Financials

Quarterly Report For The Financial Period Ended 30 September 2011

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(a) 3 months quarter 2011 vs. 3 months quarter 2010

The Group's total revenue increased 28% compared to the corresponding quarter of preceding year. The increase was mainly due to increase of industrial machinery sales.

The Group achieved profits before taxation of RM1.5 million in 2011, comparing to loss before taxation of RM1.2 million in 2010. The profit attained was mainly attributed to recognition of approximately RM2 million unrealized foreign exchange gain due to weaker Ringgit against US Dollar and other major currencies. In the corresponding 2010 quarter, the Group suffered contradicting RM1.5 million unrealized loss on foreign exchange. The oil palm seedlings segment suffered RM1.0 million losses in the current quarter compares to corresponding 2010 quarter principally due to major upgrading expenditures incurred in the seeds garden.

(b) 9 months quarter 2011 vs. 9 months quarter 2010

The Group's revenue increased 43% principally attributed to the 38% and 7% increase in the sales of industrial machine and oil palm seedlings, respectively.

The Group attained RM2.7 million profit before tax contradicting to RM1.4 million loss in 2010. The profit was resulted from increase in revenue and recognition of foreign exchange gain.

Despite the recent economic crisis in a few European countries and political instability in Middle East which had drastically affected the global economy recovery, the demand for industrial processing machinery and production lines manufactured by the Group is still looking positive as the prices of agricultural commodities such as rubber, cocoa and palm oil are up-surging which have propelled the key players in these industries throughout the world to invest more on their new or replacement of their existing industrial processing plant and machinery. This continued expansion in demand both locally and overseas especially for African and ASEAN countries will auger well for the Group's businesses in the short run.

The proliferation of bio-fuel projects in developed and developing countries is expecting to indirectly boost the demand for oil palm seedlings. The Group will be expecting further positive growth in revenue and profits from its Indonesian subsidiary.