Accounting policies

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

3.

Extraordinary items

There were no extraordinary items included in the accounts.

Taxation

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 profit or loss on any sale of investments and/or properties for the financial period ended 31 March 2001.

7.

Quoted securities

(a)

There  were purchases of RM3,240,000 quoted securities and  no sale of quoted securities for the financial period ended 31 March 2001.

(b)

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

Total Investment at cost:

RM’000

-           Associated Companies

-           Others

511,250

86,591

597,841

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

600,909

Total investments at market value

180,241

8.

Group structure

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

(I)

Quarter Ended 31 December 2000

(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.

(II)

Quarter Ended 31 March 2001

(a)

On 13 April 2001, the Kuala Lumpur High Court has approved Mai Kah Corporation Sdn Bhd’s stay of winding-up.

(b)

The Company’s  subsidiary company, Guolene Packaging Industries Berhad ("GPIB") had, on 16 April 2001, entered into an agreement with its wholly-owned subsidiary, Joint Steel Works Sdn Bhd ("JSW") for the transfer of 100% equity stake comprising 20,000,000 ordinary shares of RM1.00 each, in Guolene Plastic Products Sdn Bhd from JSW to GPIB for a total consideration of RM5,000,000. The transfer is pending for the approval from the Foreign Investment Committee.

9.

Corporate proposals

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 ("Restructuring of Bonds")

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 Restructuring of Bonds was completed on 22 March 2001.

(b)

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 still pending registration with the Land Office.

(c)

Proposed Transfer of Land From Hong Leong Equipment Sdn Bhd to Taman Terang Sdn Bhd ("Proposed Transfer")

On 9 February 2001, Hong Leong Equipment Sdn Bhd, a wholly owned subsidiary of the Company, entered into a Sale & Purchase Agreement to transfer one (1) parcel of land together with a building erected thereon, to Taman Terang Sdn Bhd, another wholly owned subsidiary of the Company, for a total cash consideration of RM12,800,000. The Proposed Transfer has been approved by the Foreign Investment Committee on 26 April 2001 and accordingly, the Proposed Transfer is completed.

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 March 2001.

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 period ended 31 March 2001 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 financial period ended 31 March 2001, 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 March 2001

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 March 2000 was 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 period are as follows:-

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’s borrowings

Particulars of  the Group’s borrowings as at 31 March 2001 are as follows :-

RM’000

(a)

Unsecured short term borrowings

872,793

(b)

Unsecured long term borrowings

1,145,240

2,018,033

The above Group’s borrowing include foreign currency as follows :-

RM’000

USD borrowings

766,146

DM borrowings

29,579

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

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

      1,120,378

      336,130

2,356,149

Motorcycles

         249,324

       (11,441)

314,773

Building Materials

         355,120

        19,556

569,439

Packaging

         142,620

        11,563

225,995

Investment holding & others

           91,336

       (58,994)

1,186,399

      1,958,778

      296,814

4,652,755

Share of losses of associated companies

           -

       (28,844)

-

       1,958,778

      267,970

4,652,755

17.

Quarterly Analysis

For the quarter under review, the Group recorded a profit before taxation and minority interest of RM42.3 million as compared to RM122.2 million for the preceding quarter.

18.

Review of Results

During the quarter under review, the Group  was affected by the severe downturn of the  electronic sector.

The Group recorded a turnover of RM566.9 million with an earnings per share of  2.3 sen for the quarter under review.

19.

Prospects

In the final quarter of this financial year, the semiconductor business will remain affected by the general weakness of the electronics sector while the other businesses are expected to perform satisfactorily.

20.

Profit forecast / profit guaranteed

There was neither profit forecast prepared or profit guaranteed by the Group.

21.

Dividend

The Board of Directors has declared a second interim dividend of 10% tax exempt and a further special interim dividend of 15% less tax for the financial year ending 30 June 2001  (1999/2000: nil) to be paid on 18 June 2001 to holders of ordinary shares whose names appear in the Record  of Depositors at the close of business on 28 May 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 28 May 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. 

With the declaration of the second interim dividend, the Board of Directors does not envisage a final dividend for the financial year ending 30 June 2001.