homeabout AEIProductsServicesInvestor RelationsContact Us

Investor Relations

Email This Print This Financials

2007 Half Year Financial Statement

Please click here for full report
Please click here for 2006 Full Year Financial Statement

Balance Sheet

Review Of Performance

Revenue

Group revenue for HY2007 decreased 7.8% to $33.25 million, compared with $36.80 million for HY2006. Group revenue decreased as a result of the decrease in customers' orders from both customer segments, namely the Electronics & Precision Engineering and the Construction & Infrastructure.

Revenue from the Electronics & Precision Engineering customer segment decreased by 1.1% to $28.24 million compared to $28.54 million for HY2006. Revenue from the Construction & Infrastructure customer segment decreased by 33.5% to $5.01 million, compared to $7.54 million for HY2006.

Profit

Profit attributable to equity holders for HY2007 decreased by 29.1% to $2.08 million, compared with $2.93 million in HY2006. This is due largely to:

  1. decrease in sales revenue which was attributed to the decrease in orders from both the Electronics & Precision Engineering and the Construction & Infrastructure segment.

  2. consistently higher raw material costs in HY2007, in particular aluminium LME prices which fluctuated within the narrower range of USD2,625 per metric ton to USD2,290 per metric ton (HY2006: between US$2,270 per metric ton and US$3,275 per metric ton). We were not able to pass on the full extent of the increase of raw material cost due to increasing competitive nature of the business and, this has affected our profit margin.

  3. lower finance income arising from lower interest rate received from the fixed deposit.

These were offset by:

  1. decrease in administrative expenses mainly due to:

    1. gain on unrealised foreign exchange arising from the strengthening of USD.

    2. lower provision for performance bonuses.

Balance Sheet and Cashflow

Net current assets

Net current assets increased by $1.44 million mainly due to:

  1. increase in the Group's inventory from $15.54 million to $20.50 million due to increase in raw material inventory and higher raw material price.

  2. the Group has extended a convertible loan of $4.04 million to Hoi Po Metal Manufactory Company Limited as per our announcement dated 20 June 2007.

  3. decrease in the Group's trade payable from $7.18 million to $5.61 million.

  4. decrease in the Group's other payable from $2.44 million to $2.13 million.

These were offset by:

  1. decrease in the Group's trade receivables from $15.25 million to $12.96 million which corresponds with the decrease in total revenue for HY2007

  2. decrease in the Group's cash and bank balances from $17.78 million to $10.16 million.

Commentary On Current Year Prospects

For the Electronics & Precision Engineering segment, pending and change in market conditions, the Group expects a higher level of customer orders in the seasonally stronger second half of the calendar year.

We expect the Construction & Infrastructure segment to continue to face increasing price competition from overseas imports going forward. Continuing price pressure and going fluctuation in LME Aluminium price and energy prices would also continue to have significant impact on the Group's profit margin. Although traditionally, the 2H 2007 is better than the 1H 2007, we expect that the overall performance of FY2007 will not be better than FY2006.

Back to Top