Third Quarter Financial Statement And Dividend Announcement

PART I - 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 of the immediately preceding financial year

	The Group			The Group
	3 months ended 30/09/03 S$'000	3 months ended 30/09/02 S$'000	% Increase/ (Decrease)	9 months ended 30/09/03 S$'000	9 months ended 30/09/02 S$'000	% Increase/ (Decrease)
Revenue (Note 1)	24,629	21,107	16.7	67,138	54,872	22.4
Cost of Sales (Note 1)	(15,191)	(13,845)	9.7	(45,033)	(34,676)	29.9
Gross Profit	9,438	7,262	30.0	22,105	20,196	9.5
Administrative costs	(3,297)	(2,186)	50.8	(7,312)	(4,934)	48.2
Distribution costs	(977)	(1,126)	-13.2	(2,595)	(3,231)	-19.7
Other operating costs	(1,286)	(718)	79.1	(2,299)	(1,897)	21.2
Other operating income	120	56	114.3	324	166	95.2
Profit from operating activities	3,998	3,288	21.6	10,223	10,300	-0.7
(Note 2)
Finance costs	(195)	(218)	-10.6	(589)	(649)	-9.2
Share of results of an associated company	-	-
Profit before income tax	3,803	3,070	23.9	9,634	9,651	-0.2
Income Tax	(879)	(669)	31.4	(2,235)	(2,047)	9.2
Profit after income tax	2,924	2,401	21.8	7,399	7,604	-2.7
Minority Interest	(7)	35	N.M.	(7)	17	N.M
Net profit attributable to members of the company	2,917	2,436	19.7	7,392	7,621	-3.0

Note 1

For the 9 months ended 30 September 2003, the amount included in the Revenue and Cost of Sales was S$3.4 million for revenue and costs respectively for Mould Fabrication work recognized only to the extent of contract costs incurred that were probable to be recoverable. The related contract costs are taken into the cost of sales in the same period.

(Please refer to item 5 below on changes in accounting policy FRS 11).

Note 2
Included in the total operating costs in the 3rd Quarter ended 30 September 2003 was S$0.6 million expenses incurred relating to the Company's Initial Public Offering (the "IPO"), and S$0.4 million was incurred in respect of the start up of the Mexico operations, increase in Directors' remuneration of S$0.2 million and additional provision made for doubtful debts of S$0.2million.

For the 9 months ended 30 September 2003, included in the administration costs was S$0.6 million expenses incurred relating to the IPO, S$0.5 million net provision on bonus written back and S$0.9 million was incurred in respect of the start up of the Mexico operations.

	The Group		The Group
	3 months ended 30/09/03 S$'000	3 months ended 30/09/02 S$'000	9 months ended 30/09/03 S$'000	9 months ended 30/9/02 S$'000
(A) Investment income	-	-	-	-
(B) Other income including interest income	(77)	(19)	(218)	(109)
(C) Interest on borrowing	195	219	589	650
(D) Depreciation and amortization	1,097	975	3,262	2,854
(E) (Write back)/provision for doubtful debts and bad debts written off	219	-	328	(658)
(F) Write-off for stock obsolescence	133	(33)	123	527
(G) Impairment in value of investments	-	1	-	2
(H) Foreign currency (gain)/loss	201	235	(59)	1,214
(I) Adjustments for (over)/under provision of prior year tax	-	-	-	-
(J) (Gain)/Loss on sales of investments, properties, and/or plant and equipment	(3)	(66)	(6)	(84)
(K) Exceptional item	-	-	-	-
(L) Extraordinary item	-	-	-	-

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

	The Group		The Group
	30 Sep 03	31 Dec 02	30 Sep 03	31 Dec 02
	S$'000	S$'000	S$'000	S$'000
Property, plant and equipment	33,529	29,459	11,888	12,516
Subsidiary companies	-	-	10,750	7,820
Investments	1	1	1	1
Associated company	-	-	-	-
Deferred expenditure	-	-	-	-
Current Assets
Inventories	13,630	11,569	7,138	6,580
Trade receivables	25,195	20,407	17,720	15,501
Other receivables	2,878	2,597	1,231	1,291
Amounts due from subsidiary companies	-	-	4,414	-
Amounts due from related parties	112	114	112	113
Fixed deposits	20,497	3,322	19,124	1,943
Cash and bank balances	23,290	21,498	12,954	12,039
	85,602	59,507	62,693	37,467
Current Liabilities
Trade payables	10,400	8,531	5,367	4,336
Other payables	4,958	8,008	2,847	4,236
Hire purchase payables	1,801	1,960	1,152	1,251
Amounts due to bankers	2,361	1,620	1,374	1,197
Amounts due to subsidiary companies	-	-	-	598
Provision for taxation	2,466	1,964	1,466	1,638
	21,986	22,083	12,206	13,256
Net current assets	63,616	37,424	50,487	24,211
Non-current liabilities
Hire purchase payables	1,359	1,585	956	1,079
Amount due to bankers	5,089	5,336	4,811	5,336
Deferred taxation	1,741	1,742	1,152	1,152
	8,189	8,663	6,919	7,567
Net Assets	88,957	58,221	66,207	36,981
Capital and Reserves
Share capital	47,909	16,998	47,909	16,998
Share premium	12,113	-	12,113	-
Revaluation reserve	622	622	622	622
Capital and statutory reserve	1,427	1,447	-	-
Foreign exchange translation reserve	122	427	-	-
Revenue reserve	26,439	38,408	5,563	19,361
	88,632	57,902	66,207	36,981
Minority interests	325	319	-	-
	88,957	58,221	66,207	36,981

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

Amount repayable in one year or less, or on demand



As at 30/09/2003

As at 31/12/2002

Secured	Unsecured	Secured	Unsecured
S$4,162,000	0	S$3,580,000	0



Amount repayable after one year



As at 30/09/2003

As at 31/12/2002

Secured	Unsecured	Secured	Unsecured
S$6,448,000	0	S$6,921,000	0



Details of any collateral

The secured facilities of the Group comprise trust receipts, bank loans and finance leases.
1. The bank loan of the Company is secured by a mortgage over the leasehold land and buildings in Singapore. The loans are repayable over a period of 120 monthly installments at the bank prime rate.
2. The bank loan of a subsidiary of S$834,000 is secured by the cash and bank balances of a
subsidiary. The bank loan bears interest of 3% per annum.
3. The bank loan of a subsidiary of S$431,500 is secured by the particular fixed assets of that subsidiary and corporate guarantee from the Company. The bank loan bears interest of bank prime rate on monthly rest basis.
4. The finance leases are secured by certain fixed assets of the subsidiary companies and the Company with a total net book value of S$6.7 million as at 30 September 2003 (30 September 2002 :S$7.7 million)

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

	The Group		The Group
	3 months ended 30/09/03	3 months ended 30/09/02	9 months ended 30/09/03	9 months ended 30/09/02
	S$'000	S$'000	S$'000	S$'000
Cash flow from operating activities
Profit before taxation and minority interests	3,803	3,070	9,634	9,651
Adjustments for:
Share of loss of associated company	-	-	-	-
Depreciation of fixed assets	1,097	975	3,262	2,854
Amortisation of preliminary and pre-operating expenses	-	-	-	-
Amortisation of goodwill	-	-	-	-
Provision for diminution in value of quoted investments	-	1	-	2
(Gain)/Loss on sales of fixed assets	(3)	(66)	(6)	(84)
Interest expenses	195	219	589	650
Interest income	(27)	(54)	(70)	(109)
Currency re-alignment	(362)	(328)	(318)	(957)
Operating profit before working capital changes	4,703	3,817	13,091	12,007
Decrease/(Increase) in inventories	(102)	141	(2,061)	(1,630)
Decrease/(Increase) in trade receivables	(1,404)	(2,197)	(4,788)	(4,317)
Decrease/(Increase) in other receivables	1,268	262	(281)	(676)
Decrease/(Increase) in amount due from related companies	10	(61)	2	(38)
(Decrease)/Increase in trade payables	1,570	519	1,869	2,036
(Decrease)/Increase in other payables and accruals	362	(252)	(3,049)	(999)
(Decrease)/Increase in amount due to related companies	(13)	-	-	(290)
Cash generated from operations	6,394	2,229	4,783	6,093
Interest paid	(195)	(219)	(589)	(650)
Interest received	27	54	70	109
Tax paid	(438)	(1,197)	(1,734)	(2,380)
Net Cash provided from operating activities	5,788	867	2,530	3,172
Net Cash provided from investing activities
Proceeds from sales of fixed assets	823	338	939	503
Purchase of fixed assets	(5,126)	(617)	(8,265)	(2,188)
Decrease/(Increase) in fixed deposits	(16,457)	3,524	(17,175)	(395)
Cash flow on acquisition, net of cash required	-	-	-	-
Net cash (used in) investing activities	(20,760)	3,245	(24,501)	(2,080)
Cash flows from financing activities
(Payment)/proceeds of hire purchase creditors	(270)	(700)	(385)	(1,402)
Proceeds from term loans	230	-	863	-
Proceeds from the exercise of share options and warrants	-	-	-	-
Repayment of bank borrowings	(198)	(202)	(780)	(930)
Issue of shares	23,663	-	23,663	-
Payment of dividends	-	(464)	-	(464)
Net cash (used in) financing activities	23,425	(1,366)	23,361	(2,796)
Net increase in cash and cash equivalents	8,453	2,746	1,390	(1,704)
Cash and cash equivalents at beginning of period	14,003	16,458	21,066	20,908
Cash and cash equivalents at end of period	22,456	19,204	22,456	19,204

Cash and cash equivalents included in the consolidated cash flow statement comprise the following balance sheet amounts:-

	The Group
	30 Sep 03	30 Sep 02
	S$'000	S$'000
Cash and bank balance	23,290	19,204
Less: Amount pledged to bank by a subsidiary (Note 1)	(834)	-
Cash and bank equivalents	22,456	19,204

Note 1
The amount is pledged to secure a bank loan for a subsidiary.

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year

	Share Capital	Share Premium	Revaluation Reserve	Statutory Reserve	Foreign Currency Translation Reserve	Revenue Reserve	Total
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
The Group
Balance at 1 January 2003	16,998	-	622	1,447	427	38,408	57,902
Issuance of ordinary shares	19,361	-	-	-	-	-	19,361
Transfer from/to revenue reserve	-	-	-	-	-	-	-
Net profit for the period	-	-	-	-	-	4,475	4,475
Amount applied for bonus issue of ordinary shares	-	-	-	-	-	(19,361)	(19,361)
Exchange difference on consolidation	-	-	-	4	82	-	86
Balance at 30 June 2003	36,359	-	622	1,451	509	23,522	62,463
Issuance of ordinary shares	11,550	12,113	-	-	-	-	23,663
Transfer from/to revenue reserve	-	-	-	-	-	-	-
Net profit for the period	-	-	-	-	-	2,917	2,917
Amount applied for bonus issue of ordinary shares	-	-	-	-	-	-	-
Exchange difference on consolidation	-	-	-	(24)	(387)	-	(411)
Balance at 30 September 2003	47,909	12,113	622	1,427	122	26,439	88,632
Balance at 1 January 2002	16,998	-	602	1,399	2,084	30,874	51,957
Issuance of ordinary shares	-	-	-	-	-	-	-
Transfer from/to revenue reserve	-	-	-	-	-	-	-
Net profit for the period	-	-	-	-	-	5,185	5,185
Amount applied for bonus issue of ordinary shares	-	-	-	-	-	-	-
Exchange difference on consolidation	-	-	-	-	(1,076)	-	(1,076)
Balance at 30 June 2002	16,998	-	602	1,399	1,008	36,059	56,066
Issuance of ordinary shares	-	-	-	-	-	-	-
Transfer from/to revenue reserve	-	-	-	-	-	-	-
Net profit for the period	-	-	-	-	-	2,436	2,436
Amount applied for bonus issue of ordinary shares	-	-	-	-	-	-	-
Dividend payable	-	-	-	-	-	(464)	(464)
Exchange difference on consolidation	-	-	-	83	59	-	142
Balance at 30 September 2002	16,998	-	602	1,482	1,067	38,031	58,180

	Share Capital	Share Premium	Revaluation Reserve	Statutory Reserve	Foreign Currency Translation Reserve	Revenue Reserve	Total
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
The Company
Balance at 1 January 2003	16,998	-	622	-	-	19,361	36,981
Issuance of ordinary shares	19,361	-	-	-	-	-	19,361
Transfer from/to revenue reserve	-	-	-	-	-	-	-
Net profit for the period	-	-	-	-	-	1,996	1,996
Amount applied for bonus issue of ordinary shares	-	-	-	-	-	(19,361)	(19,361)
Exchange difference on consolidation	-	-	-	-	-	-	-
Balance at 30 June 2003	36,359	-	622	-	-	1,996	38,977
Issuance of ordinary shares	11,550	12,113	-	-	-	-	23,663
Transfer from/to revenue reserve	-	-	-	-	-	-	-
Net profit for the period	-	-	-	-	-	3,567	3,567
Amount applied for bonus issue of ordinary shares	-	-	-	-	-	-	-
Exchange difference on consolidation	-	-	-	-	-	-	-
Balance at 30 September 2003	47,909	12,113	622	-	-	5,563	66,207
Balance at 1 January 2002	16,998	-	602	-	-	15,468	33,068
Issuance of ordinary shares	-	-	-	-	-	-	-
Transfer from/to revenue reserve	-	-	-	-	-	-	-
Net profit for the period	-	-	-	-	-	4,577	4,577
Amount applied for bonus issue of ordinary shares	-	-	-	-	-	-	-
Exchange difference on consolidation	-	-	-	-	-	-	-
Balance at 30 June 2002	16,998	-	602	-	-	20,045	37,645
Issuance of ordinary shares	-	-	-	-	-	-	-
Transfer from/to revenue reserve	-	-	-	-	-	-	-
Net profit for the period	-	-	-	-	-	(144)	(144)
Amount applied for bonus issue of ordinary shares	-	-	-	-	-	-	-
Dividend payable	-	-	-	-	-	(464)	(464)
Exchange difference on consolidation	-	-	-	-	-	-	-
Balance at 30 September 2002	16,998	-	602	-	-	19,437	37,037

1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares or cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year

On 31 July 2003, the Company was admitted to the Official List of the Singapore Exchange Securities Trading Limited (the "SGX-ST"). In connection with the Company's IPO, 65,000,000 new ordinary shares of S$0.15 each were issued at S$0.32 each and fully paid-up.

On 1 September 2003, the Company issued 12,000,000 new ordinary shares of S$0.15 each pursuant to over-allotment option granted by the Company to DBS Bank Ltd, to cover the over-allotment made in connection with the IPO. All the shares were fully paid-up.


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

The above figures have not been audited and reviewed by the Independent auditors.


3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter)

Not applicable.


4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied

The Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period as compared to the audited financial statements in respect of the financial year ended 31 December 2002, except for revenue from Mould Fabrication work which were recognised upon acceptance and final approval from customers in our audited financial statements in respect of the financial year ended 31 December 2002, that is, the completed contract method was used.


5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

As was disclosed in the IPO Prospectus dated 22 July 2003, and as is required by FRS 11 Construction Contracts ("FRS 11"), (previously known as SAS) the stage of completion of method will have to be adopted for the recognition of revenue and costs for the Mould Fabrication segment for financial years beginning on or after 1 April 2002. When the outcome of a contract can be estimated reliably, contract revenue and costs are recognised as income and expense respectively by reference to the value of work performed relative to the contract value. When the outcome of the contract cannot be estimated reliably, revenue is recognised only to the extent of contract costs incurred that are probable to be recoverable and contract costs are recognised as an expense in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

This new accounting policy is applicable to us from the financial periods beginning on 1 January 2003. If the outcome of a contract cannot be estimated reliably, FRS 11 requires us to recognise revenue only to the extent of the costs incurred and accordingly, our gross profit margin may be affected. Consequently, our gross profit margin for the 3 months ended 30 September 2003 had decreased by 0.1% and for the 9 months ended 30 September 2003 had decreased by 1.8%. (see 1(a)(I) Note 1 above for the effect of the change). The impact on the profit of the Group was not material for the period ended 30 September 2003.


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

	The Group		The Group
	3 months ended 30/09/03	3 months ended 30/09/02	9 months ended 30/09/03	9 months ended 30/09/02
Earnings per ordinary share for the period based on net profit attributable to shareholders;-
Based on the weighted average number of ordinary Shares on issue (cents)	1.13	1.00	2.86	3.14
On fully diluted basis	1.13	1.00	2.86	3.14

Basic earnings per share and diluted earnings per share for the period is calculated based on the Group's profit attributable to the shareholders divided by the weighted average number of ordinary shares of 258,458,131 (30 September 2002 : 242,392,438). There was no dilutive effect from the share options granted under the Employee Share Option Scheme.

7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year

	The Group		The Company
	30 Sep 03	31 Dec 02	30 Sep 03	31 Dec 02
	S$'000	S$'000	S$'000	S$'000
Net asset value per ordinary shares based on issued share capital at the end of the period (cents)	27.75	23.89	20.73	15.26

Net asset value per ordinary shares is calculated based the Group's net asset value divided by the number of ordinary shares at the end of the 30 September 2003 of 319,392,438 (31 December 2002 : 242,392,438).


8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or 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

3rd Quarter Performance
The Group's revenue for the 3rd Quarter ended 30 September 2003 increased by approximately S$3.5million or 16.7% to S$24.6million as compared to S$21.1million in the previous corresponding period. This was attributable to increases in all our business segments.

The Group's gross profit increased by S$2.1million or 30.0% to S$9.4million as compared to S$7.3million in the previous corresponding period. This was in line with the increase in sales due to successful transfer of the automotive project to Shanghai (with increased orders), new projects launched from automotive and telecommunication customers in Singapore and Tianjin respectively. However, the net cost of S$0.06million associated with the revenue recognized in compliance with FRS 11 resulted in a decrease in the gross profit margin by 0.1%.

The Group's total operating costs increased by S$1.5million. This was due to S$0.6 million expenses incurred relating to the IPO, S$0.4 million was incurred in respect of the start up of the Mexico operations, increase in Directors' remuneration of S$0.2million and additional provision made for doubtful debts of S$0.2million

The Group's net profit before tax increased by S$0.7million or 23.9% to S$3.8million as compared to S$3.1million in the previous corresponding period.

9 Months Performance
The Group's revenue for 9 months ended 30 September 2003 increased by approximately S$12.2million or 22.4% to S$67.1million as compared to S$54.9million in the previous corresponding period. This was attributable to increases in all our business segments.

The Group's gross profit increased by S$1.9million or 9.5% to S$22.1million as compared to S$20.2million in the previous corresponding period. This was in line with the increase in sales.

The impact of FRS11 resulted in a 1.8% decrease in the gross profit margin.

The Group's total operating costs increased by S$2.0million. This was due to S$0.6 million expenses incurred relating to the IPO, S$0.5million provision on bonus written back in 9 months ended 30 September 2002 and S$0.9 million was incurred in respect of the start up of the Mexico operations.

The Group's net profit before tax was maintained at S$9.6million.

The impact of FRS 11 resulted in a 0.8% decrease in the net profit before tax margin.

The increase in the property, plant and equipment was mainly due to capital expenditure of S$8.3million for new equipment purchased during the 9 months ended 30 September 2003.

The increases in the inventories and trade receivables were in line with the increase in sales.

The decrease in other payables and accruals was due to settlement of purchase of fixed assets.

The cash flow position remains strong; we generated a net cash flow of S$1.4million for the 9 months ended 30 September 2003. This was derived by cash generated from operating activities of S$2.5million. The financing activities of S$23.4million due to the issue of ordinary shares was then offset by the purchase of fixed assets. The increase in the cash used in investing activities was due to increase in fixed deposit by S$24.5million. The cash and cash equivalents at 30 September 2003 was S$22.5 million. The cash generated from profit before income tax and depreciation was approximately S$12.9million. The gearing (taken as the ratio of total borrowings to equity) of our Group as at 30 September 2003 was approximately 12% compared to 18.1% as at 31 December 2002.



9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results

Not applicable.


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

The industry in which the Group operates remains competitive. Market conditions for the rest of this year remain challenging. After the recovery from SARS, the Group has increased its business development activities for new projects from customers in the automotive and telecommunication industries. The directors believe the Group is well positioned to compete effectively arising from our global presence, niche technologies and business/strategic alliances. In order to maintain its competitiveness, the Group will continue to focus on cost efficiencies and to grow through strategic allicances and enhanced technology competencies.

The Group is in the process of finalising the approval from certain customers for projects to be transferred to the respective plants in Mexico and Shanghai. We are in the process of setting up the second manufacturing plant under SDP Manufacturing Sdn Bhd in Johor Bahru, Malaysia. The plant is expected to be in operation in December 2003. Save for any unforeseen events, we are optimistic of the prospects in the next reporting period and the year ahead.


11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on? None
(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? None

(c) Date payable

Not applicable.


(d) Books closure date

Not applicable.




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

No interim dividend has been declared or recommended.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year

Not applicable.


14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments

Not applicable


15. A breakdown of sales

Not applicable.


16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)



	Latest Full Year ()	Previous Full Year ()
Ordinary	0	0
Preference	0	0
Total:	0	0

BY ORDER OF THE BOARD


Soh Hui Ling
Company Secretary
10/11/2003