LBC Express Inc

STATEMENTS OF FINANCIAL POSITIONS

Years Ended 11/30/2022
2,019 2,018
ASSETS

Current Assets
Cash and cash equivalents (notes 4, 21, 22) 1,549,415,988 2,046,775,860
Trade and other receivables (notes 4, 21, 22) 1,566,337,972 2,179,880,291
Due from Related parties (Notes 15, 21, 22) 1,016,921,950 552,804,965
Investment at fair value through profit or loss (Notes 9, 21, 22) 1,031,525 110,415,650
Prepaymets and other current assets (Notes 22, 6, 15, 22) 491,469,096 399,556,949
Total Curret Assets 4,625,176,531 5,289,433,715

Non Current Assets

Property and equipment (Notes 2, 7) 2,096,114,675 1,271,901,255
Right of use assets (notes 2, 19) 1,731,919,463 -
Intangible assets (note 8) 326,250,509 357,151,998
Investment at fair value through other comprehensive income
(notes 9, 21, 22) 312,096,118 360,861,137
Deferred tax asset - net (Notes 2, 18) 241,985,865 180,844,432
Security Deposits (Notes 15, 19, 22) 183,331,505 76,428,317
Investment in subsidiaries (Note 10) 124,680,083 124,680,083
Advances for future investment in shares (Note 15) 78,727,321 -
Other noncurrent assets 117,660,532 124,335,123
Total Noncurrent Assets 5,212,766,071 2,496,202,345
9,837,942,602 7,785,636,060

LIABILITIES AND EQUITY

Current Liabilities
Accounts and other payables (Notes 2, 7, 11, 15, 21, 22) 3,042,781,567 2,256,366,277
Due to related parties (Notes 2, 15, 21, 22) 251,911,834 8,228,088
Dividends payable (Notes 14, 15, 21, 22) 708,002,743 1,582,594,366
Transmissions liability (Notes 12, 15, 21, 22) 545,899,819 626,511,643
Current portion of notes payable (Notes 13, 21, 22) 376,666,667 297,000,000
Current portion of lease liabilities (Notes 2, 19, 15, 21, 22) 566,369,204 20,271,292
Income tax payable 2,238,654 104,167,791
Total Current Liabilities 5,493,870,488 4,895,139,457

Noncurrent Liabilities
Notes payable - net of current portion (Notes 13, 21, 22) 565,694,444 543,750,000
Retirement benefit liability (Note 20) 333,568,187 307,879,378
Lease liabilities - net of current portion (Notes 2, 19, 15, 21, 22) 1,265,191,898 79,852,874
Other noncurrent liabilities (Notes 8, 15, 21, 22) 346,703,504 79,986,182
Total Noncurrent Liabilities 2,511,158,033 1,011,468,434
8,005,028,521 5,906,607,891

Equity (Note 14)

Capital stock 1,041,180,504 1,041,180,504
Retained earnings (Note 2) 780,087,539 753,756,055
Accummulated comprehensive income 11,646,038 84,091,610
Total Equity 1,832,914,081 1,879,028,169
9,837,942,602 7,785,636,060
LCB EXPRESS, INC
STATEMENTS OF COMPREHENSIVE INCOME
Years Ended 11/30/2022
2,019 2,018

SERVICE REVENUE (Note 23) 11,714,563,559 11,198,685,941

COST OF SERVICES (Note 16) 8,323,235,054 7,760,576,274

GROSS PROFIT 3,391,328,505 3,438,109,667

OPERATING EXPENSES (Note 17) 2,223,861,683 2,141,972,122

OPERATING INCOME 1,167,466,822 1,296,137,545

OTHER INCOME (CHARGES)

Dividend Income (Notes 10, 15) 118,988,901 368,579,963
Foreign exchange gains - net (Notes 17 and 21) 47,457,591 77,073,456
Interest income (Notes 4 and 5) 9,697,414 9,251,662
Interest expence (Notes 7, 8, 13, 15, 19) -196,356,311 -62,241,624
Others - net (Notes 9, 15) 63,198,868 47,655,545
42,986,463 440,319,002

INCOME BEFORE TAX 1,210,453,285 1,736,456,547

PROVISION FOR INCOME TAX (Note 18) 342,948,171 405,129,603

NET INCOME 867,505,114 1,331,326,944

OTHER COMPREHENSIVE INCOME (LOSS)

Items not to be reclassified to profit or loss in

subsequent periods
Remeasurement gain (loss) on retirement benefit plan
- net of tax (Notes 14, 20) -14,996,301 18,835,639
Unrealized fair value (loss) on investment at fair value
through other comprehensive income (Note 9) -48,765,019 -111,184,242

Items that may be reclassified to profit or loss in

subsequent periods
Currency translation gain (loss) - net -8,684,252 6,421,001
-72,445,572 -85,927,602

TOTAL COMPREHENSIVE INCOME 795,059,542 1,245,399,342

LBC Express Inc
STATEMENTS OF FINANCIAL POSITIONS

2,019 2,018
ASSETS Amount Percent Amount Percent
(%) (%)
Current Assets
Cash and cash equivalents (notes 4, 21, 22) 1,549,415,988 15.7 2,046,775,860 26.3
Trade and other receivables (notes 4, 21, 22) 1,566,337,972 15.9 2,179,880,291 28.0
Due from Related parties (Notes 15, 21, 22) 1,016,921,950 10.3 552,804,965 7.1
Investment at fair value through profit or loss (Notes 9, 21, 22) 1,031,525 0.0 110,415,650 1.4
Prepayments and other current assets (Notes 22, 6, 15, 22) 491,469,096 5.0 399,556,949 5.1
Total Current Assets 4,625,176,531 47.0 5,289,433,715 67.9

Non Current Assets

Property and equipment (Notes 2, 7) 2,096,114,675 21.3 1,271,901,255 16.3
Right of use assets (notes 2, 19) 1,731,919,463 17.6 -
Intangible assets (note 8) 326,250,509 3.3 357,151,998 4.6
Investment at fair value through other comprehensive income
(notes 9, 21, 22) 312,096,118 3.2 360,861,137 4.6
Deferred tax asset - net (Notes 2, 18) 241,985,865 2.5 180,844,432 2.3
Security Deposits (Notes 15, 19, 22) 183,331,505 1.9 76,428,317 1.0
Investment in subsidiaries (Note 10) 124,680,083 1.3 124,680,083 1.6
Advances for future investment in shares (Note 15) 78,727,321 0.8 -
Other noncurrent assets 117,660,532 1.2 124,335,123 1.6
Total Noncurrent Assets 5,212,766,071 53.0 2,496,202,345 32.1
9,837,942,602 100.0 7,785,636,060 100

LIABILITIES AND EQUITY

Current Liabilities
Accounts and other payables (Notes 2, 7, 11, 15, 21, 22) 3,042,781,567 30.9 2,256,366,277 29.0
Due to related parties (Notes 2, 15, 21, 22) 251,911,834 2.6 8,228,088 0.1
Dividends payable (Notes 14, 15, 21, 22) 708,002,743 7.2 1,582,594,366 20.3
Transmissions liability (Notes 12, 15, 21, 22) 545,899,819 5.5 626,511,643 8.0
Current portion of notes payable (Notes 13, 21, 22) 376,666,667 3.8 297,000,000 3.8
Current portion of lease liabilities (Notes 2, 19, 15, 21, 22) 566,369,204 5.8 20,271,292 0.3
Income tax payable 2,238,654 0.02 104,167,791 1.3
Total Current Liabilities 5,493,870,488 55.8 4,895,139,457 62.9

Noncurrent Liabilities
Notes payable - net of current portion (Notes 13, 21, 22) 565,694,444 5.8 543,750,000 7.0
Retirement benefit liability (Note 20) 333,568,187 3.4 307,879,378 4.0
Lease liabilities - net of current portion (Notes 2, 19, 15, 21, 22) 1,265,191,898 12.9 79,852,874 1.0
Other noncurrent liabilities (Notes 8, 15, 21, 22) 346,703,504 3.5 79,986,182 1.0
Total Noncurrent Liabilities 2,511,158,033 25.5 1,011,468,434 13.0
8,005,028,521 81.4 5,906,607,891 75.9

Equity (Note 14)

Capital stock 1,041,180,504 10.6 1,041,180,504 13.4
Retained earnings (Note 2) 780,087,539 7.9 753,756,055 9.7
Accummulated comprehensive income 11,646,038 0.1 84,091,610 1.1
Total Equity 1,832,914,081 18.6 1,879,028,169 24.1
9,837,942,602 100.0 7,785,636,060 100
LCB EXPRESS, INC
STATEMENTS OF COMPREHENSIVE INCOME

2,019 2,018

Amount Percent (%) Amount Percent (%)

SERVICE REVENUE (Note 23) 11,714,563,559 100 11,198,685,941 100.0

COST OF SERVICES (Note 16) 8,323,235,054 71.1 7,760,576,274 69.3

GROSS PROFIT 3,391,328,505 28.9 3,438,109,667 30.7

OPERATING EXPENSES (Note 17) 2,223,861,683 19.0 2,141,972,122 19.1

OPERATING INCOME 1,167,466,822 10.0 1,296,137,545 11.6

OTHER INCOME (CHARGES)

Dividend Income (Notes 10, 15) 118,988,901 1.0 368,579,963 3.3
Foreign exchange gains - net (Notes 17 and 21) 47,457,591 0.4 77,073,456 0.7
Interest income (Notes 4 and 5) 9,697,414 0.1 9,251,662 0.1
Interest expense (Notes 7, 8, 13, 15, 19) -196,356,311 -1.7 -62,241,624 -0.6
Others - net (Notes 9, 15) 63,198,868 0.5 47,655,545 0.4
42,986,463 0.4 440,319,002 3.9

INCOME BEFORE TAX 1,210,453,285 10.3 1,736,456,547 15.5

PROVISION FOR INCOME TAX (Note 18) 342,948,171 2.9 405,129,603 3.6

NET INCOME 867,505,114 7.4 1,331,326,944 11.9

OTHER COMPREHENSIVE INCOME (LOSS)

Items not to be reclassified to profit or loss in

subsequent periods
Remeasurement gain (loss) on retirement benefit plan
- net of tax (Notes 14, 20) -14,996,301 -0.1 18,835,639 0.2
Unrealized fair value (loss) on investment at fair value
through other comprehensive income (Note 9) -48,765,019 -0.4 -111,184,242 -1.0
Items that may be reclassified to profit or loss in
subsequent periods
Currency translation gain (loss) - net -8,684,252 -0.1 6,421,001 0.1
-72,445,572 -0.6 -85,927,602 -0.8

TOTAL COMPREHENSIVE INCOME 795,059,542 6.8 1,245,399,342 11.1

LBC Express Inc
STATEMENTS OF FINANCIAL POSITIONS
Years Ended 11/30/2022 Increase or Decrease
2,019 2,018 Amount Percent
ASSETS %

Current Assets
Cash and cash equivalents (notes 4, 21, 22) 1,549,415,988 2,046,775,860 -497,359,872 -24.3
Trade and other receivables (notes 4, 21, 22) 1,566,337,972 2,179,880,291 -613,542,319 -28.1
Due from Related parties (Notes 15, 21, 22) 1,016,921,950 552,804,965 464,116,985 84.0
Investment at fair value through profit or loss (Notes 9, 21, 22) 1,031,525 110,415,650 -109,384,125 -99.1
Prepaymets and other current assets (Notes 22, 6, 15, 22) 491,469,096 399,556,949 91,912,147 23.0
Total Current Assets 4,625,176,531 5,289,433,715 -664,257,184 -12.6

Non Current Assets

Property and equipment (Notes 2, 7) 2,096,114,675 1,271,901,255 824,213,420 64.8
Right of use assets (notes 2, 19) 1,731,919,463 - - -
Intangible assets (note 8) 326,250,509 357,151,998 -30,901,489 -8.7
Investment at fair value through other comprehensive income
(notes 9, 21, 22) 312,096,118 360,861,137 -48,765,019 -13.5
Deferred tax asset - net (Notes 2, 18) 241,985,865 180,844,432 61,141,433 33.8
Security Deposits (Notes 15, 19, 22) 183,331,505 76,428,317 106,903,188 139.9
Investment in subsidiaries (Note 10) 124,680,083 124,680,083 0 0.0
Advances for future investment in shares (Note 15) 78,727,321 - - -
Other noncurrent assets 117,660,532 124,335,123 -6,674,591 -5.4
Total Noncurrent Assets 5,212,766,071 2,496,202,345 2,716,563,726 108.8
9,837,942,602 7,785,636,060 2,052,306,542 26.4

LIABILITIES AND EQUITY

Current Liabilities
Accounts and other payables (Notes 2, 7, 11, 15, 21, 22) 3,042,781,567 2,256,366,277 786,415,290 34.9
Due to related parties (Notes 2, 15, 21, 22) 251,911,834 8,228,088 243,683,746 2961.6
Dividends payable (Notes 14, 15, 21, 22) 708,002,743 1,582,594,366 -874,591,623 -55.3
Transmissions liability (Notes 12, 15, 21, 22) 545,899,819 626,511,643 -80,611,824 -12.9
Current portion of notes payable (Notes 13, 21, 22) 376,666,667 297,000,000 79,666,667 26.8
Current portion of lease liabilities (Notes 2, 19, 15, 21, 22) 566,369,204 20,271,292 546,097,912 2693.9
Income tax payable 2,238,654 104,167,791 -101,929,137 -97.9
Total Current Liabilities 5,493,870,488 4,895,139,457 598,731,031 12.2

Noncurrent Liabilities
Notes payable - net of current portion (Notes 13, 21, 22) 565,694,444 543,750,000 21,944,444 4.0
Retirement benefit liability (Note 20) 333,568,187 307,879,378 25,688,809 8.3
Lease liabilities - net of current portion (Notes 2, 19, 15, 21, 22) 1,265,191,898 79,852,874 1,185,339,024 1484.4
Other noncurrent liabilities (Notes 8, 15, 21, 22) 346,703,504 79,986,182 266,717,322 333.5
Total Noncurrent Liabilities 2,511,158,033 1,011,468,434 1,499,689,599 148.3
8,005,028,521 5,906,607,891 2,098,420,630 35.5

Equity (Note 14)

Capital stock 1,041,180,504 1,041,180,504 0 0.0
Retained earnings (Note 2) 780,087,539 753,756,055 26,331,484 3.5
Accummulated comprehensive income 11,646,038 84,091,610 -72,445,572 -86.2
Total Equity 1,832,914,081 1,879,028,169 -46,114,088 -2.5
9,837,942,602 7,785,636,060 2,052,306,542 26.4
LCB EXPRESS, INC
STATEMENTS OF COMPREHENSIVE INCOME Increase or Decrease
Years Ended 11/30/2022 Amount Percent
2,019 2,018 %

SERVICE REVENUE (Note 23) 11,714,563,559 11,198,685,941 515,877,618 4.6

COST OF SERVICES (Note 16) 8,323,235,054 7,760,576,274 562,658,780 7.3

GROSS PROFIT 3,391,328,505 3,438,109,667 -46,781,162 -1.4

OPERATING EXPENSES (Note 17) 2,223,861,683 2,141,972,122 81,889,561 3.8

OPERATING INCOME 1,167,466,822 1,296,137,545 -128,670,723 -9.9

OTHER INCOME (CHARGES)

Dividend Income (Notes 10, 15) 118,988,901 368,579,963 -249,591,062 -67.7
Foreign exchange gains - net (Notes 17 and 21) 47,457,591 77,073,456 -29,615,865 -38.4
Interest income (Notes 4 and 5) 9,697,414 9,251,662 445,752 4.8
Interest expense (Notes 7, 8, 13, 15, 19) -196,356,311 -62,241,624 -134,114,687 215.5
Others - net (Notes 9, 15) 63,198,868 47,655,545 15,543,323 32.6
42,986,463 440,319,002 -397,332,539 -90.2

INCOME BEFORE TAX 1,210,453,285 1,736,456,547 -526,003,262 -30.3

PROVISION FOR INCOME TAX (Note 18) 342,948,171 405,129,603 -62,181,432 -15.3

NET INCOME 867,505,114 1,331,326,944 -463,821,830 -34.8

OTHER COMPREHENSIVE INCOME (LOSS)

Items not to be reclassified to profit or loss in

subsequent periods
Remeasurement gain (loss) on retirement benefit plan
- net of tax (Notes 14, 20) -14,996,301 18,835,639 -33,831,940 -179.6
Unrealized fair value (loss) on investment at fair value
through other comprehensive income (Note 9) -48,765,019 -111,184,242 62,419,223 -56.1

Items that may be reclassified to profit or loss in

subsequent periods
Currency translation gain (loss) - net -8,684,252 6,421,001 -15,105,253 -235.2
 -72,445,572 -85,927,602 13,482,030 -15.7

TOTAL COMPREHENSIVE INCOME 795,059,542 1,245,399,342 -450,339,800 -36.2

Asset Utilization Ratio
1. Asset Turnover Ratio: Net Sales/Average Total Assets
Net Sales or Service Revenue Asset Beginning Asset End Average Total Assets Asset Turnover Ratio Interpretation
2019 11,714,563,559 7,785,636,060 9,837,942,602 8,811,789,331 1.33 >/= 1 good but movement unfavorable compared to 2018
2018 11,198,685,941 7,785,636,060 1.44 >/= 1 good (assumed total assets)

2. Return on Asset Ratio: Profit after tax/average total assets

Profit after tax Average Total Assets Return on asset ratio
(Net Income)
2019 867,505,114.00 8,811,789,331 0.10
2018 1,331,326,944.00 7,785,636,060 0.17

Leverage Ratio
1. Debt Ratio: Total debt (liabilities) / Total Assets i.e., proportion of assets paid for with debt
Total Liabilities Total Assets Debt Ratio Interpretation: likely to lend if closer to 0 than 100
2019 8,005,028,521.00 9,837,942,602.00 81.37% Likely to lend? 0.81
2018 5,906,607,891.00 7,785,636,060.00 75.87% Likely to lend? 0.76

2. Debt to Equity Ratio: Total Liabilities / Equity

Interpretation: lower ratios
Total Liabilities Total Equity Debt to Equity Ratio more favorable
2019 8,005,028,521.00 1,832,914,081.00 4.37 source of financing is borrowing, not equity; dangerous
2018 5,906,607,891.00 1,879,028,169.00 3.14 high leverage towards debt financing

Liquidity Ratio
1. Current ratio: Current Asset / Current Liabilities
Current Assets Current Liabilities Current Ratio Interpretation: Readiness of company to pay for current obligations
2019 4,625,176,531.00 5,493,870,488.00 84.19% weaker in 2019
higher ratio, higher liquidity;
2018 5,289,433,715.00 4,895,139,457.00 108.05% better in 2018

2. Acid Test ratio: Quick Asset / Current Liability Interpretation: >1 favorable
Quick asset: Current Asset - Inventory
*No inventory: same as (1) Current ratio
2019 4,625,176,531.00 5,493,870,488.00 84.19% weaker in 2019
higher ratio, higher liquidity;
2018 5,289,433,715.00 4,895,139,457.00 108.05% better in 2018

3. Liquidity ratio: Cash and Bank Balances + Current investments ( or cash equivalent)/Current Liabilities CASH RATIO
creditors due to safety of
Cash Equivalent Current Liabilities Liquidity Ratio returns
2019 1,549,415,988 5,493,870,488 28.20%
2018 2,046,775,860 4,895,139,457 41.81% more favorable in 2018

Profitability Ratio
1. Gross Profit Margin Ratio: Revenues - Cost of Goods Sold or Cost of Services (or Gross Profit)/Net Sales
services at high profit
Gross Profit Net Sales Gross Profit Margin Ratio percentage
2019 3,391,328,505 11,714,563,559 28.95%
2018 3,438,109,667 11,198,685,941 30.70%

2. Net Profit Margin Ratio: Net Profit After Tax/Net Sales

Interpretation: Higher value:
Net Profit After Tax Net Sales Net Profit Margin Ratio abililty to pay profit share
2019 867,505,114 11,714,563,559 7.41%
2018 1,331,326,944 11,198,685,941 11.89%
Altman Z-score Model

Z=1.2 X1+1.4 X2 +3.3 X3 +0.6 X4 + 1.0 X5

2019 Numerator Denominator Weight Totals
X1 Working Capital/Total Assets Current Assets-Current liabilities 4,625,176,531 Total Assets 9,837,942,692 1.2 0.56
X2 Retained Earnings/Total Assets Retained earnings 780,087,539.00 Total Assets 9,837,942,692 1.4 0.11
Income before income tax+Interest
X3 Earnings before interest and taxes/total assets Expense 1,406,791,596 Total Assets 9,837,942,692 3.3 0.47
X4 Market value equity/book value of total liabilities Capital Stock 1,041,180,504 Total Liabilities 8,005,028,521 0.6 0.08
X5 sales/total assets Service Revenue 11,714,563,559 Total Assets 9,837,942,692 1 1.19
Altman z-score: 2.42 1.81-2.67: Gray area, financial problems
</= 1.81 difficulty/financial difficulty

2018 Numerator Denominator Weight Totals

X1 Working Capital/Total Assets Current Assets-Current liabilities 394,294,258 Total Assets 7,785,636,060 1.2 0.06
X2 Retained Earnings/Total Assets Retained earnings 753,756,055 Total Assets 7,785,636,060 1.4 0.14
Income before income tax+Interest
X3 Earnings before interest and taxes/total assets Expense 1,798,698,171 Total Assets 7,785,636,060 3.3 0.76
X4 Market value equity/book value of total liabilities Capital Stock 1,041,180,504 Total Liabilities 5,906,607,891 0.6 0.11
X5 sales/total assets Service Revenue 11,198,685,941 Total Assets 7,785,636,060 1 1.44
Altman z-score: 2.50 1.81-2.67: Gray area, financial problems
2018 better than 2019
Taffler Z-Score Model (Bankruptcy Model)
Z= 0.53 R1+0,13 R2+0.18 R3 +0.16 R4
2019 Numerator Denominator Weight Totals
R1 earnings before taxes / current liabilities Earnings before taxes 1,210,453,285 Current liabilities 5,493,870,488 0.53 0.12
R2 current assets / total liabilities Current Assets 4,625,176,531 Total liabilitiies 8,005,028,521 0.13 0.08
R3 current liabilities/ total assets Current liabilities 5,493,870,488 Total Assets 9,837,942,692 0.18 0.10
R4 sales/total assets Service Revenue 11,714,563,559 Total Assets 9,837,942,692 0.16 0.19
Taffler z-score 0.48 >0.3 safe

2018 Numerator Denominator Weight Totals

R1 earnings before taxes / current liabilities Earnings before taxes 1,736,456,547 Current liabilities 4,895,249,457 0.53 0.19
R2 current assets / total liabilities Current Assets 5,289,433,715 Total liabilitiies 5,906,607,891 0.13 0.12
R3 current liabilities/ total assets Current liabilities 4,895,139,457 Total Assets 7,785,636,060 0.18 0.11
R4 sales/total assets Service Revenue 11,198,685,941 Total Assets 7,785,636,060 0.16 0.23
Taffler z-score 0.65 >0.3 safe 2018 better than 2019