InnoTek Part 1 Information Required for Annc of Qtrly, Half Year and Full Year Results_101109

8/14/2019 InnoTek Part 1 Information Required for Annc of Qtrly, Half Year and Full Year Results_101109

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InnoTek Limited ( formerly known as Magnecomp International Limited )( Company Reg. No. 199508431Z )______________________________________________________________________________________________________

PART 1 - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY ( Q1 , Q2 & Q3 ), HALF-

YEAR and FULL YEAR RESULTS

1.(a) An income statement (for the Group ) together with a comparative statement for the corresponding period ofthe immediately preceding financial year

CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

For the Third Quarter ended 30 September 2009

2009 2008 2009 2008

S$'000 S$'000 % S$'000 S$'000 %

92,028 108,171 (14.9) 268,726 310,024 (13.3)

1(a)(i)(a) (72,429) (90,228) (19.7) (214,573) (253,743) (15.4)

19,599 17,943 9.2 54,153 56,281 (3.8)

(2,279) (2,677) (14.9) (6,491) (7,902) (17.9)

1(a)(i)(b) (14,497) (16,078) (9.8) (40,848) (44,614) (8.4)

(250) (507) (50.7) (1,052) (1,731) (39.2)

1(a)(i)(c) (1,457) 1,758 (182.9) (1,860) 353 (626.9)

(18,483) (17,504) 5.6 (50,251) (53,894) (6.8)

41 177 (76.8) 603 2,054 (70.6)

639 469 36.2 2,237 1,671 33.9

680 646 5.3 2,840 3,725 (23.8)

(5) (217) (97.7) 39 (392) NM

1,791 868 106.3 6,781 5,720 18.5

1(a)(i)(d) (220) (436) (49.5) (931) (1,631) (42.9)

1,571 432 263.7 5,850 4,089 43.1

(2,638) 3,875 NM (2,029) 5,229 NM

(2,638) 3,875 NM (2,029) 5,229 NM

(1,067) 4,307 NM 3,821 9,318 (59.0)

954 160 496.3 4,584 2,923 56.8

617 272 126.8 1,266 1,166 8.6

1,571 432 263.7 5,850 4,089 43.1

(1,571) 4,020 NM 2,656 8,131 (67.3)504 287 75.6 1,165 1,187 (1.9)

(1,067) 4,307 NM 3,821 9,318 (59.0)

Basic Para 6 0.41 0.07 485.7 1.96 1.25 56.8

Diluted Para 6 0.41 0.07 485.7 1.96 1.25 56.8

NM denotes Not Meaningful

30-Sep

Revenue

Group

Cost of sales

Gross Profit

Other items of expense

Profit before taxation and minority interest

30-Sep

Quarter Ended 9 months Ended

Note

YoY

Change

YoY

Change

Other items of income

Interest Income

Other Income

Total other items of Income

Selling and distribution

Profit, net of tax before minority interest

(Reclassified)(Reclassified)

Other expenses

Administrative expense

Finance cost

Total other item of expenses

Minority interests

Shareholders of the Company

Foreign currency translation

Share of (loss) / gain of unconsolidated associate

Tax expense

(Loss) / Profit attributable to :

Other comprehensive income / (expense) :

Other comprehensive (expense)/income , net of tax

Total comprehensive (loss) / income for the period

Total comprehensive (loss) / income attributable to :

Shareholders of the CompanyMinority interests

Earning per share ( cents)


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Notes to Group Profit and Loss Statement

1(a) (i ) Profit for the period is arrived at after (charging) / crediting the following items :

2009 2008 2009 2008

Note S$'000 S$'000 S$'000 S$'000

(a) Included in cost of sales is :

- Provision for obsolete inventories 130 15 (752) (545)

(b) Included in administrative expense is :

- Employee Share Option expense (73) (83) (129) (277)

(c) Details of other expenses

- Mark-to-market gain on investment securities (1) - - - 1,561

- Write-back of provision for warranties for sale of MPT (1) - 804 - 5,194

- Additional proceed from sale of MPT - - - 272

- Allowance for doubtful trade receivables (2) (371) (99) (502) (72)

Subtotal ( Provision ) / write-back (371) 705 (502) 6,955

- Foreign currency (loss) / gain (1,086) 980 (1,358) (6,675)

(1,457) 1,685 (1,860) 280

(d) Tax expense

9 months Ended

30-Sep

The effective tax rate for the period under review is lower than the corresponding period as taxes incurred by certain companies

in the Group are not available for offset against profits earned by other companies in the Group in the previous period.

Quarter Ended

30-Sep

Note

(1) This relates to balance of the 10% shareholding in Magnecomp Precision Technologies Public

Company Limited ( MPT ) disposed off on 15 January 2009 .

(2) Provision in Q309 for certain long outstanding tooling debtors with either dispute or collection issues.

1(a) (ii ) With the disposal of MPT in 2007, Mansfield Manufacturing Company Limited Group of Companies (MSF)

became the main business unit of the Company. In compliance with FRS 1 Presentation of Financial Statements,

the InnoTek Group profit and loss accounts have been reclassified with effect from 1 January 2009 to enable

financial reporting by function of expense, which more accurately reflect the nature of MSFs operations. Similarly,

prior year comparative numbers have been reclassified to conform with current years presentation.

The revised FRS 1 also requires all items of income and expenses (including those accountable for directly in

equity)to be presented in the Statement of Comprehensive Income for annual periods beginning on or after 1

January 2009.


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1(b) ( i ) . A balance sheet ( for the issuer and the Group ) , together with a comparative statement as at theend of the immediately preceding financial year

Balance Sheets (Unaudited)

As at As at As at As at

30-Sep-09 31-Dec-08 30-Sep-09 31-Dec-08

Note S$'000 S$'000 S$'000 S$'000

96,991 96,991 96,991 96,991

(7,028) (7,028) (7,028) (7,028)

3,480 3,351 3,480 3,351

104,057 111,144 39,864 53,032

491 2,419 - -

197,991 206,877 133,307 146,346

6,542 5,377 - -

204,533 212,254 133,307 146,346

110,681 122,896 92 -

4,482 4,633 - -

1,982 2,491 - -

2,246 2,079 - -

193 544 - -

139 141 - -

- - 47,061 47,061

293 257 - -

2,634 2,634 2,634 2,634

122,650 135,675 49,787 49,695

Current assets

Cash and cash equivalents A 98,600 93,058 70,321 59,279

Trade receivables B 80,053 87,094 260 584

Other receivables and deposits 11,082 13,561 209 84

Tax recoverable 587 42 - -

Investment securities A - 23,384 - 23,384

Prepayments 323 655 - -

Inventories C 32,512 36,765 - -

Loan to subsidiaries - - 15,125 16,615

223,157 254,559 85,915 99,946

Bank loans A 10,410 24,074 - -

Finance lease 77 70 - -

Trust receipts / bill payable 9,021 10,231 - -

Bank overdrafts 4,588 4,067 - -

Interest-bearing loans and borrowings 1(b)(ii) 24,096 38,442 - -

Trade payables B 51,592 76,800 - -

Other payables and accruals 38,690 31,434 330 997

Tax payable 2,709 2,121 1,871 2,104

117,087 148,797 2,201 3,101

106,070 105,762 83,714 96,845

Non-current Liabilities

Bank loans A 22,236 26,982 - -

Finance lease - 53 - -Interest-bearing loans and borrowings 1(b)(ii) 22,236 27,035 - -

Deferred tax liabilities 1,951 2,148 194 194

24,187 29,183 194 194

204,533 212,254 133,307 146,346

Company

Share Option reserve

Total Equity

Share Capital

Treasury shares

Group

Revenue reserves

Translation reserves

Intangible assets

Minority interests

Non-current Assets

Property, plant and equipment

Prepaid land lease payment

Deposit paid for purchases of property, plant and

equipment

Other receivables

Prepayments

Current liabilities

Net current Assets

Net Assets

Investment in subsidiaries

Investment in associate

Other investments


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Note to Group Balance Sheet

A Increase in cash was mainly due to proceeds from disposal of investment securities in January 2009. Theincrease in cash was mitigated by repayment of bank loans and dividend payment to ordinary shareholders of

the Company in May 2009.

B Lower sales in Q309 compared to Q408 resulted in lower trade receivables and payable as at 30

September 2009 compared to 31 December 2008.

C Lower sales and raw material price in Q309 resulted in lower inventory as at 30 September 2009

compared to 31 December 2008.

1b (ii) Aggregate amount of Group's borrowings and debt securities

As at As at

30-Sep-09 31-Dec-08

S$'000 S$'000

Amount repayable in one year or less, on demand

- Secured 77 70

- Unsecured 24,019 38,372

24,096 38,442

Amount repayable after one year

- Secured - 53

- Unsecured 22,236 26,982

22,236 27,035

Total 46,332 65,477

Details of any collaterals

The secured borrowings relate to finance leases which are secured on relevant equipment under the

finance lease. All other bank borrowings, bank overdraft and trust receipts are either unsecured or

secured by corporate guarantee by the Company and its subsidiaries.


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1(c) A cash flow statement ( for the Group ) , together with a comparative statement for the correspondingperiod of the immediately preceding financial year

CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

Note

2009

S$'000

2008

S$'000

2009

S$'000

2008

S$'000

(Reclassified) (Reclassified)

1,791 868 6,781 5,720

D 6,347 8,251 18,067 16,984

8,138 9,119 24,848 22,704

2,379 (17,099) (532) (16,881)

10,517 (7,980) 24,316 5,823

(1,505) (1,382)

10,073 (8,819) 22,811 4,441

(875) (4,584) (10,560) (19,207)

(106) 74 509 558

214 - 214 48

- - - (1,051)

- - - (2,967)

- (68) - (68)

(767) (4,578) (9,837) (22,687)

- (296) - (13,516)

- - - 343

633 21,322 (1,210) 10,975

(7,124) (20,184) (18,411) (28,669)

- - 23,384 -

(15) (37) (45) (257)

- - (11,671) (23,506)

(6,506) 805 (7,953) (54,630)

2,800 (12,592) 5,021 (72,876)

91,212 93,635 88,991 153,919

E 94,012 81,043 94,012 81,043

Profit before tax and minority interests ("MI")

30-Sep

Net increase/ (decrease) in cash and cash equivalent

30-Sep

Cash flows provided by operations before reinvesting in

working capitals

Working capital changes , excluding changes relating to cash

Cash generated from/(used in) operating activities

Net interest and income tax paid

Net cash from / (used in) operating activities

Quarter Ended 9 months Ended

Deposit (paid)/refund for property, plant and equipment

Purchase of property, plant and equipment

Cash flows from operating activities :

GROUP

Adjustments for non-cash items

Proceeds on sale of fixed assets

Acquisition of minority interests

Investment in associate

Net cash outflow from disposal of subsidiaries

Repayment of finance lease

Dividend paid to ordinary shareholder

Cash and cash equivalents as at end of period

Cash and cash equivalents as at beginning of period

Proceeds / (Repayment) from short and long term financing

Bank loan repayment

Proceed from investment securities

Purchase of treasury shares

Net cash used in investing activities

Net cash from financing activities

Proceeds from issuance of ordinary shares

Net cash from /(used in) investing activities :

Net cash (used in) / generated from financing activities


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NOTES TO THE CONSOLIDATED CASH FLOW STATEMENTS (UNAUDITED)

D Details of adjustments for non-cash items as follows :

GROUP

2009

S$'000

2008

S$'000

2009

S$'000

2008

S$'000

(Reclassified) (Reclassified)

5,887 5,132 16,345 13,911

77 - 78 -

73 79 129 246

371 138 502 (335)

251 508 1,052 1,731

(41) (177) (603) (2,054)

(130) (94) 752 286

(47) 311 185 317(99) 2,137 (334) 2,490

5 217 (39) 392

Total 6,347 8,251 18,067 16,984

Depreciation expense

Stock option expense

Allowance for doubtful debts

30-Sep

9 months EndedQuarter Ended

Share of results of associates

Currency realignment

30-Sep

Provision for obsolete inventories

Property, plant and equipment written ( back) / off

Amortisation expense

Interest income

Interest expense

E Cash and cash equivalents comprises :

2009 2008

S$'000 S$'000

29,520 84,601

69,080 -

98,600 84,601

(4,588) (3,558)

94,012 81,043

As at 30 Se ptember

GROUP

Cash and cash equivalents at end of period

Cash and bank balances

Other Fixed deposits

Less : Bank overdrafts

Cash and bank balances per Balance Sheet


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1(d)(i) A statement ( for the issuer and the Group ) showing either (i) all changes in equity or (ii) changes arising from capitalization issues and distributions to shareholders , together with a comparative stateperiod of the immediately preceding financial year

Statement of changes in equity

Share

Capital

Treasury

Shares

Share

Option

Reserve

Retained

Earnings

Foreign

Currency

Translation

Reserve Others

Tota

Othe

Reser

S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'00

2009

96,991 (7,028) 3,351 111,144 2,419 - 116,9

- - - 3,630 597 - 4,2

- - 56 - - -

- - - (11,671) - - (11,6

96,991 (7,028) 3,407 103,103 3,016 - 109,5

- - - 954 (2,525) - (1,5

- - 73 - - -

96,991 (7,028) 3,480 104,057 491 - 108,0

Total comprehensive income for Q3'09

Balance at 30 September 2009

Share Option expense accrued

GROUP

Attributable to shareholders of the Company

Balance at 1 January 2009

Total comprehensive income for 1H'09

Dividends on ordinary shares

Balance at 30 June 2009

Share Option expense accrued


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1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, sharebuy-back , exercise of share options or warrants , conversion of other issues of equity securities , issueof share for cash or as consideration for acquisition or for any purpose since the end of the previousperiod reported on. State also the number of shares that may be issued on conversion of all theoutstanding convertibles , as well as the number of shares held as treasury shares, if any, against the totalnumber of issued shares excluding treasury shares of the issuer, as at the end of the current financialperiod reported on and as at the end of the corresponding period of the immediately precedingfinancial year

(a) Share Capital

Number of ordinary shares as at 30 September 2009 are 243,468,428

As at

30/9/09

As at

31/12/08

Options granted under the InnoTek Employees' Share Option Plan 1 4,119,000 4,939,000

Opt ions granted under the InnoTek Employees' Share Option Scheme I I ** 3,308,000 -

7,427,000 4,939,000

**

Number of shares that may be issued on conversion of all outstanding options are as follows:-

On 10 March 2009 , 3,840,000 options were granted to the Group's and the Company's empolyees under the

"InnoTek Employee's Share Option Scheme II " plan which was approved by shareholders at the Extraordinary

General Meeting held on 30 April 2008. The option price for the grant was $0.19 which was based on the average

price of the last dealt prices of shares traded over five consecutive market days immediately prior to the date ofgrant of options

(b) Treasury Shares

No new Treasury shares were acquired in Q3'09. There were 10,061,000 Treasury Shares as at 30 September 2009.

1(d)(iii) To show the total number of issued shares excluding Treasury Shares as at the end of the current

financial period and as at the end of the immediately preceding year.

No ofshares

'000 $'000

No ofshares

'000 $'000

Total number of issued shares at the end of period 243,468 96,991 243,468 96,991

(10,061) (7,028) (10,061) (7,028)

Net number of issued shares at the end of period 233,407 89,963 233,407 89,963

As at 31/12/08

Number of Treasury Shares at the end of period

As at 30/09/09

1(d)(iv) A statement showing all sales , transfer , disposal , cancellation and/or use of Treasury Shares as at the end ofthe current financial period reported on.

None

2. Whether the figures have been audited , or reviewed and in accordance with the standard (e.g. The SingaporeStandard on Auditing 910 ( Engagement to Review Financial Statements ) , or an equivalent standard )

The figures have not been audited or reviewed by auditors.

3. Whether the figures have been audited , or reviewed , the auditor's report ( including any qualifications oremphasis of matter)

Not Applicable


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4. Whether the same accounting policies and methods of computation as in the issuers most recentlyaudited annual financial statements have been applied

The same accounting policies and method of computation have been applied to the financial statements as in themost recently audited annual financial statements

Please refer to 1(a)(ii) for reclassification of the Consolidated Income Statements to function of expenses and theinclusion of the Statement of Comprehensive Income under the revised FRS 1 effective for annual periods beginningon or after 1 January 2009.

5. Whether there are any changes in the accounting policies and method of computation , including anyrequiredby an accounting standard, what has changed, as well as the reasons for, and the effect of, thechange

None

6. Earnings per ordinary share of the group for the current period reported on and the correspondingperiod of the immediately preceding financial year , after deducting any provision for preference dividends.

2009 2008 2009 2008

S'000 S'000 S'000 S'000

(i)

- Earning per share 0.41 0.07 1.96 1.25

Weighted average number of shares ( '000) 233,407 234,253 233,407 234,149

(ii)

- Earning per share 0.41 0.07 1.96 1.25

Weighted average number of shares ( '000) 235,090 234,257 234,245 234,183

Earnings per ordinary share of the Group based on net profit

attributable to the shareholders of the Company :

Quarter Ended

30 September

On a fully diluted basis ( in cents )

9 Months Ended

30 September

Based on the weighted average number of shares ( in cents )

7. Net asset value (for the issuer and Group) per ordinary share based on the total number of issued sharesexcluding treasury shares of the issuer at the end of the (a) current period reported on; and (b) immediatelypreceding financial year

As at As at As at As at

30/9/2009 31/12/2008 30/9/2009 31/12/2008

84.8 cents 88.6 cents 57.1 cents 62.7 cents

Group Company

Net asset backing per ordinary share based on the total

number of issued share excluding treasury shares as at

the end of the period reported on

Reduction of Net assets per share for both Group and Company was due to payment of S$11.7 million dividend of 5 centsper share in May 2009.


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8. A review of the performance of the group, to the extent necessary for a reasonable understanding of thegroup business. The review must discuss any significant factors that affected the turnover costs, andearnings of the group for the current financial period reported on, including ( where applicable ) seasonalor cyclical factors. It must also discuss any material factors that affected the cash flow, working capital,assets or liabilities of the group during the current financial period reported on

(A) Quarter ended 30 September 2009 (Q309)

Turnover

92,028 108,171 (16,143) (14.9)

Net Profit 954 160 794 496.3

2,314 (1,148) 3,462 NM

(1,360) 1,308 * (2,668) NM

Basic EPS (cents) 0.41 0.07 * 0.34 485.7

NM denotes not meaningful

Corporate

MSF

MSF

Q309

S$'000

* Inlcude reversal of provision for warranties amounting to S$0.8 million, equivalent to 0.34 cents per share.

Changes

%

Q308

S$'000

Changes

S$'000

For the July-September 2009 quarter (Q309), Groups turnover was S$92.0 million, lower by S$16.1 million or 14.9%

compared to S$108.1 million in Q308. This was due to lower sales recorded by its core subsidiary Mansfield

Manufacturing Company Limited (MSF) as a result of lower global demand for printing equipment arising from the

impact of global credit crunch and economic slowdown.

Despite lower turnover, Groups profit increased S$0.8 million to S$1.0 million from S$0.2 million in Q308. The higher

profit was mainly attributed to the S$2.3 million profit contribution from MSF, which was offset by a loss of S$1.4 million

recorded by the Company.

MSF profit was S$2.3 million, an increase of S$3.5 million from a loss of S$1.2 million in Q308 despite a drop in revenue

of S$16.1 million in Q309 compared to Q308, due primarily to two reasons. First, the ongoing efforts to improve

efficiencies and cost management have paid off in the quarter under review. Second, reduced sales of lower-margin TV

parts with higher-cost materials resulted in improved Q309 profit margin as compared to Q308. However, the lower

sales of such TV parts were mitigated by an increase in sales of higher-margin automotive and medical-related products

which contributed to an increase in profit margin of MSF in Q309.

Segmentally, turnover from Components and Assembly business reduced by S$13.0 million to S$83.4 million in Q309

from S$96.4 million in Q308 due mainly to lower demand for LCD TVs and related products. The Frame business

turnover also reduced S$3.1 million to S$8.6 million in Q309 from S$11.7 million in Q308 mainly due to lower demand

for printing equipment.

The Company recorded a loss of S$1.4 million compared to a profit of S$1.3 million mainly due to foreign exchange loss

of S$1.1 million in Q309 as compared to a foreign exchange gain of S$1.1 in Q308. The foreign exchange loss were

mainly unrealized foreign exchange loss on cash and bank balance due to the weakening of the US$.


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(B) Nine months ended 30 September 2009 (9M09)

Turnover

268,726 310,024 (41,298) (13.3)

Net Profit 4,584 2,923 1,661 56.8

6,097 2,436 3,661 150.3

(1,513) 487 * (2,000) NM

Basic EPS (cents) 1.96 1.25 * 0.71 56.8

* Include mark-to-market gain and reversal of provision for warranties, total amount S$6.7 million equivalent to 2.89 cents per share

NM denotes not meaningful

MSF

MSF

Changes

%

9M08

S$'000

Changes

S$'000

9M09

S$'000

Corporate

For the nine months ended 30 September 2009 (9M09), Groups turnover declined S$41.3 million or 13.0% to S$268.7

million from S$310.0 million recorded for 9M08, mainly due to lower stamping and assembly sales recorded by core

subsidiary Mansfield Manufacturing Company Limited (MSF) as a result of lower global demand for flat panel TVs.

The Groups profit increased S$1.7 million to S$4.6 million in 9M09 from S$2.9 million in 9M08. The profit was mainly

attributed to the profit of S$6.1 million achieved by MSF, which was offset by a loss of S$1.5 million recorded by theCompany.

Despite the lower turnover, MSFs profit increased S$3.7 million to S$6.1 million in 9M09 from S$2.4 million in 9M08

mainly due to lower material price, better cost management and operational efficiency improvements efforts embarked by

MSF Group of companies. Additionally, increase in sale of higher-margin automotives and medical related products

further improve MSF profit margin for 9M09 as compared to 9M08.

Segmentally, revenue reduced across all four businesses segments. The reduction came mainly from the Components

and Assembly and Tooling business, sales of which declined by S$37.3 million to S$240.3 million in 9M09 from S$277.6

million in 9M08 due mainly to lower demand for LCD TVs and related products. The Frame business turnover reduced

due mainly to lower demand for printing equipment.

The Company recorded a loss of S$1.5 million in 9M09 compared to a profit of S$0.5 million in 9M08 mainly due to

foreign exchange loss .

9. A forecast , or projected statement , has been previously disclosed to shareholders , any variance betweenit and the actual results

None

10. A commentary at the date of the announcement of the competitive conditions of the industry inwhich the group operates and any known factors or events that may affect the group in thenext reporting period and the next 12 months

While there have been signs of stabilization of global economy, the business outlook remains uncertain. The Groupcontinues to pursue rigorous efforts to improve internal efficiencies. The Directors expect that in the absence of any

further deterioration of business conditions and major weakening of the US$, the Group will record a profit for Q409 and

FY2009.

With regard to the Groups long-term growth strategy, the Company will continue to proactively explore appropriate

merger and acquisitions opportunities. The Group will continue to maintain its cautious stance, focusing on earnings-

accretive businesses, and stringently evaluate feasible investment proposals.


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11. Dividend

(a) Current Financial period Reported On

Any dividend declared for the present financial period ? No

(b) Corresponding period of the Immediate Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year ? No

(c) Date payableNot Applicable

(d) Books closing date

Not Applicable

12. If no dividend has been declared / recommended , a statement to that effect

Not Applicable

13. Interested Person Transactions Rule 920(1)(a)(i) An issuer must announce the aggregate value oftransactions conducted pursuant to the general mandate for interested person transactions for thefinancial period which it is required to report on pursuant to Rule 705.

Not Applicable

14. STATEMENT PURSUANT TO SGX LISTING RULE 705(4) OF THE LISTING MANUAL

The directors confirmed that to the best of their knowledge , nothing has come to the attention of the Board ofDirectors of the Company which may render the third quarter financial results of the company and of the Groupfor the period ended 30 September 2009 to be materially false or misleading in any material aspect.

Signed by Robert Sebastiaan Lette , Chairman and Yong Kok Hoon, CFO

BY ORDER OF THE BOARD

Yong Kok HoonDirector10 November 2009

Documents

InnoTek Part 1 Information Required for Annc of Qtrly, Half Year and Full Year Results_101109