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Quarterly Report For The Financial Period Ended 28 February 2014

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Unaudited Condensed Consolidated Statement Of Comprehensive Income
For Financial Year Ended 28 February 2014

Unaudited Condensed Statement Of Financial Position
As At 28 February 2014

Review of Group's performance

Overall review for the period financial quarter ended 28 February 2014

For the nine months ended 28 February 2014, the Group posted revenue of RM1.42 billion compared with RM1.51 billion in the corresponding period last year. Despite lower revenue, the Group posted a profit before taxation ("PBT") of RM37.6 million compared with loss before taxation of RM1.2 million in the corresponding period last year.

For the financial quarter ended 28 February 2014, the Group posted revenue of RM397.5 million compared with RM476.6 million in the corresponding quarter last year. The Group recorded a PBT of RM18.3 million in the current financial quarter compared with RM2.0 million in the corresponding quarter last year.

The improved PBT in the current financial quarter and year-to-date is primarily attributed to the one-off gain of RM20.6 million arising from the disposal of a subsidiary, Sinsenmoh Transportation Pte Ltd ("SSM") in December 2013.

The effective rate of taxation for the Group is higher than the statutory tax rate mainly due to losses in certain subsidiaries that are not available for set-off against taxable profits in other companies within the Group.

Review of business segments for the financial quarter ended 28 February 2014

Investment Holding

The investment holding segment reported a segmental profit for the quarter of RM8.7 million compared to a segmental loss of RM8.5 million in the corresponding quarter last year. The segmental profit in the current financial quarter is primarily due to the gain from the disposal of SSM.

Agricultural and Industrial Chemicals

The division posted revenue of RM333.6 million for the current financial quarter compared with RM404.3 million recorded in the corresponding quarter last year. The lower revenue growth was mainly attributed to the slower industrial chemical business in Malaysia and Singapore. However, segmental profit improved to RM12.4 million from RM10.9 million a year ago with better profit margins from production efficiencies.

Polymer

The Polymer division achieved lower revenue of RM26.0 million for the current financial quarter, which represents a decrease of 18.4% from RM31.8 million in the corresponding quarter last year. Consequently, the Division registered lower segmental profit of RM1.3 million compared with RM4.8 million achieved in the same period last year. While local Polymer sales remain weak, sales by our Indonesian factory were only marginally lower. The continued weakness of the Indonesian Rupiah and the increase in raw material prices has eroded our margins.

Logistics

During the financial quarter ended 28 February 2014, revenue from the Logistics segment decreased to RM7.4 million compared with RM14.0 million in the corresponding quarter last year. Segmental profit decreased accordingly to RM0.6 million compared with RM0.9 million a year ago. With the completion of SSM disposal, the results of SSM are no longer accounted for in the current financial quarter.

Information Technology

The division posted revenue of RM6.1 million compared with RM9.0 million in the corresponding quarter last year. The division posted a segmental loss of RM0.7 million compared with a segmental profit of RM0.6 million last year. The continued pressure on profit margins from the competitive biddings in the local IT industry remained the key problem faced by the division. Further, the division is incurring start-up costs relating to the establishment of a new IT related business.

Media

The revenue of the Media division increased to RM25.7 million compared with RM18.4 million in the corresponding financial quarter last year. The division posted segmental loss of RM2.7 million in the current financial quarter compared with RM3.4 million a year ago. The Media Division revenue has improved with its aggressive marketing efforts. Included in the results for the current financial quarter are impairments provided for certain assets in the division.

Prospects

Among the key business segments, Agricultural and Industrial Chemical Division should perform satisfactorily but there is pressure on profit margins as product suppliers and logistic providers seek higher prices. The Polymer Division is expected to be satisfactory despite stiff competitions from cheaper imports. After undergoing structural and operational reorganisation in the past, Media division is now in a better position for future growth.

There remained uncertainties in the global economic conditions, which may have an impact to the Group's business. The Board will continue to exercise caution in managing the Group's business in the coming financial year. The Board will continue to explore ways to improve revenue growth while strengthening its operational and productivity efficiencies.

The Board is of the view that, barring unforeseen circumstances, the financial performance and prospects of the Group will be satisfactory in the remaining of the financial year.