Third Quarter Financial Statements and Dividend Announcement for the Period Ended 30/09/2014

Transcription

1 ADVANCED HOLDINGS LTD Company Registration no N Third Quarter Financial Statements and Dividend Announcement for the Period Ended 30/09/2014 PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS 1(a)(i) Consolidated statement of comprehensive income 3 months ended 9 months ended Increase / Increase / (Decrease) (Decrease) S$ 000 S$ 000 % S$ 000 S$ 000 % Revenue 15,751 23,722 (33.6) 59,931 67,815 (11.6) Cost of sales (11,262) (16,101) (30.1) (43,847) (48,954) (10.4) Gross profit 4,489 7,621 (41.1) 16,084 18,861 (14.7) Other operating income (21.2) 1, Distribution and marketing costs (2,090) (2,222) (5.9) (7,023) (6,027) 16.5 Administrative expenses (2,680) (2,873) (6.7) (7,939) (7,868) 0.9 Other operating expenses (973) (479) (2,276) (1,245) 82.8 Other gains and losses (Note 1) 141 (86) N.M (103) 265 N.M Finance cost (85) (76) 11.8 (243) (173) 40.5 Share of results of associate 10 (36) N.M (106) (36) (Loss) Profit before income tax (820) 2,316 (135.4) (444) 4,625 (109.6) Income tax expense (150) (292) (48.6) (413) (779) (47.0) (Loss) Profit for the period (Note 2) (970) 2,024 (147.9) (857) 3,846 (122.3) Other comprehensive (loss) income Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of foreign operations representing total other comprehensive (loss) income for the period, net of tax (Note 3) Total comprehensive (loss) income for the period (254) 1,723 N.M (192) 2,303 N.M (1,111) 5,569 N.M (Loss) Profit attributable to: Owners of the Company (907) 2,077 N.M (608) 3,968 N.M Non-controlling interests (63) (53) 18.9 (249) (122) (970) 2,024 (147.9) (857) 3,846 (122.3) Total comprehensive (loss) income attributable to: Owners of the Company (133) 2,359 N.M (862) 5,675 N.M Non-controlling interests (59) (56) 5.4 (249) (106) (192) 2,303 N.M (1,111) 5,569 N.M 1

2 1(a)(ii) Notes to consolidated income statements 1. Other gains and losses: 3 months ended 9 months ended S$ 000 S$ 000 S$ 000 S$ 000 Other (gains) and losses: Allowance for impairment in value of inventories Allowance for (reversal of) doubtful debts - 19 (41) (19) Inventories written off Loss (gain) on disposal of property, plant and equipment 17 (4) 17 4 Gain on disposal of joint venture (Note A) (531) Net foreign exchange (gain) loss (Note B) (164) (141) (265) Note A: - Gain on disposal of joint venture of S$531,000 for 9M2013 arose from the disposal of the Group s investment in the joint venture company, Advanced Xianxing Water Reclamation (Yanting) Co. Ltd which principal activities are to build, operate and transfer a waste water treatment plant in the Yanting County, Sichuan Province of China (please refer to SGXnet announcement dated 4 June 2013). 2. (Loss) Profit for the period is determined after charging / (crediting): 3 months ended 9 months ended S$ 000 S$ 000 S$ 000 S$ 000 Depreciation of property, plant and equipment ,355 1,646 Amortisation of intangible assets Provision (reversal) of warranty (478) 113 Interest expense Interest income (84) (83) (244) (312) Unrealised foreign exchange (gain) loss, net (Note B) (359) 123 (195) 317 Realised foreign exchange loss, net (Note B) Fair value loss (gain) on currency forward contract (Note B) 147 (282) 126 (157) Adjustments for under (over) provision of income tax expense in respect of prior years - 28 (20) (35) Note B:- Net foreign exchange loss included in Other gains and losses comprised realised and unrealised exchange differences and fair value adjustments on currency forward contracts. Unrealised exchange differences are the result of movements in the Euro (EUR) and the United States Dollars (USD) against the Singapore Dollars (SGD) recorded by the Group in accordance with the Financial Reporting Standards FRS 21 The Effects of Changes in Foreign Exchange Rates. These foreign exchange differences arose mainly from the revaluation of monetary items denominated in EUR and USD. 3. Other comprehensive income (loss): For 9M2014, the exchange loss on translation of foreign operations of S$254,000 arose mainly from the translation of assets and liabilities of China subsidiaries with reporting currency in Chinese Renminbi ( RMB ). 2

3 1(b)(i) Statements of financial position ASSETS COMPANY S$ 000 S$ 000 S$ 000 S$ 000 Current assets Cash and cash equivalents 17,150 25, Trade receivables 19,301 20, ,195 Other receivables and prepayments 6,936 5,940 3,471 3,469 Derivative financial instruments Service concession receivables Amount due from customers for contract work-in-progress 12,313 11, Inventories 13,035 7, Total current assets 68,972 71,887 4,913 6,311 Non-current assets Service concession receivables 6,919 7, Property, plant and equipment 34,826 34, Goodwill 6,093 6, Intangible assets 5,890 6, Investments in subsidiaries ,275 54,305 Investments in an associate Deferred tax assets Total non-current assets 54,804 54,538 54,572 54,648 Total assets 123, ,425 59,485 60,959 LIABILITIES AND EQUITY Current liabilities Amount due to customers for contract work-in-progress 4,007 4, Bank borrowings 4,307 3,040 1,700 - Trade and other payables 30,669 29,114 5,888 7,281 Derivative financial instruments Provision for warranty 1,351 1, Income tax payable 1,084 1, Total current liabilities 41,580 40,532 7,588 7,317 Non-current liabilities Bank borrowings 9,903 10, Deferred tax liabilities Total non-current liabilities 10,408 11, Capital and reserves and non-controlling interests Share capital 47,433 47,433 47,433 47,433 Treasury shares (1,837) (1,837) (1,837) (1,837) Foreign currency translation reserve 791 1, General reserve Retained earnings 24,516 26,946 6,301 8,046 Equity attributable to owners of the Company 71,713 74,397 51,897 53,642 Non-controlling interests Total equity 71,788 74,721 51,897 53,642 Total liabilities and equity 123, ,425 59,485 60,959 3

4 1(b)(ii) Aggregate amount of group s borrowings and debt securities. Amount repayable in one year or less, or on demand As at As at S$'000 S$'000 S$'000 S$'000 Secured Unsecured Secured Unsecured 4,307-3,040 - Amount repayable after one year As at As at S$'000 S$'000 S$'000 S$'000 Secured Unsecured Secured Unsecured Details of any collaterals 9,903-10,678 - Bank borrowings comprised the following: 1. a long term loan denominated in RMB obtained by one of the subsidiaries for its Build-Operate- Transfer ( BOT ) service concession and is secured by a pledge of accounts receivable arising from the operation of the BOT service concession and a corporate guarantee issued by a subsidiary of the Group; and 2. a long term loan by one of the subsidiaries to finance for the purchase of factory building located at 30 Woodlands Loop, Singapore and is secured by a mortgage on the said property and a corporate guarantee issued by the Company. 3. a short term loan by the Company for working capital purposes. 4

5 1(c)(i) Consolidated statement of cash flows 3 months ended 9 months ended Operating activities S$ 000 S$ 000 S$ 000 S$ 000 (Loss) Profit before income tax (820) 2,316 (444) 4,625 Adjustments for: Depreciation of property, plant and equipment ,355 1,646 Allowance for impairment in value of inventories Inventories written off Amortisation of intangible assets Allowance for (reversal of) doubtful debts - 19 (41) (19) Loss (gain) on disposal of property, plant and equipment 17 (4) 17 4 Share of results of associate (10) Gain on disposal of joint venture (Note A) (531) Provision (reversal) of warranty (478) 113 Fair value loss (gain) on currency forward contracts 147 (282) 126 (157) Interest expense Interest income (84) (83) (244) (312) Operating cash flows before movements in working capital 467 2,845 1,869 5,745 Inventories (2,504) (5,336) (5,603) (6,740) Contract work-in-progress 215 (2,142) (1,855) 1,454 Trade receivables (5,960) 366 1,594 1,101 Other receivables and prepayments (1,253) 626 (1,023) (2,831) Service concession receivables (216) Trade and other payables 4,946 3,719 1,647 9,399 Provision for warranty (191) (12) (85) (49) Cash (used in) generated from operations (4,090) 229 (3,357) 7,863 Income tax paid (316) (424) (1,070) (1,466) Interest paid (82) (76) (222) (173) Interest received (73) Net cash (used in) from operating activities (4,561) (207) (4,422) 6,387 Investing activities Proceeds from disposal of property, plant and equipment Proceeds from disposal of joint venture (Note A) ,857 Purchase of property, plant and equipment (292) (1,548) (3,065) (22,916) Investment in an associate (1,008) Acquisition of intangible assets (6) - (6) Net cash used in investing activities (292) (729) (3,037) (22,060) Financing activities Dividend paid to owners of the Company 1 (913) (1,822) (1,822) Proceeds from bank borrowings 600-3,700 12,400 Repayment of bank borrowings (676) (651) (3,193) (823) Decrease (increase) in pledged cash and bank balances and fixed deposits 65 (104) 183 (269) Net cash (used in) from financing activities (10) (1,668) (1,132) 9,486 5

6 1(c)(i) Consolidated statement of cash flows (cont d) 3 months ended 9 months ended S$ 000 S$ 000 S$ 000 S$ 000 Net decrease in cash and cash equivalents (4,863) (2,604) (8,591) (6,187) Cash and cash equivalents at beginning of the period 20,954 28,346 24,790 31,775 Effects of exchange rate changes on the balance of cash held in foreign currencies 129 (47) Cash and cash equivalents at end of the period 16,220 25,695 16,220 25,695 Cash and cash equivalents for statement of cash flows comprise : Cash and bank balances 15,471 24,948 15,471 24,948 Fixed deposits 1,679 2,165 1,679 2,165 Cash and cash equivalents 17,150 27,113 17,150 27,113 Less: Restricted fixed deposits (852) (1,148) (852) (1,148) Less: Restricted cash and bank balances (78) (270) (78) (270) 16,220 25,695 16,220 25,695 6

7 1(c)(i) Notes to consolidated statement of cash flow (A) Disposal of joint venture On 31 May 2013, the Group disposed its investment in the joint venture company, Advanced Xianxing Water Reclamation (Yanting) Co. ( AXY ), Ltd for a cash consideration net of tax of S$1,913,000. The Group reported its interests in AXY using proportionate consolidation. The Group s share of the carrying amounts of net assets of AXY eliminated on disposal and the cash flow effect of the disposal were as follows: 2013 S$'000 Current assets Cash and cash equivalents 56 Other receivables and prepayments 105 Service concession receivables 1,092 Inventories 7 Total current assets 1,260 Non-current assets Service concession receivables 2,553 Property, plant and equipment 36 Total non-current assets 2,589 Current liabilities Trade and other payables (2,376) Total current liabilities (2,376) Non current liabilities Deferred tax liabilities (104) Total non current liabilities (104) Net assets derecognised 1,369 Gain on disposal: Total cash consideration 1,913 Net assets derecognised (1,369) Cumulative exchange differences in respect of the net assets of the joint venture reclassified from equity on loss of control of joint venture (13) Gain on disposal 531 Total cash consideration 1,913 Less: Deferred consideration (817) Less: Cash and cash equivalents in joint venture disposed of (56) Net cash inflow arising on disposal 1,040 The deferred consideration was received on 1 August

8 1(c)(i) Notes to consolidated statement of cash flows (cont d) (B) Acquisition of subsidiary On 17 January 2013, the Group acquired 67.0% equity interest in Atom Instrument, LLC ( ATOM ), a Texas, U.S.A. limited company, for a cash consideration of S$613,000. The acquisition was to acquire a technology-based company with a view of increasing the Group s range of product offerings to customers in the future. The fair value of the identifiable assets acquired and liabilities assumed and the cash flow effect of the acquisition are as follows: 2013 S$'000 Current assets Cash and cash equivalents 613 Total current assets 613 Non-current assets Property, plant and equipment 9 Intangible assets 368 Total non-current assets 377 Current liabilitiies Trade and other payables (368) Total current liabilities (368) Identifiable net assets 622 Less: Non-controlling interests (84) Identifiable net assets acquired 538 Goodwill arising on acquisition 75 Cash consideration paid 613 Less: Cash and cash equivalents in the subsidiary acquired (613) Net cash outflow on acquisition - 8

9 1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. Consolidated statement of changes in equity for the for the period ended 30 September 2014 and 30 September 2013 Group Attributable to owners of the Company Share capital Treasury shares Foreign currency translation reserve General reserve Retained earnings Attributable to equity holders of the Company Noncontrolling interests Total equity S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 S$ 000 Balance as at 1 January ,433 (1,837) 1, ,946 74, ,721 Total comprehensive income (loss) for the period Profit (loss) for the period (186) 113 Other comprehensive loss for the period - - (1,028) - - (1,028) (4) (1,032) Total 47,433 (1,837) ,245 73, ,802 Transaction with owners, recognised directly in equity Dividends (1,823) (1,823) - (1,823) Balance as at 30 June ,433 (1,837) ,422 71, ,979 Total comprehensive income (loss) for the period Loss for the period (907) (907) (63) (970) Other comprehensive income for the period Total 47,433 (1,837) ,515 71, ,787 Transaction with owners, recognised directly in equity Return of previous years unclaimed dividends Balance as at 30 September ,433 (1,837) ,516 71, ,788 Balance as at 1 January ,433 (1,837) (1,325) ,466 67, ,657 Total comprehensive income (loss) for the period Profit (loss) for the period ,891 1,891 (69) 1,822 Other comprehensive income for the period - - 1, , ,444 Total 47,433 (1,837) ,357 70, ,923 Transaction with owners, recognised directly in equity Dividends (1) (909) (909) - (909) Non-controlling interest arising from acquisition of subsidiary Total (909) (909) 84 (825) Balance as at 30 June ,433 (1,837) ,448 69, ,098 Total comprehensive income (loss) for the period Profit (loss) for the period ,077 2,077 (53) 2,024 Other comprehensive income (loss) for the period (3) 279 Total 47,433 (1,837) ,525 72, ,401 Transaction with owners, recognised directly in equity Dividends (911) (911) - (911) Balance as at 30 September ,433 (1,837) ,614 71, ,490 (1) Dividends include FY2012 final dividend paid S$911,000 less refund of previous years unclaimed dividends S$2,000. 9

10 Statement of changes in equity for the period ended 30 Sepember 2014 and 30 September 2013 Company Treasury Retained Share capital shares earnings Total S$ 000 S$ 000 S$ 000 S$ 000 Balance as at 1 January ,433 (1,837) 8,046 53,642 Profit for the period, representing total comprehensive income for the period Transaction with owners, recognised directly in equity Dividends - - (1,823) (1,823) Balance as at 30 June ,433 (1,837) 6,324 51,920 Loss for the period, representing total comprehensive income for the period Transaction with owners, recognised directly in equity - - (24) (24) Return of previous years unclaimed dividends Balance as at 30 September ,433 (1,837) 6,301 51,897 Balance as at 1 January ,433 (1,837) 7,344 52,940 Profit for the period, representing total comprehensive income for the period Transaction with owners, recognised directly in equity Dividends (1) - - (909) (909) Balance as at 30 June ,433 (1,837) 6,542 52,138 Profit for the period, representing total comprehensive income for the period Transaction with owners, recognised directly in equity Dividends - - (911) (911) Balance as at 30 September ,433 (1,837) 6,254 51,850 (1) Dividends include FY2012 final dividend paid S$911,000 less refund of previous years unclaimed dividends S$2,

11 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. There were no changes in the Company s share capital during the current financial period reported on. 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period reported on and as at the end of the immediately preceding financial year. Issued Ordinary Shares As at No. of Shares As at Total number of issued shares 310,567, ,567,176 Total number of treasury shares (6,760,000) (6,760,000) Total number of issued shares excluding treasury shares 303,807, ,807,176 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 and as at the end of the corresponding period of the immediately preceding financial year. There were no sales, transfers, disposal, cancellation, and/or use of treasury shares for the current financial period reported on. 2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. The figures have neither been audited nor reviewed by the Company s auditors. 3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a matter). Not applicable. 4. Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied. Except as mentioned in item 5 below, the Group has applied the same accounting policies and methods of computation in the preparation of the current year results as in the audited financial statements for the year ended 31 December

12 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 Group has adopted the new and revised Singapore Financial Reporting Standards ( FRSs ) that are mandatory for financial years beginning on and after 1 January 2014, where applicable. The adoption of these standards did not result in substantial changes to the Group s accounting policies, and there is no material impact on the retained earnings of the Group as at 1 January 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. EPS for period based on net (loss) profit attributable to owners of the Company: (i) Based on weighted average number of ordinary shares in issue 3 months ended 9 months ended (Cents) (Cents) (Cents) (Cents) (0.30) 0.68 (0.20) 1.31 (ii) On a fully diluted basis (0.30) 0.68 (0.20) 1.31 Notes The calculation of basic earnings per share for the 3 months ended 30 September 2014 is based on loss attributable to Owners of the Company of S$907,000 (3Q2013: profit attributable to Owners of the Company of S$2,077,000) divided by the weighted average number of ordinary shares of 303,807,176 (3Q2013: 303,807,176) over the period. The calculation of basic earnings per share for the 9 months ended 30 September 2014 is based on loss attributable to Owners of the Company for the period of S$608,000 (9M2013: profit attributable to Owners of the Company S$3,968,000) divided by the weighted average number of ordinary shares of 303,807,176 (9M2013: 303,807,176) over the period. 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. COMPANY (Cents) (Cents) (Cents) (Cents) Net asset value per ordinary share based on issued share capital (excluding treasury shares) at end of the period Net asset value per ordinary share is calculated based on the issued share capital (excluding treasury shares) of 303,807,176 ordinary shares as at 30 September 2014 (31 December 2013: 303,807,176). 12

13 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) (b) 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 any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. Income statement Third Quarter 2014 ( 3Q2014 ) Group revenue achieved in 3Q2014 was S$15.8 million at a gross margin of 28.5%, representing a decrease of 33.6% as compared to S$23.7 million recorded in 3Q2013 with lower sales level being recorded in both the Oil & Gas and Petrochemicals & Chemicals segments. For the Group s operating expenses, Distribution and marketing costs and Administrative expenses declined by 5.9% and 6.7% respectively. Other Operating Expenses which comprise R&D expenses and amortisation cost, increased by S$494,000 as the Group continues on its effort in R&D activities as part of its strategy to invest in technologies. The Group ended the third quarter with a loss attributable to owners of the company of S$907,000. Nine Months 2014 ( 9M 2014 ) The Group s revenue for 9M2014 was S$59.9 million as compared to S$67.8 million achieved in 9M2013. Gross profit margin was relatively stable at 26.8% versus 27.8% in the preceding period. With the Group strengthening its sales and marketing effort, the Group s Distribution and marketing costs was up 16.5% from S$6.0 million to S$7.0 million, with the rise in cost arising from staff costs, training and higher commissions paid during the period for a number of projects. Administrative expenses was relatively the same with a marginal increase of 0.9% over the two comparative 9-month periods. However Other Operating Expenses rose by 82.8% to S$2.3 million mainly due to R&D expenses. The Group is continuously putting in effort on R&D to improve and upgrade on existing products. In addition, it also embarked on a number of R&D projects to develop new products so as to enhance the range of products of the Group and also increase their application in the industries that the Group is currently generating its business. Other gains and losses was a loss of S$103,000 for 9M2014 versus a gain of S$265,000 for 9M2013 which included a gain of S$531,000 from the disposal of a joint venture company, Advanced Xianxing Water Reclamation (Yanting) Co. Ltd which was involved in a Build-Operate-Transfer waste water treatment project in Yanting, China, in June Finance cost increased 40.5% due to interest expense incurred on the bank loan obtained at the end of April 2013 to finance the purchase of the factory building at 30 Woodlands Loop. Although the Group was in a loss position, income tax expense was provided because the tax losses of certain subsidiaries cannot be utilised to offset against the taxable profit of other subsidiaries in the Group and on conservative grounds, not all tax losses have been recognised for deferred tax asset. The nine-month period ended with a loss attributable to owners of the company of S$608,

14 Revenue Industry 9M M 2013 S$ 000 S$ 000 S$ 000 % Oil and Gas 23,901 32,038 (8,137) (25.4) Petrochemicals and Chemicals 29,075 30,336 (1,261) (4.2) Others 6,955 5,441 1, Total 59,931 67,815 (7,884) (11.6) Revenue Geography 9M M 2013 Increase / (Decrease) Increase / (Decrease) S$ 000 S$ 000 S$ 000 % China 32,947 28,040 4, Other Asian Countries 18,701 28,449 (9,748) (34.3) Europe and USA 4,622 4, Others 3,661 6,916 (3,255) (47.1) Total 59,931 67,815 (7,884) (11.6) Oil and Gas and Petrochemicals and Chemicals are the core industries in which the Group generates most of its revenue. Revenue contribution from China increased and made up more than 50% of the Group s revenue whereas the Other Asian markets saw a drop in revenue contribution of 34.3%. Revenue contribution from other regions decreased by 47.1% over the two periods. Statement of Financial Position and Cash Flows The Group s financial position as at 30 September 2014 remained healthy. Other receivables and prepayments rose mainly because of advances paid to suppliers, while advances collected from customers included in trade and other payables also increased. The net amount due from customers for contract work-in-progress increased by S$1.8 million because of progressive costs incurred on uncompleted projects. Inventories were up by S$5.6 million with goods received for delivery in following quarters. Service concession receivables comprised the Group s Build-Operate-Transfer projects which have been treated as financial assets in accordance with INT FRS 112. Arising mainly from the increase in inventory, the Group had a net cash used in operating activities of S$4.4 million for the nine months ended 30 September Capital expenditure on plant and machinery and leasehold improvements totaled S$3.1 million. In financing activities, the final dividend of S$1.8 million declared for FY2013 was paid and net proceeds of S$507,000 from bank borrowings were received. Taking into account the foregoing, the Group s cash and bank balances decreased to S$17.2 million as at 30 September 2014 from S$25.9 million as at 31 December Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. The results reported herein are in line with the announcement made previously. 14

15 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 operating environment remains challenging, particularly the slower growth in China and stalled recovery of the Eurozone economy have led to deferment in new capital expenditure investment. In view of the tight credit market in China, the Group is cautious on pursuing new projects and will be more selective in its bidding of projects. Other than the ongoing investment in R&D, the Group will continue to seek for business opportunities in new market segments and strategic investment projects while maintaining cautious in managing costs, working capital and productivity. As at 30 September 2014 the outstanding order book of the Group was approximately S$97.2 million. The Group s order book may not be indicative of its revenue for any successive periods. 11. Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? No (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the current financial period reported on? No Dividend Paid The interim dividend of 0.3 cent per ordinary share tax exempt (one-tier) totaling S$911,422 was paid on 13 September (c) Date payable Not applicable (d) Books closure date Not applicable 12. If no dividend has been declared/recommended, a statement to that effect. No dividend has been declared or recommended for the quarter ended 30 September

16 13. 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 IPTs. BY ORDER OF THE BOARD Dr Wong Kar King Managing Director 11 November 2014 Confirmation by the Board We refer to the requirement under Rule 705(5) of the Listing Manual. We, Dr Wong Kar King and Mr Lim Boon Cheng, being two directors of Advanced Holdings Ltd. (the Company ), do hereby confirm on behalf of the directors of the Company, that, 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 financial results for the period ended 30 September 2014 to be false or misleading in any material aspect. On behalf of the Board of Directors Dr Wong Kar King Managing Director Mr Lim Boon Cheng Independent Director 16