MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Condensed Consolidated Income Statements
In RM’000
Note
Individual Quarter
3 months ended
31.12.2005
31.12.2004
(unaudited)
Cumulative Quarter
12 months ended
31.12.2005
31.12.2004
(unaudited)
Revenue
143,517
59,591
319,539
188,301
Expenses
(120,945)
(81,250)
(280,747)
(185,344)
7,528
30,964
27,904
71,585
30,100
9,305
66,696
74,542
(14,309)
(17,714)
(57,079)
(65,697)
3,586
1,557
17,260
13,493
19,377
(6,852)
26,877
22,338
(2,788)
22,436
(8,279)
15,933
16,589
15,584
18,598
38,271
1,130
3,208
(1,818)
(4,662)
17,719
18,792
16,780
33,609
Other operating income
13
Profit from operations
Finance cost
Share of results of jointly
controlled entities and associates
Profit/(loss) before taxation
Taxation
Profit after taxation
Minority interests
Net profit attributable
to shareholders
14
Earning per share (sen)
-
Basic
2.30
2.45
2.18
4.38
-
Diluted
n.a.
n.a.
n.a.
n.a.
The condensed consolidated income statements should be read in conjunction with the Annual Financial
Statements for the year ended 31 December 2004
Page 1 of 10
MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Condensed Consolidated Balance Sheets
In RM’000
Property, plant and equipment
Investment properties
Land held for property development
Associates
Jointly controlled entities
Other investments
Goodwill on consolidation
Deferred tax assets
Current Assets
Inventories
Properties development cost
Trade and other receivables
Marketable securities
Bank balances and deposits
Current Liabilities
Trade and payables
Other payables
Short term borrowings
Bonds
Taxation
Net Current Assets
Capital and Reserves
Share capital
Reserves
Shareholders’ equity
Minority interests
Non Current Liabilities
Bonds
Long Term borrowings
Other long term liabilities
Deferred tax liabilities
Net tangible assets per share (sen)
As at
31.12.2005
(unaudited)
As at
31.12.2004
(audited)
22,869
172,911
878,844
274,975
5,364
8,172
10,000
3,877
20,624
176,912
823,962
266,592
5,299
9,405
10,000
3,193
1,377,012
1,315,987
24,236
168,890
184,121
26,482
251,707
32,155
164,217
160,586
86,468
151,320
655,436
594,746
164,238
96,590
104,127
80,000
805
108,201
118,261
235,018
89
445,760
461,569
209,676
133,177
1,586,688
1,449,164
768,186
(285,176)
768,186
(301,077)
483,010
467,109
81,904
82,881
714,684
293,703
10,344
3,043
793,672
95,555
7,786
2,161
1,586,688
1,449,164
61.6
59.5
The condensed consolidated balance sheets should be read in conjunction with the Annual Financial Statements
for the year ended 31 December 2004.
Page 2 of 10
MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Condensed Consolidated Cash Flow Statements
In RM’000
Operating activities
Cash receipts from customers
Cash paid to suppliers and employees
12 months ended
31.12.2005
31.12.2004
(unaudited)
344,619
(277,368)
390,296
(193,340)
Cash from operations
Interest and other bank charges paid
Taxes refund
67,251
(98,452)
9,692
196,956
(116,041)
16,233
Net cash (used)/generated in operating activities
(21,509)
97,148
Investing activities
Equity investments
Non-equity investments
(3,808)
60,402
23,379
4,214
Net cash from investing activities
56,594
27,593
Financing activities
Borrowings (net)
Placement of restricted cash
65,113
(95,657)
(118,174)
(5,871)
Net cash used in financing activities
(30,544)
(124,045)
Net increased in cash and cash equivalent
Cash and cash equivalents at beginning of the financial year
4,541
73,378
696
72,682
Cash and cash equivalent at end of year
77,919
73,378
For the purpose of the cash flow statements, the cash and cash equivalents comprised the following:
Bank balances and deposits
Bank overdraft
Less: Bank balances and deposits held as security value
251,707
(822)
151,320
(633)
250,885
(172,966)
150,687
(77,309)
77,919
73,378
The condensed consolidated cash flow statement should be read in conjunction with the Annual Financial
Statements for the year ended 31 December 2004.
Page 3 of 10
MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Condensed Consolidated Statement of Changes in
Equity
Share
__Capital
Reserve on
consolidation
768,186
79,332
(380,409)
Deferred tax liability on
pre-acquisition revaluation surplus
-
-
(879)
Net profit for the financial year
-
-
At 31 December 2005
(unaudited)
768,186
At 1 January 2004
In RM’000
At 1 January 2005
Accumulated
losses
Total
467,109
(879)
16,780
16,780
79,332
(364,508)
483,010
768,171
79,332
(430,569)
416,934
───────
768,171
───────
79,332
18,701
───────
(411,868)
18,701
───────
435,635
15
-
Deferred tax liability on
pre-acquisition revaluation surplus
-
-
(2,150)
(2,150)
Net profit for the financial year
-
-
33,609
33,609
768,186
79,332
(380,409)
467,109
Prior year adjustments
As restated
Issuance of share capital
At 31 December 2004
(audited)
-
15
The condensed consolidated statement of changes in equity should be read in conjunction with the Annual Financial
Statements for the year ended 31 December 2004.
Page 4 of 10
MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Notes to the Interim Report
1.
Basis of preparation
The financial report has been prepared in accordance with FRS134, Interim Financial
Reporting and Chapter 9 part K of the Listing Requirements of Bursa Malaysia Berhad, and
should be read in conjunction with the Group’s financial statements for the financial year
ended 31 December 2004.
The accounting policies and methods of computation adopted for the financial report are
consistent with those adopted for the annual financial statements for the financial year ended
31 December 2004.
2.
Audit report of the preceding annual financial statements
The audit report of the Group’s preceding annual financial statements was not subject to any
qualification.
3.
Seasonality or cyclicality of operations
The businesses of the Group were not materially affected by any seasonal or cyclical
fluctuations during the current financial year.
4.
Items of unusual nature, size or incidence
There were no other items of unusual nature, size or incidence affecting the assets, liabilities,
equity, net income or cash flows.
5.
Material changes in estimates of amounts reported
There were no changes in estimates of amounts reported in prior financial year that would
have a material effect in the current financial year.
6.
Debt and equity securities
There were no issuances, cancellations, repurchases, resale and repayments of debt and
equity securities for the current financial year.
7.
Dividends
There were no dividends paid during the current financial year.
Page 5 of 10
MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Notes to the Interim Report
8.
Segmental reporting
In RM’000
12 months ended
31.12.2005
Profit/(Loss)
from
Revenue operations
12 months ended
31.12.2004
Profit/(Loss)
from
Revenue operations
Malaysia
Engineering and construction
Property development
Infrastructure
Building services
Investment holding and others
Segment totals
Inter-segment elimination
9.
171,554
250,673
12,680
12,302
1,633
6,305
75,776
356
1,952
(4,923)
59,646
140,928
10,286
9,895
14,965
(1,637)
42,762
(54)
417
39,206
448,842
(129,303)
79,466
(12,770)
235,720
(47,419)
80,694
(6,152)
319,539
66,696
188,301
74,542
Valuations of property, plant and equipment
The valuations of property, plant and equipment have been brought forward without any
material amendments from the previous financial statements.
10.
Material events subsequent to the financial year
There are no material subsequent events to be disclosed other than as mentioned in note 17.
11.
Changes in the composition of the Group
The Company had on 17th January 2005 entered into three (3) separate share sale agreements
with other shareholders of Sibexlink Sdn. Bhd. (Sibexlink) namely Malaysia South-South
Corporation Berhad, Telekom Malaysia Berhad and South Investment, Trade and
Technology Data Exchange Centre for the acquisition of 1,000,000, 1,450,000 and 1,000,000
ordinary shares of RM1.00 each respectively. The purchase consideration for each
acquisition is RM1.00. The acquisitions were completed on 27th July 2005 and as a result,
Sibexlink is now a wholly owned subsidiary of the Company.
Other than the abovementioned, there were no other changes in the composition of the Group
during the current financial year.
12.
Contingent liabilities or contingent assets
The Group’s contingent liabilities, which comprised trade and performance guarantees,
amounted to RM61.4 million as at 31 December 2005 (as compared to RM59.9 million as at
31 December 2004). There are no material contingent assets to be disclosed.
Page 6 of 10
MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Notes to the Interim Report
13.
Other operating income
Included in other operating income for the current interim period are the following material
exceptional gains: -
12 months ended
31.12.2005
RM’000
Reversal of provisional cost on property
development that was no longer required
Forfeiture of down payment deposit
Gain on disposal of marketable securities
14.
4,291
2,750
1,059
8,100
Taxation
Individual Quarter
3 months ended
31.12.2005 31.12.2004
In RM’000
Cumulative Quarter
12 months ended
31.12.2005 31.12.2004
In Malaysia
Taxation
- current year
- (over)/under provision in
prior years
Deferred taxation
Share of taxation of associates
15.
(1,728)
3,578
(1,501)
(22,513)
(1,824)
4,402
(749)
(23,508)
(682)
1,620
(1,074)
2,652
(682)
6,383
1,986
6,338
2,788
(22,436)
8,279
(15,933)
Profit/(Loss) on sale of unquoted investments and/or properties
There were no profit or loss on sale of unquoted investments and/or properties outside the
ordinary course of business of the Group for the financial year under review.
16.
Purchases and disposals of quoted securities
a) Total purchases and disposal of quoted securities are as follows: 3 months ended
31.12.2005
31.12.2004
RM’000
RM’000
Purchase
Disposal
Gain on disposal
-
12 months ended
31.12.2005 31.12.2004
RM’000
RM’000
-
54,000
1,059
-
Page 7 of 10
MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Notes to the Interim Report
16.
Purchases and disposals of quoted securities (continued)
b) Investment in quoted securities (including quoted shares of an associate) are as follows: -
As at
31.12.2005
RM’000
At cost
At carrying value
At market value
17.
158,551
293,613
214,414
As at
31.12.2004
RM’000
218,537
350,739
233,461
Corporate Proposals
The proposed disposal of office block, Menara MRCB for a cash consideration of
RM55.0 million to Idaman Unggul Bhd. has been terminated with the 5% deposit
duly forfeited.
There were no other corporate proposals announced but not completed during the
current financial year under review.
18.
Group borrowings
The tenure of the Group borrowings classified as short and long term is as follows: -
As at
31.12.2005
RM’000
Short term - secured
Short term - unsecured
Long term - secured
176,133
7,994
1,008,387
As at
31.12.2004
RM’000
235,018
889,227
The Group borrowings are all denominated in Ringgit Malaysia.
Page 8 of 10
MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Notes to the Interim Report
19.
Off balance sheet financial instruments
The Group did not enter into any contract involving financial instruments with off balance
sheet risk.
20.
Changes in material litigation
The Group is engaged in various litigations arising from its businesses, the claims thereon
amounting to approximately RM59.9 million. The Board of Directors has been advised on
those claims for which reasonable defences exist and claims that are pending amicable
settlement. On this basis, the Board of Directors is of the opinion that the said litigations
would not have a material effect on the financial position or the business of the Group.
21.
Comparison with preceding corresponding quarter’s results
The Group recorded a profit before taxation of RM19.4 million for the 4th quarter ended 31
December 2005 as compared to a loss of RM6.9 million recorded in the preceding
corresponding 4th quarter ended 31st December 2004. The higher profit in the current
quarter was due to substantial increase in revenue of RM83.9 million which is more than 100
% higher compared to preceding corresponding quarter. The increase in revenue is mainly
contributed from the realization of sales at Kuala Lumpur Sentral and engineering and
construction activities of property development and infrastructure works.
22.
Review of performance
The Group recorded revenue of RM319.5 million for the current financial year ended 31
December 2005 as compared to RM188.3 million recorded in the preceding financial year
ended 31 December 2004. The higher revenue in the current financial year was due to higher
contributions from the engineering and construction and property development sectors. The
property development sector is mainly driven by the on-going development at Kuala Lumpur
Sentral.
Accordingly, for the current financial year ended 31 December 2005, the Group recorded a
higher profit before taxation of RM26.9 million compared to RM22.3 million recorded in the
preceding financial year ended 31 December 2004. The net profit attributable to shareholders
recorded in the current financial year of RM16.8 million was lower than the RM33.6 million
achieved in the preceding financial year mainly due to the RM23 million adjustment of over
provision of taxation in prior years recorded in the preceding financial year.
23.
Prospects
We expect property development especially with the promising outlook for sales at Kuala
Lumpur Sentral and the engineering and construction businesses to continue to be the main
drivers of the Group’s performance for the financial year 2006.
Accordingly, barring any unforeseen circumstances, the Board is optimistic that the Group’s
performance for the forthcoming financial year ending 31 December 2006 will continue to
show improvement and growth in both revenue and profitability.
Page 9 of 10
MALAYSIAN RESOURCES CORPORATION BERHAD
(Incorporated in Malaysia - Company No.7994-D)
INTERIM REPORT FOR THE FINANCIAL ENDED 31 DECEMBER 2005
Notes to the Interim Report
24.
Variance on forecast profit/profit guarantee
Not applicable.
25.
Earning per share
Basic
The basic earning per share were computed as follows:
Individual Quarter
Cumulative Quarter
3 months ended
12 months ended
31.12.2005 31.12.2004 31.12.2005 31.12.2004
Net profit for the year (RM’000)
Weighted average number of ordinary
shares in issue (‘000)
Basic earnings per share (sen)
17,719
18,792
16,780
33,609
768,186
768,186
768,186
768,183
2.30
2.45
2.18
4.38
Diluted
The Group has no dilution in its earnings per share, as the fair value of the issued ordinary
shares for the financial period is lower than the exercise price of the outstanding employees’
share options. Therefore, no consideration for adjustment in the form of increase in the
number of shares was used in calculating the potential dilution of the earnings per share.
26.
Net tangible assets per share
The net tangible assets per share as at 31 December 2005 is calculated based on the Group’s
net tangible assets of RM472,781,063 after deducting the Group’s intangible assets of
RM10,075,197 and adjusting for the premium on acquisition of an associate of RM153,470
over the number of issued ordinary shares of 768,185,868 shares.
By Order of the Board
Mohd Noor Rahim Yahaya
Company Secretary
Shah Alam
24 February 2006
Page 10 of 10