INNOVALUES LIMITED (Company Registration No E)

Transcription

1 INNOVALUES LIMITED (Company Registration No E) FOURTH QUARTER AND TWELVE MONTHS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2011 PART I INFORMATION REQUIRED FOR QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR ANNOUNCEMENTS 1(a)(i) A statement of comprehensive income, for the, together with a comparative statement for the corresponding period of the immediately preceding financial year CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR: 3 months ended 31 Dec Full year ended 31 Dec Note Change Change % % Revenue 21,089 22,455 (6.1)% 87, ,458 (12.7)% Cost of sales (18,507) (20,159) (8.2)% (76,537) (86,315) (11.3)% Gross profit 2,582 2, % 11,209 14,143 (20.7)% Other items of income Interest income 5 10 (50.0)% (48.9)% Other credits (8.4)% 1,495 1, % Other items of expenses Marketing and distribution costs (549) (591) (7.1)% (2,461) (2,865) (14.1)% Administrative expenses (2,861) (2,273) 25.9 % (9,189) (9,213) (0.3)% Finance costs 2 (260) (335) (22.4)% (1,145) (1,453) (21.2)% Other charges 1 (13,633) (188) 7,151.6 % (13,803) (292) 4,627.1 % (Loss) / profit before taxation 3 (14,389) (724) 1,887.4 % (13,871) 1,741 N.M. Income tax expense 4 (115) (57) % (351) (424) (17.2)% Net (loss) / profit (14,504) (781) 1,757.1 % (14,222) 1,317 N.M. Other comprehensive income / (loss): Exchange differences on translating foreign operations 421 (968) N.M. 240 (605) N.M. Other comprehensive income / (loss) for the period / year, net of tax 421 (968) N.M. 240 (605) N.M. Total comprehensive (loss) / income for the period / year (14,083) (1,749) % (13,982) 712 N.M. Net (loss) / profit attributable to: Owners of the parent, net of tax (14,504) (781) 1,757.1 % (14,222) 1,317 N.M. Total comprehensive (loss) / income attributable to: Owners of the parent, net of tax (14,083) (1,749) % (13,982) 712 N.M. Note: N.M. - Not meaningful Page 1

2 1(a) (ii) Note 1 Breakdown and explanatory notes to the consolidated statement of comprehensive income Other credits / (charges) comprise the following: 3 months ended 31 Dec Full year ended 31 Dec Change Change % % Other credits: Sale of waste materials (41.9)% 1,335 1, % Bad debts recoverable N.M. Foreign exchange transaction gain, net N.M. - - N.M. Fair value gain on financial instruments 18 - N.M Gain on disposal of plant and equipment - 13 N.M (61.1)% Other income 6 12 (50.0)% (15.9)% (8.4)% 1,495 1, % Other charges: Foreign exchange transaction (losses), net - (162) N.M. (147) (269) (45.4)% Fair value (loss) on financial instruments - (3) N.M Allowance for impairment on trade receivable - (10) N.M. - (10) N.M. Plant and equipment written off (33) (13) % (68) (13) % Bad debts written off (2) - N.M. (2) - N.M. Loss on disposal of plant and equipment (12) - N.M Expenses due to the flood in Thailand - Impairment loss on plant and equipment (8,320) - N.M. (8,320) - N.M. - Inventories written off (4,985) - N.M. (4,985) - N.M. - Accruals for flood related repair and restoration expenses (281) - N.M. (281) - N.M. (13,633) (188) 7,151.6 % (13,803) (292) 4,627.1 % Note 2 Finance costs comprise the following: 3 months ended 31 Dec Full year ended 31 Dec Change Change % % Interest paid and payable to banks for: - term loans (30.8)% 934 1,327 (29.6)% - bills payable % % Hire-purchase interest % % (22.4)% 1,145 1,453 (21.2)% Note 3 (Loss) / profit before taxation is stated after charging the following: 3 months ended 31 Dec Full year ended 31 Dec Change Change % % Depreciation expense 2,368 2,509 (5.6)% 9,378 10,133 (7.5)% Page 2

3 Note 4 Income tax comprises the following: 3 months ended 31 Dec Full year ended 31 Dec Change Change % % Current tax expenses : Current year (102) (67) 52.2 % (338) (434) (22.1)% Over provision in respect of prior years 38 - N.M N.M. (64) (67) (4.5)% (300) (434) (30.9)% Deferred tax expenses : Current year (51) (80) (36.3)% (51) (80) (36.3)% Over provision in respect of prior year - 90 N.M N.M. (51) 10 N.M. (51) 10 N.M. Total income tax expenses (115) (57) % (351) (424) (17.2)% Note: N.M. - Not meaningful Page 3

4 1(b)(i) A statement of financial position (for the issuer and ), together with a comparative statement as at the end of the immediately preceding financial year Note Company 31 Dec Dec Dec Dec 2010 Non-current assets Property, plant and equipment 33,805 51, Investments in subsidiaries ,385 31,385 33,805 51,670 31,533 31,598 Current assets Inventories A 14,300 17, Trade and other receivables B 16,275 17,026 15,632 15,946 Other assets 3,210 2, Cash and cash equivalents 10,688 12,054 4,197 3,783 44,473 50,015 20,055 20,111 Total assets 78, ,685 51,588 51,709 Equity attributable to owners of the parent Share capital 11,358 11,357 11,358 11,357 Retained earnings 27,052 43,311 4,356 1,432 Other reserves 2,146 1,606 1,687 1,515 Total equity 40,556 56,274 17,401 14,304 Non-current liabilities Deferred tax liabilities Interest-bearing borrowings C 4,050 7,517 3,508 6,311 Obligations under finance leases ,327 7,845 3,636 6,543 Current liabilities Income tax payable Trade and other payables 11,322 11,488 15,034 12,054 Interest-bearing borrowings C 21,853 25,914 15,400 18,667 Obligations under finance leases ,395 37,566 30,551 30,862 Total liabilities 37,722 45,411 34,187 37,405 Total equity and liabilities 78, ,685 51,588 51,709 Page 4

5 Notes to the consolidated statement of financial position Note A Inventories comprise the following: 31 Dec Dec 2010 Change % Finished goods 6,683 6,826 (2.1)% Work in progress 3,288 5,185 (36.6)% Raw materials and consumables 4,329 5,958 (27.3)% 14,300 17,969 (20.4)% Note B Trade and other receivables comprise the following: 31 Dec Dec 2010 Change % Trade receivables: Outside parties 15,619 16,937 (7.8)% Less allowance for impairment (70) (109) (35.8)% Subtotal 15,549 16,828 (7.6)% Other receivables: Other receivables % Trade and other receivables 16,275 17,026 (4.4)% Note C Interest-bearing borrowings comprise the following: 31 Dec Dec 2010 Change % Non-current: Bank loans 4,050 7,517 (46.1)% Non-current, total 4,050 7,517 (46.1)% Current: Bank loans 15,125 19,285 (21.6)% Bills payable to banks 6,728 6, % Current, total 21,853 25,914 (15.7)% Total 25,903 33,431 (22.5)% Page 5

6 1(b)(ii) Aggregate amount of s borrowings and debt securities 31 Dec Dec 2010 Secured Unsecured Total Secured Unsecured Total Amount repayable - in one year or less, or on demand ,853 21, ,914 26,064 - after one year 160 4,050 4, ,517 7, ,903 26, ,431 33,840 Details of any collateral Secured borrowings at 31 December 2011 and 31 December 2010 refer to obligations under finance leases that are secured by plant and equipment purchased under finance leases. Page 6

7 1(c) A statement of cash flows (for the ), together with a comparative statement for the corresponding period of the immediately preceding financial year Note 31 Dec Dec 2010 Operating activities (Loss) / profit before taxation (13,871) 1,741 Adjustments for: Interest expense 1,145 1,453 Interest income (23) (45) Depreciation of property, plant and equipment 9,378 10,133 Impairment loss on plant and equipment (due to flood) 8,320 - Inventories written off (due to flood) 4,985 - Gain on disposal of property, plant and equipment (7) (18) Property, plant and equipment written off Share option expense Net effect of exchange rate changes in consolidating subsidiaries 884 (1,562) Operating cash flows before changes in working capital 11,051 11,886 Changes in working capital: Inventories (1,317) (3,435) Trade and other receivables 942 7,740 Other assets (244) (1,424) Trade and other payables 391 (9,226) Cash flows from operations before interest and tax 10,823 5,541 Income tax paid (224) (227) Net cash flows from operating activities 10,599 5,314 Investing activities Proceeds from sale of property, plant and equipment Purchase of property, plant and equipment B (1,167) (2,396) Interest received Net cash flows used in investing activities (965) (2,263) Financing activities Interest paid (1,145) (1,453) Decrease in interest-bearing loans & borrowings, net (7,612) (7,983) Finance leases repayments (335) (128) Increase in cash restricted in use Dividends paid (1,909) - Process from issue of share 1 - Net cash flows used in financing activities (10,995) (9,406) Net decrease in cash and cash equivalents (1,361) (6,355) Cash and cash equivalents at beginning of the year 11,878 18,233 Cash and cash equivalents at end of the year A 10,517 11,878 Page 7

8 Notes to the consolidated statement of cash flows Note A Cash and cash equivalents comprise the following: 31 Dec Dec 2010 Cash and cash equivalents as per statement of cash flows 10,517 11,878 Cash restricted in use Cash and cash equivalents as per statement of financial position 10,688 12,054 Cash restricted in use refers to bank balances of subsidiaries held by banks to cover bank guarantees issued. Note B Purchase of property, plant and equipment: 31 Dec Dec 2010 Purchase of plant and equipment 2,316 2,437 Less: Financed by finance leases (1,149) (41) Net cash outflow from the purchase of plant and equipment 1,167 2,396 Page 8

9 1(d)(i) A statement (for the issuer and ) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalization issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year Share capital Capital reserve Share option reserve Statutory reserve Translation reserve Retained earnings Total equity $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 January ,357 1,212 1,344 1,225 (1,798) 42,051 55,391 Share option expense Total comprehensive income / (loss) for the year (605) 1, Statutory reserve (57) - Balance at 31 December ,357 1,212 1,515 1,282 (2,403) 43,311 56,274 Balance at 1 January ,357 1,212 1,515 1,282 (2,403) 43,311 56,274 Share option expense Dividends paid (1,909) (1,909) Total comprehensive income / (loss) for the year (14,222) (13,982) Statutory reserve (128) - Equity share options issued proceeds Balance at 31 December ,358 1,212 1,687 1,410 (2,163) 27,052 40,556 Company Share capital Share option reserve Retained earnings Total equity $'000 $'000 $'000 $'000 Balance at 1 January ,357 1,344 3,784 16,485 Share option expense Total comprehensive loss for the year - - (2,352) (2,352) Balance at 31 December ,357 1,515 1,432 14,304 Balance at 1 January ,357 1,515 1,432 14,304 Share option expense Dividends paid - - (1,909) (1,909) Total comprehensive income 4,833 4,833 for the year Equity share options issued proceeds Balance at 31 December ,358 1,687 4,356 17,401 Page 9

10 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. (A) Share Capital During the three months ended 31 December 2011 since the end of the previous period reported on, there was no movement in the Company s share capital. (B) Convertibles Share Options The Company has an employee share option scheme known as the Innovalues Share Option Scheme 2011 which forms an integral component of the compensation plan designed to reward and retain eligible participants whose services are vital to its well-being and success. During the three months ended 31 December 2011, since the end of the previous period reported on, 780,000 share options granted to employees that had not yet vested were cancelled. There was no further movement in the outstanding share options issued. As at 31 December 2011, there were 12,830,000 outstanding share options which would entitle the holders to subscribe for a total of 12,830,000 ordinary shares of the Company (31 December 2010: 10,020,000). Save as disclosed above, the Company has no other outstanding convertibles and treasury shares as at 31 December 2011 and 31 December (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. The Company has no treasury shares as at 31 December 2011 and 31 December The total number of issued shares excluding treasury shares as at 31 December 2011 was 318,214,000 (31 December 2010: 318,194,000). 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 auditing standard or practice The figures have not been audited or reviewed by the auditors of the Company. 3 Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter) Not applicable Page 10

11 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 and the Company have adopted the same accounting policies and methods of computation in the financial statements for the current period compared with the audited financial statements for the year ended 31 December 2010 except for the adoption of accounting standards (including its consequential amendments) and interpretations applicable for the financial year beginning 1 January 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 The adoption of the new and revised FRSs (including its consequential amendments) and interpretations is assessed to have no material impact on the results of the and of the Company for the year ended 31 December Earnings per ordinary share of the for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends Earnings / (loss) per ordinary share of the, after deducting any provision for preference dividends (in cents): (a) Based on the weighted average number of ordinary shares on issue 3 months ended 31 Dec Full year ended 31 Dec (4.56) (0.25) (4.47) 0.41 (b) On a fully diluted basis (4.56) (0.25) (4.47) 0.41 Earnings / (loss) per share (rounded to 2 decimal places) for the financial year ended 31 December 2011 is computed based on the weighted average number of ordinary shares in issue during the year of 318,214,000 (31 December 2010: 318,194,000). Diluted earnings per share (rounded to 2 decimal places) for the financial year ended 31 December 2011 is computed based on the adjusted weighted average number of ordinary shares in issue during the year of 318,214,000 (31 December 2010: 319,154,000). 7 Net asset value (for the issuer and ) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the (a) current financial period reported on and (b) immediately preceding financial year Net asset value per ordinary share based on issued share capital at the end of the financial year (in cents) Company 31 Dec Dec Dec Dec Net asset value per ordinary share as at 31 December 2011 is calculated based on the existing issued share capital of 318,214,000 ordinary shares outstanding as at 31 December 2011 (31 December 2010: 318,194,000). Page 11

12 8 A review of the performance of the, to the extent necessary for a reasonable understanding of the s business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the 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 during the current financial period reported on Income Statement Overview For the 3 months ended 31 December 2011 ( 4Q11 ), the recorded a net loss attributable to shareholders of approximately S$14.5 million as compared to a net loss of S$781,000 in the corresponding period ( 4Q10 ). The substantial loss was primarily due to the impact of the severe floods in Thailand which had adversely affected the s performance. The temporary halt of operations in our Thailand plant in the fourth quarter of 2011 had brought a loss of revenue as well as other flood-related impairment and restoration charges totalling S$13.6 million. The had assessed and quantified the impairment of plant and equipment to be S$8.3 million, inventories written off to be S$5.0 million and repair and restoration expenses to be S$0.3 million. Although the s property, plant and equipment, inventories and gross profit in Thailand are insured, the insurer s assessment is still ongoing and the eventual recoverable amount has yet been finalised. As such, Management has not recognised any such recoverable amounts for the financial year ended 31 December 2011 and instead defer the recognition to the next financial year. As a result of the substantial loss in 4Q11, the recorded a net loss attributable to shareholders of approximately S$14.2 million for the 12 months ended 31 December 2011 ( FY11 ) as compared to a net profit of S$1.3 million in the corresponding period ( FY10 ). Revenue 3 months ended 31 Dec Full year ended 31 Dec Business Activity / (-) + / (-) / (-) + / (-) % % Office Automation ("OA") 8,399 10,686 (2,287) (21.4)% 37,833 54,478 (16,645) (30.6)% Automotive ("AU") 11,999 10,879 1, % 46,502 41,958 4, % Hard Disk Drive ("HDD") 6 97 (91) (93.8)% 261 1,004 (743) (74.0)% Others (108) (13.6)% 3,150 3, % 21,089 22,455 (1,366) (6.1)% 87, ,458 (12,712) (12.7)% revenue decreased by approximately S$1.4 million or 6.1% and S$12.7 million or 12.7% for 4Q11 and FY11 respectively as compared to their corresponding periods mainly because of the reduced sales orders from our customers in the OA segment, coupled with the impact of the temporary halt of operations in our Thailand plant for the fourth quarter of 2011 due to the severe flood. The lower revenue from OA segment was mainly attributable to customers from the PRC and Malaysian markets. When the released its full year financial results for the financial year ended 31 December 2010 on 22 February 2011, it was announced that the had expected the OA business segment to be challenging in 2011 as our customers restructure their supply chains. Revenue from the AU segment remained strong, contributing about 53.0% of total revenue in FY11. It grew by approximately S$4.5 million or 10.8% from approximately S$42.0 million in FY10 to approximately S$46.5 million in FY11. This increase was mainly attributable to orders from our customers in the PRC markets. Page 12

13 Gross profit margin The s gross profit margin increased from approximately 10.2% in 4Q10 to 12.2% in 4Q11 mainly due to reclassification of depreciation charges of approximately S$798,000 from cost of sales to administrative expenses as a result of the temporary halt of operations in our Thailand plant. However, s gross profit margin decreased from 14.1% in FY10 to 12.8% in FY11. This was mainly due to lower factory orders from our OA customers and impact of severe flood in Thailand which had resulted in the loss of revenue for 4Q11. Marketing and distribution costs Marketing and distribution costs decreased by approximately S$42,000 or 7.1% and S$404,000 or 14.1% in 4Q11 and FY11 respectively over their corresponding periods mainly due to lower delivery costs in line with the lower sales activities in FY11. Administrative expenses Administrative expenses increased by S$588,000 or 25.9% in 4Q11 over its corresponding period mainly due to the abovementioned reclassification of depreciation charges of approximately S$798,000 from cost of sales to administrative expenses. However, administrative expenses decreased by S$24,000 or 0.3% in FY11 over its corresponding period mainly due to lower payroll-related costs incurred during the year. Finance costs Finance costs decreased by approximately S$75,000 or 22.4% and S$308,000 or 21.2% in 4Q11 and FY11 respectively over their corresponding periods mainly due to lower interest rates and reduction of term loans. The de-leveraging process which started in January 2009 continues to be supported by our banks. Other charges Other charges increased by approximately S$13.4 million and S$13.5 million in 4Q11 and FY11 respectively over their corresponding periods. This is mainly due to the Thailand flood-related charges totalling S$13.6 million, which comprised plant and equipment impairment of S$8.3 million, inventories written off of S$5.0 million and repair and restoration expenses of S$0.3 million. Other credits Other credits decreased by approximately S$30,000 in 4Q11 over its corresponding period mainly due to the decrease in sale of waste materials from our Thailand operations in 4Q11, offset by the net foreign exchange transaction gain in 4Q11. Other credits increased by approximately S$119,000 in FY11 over its corresponding period mainly due to bad debt recoverable in respect of other receivables that was written off in The bad debt recoverable arose subsequent to a judgement by the High Court in our favour. Income tax expense Income tax expense increased by approximately S$58,000 in 4Q11 over its corresponding period mainly due to the increase of current tax expense but offset by the absence of non-recurring over provision of deferred tax expense in respect of prior years. Page 13

14 However, income tax expense decreased by approximately S$73,000 in FY11 over its corresponding period mainly due to the decrease in current tax expense but offset by the absence of non-recurring over provision of deferred tax expense in respect of prior years. Although the incurred a net loss for 4Q11 and FY11 respectively, tax is still payable on the profit of certain subsidiary companies whose profits could not be set-off against losses of other companies within the. Financial Position Property, plant and equipment ( PPE ) Property, plant and equipment decreased by approximately S$17.9 million from S$51.7 million as at 31 December 2010 to S$33.8 million as at 31 December 2011 mainly due to depreciation charges and impairment charge of the Thailand s plant and equipment during the year. Inventories Inventories decreased by approximately S$3.7 million from S$18.0 million as at 31 December 2010 to S$14.3 million as at 31 December The decrease was mainly due to impairment charge of the Thailand s inventories during the year as a result of flood. Trade and other receivables Trade and other receivables decreased by approximately S$0.7 million from S$17.0 million as at 31 December 2010 to S$16.3 million as at 31 December The decrease in trade receivables was mainly due to lower revenue achieved in 4Q11 as compared to 4Q10 and debt collections continued to remain healthy. However, it was offset by the increase in other receivables mainly due to the amount recoverable from leasing companies as a result of termination of machinery leasing contracts due to flood in Thailand. Other assets Other assets increased by approximately S$0.2 million from S$3.0 million as at 31 December 2010 to S$3.2 million as at 31 December This was mainly due to deposit paid for the purchase of plant and equipment to restore the production facility of Thailand s plant. Cash and cash equivalents (As per Statement of Cash Flows) The ended FY11 with cash and cash equivalents amounting to S$10.5 million. This represented a net decrease of approximately S$1.4 million as compared to the cash and cash equivalents amounting to S$11.9 million at the beginning of this financial year. The decrease in net cash flows was mainly attributable to net cash outflows from investing and financing activities but was cushioned by net cash inflows from operating activities. Net cash flows used in financing activities was mainly due to net repayments of interest-bearing loans and borrowing and distribution of dividends in September Trade and other payables Trade and other payables decreased by approximately S$0.2 million from S$11.5 million as at 31 December 2010 to S$11.3 million as at 31 December The decrease was mainly due to a lower level of procurement in line with the reduce revenue in 4Q11 as compared to 4Q10. Page 14

15 Interest-bearing borrowings Net interest-bearing borrowings decreased by approximately S$7.5 million from S$33.4 million as at 31 December 2010 to S$25.9 million as at 31 December The decrease was mainly due to scheduled repayments of bank loans.. Obligation under finance leases Net obligation under finance leases decreased by approximately S$119,000 from S$409,000 as at 31 December 2010 to S$290,000 as at 31 December This was due to repayments of finance leases. As compared to third quarter of 2011 (3Q11), net obligation under finance leases decreased by approximately S$1.6 million from S$1.9 million as at 30 September 2011 to S$0.3 million as at 31 December The decrease was due to the termination of machinery leasing contracts as a result of flood. 9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results The reported results of losses are in line with the profit guidance announcement made on 20 January A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the operates and any known factors or events that may affect the in the next reporting period and the next 12 months How our Thailand plant, which has been a major contributor to s performance, can recover from impact of the flood, will feature in the s financial performance in FY Restoration and repair activities are currently in progress at our Thailand plant to restore its operations to normal operating capacity. The insurance proceeds recoverable will be used to partially fund the capital expenditure. Subsequent to financial year end, we had received interim payments amounting to S$4.1 million of insurance proceeds, which will be recognised in FY However, the insurer s assessment is still ongoing and the eventual recoverable amount has yet been finalised. We are also working closely with our customers and suppliers to minimize disruptions to our supply chain and reallocating orders to our Malaysia and China plants. Despite the loss and flood-related charges incurred by the Thailand plant in FY 2011, the is able to meet all its financial obligations. The will continue to place emphasis on financial prudence. With the anticipated slowdown in the manufacturing sector and uncertainties surrounding the currency markets, the expects the business environment to remain challenging and competitive in FY Page 15

16 11 Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? No Name of Dividend : Not applicable Dividend Type : Not applicable Dividend Amount per Share : Not applicable Tax Rate : Not applicable (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? No (c) Date payable Not applicable (d) Books closure date Not applicable 12 If no dividend has been declared or recommended, a statement to that effect Not applicable 13 If the has obtained a general mandate from shareholders for interested person transactions ( IPT ), the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect The does not have a general mandate from shareholders for interested person transactions. Page 16

17 PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT 14 Segmented revenue and results for business or geographical segments (of the ) in the form presented in the issuer s most recently audited annual financial statements, with comparative information for the immediately preceding year Business Segments For management purposes, the s overall business is organized into the following four business segments: - Office automation ( OA ): Shafts and rollers for various types of printer; - Hard disk drive ( HDD ): Components for hard disk drives; - Automotive ( AU ): Precision machined parts and components for vehicles; - Others: Components for other industries. Revenue and expenses OA HDD AU Others Total Revenue by segment External revenue 37,833 54, ,004 46,502 41,958 3,150 3,018 87, ,458 Segment results 2,745 8,750 (363) (644) 8,584 5, ,209 14,143 Interest income Finance costs (1,145) (1,453) Other credits 1,495 1,376 Marketing and distribution costs (2,461) (2,865) Administrative expenses (9,189) (9,213) Other charges (13,803) (292) (Loss) / profit before taxation (13,871) 1,741 Income tax expense (351) (424) Net (loss) / profit for the year (14,222) 1,317 Other information OA HDD AU Others Total Segment assets 28,106 39, ,573 29,147 37,631 3,930 4,029 61,185 84,893 Unallocated assets 17,093 16,792 Total assets 78, ,685 Unallocated liabilities 37,722 45,411 Total liabilities 37,722 45,411 Segment capital expenditure ,619 1, ,096 2,228 Unallocated capital expenditure Total capital expenditure 2,316 2,437 Segment depreciation 3,368 3, ,857 3, ,416 9,083 Unallocated depreciation 962 1,050 Total depreciation 9,378 10,133 Page 17

18 Geographical Segments The s operations are located in Singapore, Malaysia, Thailand and PRC. The following table provides an analysis of the revenue by geographical market, irrespective of the origin of the goods. Revenue from external customers Singapore 1,325 1,917 Malaysia 15,000 18,904 Thailand 499 2,185 PRC 51,564 55,650 USA 14,418 15,955 Brazil 1, Mexico 2,522 2,343 Others* 1,063 2,936 87, ,458 * Others refer to countries such as Belgium, Germany, India and South Korea. 15 In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments Please refer to item 8 of this announcement. 16 Breakdown of sales 1 Jan 2011 to 1 Jan 2010 to Increase / 31 Dec Dec 2010 (decrease) % (a) (b) (c) (d) Sales reported for first half year 43,851 52,189 (16.0)% Operating (loss) / profit after tax before deducting minority interests reported for the first half year (442) 2,071 N.M. Sales reported for second half year 43,895 48,269 (9.1)% Operating (loss) / profit after tax before deducting minority interests reported for the second half year (13,780) (754) 1,727.6 % Page 18

19 17 Report of persons occupying managerial positions who are related to a director, chief executive officer or substantial shareholder. Pursuant to Rule 704(13) of the Listing Manual, the Company confirms there is no person occupying managerial positions in the Company or any of its principal subsidiary companies who is related to a Director, Chief Executive Officer or substantial shareholder of the Company. 18 A breakdown of the total annual dividend (in dollar value) for the issuer s latest full year and its previous full year 1 Jan 2011 to 1 Jan 2010 to 31 Dec Dec 2010 Ordinary 1,909 - Preference - - Total 1,909 - BY ORDER OF THE BOARD Goh Leng Tse Chairman and Chief Executive Officer 29 February 2012 Page 19