Quarterly Report 20160331

PENTAMASTER CORPORATION BERHAD (572307-U) ("Company")
QUARTERLY REPORT ON UNAUDITED CONSOLIDATED RESULTS
CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE PERIOD ENDED 31 MARCH 2016
Individual Quarter Cumulative Year

3 Months Ended Financial Period Ended
31/3/2016 31/3/2015 31/3/2016 31/3/2015
RM'000 RM'000 RM'000 RM'000
Revenue 28,599 19,351 28,599 19,351
Cost of goods sold (20,024) (14,761) (20,024) (14,761)
Gross profit 8,575 4,590 8,575 4,590
Other income 324 317 324 317
Administrative expenses (3,936) (2,587) (3,936) (2,587)

Distribution costs (653) (849) (653) (849)
Other expenses (70) (45) (70) (45)
Operating profit 4,240 1,426 4,240 1,426
Finance costs (2) (2) (2) (2)
Profit before taxation 4,238 1,424 4,238 1,424
Taxation (836) (1) (836) (1)
Profit for the period 3,402 1,423 3,402 1,423
Profit attributable to :
Owners of the Parent 3,169 1,751 3,169 1,751
Non-controlling interests 233 (328) 233 (328)
3,402 1,423 3,402 1,423
Profit per share attributable to

owners of the parent (sen) :-
- Basic 2.31 1.31 2.31 1.31
- Diluted N/A N/A N/A N/A
The Condensed Consolidated Income Statement should be read in conjunction with the
Audited Financial Statements for the year ended 31 December 2015.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Individual Quarter Cumulative Year

3 Months Ended Financial Period Ended
31/3/2016 31/3/2015 31/3/2016 31/3/2015
RM'000 RM'000 RM'000 RM'000
Profit for the Period 3,402 1,423 3,402 1,423
Other comprehensive loss:

Translation of foreign operations - (51) - (51)
Other comprehensive loss

net of tax - (51) - (51)
Total comprehensive income 3,402 1,372 3,402 1,372

for the period
Total comprehensive income attributable to:

Owners of the Parent 3,169 1,700 3,169 1,700
Non-controlling interests 233 (328) 233 (328)
3,402 1,372 3,402 1,372
The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2016
Unaudited Audited
As at As at
31/3/2016 31/12/2015
RM'000 RM'000
ASSETS
Non Current Assets
Property, plant and equipment 41,298 42,042
Intangible assets 10,804 10,856
52,102 52,898
Current Assets
Inventories 9,015 6,543
Trade receivables 21,340 15,906
Other receivables, deposits and prepayments 5,722 5,819
Derivative financial assets 600 6
Deposits, cash and bank balances 16,991 15,382
53,668 43,656
TOTAL ASSETS 105,770 96,554
EQUITY AND LIABILITIES

Equity Attributable To Owners of the Parents
Share capital 71,285 68,620
Reserves 10,824 7,410
82,109 76,030
Non-Controlling interest 2,054 1,821
Total Equity 84,163 77,851
Non Current Liabilities

Hire-purchase payables 400 141
Deferred income 1,231 1,131
Deferred tax liabilities 2,585 2,505
4,216 3,777
Current Liabilities
Trade payables 8,223 4,520
Other payables and accrued liabilities 7,663 9,170
Derivative financial liabilities - 199
Short term bank borrowings 175 101
Provision for taxation 1,330 936
17,391 14,926
Total Liabilities 21,607 18,703
TOTAL EQUITY AND LIABILITIES 105,770 96,554
The Condensed Consolidated Statement of Financial Position should be read in conjunction with the
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to Owners of the Parent Non- Total

Non Distributable Distributable controlling Equity
Share Share Exchange Retained Total Interest
Capital Premium Fluctuation Profits
Reserve
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
As at 1 January 2016 68,620 5,545 - 1,865 76,030 1,821 77,851
Transaction with owners:

Issuance of shares at premium 2,665 245 - - 2,910 - 2,910
Total comprehensive income for the

period - - - 3,169 3,169 233 3,402
As at 31 March 2016 71,285 5,790 - 5,034 82,109 2,054 84,163
Attributable to Owners of the Parent Non- Total

Non Distributable Distributable controlling Equity
Share Share Exchange Retained Total Interest
Capital Premium Fluctuation Profits
Reserve
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
As at 1 January 2015 66,622 4,865 59 (10,088) 61,458 1,484 62,942
Total comprehensive income for the

period - - (59) 1,751 1,692 (328) 1,364
Foreign currency translation differences on

foreign operation - - - 8 8 - 8
As at 31 March 2015 66,622 4,865 - (8,329) 63,158 1,156 64,314
The Condensed Consolidated Statement of Changes in Equity should be read in conjunction

with the Audited Financial Statements for the year ended 31 December 2015.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

3 Months 3 Months
ended ended
31/3/2016 31/3/2015
Note RM'000 RM'000
Cash Flows From Operating Activities
Profit before taxation 4,238 1,424

Adjustments for -
Amortisation of intangible assets 273 363
Bad debts written off - 1
Deferred income released (267) (205)
Depreciation 647 635
Interest expense 2 2
Interest income (50) (6)
Inventories written down - 3
Gain on disposal of property, plant and equipment - (71)
Gain from change in fair value of forward foreign
exchange contract (793) (313)
Reversal of write down of inventories (1) -
Unrealised loss on foreign exchange 1,063 55
Operating profit before working capital changes 5,112 1,888
Increase in inventories (2,470) (858)

(Increase)/Decrease in receivables (5,431) 5,986
Increase/(Decrease) in payables 2,228 (4,290)
Cash (used in)/generated from operations (561) 2,726
Grant received 367 -

Interest paid (2) (2)
Tax paid (361) (126)
Net cash (used in)/generated from operating activities (557) 2,598

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

3 Months 3 Months
ended ended
31/3/2016 31/3/2015
Note RM'000 RM'000
Cash Flows From Investing Activities
Interest received 50 6
Proceeds from disposal of property, plant & equipment - 87
Purchase of property, plant & equipment (505) (972)
Purchase of intangible assets (221) (29)
Net cash used in investing activities (676) (908)
Cash Flows From Financing Activities
Proceeds from issuing of share capital 2,910 -

Repayment of finance lease liabilities (68) (32)
Net cash generated from/(used in) financing activities 2,842 (32)
Net Increase In Cash And Cash Equivalents 1,609 1,658

Cash And Cash Equivalents Brought Forward 15,382 8,382
Foreign currency exchange differences on opening balance - (51)
Cash And Cash Equivalents Carried Forward 16,991 9,989
PENTAMASTER CORPORATION BERHAD (572307-U)
(“Company”)
Notes To The Interim Financial Report For Quarter Ended 31 March 2016
1 Basis of Preparation
The interim financial report is unaudited and has been prepared in accordance with
MFRS 134: Interim Financial Reporting issued by the Malaysian Accounting Standards
Board (“MASB”) and paragraph 9.22 of the Listing Requirements of Bursa Malaysia
Securities Berhad (“Bursa Malaysia”). The figures for the cumulative period in the
current quarter to 31 March 2016 have not been audited.
The interim financial statements should be read in conjunction with the audited financial
statements of the Company and its subsidiaries (“Group”) for the year ended 31
December 2015.
The Group has adopted the Malaysian Financial Reporting Standard (MFRS)
framework issued by MASB with effect from 1 January 2012. This MFRS framework
was introduced by the MASB in order to fully converge Malaysia’s existing Financial
Reporting Standards (“FRS”) framework with the International Financial Reporting
Standards (“IFRS”) framework issued by the International Accounting Standards
Board. The transition from the previous FRSs to the new MFRSs has no impact on the
Group financial position, financial performance, cash flows and the notes to the
financial statements.
The Group has also adopted all the new and revised MFRSs and IC Interpretations that
are relevant and effective for accounting periods beginning on or after 1 January 2012.
The adoption of these new and revised MFRSs and IC Interpretations have not resulted
in any material impact on the financial statements of the Group.
2 Audit Report of Preceding Annual Financial Statements
The audit report of the Group’s most recent annual audited financial statements for the
year ended 31 December 2015 was not subject to any qualification.
3 Seasonal and Cyclical Factors
The Group sells its products and services to customers from various sub-sectors of the
semiconductor and manufacturing industries. As such, the Group’s performance will,
to a certain extent, depend on the outlook and cyclical nature of the semiconductor and
manufacturing industries.
4 Unusual Items
There were no unusual items affecting assets, liabilities, equity, net income or cash
flows during the financial period under review.
5 Changes in Estimates
There were no changes in estimates of amounts reported in prior financial years that
have a material effect in the current quarter.
1
(“Company”)
6 Valuations of Property, Plant and Equipment
The carrying values of property, plant and equipment have been brought forward,
without amendment from the previous audited financial statements.
7 Changes in Share Capital and Debt
As at 31 March 2016, the issued and paid up ordinary share capital of the Company was
RM71,285,025.
The movements during the quarter under review were as follows:-
No. of RM
Shares
As at 1 January 2016 137,240,350 68,620,175
Second tranche Private Placement on 29 March 2016 5,329,700 2,664,850
As at 31 March 2016 142,570,050 71,285,025
Other than the above, there were no issuances, cancellations, repurchases and
repayments of debt and equity securities for the period under review.
8 Contingent Liabilities
Company
As at 31/3/2016 As at 31/12/2015
RM'000 RM'000
Corporate guarantee given by the Company for banking
facilities extended by financial institution to subsidiary
companies
- Limit 30,000 18,000
- Amount utilised - -
9 Capital Commitments
The Company had on 19 March 2015 announced that its wholly owned subsidiary,
Pentamaster Technology (M) Sdn Bhd, had on the same day, entered into a sale and
purchase agreement with The Penang Development Corporation (“PDC”) for the
proposed acquisition of a piece of leasehold land for a total cash consideration of
RM5,015,490 out of which a total payment of 40% of the purchase price, which is
equivalent to RM2,006,196 had been paid to PDC up to 31 March 2016.
2
(“Company”)
10 Segmental Information
Results for the period ended 31 March 2016

Automated Smart Control
Automated Manufacturing Solution
Equipment Solution System Adjustment Total
RM'000 RM'000 RM'000 RM'000 RM'000

Revenue
External Revenue 21,349 6,583 458 209 28,599

Inter-segment revenue 1,693 1,429 18 (3,140) -
Total revenue 23,042 8,012 476 (2,931) 28,599
Results
Segment results 4,355 510 (445) (180) 4,240
Finance cost 0 - (2) - (2)
Profit/(Loss) before taxation 4,355 510 (447) (180) 4,238
Taxation (835) (1) - - (836)
Profit/(Loss) after taxation 3,520 509 (447) (180) 3,402
Results for the period ended 31 March 2015

Automated Smart Control
Automated Manufacturing Solution
Equipment Solution System Adjustment Total
RM'000 RM'000 RM'000 RM'000 RM'000

Revenue
External Revenue 7,540 11,811 - - 19,351

Inter-segment revenue 1 50 (51) -
Total revenue 7,541 11,861 (51) 19,351
Results
Segment results (739) 2,389 1 (225) 1,426
Finance cost (2) - - - (2)
Profit/(Loss) before taxation (741) 2,389 1 (225) 1,424
Taxation (1) - - - (1)
Profit/(Loss) after taxation (742) 2,389 1 (225) 1,423
3
(“Company”)
11 Profit Before Tax
Current Quarter Current Year to Date

RM’000 RM’000
Profit before tax is arrived at after
crediting/(charging):
Depreciation and amortisation (790) (790)
Foreign exchange loss (1,356) (1,356)
Gain on derivatives 793 793
Interest income 50 50
Interest expense (2) (2)
Reversal of written down of
Inventories 1 1
12 Events Subsequent to the End of the Period
Other than the material litigation disclosed in Note 24 below, there are no material
events subsequent to the end of the period under review that have not been reflected in
the interim financial statements.
4
(“Company”)
13 Review of Performance
The Group recorded higher revenue at RM28.6 million in the current quarter as
compared to RM19.3 million registered in the corresponding quarter last year. The
higher revenue recorded was mainly due to increase in sales from automated equipment
operating segment and revenue contribution from smart control solution system which
was partially offset by the lower revenue from automated manufacturing solution
operating segment. Due to the higher revenue achieved and better product mix secured,
the Group recorded a higher profit before tax of RM4.2 million in the current quarter as
compared to the pre-tax profit of RM1.4 million in the previous corresponding quarter.
Performance of the respective operating segments for the current quarter as compared
to the previous corresponding quarter is analysed as follows:-
1) Automated equipment
This segment recorded an increase in revenue by RM13.8 million to RM21.3
million as compared to the previous corresponding quarter mainly due to higher
demand for automated equipment from semiconductor market. Consequently, this
segment recorded a higher profit before tax of RM4.4 million against loss before
tax of RM0.7 million in the previous corresponding quarter mainly attributable to
higher revenue recorded coupled with better product mix with higher margin
achieved.
2) Automated manufacturing solution

Revenue from this segment was RM5.2 million lower than the previous
corresponding quarter mainly due to lower demand for the integrated
manufacturing solution from customers in current quarter. As a result, this segment
recorded a lower profit before tax of RM0.5 million as compared to profit before
tax of RM2.4 million in the previous corresponding quarter.
3) Smart control solution system

For the current quarter under review, this segment achieved total revenue of RM0.5
million with the loss before tax of RM0.4 million.
5
(“Company”)
14 Material Changes in the Quarterly Results as Compared with the Preceding

Quarter
For the first quarter ended 31 March 2016, the Group recorded higher revenue at
RM28.6 million as compared to the revenue of RM19.3 million in the preceding quarter.
The higher revenue recorded was mainly due to increase in sales contribution from both
automated equipment operating segment and automated manufacturing solution
operating segment which was partially offset by the lower revenue from smart control
solution system. Due to the higher revenue achieved and better product mix secured,
the Group recorded a higher profit before tax of RM4.2 million in the current quarter as
compared to the pre-tax profit of RM2.4 million in the preceding quarter.
Performance of the respective operating segments for the first quarter ended 31 March
2016 as compared to the preceding quarter is analysed as follows:-
1) Automated equipment
The increase in revenue by RM10.6 million in the current quarter to RM21.3
million as compared to the preceding quarter was mainly due to higher demand for
automated equipment from semiconductor market coupled with the delivery of
projects which were deferred in the preceding quarter. Consequently, this segment
achieved a higher profit before tax of RM4.4 million as compared to RM2.6 million
in preceding quarter mainly attributable to higher revenue recorded.
2) Automated manufacturing solution

Revenue from this segment was RM1.2 million higher than the preceding quarter
mainly due to higher demand for the integrated manufacturing solution from
customers in the current quarter. Due to the increase in revenue and better product
mix secured, this segment recorded a profit before tax of RM0.5 million in the
current quarter as compared to the loss before tax of RM0.9 million in the
preceding quarter.
3) Smart control solution system

Revenue from this segment was RM2.5 million lower than the preceding quarter.
Revenue from this segment is dependent on progress billing based on stage of work
done of projects. As a result of lower revenue achieved, this segment recorded loss
before tax of RM0.4 million as compared to the profit before tax of RM2.2 million
in preceding quarter.
6
(“Company”)
15 Current Year Prospect
Looking ahead and despite the challenging economic climate, we are cautiously
optimistic of the prospect for year 2016. The Group will continue to focus on growth in
its core competencies and product development to broaden its product portfolio to stay
ahead of competition and remain relevant.
16 Profit Forecast or Profit Guarantee
There was no profit forecast or profit guarantee issued by the Group.
17 Taxation
The taxation charge for the current quarter and year to date is as follows –
Current Year to
Current Quarter Date
RM’000 RM’000
Income tax payable (756) (756)
Deferred tax resulting from

the origination and reversal
of temporary differences (80) (80)
(836) (836)
18 Changes in the Composition of the Group
During the quarter, there were no changes in the composition of the Group.
7
(“Company”)
19 Corporate Proposals
The Company had on 9 September 2015 announced that the Company proposes to
undertake a private placement of up to 10% of the issued and paid-up share capital of
Pentamaster, representing 13,324,305 new ordinary shares of RM0.50 each, to
independent third party investor(s) to be identified and at an issue price to be
determined later.
Such proposed private placement has been given approval by Bursa Malaysia Securities
Berhad (“Bursa Securities”) vide its letter dated 7 October 2015 where Bursa Securities
has resolved to approve the listing and quotation of up to 13,324,305 new ordinary
shares of RM0.50 each in Pentamaster. The announcement was made by the Company
on 8 October 2015.
The first tranche of the Proposed Private Placement comprising 3,997,300 Placement
Shares at RM0.67 per placement share was completed on 31 December 2015. The
second and third tranche of the Proposed Private Placement comprising 5,329,700 and
1,997,283 placement shares at RM0.546 and RM0.56 per placement share were
completed on 29 March 2016 and 15 April 2016 respectively.
20 Status of Utilisation of Proceeds
The utilization of the gross proceeds of RM5,588,207 raised from the first and second
tranche of the Private Placement as at the end of the reporting quarter is as follows:-
Gross
Proposed proceeds Actual Intended timeframe for
Purpose Utilisation Received Utilisation Utilisation from completion of Balance
the Proposed Private
RM'000 RM'000 RM'000 Placement RM'000
General working capital 8,094 5,488 2,678 Within one (1) year 2,810
Estimated expenses in relation to
the Proposed Private Placement 100 100 75 Upon completion 25
8,194 5,588 2,753

Note 1
Note 1: The above proposed utilisation was based on the expected gross proceeds raised
which was calculated based on the indicative issue price of RM0.615 per placement
share as announced on 9 September 2015.
8
(“Company”)
21 Borrowings
The Group’s borrowings as at the end of the reporting quarter are as follows:-
RM'000
Short term borrowings (unsecured)
Hire purchase creditor 175
Long term borrowings (unsecured)
Hire purchase creditor 400
Total utilisation 575
All borrowings are denominated in Ringgit Malaysia.
22 Derivative Financial Instruments
As at the date of the statement of financial position 31 March 2016, the Group has the
following outstanding derivative financial instruments:
Contract or Fair value

Notional amount Net gain/(loss)
Derivatives (RM’000) (RM’000) Purpose
Currency forward
contracts:
-Less than 1 year 10,524 600 For hedging currency risk
arising from sales proceeds
in foreign currencies
For the quarter ended 31 March 2016, there have been no significant changes to the
Group’s exposure to credit risk, market risk and liquidity risk from the previous
financial year. Also, there have been no changes to the Group’s risk management
objectives, policies and processes since the previous financial year end. Financial
instruments are viewed as risk management tools by the Group and are not used for
trading or speculative purposes.
9
(“Company”)
23 Disclosure of Realised and Unrealised Profits/Losses
As at 31/3/2016 As at 31/12/2015
(RM'000) (RM'000)
Total Unappropriated profits/accumulated losses of

Pentamaster Corporation Berhad and
its subsidiaries:
- Realised 12,248 (2,730)

- Unrealised (3,321) (620)
8,927 (3,350)
Add: Consolidation adjustment (3,893) 5,215
Unappropriated profits as per financial statements 5,034 1,865
24 Material Litigations
Pentamaster Instrumentation Sdn Bhd (“PUSB”), a subsidiary company of Pentamaster

Corporation Berhad (“PMCB”) had on 27 January 2016 via its solicitors served a writ
of summons in respect of a civil suit against QAV Technologies Sdn Bhd for patent
infringement by using a product and/or a process falling within the scope of protection
of the Patents.
Subsequently, the Company had on 28 March 2016 announced that the High Court of
Malaya at Kuala Lumpur has allowed PUSB’s application to add Elsoft Research
Berhad, AGS Automation (M) Sdn Bhd and Lumileds Malaysia Sdn Bhd respectively
as the 2nd, 3rd and 4th Defendants in the suit.
The suit is not expected to have any operational impact on PMCB Group. Any financial
impact on PMCB Group arising from the suit cannot be determined at this juncture.
10
(“Company”)
25 Dividends
The Board of Directors does not recommend any dividend in respect of the quarter
ended 31 March 2016.
26 Basic Profit Per Share
The calculation of basic profit per share for the period is based on the net profit
attributable to ordinary shareholders for the quarter and the financial period divided by
the weighted average number of ordinary shares in issue during the quarter and the
financial period.
3 Months 3 Months
Ended Ended
31/3/2016 31/3/2015
RM'000 RM'000
Profit attributable to owners of the Parent 3,169 1,751
Weighted average number of ordinary shares of RM0.50 each 137,474,623 133,243,050
Profit per share attributable to owners of the Parent (sen) 2.31 1.31
BY ORDER OF THE BOARD
LIM KIM TECK

Secretary
21 April 2016
11

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PENTAMASTER CORPORATION BERHAD (572307-U) ("Company")

QUARTERLY REPORT ON UNAUDITED CONSOLIDATED RESULTS

CONDENSED CONSOLIDATED INCOME STATEMENT

Individual Quarter Cumulative Year

Revenue 28,599 19,351 28,599 19,351

Cost of goods sold (20,024) (14,761) (20,024) (14,761)

Gross profit 8,575 4,590 8,575 4,590

Other income 324 317 324 317

Administrative expenses (3,936) (2,587) (3,936) (2,587)

Operating profit 4,240 1,426 4,240 1,426

Finance costs (2) (2) (2) (2)

Profit before taxation 4,238 1,424 4,238 1,424

Taxation (836) (1) (836) (1)

Profit for the period 3,402 1,423 3,402 1,423

3,402 1,423 3,402 1,423

Profit per share attributable to

- Diluted N/A N/A N/A N/A

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Individual Quarter Cumulative Year

Profit for the Period 3,402 1,423 3,402 1,423

Other comprehensive loss:

Other comprehensive loss

Total comprehensive income 3,402 1,372 3,402 1,372

Total comprehensive income attributable to:

3,402 1,372 3,402 1,372

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

TOTAL ASSETS 105,770 96,554

EQUITY AND LIABILITIES

Non Current Liabilities

TOTAL EQUITY AND LIABILITIES 105,770 96,554

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to Owners of the Parent Non- Total

As at 1 January 2016 68,620 5,545 - 1,865 76,030 1,821 77,851

Transaction with owners:

Total comprehensive income for the

As at 31 March 2016 71,285 5,790 - 5,034 82,109 2,054 84,163

Attributable to Owners of the Parent Non- Total

As at 1 January 2015 66,622 4,865 59 (10,088) 61,458 1,484 62,942

Total comprehensive income for the

Foreign currency translation differences on

As at 31 March 2015 66,622 4,865 - (8,329) 63,158 1,156 64,314

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Profit before taxation 4,238 1,424

Operating profit before working capital changes 5,112 1,888

Increase in inventories (2,470) (858)

Cash (used in)/generated from operations (561) 2,726

Grant received 367 -

Net cash (used in)/generated from operating activities (557) 2,598

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Net cash used in investing activities (676) (908)

Cash Flows From Financing Activities

Proceeds from issuing of share capital 2,910 -

Net cash generated from/(used in) financing activities 2,842 (32)

Net Increase In Cash And Cash Equivalents 1,609 1,658

2 Audit Report of Preceding Annual Financial Statements

3 Seasonal and Cyclical Factors

6 Valuations of Property, Plant and Equipment

7 Changes in Share Capital and Debt