Malaysian Pacific Industries Berhad (4817-U)

QUARTERLY REPORT ON CONSOLIDATED RESULTS

FOR THE FINANCIAL QUARTER ENDED 31 MARCH 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 financial statements.

2.

Exceptional items

Exceptional items comprise :-

Individual Quarter

Cumulative Quarter

Current Year Quarter

31/03/2002

RM'000

Preceding Year Corresponding Quarter

31/03/2001

RM'000

Current Year- To-Date

31/03/2002

RM'000

Preceding Year Corresponding Period

31/03/2001

RM'000

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

31/03/2002

RM'000

Preceding Year Corresponding Quarter

31/03/2001

RM'000

Current Year- To-Date

31/03/2002

RM'000

Preceding Year Corresponding Period

31/03/2001

RM'000

Current taxation

727

1,206

2,421

6,051

Deferred taxation

4,752

4,203

14,256

12,609

5,479

5,409

16,677

18,660

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

31/03/2002

RM’000

Current Year-To-Date

31/03/2002

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

31/03/2002

RM’000

Current Year-To-Date

31/03/2002

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 31 March 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

56,884

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 had, on 8 February 2002, disposed of its entire equity interest, comprising of 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.

Corporate proposals

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

Commerce International Merchant Bankers Berhad, on behalf of the Company had, on 25 March 2002, announced the Company’s proposed amendments and thereafter adoption of the amended and restated bye-laws of the Employee Share Option Scheme and Proposed extension of the duration of the Employee Share Option Scheme for an additional period of Five (5) years.   This proposal is still pending the approval of the Securities Commission.

 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 March 2002 are as follows :-

RM’000

(i)

Unsecured short term borrowings

114,578

(ii)

Unsecured long term borrowings

246,612

361,190

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

RM’000

USD borrowings

200,591

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

540,789

(34,823)

1,398,218

Investment holding & others

399

3,899

254,597

541,188

(30,924)

1,652,815

15.

Quarterly analysis

Group loss before tax increased by RM2.6 million to RM9.9 million. This loss is inclusive of a one-off restructuring charge incurred by one of its subsidiaries in respect of the closure of its overseas operation and subsequent relocation of the business to Malaysia.

16.

Review of results

After a disappointing start for the quarter, business improved from mid-February onwards.   The semiconductor industry had been saddled with very high inventory levels for the past eighteen months or so.  Consequently, many companies had focused on production cutbacks and stock depletion.   It is believed that stocks have now dropped to a level where new orders have to be placed.

This late revival in orders has enabled the Group to grow its turnover marginally to RM181.7 million, thus marking two quarters of consecutive growth.  Loss attributable to shareholders rose by RM1 million to RM12.3 million, representing a loss per share of 6.2 sen.

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

Demand for January was low because the festive shopping season was over.  This coincided with many customers having extended their Christmas and New Year holiday shutdowns into January.

19.

Prospects

The semiconductor industry is cautiously optimistic that its long awaited recovery seems to have started and it now looks poised for a recovery.   Barring any unforeseen circumstances, the Board expects the Group to perform satisfactorily for the rest of this financial year.

20.

Profit forecast / profit guaranteed

This note is not applicable.

21.

Dividend

The Board has declared a second interim dividend of 60% (30% tax exempt, 30% less tax), for the financial year ending 30 June 2002 (2000/2001 : 30% tax exempt, 30% less tax and a special dividend of 20% tax exempt) to be paid on 18 June 2002 to holders of ordinary shares whose names appear in the Record of Depositors at the close of business on 31 May 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  31 May 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.