Half Year Financial Statement And Dividend Announcement

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year

		Group
		6 months ended	6 months ended	%
		30 June 03	30 June 02	Increase/
		S$'000	S$'000	(Decrease)

Revenue (Note 1)	42,509	33,765	25.9
Cost of Sales (Note 1)	(29,842)	(20,831)	43.3
Gross Profit	12,667	12,934	(2.1)
Administrative costs (Note 2)	(4,015)	(2,748)	46.1
Distribution costs	(1,618)	(2,105)	(23.1)
Other operating costs	(1,013)	(1,179)	(14.1)
Other operating income	204	110	85.5
Profit from operating activities	6,225	7,012	(11.2)
Finance costs	(394)	(431)	(8.6)
Share of results of an associated company	-	-
Profit before income tax	5,831	6,581	(11.4)
Income tax	(1,356)	(1,378)	(1.6)
Profit after income tax	4,475	5,203	(14.0)
Minority interest (Note 3)	-	(18)	(98.8)
Net profit attributable to members of the company	4,475	5,185	(13.7)

Note 1

Included in the Revenue and Cost of Sales is an amount of S$3.4 million for revenue and costs respectively for Mould Fabrication work recognised only to the extent of contract costs incurred that are probable to be recoverable. The related contract costs are taken into the cost of sales in the same period. (Please refer to item 5 below on changes in accounting policy - FRS 11)

Note 2

Include in the administration cost in the corresponding period ended 30 June 2002 is S$0.5 million provision on bonus written back. In the current financial period, S$0.4million was incurred in respect of the start up of the Mexico operations.

Note 3

The minority interest for the current financial period is S$214 only.


1 (a)(ii) The following items (with appropriate breakdowns and explanations), if significant, must either be included in the income statement or in the notes to the income statement for the current financial period reported on and the corresponding period of the immediately preceding financial year:-

	Group
	6 months ended	6 months ended
	30 June 03	30 June 02
	S$'000	S$'000

(A) Investment income	-	-
(B) Other income including interest income	(141)	(90)
(C) Interest on borrowing	394	431
(D) Depreciation and amortisation	2,165	1,885
(E) (Write back)/provision for doubtful debts and
bad debts written off	109	(658)
(F) Write-off for stock obsolescence	(10)	560
(G) Impairment in value of investments	-	1
(H) Foreign currency (gain)/loss	(260)	979
(I) Adjustments for (over)/under provision of prior year tax	-	-
(J) (Gain)/Loss on sales of investments, properties,
and/or plant and equipment	(3)	(18)
(K) Exceptional item	-	-
(L) Extraordinary item	-	-

1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year

		The Group		The Company
		30 June 03	31 December 02	30 June 03	31 December 02
		S$'000	S$'000	S$'000	S$'000

Property, plant and equipment	30,375	29,459	11,740	12,516
Subsidiary companies	-	-	10,750	7,820
Investments	1	1	1	1
Associated company	-	-	-	-
Deferred expenditure	-	-	-	-

Current Assets
Inventories	13,528	11,569	7,231	6,580
Trade receivables	23,791	20,407	18,283	15,501
Other receivables	4,146	2,597	2,659	1,291
Amounts due from related parties	122	114	121	113
Fixed deposits	4,040	3,322	1,943	1,943
Cash and bank balances	14,851	21,498	5,402	12,039
	60,478	59,507	35,639	37,467
Current Liabilities
Trade payables	8,830	8,531	5,415	4,336
Other payables	4,597	8,008	1,698	4,236
Hire purchase payables	1,913	1,960	1,175	1,251
Amounts due to bankers	2,294	1,620	1,376	1,197
Amounts due to subsidiary companies	-	-	816	598
Amounts due to related parties	13	-	-	-
Provision for taxation	2,021	1,964	1,532	1,638
	19,668	22,083	12,012	13,256
Net current assets	40,810	37,424	23,627	24,211
Non-current liabilities
Hire purchase payables	1,517	1,585	991	1,079
Amount due to bankers	5,137	5,336	4,998	5,336
Deferred taxation	1,745	1,742	1,152	1,152
	8,399	8,663	7,141	7,567
Net Assets	62,787	58,221	38,977	36,981
Capital and Reserves
Share capital	36,359	16,998	36,359	16,998
Share premium	-	-	-	-
Revaluation reserve	622	622	622	622
Capital and statutory reserves	1,451	1,447	-	-
Foreign exchange translation reserve	509	427	-	-
Revenue reserve	23,522	38,408	1,996	19,361
	62,463	57,902	38,977	36,981
Minority interests	324	319	-	-
	62,787	58,221	38,977	36,981

1(b)(ii) Aggregate amount of group's borrowings and debt securities

Amount repayable in one year or less, or on demand



As at 30/06/2003

As at 31/12/2002

Secured	Unsecured	Secured	Unsecured
S$4,207,000	0	S$3,580,000	0



Amount repayable after one year



As at 30/06/2003

As at 31/12/2002

Secured	Unsecured	Secured	Unsecured
S$6,654,000	0	S$6,921,000	0



Details of any collateral

The secured facilities of the Group comprise trust receipts, bank loans and finance leases.
1. The bank loan of the Company is secured by a mortgage over the leasehold land and buildings in Singapore, and joint and several guarantees by two Directors. The loans are repayable over a period of 120 monthly instalments at the bank prime rate.
2. The bank loan of a subsidiary of S$848,000 is secured by the cash and bank balances of a subsidiary. The bank loan bears interest of 3% per annum.
3. The bank loan of a subsidiary of S$208,000 is secured by a particular fixed asset of that subsidiary and corporate guarantee from the Company. The bank loan bears interest of bank prime rate on monthly rest basis.
4. The finance leases are secured by certain fixed assets of the subsidiary companies and the Company with a total net book value of S$6.7 million as at 30 June 2003 (30 June 2002 : S$7.6 million).


1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year

		The Group
		30 June 03	30 June 02
		S$'000	S$'000

Cashflow from operating activities
Profit before taxation and minority interests	5,831	6,582
Adjustments for :
Share of loss of associated company	-	-
Depreciation of fixed assets	2,165	1,879
Amortisation of preliminary and pre-operating expenses	-	-
Amortisation of goodwill	-	6
Provision for diminution in value of quoted investments	-	-
(Gain)/Loss on sales of fixed assets	(3)	(18)
Interest expense	394	431
Interest income	(43)	(55)
Currency re-alignment	44	(631)
Operating profit before reinvestment of capital	8,388	8,194
Decrease/(Increase) in stocks	(1,959)	(1,771)
Decrease/(Increase) in trade debtors	(3,384)	(2,120)
Decrease/(Increase) in other debtors	(1,549)	(942)
Decrease/(Increase) in amount due from related companies	(8)	(32)
(Decrease)/Increase in trade creditors	299	1,517
(Decrease)/Increase in other creditors and accruals	(3,411)	(745)
(Decrease)/Increase in amount due to related companies	13	(236)
Cash generated from operations	(1,611)	3,865
Interest paid	(394)	(431)
Interest received	43	55
Tax paid	(1,296)	(1,183)
Net Cash provided from operating activities	(3,258)	2,306
Net Cash provided from investing activities
Proceeds from sales of fixed assets	116	165
Purchase of fixed assets	(3,139)	(1,571)
Cash flow on acquisition, net of cash required	-	-
Net cash (used in) investing activities	(3,023)	(1,406)
Cash flows from financing activities
(Payment)/proceeds of hire purchase creditors	(115)	(702)
Proceeds from term loans	453	-
Proceeds from the exercise of share options and warrants	-	-
Repayment of bank borrowings	(402)	(729)
Decrease/(Increase) in fixed deposits	(718)	(3,919)
Payment of dividends	-	-
Net cash (used in) financing activities	(782)	(5,350)
Net increase in cash and cash equivalents	(7,063)	(4,450)
Cash and cash equivalents at beginning of period	21,066	20,908
Cash and cash equivalents at end of period	14,003	16,458

Cash and cash equivalents included in the consolidated cash flow statement comprise the following balance sheet amounts :-

		The Group
		30 June 03	30 June 02
		S$'000	S$'000

Cash and bank balances	14,851	16,458
Less: Amounts pledged to bank by a subsidiary (Note 1)	(848)	-
Cash and bank equivalents	14,003	16,458

Note 1
The amount is pledged to secure a bank loan for a subsidiary.

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year

	The Group		The Company
	30 June 03	31 December 02	30 June 03	31 December 02
	S$'000	S$'000	S$'000	S$'000

Share Capital
Balance at the beginning of financial period	16,998	16,998	16,998	16,998
Issuance of ordinary shares	19,361	-	19,361	-
Balance at end of financial period	36,359	16,998	36,359	16,998
Share premium
Balance at the beginning of financial period	-	-	-	-
Amount applied for bonus issue of ordinary shares	-	-	-	-
Balance at end of financial period	-	-	-	-
Revaluation reserve
Balance at the beginning of financial period	622	602	622	602
Transfer from/to revenue reserve	0	0	0	0
Balance at end of financial period	622	602	622	602
Capital and statutory reserves
Capital reserve
Balance at the beginning of financial period	-	-	-	-
Transfer from/to revenue reserve	-	-	-	-
Balance at end of financial period	-	-	-	-
Statutory reserve
Balance at the beginning of financial period	1,447	1,399	-	-
Transfer from/to revenue reserve	3	-	-	-
Balance at end of financial period	1,451	1,399	-	-
Total capital and statutory reserve	1,451	1,399	-	-
Foreign exchange translation reserve
Balance at the beginning of financial period	427	2,084	-	-
Exchange differences on consolidation	82	(1,076)	-	-
Balance at end of financial period	509	1,008	-	-
Revenue reserve
Balance at the beginning of financial period	38,408	30,874	19,361	15,468
Net profit for the period	4,475	5,185	1,996	4,577
Amount applied for bonus issue of ordinary shares	(19,361)	-	(19,361)	-
Dividend paid, less income tax	-	-	-	-
Transfer from/(to) statutory reserve	-	-	-	-
Transfer from/(to) capital reserve	-	-	-	-
Balance at end of financial period	23,522	36,059	1,996	20,045
Total equity excluding minority interests	62,534	56,066	38,977	37,645
Net change in equity from non-owner sources excluding net profits	82	(1,076)	-	-

1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares or cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year

During the financial period, the Company had :
(a) increased our authorised share capital from $50,000,000 divided into 500,000,000 ordinary shares of $0.10 each to $60,000,000 divided into 600,000,000 ordinary shares of $0.10 each

(b) issued 193,613,207 new ordinary shares of S$0.10 each as bonus issue, credited as fully paid upon the capitalisation of $19,361,320.70 out of the revenue reserves of the Company as at 31 December 2002;

(c) consolidated every three ordinary shares of $0.10 in the authorised and issued share capital of the Company into one ordinary share of $0.30 each (the "Share Consolidation");

(d) sub-divided every one ordinary share of $0.30 in the authorised and issued share capital of the Company into two ordinary shares of $0.15 each (the "Stock Split");

On 31 July 2003, the Company was admitted to the Official List in Singapore Stock Exchange Securities Trading Ltd. In connection with the admission to the official list in the Singapore Exchange Securities Trading Ltd, 65,000,000 new ordinary shares of S$0.15 each was issued at S$0.32 each and fully paid.


2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)

The above figures have not been audited and reviewed by the independent auditors.

3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter)

Not applicable.


4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied

The Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period as compared to the audited financial statements as at 31 December 2002, except for revenue from Mould Fabrication work where revenues were recognised upon acceptance and final approval from customers in audited financial statement for 31 December 2002, that is, the completed contract method was used.


5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

As was disclosed in the IPO Prospectus dated 22 July 2003, and as is required by FRS 11 Construction Contracts ("FRS 11"), (previously known as SAS) the stage of completion of method will have to be adopted for the recognition of revenue and costs for the Mould Fabrication segment for financial years beginning on or after 1 April 2002. When the outcome of a contract can be estimated reliably, contract revenue and costs are recognised as income and expense respectively by reference to the value of work performed relative to the contract value. When the outcome of the contract cannot be estimated reliably, revenue is recognised only to the extent of contract costs incurred that are probable to be recoverable and contract costs are recognised as an expense in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

This new accounting policy is applicable to us from the financial periods beginning on 1 January 2003. If the outcome of a contract cannot be estimated reliably, FRS 11 requires us to recognise revenue only to the extent of the costs incurred and accordingly, our gross profit margin may be affected. Consequently, our gross profit margin of this reporting period has decreased by 2.6% (see 1(a)(I) Note 1 above for the effect of the change). The impact on the profit of the Group was not material for the period ended 30 June 2002.


6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends

	Group
	30 June 03	30 June 02

Earnings per ordinary share for the period based on net profit attributable to shareholders :-
Based on the weighted average number of ordinary Shares on issue (cents)	1.85	2.14
On fully diluted basis	1.85	2.14

Basic earnings per share and diluted earnings per share for the period is calculated based on the Group's profit attributable to the shareholders divided by the weighted average number of ordinary shares of 242,392,438 (30 June 2002 : 242,392,438). There was no dilutive effect from the shares under the Employee Share Option Scheme.

7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year

	The Group		The Company
	30 June 03	31 December 02	30 June 03	31 December 02

Net asset value per ordinary share based on issued share capital at the end of the period (cents)

25.77

23.89

16.08

15.26

Net asset value per share for the period is calculated based on the Group's net assets value divided by the weighted average number of ordinary shares of 242,392,438 (31 December 2002 : 242,392,438)


8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

The Group's revenue for first half year ended 30 June 2003 increased by approximately S$8.7 million or 25.9% to S$42.5 million as compared to the previous corresponding period. The increases were attributable to increases in all the segments of our business.

The Group's gross profit decreased by S$0.2 million to S$12.7 million in first half year ended 30 June 2003 as compared to S$12.9 million in the previous corresponding period. Our gross profit margin decreased to 29.8% for first half year ended 30 June 2003 from 38.3% for the previous corresponding period. This was mainly due to increase in the purchase of customer's specified components, cost of materials and contract services for new projects launched and the delay in the transfer of the new developed projects from Singapore to Shanghai for production due to the outbreak of the Severe Acute Respiratory Syndrome (SARS). There was also the cost of S$3.4 million associated with the revenue recognised in compliance with FRS 11 resulting in a decrease in the gross profit margin by 2.6%.

The Group's total operating costs increased by S$0.5 million in the first half year ended 30 June 2003. This was mainly due to the start up cost for Mexico operations increase in salaries and related costs and, the write back of bonus provisions in the previous corresponding period.

The Group's net profit before tax margin in first half year ended 30 June 2003 decreased by 5.8% to 13.7% as compared with 19.5% in the previous corresponding period. The impact of FRS 11 resulted in a 1.2% decrease in the net profit before tax margin.

The increase in the property, plant and equipment was mainly due to capital expenditure of S$3.1 million for new equipment purchased in first half year ended 30 June 2003.

The increase in the inventory of S$2.0 million in first half year ended 30 June 2003 as compared with the corresponding period was mainly due to building of inventory for a smooth transfer of projects from Singapore to our plants in Shanghai and Mexico.

The increase in the trade receivables of S$3.4 million was in line with the increase in sales in first half year ended 30 June 2003 as compared with previous corresponding period.

The increase in other receivables of S$1.5 million was mainly due to advance payments made for the purchase of fixed assets for Tianjin and Mexico operations.

The cash flow position remains strong although the cash on hand at 30 June 2003 was reduced by S$ 7.1 million to S$14.0 million for the first half year ended 30 June 2003. This reduction was from operating activities of S$3.2 million, investing activities of S$3.0 million and financing activities of S$0.8 million. The cash generated from profit before income tax and depreciation was S$8.0 million. The gearing (taken as the ratio of total borrowings to equity) of the group as at 30 June 2003 was 17.4% compared to 18.1% as at 31 December 2002.


9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results

Not applicable.

10. A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months

The industry in which the Group operates is competitive. However the Directors believe that the Group is well positioned to compete effectively arising from our global presence, niche technologies and its business/strategic alliances.

Market conditions for the rest of this financial year are expected to remain challenging with recent events such as the outbreak of the severe acute respiratory syndrome (SARS). To-date, the Group's expansion plans and operations have not been materially and adversely affected by these events. The Group remains cautiously optimistic of its prospects in the next reporting period.

In order to maintain its competitiveness, the Group will continue to focus on cost efficiencies and to grow through strategic alliances and enhanced technology competencies.


11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on? None
(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? None

(c) Date payable

No applicable.


(d) Books closure date

Not applicable.


12. If no dividend has been declared/recommended, a statement to that effect

No interim dividend has been declared or recommended.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year

Not applicable.


14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments

Not applicable.


15. A breakdown of sales

Not applicable.


16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)



	Latest Full Year ()	Previous Full Year ()
Ordinary	0	0
Preference	0	0
Total:	0	0