1.	Review of Performance

The Group achieved a higher revenue of RM23.04 million for the current quarter under review, representing an increase of 32% over the previous year’s corresponding quarter of RM17.40 million. The increase in revenue for the current quarter was mainly due to increase in sales volume and higher average selling price.

Correspondingly, the Group recorded profit before tax of RM0.46 million for the current quarter as compared to a loss before tax of RM0.63 million in the corresponding quarter of the previous year. The aforesaid favorable results for the current quarter were mainly due to:

(i)	increase in sales volume

(ii)	higher gross profit margin arising from higher average selling prices and cost saving measures implemented

2.	Variation of Results Against Preceding Quarter

The Group’s recorded higher revenue of RM23.04 million for the current quarter as compared to RM18.54 million in the immediate preceding quarter, representing an increase of 24%.  

In line with the increase in turnover, the Group achieved a profit before tax of RM0.46 million for the current quarter as compared to a profit before tax of RM0.28 million in the preceding quarter, mainly due to the increase in sales volume.

3.	Current Year Prospects

The Directors expect that the Group’s performance would improve as the selling price is expected to move up in tandem with the increased in demand and ongoing measures of enhancing productivity in the current financial year.

4.	Profit Forecast

Not applicable for the current financial year as no profit forecast was published. 

5.	Tax Expense

	Current Quarter 
30 September 2007	Current Year To Date 
30 September 2007	
	RM’000	RM’000	
Tax expense			
Current year tax expense 	45	91	
  Under provision in respect of prior year	-	4	
  Deferred taxation	(22)	(37)	
	23	58	

The Group’s effective tax rate is lower than the prima facie tax rate due to the       availability of the reinvestment allowance claimed by one of its subsidiaries.

6.         Quoted Investments

	As at 30 September 2007	As at 30 September 2006	
	Book 
value	Market
 Value	Book 
value	Market Value	
	RM’000	RM’000	RM’000	RM’000	
Total quoted investments	7	4	4	2	

7.         Status of Corporate Proposals

            There were no corporate proposals announced but not completed as at the date of this report.

8.		Borrowings 

The Group’s short term borrowings as at 30 September 2007 is as follow:
	RM’000	
Bankers’ acceptances – Unsecured	1,375	

9.      Off Balance Sheet Financial Instruments

There were no financial instruments with off balance sheet risks as at the date of this report.

10.	Dividends

No interim dividend has been declared for the current financial period to date.
	.	

 11.    Changes in Material Litigation

No material litigation for the period under review.  

12.	Earnings Per Share

Basic Earnings Per Share
	
Current  Quarter
30/09/2007	Unaudited
Current Year
To Date
30/09/2007	
Net profit attributable to ordinary equity holders of the parent (RM’000)
	
432	
675	
Number of ordinary shares issued (‘000)
	60,021	60,021	
Weighted average number of ordinary shares issued (‘000)
	60,021	60,021	
Basic Earnings Per Share (sen)	0.72	1.12	

Fully Diluted Earnings Per Share

The assumed conversion of the options under the Executive’s Share Option Scheme (ESOS) would be anti-dilutive as the exercise price of the ESOS of the Company is higher than the average market price of the share. Hence the basic and fully diluted earning per share are the same.