Malaysian Pacific Industries Berhad (4817-U)

QUARTERLY REPORT ON CONSOLIDATED RESULTS

FOR THE FINANCIAL QUARTER ENDED 31 DECEMBER 2001

The Figures have not been audited.

1.

Accounting policies

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

2.

Exceptional items

Exceptional items comprise :-

Individual Quarter

Cumulative Quarter

Current Year Quarter

31/12/2001

RM'000

Preceding Year Corresponding Quarter

31/12/2000

RM'000

Current Year- To-Date

31/12/2001

RM'000

Preceding Year Corresponding Period

31/12/2000

RM'000

Realised exchange gain

-

-

-

-

Amortisation of Deferred Exchange Differences

-

-

-

(6,832)

-

-

-

(6,832)

3.

Extraordinary items

There were no extraordinary items included in the accounts.

4.

Taxation

Taxation comprise :-

Individual Quarter

Cumulative Quarter

Current Year Quarter

31/12/2001

RM'000

Preceding Year Corresponding Quarter

31/12/2000

RM'000

Current Year- To-Date

31/12/2001

RM'000

Preceding Year Corresponding Period

31/12/2000

RM'000

Current taxation

956

2,038

1,693

4,845

Deferred taxation

4,752

4,203

9,504

8,406

5,708

6,241

11,197

13,251

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

31/12/2001

RM’000

Current Year-To-Date

31/12/2001

RM’000

2,835

2,835

6.

Quoted securities

(a)

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

Current Year Quarter

31/12/2001

RM’000

Current Year-To-Date

31/12/2001

RM’000

(i)  Purchases

-

3,915

(ii) Disposal

Sale proceeds

Cost of investment

20,960

(10,431)

20,960

(10,431)

Profit on disposal

10,529

10,529

(b)

Particulars of investments in quoted shares as at 31 December 2001:-

RM’000

Total investments at cost:      

54,848

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

47,823

Total investments at market value

45,149

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 Berhad, 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.

8.

 Corporate proposals

There were no corporate proposal raised during the financial year-to-date.

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 31 December 2001 are as follows :-

RM’000

(i)

Unsecured short term borrowings

85,062

(ii)

Unsecured long term borrowings

282,395

367,457

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

RM’000

USD borrowings

203,103

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

359,411

(18,668)

1,391,050

Investment holding & others

96

(2,293)

289,712

359,507

(20,961)

1,680,762

15.

Quarterly analysis

Compared with the last quarter, revenue has improved marginally by 1%.   Loss before tax, however, improved by 46.6% to RM7.3 million from a loss of RM13.6 million.

16.

Review of results

The semiconductor industry enjoyed renewed demand during the start of this quarter, especially for components going into cellphones and consumer electronics. However, the demand could not be sustained and orders flattened off in December.  The positive note here, though, is that this is the first improvement after five quarters of decline, leading many to believe that the worst is probably over for the industry.

For the financial quarter ended 31 December 2001, the Group recorded a turnover of RM180.7 million.   Loss attributable to shareholders dropped to RM11.3 million, representing a loss of 5.7 sen per share, which is a 33% improvement over last quarter’s  8.5 sen loss.

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

This quarter’s demand was said to be driven by year-end stocking up for the Christmas and New Year sales.

19.

Prospects

Short-term outlook still remains uncertain.   However, worldwide semiconductor sales are expected to pick up in the second half of calendar year 2002.

20.

Profit forecast / profit guaranteed

This note is not applicable.

21.

Dividend

The Board has declared an interim dividend of 30% tax exempt for the 6 months ended 31 December 2001 of the financial year 2001/2002 (6 months ended 31 December 2000 of the financial year 2000/2001 : 30% tax exempt and a further special interim dividend of 30% tax exempt) to be paid on 19 March 2002 to holders of ordinary shares whose names appear in the Record of Depositors at the close of business on 5 March 2002.

This is to inform that a Depositor shall qualify for the entitlement only in respect of:-

(a)      shares transferred into the Depositor’s securities account before 12.30 p.m. on 5 March 2002 in respect of ordinary transfers; and

(b)      shares bought on the Kuala Lumpur Stock Exchange on a cum entitlement basis according to the Rules of the Kuala Lumpur Stock Exchange.