Get documents about "Agreement to Purchase Overseas Material
W
Description
Agreement to Purchase Overseas Material document sample
Document Sample
FUTUTECH BERHAD (122592-U)
(Incorporated in Malaysia)
NOTES TO THE INTERIM FINANCIAL REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER
2003
INFORMATION REQUIRED BY MASB 26
A1. Basis of Preparation
This interim financial report has been prepared in accordance with MASB 26: Interim Financial
Reporting and Chapter 9 of the Listing Requirements of Kuala Lumpur Stock Exchange.
This interim financial report should be read in conjunction with the audited financial statements for
the year ended 31 December 2002. The accounting policies and methods of computation adopted in
this interim financial report are consistent with those adopted in the annual financial statements
for the financial year ended 31 December 2002.
A2. Audit Report
The audited financial statements of the Company for the preceding financial year ended 31
December 2002 was not subject to any qualification.
A3. Seasonal or Cyclical Factors
The principal business operations of the Group are not significantly affected by any seasonal or
cyclical factors.
A4. Unusual Items
There were no unusual items during the current financial quarter affecting the assets, liabilities,
equity, net income or cashflow of the Group.
A5. Changes in Estimates
There were no estimations of amount used in the previous interim reports having a material impact
in the current interim reports.
A6. Debt and Equity Securities
There were no issuance or repayment of any debt and equity securities, share buy-backs, share
cancellations, shares held as treasury shares and resale of treasury shares for the current financial
year-to-date, except for 7,000 ordinary shares of RM1.00 each issued pursuant to the existing
Employee Share Option Scheme ("ESOS") with the exercise price of RM1.00 per share during the
previous quarter ended 31 March 2003.
A7. Dividends Paid
A final dividend in respect of the financial year ended 31 December 2002 of 3% tax exempt on
57,555,357 ordinary shares amounting to a total dividend of RM1,726,661 was paid on 31 July
2003.
Page 1 of 6
FUTUTECH BERHAD (122592-U)
(Incorporated in Malaysia)
NOTES TO THE INTERIM FINANCIAL REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER
2003
A8. Segmental Information
The Group's operations are substantially in the manufacturing sector. The following analysis of
activities are based on geographical basis.
Quarter Year-to-Date
Ended Ended
30.09.2003 30.09.2003
(RM'000) (RM'000)
Segment Revenue
-- Malaysia 12,064 32,000
-- Other Countries 5,223 11,685
Group Revenue 17,287 43,685
Segment Results
-- Malaysia 272 (2,050)
-- Other Countries 676 1,132
Profit / (Loss) from Operations 948 (918)
A9. Valuations of Property, Plant and Equipment
There were no amendments in the valuation amount of revalued assets brought forward from the
previous audited financial statements.
A10. Subsequent Material Events
There were no material events in the interval between the end of the current financial quarter and
11 November 2003.
A11. Changes in Composition of the Group
There were no material changes in the composition of the Group during the current financial
quarter.
A12. Changes in Contingent Liabilities or Contingent Assets
As at 30 September 2003, the Company has given corporate guarantees amounting to RM21.0
million (as at 31 December 2002 : RM11.5 million) to financial institutions for credit facilities
granted to certain subsidiary companies.
A13. Capital Commitments
As at
30.09.2003
(RM'000)
Plant and equipment :
Contracted but not provided for 3,400
Page 2 of 6
FUTUTECH BERHAD (122592-U)
(Incorporated in Malaysia)
NOTES TO THE INTERIM FINANCIAL REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER
2003
ADDITIONAL INFORMATION REQUIRED BY THE LISTING REQUIREMENTS OF KUALA LUMPUR
STOCK EXCHANGE
B1. Review of Performance
For the current financial quarter, the Group recorded a slight increase of RM0.61 million in revenue
to RM17.29 million as compared to the preceding year's corresponding quarter of RM16.68 million.
This is mainly due to the contribution from the Group's UK operations and improved local sales of
lighting products. However, profit before tax declined to RM0.74 million vis-à-vis RM2.44 million in
the corresponding quarter, as a result of higher operating costs which is partially attributable to the
setting up of a new factory here in Malaysia.
The results of the Group for the current financial quarter were not, in the opinion of the Board,
substantially affected by any item, transaction or event of a material or unusual nature.
B2. Comparison of Profit Before Taxation for the Current Quarter with Immediate Preceding
Quarter
Preceding
Quarter Quarter
ended ended
30.09.2003 30.06.2003
(RM'000) (RM'000)
Revenue 17,287 13,174
Consolidated Profit/(Loss) Before Tax 736 (2,141)
The Group achieved a 31.22% improvement in its revenue, from RM13.17 million in the preceding
quarter to RM17.29 million in the current quarter. The main contributing factor is increased sales
of point-of-sale products both here locally and overseas. With this, the Group registered a positive
turnaround, from a loss before tax of RM2.14 million in the preceding quarter to a profit before
taxation of RM0.74 million.
B3. Prospects
With the improved global economic sentiment and hence, the market demands, the Group
anticipates better sales performance for the last quarter of the year. On the other hand, the medical
division will not be making any financial contribution to the Group for the current financial year
ending 31 December 2003.
The anticipated commercial launch of the Futura Safety Syringe by Medisys Group has now been
further delayed. On 26 September 2003, Medisys Group (being the patent holder of the safety
syringe and the party to our OEM agreement for the purchase of the said safety syringe) announced
that it has terminated the Co-Marketing agreement with Smiths Group Plc. Medisys Group will
make further announcement once it has formalized its alternative plans.
Notwithstanding the above development, we will continue to focus on completing our production
process validation and develop our markets in Malaysia, Singapore and China.
Page 3 of 6
FUTUTECH BERHAD (122592-U)
(Incorporated in Malaysia)
NOTES TO THE INTERIM FINANCIAL REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER
2003
B4. Profit Forecast
Not applicable as no profit forecast was published.
B5. Taxation
Quarter Year-to-Date
ended ended
30.09.2003 30.09.2003
(RM'000) (RM'000)
Current Taxation 263 284
Taxation over-provided in respect of prior years (153) (153)
Deferred Taxation 29 237
139 368
The effective rate of taxation of the Group is higher than the statutory rate of taxation principally
due to deferred tax charged to the profit and loss account. The taxation charge of the Group is
principally due to losses of certain subsidiaries which cannot be set-off against profit made by other
companies in the Group as no group relief is available.
B6. Profit on Sale of Unquoted Investments and/or Properties
There was no sale of unquoted investments and/or properties during the current financial quarter.
B7. Quoted Securities
There was no purchase or sales of quoted securities during the current financial quarter and
financial year-to-date.
Investments in quoted securities as at 30 September 2003 are as follows :-
RM
At cost 1,494,800
At carrying value 1,247,000
At market value 1,333,800
B8. Status of Corporate Proposals
The disposal of a leasehold land measuring approximately 4 acres together with a factory building
erected thereon to Industrial Concrete Products Berhad for a total cash consideration of RM8.0
million was completed on 7 October 2003.
As of 11 November 2003, the proposed joint-venture between the Company and DNP Engineering
Co. Ltd., in relation to a proposed set-up for the production and marketing of globe lighting, street
lighting and other related outdoor lighting products in the People's Republic of China is pending
completion.
Page 4 of 6
FUTUTECH BERHAD (122592-U)
(Incorporated in Malaysia)
NOTES TO THE INTERIM FINANCIAL REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER
2003
B9. Group Borrowings and Debt Securities
As at
30.09.2003
(RM'000)
a) Secured borrowings 21,046
Unsecured borrowings 783
21,829
b) Short term
- bank overdraft 6,067
- trade facilities 491
- hire purchase creditors 556
- term loans 3,355
10,469
Long term
- hire purchase creditors 2,296
- term loans 9,064
11,360
Total Borrowings 21,829
B10. Off Balance Sheet Financial Instruments
There are no financial instruments with off balance sheet risk issued as at 11 November 2003.
B11. Material Litigation
There is no pending material litigation as at 11 November 2003.
B12. Dividends
No interim dividend has been declared for the current financial quarter.
Page 5 of 6
FUTUTECH BERHAD (122592-U)
(Incorporated in Malaysia)
NOTES TO THE INTERIM FINANCIAL REPORT FOR THE THIRD QUARTER ENDED 30 SEPTEMBER
2003
B13. Earnings / (Losses) Per Share
Quarter Ended Year-to-Date Ended
30.09.2003 30.09.2002 30.09.2003 30.09.2002
Earnings / (Losses)
Net profit / (loss) for the period
(RM'000) 314 1,286 (2,135) 3,751
a) Basic
Issued ordinary shares at the
beginning of the period ('000) 57,548 57,204 57,548 57,204
Effect of shares issued ('000) 7 315 5 223
Weighted average number of
ordinary shares ('000) 57,555 57,519 57,553 57,427
Basic earnings /(losses) per
share (Sen) 0.54 2.23 (3.71) 6.53
b) Diluted
Weighted average number of
ordinary shares ('000) 57,555 57,519 57,553 57,427
Effect of share options ('000) 737 1,081 737 1,081
Weighted average number of
ordinary shares (diluted) ('000) 58,292 58,600 58,290 58,508
Fully diluted earnings / (losses)
per share (Sen) 0.54 2.19 N/A* 6.41
* The effect on the basic losses per share for the current year-to-date arising from the
assumed Employee Share Option Scheme is anti-dilutive. Accordingly, diluted losses per
share for the current year-to-date has not been presented.
Page 6 of 6
Related docs
