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

23 February 2001

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

Dear Sirs

FUTUTECH  BERHAD 
UNAUDITED 4th QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER, 2000

CONSOLIDATED INCOME STATEMENT

	Individual Quarter		Cumulative Quarter	
	
Current year quarter	Preceding year corresponding quarter		
Current year
 to date	Preceding year corresponding period	
	31/12/00	31/12/99		31/12/00	31/12/99	
	RM'000	RM'000		RM'000	RM'000	
						
1.	(a)	Turnover	17,979	14,337		51,475	47,067	
						
	(b)	Investment income	-	-		-	-	
						
 	(c)	Other income including interest income	117	155		940	713	
						
2.	(a)	Operating profit before interest on borrowings, depreciation and amortisation, exceptional item, income tax, minority interests and extraordinary items	3,403	2,023		6,812	4,501	
	(b)	Interest on borrowings	(101)	(124)		(409)	(509)	
	(c)	Depreciation and amortisation	(714)	(664)		(2,741)	(2,680)	
	(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	2,588	1,235		3,662	1,312	
	(f)	Share in the results of associated companies	-	-		-	-	
						
	(g)	Profit before taxation, minority interests and extraordinary items	2,588	1,235		3,662	1,312	
	(h)	Taxation	220	343		(1,094)	348	

FUTUTECH BERHAD (formerly known as Ulbon Berhad)
UNAUDITED 4th QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINACIAL PERIOD ENDED 31 DECEMBER,  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	
	31/12/00	31/12/99		31/12/00	31/12/99	
	RM'000	RM'000		RM'000	RM'000	
						
2.	(i)	(i)	Profit after taxation before deducting minority interests	2,808	1,578		2,568	1,660	
		(ii)	Less : Minority interests	(1,442)	(621)		(1,113)	(1,251)	
						
	(j)	Profit after taxation attributable to members of the Company	1,366	957		1,455	409	
						
	(k)	(i)	Extraordinary items	-	-		-	-	
		(ii)	Less : Minority interests	-	-		-	-	
		(iii)	Extraordinary items attributable to members of the Company	-	-		-	-	
						
	(l)	Profit after taxation and extraordinary items attributable to members of the Company	1,366	957		1,455	409	
						
3.	(a)	Losses 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)	6.90	4.83		7.35	2.07	
						
		(ii)	Fully diluted (sen)	NA	NA		NA	NA	
						
4.	(a)	Dividend per share (sen)	3.0	                     8.5		3.0	8.5	
	(b)	Dividend description	Final	Final		Final	Final	

	
As at End of Current Quarter		
As at Preceding Financial Year End	
						
5.	Net tangible assets per share (RM)	1.96		1.83	

Note:	*	Not applicable since this is the first reported First Quarter results.

FUTUTECH BERHAD (formerly known as Ulbon Berhad)
UNAUDITED 4th QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER, 2000

Page 3

CONSOLIDATED BALANCE SHEET
		
As at end of current quarter
31/12/00		As at preceding financial year ended
31/12/99	
		RM'000		RM'000	
					
1.	Fixed assets	22,541		21,384	
2.	Investment in associated companies	-		-	
3.	Long term investments	1,606		1,538	
4.	Intangible assets	6,622		8,365	
5.	Current assets				
	   Stocks	11,667		9,144	
	   Trade debtors	24,456		22,549	
	   Other debtors, deposits and prepayments	8,887		3,302	
	   Short term investments	-		-	
	   Term deposits	1,501		5,875	
	   Cash and bank balances	2,110		964	
		48,621		41,834

6.	Current liabilities				
	   Short term borrowings	8,901		3,752	
	   Trade creditors	7,974		8,417	
	   Other creditors	4,268		3,262	
	   Provision for taxation	191		128	
	   Proposed dividend	594		1,683	
	   Dividend payable	-		-	
 		21,928		17,242	
					
7.	Net current assets	26,693		24,592	
					
		57,462		55,879	
					
8.	Share capital	19,800		19,800	
	Reserves				
	   Share premium	5,200		5,200	
	   Revaluation reserve	-		-	
	   Capital reserve	-		-	
	   Statutory reserve	-		-	
	   Retained profits	19,960		19,099	
	   Others	475		475	
		25,635		24,774	
	Shareholders' funds	45,435		44,574	
					
9.	Minority interests	10,231		9,069	
10.	Long term borrowings	-		955	
11.	Other long term liabilities	1,796		1,281	
					
		57,462		55,879	
					
12.	Net tangible assets per share (RM)	1.96		1.83	

Note:	*	Not applicable since this is the first reported First Quarter results.
Notes

1.	Accounting Policies
The fourth 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 benefit of RM191,000 and a over provision for the current period of RM29,000.

5.	Pre-acquisition Profit
There were no pre-acquisition profits or losses for the current financial period ended 31 December, 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 31 December, 2000.

7.	Quoted Securities 
There was no purchase or disposal of quoted securities for the current financial period ended 31 December 2000.
# Investment in quoted shares as at end of the reporting period:-
- at cost & carrying value:	RM1,475,000
- at market value		RM902,700

Non quoted investment:	 RM131,000

8.	Changes in the Composition of the Group
There were no changes during the current financial period ended 31 December, 2000.

9.	Status  of  Corporate Proposals
There were no corporate proposals announced but not completed as at 19 February, 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 (Proposed Rights 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 (Proposed Advance Group Acquisition);
•	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 (Proposed FSB Acquisition);
•	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 (Proposed Factory Acquisition);
•	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 (Proposed ESOS); 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.

The shareholders of the Company approved the above proposals at an Extraordinary General Meeting held on 19 December, 2000 and the Securities Commission (SC) has approved the Proposed Rights Issue, Proposed Advance Group Acquisition, Proposed FSB Acquisition and the Proposed ESOS as proposed on 29 December 2000.  However, the Proposed Factory Acquisition is approved subject to the revision of the purchase consideration to RM6.2 million as compared to RM8.73 million, and the purchase consideration is to be satisfied entirely by cash.

On 18 January 2001, The Company has agreed with the Vendors of Advance Group to appeal to the SC through its advisor, Commerce International Merchant Bankers Berhad, to revise the issue price of the Company’s ordinary share of RM1.00 each from RM1.60 per share to RM1.40 per share.

Further, on 19 February 2001, the Company has sought the approval of the SC to revise the purchase consideration for the Proposed Factory Acquisition to RM7.5 million as the Vendor is not agreeable with the SC’s approved price of RM6.2 million, a reduction of RM2.53 million.

The above appeals are now pending the approval of the SC.

10.	Seasonal or Cyclical Factors
For the financial period under review, the Group’s business was not adversely 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 31 December, 2000.

12.	Group Borrowings and Debt Securities
The borrowings of the Group as at 31 December 2000 are as follows:-

			As at 31 December, 2000	
			 RM’000	
				
Short term borrowings	- secured		6.396	
	- unsecured		2,505	

				
Lease creditors	- due by the financial year ending 31 Dec. 2000	5	
	- due within two to five years	8	

13.	Contingent Liabilities
As at 19 February 2001, the contingent liabilities of the Company are as follows:-

•	guarantee for bank facilities of the subsidiary companies amounted to RM6.8 million 

14.	Off Balance Sheet Financial Instruments
There were no material financial instruments with off balance sheet risk during the current financial period ended 31 December, 2000.

15.	Material Litigation
As at 19 February, 2001, there was no material litigation involving the Group except for the following:-
•	A former employee has filed a civil action against the Company for wrongful dismissal and the case has been referred to the Industrial Court pending hearing on 1st and 2nd November 2001.  The Company has made a provision of RM100,000 for the aforesaid litigation.

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 
For the financial quarter under review, the Group has achieved a turnover of RM18.0 million which is 50% higher then the preceding quarter.  The main contributor is from the lighting business which recorded a turnover of RM12.2 million.  In tandem with the increased turnover, profit before tax has also improved from RM1.2 million in the preceding quarter to RM2.6 million.

18.	Review of Performance of the Company and its Principal Subsidiaries
Compared to the same period of the previous year, turnover for the steel business increased by about 9% from RM5.3 million to RM5.8 million. As for the lighting business, turnover improved by about 35%, increased from RM9.0 million to RM12.2 million.

Overall, for the financial year ended 31 December 2000, the Group has recorded a turnover of RM51.5 million and a profit before tax of RM3.7 million as compared to the previous year of RM47 million and RM1.3 million respectively.  The better performance for the Group is attributable to the better economic condition during the year and the Government’s continued support for the construction industry.

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 current year, barring unforeseen circumstances to be satisfactory even though the performance may be affected by the anticipated slow down in the economies of the region. 

20.	Dividend
The Board proposed a first and final (tax exempt) dividend of RM0.03 (1999: RM0.085) per share amounting to RM594,000 in respect of the financial year ended 31 December, 2000.  Notice of the Annual General Meeting and Books Closure will be announced at a later date.