Malaysian Pacific Industries Berhad (4817-U)

QUARTERLY REPORT ON CONSOLIDATED RESULTS

FOR THE FINANCIAL QUARTER ENDED 30 JUNE 2002

The Figures have not been audited.

Accounting policies

The accounting policies and methods of computation are consistent with those adopted in the most recent annual audited financial statements.

2.

Exceptional items

Exceptional items comprise :-

Individual Quarter

Cumulative Quarter

Current Year Quarter

30/06/2002

RM'000

Preceding Year Corresponding Quarter

30/06/2001

RM'000

Current Year- To-Date

30/06/2002

RM'000

Preceding Year Corresponding Period

30/06/2001

RM'000

Amortisation of Deferred Exchange Differences

-

-

-

(6,832)

-

-

-

(6,832)

3.

Extraordinary items

There were no extraordinary items for the current quarter and financial year to-date.

4.

Taxation

Taxation comprise :-

Individual Quarter

Cumulative Quarter

Current Year Quarter

30/06/2002

RM'000

Preceding Year Corresponding Quarter

30/06/2001

RM'000

Current Year- To-Date

30/06/2002

RM'000

Preceding Year Corresponding Period

30/06/2001

RM'000

Current taxation

656

1,186

3,077

7,237

Deferred taxation

2,752

4,203

17,008

16,812

3,408

5,389

20,085

24,049

The Group’s effective tax rate is higher than the statutory tax rate due to the non-availability of group relief where tax losses of certain subsidiary companies can not be set-off against the taxable income of other subsidiary companies.

5.

Sale of investments / properties

There were no profit or loss on any sale of unquoted investments and/or properties for the current quarter and the financial year-to-date other than as mentioned below:

Loss on disposal of unquoted investments

Current Year Quarter

30/06/2002

RM’000

Current Year-To-Date

30/06/2002

RM’000

-

2,835

6.

Quoted securities

(a)

There were no purchase or disposal of quoted securities for the current quarter and financial year-to-date other than as mentioned below:

Current Year Quarter

30/06/2002

RM’000

Current Year-To-Date

30/06/2002

RM’000

(i)  Purchases

-

3,915

(ii) Disposal

Sale proceeds

Cost of investment

-

-

20,960

(10,431)

Profit on disposal

-

10,529

(b)

Particulars of investments in quoted shares as at 30 June 2002:-

RM’000

Total investments at cost:      

54,848

Total investments at book value (after provision for diminution in value)

54,848

Total investments at market value

64,196

7.

Group structure

The Group’s year-to-date results have not been affected by any form of changes in the composition of the Group other than as mentioned below:-

(i)                  Signal Technology Sdn Bhd, a subsidiary of the Company has been placed under member’s voluntary winding-up pursuant to Section 254(1)(b) of the Companies Act, 1965 and is currently pending tax clearance from the Inland Revenue Board.

(ii)                The Company has, on 8 February 2002, disposed of its entire equity interest, comprising 2 ordinary shares of RM1.00 each, in Classic Products Sdn. Bhd., a dormant company, for a cash consideration of RM2.00.

(iii)               The Company has incorporated a wholly owned subsidiary in the People’s Republic of China (PRC), known as “Carsem Semiconductor (Suzhou) Co. Ltd., with an initial paid-in capital of USD 1 million.   This is to enable the Group to expand its semiconductor business into PRC.

8.

Corporate proposals

There were no corporate proposal announced other than as mentioned below:-

Commerce International Merchant Bankers Berhad, on behalf of the Company has, on 25 March 2002, announced the Company’s proposed amendments and thereafter adoption of the amended and restated Bye-Laws of the Executive Share Option Scheme (“Scheme”) and the proposed extension of the duration of the Scheme for an additional period of five (5) years (“Proposal")

The Securities Commission had, via a letter dated 16 May 2002, approved the Company’s application on the Proposal. The Proposal is now pending approvals from the Company’s shareholders and grantees.

9.

Debt / Equity securities and share buy back

There were no issuance or repayment of debts or equity securities, share buy back, share cancellation or resale of treasury shares during the current financial year-to-date.

10.

Group’s borrowings

Particulars of  the Group’s borrowings as at 30 June 2002 are as follows :-

RM’000

(i)

Unsecured short term borrowings

106,922

(ii)

Unsecured long term borrowings

221,225

328,147

The above include borrowing denominated in foreign currency as follows :-

RM’000

USD borrowings

183,613

11.

Contingent  liabilities

There is no contingent liability to be disclosed as at the date of this report.

12.

Off-balance sheet risks

There is no off-balance sheet risk envisaged as at the date of this report that might materially affect the position or business of the Group.

13.

Material litigation

There is no material litigation against the Group as at the date of this report.

14.

Segmental reporting

The Group’s segmental report for the financial year to-date are as follows:-

Turnover

RM’000

Profit Before Tax

RM’000

Total Assets

Employed

RM’000

Semiconductor

767,873

(19,890)

1,328,188

Investment holding & others

969

2,099

217,062

768,842

(17,791)

1,545,250

15.

Material Changes in Profit Before Taxation

For the quarter under review, there was a turnaround in the Group's profit before tax to RM13.1 million from a loss before tax of RM10.0 million for the preceding quarter.  The improvement is attributable to an increase in sales, improved factory utilisation rates and the effects of its restructuring and streamlining exercises undertaken in the previous quarters.

16.

Review of results

Revenue improved by 25% to RM227.7 million from the last quarter’s RM181.7 million, marking three consecutive quarters of growth.   Improvement in business was seen across all product lines.   This rejuvenated business is the result of excess inventories in the electronics sector having dropped to more manageable levels such that new demand has to be met by new orders.

Accordingly, the Group recorded a profit after tax of RM7.2 million in the current quarter under review compared with a loss after tax of RM12.3 million in the preceding quarter.

17.

Material events not reflected in financial statements

There are no material subsequent events to be disclosed as at the date of this report.

18.

Seasonal / Cyclical factors

There were no material changes to the factors affecting the sources of income and performance of the Group for the quarter under review.

19.

Prospects

The rate of growth seen this quarter is the most encouraging indicator of the industry recovering from a severe downturn.   The board expects performance to continue to improve, barring any unforeseen circumstances.

20.

Profit forecast / profit guaranteed

This note is not applicable.

21.

Dividend

The Board has already declared a first and second interim dividend in February and May totalling 60% tax exempt and 30% less tax (2000/2001: 60% tax exempt, 50% special tax exempt and 30% less tax). The Board does not recommend any final dividend  (2000/ 2001: nil) for the year ended 30 June 2002.