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

16 May 2001

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

Dear Sirs

FUTUTECH  BERHAD 
UNAUDITED 1st QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL PERIOD ENDED 31 MARCH, 2001

CONSOLIDATED INCOME STATEMENT

	Individual Quarter		Cumulative Quarter	
	
Current year quarter	Preceding year corresponding quarter		
Current year
 to date	Preceding year corresponding period	
	31/3/01	31/3/00		31/3/01	31/3/00	
	RM'000	RM'000		RM'000	RM'000	
						
1.	(a)	Turnover	13,244	10,037		13,244	10,037	
						
	(b)	Investment income	-	-		-	-	
						
 	(c)	Other income including interest income	381	144		381	144	
						
2.	(a)	Operating profit before interest on borrowings, depreciation and amortisation, exceptional item, income tax, minority interests and extraordinary items	1,364	555		1,364	555	
	(b)	Interest on borrowings	(61)	(116)		(61)	(116)	
	(c)	Depreciation and amortisation	(718)	(662)		(718)	(662)	
	(d)	Exceptional items	-	-		-	-	
						
	(e)	Operating profit/(loss) after interest on borrowings, depreciation and amortisation and exceptional items but before income tax, minority interests and extraordinary items	585	(223)		585	(223)	
	(f)	Share in the results of associated companies	-	-		-	-	
						
	(g)	Profit/(loss) before taxation, minority interests and extraordinary items	585	(223)		585	(223)	
	(h)	Taxation	(230)	(281)		(230)	(281)	

FUTUTECH BERHAD (formerly known as Ulbon Berhad)
UNAUDITED 1st QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINACIAL PERIOD ENDED 31 MARCH, 2001

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	
	31/3/01	31/3/00		31/3/01	31/3/00	
	RM'000	RM'000		RM'000	RM'000	
						
2.	(i)	(i)	Profit/(loss) after taxation before deducting minority interests	355	(504)		355	(504)	
		(ii)	Less : Minority interests	(65)	329		(65)	329	
						
	(j)	Profit/(loss) after taxation attributable to members of the Company	290	(175)		290	(175)	
						
	(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	290	(175)		290	(175)	
						
3.	(a)	Earnings/(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)	1.46	(0.88)		1.46	(0.88)	
						
		(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)	1.63		1.59	

FUTUTECH BERHAD (formerly known as Ulbon Berhad)
UNAUDITED 1st QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL PERIOD ENDED 31 MARCH, 2001

Page 3

CONSOLIDATED BALANCE SHEET
		
As at end of current quarter
31/3/01		As at preceding financial year ended
31/12/00	
		RM'000		RM'000	
					
1.	Fixed assets	26,361		23,076	
2.	Investment in associated companies	-		-	
3.	Long term investments	1,626		1,606	
4.	Intangible assets	13,592		14,040	
5.	Current assets				
	   Stocks	12,148		11,673	
	   Trade debtors	21,409		24,211	
	   Other debtors, deposits and prepayments	1,887		1,071	
	   Short term investments	-		-	
	   Term deposits	3,200		1,500	
	   Cash and bank balances	1,407		2,159	
		40,051		40,614	
					
6.	Current liabilities				
	   Short term borrowings	9,194		8,474	
	   Trade creditors	7,854		7,664	
	   Other creditors	4,010		4,172	
	   Provision for taxation	262		103	
	   Proposed dividend	-		594	
					
 		21,320		21,007	
					
7.	Net current assets	18,731		19,607	
					
		60,310		58,329	
					
8.	Share capital	19,800		19,800	
	Reserves				
	   Share premium	5,200		5,200	
	   Revaluation reserve	-		-	
	   Capital reserve	-		-	
	   Statutory reserve	-		-	
	   Retained profits	20,407		20,117	
	   Others	475		475	
		26,082		25,792	
	Shareholders' funds	45,882		45,592	
					
9.	Minority interests	10,213		10,149	
10.	Long term borrowings	2,340		650	
11.	Other long term liabilities	1,875		1,938	
					
		60,310		58,329	
					
12.	Net tangible assets per share (RM)	1.63		1.59	

Notes

1.	Accounting Policies
The first 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 RM62,000 and a provision for the current period of RM292,000.

5.	Pre-acquisition Profit
There were no pre-acquisition profits or losses for the current financial period ended 31 March, 2001.

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 March, 2001.

7.	Quoted Securities 
There was no purchase or disposal of quoted securities for the current financial period ended 31 March, 2001 
# Investment in quoted shares as at end of the reporting period:-
- at cost:			 	 RM1,475,000
- at market value/ carrying value:	 RM725,700

Non quoted investment: 		RM150,800

8.	Changes in the Composition of the Group
There were no changes during the current financial period ended 31 March, 2001.

9.	Status  of  Corporate Proposals
There were no corporate proposals announced but not completed as at 15 May, 2001 except for the following:-
•	The Rights Issue of 19,800,000 new ordinary shares of RM1.00 each (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 Bonus issue (Rights Issue);
•	The 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 (Advance Group Acquisition);
•	The 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 (FSB Acquisition);
•	The 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 totaling 3,590 sq. metres and 750 sq. metres respectively for a revised purchase consideration of RM7,500,000 (Factory Acquisition); and
•	The rationalisation of the steel operations of the Company and its subsidiaries;
•	The employees’ share option scheme for eligible employees and Executive Directors of the FutuTech Group (ESOS).

The shareholders of the Company approved the above proposals at an Extraordinary General Meeting held on 19 December, 2000 and the Securities Commission (SC) approved the Rights Issue, Advance Group Acquisition, and the ESOS as proposed on 29 December 2000.  

Further, the SC has approved the revised purchase consideration of the Factory Acquisition of RM7,500,000 with a condition that only RM6,000,000 of the Rights proceeds can be utilized to satisfy the revised purchase consideration with the remaining RM1,500,000 to be satisfied with internally generated fund and/or bank borrowings.

Further, the SC and the shareholders have also approved the revised issue price of the Company’s ordinary share of RM1.00 each from RM1.60 per share to RM1.40 per share for the Advance Group Acquisition on 27 February 2001 and 9 May 2001 respectively.  As a result, the RM12,800,000 purchase consideration will now be satisfied with the issuance of 9,142,857 Shares as compared to 8,000,000 Shares.

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 March, 2001 except for the following:-

•	the 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 which were listed and quoted on 11 April 2001 as FUTUTEC-OA as these shares are not entitled to the declared dividend of 3% tax exempt for the financial year ended 31 December 2000.

12.	Group Borrowings and Debt Securities
The borrowings of the Group as at 31 March 2001 are as follows:-

			As at 31 March, 2001	
			 RM’000	
				
Short term borrowings	- secured		495	
	  and US dollars denominated loan	4,190 
 (RM equivalent)	
	- unsecured		4,509	
				
Long term borrowings	- unsecured	2,096	
				
Lease and Hire Purchase creditors	- due within twelve months	173	
	- due within two to five years	244	

13.	Contingent Liabilities
As at 15 May 2001, the contingent liabilities of the Company are as follows:-
•	guarantee for bank facilities of the subsidiary companies amounted to RM7.1 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 March, 2001.

15.	Material Litigation
As at 15 May, 2001, there was no material litigation involving the Group except 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 further provision of RM150,000 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 
The Group’s turnover for the financial quarter under review dropped by about 27% to RM13.2 million from RM18 million recorded for the 4th quarter ended 31 December 2000.  This drop is a result of the reduced turnover recorded by the lighting business.  In tandem with the lower turnover, the Group also recorded a lower profit of RM0.6 million as compared to the preceding 4th quarter of RM2.6 million.

18.	Review of Performance of the Company and its Principal Subsidiaries
For the financial quarter under review, the steel business achieved a turnover of RM6.5 million, improved slightly by about 3% from the previous correspondent quarter.  Profit before tax was higher due partially to the increase in other income as a result of insurance claims for spoilt goods.  As for the subsidiaries, they have recorded a turnover of RM6.7 million and a profit before tax and minority interest of RM88,000 as compared to a turnover of RM3.7 million and a loss of RM621,500 of the previous corresponding quarter. 

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 as sales orders continue to build up.

20.	Variance of Actual Profit from Forecast Profit and Shortfall on Profit Guarantee
There is no profit forecast for the period.

21.	Dividend
No interim dividend has been recommended for the financial period ended 31 March, 2001.