Financial Summary 财务总结

Financial Summary – Honorary Treasurer’s Report

Year 2016 $’000s

Year 2017 $’000s

Year 2018 $’000s

Year 2019 $’000s

Year 2020 $’000s

Year 2021 $’000s

Revenue

5,167 6,365 7,995 10,110 9,997 11,842 Income Surplus 329 648 1,031 446 363 785 Cash and Cash Equivalent 3,702 4,555 5,708 6,963 8,013 9,219

Net Assets 9,044 9,692 10,723 11,169 11,532 12,881

Segment Information

Year 2021

Revenue

Income Surplus Cash & Cash Equivalent

Net Assets Association Services Aged Care Chinese Schools Total

$'000s $'000s $'000s $'000s 740 10,416 -7 672 686 11,842 120 785

887 7,751 581 9,219

6,778 4,910 1,193 12,881

The principal activities of the Chung Wah Association during the year were to provide welfare services education, cultural and social activities to their members and the community. For the year ended June 30 2021, the operating surplus of the Chung Wah Association was $785,430, which was twice the 2020 surplus of $363,056. All three business divisions of the Chung Wah Association have improved. The good performance of the Chung Wah Association is firstly due to the good control of COVID-19 in Western Australia in 2021, and secondly, thanks to the efforts of all members and the management teams of all business segments of the Chung Wah Association. The revenue of the entire Chung Wah Association was $11.842 million, an increase of 18.5% over the the previous year of $9.997 million. Revenue growth can be attributed to a variety of factors, a good CAC aged care management system, the increase in income from cultural activities, the increase in government funding for welfare and schools, and the reduction of service costs.

Chung Wah’s cash and cash equivalents and net assets grew steadily, and the land and buildings were reassessed this year.

Analysis on Statement of Profit or Loss Statement

Revenue

The revenue of the entire Chung Wah Association was $11.842 million, and the revenue of CAC this financial year increased by 19% to $10.416 million, accounting for 88% of the total revenue of the Chung Wah Association. CAC’s increase in revenue was mainly due to business expansion and more welfare income from Government funding system. The revenue of Association services has increased by more than 19% to $739,792 this year. This is mainly due to the success of various social activities, especially the 110th anniversary celebration of the Chung Wah Association, Government funding, fund raising activities and sponsorship from subcommittees also contributed are also contributed towards the increases of the revenue.

Chinese Schools had an increase in revenue of $54,611 due to the increase in student numbers and thereby the per capita grant funding.

Income Surplus

The operating surplus of the Chung Wah Association was $785,430, which was twice the 2020 surplus of $363,056. CAC’s surplus this year was $672,316, more than twice the surplus of $332,657 in the previous year. Although CAC’s business expansion has contributed a lot to its revenue, the related service costs have also increased, especially the employment and management expenses have increased to 19% and 24%, respectively. On the other hand, CAC’s business expansion has also led to an increase of about 14% in government funding for welfare services this year. In addition, the reduction in depreciation and amortisation expenses and the increase in revenue from sales of property, plant and equipment have further reduced service costs.

The association service has a deficit of $7,061 this year. If the rental income of CAC is added back, there will be a surplus of $73,000. Although membership income and rental income did not increase much, the reduction in rental expenses helped reduce the deficit.

The surplus of Chinese schools this year is $120,175. Chung Wah Association has has started a fifth Chinese School in Atwell this year. Although the new school requires a lot of human and economic resources, Chung Wah Chinese Schools strive to reduce their management costs, resulting in a surplus.