K I M H I N I N D U S T R Y B E R H A D
( 0 1 8 2 0 3 - V )

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
Interim Financial Report for the Three-Month Period ended 31 March 2012
Index
Condensed Consolidated Statement of Comprehensive Income
Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Changes in Equity
Condensed Consolidated Statement of Cash Flows
Part A – Explanatory Notes Pursuant to MFRS 134
Part B – Explanatory Notes Pursuant to Appendix 9B of the Listing
Requirements of Bursa Malaysia Securities Berhad
Page
1 - 2
3 - 4
5
6 - 7
8 - 18
19 - 21

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
Interim report for the three-month period ended 31 March 2012
Condensed Consolidated Statement of Comprehensive Income
Individual Quarter
3 months ended
Cumulative Quarter
3 months ended
31.03.2012 31.03.2011 31.03.2012 31.03.2011
Note RM’000 RM’000 RM’000 RM’000
Revenue
Cost of sales
Gross profit
Other income
Selling and distribution expenses
Administrative expenses
Other expenses
58,733
(46,753)
––––––
11,980
3,927
(4,228)
(10,088)
57,932
(45,235)
––––––
12,697
2,426
(3,954)
(10,064)
58,733 57,932
(46,753) (45,235)
––––––
11,980
3,927
––––––
12,697
2,426
(4,228) (3,954)
(10,088) (10,064)
(347)
––––––
(346)
––––––
1,244 759
(347)
––––––
(346)
––––––
1,244 759 Operating profit
Finance costs
Share of loss of associate
Profit before tax
Income tax expense
11
Profit for the period
Other comprehensive income:
Exchange translation differences
on foreign subsidiaries
Total other comprehensive income
for the period, net of tax
12
(4)
(4)
––––––
(375)
––––––
861
––––––
(1,485)
––––––
(1,485)
––––––
(12)
(4)
––––––
1,236 743
(373)
––––––
370
––––––
1,268
––––––
1,268
––––––
(4)
(4)
––––––
(12)
1,236 743
(375)
––––––
861
––––––
(1,485)
––––––
(1,485)
––––––
(4)
––––––
(373)
––––––
370
––––––
1,268
––––––
1,268
––––––
Total comprehensive income
for the period, net of tax (624)
=====
1,638
=====
(624)
=====
1,638
=====
1

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
Interim report for the three months ended 31 March 2012
Condensed Consolidated Statement of Comprehensive Income (contd.)
Individual Quarter
3 months ended
Cumulative Quarter
3 months ended
31.03.2012 31.03.2011 31.03.2012 31.03.2011
Note RM’000 RM’000 RM’000 RM’000
Profit attributable to:
Owners of the parent
Non-controlling interests
Total comprehensive income
attributable to:
Owners of the parent
Non-controlling interests
Earnings per share (“EPS”)
attributable to owners of the parent:
- Basic, EPS for the period (sen) 13
- Diluted, EPS for the period (sen) 13
915
(54)
–––––
861
====
(126)
(498)
–––––
(624)
====
0.66
0.66
====
435
(65)
–––––
370
====
1,348
290
–––––
1,638
====
0.31
0.31
====
915
(54)
––––––
861
=====
(126)
(498)
––––––
(624)
=====
0.66
0.66
====
435
(65)
––––––
370
=====
1,348
290
––––––
1,638
=====
0.31
0.31
====
The condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying explanatory notes attached to the interim financial statements.
2

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
Interim report for the three months period ended 31 March 2012
Condensed Consolidated Statement of Financial Position
ASSETS
Note
31.03.2012
Unaudited
RM’000
31.12.2011
Unaudited
RM’000
(restated)
1.1.2011
Unaudited
RM’000
(restated)
Non-current assets
Property, plant and equipment
Investment in an associate
Other investments
Deferred tax assets
Goodwill on consolidation
14
15
193,217
15
75,297
2
10,008
–––––––
278,539
–––––––
190,996
19
176,984
36
77,820 76,696
3 2
10,008 10,008
––––––– –––––––
278,846 263,726
––––––– –––––––
Current assets
Inventories
Trade receivables
16
Other receivables, deposits and prepayments
Derivative assets 17
Current tax assets
Cash and bank balances 18
TOTAL ASSETS
85,290
56,241
13,968
199
2,701
69,044
–––––––
227,443
–––––––
505,982
======
86,849
61,802
11,995
-
2,993
88,265
53,027
4,687
395
3,635
70,046 83,178
––––––– –––––––
233,685 233,187
––––––– –––––––
512,531
======
496,913
======
3

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
Interim report for the three-month period ended 31 March 2012
Condensed Consolidated Statement of Financial Position (contd.)
EQUITY AND LIABILITIES
Equity
Share capital
Share premium
Note
20
20
31.03.2012 31.12.2011 1.1.2011
Unaudited
RM’000
Unaudited
RM’000
Unaudited
RM’000
(restated) (restated)
154,916
50,877
154,916
50,877
154,916
50,877
Treasury shares
Share option reserve
Other reserves
Revenue reserves
Non-controlling interests
20
3(e)
3(f)
21
17
21
(24,309)
54
2,690
261,151
–––––––
445,379
(24,309) (24,309)
54 54
3,731 1,201
260,236 254,514
––––––– –––––––
445,505 437,253
17,661
–––––––
463,040
–––––––
18,159 16,492
––––––– –––––––
463,664 453,745
––––––– –––––––
TOTAL EQUITY
Non-current liabilities
Provision of employee benefits
Hire purchase liabilities
Deferred taxation
Current liabilities
Trade payables
Other payables and accruals
Derivative liabilities
Hire purchase liabilities
Tax payable
TOTAL LIABILITIES
88
93
548
–––––––
729
–––––––
30,423
11,223
-
57
510
–––––––
42,213
–––––––
89
80
585
–––––––
754
–––––––
55
32
2,664
–––––––
2,751
–––––––
28,838 27,745
14,793 12,213
212
96
4,174
–––––––
-
108
351
–––––––
48,113 40,417
––––––– –––––––
TOTAL EQUITY AND LIABILITIES
Net assets per share attributable to ordinary
equity holders of the parent (RM)
42,942
–––––––
505,982
======
3.19
48,867
–––––––
3.19
43,168
–––––––
512,531 496,913
====== ======
3.13
====== ====== ======
The condensed consolidated statement of financial position should be read in conjunction with the accompanying explanatory notes attached to the interim financial statements.
4

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
Interim report for the three-month period ended 31 March 2012
Condensed Consolidated Statement of Changes in Equity
Attributable to Equity Holders of the Parent
Non-distributable Distributable
Share Share Reserve fund Translation
Share Treasury premium option and enterprise adjustment Revenue capital shares reserve reserves expansion fund account reserve
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2012
Total comprehensive income
for the period
At 31 March 2012
154,916
-
–––––––
154,916
======
(24,309)
-
––––––
(24,309)
=====
50,877
-
––––––
=====
54
-
––––––
50,877 54
=====
1,413
-
––––––
1,413
=====
2,318
(1,041)
––––––
1,277
=====
260,236
915
–––––––
261,151
======
Non- controlling Total
Total interest equity
RM’000 RM’000 RM’000
445,505
(126)
–––––––
445,379
======
18,159
(498)
––––––
17,661
=====
463,664
(624)
–––––––
463,040
======
At 1 January 2011
Total comprehensive income
for the period
At 31 March 2011
154,916
- - - -
––––––– –––––– –––––– ––––––
154,916
======
(24,309)
(24,309)
=====
50,877
50,877
=====
54
54
=====
1,201
-
––––––
1,201
=====
-
913
––––––
913
=====
254,514
435
–––––––
254,949
======
437,253
1,348
–––––––
438,601
======
16,492
290
––––––
16,782
=====
453,745
1,638
–––––––
455,383
======
The condensed consolidated statement of changes in equity should be read in conjunction with the accompanying explanatory notes attached to the interim financial statements.
5

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
Interim report for the three-month period ended 31 March 2012
Condensed Consolidated Statement of Cash Flows
Operating activities
Profit before tax
3 months ended
31.3.2012 31.3.2011
Unaudited
RM’000
Unaudited
RM’000
1,236 743
Adjustments for:
Allowance for doubtful debts
Allowance for doubtful debts no longer required
Depreciation of property, plant and equipment
Dividend income
(Gain)/loss on disposal of other investments
Loss on disposal of property, plant and equipment
Interest expense
Interest income
Gains on fair value changes
Property, plant and equipment written off
Inventories written off
Share of loss of an associate
Unrealised loss on foreign exchange
10
(14)
5,021
(274)
(1)
-
4
(365)
(2,742)
-
170
4
309
238
––––––
3,596
Write-down of inventories provided/(reversed)
Operating cash flows before changes in working capital
Changes in working capital:
Decrease in inventories
Decrease/(increase) in receivables
Decrease in payables
Cash generated from/(used in) operations
Interest paid
Taxes paid, net of refund
Net cash flows from/(used in) operating activities carried forward
17
3,281
(1,189)
––––––
5,705
(4)
(3,745)
––––––
1,956
––––––
9
-
4,713
(274)
7
14
12
(517)
(681)
2
14
4
15
(5)
–––––––
4,056
838
(3,354)
(3,804)
–––––––
(2,264)
(12)
(857)
–––––––
(3,133)
–––––––
6

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
Interim report for the three months ended 31 March 2012
Condensed Consolidated Statement of Cash Flows (contd.)
3 months ended
31.03.2012
Unaudited
Note RM’000
31.03.2011
Unaudited
RM’000
Net cash flows from/(used in) operations brought forward
Investing activities
1,956 (3,133)
Acquisition of property, plant and equipment
Acquisition of other investments
Dividend received
Interest received
Proceeds from disposal of investment
Proceeds from disposal of property, plant and equipment
Net cash flows used in investing activities
Financing activities
Lease obtained
Repayment of lease payables
Net cash flows (used in)/generated from financing activities
(8,212)
(2,002)
130
365
7,001
-
––––––
(2,718)
––––––
-
(25)
––––––
(25)
––––––
(12,793)
(200)
67
517
14
316
––––––
(12,079)
––––––
127
(17)
––––––
110
––––––
Net decrease in cash and cash equivalents
Effect of foreign exchange rate changes
Cash and cash equivalents at 1 January 18
18
(787)
(215)
70,046
––––––
69,044
=====
(15,102)
284
83,178
––––––
68,360
=====
Cash and cash equivalents at 31 March
The condensed consolidated statement of cash flows should be read in conjunction with the accompanying explanatory notes attached to the interim financial statements.
7

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
1. Corporate information
The Company is a public limited liability company incorporated and domiciled in
Malaysia, and is listed on the Bursa Malaysia Securities Berhad.
The condensed consolidated interim financial statements were approved by the Board of
Directors on 24 May 2012.
2. First-time adoption of Malaysian Financial Reporting Standards (“MFRS”)
These condensed consolidated interim financial statements, for the period ended 31 March
2012, have been prepared in accordance with MFRS 134 Interim Financial Reporting and
Paragraph 9.22 of the Main Market Listing Requirements of Bursa Malaysia Securities
Berhad.
These condensed consolidated interim financial statements also comply with IAS 34
Interim Financial Reporting issued by the International Accounting Standards Board. For the periods up to and including the year ended 31 December 2011, the Group prepared its financial statements in accordance with Financial Reporting Standards (“FRS”).
The consolidated financial statements of the Group for the year ended 31 December 2011 which were prepared under FRS are available upon request from the Company’s registered office at 4 ½ Mile, Kung Phin Road, Off Penrissen Road, 93250 Kuching, Sarawak.
These condensed consolidated interim financial statements are the Group’s first MFRS condensed consolidated financial statements for part of the period covered by the Group’s first MFRS annual financial statements for the year ending 31 December 2012. MFRS 1
First-Time Adoption of Malaysian Financial Reporting Standards (“MFRS 1”) has been applied.
The explanatory notes attached to these condensed consolidation interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the year ended 31 December 2011.
In preparing its opening MFRS Statement of Financial Position as at 1 January 2011
(which is also the date of transition), the Group has adjusted the amounts previously reported in financial statements prepared in accordance with FRS. An explanation of how the transition from FRS to MFRS has affected the Group’s financial position, financial performance and cash flows is set out in Note 3 below.
These notes include reconciliations of equity for comparative periods and of equity at the date of transition reported under FRS to those reported for those periods and at the date of transition under MFRS. The transition from FRS to MFRS has not had a material impact on the consolidated statement of comprehensive income and consolidated statement of cash flows.
8

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
3. Significant accounting policies and application of MFRS 1
The audited financial statements of the Group for the year ended 31 December 2011 were prepared in accordance with FRS. Except for certain differences, the requirements under
FRS and MFRS are similar. The significant accounting policies adopted in preparing these condensed interim financial statements are consistent with those of the audited financial statements for the financial year ended 31 December 2011, except as discussed below:
(a) Business combination
MFRS 1 provides the option to apply MFRS 3 Business Combinations , prospectively from the date of transition or from a specific date prior to the date of transition. This provides relief from full retrospective application of MFRS 3 which would require restatement of all business combinations prior to the date of transition.
Acquisition before date of transition
The Group has elected to apply MFRS 3 prospectively from the date of transition. In respect of acquisitions prior to the date of transition,
(i) The classification of former business combinations under FRS is maintained;
(ii) There is no re-measurement of original fair values determined at the time of business combination (date of acquisition); and
(iii) The carrying amount of goodwill recognised under FRS is not adjusted.
(b) Property, Plant and equipment
The Group has previously adopted the transitional provisions available on the first application of the MASB Approved Accounting Standard IAS 16 (Revised) Property,
Plant and Equipment which was effective for periods ending on or after 1 September
1998. By virtue of this transitional provision, the Group had recorded certain leasehold land and certain buildings at revalued amounts but had not adopted a policy of revaluation and continued to carry those land and buildings on the basis of their previous revaluations subject to continuity in its depreciation policy and requirement to write down the assets to their recoverable amounts for impairment adjustments.
Upon transition to MFRS, the Group has elected to measure all its property, plant and equipment using the cost model under MFRS 116 Property, Plant and Equipment .
At the date of transition to MFRS, the Group elected to regard the revalued amounts of land and buildings during the year 1992 as deemed cost.
9

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
3. Significant accounting policies and application of MFRS 1 (contd.)
(c) Translation adjustment account
Under FRS, the Group recognised translation differences on foreign operations in a separate component of equity. Cumulative foreign currency translation differences for all foreign operations are deemed to be zero as at the date of transition to MFRS.
Accordingly, at the date of transition to MFRS, the cumulative foreign currency translation differences of RM12,024,000 (31 March 2011: RM12,024,000;
31 December 2011: RM12,024,000) were adjusted to retained earnings.
(d) Estimates
The estimates at 1 January 2011 and at 31 December 2011 were consistent with those made for the same dates in accordance with FRS. The estimates used by the Group to present these amounts in accordance with MFRS reflect conditions at 1 January 2011, the date of transition to MFRS and as of 31 December 2011.
The reconciliations of revenue reserve and translation adjustment account for comparative periods and at the date of transition reported under FRS to those reported for those periods and at the date of transition under MFRS are provided below:
(e) Translation adjustment account
1.1.2011 31.03.2011 31.12.2011
RM’000 RM’000 RM’000
As previously reported under FRS
Effect of transition to MFRS
12,024 12,937 14,342
Transfer to revenue reserve
As reported under MFRS
Note 3(c) (12,024)
––––––
-
Reserve fund and enterprise expansion fund 1,201
––––––
Other reserves 1,201
=====
(f) Revenue reserve
(12,024)
––––––
913
1,201
––––––
2,114
=====
(12,024)
––––––
2,318
1,413
––––––
3,731
=====
1.1.2011 31.03.2011 31.12.2011
RM’000 RM’000 RM’000
As previously reported under FRS
Effect of transition to MFRS
242,490
Translation adjustment account Note 3(c) 12,024
–––––––
As reported under MFRS 254,514
======
242,925
12,024
–––––––
254,949
======
248,212
12,024
–––––––
260,236
======
10

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
4. Comments about seasonal or cyclical factors
The business operations of the Group have been significantly affected by seasonal or cyclical factors relating to the festive season, which normally affects the construction industry in the first quarter of the year.
5. Unusual items due to their nature, size and incidence
There were no unusual items affecting the assets, liabilities, equity, net income, or cash flows of the Group for the financial period ended 31 March 2012.
6. Changes in estimates
There were no changes in estimates of amounts that have had a material effect in the current financial period results.
7. Dividends paid
No dividend was paid during the financial period.
8. Subsequent events
There were no material events subsequent to the end of the period reported that have not been reflected in this interim financial statements, except as disclosed in Note 22.
9. Changes in composition of the Group
There were no changes in the composition of the Group during the current financial period.
10. Changes in contingent liabilities and contingent assets
There were no material contingent liabilities or contingent assets since the last annual balance sheet as at 31 December 2011.
11

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
11. Profit before tax
Profit for the period is arrived at after charging/(crediting):
Allowance for doubtful debts
Allowance for doubtful debts no longer required
Depreciation of property, plant and equipment
Dividend income
Gains on fair value changes
- derivatives
- other investments
(Gain)/loss on disposal of other investments
3 months ended
31.03.2012 31.03.2011
RM’000
10
(14)
5,021
(274)
RM’000
9
-
4,713
(274)
Interest expense
Interest income
Inventories written off
Loss on disposal of property, plant and equipment
Property, plant and equipment written off
Share of loss of an associate
Unrealised loss on foreign exchange
Write-down of inventories provided/(reversed)
12. Income tax expense
Current income tax:
Malaysian income tax
Foreign tax
Over provided in prior years:
(411) -
(2,331) (681)
(1) 7
4
(365)
170
-
-
4
309
238
=====
12
(517)
14
14
2
4
15
(5)
=====
3 months ended
31.03.2012 31.03.2011
RM’000
652
20
–––––
672
RM’000
1,100
-
–––––
1,100
Malaysian income tax
Deferred income tax
Income tax expense for the period
(260)
–––––
412
(37)
–––––
375
====
(420)
–––––
680
(307)
–––––
373
====
The Group’s effective tax rate for the current financial quarter presented is higher than the statutory tax rate principally due to the losses of certain subsidiaries which cannot be set off against taxable profits made by other subsidiaries, and certain expenses which are not deductible for tax purposes.
12

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
13. Earnings per share
(a) Basic
Basic Earnings per share amounts are calculated by dividing profit for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares in issue during the period, excluding treasury shares held by the
Company.
Individual Quarter Cumulative Quarter
3 months ended 3 months ended
31.03.2012 31.03.2011 31.03.2012 31.03.2011
Profit attributable to
owners of the parent (RM’000) 915 435 915 435
––––––– ––––––– ––––––– –––––––
Number of ordinary shares
in issue as of 1 January (’000) 154,916 154,916 154,916 154,916
Number of treasury shares (’000) (15,377) (15,377) (15,377) (15,377)
––––––– ––––––– ––––––– –––––––
Weighted average number of ordinary shares in issue (’000) 139,539 139,539 139,539 139,539
––––––– ––––––– ––––––– –––––––
Basic earnings per share (sen) 0.66 0.31 0.66 0.31
(b) Diluted
====== ====== ====== ======
For the purpose of calculating diluted earnings per share, the profit for the period attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares in issue during the period have been adjusted for the dilutive effects of all potential ordinary shares, namely share options granted to employees.
Individual Quarter Cumulative Quarter
3 months ended 3 months ended
31.03.2012 31.03.2011 31.03.2012 31.03.2011
Profit attributable to
owners of the parent (RM’000) 915 435 915 435
––––––– ––––––– ––––––– –––––––
Weighted average number
of ordinary shares in issue (’000)
Effect of dilution
due to share options
139,539 139,539 139,539 139,539
(’000) - - - -
––––––– ––––––– ––––––– –––––––
Adjusted weighted average
number of ordinary shares
in issue and issuable (’000)
Diluted earnings per share (sen)
139,539 139,539 139,539 139,539
––––––– ––––––– ––––––– –––––––
0.66 0.31 0.66 0.31
====== ====== ====== ======
13

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
14. Property, plant and equipment
During the three months ended 31 March 2012, the Group acquired assets at a cost of
RM8,212,000 (31 March 2011: RM12,793,000).
There were no disposal of assets by the Group during the three months ended 31 March
2012 (31 March 2011: assets with carrying amounts of RM331,000 were disposed), resulting in no gain on disposal (31 March 2011: loss on disposal of RM14,000), recognised and included in other expenses in the consolidated statement of comprehensive income.
15. Goodwill on consolidation
Cost
At 1 January 2011/31 December 2011/31 March 2012
Accumulated impairment
At 1 January 2011/31 December 2011/31 March 2012
RM’000
10,627
(619)
–––––
RM’000
10,627
(619)
–––––
Net carrying amount
At 1 January 2011/31 December 2011/31 March 2012
16. Inventories
10,008
=====
10,008
=====
During the three months ended 31 March 2012, the Group recognised a write-down of inventories of RM238,000 (31 March 2011: reversal of write-down of RM5,000) to net realisable value. This expense was included in other expenses in the consolidated statement of comprehensive income.
14

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
17. Derivatives assets
As at the end of the current financial period, the derivatives (including financial instruments designated as hedging instruments) entered into by the Group consist of forward foreign exchange contracts entered regularly by a subsidiary of the Group with licensed financial institutions to hedge against currency fluctuation for its accounts receivables and payables as part of the normal course of business. Details of the outstanding derivative financial instruments as at 31 March 2012 are tabulated below.
Contract
Value
RM’000
Fair
Value
RM’000
Gain/(loss) on fair value changes
RM’000
Reason for gain/(loss)
Maturity within 1 year 10,557
=====
10,358 199 Strengthening of Ringgit
===== ==== Malaysia against USD
The fair value of forward foreign exchange contract is determined by using the market rates at the end of reporting period and changes in the fair value is recognised in the profit or loss. The subsequent cumulative change in the fair value of the commitment attributable to the hedged risk is recognised as an asset or a liability with the corresponding gain or loss recognised in the profit or loss.
The above derivative financial instrument is subjected to credit risk arising from the possibility of default of the counter party in meeting its contractual obligations in which the Group has a gain in the contract. This, however, is minimised as the financial instrument is executed with creditworthy financial institutions in Malaysia.
The Group had sufficient internal funds for its settlement when it falls due.
18. Cash and bank balances
Cash and cash equivalents comprised the following amounts:
31.3.2012 31.12.2011 1.1.2011
RM’000 RM’000 RM’000
Cash on hand and at bank
Deposits with financial institutions
Cash and cash equivalents
17,559
51,485
––––––
69,044
=====
16,026
54,020
––––––
70,046
=====
14,118
69,060
––––––
83,178
=====
15

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
19. Fair value hierarchy
No transfers between any levels of the fair value hierarchy took place during the current interim period and the comparative period. There were also no changes in the purpose of any financial asset that subsequently resulted in a different classification of that asset.
The Group’s financial assets consist of other investments and derivative assets. The carrying amount of financial assets represents the potential credit risk as the Group does not hold credit enhancements or collateral to mitigate credit risk.
20. Share capital, share premium and treasury shares
Issue of shares
There was no issuance of ordinary shares during the current financial quarter.
Treasury shares
During the current financial period, the Company has not purchased any of its own shares.
Of the total 154,916,013 (2011: 154,916,013) issued and fully paid ordinary shares as at 31
March 2012, 15,376,900 (2011: 15,376,900) are held as treasury shares by the Company.
As at 31 March 2012, the number of outstanding ordinary shares in issue after the set off is therefore 139,539,113 (2011: 139,539,113) ordinary shares of RM1 each.
Executive Share Options Scheme (“ESOS”)
The Company has an employee share option plan under which options to subscribe for the
Company’s ordinary shares have been granted to Executive Directors and eligible employees of the Group. A total of 3,904,000 options remained unexercised as at the end of the financial period. The ESOS, which was implemented on 23 April 2002, has since expired on 22 April 2012.
21. Borrowings and debt securities
The details of the Group’s secured borrowings are as follows:
31.3.2012 31.12.2011 1.1.2011
RM’000 RM’000 RM’000
Hire purchase liabilities
Current 57 96 108
Non-current 93
–––
80
–––
32
–––
Total borrowings 150 176 140
=== === ===
The Group’s borrowings include borrowings by a foreign subsidiary in Ringgit equivalent as at 31 March 2012 as follows:
Australian Dollar
AUD’000
8
===
RM’000
Equivalent
25
===
16

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
22. Capital commitments
The amount of capital expenditure for property, plant and equipment not provided for in the interim financial statements as at 31 March 2012 is as follows:
31.3.2012 31.12.2011 1.1.2011
RM’000 RM’000 RM’000
Authorised and contracted for 39,249 13,160 46,934
Authorised but not contracted for 808
––––––
40,057
=====
1,049
––––––
14,209
=====
10,747
––––––
57,681
=====
The pending purchase of a property in Melbourne, Australia, amounting to RM28 million, as announced by the Group on 12 April 2012 and 30 April 2012 is included in the Group’s authorised and contracted for capital commitments.
23. Contingencies
There were no other contingencies for the current financial quarter, except the contingent liability, which was made up of corporate guarantees issued to financial institutions for credit facilities granted to certain subsidiaries.
The Directors of the Company are of the view that the likelihood of default in payments by the subsidiaries is not probable and accordingly no provision for liability has been made in respect of these corporate guarantees given.
24. Related party transactions
The following table provides information on the transactions which have been entered into with related parties during the three-month period ended 31 March 2012 and 31 March
2011:
3 months ended
31.03.2012 31.3.2011
RM’000 RM’000
Holding company, Kim Hin (Malaysia) Sdn Bhd
Rental of office and warehouse
Insurance commission earned as insurance agent
A subsidiary of holding company,
499
38
499
71
Kam Kam (Sanitaryware) Sdn Bhd
Purchases of sanitary ware for resale
Supply of materials and spare parts
Directors’ interest
Sale of ceramic tiles
Provision of legal services
425
-
-
2
1,471
326
9
8
-
488 Renovation and maintenance costs
Provision of container haulage, transport, declaration,
loading and unloading services
Provision of warehouse management, operations,
and inventory management
1,363
164
=====
1,006
148
=====
17

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART A – Explanatory Notes Pursuant to MFRS 134
25. Segmental information
The information for each of the Group’s geographical segments for the current financial period is as follows:
Malaysia China Australia
Operation Operation Operation Total
RM’000 RM’000 RM’000 RM’000
31.03.2012
Segment Revenue
Total sales
Inter-segment sales
Segment Results
Segment operating profit/(loss)
Finance cost
48,297
(1,166)
–––––––
47,131
======
9,328
(23)
––––––
9,305
=====
2,297
-
––––––
2,297
=====
59,922
(1,189)
–––––––
58,733
======
Share of associate’s result
Profit/(loss) before tax
Income tax expense
Profit/(loss) for the period
1,668 (170)
(4) -
(4)
––––––
-
–––––
1,660 (170)
(355)
––––––
(20)
–––––
1,305 (190)
-
––––––
54
–––––
(254)
-
-
––––
(254)
-
––––
(254)
-
––––
1,244
(4)
(4)
––––––
1,236
(375)
––––––
861
54
––––––
Non-controlling interest
Profit/(loss) attributable
to owners of the parent
31.03.2011
Segment Revenue
Total sales
Inter-segment sales
Segment Results
Segment operating profit/(loss)
Finance cost
1,305
=====
45,770
(714)
–––––––
45,056
======
(136)
====
10,796
-
––––––
10,796
=====
(254)
====
2,080
-
––––––
2,080
=====
915
=====
58,646
(714)
–––––––
57,932
======
Share of associate’s result
Profit/(loss) before tax
Income tax expense
Profit/(loss) for the period
Non-controlling interest
Profit/(loss) attributable to
equity holders of the parent
1,006 (228)
(2) -
(4)
––––––
-
–––––
1,000 (228)
(373)
––––––
627
-
–––––
(228)
-
––––––
65
–––––
627
=====
(163)
====
(19)
(10)
-
––––
(29)
-
––––
(29)
-
––––
(29)
====
759
(12)
(4)
––––––
743
(373)
––––––
370
65
––––––
435
=====
18

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART B – Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of
Bursa Malaysia Securities Berhad
26. Performance review
Current financial quarter as compared with preceding year’s corresponding quarter
During the current financial quarter under review, revenue of the Group improved marginally to RM58.7 million from RM57.9 million and profit before tax for the quarter increased from RM0.7 million to RM1.2 million when compared to the preceding year’s corresponding financial quarter ended 31 March 2011.
The Group’s operations in Malaysia and Australia registered an increase of 4.6% and
10.4% respectively in revenue for the current financial quarter while the revenue of its
China operation has declined by 13.8% due to reduced demand from overseas customers.
The performance of the Group’s Malaysia operation for the current financial quarter included a higher gain arising from fair value changes of RM2.7 million as compared to
RM0.7 million gains on fair value changes recorded in the preceding year’s corresponding quarter.
27. Comment on material change in the current financial quarter’s results compared to the results of the preceding quarter
The Group’s revenue for the current financial quarter has declined to RM58.7 million from
RM70.7 million recorded in the immediate preceding quarter as a result of seasonal factors as disclosed in Note 4.
The Group recorded profit before tax of RM1.2 million for the current financial quarter under review as compared to profit before tax of RM8.1 million for the immediate preceding quarter, mainly due to lower revenue and higher operating costs.
28. Commentary on prospects
The Group expects the business and trading environment for the current year to continue to be challenging in view of the uncertainties prevalent in the global economy, intense competition in domestic market as well as the continual high price level of liquefied petroleum gas. The results of the Group will largely depend upon the performance of the national and regional economies, fluctuations in main operating costs and foreign exchange movement.
19

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART B – Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of
Bursa Malaysia Securities Berhad
29. Profit forecast or profit guarantee
The disclosure requirements for explanatory notes for the variance of actual profit after tax and non-controlling interest and forecast profit after tax and non-controlling interest and for the shortfall in profit guarantee are not applicable.
30. Commentary on progress to achieve revenue or profit estimate, forecast, projection or internal targets
The disclosure requirements are not applicable as no announcements or disclosures were published by the Company in a public document as to the revenue or profit estimate, forecast, projection or internal targets as at the date of this announcement.
31. Statement by the Board of Directors on achievability of revenue or profit estimate, forecast, projection or internal targets
The statement of the Board of Directors’ opinion are not required as no announcements or disclosures were published by the Company in a public document as to the revenue or profit estimate, forecast, projection or internal targets as at the date of this announcement.
32. Status of corporate proposals
There were no corporate proposals announced but not completed as at 23 May 2012.
33. Changes in material litigation
As at the date of this announcement, the Group is not engaged in any pending material litigation except for debt recovery actions initiated by the Group against certain of its trade receivables in the normal course of business.
34. Dividend payable
An interim ordinary dividend has not been declared for the financial year ending 31
December 2012 (31 December 2011: Nil).
35. Disclosure of nature of outstanding derivatives
Please refer to Note 17 for details.
36. Disclosure of gains / losses arising from fair value changes of financial liabilities
The Group did not have any financial liabilities measured at fair value through profit or loss as at 31 March 2012 and 31 December 2011.
20

KIM HIN INDUSTRY BHD
(Company No: 018203-V)
PART B – Explanatory Notes Pursuant to Appendix 9B of the Listing Requirements of
Bursa Malaysia Securities Berhad
37. Realised and unrealised profits
The breakdown of the retained profits of the Group as at 31 March 2012 and 31 December
2011, into realised and unrealised profits is presented in accordance with the directive issued by Bursa Malaysia Securities Berhad dated 25 March 2010 and 20 December 2010, prepared in accordance with Guidance on Special Matter No. 1, Determination of Realised and Unrealised Profits or Losses in the Context of Disclosure Pursuant to Bursa Malaysia
Securities Berhad Listing Requirements, as issued by the Malaysian Institute of
Accountants.
As at As at
31.03.2012 31.03.2011
RM’000
RM’000
Total retained profits of the Company and its subsidiaries
- Realised
- Unrealised in respect of
- deferred tax recognised in the income statement
- other items of income and expense
Total share of accumulated losses from an associate:
- Realised
263,937
(546)
(36)
–––––––
259,576
(2,355)
(36)
––––––
263,355 257,185
(1,877) (1,861)
––––––– –––––––
261,478 255,324
Less: Consolidated adjustments
Total Group’s revenue reserve as per financial statements
(327)
–––––––
(375)
–––––––
261,151 254,949
====== ======
The disclosure of realised and unrealised profits above is solely for complying with the disclosure requirements stipulated in the directive of Bursa Malaysia and should not be applied for any other purpose.
38. Auditors’ report on preceding annual financial statements
The auditors’ report on the financial statements for the year ended 31 December 2011 was not qualified.
BY ORDER OF THE BOARD
LOW WAI SEE
Secretary
24 May 2012
21