754 13,880,888 939,941 ASSETS Non-current assets Property, plant and equipment Prepaid land lease payments Right-of-use assets Investment in subsidiaries Investment in an associate Trade and other receivables 12,363,888 545,775 3,270,511 5 6 7 8 9 10 2,564,482 6,950,406 6,950,406 654,630 654,630 Total non-current assets 15,038,784 15,475,459 20,110,642 20,514,699 11 10 Current assets Inventories Trade and other receivables Prepayments Tax recoverable Other investment Cash, bank balances and short-term deposits 8,226,594 25,965,473 282,362 250,000 1,427 8,036,943 21,030,647 182,216 61,689 1,384 7,247,101 22,505,489 249,839 250,000 1,427 6,973,348 18,569,535 160,656 59,500 1,384 12 13 9,072,628 13,049,046 8,708,325 12,648,812 Total current assets 43,798,484 42,361,925 38,962,181 38,413,235 TOTAL ASSETS 58,837,268 57,837,384 59,072,823 58,927,934 E e D DENG 18:35 23/01/2021 5 PEAR 2017 - Bursa.pdf Hwa Tai_AR2019 (BURSA).pdf POE Hwa Tai AR2015 (Bursa).pdf File C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 0 0 42 of 124 L Page view A Read aloud Draw Highlight Erase G A STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 Group Company 2019 RM 2018 RM 2019 RM 2018 RM Note OPERATING ACTIVITIES: Loss before tax (2,472,206) (3,299,850) (2,322,195) (3,552,432) 810,958 1,806,157 769,211 9,298 1,671,244 28,907 127,499 1,791,457 797,838 (911,757) (322,638) (867,390) (78,518) (28,888) (173,958) (454,146) (44,842) (100,232) (44,842) (100,232) Adjustments for Impairment loss for - trade receivables amount owing by subsidiaries investment in subsidiaries investment in associate Reversal of impairment loss for: - trade receivables - amount owing by subsidiaries investment in associate Income on financial assets measured at amortised costs Amortisation of prepaid land lease payments Depreciation of: property, plant -right-of-use assets Income from other investment Interest Interest expenses Property, plant and equipment written off (Gain)/Loss on disposal of property, plant and equipment ...list 43,434 26,797 Deprecrtu plant and equipment 2,292,300 2,004,295 1,965,891 296,528 (43) (307,428) 992,202 (47) (420,623) 877,773 1,658,414 257,684 (43) (307,428) 963,900 (47) (420,623) 855,557 Interest income 1,954 1,954 (2,715) 65,690 600 704 (199) 65,690 is D DENG 18:36 23/01/2021 5 PEAR 2017 - Bursa.pdf Hwa Tai_AR2019 (BURSA).pdf X PDE Hwa Tai AR2015 (Bursa).pdf File C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 0 0 42 of 124 + (L Page View All Read aloud Draw Highlight Erase A A 19 (43) (307,428) 992,202 (47) (420,623) 877,773 (43) (307,428) 963,900 (47) (420,623) 855,557 1,954 1,954 Income from other investment Interest income Interest expenses Property, plant and equipment written off (Gain)/Loss on disposal of property, plant and equipment Share of results of associate Net (gain)/loss on unrealised foreign exchange (2,715) 412,909 65,690 65,690 588,784 (199) (30,719) 22,144 (30,719) 22.144 256,586 2,350,730 9,127 2,317,410 Operating cash flows before changes in working capital Changes in working capital: Inventories Receivables Prepayments Payables (189,651) (4,103,836) (100,146) 1,244,143 (393,754) 1,659,859 29,610 (2,014,266) (273,753) (3,263,127) (89,183) 14,286 (391,451) 2,154,607 26,814 (704,095) Net cash flows (used in)/ generated from operations (2,892,904) 1,632,179 (3,602,650) 3,403,285 e D ENG 18:36 23/01/2021 5 PEAR 2017 - Bursa.pdf DE Hwa Tai_AR2019 (BURSA).pdf POE Hwa Tai AR2015 (Bursa).pdf File | C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 0 0 40 of 124 L Page view AN Read aloud Draw Highlight Erase G A 19 STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 Group Company 2019 RM 2018 RM 2019 RM 2018 RM Note Revenue Cost of sales 18 19 65,352,730 (46,546,728) 64,739,149 (46,539,951) 57,073,593 (40,835,274) 57,683,579 (41,303,767) Gross profit 18,806,002 18,199,198 16,238,319 16,379,812 938,516 (11,676,589) (9,235,823) 638,997 (10,184,660) (9,003,309) 495,595 (10,305,121) (7,954,487) 654,780 (9,235,878) (8,998,284) Other income Selling and distribution expenses Administrative expenses Net reversal/(loss) on impairment on financial instruments Share of results of associate Finance costs 167,399 (1,497,305) 100,799 (412,909) (992,202) (1,483,519) (588,784) (877,773) 20 (963,900) (855,557) Loss before tax Income tax credit/(expense) 21 22 (2,472,206) 253,979 (3,299,850) (629,096) (2,322,195) 255,147 (3,552,432) (629,096) Loss for the financial year (2,218,227) (3,928,946) (2,067,048) (4,181,528) Other comprehensive income, net of tax, items that may be reclassified subsequently to profit or loss Translation reserves of foreign operation (41,237) (390,205) Total comprehensive loss for the financial year (2,259,464) (4,319,151) (2,067,048) (4,181,528) D DENG 18:36 23/01/2021 5 PEAR 2017 - Bursa.pdf Hwa Tai_AR2019 (BURSA).pdf X DE Hwa Tai AR2015 (Bursa).pdf File C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 0 0 39 of 124 L Page view A Read aloud Draw Highlight Erase G A 19 Group Company 2019 RM 2018 RM 2019 2018 RM Note RM EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital Accumulated losses Translation reserves 14 29,933,308 (7,755,478) 312,598 29,933,308 (5,534,598) 353,835 29,933,308 (2,133,691) 29,933,308 (66,643) Shareholders' equity Non-controlling interests 27,799,617 29,866,665 22,490,428 7,363 24,752,545 4,710 TOTAL EQUITY 22,497,791 24,757,255 27,799,617 29,866,665 Non-current liability Lease liabilities 7 1,211,469 547,517 1,025,754 491,890 Total non-current liability 1,211,469 547,517 1,025,754 491,890 Current liabilities Trade and other payables Contract liabilities Loans and borrowings Lease liabilities 16 17 15 7 17,451,216 2,020,844 15,226,459 429,489 16,749,997 1,477,920 14,056,489 248,206 12,667,598 2,007,195 15,226,459 346,200 12,820,571 1,476,282 14,056,489 216,037 Total current liabilities 35,128,008 32,532,612 30,247,452 28,569,379 TOTAL LIABILITIES 36,339,477 33,080,129 31,273,206 29,061,269 TOTAL EQUITY AND LIABILITIES 58,837,268 57,837,384 59,072,823 58,927,934 e D DENG 18:35 23/01/2021 5 PEAR 2017 - Bursa.pdf Hwa Tai_AR2019 (BURSA).pdf POE Hwa Tai AR2015 (Bursa).pdf c File | C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 38 of 124 Q IL Page view A Read aloud Draw Highlight Erase A STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 Group 2019 RM 2018 RM 2019 RM Company 2018 RM Note 11,768,273 10,595,754 13,880,888 939,941 ASSETS Non-current assets Property, plant and equipment Prepaid land lease payments Right-of-use assets Investment in subsidiaries Investment in an associate Trade and other receivables 12,363,888 545,775 3,270,511 5 6 7 8 9 10 2,564,482 6,950,406 6,950,406 654,630 654,630 Total non-current assets 15,038,784 15,475,459 20,110,642 20,514,699 11 10 Current assets Inventories Trade and other receivables Prepayments Tax recoverable Other investment Cash, bank balances and short-term deposits 8,226,594 25,965,473 282,362 250,000 1,427 8,036,943 21,030,647 182,216 61,689 1,384 7,247,101 22,505,489 249,839 250,000 1,427 6,973,348 18,569,535 160,656 59,500 1,384 12 13 9,072,628 13,049,046 8,708,325 12,648,812 Total current assets 43,798,484 42,361,925 38,962,181 38,413,235 TOTAL ASSETS 58,837,268 57,837,384 59,072,823 58,927,934 E e D DENG 18:35 23/01/2021 5 PEAR 2017 - Bursa.pdf Hwa Tai_AR2019 (BURSA).pdf POE Hwa Tai AR2015 (Bursa).pdf File C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 0 0 42 of 124 L Page view A Read aloud Draw Highlight Erase G A STATEMENTS OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 Group Company 2019 RM 2018 RM 2019 RM 2018 RM Note OPERATING ACTIVITIES: Loss before tax (2,472,206) (3,299,850) (2,322,195) (3,552,432) 810,958 1,806,157 769,211 9,298 1,671,244 28,907 127,499 1,791,457 797,838 (911,757) (322,638) (867,390) (78,518) (28,888) (173,958) (454,146) (44,842) (100,232) (44,842) (100,232) Adjustments for Impairment loss for - trade receivables amount owing by subsidiaries investment in subsidiaries investment in associate Reversal of impairment loss for: - trade receivables - amount owing by subsidiaries investment in associate Income on financial assets measured at amortised costs Amortisation of prepaid land lease payments Depreciation of: property, plant -right-of-use assets Income from other investment Interest Interest expenses Property, plant and equipment written off (Gain)/Loss on disposal of property, plant and equipment ...list 43,434 26,797 Deprecrtu plant and equipment 2,292,300 2,004,295 1,965,891 296,528 (43) (307,428) 992,202 (47) (420,623) 877,773 1,658,414 257,684 (43) (307,428) 963,900 (47) (420,623) 855,557 Interest income 1,954 1,954 (2,715) 65,690 600 704 (199) 65,690 is D DENG 18:36 23/01/2021 5 PEAR 2017 - Bursa.pdf Hwa Tai_AR2019 (BURSA).pdf X PDE Hwa Tai AR2015 (Bursa).pdf File C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 0 0 42 of 124 + (L Page View All Read aloud Draw Highlight Erase A A 19 (43) (307,428) 992,202 (47) (420,623) 877,773 (43) (307,428) 963,900 (47) (420,623) 855,557 1,954 1,954 Income from other investment Interest income Interest expenses Property, plant and equipment written off (Gain)/Loss on disposal of property, plant and equipment Share of results of associate Net (gain)/loss on unrealised foreign exchange (2,715) 412,909 65,690 65,690 588,784 (199) (30,719) 22,144 (30,719) 22.144 256,586 2,350,730 9,127 2,317,410 Operating cash flows before changes in working capital Changes in working capital: Inventories Receivables Prepayments Payables (189,651) (4,103,836) (100,146) 1,244,143 (393,754) 1,659,859 29,610 (2,014,266) (273,753) (3,263,127) (89,183) 14,286 (391,451) 2,154,607 26,814 (704,095) Net cash flows (used in)/ generated from operations (2,892,904) 1,632,179 (3,602,650) 3,403,285 e D ENG 18:36 23/01/2021 5 PEAR 2017 - Bursa.pdf DE Hwa Tai_AR2019 (BURSA).pdf POE Hwa Tai AR2015 (Bursa).pdf File | C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 0 0 40 of 124 L Page view AN Read aloud Draw Highlight Erase G A 19 STATEMENTS OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 Group Company 2019 RM 2018 RM 2019 RM 2018 RM Note Revenue Cost of sales 18 19 65,352,730 (46,546,728) 64,739,149 (46,539,951) 57,073,593 (40,835,274) 57,683,579 (41,303,767) Gross profit 18,806,002 18,199,198 16,238,319 16,379,812 938,516 (11,676,589) (9,235,823) 638,997 (10,184,660) (9,003,309) 495,595 (10,305,121) (7,954,487) 654,780 (9,235,878) (8,998,284) Other income Selling and distribution expenses Administrative expenses Net reversal/(loss) on impairment on financial instruments Share of results of associate Finance costs 167,399 (1,497,305) 100,799 (412,909) (992,202) (1,483,519) (588,784) (877,773) 20 (963,900) (855,557) Loss before tax Income tax credit/(expense) 21 22 (2,472,206) 253,979 (3,299,850) (629,096) (2,322,195) 255,147 (3,552,432) (629,096) Loss for the financial year (2,218,227) (3,928,946) (2,067,048) (4,181,528) Other comprehensive income, net of tax, items that may be reclassified subsequently to profit or loss Translation reserves of foreign operation (41,237) (390,205) Total comprehensive loss for the financial year (2,259,464) (4,319,151) (2,067,048) (4,181,528) D DENG 18:36 23/01/2021 5 PEAR 2017 - Bursa.pdf Hwa Tai_AR2019 (BURSA).pdf X DE Hwa Tai AR2015 (Bursa).pdf File C:/Users/haier/AppData/Local/Temp/Rar$Dla10944.27873/Hwa%20Tai_AR2019%20(BURSA).pdf : 0 0 39 of 124 L Page view A Read aloud Draw Highlight Erase G A 19 Group Company 2019 RM 2018 RM 2019 2018 RM Note RM EQUITY AND LIABILITIES Equity attributable to owners of the Company Share capital Accumulated losses Translation reserves 14 29,933,308 (7,755,478) 312,598 29,933,308 (5,534,598) 353,835 29,933,308 (2,133,691) 29,933,308 (66,643) Shareholders' equity Non-controlling interests 27,799,617 29,866,665 22,490,428 7,363 24,752,545 4,710 TOTAL EQUITY 22,497,791 24,757,255 27,799,617 29,866,665 Non-current liability Lease liabilities 7 1,211,469 547,517 1,025,754 491,890 Total non-current liability 1,211,469 547,517 1,025,754 491,890 Current liabilities Trade and other payables Contract liabilities Loans and borrowings Lease liabilities 16 17 15 7 17,451,216 2,020,844 15,226,459 429,489 16,749,997 1,477,920 14,056,489 248,206 12,667,598 2,007,195 15,226,459 346,200 12,820,571 1,476,282 14,056,489 216,037 Total current liabilities 35,128,008 32,532,612 30,247,452 28,569,379 TOTAL LIABILITIES 36,339,477 33,080,129 31,273,206 29,061,269 TOTAL EQUITY AND LIABILITIES 58,837,268 57,837,384 59,072,823 58,927,934 e D DENG 18:35 23/01/2021 5