SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE

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1 SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES REPORT AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2005

2 Review Report of Independent Auditor To the Board of Directors and Shareholders of Sino-Thai Engineering and Construction Public Company Limited I have reviewed the accompanying consolidated balance sheet of Sino-Thai Engineering and Construction Public Company Limited and its subsidiaries as at 30 September 2005, the related consolidated earnings statements for the three-month and nine-month periods ended 30 September 2005 and 2004, the related consolidated statements of changes in shareholders equity and cash flows for the nine-month periods ended 30 September 2005 and 2004, and the separate financial statements of Sino-Thai Engineering and Construction Public Company Limited for the same periods. These financial statements are the responsibility of the Company s management as to their correctness and the completeness of the presentation. My responsibility is to issue a report on these financial statements based on my reviews. I conducted my reviews in accordance with the auditing standard applicable to review engagements. This standard requires that I plan and perform the review to obtain moderate assurance as to whether the financial statements are free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. I have not performed an audit and, accordingly, I do not express an audit opinion. Based on my reviews, nothing has come to my attention that causes me to believe that the accompanying financial statements are not presented fairly, in all material respects, in accordance with generally accepted accounting principles. I have previously audited the consolidated financial statements of Sino-Thai Engineering and Construction Public Company Limited and its subsidiaries, and the separate financial statements of Sino-Thai Engineering and Construction Public Company Limited for the year ended 31 December 2004 in accordance with generally accepted auditing standards and expressed an unqualified opinion on those statements under my report dated 14 February The balance sheet as at 31 December 2004, as presented herein for comparative purposes, formed an integral part of the financial statements which I audited and reported on. I have not performed any other audit procedures subsequent to the date of that report. Ernst & Young Office Limited Bangkok: 25 October 2005 Supachai Phanyawattano Certified Public Accountant (Thailand) No. 3930

3 SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES BALANCE SHEETS (Unit: Thousand Baht) Note 30 September December September December 2004 (Unaudited (Unaudited but reviewed) but reviewed) ASSETS CURRENT ASSETS Cash and cash equivalents 1,579, ,964 1,501, ,988 Current investments - marketable securities Accounts and notes receivable Unrelated parties - net 2 1,073, ,466 1,071, ,824 Related parties - net 2, 3 137, , , ,041 Accounts and notes receivable - net 1,210, ,352 1,209, ,865 Unbilled receivables 3 2,651,114 2,037,639 2,651,114 2,039,022 Retention receivables - net 3 562, , , ,510 Construction in progress 1,445,574 1,409,594 1,445,574 1,409,594 Other current assets Advances to subcontractors - net 3 179, , , ,407 Refundable input tax 56,903 15,244 56,903 15,244 Others - net 75,781 36,598 72,480 33,002 TOTAL CURRENT ASSETS 7,763,140 5,139,116 7,679,747 5,120,564 NON-CURRENT ASSETS Fixed deposits with restrictions 4,510 13,342 4,510 13,342 Accounts receivable relating to construction of Suvarnabhumi Airport Rail Link contract 4 295, ,426 - Investments accounted for under equity method 5 235, , , ,827 Excess of net book value of subsidiary over cost of investment (22,725) (25,347) - - Other long-term investments - net 40,386 45,583 31,404 37,301 Loans to related parties - net 3 80, , Loans to other company 78,806 75, Property, plant and equipment - net 3,535,011 2,240,233 3,148,850 1,808,632 Other non-current assets Condominium - net 2,066 2,066 2,000 2,000 Withholding tax 190, , , ,375 Others - net 8,098 6,614 8,886 6,997 TOTAL NON-CURRENT ASSETS 4,448,459 2,870,298 4,385,681 2,746,752 TOTAL ASSETS 12,211,599 8,009,414 12,065,428 7,867,316 The accompanying notes are an integral part of the financial statements.

4 SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES BALANCE SHEETS (Continued) (Unit: Thousand Baht) Note 30 September December September December 2004 (Unaudited (Unaudited but reviewed) but reviewed) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Bank overdrafts and loans from financial institutions 1,328, ,783 1,328, ,783 Accounts and notes payable Unrelated parties 2,570,411 1,687,912 2,570,123 1,681,624 Related parties 3 2,209 28,116 2,209 28,116 Total accounts and notes payable 2,572,620 1,716,028 2,572,332 1,709,740 Unbilled payable 342, , , ,356 Short-term loan from related company ,000 Current portion of hire purchase creditors 76,144 55,662 76,144 55,662 Current portion of financial lease payable 19,033-19,033 - Current portion of debenture 125, , , ,000 Other current liabilities Advances received from construction contracts 3 2,913,807 1,464,033 2,913,807 1,464,033 Undue output tax 90,643 66,694 90,643 66,694 Others 105,647 76,909 96,435 68,816 TOTAL CURRENT LIABILITIES 7,573,826 4,418,465 7,564,326 4,419,084 NON-CURRENT LIABILITIES Hire purchase creditors - net of current portion 68,538 20,330 68,538 20,330 Financial lease payable - net of current portion 35,437-35,437 - Debentures - net of current portion 312, , , ,000 Undue output tax relating to construction of Suvarnabhumi Airport Rail Link contract 4 182, ,019 - Provision for loss of joint ventures 5 2,398 2,395 2,398 2,395 Other liabilities 8,187 8, TOTAL NON-CURRENT LIABILITIES 609, , , ,725 TOTAL LIABILITIES 8,182,905 4,824,365 8,165,218 4,816,809 The accompanying notes are an integral part of the financial statements.

5 SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES BALANCE SHEETS (Continued) (Unit: Thousand Baht) Note 30 September December September December 2004 (Unaudited (Unaudited but reviewed) but reviewed) SHAREHOLDERS' EQUITY Share capital Registered 1,350,250,000 ordinary shares of Baht 1 each (2004: 1,190,250,000 ordinary shares of Baht 1 each) 6 1,350,250 1,190,250 1,350,250 1,190,250 Issued and fully paid 1,023,175,957 ordinary shares of Baht 1 each (2004: 1,015,744,950 ordinary shares of Baht 1 each) 6 1,023,176 1,015,745 1,023,176 1,015,745 Share premium 1,092,328 1,036,000 1,092,328 1,036,000 Revaluation surplus The Company's revaluation surplus 443, , , ,715 Share of revaluation surplus of subsidiary 170, , , , , , , ,806 Warrants 7 490, ,885 - Share subscription received in advance 7 11, , Unrealised losses on available-for-sale securities (3,401) (4,830) (3,401) (4,830) Retained earnings Appropriated - statutory reserve 79,400 79,400 79,400 79,400 Unappropriated 591, , , ,368 Equity attributable to the Company's shareholders 3,900,210 3,050,507 3,900,210 3,050,507 Minority interest - equity attributable to minority shareholders of subsidiaries 128, , TOTAL SHAREHOLDERS' EQUITY 4,028,694 3,185,049 3,900,210 3,050,507 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 12,211,599 8,009,414 12,065,428 7,867, The accompanying notes are an integral part of the financial statements. DIRECTORS

6 SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES EARNINGS STATEMENTS FOR THE THREE-MONTH PERIODS ENDED 30 SEPTEMBER 2005 AND 2004 (Unit: Thousand Baht, except earnings per share expressed in Baht) Note REVENUES Construction and service income 3,086,641 2,185,412 3,076,606 2,167,864 Other income Doubtful debts recovery 800 4, ,387 Interest income 7,349 1,439 5, Others 17,748 5,143 15,345 4,205 Share of profit from investments accounted for under equity method 12,620 3,404 17,335 7,065 TOTAL REVENUES 3,125,158 2,199,785 3,115,239 2,183,814 EXPENSES Cost of construction and service 2,897,073 2,117,637 2,890,245 2,103,008 Selling and administrative expenses 59,260 60,966 58,700 60,496 Directors' remuneration TOTAL EXPENSES 2,956,543 2,178,863 2,949,155 2,163,764 EARNINGS BEFORE INTEREST EXPENSES, CORPORATE INCOME TAX AND MINORITY INTEREST 168,615 20, ,084 20,050 INTEREST EXPENSES (19,364) (8,675) (19,364) (8,675) CORPORATE INCOME TAX 8 (2,195) (7) - - EARNINGS BEFORE MINORITY INTEREST 147,056 12, ,720 11,375 MINORITY INTEREST IN EARNINGS OF SUBSIDIARIES (336) (865) - - NET EARNINGS FOR THE PERIOD 146,720 11, ,720 11,375 EARNINGS PER SHARE Basic earnings per share (Baht) Net earnings Diluted earnings per share (Baht) Net earnings The accompanying notes are an integral part of the financial statements.

7 SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES EARNINGS STATEMENTS FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2005 AND 2004 (Unit: Thousand Baht, except earnings per share expressed in Baht) Note REVENUES Construction and service income 10,120,734 5,677,084 10,093,219 5,600,161 Other income Doubtful debts recovery 4,458 11,428 4,458 11,428 Interest income 23,173 5,259 15,619 1,894 Others 34,499 11,362 29,911 9,945 Share of profit from investments accounted for under equity method 17,969 11,414 30,780 18,154 TOTAL REVENUES 10,200,833 5,716,547 10,173,987 5,641,582 EXPENSES Cost of construction and service 9,563,228 5,383,153 9,544,609 5,314,393 Selling and administrative expenses 206, , , ,550 Directors' remuneration 3, , TOTAL EXPENSES 9,772,594 5,579,700 9,752,478 5,507,513 EARNINGS BEFORE INTEREST EXPENSES, CORPORATE INCOME TAX AND MINORITY INTEREST 428, , , ,069 INTEREST EXPENSES (51,083) (21,378) (51,068) (21,343) CORPORATE INCOME TAX 8 (6,360) (1,043) - - EARNINGS BEFORE MINORITY INTEREST 370, , , ,726 MINORITY INTEREST IN EARNINGS OF SUBSIDIARIES (355) (1,700) - - NET EARNINGS FOR THE PERIOD 370, , , ,726 EARNINGS PER SHARE Basic earnings per share (Baht) Net earnings Diluted earnings per share (Baht) Net earnings The accompanying notes are an integral part of the financial statements.

8 SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES CASH FLOWS STATEMENTS FOR THE NINE-MONTH PERIODS ENDED 3O SEPTEMBER 2005 AND 2004 (Unit: Thousand Baht) CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES Net earnings 370, , , ,726 Adjustments to reconcile net earnings to net cash from (used in) operating activities:- Depreciation 230, , , ,940 Doubtful debts recovery (4,458) (11,428) (4,458) (11,428) Withholding tax written off Amortisation of excess of net book value of subsidiary over cost of investment (2,622) (2,622) (2,622) (2,622) Unrealised loss on changes in fair value of marketable securities 554 1, ,215 Gain on sales of current investments - marketable securities (5,507) - (5,507) - Share of profit from investments accounted for under equity method (17,969) (11,414) (30,780) (18,154) Gain on sales of long-term investments (140) - (140) - Loss of impairment of long-term investments 6,550-6,550 - Unrealised loss on exchange rate 3,804 3,613 3,804 3,613 Loss (gains) on disposal of fixed assets (3,736) 2,236 (3,736) 2,236 Increase in reserves for loss of projects 132 1, ,965 Minority interest in earnings of subsidiaries 355 1, , , , ,491 Decrease (increase) in operating assets Accounts and notes receivable (371,501) 6,855 (377,703) (3,531) Accounts receivable - related parties 18,773 83,998 23,922 81,649 Unbilled receivables (613,475) (849,224) (612,092) (845,278) Construction in progress (35,980) (550,847) (35,980) (550,847) Retention receivables (204,940) (157,642) (205,816) (155,703) Other current assets (100,353) (48,961) (100,649) (44,456) Other assets (314,534) (6,447) (315,597) (9,834) Increase (decrease) in operating liabilities Accounts and notes payable 882, , , ,364 Accounts payable - related parties (25,908) 615 (25,908) 4,914 Unbilled payable 131,056 (111,804) 131,056 (111,804) Advances received from construction contracts 1,445, ,302 1,445, ,302 Other current liabilities 52,553 63,348 51,436 64,845 Other liabilities 182,031 13, ,019 13,002 Net cash from (used in) operating activities 1,624,388 (601,886) 1,602,890 (628,886) The accompanying notes are an integral part of the financial statements.

9 SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES CASH FLOWS STATEMENTS (Continued) FOR THE NINE-MONTH PERIODS ENDED 30 SEPTEMBER 2005 AND 2004 (Unit: Thousand Baht) CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES Decrease in fixed deposits with restrictions 8,832 4,304 8,832 4,304 Cash paid for purchase of current investments - marketable securities (20,000) - (20,000) - Cash received from sales of current investments - marketable securities 25,507-25,507 - Cash paid the purchase of associated company - (68,001) - - Cash paid for purchase of other long-term investments - (38,570) - (38,570) Cash received from sales of other long-term investments , ,570 Decrease (increase) in loans to related parties 32,697 (23,726) 300 2,274 Increase in loans to other parties (3,079) (45) - - Purchases of property, plant and equipment (1,581,787) (526,135) (1,581,654) (525,325) Cash received from sales of fixed assets 25,490 2,736 25,490 2,736 Dividend received 8,399 55,994 8,399 55,994 Net cash used in investing activities (1,503,591) (554,873) (1,532,776) (460,017) CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES Increase in bank overdrafts and loans from financial institutions 625, , , ,733 Increase in hire purchase and financial lease payable 123, ,162 - Repayment of loan from related party - (25,600) (15,000) - Repayment of bond (62,500) - (62,500) - Proceeds from the exercises of warrants 56,506 4,108 56,506 4,108 Proceeds from warrants issued 510, ,000 - Dividend payment (60,944) (303,485) (60,944) (303,485) Net cash from (used in) financing activities 1,191,960 (28,244) 1,176,960 (2,644) Net increase (decrease) in cash and cash equivalents 1,312,757 (1,185,003) 1,247,074 (1,091,547) Cash and cash equivalents at beginning of period 266,964 1,335, ,988 1,183,262 Cash and cash equivalents at end of period 1,579, ,809 1,501,062 91, Supplementary cash flows information Cash paid during period for :- Interest expense 42,328 16,253 42,314 16,218 Corporate income tax 187, , , ,772 The accompanying notes are an integral part of the financial statements.

10 SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1. GENERAL INFORMATION 1.1 Basis for the preparation of interim financial statements These interim financial statements are prepared in accordance with Accounting Standards Pronouncement No. 41 Interim financial statements, with the Company choosing to present condensed interim financial statements. However, additional line items are presented in the balance sheets, and the statements of earnings, changes in shareholders equity and cash flows as in the annual financial statements. The interim financial statements are intended to provide information additional to that included in the latest annual financial statements. Accordingly, they focus on new activities, events and circumstances so as not to duplicate information previously reported. These interim financial statements should therefore be read in conjunction with the latest annual financial statements. 1.2 Basis of interim consolidation The basis of interim consolidation is the same as that for the consolidated financial statements for the year ended 31 December 2004, with no changes in the shareholding structure of the subsidiaries during the period. The above consolidated financial statements do not include the financial statements of Philipp Holzmann (Thai) / U.T.M. Engineering / Sino-Thai Joint Venture, The Joint Venture of Tomen Enterprise (Bangkok) Limited / Sino-Thai Engineering and Construction Plc. / Totems Co., Ltd. and Zueblin - W&F - Stecon Joint Venture which are immaterial to the consolidated financial statements since these joint ventures have already completed their construction projects and have ceased their operations. 1.3 Significant accounting policies The interim financial statements are prepared using the same accounting policies and methods of computation as were used for the financial statements for the year ended 31 December

11 2. ACCOUNTS AND NOTES RECEIVABLE (UNAUDITED BUT REVIEWED) The aging of the outstanding balances of accounts and notes receivable as at the balance sheet dates are as follow:- (Unit: Thousand Baht) 30 September December September December 2004 Unrelated parties Current receivables 346, , , ,508 Past due receivables Less than 4 months 488, , , , months 227,551 24, ,551 21,556 More than 12 months 235, , , ,398 Total 1,298, ,997 1,296, ,781 Less: Allowance for doubtful accounts (225,057) (226,531) (225,057) (225,957) 1,073, ,466 1,071, ,824 Related parties Current receivables 65, ,057 65, ,457 Past due receivables Less than 4 months 63,882 11,345 63,882 13, months 8, , More than 12 months 29,317 29,317 29,317 29,317 Total 166, , , ,244 Less: Allowance for doubtful accounts (29,203) (29,203) (29,203) (29,203) 137, , , ,041 Accounts and notes receivable - net 1,210, ,352 1,209, ,865 The Company and subsidiaries believe that the allowance for doubtful accounts set aside is adequate in the present circumstances

12 3. RELATED PARTY TRANSACTIONS (UNAUDITED BUT REVIEWED) During the periods, the Company had significant business transactions with its subsidiaries, associated companies, joint ventures and related companies (any company which has a shareholder and/or director in common with the Company, with such shareholder or director being in a position to exercise influence over both companies). Such transactions which have been concluded at contract prices which can be comparable to the prices for unrelated parties, are summarised as follow:- (Unit: Million Baht) For the three-month periods Transactions with related companies Construction and service income Cost of construction Transactions with joint venture (eliminated on the consolidated financial statements) Construction and service income Transactions with associated company Construction and service income Other income Transactions with subsidiaries (eliminated on the consolidated financial statements) Rental expenses For the nine-month periods Transactions with related companies Construction and service income Cost of construction Purchase fixed assets Transactions with joint venture (eliminated on the consolidated financial statements) Construction and service income Transactions with associated company Construction and service income Other income Transactions with subsidiaries (eliminated on the consolidated financial statements) Rental expenses

13 The outstanding balances with the related parties have been separately shown in the balance sheets, and can be summarised as follows:- (Unit: Thousand Baht) Relation 30 September December September December 2004 ASSETS Accounts and notes receivable related parties SJ Development Joint Venture Joint Venture - 5,213-10,426 Taisei-Sino-Thai Joint venture Joint Venture 15,313 73,242 15,313 73,242 Philipp Holzmann (Thai) / U.T.M. Engineering / Sino-Thai Joint Venture Joint venture 10,225 10,225 10,225 10,225 TNNS Joint Venture Joint venture 99,957 60,194 99,957 60,194 P.P. Coral Resort Company Limited Associated company 22,254 16,819 22,254 16,761 Others 19,103 19,396 19,108 19,396 Total 166, , , ,244 Less: Provision for doubtful debts (29,203) (29,203) (29,203) (29,203) Net 137, , , ,041 Unbilled receivables SJ Development Joint Venture Joint venture - 1,382-2,765 Taisei-Sino-Thai Joint Venture Joint venture 89, ,835 89, ,835 TNNS Joint Venture Joint venture 197, , , ,809 P.P. Coral Resort Company Limited Associated company 27,435 7,105 27,435 7, , , , ,514 Retention receivables SJ Development Joint Venture Joint venture Taisei-Sino-Thai Joint Venture Joint venture 24,917 34,422 24,917 34,422 TNNS Joint Venture Joint venture 8,064 20,259 8,064 20,259 32,981 55,066 32,981 55,452 Advances to subcontractors STP & I Plc. Common director - 10,565-10,565 Loans to related parties P.P. Coral Resort Company Limited Associated company 80, , Sino-Thai Construction Service Company Limited Former subsidiary 174, , , ,643 MMR Asia Company Limited Former associated company 11,611 11,611 11,611 11,611 The Joint Venture of Tomen Enterprise (Bangkok) Limited / Sino-Thai Engineering and Construction Plc. / Totems Co., Ltd Joint venture IS Geo System Company Limited Former related company 78,567 78,567 78,567 78,567 Total 344, , , ,099 Less: Allowance for doubtful accounts (264,521) (264,821) (264,521) (264,821) Net 80, ,

14 (Unit: Thousand Baht) Relation 30 September December September December 2004 LIABILITIES Accounts and notes payable - related parties STP & I Plc. Common director - 26,021-26,021 STIT Co., Ltd. Common director 2,209 2,095 2,209 2,095 2,209 28,116 2,209 28,116 Short-term loan from related company HTR Corporation Ltd. Subsidiary ,000 Advances received from construction contracts Taisei-Sino-Thai Joint Venture Joint venture 135, , , ,228 TNNS Joint Venture Joint venture 19,260 48,454 19,260 48,454 P.P. Coral Resort Company Limited Associated company 2,193 3,551 2,193 3, , , , , ACCOUNTS RECEIVABLE / UNDUE OUTPUT TAX RELATING TO CONSTRUCTION OF SUVARNABHUMI AIRPORT RAIL LINK CONTRACT In January 2005, the Company has entered into an agreement for the construction of the Suvarnbhumi Airport Rail Link with the State Railway of Thailand (SRT), and a contract to transfer the rights of claim over receipts under this construction contract with 5 local banks by way of issuing bills of exchange without recourse. The contract to transfer the rights of claim states that there is no recourse whatsoever to the Company in respect of the issued bills of exchange and the Company s independent legal counselor agrees that the Company has no liability. The Company, therefore, has not accounted for the liabilities arising as a result of the transfer of the right of claim into its accounts. However, the amount received from the transfer of the rights of claim under the construction contract to the banks, is stated net of related value added tax and withholding tax since such tax obligations arise when the SRT pays the banks to which the rights of claim were transferred, after construction is completed (no later than November 2007 according to the contract). Therefore, as of 30 September 2005, the Company presents the balances of accounts receivable and the relating taxes as long-term assets and liabilities in the balance sheet. SRT is liable for the interest incurred under the contracts in respect of the above arrangement. However, for tax purposes, such interest is considered to be a part of the construction contract. The Company, therefore, will issue tax invoices for such interest when the SRT pays the interest and related taxes to the banks, after construction is completed. The Company has therefore not accounted for the interest into its accounts. As at 30 September 2005, such interest amounts to Baht 62.9 million

15 5. INVESTMENTS ACCOUNTED FOR UNDER EQUITY METHOD / PROVISION FOR LOSS OF JOINT VENTURES (Unit: Thousand Baht) 30 September December September December 2004 Investments in subsidiaries , ,198 Investments in associated companies 235, , , ,629 Investments in joint ventures , , , ,827 Provision for loss of joint ventures 2,398 2,395 2,398 2,395 Cost Equity method 30 September December September December 2004 Investments in associated companies DKK Sino-Thai Engineering Company Limited 2,800 2, , ,629 P.P. Coral Resort Company Limited 68,001 68,001 50,410 54,718 ACS Asia Company Limited 5,000 5,000 8,986 8,986 Less: Provision for impairment of investment (8,986) (8,986) - - Total 235, ,347 Investments in joint ventures Philipp Holzmann (Thai) / U.T.M. Engineering/Sino-Thai Joint Venture 14,861 14,861 Less: Provision for value diminution (14,861) (14,861) Total - - Provision for loss of joint ventures TNNS Joint Venture 2,263 2,263 The Joint Venture of Tomen Enterprise (Bangkok) Limited / Sino-Thai Engineering and Construction Plc. / Totems Co., Ltd Total 2,398 2,

16 Cost Equity method 30 September December September December 2004 Investments in subsidiaries HTR Corporation Limited 440, , , ,429 Sino-Thai Joint Venture SJ Development Joint Venture 1, Total 523, ,198 Investments in associated companies DKK Sino-Thai Engineering Company Limited 2,800 2, , ,629 ACS Asia Company Limited 5,000 5,000 8,986 8,986 Less: Provision for impairment of investment (8,986) (8,986) - - Total 185, ,629 Investments in joint ventures Philipp Holzmann (Thai) / U.T.M. Engineering / Sino-Thai Joint Venture 14,861 14,861 Less: Provision for value diminution (14,861) (14,861) Total - - Provision for loss of joint ventures TNNS Joint Venture 2,263 2,263 The Joint Venture of Tomen Enterprise (Bangkok) Limited / Sino-Thai Engineering and Construction Plc. / Totems Co., Ltd Total 2,398 2,395 Share of profit or loss from the operating results of Sino-Thai Joint Venture (a subsidiary), associated companies and joint ventures of the Company was determined based on financial statements prepared by their managements and not reviewed by their auditors. The Company believes that the value of the investments would not significantly differ had the financial statements been reviewed by auditors. The share of loss from the TNNS Joint Venture was determined based on audited financial statements as at 31 March 2002 and for the period then ended. The Company believes that its interest in the earnings of the joint venture for the period after 31 March 2002 is not significant to its financial statements

17 6. SHARE CAPITAL (UNAUDITED BUT REVIEWED) On 31 May 2005, an Extraordinary General Meeting of the Company s shareholders resolved to increase its registered capital from Baht 1,190,250,000 (1,190,250,000 ordinary shares of Baht 1 each) to Baht 1,350,250,000 (1,350,250,000 ordinary shares of Baht 1 each) through the issue of 160,000,000 new ordinary shares of Baht 1 each. The paid-up share capital of the Company had increased as a result of the exercises of warrants of totaling 7,431,007 ordinary shares. Such increases are detailed as follows:- Number of ordinary shares The exercises of warrants in STEC-W STEC-W2 December ,400 - March ,957,800 - June ,200 5,364,607 Total 2,066,400 5,364,607 On 11 July 2005, the Company registered the increase in its issued an fully paid share capital to Baht 1,023,175,957 (1,023,175,957 ordinary shares of Baht 1 each). 7. WARRANTS The Company issued warrants twice. The warrants are listed in the Stock Exchange of Thailand and are detailed as follows:- Warrants names in the Stock Exchange of Thailand STEC-W STEC-W2 Extraordinary General Meeting of Shareholders resolution date 14 February August 2004 Total number of warrants issued (units) 170,000, ,000,000 Ratio of existing ordinary shareholders rights to purchase warrants (ordinary shares : warrants) 5 : 1 6 : 1 Proposed selling prices for 1 unit of warrants (Baht) none 3.0 Exercised period as from the issued date (years) 5 3 Expired date 30 May April 2008 Exercised ratio (warrant : ordinary share) 1 : 1 1 : 1 Exercised price (Baht per unit) Warrants exercised on 30 September 2005 * - Number of warrants (units) 299,700 1,006,932 - Amount received from this exercise (Baht) 299,700 8,558,922 Remaining unexercised warrants after the warrants exercised on 30 September 2005 (units) 1,888, ,628,461 * The Company registered the increase in issued and fully paid share on 11 October 2005 for this new ordinary shares. Therefore, as of 30 September 2005, these exercised warrants were presented as share subscription received in advance in shareholders equity.

18 8. CORPORATE INCOME TAX (UNAUDITED BUT REVIEWED) No corporate income tax is payable since the tax losses brought forward from the previous year exceed the net earnings for the periods. 9. RECONCILIATION OF DILUTED EARNINGS PER SHARE Weighted average Net earnings number of ordinary shares Earnings per share Thousand Baht Thousand Baht Million shares Million shares Baht Baht For the three-month periods ended 30 September 2005 and 2004 Basic earnings per share Net earnings 146,720 11,375 1,023 1, Effect of dilutive securities Diluted earnings per share Net earnings of ordinary shareholders assuming the conversion of dilutive securities 146,720 11,375 1,064 1, Outstanding warrants, including the warrants exercised but the Company registered the paid-up capital after balance sheet date (unit) 30 September ,824, September ,353,050 Weighted average Net earnings number of ordinary shares Earnings per share Thousand Baht Thousand Baht Million shares Million shares Baht Baht For the nine-month periods ended 30 September 2005 and 2004 Basic earnings per share Net earnings 370, ,726 1,019 1, Effect of dilutive securities Diluted earnings per share Net earnings of ordinary shareholders assuming the conversion of dilutive securities 370, ,726 1,059 1, Outstanding warrants, including the warrants exercised but the Company registered the paid-up capital after balance sheet date (unit) 30 September ,824, September ,353,

19 10. DIVIDEND On 28 April 2005, the Annual General Meeting of the Company s shareholders resolved to pay a dividend of Baht 0.06 per share, totaling Baht million, to its shareholders in respect of 2004 earnings. The dividends were distributed to the Company s shareholders in May CONTRACTS IN PROGRESS As at 30 September 2005, the Company has aggregate amount of construction cost incurred and recognised profits or losses to date for contracts in progress of approximately Baht 20,362 million and has gross amounts due from customers for contracts in progress of approximately Baht 4,097 million. 12. FINANCIAL INFORMATION BY SEGMENT The operations of the Company and subsidiaries principally involve construction contracting, office building rental and property development, and are mostly carried on in the single geographic area of Thailand. As a result, all of the revenues, operating results and assets as reflected in these financial statements pertain to the aforementioned industry segments and geographic area. The financial information by segment for the three-month and nine-month periods ended 30 September is as follow:- (Unit: Million Baht) Office building Construction rental and property Contracting development Total For the three-month periods ended 30 September Construction and rental income 3,076 2, ,086 2,186 Less: Cost of construction and services (2,890) (2,112) (7) (6) (2,897) (2,118) Gross profit For the nine-month periods ended 30 September Construction and rental income 10,093 5, ,121 5,677 Less: Cost of construction and services (9,543) (5,366) (20) (17) (9,563) (5,383) Gross profit As at 30 September Property, plant and equipment 3,149 1, ,535 2,013 Other assets 8,371 4, ,677 5,055 Total assets 11,520 6, ,212 7,

20 13. CREDIT FACILITIES The credit facilities of the Company and subsidiaries granted by financial institutions have been secured by the guarantees and mortgages/pledges of the assets listed below. 1. Fixed deposits, as at 30 September 2005, of Baht 5 million (31 December 2004: Baht 13 million) million shares of HTR Corporation Limited 3. Most of the Company s land. 4. The transfer of the right of the claim of collections from employers under some construction contracts to a bank. The Company is able to withdraw the related bank account with no restrictions. As at 30 September 2005, the balance of the accounts receivable under the right transfer agreement was Baht 86 million (31 December 2004: Baht 138 million). 14. COMMITMENTS AND CONTINGENT LIABILITIES As at 30 September 2005, the Company and subsidiaries had the following commitments and contingent liabilities: Letters of guarantee totaling Baht 7,214 million (31 December 2004: Baht 4,481 million), issued by financial institutions on behalf of the Company in respect of certain performance bonds as required in the normal course of the businesses of the Company, subsidiaries and joint ventures The Company has been sued for compensation totaling approximately Baht 25 million. The cases are still being considered by the Civil Court and the Central Bankruptcy Court. The Company s management believes that the outcome of these cases will be favorable to the Company and therefore no provision for liability has been set aside in the accounts. 15. FOREIGN CURRENCY RISK A summary of foreign-currency assets and liabilities that were unhedged as at 30 September 2005 is set out below. Assets Liabilities Amount Yen 36.9 million Yen million 16. APPROVAL OF INTERIM FINANCIAL STATEMENTS These interim financial statements have been approved by the Company s directors