Vitrox q12013

VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 649966-K
INTERIM FINANCIAL REPORT
FOR THE FIRST QUARTER

ENDED 31 MARCH 2013
Company No: 649966-K
CONTENTS
Page
Condensed Consolidated Statement of Comprehensive Income………………….. 1
Condensed Consolidated Statement of Financial Position……..………………….. 2
Condensed Consolidated Statement of Changes in Equity...……………………… 3
Condensed Consolidated Statement of Cash Flows…..……………………………. 4
Notes to the Interim Financial Report…………………………………………………. 5-10
Company No : 649966-K
QUARTERLY REPORT ON RESULTS FOR THE FIRST QUARTER ENDED 31 MARCH 2013
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(The figures have not been audited)
INDIVIDUAL QUARTER CUMULATIVE QUARTER

Preceding year Preceding year
Current period corresponding Current period corresponding
quarter quarter to date period
31-Mar-13 31-Mar-12 31-Mar-13 31-Mar-12
Note RM'000 RM'000 RM'000 RM'000
Revenue 12,925 8,632 12,925 8,632
Other operating income 1,242 918 1,242 918
Operating expenses (13,448) (10,445) (13,448) (10,445)
Profit/(Loss) before tax B14 719 (895) 719 (895)
Tax expense (261) (44) (261) (44)
Profit/(Loss) for the period 458 (939) 458 (939)
Other comprehensive income:

Currency translation of
differences for the foreign
operation 1 (5) 1 (5)
Other comprehensive income

for the period 1 (5) 1 (5)
Total comprehensive income

for the period 459 (944) 459 (944)
Earnings Per Ordinary Share

attributable to ordinary equity
holders of the Company (sen)
- Basic 0.20 (0.41) 0.20 (0.41)
- Diluted N/A N/A N/A N/A
The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the audited financial statements
for the year ended 31 December 2012 and the accompanying explanatory notes attached to the interim financial statement.
1
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at
31-Mar-13 31-Dec-12
RM'000 RM'000
(unaudited) (audited)
ASSETS
Non-current assets
Property, plant and equipment 31,077 30,060
Investment properties 600 600
Investment in club membership - at cost 91 91
Development expenditure 2,404 2,602
34,172 33,353
Current assets
Inventories 35,268 27,972
Trade and other receivables 30,913 39,203
Financial assets at fair value through profit or loss 0 14
Prepayments 2,888 1,079
Current tax assets 147 75
Cash and cash equivalents 39,893 43,915
109,109 112,258
TOTAL ASSETS 143,281 145,611
EQUITY AND LIABILTIES

Capital and reserves attributable to equity
holders of the Company
Share capital 23,250 23,250
Less: Treasury shares, at cost (910) (910)
Reserves 90,259 92,113
Total equity 112,599 114,453
Non-current liabilities
Term loan - secured 11,142 11,339
Deferred tax liabilities 635 635
Deferred income on government grant 1,773 781
Total non-current liabilities 13,550 12,755
Current liabilities
Trade and other payables 15,337 16,775
Term loan - secured 1,261 1,249
Advance payment from customers 404 335
Current tax liabilities 130 44
Total current liabilities 17,132 18,403
Total liabilities 30,682 31,158
TOTAL EQUITY AND LIABILITIES 143,281 145,611
Net assets value per share attributable to

ordinary equity holders of the parent (sen) 48.69 49.49
The Condensed Consolidated Statement of Financial Position should be read in conjunction with the audited financial statements for the
year ended 31 December 2012 and the accompanying explanatory notes attached to the interim financial statement.
2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Currency
Share Treasury Share Translation Retained Total
Capital Share Premium Reserve Profits Equity
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Period ended 31 March 2013
Balance as at 1 January 2013 23,250 (910) 4,663 4 87,446 114,453
Profit for the financial period 0 0 0 0 458 458

Currency translation
differences for foreign
operation (representing other
comprehensive income)
for the financial period 0 0 0 1 0 1
for the financial period 0 0 0 1 458 459
Dividends 0 0 0 0 (2,313) (2,313)

Total transaction w ith ow ners 0 0 0 0 (2,313) (2,313)
Balance as at
31 March 2013 23,250 (910) 4,663 5 85,591 112,599
Period ended 31 March 2012

Balance as at 1 January 2012 23,250 (177) 4,663 9 69,271 97,016
Loss for the financial period 0 0 0 0 (939) (939)

Currency translation
differences for foreign
operation (representing other
comprehensive income)
for the financial period 0 0 0 (5) 0 (5)
for the financial period 0 0 0 (5) (939) (944)
Purchase of ow n shares 0 (525) 0 0 0 (525)

Total transaction w ith ow ners 0 (525) 0 0 0 (525)
Balance as at
31 March 2012 23,250 (702) 4,663 4 68,332 95,547
The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited financial statements for the
year ended 31 December 2012 and the accompanying explanatory notes attached to the interim financial statement.
3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Period ended Period ended

31-Mar-13 31-Mar-12
CASH FLOW FROM OPERATING ACTIVITIES RM'000 RM'000
Profit/(Loss) before tax 719 (895)
Adjustment for:
Amortisation and depreciation 654 811
Amortisation of deferred income (47) (42)
Gain on disposal of property, plant and equipment 0 (1)
Interest expenses 75 68
Interest income (199) (232)
Reversal of impairment loss on loan and receivables (458) 0
Unrealised loss on financial instruments at fair value through 0 99
profit or loss
Unrealised loss on foreign exchange 685 498
Operating profit before w orking capital changes 1,429 306
Change in:
Inventories and receivables 657 (888)
Payables and advance payments (1,362) (1,372)
Financial liabilities at fair value through profit or loss (net) 14 (323)
Cash generated from/(absorbed by) operations 738 (2,277)
Tax paid (247) (84)
Net cash from/(used in) operating activities 491 (2,361)
CASH FLOW FROM INVESTING ACTIVITIES

Additions of development expenditure (1) (2)
Interest received 209 242
Proceed from disposal of property, plant and equipment 0 3
Purchase of property, plant and equipment (1,472) (1,105)
Net cash used in investing activities (1,264) (862)
CASH FLOW FROM FINANCING ACTIVITIES

Dividend paid (2,313) (2,323)
Interest paid (75) (66)
Purchase of ow n shares 0 (525)
Repayment of term loans (308) 0
Term loan raised 0 1,135
Net cash used in financing activities (2,696) (1,779)
Currency translation differences (553) (310)

Net decrease in cash and cash equivalents (4,022) (5,312)
Cash and cash equivalents at beginning of period 43,915 42,739
Cash and cash equivalents at end of period 39,893 37,427
Cash and cash equivalents consist of:-

Highly liquid investments 12,800 12,432
Term deposits w ith licensed banks 15,280 17,114
Cash and bank balances 11,813 7,881
39,893 37,427
The Condensed Consolidated Statement of Cash flows should be read in conjunction with the audited financial statements for the year
ended 31 December 2012 and the accompanying explanatory notes attached to the interim financial statement.
4
A. NOTES TO THE INTERIM FINANCIAL REPORT
A1 Basis of preparation of Interim Financial Report

The interim financial report is unaudited and has been prepared in compliance with MFRS 134, “Interim
Financial Reporting”, issued by the Malaysian Accounting Standards Board (“MASB”) and the disclosure
requirements as set out in Appendix 9B of the Listing Requirements of Bursa Malaysia Securities Berhad
for the Main Market (“Main Market Listing Requirement”). This Condensed Report also complies with IAS
34: Interim Financial Reporting issued by the International Accounting Standards Board (“IASB”).
The Interim financial report should be read in conjunction with the audited financial statements for the
year ended 31 December 2012. These explanatory notes attached to the interim financial report provide
an explanation of events and transactions that are significant to an understanding of the changes in the
financial position and performance of the Group since the year ended 31 December 2012.
The accounting policies and methods of computation adopted for the interim financial report are
consistent with those adopted by the Group in the audited financial statements for the year ended 31
December 2012, except for the adoption of new Malaysian Financial Reporting Standards (“MFRS”) that
are effective for financial period beginning on or after 1 January 2013. The adoption of new MFRSs does
not have any significant impacts on the financial statements.
A2 Seasonal or cyclical factors

The Group’s operation is dependent on the cyclical trend of the semiconductors and electronics
industries.
A3 Unusual items affecting assets, liabilities, equity, net income or cash flows
There were no unusual items affecting assets, liabilities, equity, net income or cash flows of the Group for
the period under review.
A4 Material changes in estimates

There were no changes in nature and amount of estimates reported in prior financial years which may
have a material effect in the period under review.
A5 Debts and equity securities

There were no other issuance and repayment of debts and equity securities, share buy-backs, share
cancellations and resale of treasury shares for the quarter under review except for:-
As at 31 March 2013, the total shares purchase are being held as treasury shares in accordance with the
requirement of Section 67A of the Companies Act, 1965 is 1,240,300 of its issued share capital from the
open market for an average price of RM0.73 per share. The purchase transactions were funded by the
internally generated funds.
A6 Dividend paid
An interim dividend of 1 sen per share tax exempt amounting to RM2,312,597 for the financial year
ended 31 December 2012 was paid on 31 January 2013.
A7 Segment reporting
No segment reporting has been prepared as the Group is principally engaged in development and
production of machine vision inspection products.
A8 Valuation of property, plant and equipment

The Group did not revalue any of its property, plant and equipment during the period under review or
prior periods.
A9 Valuation of investment properties

In line with the adoption of the fair value model, the investment properties are stated at fair values which
are assessed on yearly basis.
5
A. NOTES TO THE INTERIM FINANCIAL REPORT (cont’d)
A10 Material events subsequent to the end of the quarter

There were no materials events subsequent to the end of the current reporting period that have not been
reflected in the financial statements for the said period.
A11 Changes in the composition of the Group

There were no material changes in the composition of the Group during the period under review.
A12 Contingent assets or contingent liabilities

There were no contingent assets or liabilities for the Group since the previous financial year ended 31
December 2012 to the date of this report.
A13 Capital commitments

Authorised contracted capital commitments not provided for in the interim financial statements as at 31
March 2013 is RM1,225,000.
A14 Significant related party transactions

There were no significant related party transactions during the period under review.
6
B. DISCLOSURE REQUIREMENTS AS SET OUT IN APPENDIX 9B OF BURSA SECURITIES
MAIN MARKET LISTING REQUIREMENTS
B1 Review of performance
The Group achieved revenue of RM12.93 million for the period under review against RM8.63 million in
the corresponding period of preceding year, representing an increase of 50%. The increase in revenue
against the same quarter last year was mainly due to increase in sales from Automated Board Inspection
(ABI). Sales from ABI have recorded an increase of 114% against the corresponding period of preceding
year. The increase in sales recorded is mainly due to demand from a larger diversified customer base.
The Group achieved a profit before tax of RM0.72 million against loss before tax of RM0.90 million in the
corresponding quarter, attributed mainly due to increase in revenue. Correspondingly, the Group
recorded a profit after tax of RM0.46 million against loss after tax of RM0.94 million in the corresponding
quarter.
B2 Variation of results against immediate preceding quarter

The Group recorded revenue and profit before tax of RM12.93 million and RM0.72 million respectively for
the current quarter under review against revenue and profit before tax of RM33.69 million and RM7.77
million respectively for the immediate preceding quarter. The decrease in revenue and profit were
attributed to decrease in sales recorded for MVS, ABI and ECS as a result of seasonal factors and
sluggish global economic environment caused by prolonged weakness in Europe, Japan and US, and a
slowdown in the Chinese economy. Sales from MVS, ABI and ECS have recorded a decrease of 71%, 58%
and 23% respectively against the immediate preceding quarter.
B3 Prospects for the remaining quarter of current final year ending 31 December 2013
We are seeing improvements in the second quarter and that led us to believe that the demand for our
products will be sustainable for the remaining financial year. We will continue to focus on market
expansion activities, customer relationship building, product innovation and prudent cost management in
the remaining quarters of the year.
B4 Profit forecast, profit guarantee and internal targets

The Group did not provide any profit forecast, profit guarantee and internal targets in any public
document or any announcements made.
B5 Income tax expenses

Current year corresponding Current year corresponding
quarter quarter period period
31-Mar-13 31-Mar-12 31-Mar-13 31-Mar-12
RM'000 RM'000 RM'000 RM'000
Income tax based on the results
for the period under review 261 44 261 44
ViTrox Corporation Berhad (“VCB”) is a MSC status company and enjoys pioneer status/tax exempt
incentive for certain qualifying products granted by the Ministry of International Trade and Industry (“MITI”)
for a period of 5 years of pioneer status from Multimedia Development Corporation Sdn Bhd (‘MDec”)
and MITI. On 22 September 2010, VTSB has been granted another extension 5 years of pioneer status
by MDec and MITI from 25 January 2010 to 25 January 2015.
7
MAIN MARKET LISTING REQUIREMENTS (cont’d)
B5 Income tax expenses (cont’d)

A wholly-owned subsidiary of VCB, ViTrox Technologies Sdn.Bhd. (“VTSB”) has been granted pioneer
status by MITI for a period of 5 years for the development and production of digital automated vision
inspection equipment and modules. The incentive commenced from 1 April 2005 to 31 March 2010
(extendable for further 5 years). The current provision of income tax is in respect of certain non-business
income and non-tax exempted income generated from non-pioneer products of VTSB. On 29 July 2010,
VTSB has been granted another extension 5 years of pioneer status by MITI from 1 April 2010 to 31
March 2015.
B6 Status of corporate proposals announced

There was no corporate proposal announced and not completed as at the date of this report.
B7 Group borrowings
As at As at
31-Mar-13 31-Dec-12
RM'000 RM'000
Short term borrowings - secured
Foreign currency term loan in USD 1,261 1,249
Long term borrowings - secured

Foreign currency term loan in USD 11,142 11,339
12,403 12,588
B8 Financial instruments
As at 31 March 2013, the outstanding forward foreign exchange contracts are as follows:-
Type of derivative Contract value Fair value

RM'000 RM'000
Forward foreign exchange contracts

- Less than 1 year 7,440 0
Foreign currency exchange contract is used as a hedging tool to minimise the Group’s exposure to
changes in fair value of its commitment, conducted in the ordinary course of business, as a result of
fluctuation in exchange rate. There is minimal credit and market risk because the contracts are hedged
with reputable banks.
Foreign currency exchange contract was recognised on the contract date, measured at fair value and the
changes in the fair value have been recognised in profit or loss.
8
B9 Breakdown of realised and unrealised profits or losses of the Group

As at As at
31-Mar-13 31-Dec-12
RM'000 RM'000
Total retained profits of the Company and its subsidiaries:-

- Realised 92,145 94,895
- Unrealised 89 (1,136)
92,234 93,759
Less : Consolidation adjustments (6,643) (6,313)
Total group retained profits as per consolidated accounts 85,591 87,446
B10 Material litigation

As the date of this announcement, the Group is not engaged in any material litigation and the Board of
Directors do not have any knowledge of any proceedings pending or threatened against the Group.
B11 Dividends
On 7 January 2013, the Company declared an interim tax exempt dividend of 1 sen per share amounting
to RM2,312,597 for the financial year ended 31 December 2012 which was paid to all holders of ordinary
share on 31 January 2013 whose names appeared in the Records of Depositors at the close of business
on 21 January 2013.
B12 Earnings per share

31-Mar-13 31-Mar-12 31-Mar-13 31-Mar-12
Net profit attributable to

shareholders (RM'000) 458 (939) 458 (939)
Weighted average number of

shares in issue ('000) 231,260 231,645 231,260 231,645
Basic earnings per share (sen) 0.20 (0.41) 0.20 (0.41)
Diluted earnings per share have not been calculated as the Company does not have any dilutive potential
shares.
B13 Auditors’ report on preceding annual financial statements

The auditors’ report on the financial statements for the year ended 31 December 2012 was not subject to
any qualification.
9
B14 Notes to the statement of comprehensive income
Profit Before Tax

Profit/(Loss) before tax is arrived 31-Mar-13 31-Mar-12 31-Mar-13 31-Mar-12
at after charging:- RM'000 RM'000 RM'000 RM'000
Amortis ation and depreciation 654 811 654 811

Interest expenses 75 68 75 68
(Gain)/Loss on financial instruments
at fair value through profit or loss
- realised 75 (302) 75 (302)
- unrealised 0 99 0 99
(Gain)/Loss on foreign exchange
- realised (924) 413 (924) 413
- unrealised 685 39 685 39
and crediting:-
Amortis ation of deferred income 47 42 47 42
Gain on disposal of
property, plant and equipment 0 1 0 1
Grant related to income 292 562 292 562
Interest income 199 232 199 232
Reversal of impairment loss on
loans and receivables 458 0 458 0
Save as disclosed above, the other items as required under Appendix 9B, Part A (16) of the Bursa
Securities Main Market Listing Requirements are not applicable.
B15 Authorisation for issue

The interim financial statements are authorised for issue by the Board of Directors on 23 May 2013.
10

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VITROX CORPORATION BERHAD

INTERIM FINANCIAL REPORT

FOR THE FIRST QUARTER

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Revenue 12,925 8,632 12,925 8,632

Other operating income 1,242 918 1,242 918

Operating expenses (13,448) (10,445) (13,448) (10,445)

Profit/(Loss) before tax B14 719 (895) 719 (895)

Tax expense (261) (44) (261) (44)

Profit/(Loss) for the period 458 (939) 458 (939)

Other comprehensive income:

Other comprehensive income

Total comprehensive income

Earnings Per Ordinary Share

EQUITY AND LIABILTIES

TOTAL EQUITY AND LIABILITIES 143,281 145,611

Net assets value per share attributable to

Profit for the financial period 0 0 0 0 458 458

Dividends 0 0 0 0 (2,313) (2,313)

Period ended 31 March 2012

Loss for the financial period 0 0 0 0 (939) (939)

Purchase of ow n shares 0 (525) 0 0 0 (525)

Period ended Period ended

CASH FLOW FROM INVESTING ACTIVITIES

CASH FLOW FROM FINANCING ACTIVITIES

Currency translation differences (553) (310)

Cash and cash equivalents consist of:-

A1 Basis of preparation of Interim Financial Report

A2 Seasonal or cyclical factors

A4 Material changes in estimates

A5 Debts and equity securities

A8 Valuation of property, plant and equipment

A9 Valuation of investment properties

A10 Material events subsequent to the end of the quarter

A11 Changes in the composition of the Group

A12 Contingent assets or contingent liabilities

A13 Capital commitments

A14 Significant related party transactions

B2 Variation of results against immediate preceding quarter

B4 Profit forecast, profit guarantee and internal targets

B5 Income tax expenses

INDIVIDUAL QUARTER CUMULATIVE QUARTER

B5 Income tax expenses (cont’d)

B6 Status of corporate proposals announced

Long term borrowings - secured

Type of derivative Contract value Fair value

Forward foreign exchange contracts

B9 Breakdown of realised and unrealised profits or losses of the Group

Total retained profits of the Company and its subsidiaries:-

B10 Material litigation

B12 Earnings per share

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Net profit attributable to

Weighted average number of

Basic earnings per share (sen) 0.20 (0.41) 0.20 (0.41)

B13 Auditors’ report on preceding annual financial statements

B14 Notes to the statement of comprehensive income

Profit Before Tax

INDIVIDUAL QUARTER CUMULATIVE QUARTER