|
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 |
|
Preceding
Year Corresponding Quarter
|
|
Current
Year to date |
|
Preceding
Year Corresponding Period
|
|
|
|
31/12/2000
|
31/12/1999
|
31/12/2000
|
31/12/1999
|
|
|
|
RM'000
|
RM'000
|
RM'000
|
RM'000
|
|
Exchange gain/(loss) on foreign currency borrowings
|
|
- |
|
|
(480
|
)
|
|
|
|
|
(152
|
)
|
|
Provision for EuroConvertible
|
|
88
|
|
|
(5,073
|
)
|
|
(4,985
|
)
|
|
(10,146
|
)
|
|
|
Bond Put Premiums
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88
|
|
|
(5,553
|
)
|
|
(4,985
|
)
|
|
(10,298
|
)
|
|
|
3.
|
|
Extraordinary items
|
|
|
|
There were no extraordinary items included in the accounts.
|
|
4.
|
|
Taxation
|
| |
|
|
Exceptional items comprise :-
|
Individual
Quarter
|
Cumulative
Quarter
|
|
|
Current Year Quarter |
Preceding
Year Corresponding Quarter
|
Current
Year to date
|
Preceding
Year Corresponding Period
|
|
|
31/12/2000
|
31/12/1999
|
31/12/2000
|
31/12/1999
|
|
|
RM'000
|
RM'000
|
RM'000
|
RM'000
|
|
Taxation
|
- Current Year
|
|
4,327
|
|
|
4,677
|
|
|
8,443
|
|
|
9,801
|
|
|
|
- Under provision in prior year
|
|
218
|
|
|
-
|
|
|
218
|
|
|
-
|
|
|
Deferred taxation
|
|
4,203
|
|
|
7,018
|
|
|
8,406
|
|
|
14,037
|
|
|
Share of associated
companies' taxation
|
|
909
|
|
|
1,010
|
|
|
938
|
|
|
1,010
|
|
|
|
|
9,657
|
|
|
12,705
|
|
|
18,005
|
|
|
24,848
|
|
|
The Group's
effective tax rate is lower than the statutory tax rate due to pioneer status
and reinvestment allowances.
|
|
|
5.
|
|
Pre-acquisition profits
|
|
|
|
There were no pre-acquisition profits included in the accounts.
|
|
6.
|
|
Sale of investments / properties
|
|
|
|
There were no sale of investments and/or properties for the financial quarter ended
31 December 2000.
|
|
7.
|
|
Quoted securities
|
| |
|
|
(a)
|
There were no purchase and sale of quoted securities for the financial quarter ended
31 December 2000.
|
|
(b)
|
Particulars of investments in quoted shares as at
31 December 2000:-
|
|
|
|
|
|
|
|
RM'000 |
|
|
|
Total investments at cost
|
|
|
|
|
|
-
|
Associated Companies
|
|
511,250
|
|
|
|
-
|
Others
|
|
83,351
|
|
|
|
|
594,601
|
|
|
|
Total investments at book value (after provision for
appreciation in value)
|
|
596,861
|
|
|
|
Total investments at market value
|
|
221,512
|
|
|
|
8.
|
|
Group structure
|
|
|
|
The Group’s year-to-date results have not been affected by any form of changes in the composition of the Group.
|
|
|
|
(a)
|
The Company’s wholly-owned subsidiary company, Mai Kah Corporation Sdn Bhd ("MKC") has been put under voluntary winding-up pursuant to Section 254(1)(b) of the Companies Act 1965 on 10 July 2000. Subsequently, the Company had, on 2 January 2001, filed an affidavit with the court to stay the winding up of MKC.
|
|
|
|
(b)
|
Quayline Company Pte Ltd, a wholly-owned subsidiary of the Company is presently under voluntary winding up pursuant to Section 290(1)(b) of the Singapore’s Companies Act (Chapter 50).
|
|
|
|
(c)
|
The Company had, on 11 November 2000, entered into an agreement to dispose of its entire 70% equity interest in Autonet Sdn Bhd comprising 1,260,000 ordinary shares of RM1.00 each, to Auto Concessionaries Sdn Bhd for a total cash consideration of RM126.00. ("Disposal"). The Disposal was completed on 11 November 2000.
|
|
|
|
(d)
|
The Company had, on 14 November 2000, disposed of its entire equity interest in Guotrade Holdings Sdn Bhd comprising 2 ordinary shares of RM1.00 each to Ms Lee Oi Kuan and Ms Leong Wei Yin, for a total cash consideration of RM2.00.
|
|
|
|
(e)
|
The Company had, on 14 December 2000, acquired the entire equity interest in Kasih Sayang Realty Sdn Bhd comprising 290,000 ordinary shares of RM1.00 each from Taman Terang Sdn Bhd, a wholly-owned subsidiary of the Company, for a total cash consideration of RM1.00.
|
|
9.
|
|
Corporate proposals
|
|
|
|
|
(a) |
Deferment of Put Option Date For The USD73,480,000 Zero Coupon Euro-convertible Bonds Due 2006 From 25 October 2001 to 25 October 2005
|
|
|
The Company issued USD73,480,000 principal amount of the Bonds on 25 October 1996. Under the terms of the Bonds, the Bondholders have a put option to require Hong Leong Industries Berhad ("HLIB") to redeem the Bonds on 25 October 2001 (the “Put Option Date”) at 120.3% of its principal amount or to convert their Bonds into new HLIB's ordinary shares of RM0.50 each at a conversion price of RM8.20 per share at a fixed exchange rate of USD1.00 : RM2.50508 on or before 25 October 2006.
The Securities Commission, Bank Negara Malaysia and the Bondholders have approved the Company’s extension of the put option date from 25 October 2001 to 25 October 2005 and revision of certain terms and conditions of the Bonds. The completion is now pending finalisation of documents.
|
|
(b) |
Redirection of Proceeds And Extension of Time |
|
Out of the total of RM574.862 million raised from the fund raising exercise by the Company in 1997, an amount of RM3.563 million which have been earmarked for the repayment of bank borrowings of a subsidiary of the Company, which has been disposed of, remained unutilised. On 4 January 2001, the Securities Commission has approved the following:- |
|
(i) |
the redirection of the unutilised fund of RM3.563 million ("Unutilised Amount") from the Company’s fund raising exercise in 1997 for the Group’s working capital
purposes; and |
|
(ii) |
an extension of time up to 31 March 2001 to fully utilise the Unutilised Amount. |
|
(c) |
Proposed Transfer of Land From Guolene Plastic Products Sdn Bhd to Guolene Packaging & Printing Sdn Bhd. |
|
On 16 January 2001, Guolene Plastic Products Sdn Bhd, an indirect subsidiary of the Company, entered into a Sale & Purchase Agreement to transfer two (2) parcels of
land together with a building erected thereon, to Guolene Printing & Packaging Sdn Bhd ("GP&P"), another indirect subsidiary of the Company, for a total cash consideration of RM10,000,000. The transfer of land title to GP&P is pending registration with the Land Office. |
|
|
10.
|
|
Seasonal / Cyclical factors
|
|
|
|
There were no material changes to the factors affecting the sources of income and performance of the Group during the financial quarter ended
31 December 2000.
|
|
11.
|
|
Debt / Equity securities and Share buy-back
|
| |
|
|
(a)
|
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
31 December 2000 other than as mentioned below.
|
|
(b)
|
The Executive Share Option Scheme (“ESOS”) of the Company was implemented with effect from 28 December 1999. During the quarter review ended
31 December 2000,
4,600 ordinary shares of RM0.50 each were issued and allotted pursuant to the exercise of the ESOS.
|
|
| |
|
|
|
|
|
No. of shares
|
|
RM
|
|
|
|
As at 1 July 2000
|
|
|
225,123,900
|
|
112,561,950
|
|
|
|
Ordinary shares issued pursuant to ESOS
|
|
|
4,600
|
|
2,300
|
|
|
|
As at 31 December 2000
|
|
|
225,128,500
|
|
112,564,250
|
|
|
| |
|
|
(c)
|
During the
financial period under review, the Company bought back a total of 7,344,000 of its issued share capital from the open market. Total number of shares bought back as at
31 December 2000 were 7,344,000. The shares bought back are being held as treasury shares in accordance with the requirement of Section 67A of the Companies Act, 1965.
|
|
|
The details of the shares bought back during the financial quarter ended
31 December 2000 were as follows:-
|
|
|
| Month |
No. of
shares bought back |
Highest
price paid (RM) |
Lowest
price paid (RM) |
|
Average
price paid (RM) |
Total
Consideration (RM) |
|
August 2000
|
|
287,000
|
|
12.50
|
|
12.30
|
|
12.52
|
|
3,592,975.75 |
|
September 2000
|
|
1,735,000
|
|
12.30
|
|
8.70
|
|
9.69
|
|
16,794,603.77 |
|
October 2000
|
|
571,000
|
|
9.20
|
|
8.30
|
|
7.74
|
|
5,071,989.67 |
|
November 2000
|
|
1,157,000
|
|
8.95
|
|
7.00
|
|
8.23
|
|
9,099,141.81 |
|
December 2000
|
. |
3,594,000 |
. |
7.05 |
. |
6.50 |
. |
6.99 |
. |
25,276,882.56 |
|
|
|
12.
|
|
Group borrowings
|
| |
|
|
Particulars of the Group’s borrowings as at
31 December 2000 are as follows :-
|
|
|
|
|
RM'000
|
|
|
(a)
|
Unsecured short term borrowings
|
|
828,276
|
|
|
(b)
|
Unsecured long term borrowings
|
|
1,147,041
|
|
|
|
|
|
1,975,317
|
|
|
The above Group’s borrowing include foreign currency as follows :-
|
|
|
|
|
RM'000
|
|
|
|
USD borrowings
|
|
479,162
|
|
|
|
DM borrowings
|
|
18,547
|
|
|
|
13.
|
|
Contingent liabilities
|
|
|
|
There are no contingent liabilities to be disclosed as at the date of this report.
|
|
14.
|
|
Off-balance sheet risks
|
|
|
|
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.
|
|
15.
|
|
Material litigation
|
|
|
|
There is no pending material litigation against the Group as at the date of this report.
|
|
16.
|
|
Segmental reporting
|
| |
|
|
|
|
Turnover
|
|
Profit
Before Tax
|
|
Total
Assets Employed
|
|
|
|
RM'000
|
|
RM'000
|
|
RM'000
|
|
|
Semiconductor
|
|
819,961
|
|
|
277,678
|
|
|
2,443,252
|
|
|
Motorcycles
|
|
172,071
|
|
|
(7,034
|
)
|
|
347,331
|
|
|
Building Materials
|
|
245,983
|
|
|
14,328
|
|
|
575,953
|
|
|
Packaging
|
|
97,492
|
|
|
9,785
|
|
|
232,668
|
|
|
Investment holding & others |
|
56,419 |
. |
. |
(45,809 |
) |
. |
1,121,971 |
|
|
|
|
1,391,926 |
|
|
248,948 |
|
|
4,721,175 |
|
|
Share of losses of |
|
- |
|
|
(23,319 |
) |
|
- |
|
|
|
associated companies |
|
|
|
|
|
|
|
|
|
|
|
|
1,391,926 |
|
|
225,629 |
|
. |
4,721,175 |
|
|
|
17.
|
|
Quarterly analysis
|
|
|
|
For the quarter under review, the Group recorded a profit before taxation of RM122.2 million, an improvement of approximately 18.2% over the preceding quarter of RM103.4
million.
The Group achieved an earnings per share of 17.4 sen for the quarter under review as compared to 7.1 sen for the previous quarter.
|
|
18.
|
|
Review of results
|
|
|
|
The Group recorded a turnover and profit before taxation of RM685.3 million and RM122.2 million respectively for the current quarter, representing an increase of 7.1% and 22.2% respectively over the preceding year's corresponding period.
|
|
19.
|
|
Prospects
|
|
|
|
Barring any unforeseen circumstances, the Board expects the Group to perform satisfactorily in the current financial year provided there is no major slow down in the US economy which will affect the semiconductor industry. |
|
20. |
|
Profit forecast / profit
guaranteed |
|
|
|
There was neither profit forecast prepared nor profit guaranteed by the Group. |
|
21. |
|
Dividend |
|
|
|
The Board of Directors has declared an interim dividend of 10% tax exempt and a further special interim dividend of 15% less tax for the six months ended 31 December 2000 for the financial year 2000/2001 (1999/2000 : 10% tax exempt) to be paid on 13 March 2001 to holders of ordinary shares whose names appear in the Record of Depositors at the close of business on 27 February
2001.
This is to inform that a Depositor shall qualify for entitlement only in respect of :- |
|
|
|
(a) |
shares transferred into the Depositor's securities account before 12:30 pm on 27 February 2001 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. |
|
|
|
In respect of the financial year ended 30 June 2000, the proportion of final dividend attributable to shares bought back by the Company and Malaysian Pacific Industries Berhad, a subsidiary of the Company, from 1 July 2000 to the dividend entitlement date on 1 November 2000 and 25 October 2000 respectively, which amounted to RM351,000 and RM837,000 respectively, have been reversed and adjusted against retained earnings during the current financial period. |
|
By Order of the Board
Hong Leong Industries Berhad
Christine Lee Oi Kuan
Joanne Leong Wei Yin
Company Secretaries
Kuala Lumpur
7 February 2001 |
|