BEST WORLD INTERNATIONAL LTD. (Company Registration: Z) Incorporated in the Republic of Singapore

Transcription

1 BEST WORLD INTERNATIONAL LTD (Company Registration: Z) Incorporated in the Republic of Singapore Financial Statements And Related Announcement For the 3 months ended 31 March 2013

2 BEST WORLD INTERNATIONAL LIMITED FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE THREE MONTHS ENDED 31 MARCH 2013 TABLE OF CONTENTS CONSOLIDATED STATEMENT OF INCOME 2 STATEMENTS OF FINANCIAL POSITION BORROWINGS AND DEBT SECURITIES 4 5 CONSOLIDATED STATEMENT OF CASH FLOWS 6 STATEMENT OF CHANGES IN EQUITY 7 SHARE CAPITAL 8 AUDIT 9 ACCOUNTING POLICIES 9 EARNINGS PER SHARE 10 NET ASSET VALUE PER SHARE 11 REVIEW OF THE PERFORMANCE OF THE GROUP 11 Overview 11 Revenue by Business Segments 12 Revenue by Geographical Locations 13 Financial Position and Cash Flow 15 COMMENTARY ON THE CURRENT PERIOD S PROSPECTS 16 DIVIDENDS 16 1

3 CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED 31 MARCH 2013 (Amounts expressed in Singapore dollars) 1(a)(i). An income statement and statement of comprehensive income, or a statement of comprehensive income for the group, together with a comparative statement for the corresponding period of the immediately preceding financial year. 3 months 3 months Ended Ended Change $'000 $'000 % Revenue 9,032 9,326 (3.2) Cost of Sales (1,947) (2,021) (3.7) Gross Profit 7,085 7,305 (3.0) Other Items of Income Interest Income (31.9) Other Operating Income (30.7) Other Items of Expense Distribution Costs (3,384) (3,345) 1.2 Administrative Expenses (4,643) (4,634) 0.2 Other Credits(Charges), Net 1,909 (376) NM Profit(Loss) Before Tax from Continuing Operations 1,218 (687) NM Income Tax Expenses (227) (22) Profit(Loss) from Continuing Operations, Net of Tax 991 (709) NM Profit (Loss) Net of Tax Attributable to: - Owners of the Parent Company - Non-Controlling Interests 962 (701) NM 29 (8) NM 991 (709) NM Additional notes: Gross Profit Margin 78.4% 78.3% Net Profit(Loss) Margin 10.7% (7.5%) Earnings(Loss) Per Share (cents) 0.47 (0.34) 2

4 CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE THREE MONTHS ENDED 31 MARCH 2013 Statement of Comprehensive Income for the three months ended 31 March 2013: 3 months 3 months Ended Ended Change $'000 $'000 % Profit(Loss) for the Period, Net of Tax 991 (709) NM Other Comprehensive Income(Expenses) Exchange Differences on Translating Foreign Operations 262 (470) NM Other Comprehensive Income(Expenses) for the period, Net of Tax 262 (470) NM Total Comprehensive Income(Expenses) for the Period 1,253 (1,179) NM Attributable to: Owners of the Parent Company Non-Controlling Interests 1,198 (1,172) NM 55 (7) NM Total Comprehensive Income(Expenses) for the Period 1,253 (1,179) NM 1(a)(ii). Profit before Income tax is determined after charging (crediting): Group 3 months Ended $'000 $'000 Depreciation of Property, Plant and Equipment Depreciation of an Investment Property 5 5 Amortisation of Intangible Assets Unrealized Foreign Exchange (Gain)Loss, Net (14) 237 Realized Foreign Exchange (Gain)Loss, Net (71) 142 Loss(Gain) on Disposal of Property, Plant and Equipment 2 (3) Gain on Disposal of Assets Held for Sales under FRS 105 (1,826) - Interest Income (32) (47) 3

5 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2013 (Amounts expressed in Singapore dollars) 1(b). (i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year. Group Company $ '000 $ '000 $ '000 $ '000 ASSETS NON-CURRENT ASSETS Property, Plant and Equipment 6,877 6,731 4,289 4,464 Investment Property 1,250 1, Intangible Assets 1,219 1, Investment in Subsidiaries ,324 23,324 Deferred Tax Assets Other Receivables - - 2,219 2,219 Other Financial Assets 1,274 1,274 1,274 1,274 Total Non-Current Assets 10,912 10,797 31,336 31,533 CURRENT ASSETS Assets Held for Sales under FRS 105-1,088-1,088 Inventories 4,777 5,351 2,767 2,713 Trade and Other Receivables 5,430 5,847 11,404 13,007 Other Assets 6,839 6,796 1,915 2,118 Cash and Cash Equivalents 30,482 28,241 6,234 3,250 Total Current Assets 47,528 47,323 22,320 22,176 TOTAL ASSETS 58,440 58,120 53,656 53,709 EQUITY AND LIABILITIES EQUITY Share Capital 17,192 17,192 17,192 17,192 Retained Earnings 31,949 30,987 32,180 31,296 Other Reserve (323) (559) - - Equity, Attributable to Owners 48,818 47,620 49,372 48,488 of the Parent Company Non-Controlling Interests (6) (61) - - Total Equity 48,812 47,559 49,372 48,488 NON-CURRENT LIABILITIES Deferred Tax Liabilities Total Non-Current Liabilities CURRENT LIABILITIES Income Tax Payable Trade and Other Payables 7,685 8,562 2,641 3,569 Other Liabilities Total Current Liabilities 9,495 10,413 4,229 5,166 Total Liabilities 9,628 10,561 4,284 5,221 TOTAL EQUITY AND LIABILITIES 58,440 58,120 53,656 53,709 4

6 BORROWINGS AND DEBT SECURITIES (Amounts expressed in Singapore dollars) 1(b). (ii) Aggregate amount of Group s borrowings and debt securities. The Group has no borrowings and debt securities as at 31 March 2013 and as at 31 December Details of any collateral Certain leasehold land and property of a subsidiary at carrying value of $546,000 as at 31 March 2013 (31 December 2012: $550,000) are mortgaged to bank to secure bank facilities granted by the bank. Certain fixed deposits of the group are pledged to banks for facilities granted. See 1 (c) for pledged details. 5

7 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED 31 MARCH 2013 (Amounts expressed in Singapore dollars) 1(c). A statement of cash flows (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. Group 3 Months 3 Months Ended Ended Cash flows from Operating Activities: $ '000 $ '000 Profit(Loss) before Tax 1,218 (687) Interest Income (32) (47) Depreciation of Property, Plant and Equipment Depreciation of an Investment Property 5 5 Amortisation of Intangible Assets Loss(Gain) on Disposal of Property, Plant and Equipment 2 (3) Gain on Disposal of Assets Held for Sales (1,826) - Net Effect of Exchange Rate Changes in Consolidating Foreign Subsidiaries 231 (417) Operating Cash Flows before Changes in Working Capital (25) (833) Inventories Trade and Other Receivables Other Assets (43) (1,597) Trade and Other Payables (877) (172) Other Liabilities (109) - Net Cash Flows used in Operations before Interest and Tax (63) (1,895) Income Tax Paid (172) (77) Net Cash Flows used in Operating Activities (235) (1,972) Cash flows from Investing Activities: Purchase of Property, Plant and Equipment (471) (446) Disposal of Property, Plant and Equipment - 9 Disposal of Assets Held for Sales under FRS 105 2,915 - Decrease in Other Financial Assets Interest Received Interest Received from Other Receivable - - Net Cash Flows from(used in) Investing Activities 2,476 (185) Cash flows from Financing Activities: Increase in Cash Restricted in Use - (4) Net Cash Flows used in Financing Activities - (4) Net Increase(Decrease) in Cash and Cash Equivalents 2,241 (2,161) Cash and Cash Equivalents, Statement of Cash Flows, Beginning Balan 26,492 30,212 Cash and Cash Equivalents, Statement of Cash Flows, Ending Balance 28,733 28,051 Note A : 3 Months 3 Months Ended Group Ended $ '000 $ '000 Cash and bank balances 30,482 29,814 Less: Cash pledged (1,749) (1,763) Cash and Cash Equivalents in the Consolidated Cash Flow Statement 28,733 28,051 6

8 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH (d). (i) A statement (for the Group and company) 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. Attributable to Owners of the Parent Company Foreign Currency Non- Total Share Treasury Retained Translation Controlling Equity Total Capital Shares Earnings Reserve Interests $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 $ '000 Group Balance at 1 January ,559 47,620 17,641 (449) 30,987 (559) (61) Movements in Equity Share Buy Back - Held as Treasury Shares - - Total Comprehensive Income for the Period 1,253 1, Balance at 31 March ,812 48,818 17,641 (449) 31,949 (323) (6) Company Attributable to Owners of the Parent Company Total Share Treasury Retained Equity Capital Shares Earnings $'000 $'000 $'000 $'000 Balance at 1 January ,488 17,641 (449) 31,296 Movements in Equity Total Comprehensive Income for the Period Balance as at 31 March ,372 17,641 (449) 32,180 Balance at 1 January ,812 17,640 (435) 33,607 Movements in Equity Total Comprehensive Expenses for the Period (694) - - (694) Balance as at 31 March ,118 17,640 (435) 32,913 7

9 NOTES TO FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 31 MARCH 2013 (Amounts expressed in Singapore dollars) SHARE CAPITAL 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 Group and Company Issued ordinary shares No. of shares Group and Company Issued and fully paid up capital $' At 1 January and 31 March 204,680, ,751,997 17,192 17,205 (b) Treasury Shares Group and Company Group and Company No. of shares $' At 1 January and 31 March 1,573,000 1,498, For the three months ended 31 March 2013 and 31 March 2012, the Company did not purchase its ordinary shares to be held as treasury shares. In July 2010, the Company completed its issue of up to 41,249,999 nonrenounceable bonus warrants on the basis of one (1) warrant for every five (5) existing ordinary shares held by shareholders of the Company, on books closure date, fractional entitlements to be disregarded. Each warrant will entitle the warrant holder to subscribe for one (1) new ordinary share in the ordinary share capital of the Company at the exercise price of $0.30, 8

10 exercisable during the period commencing on and including the date six (6) months from the date of listing of the warrants and expiring on the market day immediately preceding the third (3rd) anniversary of the date of issue of the warrants. 41,140,995 warrants were listed on SGX Main Board on 12 July On 3 May 2012, 4,000 shares were issued by exercise of warrants at the exercise price of $0.30. No options were granted and no new shares were issued pursuant to the Employee Share Option Scheme. (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 total number of issued ordinary shares excluding treasury shares as at 31 March 2013 and 31 December 2012 was 204,680,997. The total number of treasury shares as at 31 March 2013 and 31 December 2012 was 1,573,000. (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. AUDIT 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 auditors. 3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter). Not applicable. ACCOUNTING POLICIES 4. Whether the same accounting policies and methods of computation as in the Group and company 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 year as compared with those used in the audited financial statements for the financial year ended 31 December

11 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. The adoption of new and revised FRS does not have significant impact on the Group. EARNINGS PER SHARE 6. Earnings per ordinary share of the Group 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 share of Group: GROUP 3 months 3 months ended ended Change % (a) Based on weighted average number of ordinary shares on issue (cents); and 0.47 (0.34) N.M. (b) On a fully diluted basis (cents) 0.47 (0.34) N.M. For comparative purposes, the earnings per ordinary shares for the 3 months ended 31 March 2013 and 31 March 2012 are calculated based on the profit for the period of approximately $1.0 million and a loss for the period of $0.7 million respectively. The weighted average number of ordinary shares (excluding treasury shares) for the 3 months ended 31 March 2013 is 204,680,997 (31 March 2012: 204,751,997). On a fully diluted basis, earnings per share for the 3 months ended 31 March 2013 is not computed as the average price of the shares for the period is lower than the warrant s exercise price of $

12 NET ASSET VALUE PER SHARE 7. Net asset value (for the Issuer and group) 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. GROUP COMPANY Net asset value per ordinary shares (cents) Note: The number of ordinary shares of the Group and Company (excluding treasury shares) as at 31 March 2013 and 31 December 2012 was 204,680,997. REVIEW OF THE PERFORMANCE OF THE GROUP 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 (b) any material factors that affected the cash flow, working capital, assets or liabilities of the Group during the current financial period reported on. Overview For the reporting period ended 31 March 2013, the Group recorded a 3.2% decrease in revenue from $9.3 million in 1Q2012 to $9.0 million in 1Q2013. The decline was due to a slowdown in revenue generation from Singapore, Malaysia, Thailand, Indonesia and Korea, offsetting the higher revenue from Taiwan and Philippines. First quarters are usually the weakest quarter due to the seasonal nature of our business and the Chinese New Year holidays. On top of this, Korea was affected by a lower consumer attendance of activities due to the severity of last winter which continued into January. Gross profit margin maintained at 78.3% in 1Q2012 compared to 78.4% for the same period last year. Interest income for 1Q2012 decreased 31.9% as a result of the maturity and non-renewal of certain financial assets. 11

13 Other Operating Income, which comprised mainly of service fees from our export customers and rental income received from our Singapore property, decreased 30.7% to $0.2 million in 1Q2013, as a result of lower service fees received. Commissions, marketing and other sales related costs which makes up the Group s Distribution costs, increased marginally by 1.2% from $3.3 million in 1Q2012 to $3.4 million in 1Q2013, due to higher commission paid out to distributors and increased advertising and promotion expenses incurred. Despite lower rental expenses incurred in 1Q2013, Administrative Expenses remained stable vis-à-vis the corresponding quarter last year largely as a net result of higher staff cost, depreciation and professional fees incurred. The Group had to incur lease expenses for both Changi office (terminated in April 2012) and Tai Seng simultaneously during 1Q2012, due to the latter s renovation works in that period. Other credits for 1Q2013 of $1.9 million was recorded during the quarter mainly due to a $1.8 million realised gain from the successful completion of the disposal of our Tong Lee property in 1Q2013. The Group also recognised realised foreign exchange gains arising from stronger local currencies in the markets we operate in against the Singapore dollar. Higher tax expenses were incurred for 1Q2013 due to higher profits from certain subsidiaries. As a result, the Group registered a Profit Attributable to Owners of the Parent Company of $1.0 million for 1Q2013 as compared with a loss of $0.7 million in the corresponding quarter. Revenue by Business Segments For Quarter: 1Q2013 Vs 1Q2012 Business Segment 3 months ended 3 months ended Change Revenue Revenue $'000 % $'000 % % Direct Selling 8, , Export (62.9) Total 9, , (3.2) 12

14 For Quarter: 1Q2013 Vs 4Q months ended 3 months ended Business Segment Change Revenue Revenue $'000 % $'000 % % Direct Selling 8, , (25.5) Export , (88.0) Total 9, , (33.9) Although the Group s revenue from China and Myanmar has been based on export price since 3Q2009 and 3Q2010 respectively, export revenue from China was previously categorized under Retail segment while that from Myanmar was previously under Direct Selling & Sales Through Agencies. For ease of comparison, with effect from this quarter, all revenue generated based on export price shall be categorized under the Export segment. Revenue in the Direct Selling segment refers to direct revenue as a result of sales to members. For 1Q2013, the Group generated $8.8 million or 97.5% of its total revenue from its core business of Direct Selling. This represents a marginal 0.9% increase vis-à-vis the same period last year. Export revenue declined 62.9% from $0.6 million in 1Q2012 to $0.2 million in 1Q2013. This decline is mainly attributable to the Group s China agent who placed a larger than usual order in December last year which crossed over to 1Q2013. As at 31 March 2013, there were 49 Lifestyle Centres. Total membership rose 1.7% to 283,427 members, when compared to 31 December Revenue by Geographical Locations For Quarter: 1Q2013 Vs 1Q2012 Geographical Locations 3 months ended 3 months ended Change Revenue Revenue $'000 % $'000 % % Singapore 2, , (8.2) Indonesia 1, , (2.8) Thailand 1, , (25.5) Taiwan 2, , Korea , (43.6) Others 1, , (23.9) Total 9, , (3.2) 13

15 For Quarter: 1Q2013 Vs 4Q2012 Geographical Locations 3 months ended months ended Change Revenue Revenue $'000 % $'000 % % Singapore 2, , (18.1) Indonesia 1, , Thailand 1, , (3.8) Taiwan 2, , (30.1) Korea , (45.1) Others 1, , (59.7) Total 9, , (33.9) Singapore Sales from Singapore declined 8.2% to $2.1 million for 1Q2013 from $2.3 million in 1Q2012 as distributors were still adjusting to our new sales HQ in Market Street. Management shall continue to implement more effective marketing activities to maintain the Group s market share in the coming quarters and take advantage of its new location to reach out to new customers. Indonesia Revenue declined 2.8% to $1.1 million vis-à-vis the same period in FY2012 due to a higher attrition rate of existing consumers as opposed to the entry of new ones. As we do not expect new products to be approved in the short term, new sales and marketing activities which will commence in late 2Q2013 are in the pipeline to stimulate the demand of existing product lines from new consumers. Thailand Due to weak market sentiments, 1Q2013 revenue declined 25.5% to $1.0 million from $1.3 million for 1Q2012. Management acknowledges these challenges and shall leverage on the high morale of local leaders/distributors, the company s excellent image as a direct selling company in Thailand and the upcoming international convention to be held in Bangkok in June 2013, and stimulate sales on the back of a series of campaigns and activities to promote sales and membership growth. Taiwan In line with management s expectation, revenue from Taiwan improved 104.3% for 1Q2013 from $1.2 million to $2.5 million when compared with the corresponding period in FY2012. This sustained improvement was achieved on the back of steady growth in market share. Management shall continue to build on this momentum and take even more proactive steps to reach out to new members in the remaining quarters by organizing more activities and opening a new RC in Taipei, set to be operational in 3Q

16 Korea Korea, previously part of Others market, registered a total revenue of $0.6 million in 1Q2013 vis-à-vis $1.1 million in 1Q2012. The market lost some traction after the longer and colder than usual winter which curtailed much of our marketing activities in January and February. The subsequent quarter shall pose a challenge for the management due to the closure of the Kaesong Industrial region which has affected the supply of packaging for the Group s Korean made products. However, the first Education Centre in Korea is set to open in 2Q2013, marking a new milestone in the Group s business model in Korea. Others Despite higher revenue from Philippines, Other markets declined 23.9% to $1.7 million in 1Q2013 from $2.3 million in 1Q2012, as a result of the markedly lower export volume from China and lower revenue generated in Malaysia. Financial Position and Cash Flow Non-current assets of the Group increased from $10.8 million as at 31 December 2012 to $10.9 million as at 31 March 2013, mainly due to increase in property, plant and equipment from $6.7 million to $6.9 million in relation to the purchase of new equipment for the Group s Tai Seng headquarters. Assets Held for Sales decreased $1.1 million as at 31 March 2012 due to the successful completion and disposal of our Tong Lee property in 1Q2013. Inventory was lower at $4.8 million as at 31 March 2012 as the Group maintained lower inventory holdings as compared with 31 December 2012 due to lower demand in a number of our subsidiaries. As at 31 March 2013, inventory turnover was 223 days as compared to 178 days as at 31 December Trade and other receivables was lower at $5.4 million as at 31 March Trade receivables turnover was 36 days as at 31 March 2013 as compared to 29 days as at 31 December Other Liabilities decreased from $1.0 million as at 31 December 2012 to $0.9 million as at 31 March 2013 mainly due to the repayment of outstanding Tai Seng office reinstatement fee payable. Trade and other payables decreased from $8.6 million as at 31 December 2012 to $7.7 million as at 31 March 2013 due to the repayment of outstanding payables recorded in respect of renovation works for our Tai Seng headquarters. Cash and cash equivalents in the consolidated statements of cash flows increased from $28.1 million as at 31 December 2012 to $28.7 million as at 31 March 2013 largely as a result of higher profit before tax and the disposal of our Tong Lee property. As at 31 March 2013, the Group maintained a strong balance sheet and working capital position, with approximately $30.5 million of cash and cash equivalents. 15

17 COMMENTARY ON THE CURRENT PERIOD S PROSPECTS 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 the section 10 of the last quarter s result announcement. 10. A commentary at the date of the announcement of the significant trends and 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. The seasonal nature of our business, added to a shorter working month due to the Chinese New Year holidays and poor weather in one of our key markets resulted in a marginal decline in the Group s performance in 1Q2013. Despite these challenges, management remains cautiously optimistic of our business and will continue to implement marketing campaigns and launch new products to engage and grow the business in the coming quarters. Taiwan and Philippines s growth in 1Q2013 was in line with management s expectation. Management is confident and expects better financial performance in these regions in the coming quarters. Plans to set up a new RC in Taipei are on schedule and is expected to further boost revenue generation from Taiwan, barring any unforeseen circumstances. Factors that may affect the Group s performance in our next reporting period are as follows: As part of the Group s strategy to tap into the value chain of upstream activities in businesses synergistic to ours, we are actively identifying inorganic growth opportunities; Rising business costs amidst a weak economic outlook continues to be the key challenge facing the Group this financial year; The Group expects higher depreciation expenses due to the fit-out and new equipment in our Tai Seng headquarters and Singapore RC, as well as renovation and expansion works that are expected to commence and be completed in Taipei and Kuala Lumpur during the coming quarters; Weakening currencies of markets which the Group operates in, against the Singapore Dollar may negatively affect the Group s performance moving forward. Other factors that continue to affect the Group s performance include timeline required for product registration in various markets, natural disasters, local direct selling regulations, product regulations and market competition. Moving forward, Management shall be vigilant and continue to put in place mitigating measures to minimize any potential impact that any of the above factors may have on the Group s business. 16

18 DIVIDENDS 11. (a) (i) Current Financial Period Reported On None (ii) Corresponding Period of the immediately Preceding Financial Year None (b) Date payable for dividend and date of allotment and issue for bonus issue Not applicable (c) Books closure dates for dividend and bonus issue Not applicable 12. If no dividend has been declared/ recommended, a statement to that effect. No dividend has been recommended or declared for the period ended 31 March If the Group has obtained a general mandate from shareholders for IPTs, 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 Group did not obtain a general mandate from shareholders for Interested Person Transactions. 14. Board Negative Assurance Confirmation for Interim Financial Results We, Dr. Dora Hoan Beng Mui and Dr. Doreen Tan Nee Moi, being two directors of Best World International Limited (the "Company"), do hereby confirm, to the best of our knowledge, nothing has come to the attention of the Board of Directors of the Company which may render the unaudited interim financial results for the three months ended 31 March 2013 to be false or misleading. On behalf of the Board of Directors Dr. Dora Hoan Beng Mui Co-Chairman, Group CEO/Managing Director Dr. Doreen Tan Nee Moi Co-Chairman, President 10 May