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1.
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Accounting policies
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The accounting policies and methods of computation are consistent with those adopted in the most recent annual financial statements.
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2.
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Exceptional items
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Exceptional items comprise :-
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Individual
Quarter
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Cumulative
Quarter
|
|
|
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Current Year Quarter |
|
Preceding
Year Corresponding Quarter
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Current
Year to date |
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Preceding
Year Corresponding Period
|
|
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30/09/2000
|
30/09/99
|
30/09/2000
|
30/09/99
|
|
|
|
RM'000
|
RM'000
|
RM'000
|
RM'000
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|
Exchange gain/(loss) on foreign
|
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|
|
|
|
|
|
|
|
|
|
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currency borrowings |
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|
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|
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-
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Realised exchange gain/(loss) |
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9,215
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(2,735
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) |
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9,215
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|
(2,735
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) |
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-
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Write back of provision for exchange
loss |
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(9,069
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)
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3,063
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(9,069
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)
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3,063
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Provision for EuroConvertible
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(5,073
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)
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(5,073
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)
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(5,073
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)
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(5,073
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)
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Bond Put Premiums
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|
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(4,927
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)
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(4,745
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)
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(4,927
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)
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(4,745
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)
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3.
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Extraordinary items
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There were no extraordinary items included in the accounts.
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4.
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Taxation
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Exceptional items comprise :-
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Individual
Quarter
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Cumulative
Quarter
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|
|
Current Year Quarter |
Preceding
Year Corresponding Quarter
|
Current
Year to date
|
Preceding
Year Corresponding Period
|
|
|
30/09/2000
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30/09/99
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30/09/2000
|
30/09/99
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RM'000
|
RM'000
|
RM'000
|
RM'000
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Current taxation
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(4,116
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) |
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(5,125
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) |
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(4,116
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) |
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(5,125
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Deferred taxation
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(4,203
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) |
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(7,019
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) |
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(4,203
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) |
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(7,019
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Share of associated
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companies' taxation
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(29
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) |
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-
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(29
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) |
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-
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(8,348
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) |
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(12,144
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) |
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(8,348
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) |
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(12,144
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) |
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The Group's
effective tax rate is lower than the statutory tax rate due to pioneer status
and reinvestment allowances.
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5.
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Pre-acquisition profits
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There were no pre-acquisition profits included in the accounts.
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6.
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Sale of investments / properties
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There were no sale of investments and/or properties for the financial quarter ended 30 September 2000.
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7.
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Quoted securities
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(a)
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There were no purchase and sale of quoted securities for the financial quarter ended 30 September 2000.
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(b)
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Particulars of investments in quoted shares as at 30 September 2000:-
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RM'000 |
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Total investments at cost
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-
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Associated Companies
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511,250
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-
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Others
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83,351
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594,601
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Total investments at book value (after provision for
appreciation in value)
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596,621
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Total investments at market value
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303,922
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[Back
to Top]
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8.
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Group structure
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The Group’s year-to-date results have not been affected by any form of changes in the composition of the Group.
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9.
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Corporate proposals
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a) |
RM300 million Commercial Paper (“CP”)/Medium Term Notes (“MTN”) Issuance Programme
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On 5 October 2000, Hong Leong Industries Berhad (“HLI”) has announced that the Company propose to undertake a RM300 million Commercial Paper (“CP”)/Medium Term Notes (“MTN”) Issuance Programme (“Programme”). HLI has obtained approval from the Securities Commission on 13 October 2000.
The Programme is a seven (7) years programme involving the issuance of short or medium term promissory notes of between one (1) to eighty four (84) months maturity provided that the maturity dates of the MTN fall within the available period of the
Programme.
The Arranger and Issue/Paying/Programme Agent of the Programme is Citibank
Berhad.
The Programme would enable HLI to raise funds from the domestic capital market, an attractive alternative source of funding. The proceeds from the Programme will be utilised to finance HLI’s working capital and
HLI Group's capital expenditure requirement, and to refinance HLI’s borrowings. |
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10.
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Seasonal / Cyclical factors
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There were no material changes to the factors affecting the sources of income and performance of the Group during the financial quarter ended 30 September 2000.
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11.
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Debt / Equity securities and Share buy-back
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(a)
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There were no issuance or repayment of debts or equity securities, share buy-back, share cancellation, shares held as treasury shares and resale of treasury shares for the financial quarter ended 30 September 2000 other than as mentioned below.
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(b)
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The Executive Share Option Scheme (“ESOS”) of the Company was implemented with effect from 28 December 1999. During the quarter review ended 30 September 2000,
4,600 ordinary shares of RM0.50 each were issued and allotted pursuant to the exercise of the ESOS.
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No. of shares
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RM
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As at 30 June 2000
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225,123,900
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112,561,950
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Ordinary shares issued pursuant to ESOS
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4,600
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2,300
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As at 30 September 2000
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225,128,500
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112,564,250
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(c)
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During the quarter under review, the Company bought back a total of
2,022,000 of its issued share capital from the open market. Total number of shares bought back as at 30 September 2000 were
2,022,000. The shares bought back are being held as treasury shares in accordance with the requirement of Section 67A of the Companies Act, 1965.
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The details of the shares bought back during the financial quarter ended 30 September 2000 were as follows:-
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| Month |
No. of
shares bought back |
Highest
price paid (RM) |
Lowest
price paid (RM) |
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Average
price paid (RM) |
Total
Consideration (RM) |
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August 2000
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287,000
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12.50
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12.30
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12.52
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3,592,975.75 |
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September 2000
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. |
1,735,000 |
. |
12.30 |
. |
8.80 |
. |
9.69 |
. |
16,805,854.74 |
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12.
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Group borrowings
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Particulars of the Group’s borrowings as at 30 September 2000 are as follows :-
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RM'000
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(a)
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Unsecured short term borrowings
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494,710
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(b)
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Unsecured long term borrowings
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1,352,637
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1,847,347
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The above Group’s borrowing include foreign currency as follows :-
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RM'000
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USD borrowings
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480,939
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DM borrowings
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17,360
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13.
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Contingent liabilities
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There are no contingent liabilities to be disclosed as at the date of this report.
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14.
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Off-balance sheet risks
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There are no off-balance sheet risks envisaged as at the date of this report that might materially affect the position or business of the Group.
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[Back
to Top]
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15.
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Material litigation
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There is no pending material litigation against the Group as at the date of this report.
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16.
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Segmental reporting
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Turnover
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Profit
Before Exceptional Items but before Tax
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Profit
After Exceptional Items but before Tax
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Total
Assets Employed
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RM'000
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RM'000
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|
RM'000
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Semiconductor
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413,406
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143,436
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144,086
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2,304,396
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Motorcycles
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86,370
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(3,443
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)
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(3,443
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)
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298,246
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Building Materials
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123,581
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8,222
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8,222
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489,869
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Packaging
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49,119
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5,278
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5,278
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181,492
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Investment holding & others |
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34,164 |
. |
. |
(16,791 |
) |
(21,864 |
) |
. |
1,374,307 |
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706,640 |
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137,206 |
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132,279 |
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4,648,310 |
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Share of losses of |
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- |
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(28,878 |
) |
(28,878 |
) |
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- |
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|
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associated companies |
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|
|
|
|
|
|
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706,640 |
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|
108,328 |
|
103,401 |
. |
. |
4,648,310 |
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17.
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Quarterly analysis
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The Group turnover stand at RM706.6 million for the quarter under review, which is an increase of approximately 14% over the preceding year corresponding quarter. For the quarter under review, the Group profit before taxation was RM103.4 million, an improvement of approximately 16% over the preceding year corresponding quarter of RM88.9 million.
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18.
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Review of results
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The Group continued to record stable and satisfactory results for the quarter under review. The improved performance was in line with the increased domestic demand and continued favourable global economic outlook, especially the semiconductor
industry.
The Group registered a profit attributable to shareholders of RM15.8 million after accounting for the significant loss from an associated company due to foreign exchange loss on foreign currency borrowings which were written off in accordance with
MASB. The Group achieved earnings per share of 7.1 sen for the quarter under review.
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19.
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Prospects
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Barring any unforeseen circumstances, the Board expects the Group to perform satisfactorily in the current financial year. |
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20. |
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Profit forecast / profit
guaranteed |
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There was neither profit forecast prepared nor profit guaranteed by the Group. |
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21. |
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Dividend |
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The Board does not recommend any interim dividend for the financial quarter ended 30 September 2000. |
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By Order of the Board
Hong Leong Industries Berhad
Christine Lee Oi Kuan
Joanne Leong Wei Yin
Company Secretaries
Kuala Lumpur
23 October 2000 |
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