CONSOLIDATED RESULTS FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2000
Reference No CC-010320-64566
Reply to Query Letter by KLSE reference ID: KH-010316-53283
We refer to your letter (your ref: KH-010316-53283) dated March 19, 2001 on the above matter.
As noted by the Exchange, the Group profit after taxation for the year ended December 31, 2000 (unaudited) amounts to RM 18,386,000 which is higher (approximately 20%) as compare to the Company’s Prospectus dated May 26, 2000 which has forecasted a consolidated profit after taxation of RM 15,350,000 for the abovementioned financial year.
As per your request, we are pleased to furnish the following information explaining the above difference:
a) The difference is largely due to higher sales volume to main customer by the subsidiary company, Pan-International Electronics (Malaysia) Sdn Bhd (“PIE”). There was a continued growth in the demand from customers for the new high quality and value added product of PIE which, fetched a higher selling price and further increased in sales volume accordingly. As the new product was produced by means of automated machines and did not require much direct labour, PIE was able to reach an economic of scale where the factory overhead increased less than the increased in sales value.
b) From the view of taxation, PIE experienced lower effective tax rate (ie 24%) than statutory tax rate (ie 28%) due to claims of tax incentives, reinvestment allowance from the capital expenditure invested. As such, the actual profit margin also reflected a higher margin than forecasted results which has used the statutory tax rate of 28%.
Please be informed accordingly.
Query Letter content :
We refer to your Company’s announcement in respect of the abovecaptioned
We note that the group’s profit after taxation for the year ended 31 December
2000 amounts to RM18,386,000.
However, on page 43 of your Company’s Prospectus dated 26 May 2000, a
consolidated profit after taxation of RM15,350,000 was forecasted for the
abovementioned financial year.
In accordance with the Exchange’s Listing Requirements, kindly furnish the
Exchange immediately with your detailed explanation on the above difference for
TAN YEW ENG