Company Registration No.: 197702806M Half Year Financial Statements for the Period Ended 30 June 2009 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 CONSOLIDATED INCOME STATEMENT The Group 6 months 6 months ended ended 30-Jun-09 30-Jun-08 $'000 $'000 Revenue Cost of sales Gross profit Other income Distribution and selling expenses General and administrative expenses Other expenses Finance costs Profit before tax Income tax expense Profit for the period Attributable to: Equity holders of the parent Minority interests 52,859 (42,872) 9,987 435 (3,410) (3,103) (35) (319) 3,555 (330) 3,225 3,009 216 3,225 Note on profit before tax Profit before tax is determined after charging/(crediting) the following: Interest income from fixed deposit and others Interest expense on loans and borrowings Dividend income received from investment securities Depreciation of property, plant and equipment Property, plant and equipment written off Allowance/(write back) of doubtful trade receivables Write back of allowance for stock obsolescence Net gain on foreign exchange Amortisation of club membership Amortisation of deferred capital grants Net loss on disposal of property, plant and equipment Taxation Current period income tax Overprovision of income tax in respect of prior years Current period deferred tax Changes in tax rate N.M. - not meaningful (40) 289 (266) 1,910 17 (42) (9) 2 (9) 2 (107) 345 (16) 1,386 3 (53) (14) (23) 2 (1) 10 41,075 (33,467) 7,608 292 (2,299) (2,714) (36) (362) 2,489 (641) 1,848 1,891 (43) 1,848
Change % 28.7% 28.1% 31.3% 49.0% 48.3% 14.3% -2.8% -11.9% 42.8% -48.5% 74.5% 59.1% N.M.
680 (215) (78) (57) 330
709 (10) (58) 641
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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 CONSOLIDATED STATEMENT OF FINANCIAL POSITION The Group As at As at 30-Jun-09 31-Dec-08 $'000 $'000 Non-current assets Property, plant and equipment Investment in subsidiaries Intangible assets Investment securities Loans to subsidiaries Current assets Inventories Trade receivables Other receivables & deposits Prepaid operating expenses Loans to subsidiaries Amounts due from subsidiaries (non-trade) Cash and bank balances Fixed deposits Current liabilities Trade & other payables Bills payable Loans and borrowings Other liabilities Deferred capital grants Income tax payable Net current assets Non-current liabilities Deferred tax liabilities Deferred capital grants Loans and borrowings 36,773 712 640 38,125 10,726 30,894 1,339 561 14,582 1,000 59,102 12,830 14,596 6,891 3,275 16 714 38,322 20,780 1,569 128 233 1,930 Net assets Equity attributable to equity holders of the parent Share capital Retained earnings Capital reserve Reserve fund Asset revaluation reserve Fair value adjustment reserve Foreign currency translation reserve Minority interests Total equity 1(b)(ii) Aggregate amount of group's borrowings and debt securities Amount repayable in one year or less, or on demand As at 30/06/2009 Secured Unsecured 21,237 250 Amount repayable after one year As at 30/06/2009 Secured Unsecured 233 Details of any collateral: The Group's loans and borrowings are secured by the leasehold land, certain leasehold building and certain plant and machinery of the subsidiaries with net book value of approximately $28.5 million and cash and bank balances of $3.6 million. As at 31/12/2008 Secured Unsecured 376 As at 31/12/2008 Secured Unsecured 14,167 4,421 56,975 31,440 12,421 3,745 1,795 3,777 192 2,277 55,647 1,328 56,975 38,052 668 448 39,168 11,261 22,763 897 270 11,715 1,000 47,906 9,209 7,478 11,110 3,275 10 512 31,594 16,312 1,680 142 376 2,198 53,282 31,440 9,660 3,745 1,547 3,785 1,996 52,173 1,109 53,282 The Company As at As at 30-Jun-09 31-Dec-08 $'000 $'000 1,858 21,989 41 640 3,564 28,092 1,906 3,070 87 106 2,320 618 3,045 1,000 12,152 929 204 1,457 147 2,737 9,415 185 185 37,322 31,440 5,690 192 37,322 37,322 2,145 21,989 42 448 4,764 29,388 2,767 2,686 122 37 1,120 724 2,162 1,000 10,618 625 83 1,656 167 2,531 8,087 259 259 37,216 31,440 5,776 37,216 37,216
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1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year CONSOLIDATED STATEMENT OF CASH FLOW The Group 6 months 6 months ended ended 30-Jun-09 30-Jun-08 $'000 $'000 Operating activities Profit before tax Adjustments for: Amortisation of deferred capital grant Depreciation of property, plant and equipment Property, plant and equipment written off Net loss on disposal of property, plant and equipment Amortisation of club membership Allowance/(write back) of doubtful trade receivables Write back of allowance for inventories obsolescence Dividend income from investment securities Interest expense Interest income Net effect of exchange differences Operating cash flows before changes in working capital Changes in working capital Decrease in inventories Increase in trade and other receivables, prepayments and deposits Increase/(decrease) in trade and other payables and other liabilities Cash flows generated from/(used in) operations Interest paid Income tax paid Net cash flows generated from/(used in) operating activities Investing activities Interest received Dividend received Purchase of property, plant and equipment Proceeds from disposal of property, plant and equipment Net cash flows generated from/(used in) investing activities Financing activities Proceeds from loans and borrowings Repayment of loans and borrowings Decrease in pledge cash & bank balances Net cash flows (used in)/generated from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash and cash equivalents at end of period comprise of:Fixed deposits Cash and bank balances Cash and bank balances pledged as security for bills payables 40 266 (190) 116 5,894 (10,404) (1,548) (6,058) 1,319 10,658 11,977 107 16 (1,855) 795 (937) 11,358 (6,621) 2,979 7,716 (125) 14,242 14,117 3,555 (9) 1,910 2 2 17 (42) (266) 289 (40) 50 5,468 577 (8,881) 10,649 7,813 (289) (263) 7,261 2,489 (1) 1,386 3 10 2 (53) (14) (16) 345 (107) 6 4,050 1,570 (244) (10,801) (5,425) (345) (1,134) (6,904)
1,000 14,582 15,582 (3,605) 11,977
9,000 6,786 15,786 (1,669) 14,117
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Consolidated Statement of Comprehensive Income With effect from 1 January 2009, FRS1 Presentation of Financial Statements, requires an entity to present total comprehensive income (i.e. changes in equity during a period, other than those changes resulting from transactions with owners in their capacity as owners) in a Statement of Comprehensive Income. The Group 6 months 6 months ended ended 30-Jun-09 30-Jun-08 $'000 $'000 Profit for the period Other comprehensive income Translation differences relating to financial statements of foreign subsidiaries Available-for-sale financial assets: net movement in fair value reserve Deferred tax changes on revaluation surplus Other comprehensive income for the period, net of tax Total comprehensive income for the period Attributable to: Equity holders of the parent Minority interests Total comprehensive income for the period 3,225 1,848
Change % 74.5%
286 192 (10) 468 3,693 3,474 219 3,693
100 20 120 1,968 2,008 (40) 1,968
186.0% 860.0% N.M. 290.0% 87.7% 73.0% N.M. 87.7%
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 Share capital Accumulated profits $'000 7,146 1,891 (195) 8,842 9,660 3,009 (248) 12,421 Capital reserve Reserve fund Assets revaluation reserve $'000 3,785 3,785 3,785 (8) 3,777 (170) 192 192 Fair value adjustment reserve $'000 (190) 20 308 1,996 281 2,277 Foreign currency translation reserve $'000 211 97 Total reserves Minority interests Total
$'000 Group Opening balance at 1/1/2008 Total comprehensive income for the period Appropriation to statutory reserve fund Closing balance at 30/6/2008 Opening balance at 1/1/2009 Total comprehensive income for the period Appropriation to statutory reserve fund Closing balance at 30/6/2009 Company Opening balance at 1/1/2008 Total comprehensive income for the period Closing balance at 30/6/2008 Opening balance at 1/1/2009 Total comprehensive income for the period Closing balance at 30/6/2009 31,440 31,440 31,440 31,440
$'000 3,745 3,745 3,745 3,745
$'000 1,322 195 1,517 1,547 248 1,795
$'000 16,019 2,008 18,027 20,733 3,474 24,207
$'000 926 (40) 886 1,109 219 1,328
$'000 48,385 1,968 50,353 53,282 3,693 56,975
31,440 31,440 31,440 31,440
6,034 83 6,117 5,776 (86) 5,690
-
-
-
(190) 20 (170) 192 192
-
5,844 103 5,947 5,776 106 5,882
-
37,284 103 37,387 37,216 106 37,322
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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 for 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 well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, 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 Since the end of 31 December 2008, there has been no change in the Company’s share capital arising from rights issue, bonus issue, shares buy-back, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose. There were also no outstanding convertibles for which shares may be issued. Neither was there any treasury shares being transferred, transacted, cancelled or held by the Company during or as at the end of the current financial period and as at the end of the corresponding period of the immediately preceding financial year. 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year. As at 30/6/2009 157,200,000 As at 31/12/2008 157,200,000
Total number of issued shares
1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. Not applicable 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 and equivalent standard) The figures have not been audited or reviewed by 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 accounting period as compared to the audited financial statements for the year ended 31 December 2008 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 Not applicable. 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 30-Jun-09 1.91 1.91 30-Jun-08 1.20 1.20
Basic earnings per ordinary share (in cents) Diluted earnings per ordinary share (in cents)
7. Net asset value (for the issuer and group) per ordinary share based on issued share excluding treasury shares of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year The Group 30-Jun-09 31-Dec-08 Net asset value per ordinary share based on no. of ordinary share of the Company (in cents) 35.40 33.19 The Company 30-Jun-09 31-Dec-08 23.74 23.67
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8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following:(a) 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; and Group turnover for the financial period ended 30 June 2009 increased by $11.8 million or 29% from $41.1 million to $52.9 million as compared to the previous corresponding period. This was mainly due to the inclusion of the sales of United Packaging Industries Pte. Ltd. (UPI) (Note: UPI is a wholly-owned subsidiary incorporated on 9 May 2008 and commence operations on 21 July 2008). UPI contributed $9.4 million to the Group's turnover for the financial period ended 30 June 2009. Excluding the sales contributed by UPI for current financial period, the Group still achieved a 6% growth in revenue. Costs of sales for the Group increased by $9.4 million or 28% which is in line with the increase in turnover as compared to the previous corresponding period. Despite the current economy climate, the Group managed to maintain its gross profit margin as compared to the previous corresponding period. Other income increased by $0.1 million as compared to the previous corresponding period. This is mainly contributed by the dividend income received from its investment securities. The Increase in distribution & selling expenses and general & administrative expenses is mainly attributable from the inclusion of the expenses of UPI. The Group's profit before tax increased by $1.1 million or 43% as compared to the previous corresponding period. This is mainly contributed by higher sales turnover of China subsidiaries and the inclusion of the UPI's results. As a result of the above, net profit attributable to equity holders of the Company increased by $1.1 million or 59% from $1.9 million to $3 million.
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on Trade receivables increased by S$ 8.1 million as compared to 31 December 2009. This is mainly due to higher sales contribution from the new and key customers in second quarter of 2009. The increase in trade payables is mainly due to higher purchases made during second quarter of 2009. As a result of re-arrangement of financing facilities for working capital purpose, the Group increased its cash and cash equivalent by 2.9 million, reduced its bank loans and borrowings by $4.4 million and increased its bills payable by $7.1 million.
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results The results are in line with our results announcement dated 27 February 2009. 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 Despite the globle economic crisis in the first half of FY2009 the group is able to maintain a steady sales growth. The group expects operating environment to remains challenging over the next 12 months as paper and oil prices shown an upward trend in second quarter of 2009. However, the Group will minimise the impact by taking various measures to strengthen its businesses and build on its strengths to meet the challenges ahead. Barring the unforeseen circumstances, the Group will continue to remain profitable in FY2009.
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11. Dividend (a) Current Financial Period Reported On Any dividend recommended for the current financial year reported on Name of Dividend Dividend Type Dividend Amount Per Share Tax Rate Interim dividend Cash; Tax exempt (1-tier) dividend S$0.01 per ordinary share Exempt (1-tier) Yes
(b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? Name of Dividend Dividend Type Dividend Amount Per Share Tax Rate Not applicable Not applicable Not applicable Not applicable Nil
(c) Date payable To be announced later.
(d) Books closure date To be announced later.
12. If no dividend has been declared/recommended, a statement to that effect Not applicable
13. Negative assurance confirmation The Board of Directors have confirmed that, to the best of their knowledge, nothing of material impact has come to their attention which may render these interim financial results of the Group and the Company to be false or misleading.
BY ORDER OF THE BOARD Loh See Moon Managing Director 6 August 2009
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