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Quarter Ended 30092004_Bursa Malaysia by ajizai

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									                           CHEE WAH CORPORATION BERHAD(32250-D)
                           (Incorporated in Malaysia)




The Board of Directors of CHEE WAH CORPORATION BERHAD is pleased to announce the consolidated results for the first
quarter ended 30 September 2004. The figures have not been audited.

                                   CONDENSED CONSOLIDATED INCOME STATEMENTS

                                                                 Individual Quarter                    Cumulative Quarter
                                                                 Current Preceding Year                 Current
                                                                    Year     Corresponding                Year
                                                           Quarter Ended     Quarter Ended             To Date
                                                             30/09/2004          30/09/2003         30/09/2004

                                                                 RM '000           RM '000            RM '000

Revenue                                                           20,446            20,203             20,446

Operating expenses                                               (20,160)          (19,039)           (20,160)

Other operating income                                               113                 7                  113

Profit from operations                                               399             1,171                  399

Finance cost                                                      (1,044)             (863)            (1,044)

(Loss)/Profit before tax                                            (645)              308                 (645)

Income tax expense                                                   160               (83)                 160

(Loss)/Profit after tax                                             (485)              225                 (485)

Minority interests                                                   (17)                1                  (17)

Net (loss)/profit for the period                                    (502)              226                 (502)

(Loss)/Earnings per share (sen)
       - Basic                                                     (1.19)             0.55                 (1.19)
       - Diluted                                                   (1.19)             0.55                 (1.19)




                             (The Condensed Consolidated Income Statements should be read in conjunction
                                 with the Annual Financial Statements for the year ended 30 June 2004)
250-D)




nce the consolidated results for the first



EMENTS

               Cumulative Quarter
                          Preceding Year
                           Corresponding
                                  Period
                              30/09/2003

                                 RM '000

                                  20,203

                                 (19,039)

                                        7

                                   1,171

                                    (863)

                                     308

                                      (83)

                                     225

                                        1

                                     226


                                    0.55
                                    0.55




ad in conjunction
 June 2004)
                          CHEE WAH CORPORATION BERHAD (32250-D)
                          (Incorporated in Malaysia)




                               CONDENSED CONSOLIDATED BALANCE SHEETS

                                                                               Unaudited
                                                                             As At End Of            As At Preceding
                                                                                  Current             Financial Year
                                                                                  Quarter
                                                                              30/09/2004
                                                                                  RM'000
Property, Plant and Equipment                                                     61,421
Intangible Assets                                                                     21
Goodwill on Consolidation                                                          4,754
Deferred Tax Assets                                                                  355

Current Assets
     Inventories                                                                  36,448
     Trade and other receivables                                                  14,532
    Tax recoverable                                                                  123
    Deposits, cash & bank balances                                                   632
                                                                                  51,735

Current Liabilities
     Trade and other payables                                                      5,859
     Short term borrowings                                                        48,119
     Provision for taxation                                                          138
                                                                                  54,116

Net Current Liabilities                                                            (2,381)

                                                                                  64,170

Shareholders' Equity
   Share capital                                                                  42,097
   Reserves                                                                        1,400
                                                                                  43,497

Minority Interest                                                                  1,065
Long Term Borrowings                                                              16,218
Deferred Liabilities                                                               3,390

                                                                                  64,170

Net Tangible Assets per Share (sen)                                                    92




                     (The Condensed Consolidated Balance Sheets should be read in conjunction with
                            the Annual Financial Statements for the year ended 30 June 2004)
check balance   0
SHEETS

                              Audited
                      As At Preceding
                       Financial Year
                                  End
                          30/06/2004
                              RM'000
                             62,457
                                 21
                              4,814
                                291


                             34,777
                             13,174
                                163
                                328
                             48,442


                              6,484
                             43,158
                                 60
                             49,702

                              (1,260)

                             66,323


                             42,097
                              1,900
                             43,997

                              1,048
                             17,684
                              3,594

                             66,323

                                 93




 n conjunction with
June 2004)
0
                           CHEE WAH CORPORATION BERHAD (32250-D)
                           (Incorporated in Malaysia)




                              CONDENSED CONSOLIDATED CASH FLOW STATEMENT

                                                                                          Current            Preceding Year
                                                                                            Year              Corresponding
                                                                                 3 Months Ended              3 Months Ended
                                                                                      30/09/2004                 30/09/2003
                                                                                         RM '000                   RM '000


(Loss)/Profit before tax                                                                    (645)                      308

Adjustments for non - cash flow items :

Non-cash items                                                                             1,262                     1,974
Non-operating items                                                                          947                        64
Operating profit before changes in working capital                                         1,564                     2,346

Changes in working capital
        Net change in current assets                                                      (2,973)                       89
        Net change in current liabilities                                                   (529)                    1,317
        Interest paid                                                                     (1,021)                     (826)
        Tax paid                                                                             (70)                      (13)
        Retirement benefit paid                                                               (1)                       (3)
Net cash flows (used in)/from operating activities                                        (3,030)                    2,910

Investing activities
         Equity investments                                                                  -                         -
         Other investments                                                                   (70)                   (4,299)
Net cash flows used in investing activities                                                  (70)                   (4,299)

Financing activities
        Transactions with owners as owners                                                   -                         394
        Bank borrowings                                                                    3,720                      (346)
Net cash flows from financing activities                                                   3,720                        48

Net change in cash and cash equivalents                                                     620                     (1,341)

Effects of Exchange Rate Changes                                                               2                        (8)

Cash and cash equivalents at beginning of the period                                     (12,522)                   (5,906)

Cash and cash equivalents at end of the period                                           (11,900)                   (7,255)

Cash and cash equivalents at end of the period consist of :-
Deposits, cash & bank balances                                                               632                       408
Bank overdrafts                                                                          (12,532)                   (7,663)
                                                                                         (11,900)                   (7,255)




                    (The Condensed Consolidated Cash Flow Statement should be read in conjunction with the
                                Annual Financial Statements for the year ended 30 June 2004)
                              CHEE WAH CORPORATION BERHAD (32250-D)
                              (Incorporated in Malaysia)




                           CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY




                                                                     Non Distributable                       Distributable
3 months quarter ended                Share            Share     Revaluation   Other capital    Exchange         Retained
30 September 2003                     capital       premium          reserve        reserve      Reserve            profit      Total
                                     RM '000        RM '000         RM '000        RM '000       RM '000         RM '000      RM '000

Balance as at 01/07/2003             41,145                149         319               556           (2)           2,688    44,855


Movements during the period             295                 9             -                -           3              226        533


Balance as at 30/09/2003             41,440                158         319               556           1             2,914    45,388




                                                                     Non Distributable                       Distributable
3 months quarter ended                Share            Share     Revaluation   Other capital    Exchange         Retained
30 September 2004                     capital       premium          reserve        reserve      Reserve            profit      Total
                                     RM '000        RM '000         RM '000        RM '000       RM '000         RM '000      RM '000

Balance as at 01/07/2004             42,097                164         319               556          16              845     43,997


Movements during the period                -                 -            -                -           2              (502)     (500)


Balance as at 30/09/2004             42,097                164         319               556          18              343     43,497




                     (The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with
                                  the Annual Financial Statements for the year ended 30 June 2004)
                          CHEE WAH CORPORATION BERHAD (32250-D)
                          (Incorporated in Malaysia)




                       EXPLANATORY NOTES TO CONDENSED FINANCIAL STATEMENTS
PART A : REQUIREMENTS OF MASB 26 INTERIM FINANCIAL REPORTING

A1 Accounting Policies and Methods of Computation

     These interim financial statements are unaudited and have been prepared in accordance with MASB 26, Interim Financial
     Reporting and paragraph 9.22 of the Bursa Malaysia Securities Berhad ("BMSB") Listing Requirements, and should be read in
     conjunction with the Group's annual financial statements for the year ended 30 June 2004. These explanatory notes attached to
     the interim financial statements provide an explanation of events and transactions that are significant to an understanding of the
     changes in the financial position and performance of the Group since the financial year ended 30 June 2004.
     The accounting policies and presentation adopted for the interim financial statements are consistent with those adopted for the
     annual financial statements for the year ended 30 June 2004.

A2 Qualification of Financial Statements
   The auditors' report of the preceding annual financial statements was not subject to any qualification.

A3    Seasonal or Cyclical Factors
     Due to the nature of its products and the market demand, the Group's revenue is lower in the third quarter as compared to the
     remaining quarters in the financial year.

A4 Nature and Amount of Unusual Items
   There are no items affecting the current quarter's assets, liabilities, equity, net income or cash flows that are unusual because
   of their nature, size or incidence.

A5 Nature and Amount of Changes in Estimates
   There are no major changes in estimates from those of the prior financial year which have a material effect in the current
   quarter.

A6 Issuance, Cancellations, Repurchases, Resale and Repayments of Debt and Equity Securities
   There were no issuance, cancellation, repurchase, resale and repayment of debt and equity securities during the current
   quarter.

A7 Dividends paid
   No dividend was paid during the current quarter.

A8 Segment Information
   The Group's activities fall within one business segment and are predominantly carried out in Malaysia. Apart from revenue from
   external customers by location of customers which are shown below, the required segmental information has already been
   disclosed in the interim financial statements:
                                                                                                Current Year
                                                                                                     Quarter
                                                                                                     RM'000
   Malaysia                                                                                           11,683
   Middle East countries                                                                               1,336
   Other Asia-Pacific countries                                                                        5,544
   European countries                                                                                  1,883
                                                                                                      20,446

     The directors are of the opinion that all inter-segment transfers have been entered into in the normal course of business and
     have been established on terms and conditions that are not materially different from that obtainable in transactions with
     unrelated parties. Those transfers are eliminated on consolidation.
                          CHEE WAH CORPORATION BERHAD (32250-D)
                          (Incorporated in Malaysia)




                        EXPLANATORY NOTES TO CONDENSED FINANCIAL STATEMENTS
A9 Valuation of Property, Plant and Equipment
   The property, plant and equipment which were revalued have been brought forward from the previous financial statements and
   there were no revaluation of property, plant and equipment during the current quarter.

A10 Material Subsequent Events
    There were no material events subsequent to the end of the current quarter that have not been reflected in the financial
    statements for the current quarter.

A11 Effect of Changes in the Composition of the Group
    There were no changes in the composition of the Group for the financial quarter under review such as business combination,
    acquisition or disposal of subsidiaries and long term investments, restructurings and discontinuing operations.



A12 Contingent Liabilities or Assets
    The contingent liabilities for the Group are as follows :
                                                                                                       Quarter
                                                                                                        Ended
                                                                                                    30/09/2004
                                                                                                       RM'000
     Bills Discounted                                                                                      96

     There were no contingent assets as at the end of the current quarter or last financial year ended 30/06/2004.


PART B : REQUIREMENTS OF PARA 9.22 BMSB LISTING REQUIREMENTS

B1 Review of Performance
   Revenue for the current quarter amounting to RM20.446 million was higher than the RM20.203 million posted in the preceding
   year corresponding quarter by RM0.243 million. The Group recorded a net loss amounting to RM0.502 million in the current
   quarter as compared to a profit of RM0.226 million posted in the preceding year corresponding quarter. The net loss was mainly
   due to higher manufacturing cost and finance cost.

B2 Comparison with Immediate Preceding Quarter's Results
   The Group recorded a loss before tax of RM0.645 million in the current quarter as compared to a loss before tax of RM1.391
   million recorded in the immediate preceding quarter. The loss was mainly due to higher manufacturing cost and finance cost.
   There are no other exceptional operational or economic factors which have contributed to any changes in the results of the
   current quarter.

B3 Current Year Prospects
   Barring any unforeseen circumstances, the Board expects the Group will maintain the current performance for the remaining
   quarters for the financial year ending 30 June 2005.

B4 Profit Forecast
   There were no profit forecast published.
                         CHEE WAH CORPORATION BERHAD (32250-D)
                         (Incorporated in Malaysia)




                       EXPLANATORY NOTES TO CONDENSED FINANCIAL STATEMENTS
B5 Taxation
   Breakdown of taxation as at 30 September 2004 is as follows :-
                                                                                                      Current Year
                                                                                                           Quarter
                                                                                                           RM '000
     Income tax                                                                                                (113)
     Deferred tax                                                                                               273
                                                                                                                160
     The Company provided an income tax expense of RM113,000 in view of profit recorded in certain subsidiaries. The effective tax
     rate of 25% for the current year quarter is lower than the statutory tax rate mainly due to the availability of tax incentives.

B6 Sale of Unquoted Investments and/or Properties
   There were no sale of unquoted investments and/or properties for the current quarter and financial year to date.

B7 Purchases and sales of quoted securities
   There were no purchases or sales of quoted securities for the current quarter and financial year to date.

B8 Status of corporate proposal
   The Company, through Affin Merchant Bank Berhad, has announced on 21/09/2004 its intention to undertake the followings-
   (a) proposed amendments to the Articles of Association of the Company, and
   (b) proposed amendments to the existing By-Laws governing the employee share option scheme ("ESOS") of the Company.
   (c) proposed grant of options to non-executive directors of the Company pursuant to the ESOS.

     Other than the above, there were no corporate proposals which have been announced but not completed as at 12/11/2004.

B9 Group Borrowings and Debt Securities
   Group borrowings as at 30 September 2004 are as follows:-
                                                                                                      Secured
     a)    Short term borrowings                                                                      RM'000
           Bank overdrafts                                                                               631
           Bankers' acceptances and trust receipts                                                          -
           Export credit refinancing                                                                        -
           Revolving credit                                                                                 -
           Hire purchase payable                                                                       1,496
           Current portion of term loan                                                                5,360
                                                                                                       7,487

     b)    Long term borrowings
           Hire Purchase Payable                                                                        5,091
           Term loan                                                                                   11,127
                                                                                                       16,218
     c)    All borrowings are denominated in Ringgit Malaysia.

B10 Off Balance Sheet Financial Instruments
    The financial instruments with off balance sheet risk as at 12 November 2004 are as follows:-

           Instrument                                   Contract date           Terms          RM equivalent
           Foreign Exchange Forward Contract              Various           1 - 6 months       RM3,138,800

     There are no significant market risks associated with the disclosed instruments while the exchange gains or losses on forward
     contract are recognised in the Income Statements upon realisation.
                         CHEE WAH CORPORATION BERHAD (32250-D)
                         (Incorporated in Malaysia)




                       EXPLANATORY NOTES TO CONDENSED FINANCIAL STATEMENTS

B11 Changes in Material Litigation
    The Group is not engaged in any material litigation as at 12 November 2004.

B12 Dividend
    No interim dividend has been recommended.

B13 Loss Per Share
                                                                                                      Current
                                                                                                        Year
                                                                                                      Quarter

     Net loss for the period (RM'000)                                                                    (502)

     Number of ordinary shares ('000)
         As at beginning of the period                                                                42,097
         Effects of weighted average number of shares issued during the year                             -
         Basic weighted average number of shares                                                      42,097
         Effect of share options                                                                        (117)
         Diluted weighted average number of shares                                                    41,980

     Basic loss per share (sen)                                                                         (1.19)

     Diluted loss per share (sen)                                                                       (1.19)

     The effect on the basic loss per share for the current year quarter and year-to-date arising from the assumed conversion of the
     outstanding ESOS option to ordinary shares is anti-dilutive. Accordingly, the diluted loss per share is presented as equal to
     basic loss per share respectively.

Authorisation For Issue
    The Interim Financial Statements were authorised for issue by the Board of Directors in accordance with a resolution of the
    directors on 18 November 2004.



BY ORDER OF THE BOARD



ANG JOO SEONG (MIA 10160)
CHAI CHURN HWA (MAICSA 0811600)
Company Secretaries

Penang
18th November 2004
AL STATEMENTS




ccordance with MASB 26, Interim Financial
Listing Requirements, and should be read in
e 2004. These explanatory notes attached to
hat are significant to an understanding of the
ear ended 30 June 2004.
nts are consistent with those adopted for the




 any qualification.


ower in the third quarter as compared to the




me or cash flows that are unusual because



 which have a material effect in the current



ebt and equity securities during the current




ied out in Malaysia. Apart from revenue from
ed segmental information has already been

                                Current Year
                                    To Date
                                     RM'000
                                      11,683
                                       1,336
                                       5,544
                                       1,883
                                      20,446

d into in the normal course of business and
nt from that obtainable in transactions with
AL STATEMENTS

d from the previous financial statements and
er.


hat have not been reflected in the financial




under review such as business combination,
d discontinuing operations.




                                 Financial
                                Year ended
                                30/06/2004
                                   RM'000
                                      973

al year ended 30/06/2004.




he RM20.203 million posted in the preceding
amounting to RM0.502 million in the current
rresponding quarter. The net loss was mainly




s compared to a loss before tax of RM1.391
higher manufacturing cost and finance cost.
ributed to any changes in the results of the




n the current performance for the remaining
AL STATEMENTS


                                   Current Year
                                        To Date
                                       RM '000
                                          (113)
                                           273
                                           160
rded in certain subsidiaries. The effective tax
ue to the availability of tax incentives.


er and financial year to date.


nancial year to date.


4 its intention to undertake the followings-

ption scheme ("ESOS") of the Company.
o the ESOS.

ced but not completed as at 12/11/2004.




                                    Unsecured
                                      RM'000
                                      11,901
                                      27,258
                                         466
                                       1,000
                                            -
                                           7
                                      40,632


                                               -
                                               -
                                               -




s follows:-

                            Foreign currency
                              USD826,000

hile the exchange gains or losses on forward
AL STATEMENTS




                                    Current
                                       Year
                                    To Date

                                      (502)


                                    42,097
                                       -
                                    42,097
                                      (117)
                                    41,980

                                      (1.19)

                                      (1.19)

e arising from the assumed conversion of the
ted loss per share is presented as equal to




ctors in accordance with a resolution of the

								
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