FUTUTECH BERHAD
(formerly known as Ulbon Berhad)
(Company No. : 122592-U)

Date : 28 November, 2000

Listing Department
KUALA LUMPUR STOCK EXCHANGE
9th Floor Exchange Square
Bukit Kewangan
50936 Kuala Lumpur

Dear Sirs

FUTUTECH  BERHAD 
UNAUDITED 3rd QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL PERIOD ENDED 30 SEPTEMBER, 2000

CONSOLIDATED INCOME STATEMENT

	Individual Quarter		Cumulative Quarter	
	
Current year quarter	Preceding year corresponding quarter		
Current year
 to date	Preceding year corresponding period	
	30/9/00	30/9/99		30/9/00	30/9/99	
	RM'000	RM'000		RM'000	RM'000	
						
1.	(a)	Turnover	11,993	14,369		33,496	33,743	
						
	(b)	Investment income	-	-		-	-	
						
 	(c)	Other income including interest income	345	224		805	594	
						
2.	(a)	Operating profit before interest on borrowings, depreciation and amortisation, exceptional item, income tax, minority interests and extraordinary items	1,955	2,323		3,439	2,503	
	(b)	Interest on borrowings	(94)	(127)		(308)	(391)	
	(c)	Depreciation and amortisation	(691)	(651)		(1,939)	(2,018)	
	(d)	Exceptional items	-	-		-	-	
						
	(e)	Operating profit after interest on borrowings, depreciation and amortisation and exceptional items but before income tax, minority interests and extraordinary items	1,170	1,545		1,192	94	
	(f)	Share in the results of associated companies	-	-		-	-	
						
	(g)	Profit before taxation, minority interests and extraordinary items	1,170	1,545		1,192	94	
	(h)	Taxation	(787)	393		(1,314)	(75)	

FUTUTECH BERHAD (formerly known as Ulbon Berhad)
UNAUDITED 3rd QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINACIAL PERIOD ENDED 30 SEPTEMBER,  2000

Page 2

CONSOLIDATED INCOME STATEMENT (Continued)

	Individual Quarter		Cumulative Quarter	
	
Current year quarter	Preceding year corresponding quarter		
Current year 
To date	Preceding year corresponding period	
	30/9/00	30/9/99		30/9/00	30/9/99	
	RM'000	RM'000		RM'000	RM'000	
						
2.	(i)	(i)	Profit/(Loss) after taxation before deducting minority interests	383	1,938		(122)	19	
		(ii)	Less : Minority interests	(92)	(742)		329	(801)	
						
	(j)	Profit/(Loss) after taxation attributable to members of the Company	291	1,196		207	(782)	
						
	(k)	(i)	Extraordinary items	-	-		-	-	
		(ii)	Less : Minority interests	-	-		-	-	
		(iii)	Extraordinary items attributable to members of the Company	-	-		-	-	
						
	(l)	Profit/(Loss) after taxation and extraordinary items attributable to members of the Company	291	1,196		207	(782)	
						
3.	(a)	Profit/(Loss) per share based on 2(j) above after deducting any provision for preference dividends, if any :						
						
		(i)	Basic (based on 19,800,000 ordinary shares – sen)	1.47	6.00		1.05	(3.90)	
						
		(ii)	Fully diluted (sen)	NA	NA		NA	NA	
						
4.	(a)	Dividend per share (sen)	Nil	Nil		Nil	Nil	
	(b)	Dividend description	NA	NA		NA	NA	

	
As at End of Current Quarter		
As at Preceding Financial Year End	
						
5.	Net tangible assets per share (RM)	1.93		1.83	

FUTUTECH BERHAD (formerly known as Ulbon Berhad)
UNAUDITED 3rd QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL PERIOD ENDED 30 SEPTEMBER, 2000

Page 3

CONSOLIDATED BALANCE SHEET
		
As at end of current quarter
30/9/00		As at preceding financial year ended
31/12/99	
		RM'000		RM'000	
					
1.	Fixed assets	21,658		21,384	
2.	Investment in associated companies	-		-	
3.	Long term investments	1,538		1,538	
4.	Intangible assets	6,489		8,365	
5.	Current assets				
	   Stocks	13,846		9,144	
	   Trade debtors	21,395		22,549	
	   Other debtors, deposits and prepayments	10,799		3,302	
	   Short term investments	-		-	
	   Term deposits	1,251		5,875	
	   Cash and bank balances	445		964	
		47,736		41,834

6.	Current liabilities				
	   Short term borrowings	6,637		3,752	
	   Trade creditors	6,055		8,417	
	   Other creditors	3,864		3,262	
	   Provision for taxation	304		128	
	   Proposed dividend	-		1,683	
	   Dividend payable	20		-	
 		16,880		17,242	
					
7.	Net current assets	30,856		24,592	
					
		60,541		55,879	
					
8.	Share capital	19,800		19,800	
	Reserves				
	   Share premium	5,200		5,200	
	   Revaluation reserve	-		-	
	   Capital reserve	-		-	
	   Statutory reserve	-		-	
	   Retained profits	19,306		19,099	
	   Others	475		475	
		24,981		24,774	
	Shareholders' funds	44,781		44,574	
					
9.	Minority interests	8,789		9,069	
10.	Long term borrowings	4,992		955	
11.	Other long term liabilities	1,979		1,281	
					
		60,541		55,879	
					
12.	Net tangible assets per share (RM)	1.93		1.83	

Notes

1.	Accounting Policies
The third quarter financial statements have been prepared using the same accounting policies, method of computation and basis of consolidations as compared with those used in the preparation of the most recent annual financial statements.

2.	Exceptional Item
There was no exceptional item in the quarterly financial statement under review.

3.	Extraordinary Item
There was no extraordinary item in the quarterly financial statement under review.

4.	Taxation
The taxation amount provided includes a deferred tax of RM708,480 and a provision for the current period of RM605,436.

5.	Pre-acquisition Profit
There were no pre-acquisition profits or losses for the current financial period ended 30 September, 2000.

6.	Profit on sale of Investments and/or Properties
There was no sale of investments and/or properties for the current financial period ended 30 September, 2000.

7.	Quoted Securities 
There was no purchase or disposal of quoted securities for the current financial period ended 30 September, 2000.
# Investment in quoted shares as at end of the reporting period:-
- at cost & at carrying value:	RM1,475,000
- at market value:		RM1,392,400

Other non-quoted investment: 	RM63,000

8.	Changes in the Composition of the Group
There were no changes during the current financial period ended 30 September, 2000.

9.	Status  of  Corporate Proposals
There were no corporate proposals announced but not completed as at 23 November, 2000 except for the following:-
•	The proposed Bonus Issue of 6,600,000 new ordinary shares of RM1.00 each (Share) as fully paid-up on the basis of one (1) new Share for every three (3) existing Shares held in the Company;
•	The proposed Rights Issue of 19,800,000 new Shares at an issue price of RM1.00 per Share on the basis of one (1) new Share for every one (1) existing Share held in the Company before the proposed Bonus Issue;
•	The proposed acquisition of the remaining 49.0% interest of the issued and paid-up share capital of the subsidiaries, namely Advance Industries Sdn Bhd, Lighting Louvres Manufacturing Sdn Bhd and Acumen Marketing Sdn Bhd for a total purchase consideration of RM12,800,000;
•	The proposed acquisition of the remaining 49.0% interest of the issued and paid-up share capital of FutuMeds Sdn Bhd (formerly known as Acumen Enterprise Sdn Bhd) for a total purchase consideration of RM2,940,000;
•	The proposed acquisition of a Factory Property situated in Mukim of Puchong, Selangor Darul Ehsan with a land area measuring approximately 7,657 sq, metres and the factory and the office space are 3,590 sq. metres and 750 sq. metres for a purchase consideration of RM8,730,000;
•	The proposed rationalisation of the steel operations of the Company and its subsidiaries;
•	The proposed employees’ share option scheme for eligible employees and Executive Directors of the FutuTech Group; and
•	The proposed increase in the authorised share capital of the Company from RM50,000,000 comprising 50,000,000 Shares to RM100,000,000 comprising 100,000,000 Shares.

10.	Seasonal or Cyclical Factors
For the financial period under review, the Group’s business was not affected by any seasonal or cyclical factors.  

11.	Corporate Developments
There were no issuances and repayment of debts and equity securities, share buy-backs, share cancellations, shares held as treasury shares nor resale of treasury shares during the current financial period ended 30 September, 2000.

12.	Group Borrowings and Debt Securities
The borrowings of the Group as at 30 September, 2000 are as follows:-

			As at 30 September, 2000	
			 RM’000	
				
Short term borrowings	- secured		1,219	
	- unsecured		5,418	
				
Long term borrowings	- secured (US dollars denominated)	4,190
(RM equivalent)	
	- secured (RM)		802	
				
Hire purchase	- due by the financial year ending 31 Dec. 2000	93	
	- due within two to five years	-	

13.	Contingent Liabilities
As at 23 November 2000, the contingent liabilities of the Company are as follows:-

•	guarantee for bank facilities of the subsidiary companies amounted to RM6.2 million 

14.	Off Balance Sheet Financial Instruments
There were no material financial instruments with off balance sheet risk during the current financial period ended 30 September, 2000.

15.	Material Litigation
As at 23 November, 2000, there was no material litigation involving the Group.  However, a civil action pertaining to the dismissal of a former employee has been referred to the Industrial Court for hearing in November, 2001.

16.	Segmental Reporting
There is no segmental reporting as the Group’s activities are carried out primarily in Malaysia and the Group’s operations are substantially in the manufacturing sector only.

17.	Quarterly Financial Results Comparison 
The Group's turnover improved slightly to RM12.0 million from the second quarter of RM11.5 million, an increase of 4.3 per cent.  However, profit before tax improved at a higher rate to RM1.2 million from RM0.2 million.

For the 9-month financial period under review, the Group's turnover was slightly lower, dropped from RM33.7 million to RM33.5 million.  However, the Group managed to turn around its position recording a profit  after tax and minority interest of RM0.2 million as compared to a loss of (RM0.8 million). 

18.	Review of Performance of the Company and its Principal Subsidiaries
For the financial quarter under review, the Company recorded a turnover of RM5.9 million and a profit before tax of RM394,000.  The main contributing factor to a higher profit was a result of lower cost of production.  As for the subsidiaries, they have recorded a turnover of RM6.1 million and a profit before tax and minority interest of RM872,000.  Both the local and export sales have contributed about evenly to the positive results.

The results for the financial quarter under review were not, in the opinion of the directors, substantially affected by any item, transaction or event of a material or unusual nature.

19.	Prospect for the Current Financial Year
The Board expects the Group’s results for the remaining year, barring unforeseen circumstances to be profitable based on the sales contracts in hand.

20.	Dividend
No interim dividend has been recommended for the financial period ending 30 September, 2000.