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HAISAN RESOURCES BERHAD

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									HAISAN RESOURCES BERHAD
Company No. 502213-D

Notes to the Third Quarterly Report
For The Financial Period Ended 30 September 2002

NOTES TO MASB 26: INTERIM REPORT

   1. Basis of preparation
      The interim financial report is unaudited and has been prepared in accordance with MASB
      26 Interim Financial Reporting and Chapter 9 part K of the Listing Requirements of Kuala
      Lumpur Stock Exchange. The same accounting policies and methods of computation are
      followed in the interim financial statements as compared with the annual financial
      statements for the year ended 31 December 2001.

   2. Status of Annual Report 2001
      The audit report of Group’s most recent annual audited financial statements for the year
      ended 31 December 2001 was not qualified.

   3. Seasonal or cyclical factors
      The business operations of the Group were not affected by any seasonal or cyclical factors
      during the financial period under review.

   4. Unusual items
      There were no unusual items affecting assets, liabilities, equity, net income or cash flows
      during the financial period under review.

   5. Changes in estimates
      There were no changes in estimates of amounts reported in prior quarters of the current
      financial year or changes of amounts reported in prior financial years that have material
      effect in the current quarter.

   6. Issuance/repayment of debts and equity securities
      There were no issuance, cancellations, repurchases, resale and repayments of debt and
      equity securities for the current quarter and financial period-to date.

   7. Dividends paid
      The first and final dividend of 5 sen per share less 28% income tax amounting to
      RM1,440,000 in respect of the financial year ended 31 December 2001 was paid on 23 July
      2002.




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HAISAN RESOURCES BERHAD
Company No. 502213-D

Notes to the Third Quarterly Report
For The Financial Period Ended 30 September 2002

   8. Segmental reporting
                                                                     Temperature
                                                                      controlled
                                                         Ice           logistics/                Total before                  Consolidated
                                       Engineering   manufacturing   warehousing    Others       elimination    Eliminations     amount
                                        RM'000         RM'000          RM'000       RM'000         RM'000         RM'000         RM'000


      REVENUE
      External sales                       8,539            8,059       11,870          -           28,468            -            28,468
      Inter-segment sales                  1,384            1,053        2,534           98          5,069         (5,069)            -
      Total revenue                        9,923            9,112       14,404           98         33,537         (5,069)         28,468

      RESULTS
      Segment result                       1,779            1,620         2,533        (269)         5,663             (33)         5,630
      Finance costs                          (74)            (146)       (1,399)        -           (1,619)            -           (1,619)
      Share of associates results            (56)              (3)         (376)        120           (315)            -             (315)
      Profit/(loss) before taxation        1,649            1,471           758        (149)         3,729             (33)         3,696
        and minority interest
      Taxation                              (511)            (341)         (244)        -           (1,096)            -           (1,096)
      Profit/(loss) after taxation         1,138            1,130           514        (149)         2,633             (33)         2,600
        before minority interest
      Minority interests                      -               (44)           (25)            6          (63)           -              (63)

      Net profit/(loss) for the year       1,138            1,086           489        (143)         2,570             (33)         2,537



   9. Valuations of Property, Plant and Equipment
      The valuations of land and buildings have been brought forward, without amendment from
      the most recent annual audited financial statements for the year ended 31 December 2001.
      The carrying value is based on a valuation carried out in year 2000 by independent qualified
      valuers less depreciation.

   10. Material events subsequent to end of the interim period
      There are no material events since the end of the financial period ended 30 September 2002
      up to the date of this announcement other than:-

      a) On 28 October 2002, the Company has entered into a Memorandum of Understanding
         with LSH Logistics Support House for the purpose of engaging in the business of :-
         i.     Refrigeration engineering
         ii.    Cold room and multi temperature control facilities
         iii.   General warehousing and logistics services

      b) On 20 November 2002, the Company entered into a Sale and Purchase Agreement to
         disposed 980,000 ordinary shares in SembCorp Logistics (M) Sdn Bhd (“SembCorp”)
         for cash consideration of RM398,222. As a result from the disposal, SembCorp ceased
         to be an associate of the Company.




                                                                                                                               2
HAISAN RESOURCES BERHAD
Company No. 502213-D

Notes to the Third Quarterly Report
For The Financial Period Ended 30 September 2002

   11. Effects of changes in the composition of the company during the interim period.
      a) On 14 January 2002, the Company’s subsidiary, Iglo (M) Sdn Bhd [“Iglo (M)”] entered
          into a Shareholders’ Agreement to set up a joint venture company engaging in the cold
          supply chain business and other related services in Philippines

      b) On 1 February 2002, the Company’s subsidiary, Hai San Ice Industries Sdn Bhd entered
         into a share sale agreement with Sam Lian Hup Ice Merchants Sdn Bhd for the purchase
         of 40,000 ordinary shares of RM1.00 each representing 10% of total paid-up capital of
         Pontian Ice Factory Sdn Bhd (“Pontian Ice”) for a total cash consideration of
         RM112,000. And on 20 March 2002, it further subscribed additional 400,000 ordinary
         shares of RM1.00 each in Pontian Ice at total subscription price of RM400,000.

      c) On 5 February 2002, the Company has subscribed 153,000 ordinary shares of RM1.00
         each representing 51% of the total paid-up capital of HSA Industries Sdn Bhd (“HSA”)
         at total subscription price of RM153,000. HSA is involved in the business of
         manufacturing and marketing of tube ice in the state of Malacca.

      d) On 8 February 2002, the Company has incorporated a 95% subsidiary company, Iglo
         International Limited (“Iglo International”) with initial paid-up capital of USD10,000.
         Iglo International is incorporated in Cayman Islands and will be used to invest and
         subscribe in the joint venture company in Philippines.

         On 29 July 2002, Iglo International had subscribed for part of its portion of equity
         interests of 25,000,000 common shares of Philippine Pesos (“Php”) 1.00 each in
         Integrated Global Low Temp Operations Phils. Inc (“Iglo Philippines”). Subsequently
         on 12 September 2002, Iglo International subscribed for the balance of 35,000,000
         common shares of Php 1.00 each at an issue price of Php 1.00 per common share. With
         the above subscriptions, Iglo International holds 37.5% equity interests in Iglo
         Philippines.

         On 20 September 2002, the Company acquired additional 500 ordinary shares of
         USD1.00 each in Iglo International from Mr Raymond A.E.de Graaf for consideration
         of USD1.00 per share. The acquisition resulted in Iglo International becoming a wholly
         owned subsidiary of the Company.

      e) On 19 August 2002, Haisan Sdn Bhd, a wholly owned subsidiary company had entered
         into a share sale Agreement to dispose its entire 30% equity interest in Mid-Vale
         Consolidated Sdn Bhd comprising 150,000 ordinary shares of RM1.00 each to Mr Lai
         Chee Hong for total cash consideration of RM150,000

      f) On 28 August 2002, the Company has subscribed 200,000 ordinary shares of RM1.00
         each in Asia Mewah Resources Sdn Bhd (“Asia Mewah”), representing 50% of the total
         paid-up capital of 400,000 ordinary shares for subscription price of RM200,000. The
         principal activity of Asia Mewah consists of ice manufacturing.


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HAISAN RESOURCES BERHAD
Company No. 502213-D

Notes to the Third Quarterly Report
For The Financial Period Ended 30 September 2002

   12. Contingent liabilities and contingent assets
      The Company provided corporate guarantee amounting to RM57,044,000 in favour of
      financial institutions for credit facilities granted to subsidiaries (As at 31 December 2001 :
      RM33,768,000).


NOTES TO KLSE REVISED LISTING REQUIREMENTS

   13. Performance review
      For the third quarter under review, the Group registered consolidated revenue of RM9.9
      million and pre-tax profit of RM1.6 million as compared to RM10.1 million revenue and
      RM1.6 million pre-tax profits in the preceding year corresponding quarter. The marginal
      decrease in revenue was mainly attributable to lower contribution from the engineering
      division.

      For the 9 months ended 30 September 2002, the Group recorded a consolidated revenue of
      RM28.5 million as compared to RM25.1 million registered in the preceding corresponding
      9 months period. The increase of RM3.4 million or 14% was due mainly to the increase in
      revenue registered by Temperature-controlled logistics (“TCL”)/warehousing division of
      about RM4.8 million. During the 9 months period, the TCL/warehousing division enjoyed
      full 9 months revenue from Iglo (M) compared to only three months revenue figure in the
      preceding 9 months period. This was because Iglo (M) became an 80% subsidiary company
      only on July 2001.

      Despite registering an increase in revenue, pre-tax profit was lower at RM3.7 million as
      compared to RM5.3 million recorded in the preceding corresponding 9 months period. The
      drop was mainly due to higher interest costs and lower other income of RM834,000 and
      RM402,000 respectively.

   14. Material change in quarterly results
      For the third quarter, the Group registered consolidated revenue of RM9.9 million and pre-
      tax profit of RM1.6 million as compared to RM9.4 million revenue and RM1.1 million pre-
      tax profit in the preceding quarter. Engineering division recorded better results due to
      higher margin of return for certain contracts completed during the period. TCL operated
      under Iglo (M) continues to show better performance, as there is a high demand for TCL
      services in the market. This was evidenced by the occupancy rate for the cold room during
      the past nine months.

   15. Future prospects
      With the growing competition, the Group is expecting challenging time ahead.
      Nevertheless, the Board is confident that the Group has all the fundamental strengths to
      successfully meet the challenges ahead.

      Baring any unforeseen circumstances, the Directors are confident that the results for this
      year will be positive.

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HAISAN RESOURCES BERHAD
Company No. 502213-D

Notes to the Third Quarterly Report
For The Financial Period Ended 30 September 2002

   16. Profit forecast
      Not applicable in this Quarterly Report

   17. Taxation
                                                         Current     Financial period
                                                         quarter         to-date
                                                         RM'000          RM'000


       Current taxation                                       318             1,040
       Deferred taxation                                       32                39
       Underprovision                                           6                17
                                                              356             1,096

      The effective tax rate is marginally higher than the statutory tax rate because certain
      expenses are not allowable for tax deduction.

   18. Profits on sale of unquoted investments and/or properties
      There were no profits on sale of unquoted investments and/or properties for this reporting
      quarter and financial period to-date.

   19. Quoted Investments
      As at 30 September 2002, the Group did not hold any quoted securities, nor there were any
      purchase or disposal of quoted securities during the reporting quarter and financial period
      to-date.

   20. Status of Corporate Proposal
      a) On 31 July 2002, Iglo International has signed a Sale and Purchase Agreement for the
          acquisition of cold storage facilities situated on a piece of leasehold land measuring
          41,700 square metre for total cash consideration of Renminbi 18,017,000 with Walls
          (China) Co. Ltd (“Walls”). At the same time, Iglo International also entered into a
          Service Contact with Walls for the provision of temperature-controlled logistics services
          for Walls ice cream in Guangzhou, China.

      b) On 19 August 2002, the Company announced that Iglo (M) had entered into a
         Memorandum of Understanding with Ecnet Limited to jointly offer multi temperature
         controlled facilities as well as the supply chain solutions and management services.




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HAISAN RESOURCES BERHAD
Company No. 502213-D

Notes to the Third Quarterly Report
For The Financial Period Ended 30 September 2002

   21. Group Borrowing And Debt Securities

      Total Group borrowing as at 30 September 2002 was as follows:
                                           Short term     Long term      Total
                                             RM'000        RM'000       RM'000


         Secured
         Term loan                              4,966       15,387       20,353
         Bank overdraft                        12,892          -         12,892
         Hire purchase/                                                     -
           lease payables                         992        1,417        2,409
                                               18,850       16,804       35,654


   22. Off Balance Sheet Risks
      There were no financial instruments with off balance sheet risk as at the date of issue of this
      report.

   23. Material Litigation
      There was no material litigation as at the date of issue of this report.

   24. Earnings per share
                                                3 months ended             9 months ended
                                              30-Sep-02    30-Sep-01     30-Sep-02    30-Sep-01
      Basic earnings per
      share
       Net profit for the
       period (RM'000)                          1,165         1,216        2,537         3,667
       Weighted average number of
       ordinary shares in issue ('000)         40,000        40,000       40,000        40,000
       Basic earnings per share (sen)              2.91         3.04             6.34     9.17


      The Group does not have in issue any financial instrument or other contract that may entitle
      its holder to ordinary shares and therefore, dilutive to its basic earnings per share.

   25. Dividend
      The Board of Directors does not recommend any interim dividend for the financial period
      ended 30 September 2002.



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