Vitrox q32013

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

ENDED 30 SEPTEMBER 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 THIRD QUARTER ENDED 30 SEPTEMBER 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
30-Sep-13 30-Sep-12 30-Sep-13 30-Sep-12
Note RM'000 RM'000 RM'000 RM'000
Revenue 36,305 23,823 77,586 55,183
Other operating income 728 1,359 3,894 6,953
Operating expenses (25,226) (20,763) (62,063) (48,351)
Profit before tax B14 11,807 4,419 19,417 13,785
Tax income/(expense) 56 (315) (613) (823)
Profit for the period 11,863 4,104 18,804 12,962
Other comprehensive income:

Currency translation of
differences for the foreign
operation 3 (1) 6 (5)
Other comprehensive income

for the period 3 (1) 6 (5)
Total comprehensive income

for the period 11,866 4,103 18,810 12,957
Earnings Per Ordinary Share

attributable to ordinary equity
holders of the Company (sen)
- Basic 5.13 1.77 8.14 5.60
- 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 statements.
1
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at As at
30-Sep-13 31-Dec-12
RM'000 RM'000
(unaudited) (audited)
ASSETS
Non-current assets
Property, plant and equipment 31,248 30,060
Investment properties 600 600
Investment in club membership - at cost 91 91
Development expenditure 1,910 2,602
33,849 33,353
Current assets
Inventories 37,613 27,972
Trade and other receivables 49,050 39,203
Financial assets at fair value through profit or loss 0 14
Prepayments 2,902 1,079
Current tax assets 197 75
Cash and cash equivalents 38,730 43,915
128,492 112,258
TOTAL ASSETS 162,341 145,611
EQUITY AND LIABILITIES

Capital and reserves attributable to equity
holders of the Company
Share capital 23,250 23,250
Less: Treasury shares, at cost (1,305) (910)
Reserves 105,721 92,113
Total equity 127,666 114,453
Non-current liabilities
Term loan - secured 11,100 11,339
Deferred tax liabilities 635 635
Deferred income on government grant 1,805 781
Total non-current liabilities 13,540 12,755
Current liabilities
Trade and other payables 19,106 16,775
Dividend payable 0 0
Term loan - secured 1,328 1,249
Financial liabilities at fair value through profit or loss 40 0
Advance payment from customers 661 335
Current tax liabilities 0 44
Total current liabilities 21,135 18,403
Total liabilities 34,675 31,158
TOTAL EQUITY AND LIABILITIES 162,341 145,611
Net assets value per share attributable to

ordinary equity holders of the parent (sen) 55.33 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 statements.
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 30 Septem ber 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 18,804 18,804

Currency translation
differences for foreign
operation (representing other
comprehensive income
for the financial period) 0 0 0 6 0 6
for the financial period 0 0 0 6 18,804 18,810
Purchase of ow n shares 0 (395) 0 0 0 (395)

Dividends 0 0 0 0 (5,202) (5,202)
Total transaction w ith ow ners 0 (395) 0 0 (5,202) (5,597)
Balance as at
30 September 2013 23,250 (1,305) 4,663 10 101,048 127,666
Period ended 30 Septem ber 2012

Balance as at 1 January 2012 23,250 (177) 4,663 9 69,271 97,016
Profit for the financial period 0 0 0 0 12,962 12,962

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) 12,962 12,957
Purchase of ow n shares 0 (608) 0 0 0 (608)

Dividends 0 0 0 0 (2,316) (2,316)
Total transaction w ith ow ners 0 (608) 0 0 (2,316) (2,924)
Balance as at
30 September 2012 23,250 (785) 4,663 4 79,917 107,049
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 statements.
3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Period ended Period ended

30-Sep-13 30-Sep-12
CASH FLOW FROM OPERATING ACTIVITIES RM'000 RM'000
Profit before tax 19,417 13,785
Adjustment for:
Amortisation and depreciation 2,060 2,075
Amortisation of deferred income (263) (134)
Gain on disposal of property, plant and equipment 0 (1,914)
Interest expenses 225 202
Interest income (549) (705)
Reversal of impairment loss on loan and receivables (618) (355)
Unrealised loss/(gain) on financial instruments at fair value through
profit or loss 40 (282)
Unrealised loss on foreign exchange 44 1,141
Operating profit before w orking capital changes 20,356 13,813
Change in:
Inventories and receivables (19,678) (15,071)
Payables and advance payments 2,607 10,682
Financial instruments at fair value through profit or loss 14 (41)
Cash generated from operations 3,299 9,383
Tax paid (805) (477)
Tax refunded 26 28
Net cash from operating activities 2,520 8,934
CASH FLOW FROM INVESTING ACTIVITIES

Additions of development expenditure (1) (11)
Grant received 1,129 228
Interest received 563 701
Proceed from disposal of property, plant and equipment 0 2,803
Purchase of property, plant and equipment (2,554) (2,039)
Net cash (used in)/from investing activities (863) 1,682
CASH FLOW FROM FINANCING ACTIVITIES

Dividend paid (5,202) (4,639)
Interest paid (225) (201)
Purchase of ow n shares (395) (608)
Repayment of term loans (940) 0
Term loan raised 0 1,653
Net cash used in financing activities (6,762) (3,795)
Currency translation differences (80) (608)

Net (decrease)/increase in cash and cash equivalents (5,185) 6,213
Cash and cash equivalents at beginning of period 43,915 42,739
Cash and cash equivalents at end of period 38,730 48,952
Cash and cash equivalents consist of:-

Highly liquid investments 12,967 12,616
Term deposits w ith licensed banks 10,600 14,097
Cash and bank balances 15,163 22,239
38,730 48,952
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 statements.
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, shares held as treasury shares and resale of treasury shares for the quarter under review
except for:-
During the current quarter, the Company purchased 384,400 of its issued share capital from open market
for an average price of RM0.76 per share. As at 30 September 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 1,757,200 of its issued share capital from the open market for an average price of RM0.74 per share.
The purchase transactions were funded by the internally generated funds.
A6 Dividend paid
The special dividend of 0.75 sen per share tax exempt amounting to RM1,733,925 and final dividend of
0.50 sen per share tax exempt amounting to RM1,155,950 for the financial year ended 31 December
2012 were paid on 24 July 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.
5
A. NOTES TO THE INTERIM FINANCIAL REPORT (cont’d)
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.
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 30
September 2013 is RM485,000.
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 RM36.31 million for the period under review against RM23.82 million in
the corresponding period of preceding year, representing an increase of 52%. 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 105% against the corresponding period of preceding
year. The increase was mainly due to significant increase in sales recorded for Advanced X-ray
Inspection System.
The Group achieved a profit before tax of RM11.81 million against profit before tax of RM4.42 million in
the corresponding quarter, representing an increase of 167%, mainly due to increase in
revenue .Correspondingly, the Group recorded a profit after tax of RM11.86 million against profit after tax
of RM4.10 million in the corresponding quarter.
B2 Variation of results against immediate preceding quarter

The Group recorded revenue and profit before tax of RM36.31 million and RM11.81 million respectively
for the current quarter under review against revenue and profit before tax of RM28.36 million and RM6.89
million respectively for the immediate preceding quarter. The increase in revenue and profit were
attributed to increase in sales recorded for ABI. Increase in sales recorded for ABI was mainly derived
from positive acceptance of our Advanced X-ray Inspection System. Sales from ABI have recorded an
increase of 98% against the immediate preceding quarter.
B3 Prospects for the final quarter of current final year ending 31 December 2013
In view of the current improved performance and that has 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 final quarter 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 Tax expense/(Income)

Current year corresponding Current year corresponding
quarter quarter period period
30-Sep-13 30-Sep-12 30-Sep-13 30-Sep-12
RM'000 RM'000 RM'000 RM'000
Tax based on the results
for the period under review (56) 315 613 823
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 Tax expense/(Income)(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.
Another wholly-owned subsidiary of VCB, ViE Technologies Sdn.Bhd. (“ViE”) has also been granted
pioneer status by MITI for a period of 5 years to undertake activities relating to design, development and
manufacture of embedded high density electronic modules. The incentive commenced from 1 January
2013 to 31 December 2017.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 ViE.
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
30-Sep-13 31-Dec-12
RM'000 RM'000
Short term borrowings - secured
Foreign currency term loan in USD 1,328 1,249
Long term borrowings - secured

Foreign currency term loan in USD 11,100 11,339
12,428 12,588
B8 Financial instruments
As at 30 September 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 9,097 (40)
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
30-Sep-13 31-Dec-12
RM'000 RM'000
Total retained profits of the Company and its subsidiaries:-

- Realised 108,131 94,895
- Unrealised (551) (1,136)
107,580 93,759
Less : Consolidation adjustments (6,533) (6,313)
Total group retained profits as per consolidated accounts 101,048 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
No dividend was proposed and declared by the Company in current quarter under review.
B12 Earnings per share

30-Sep-13 30-Sep-12 30-Sep-13 30-Sep-12
Net profit attributable to

shareholders (RM'000) 11,863 4,104 18,804 12,962
Weighted average number of

shares in issue ('000) 231,145 231,648 231,145 231,648
Basic earnings per share (sen) 5.13 1.77 8.14 5.60
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 30-Sep-13 30-Sep-12 30-Sep-13 30-Sep-12
at after charging:- RM'000 RM'000 RM'000 RM'000
Amortis ation and depreciation 703 599 2,060 2,075

Interest expenses 77 66 225 202
(Gain)/Loss on financial instruments
at fair value through profit or loss
- realised 68 (227) 65 (294)
- unrealised 40 41 40 41
(Gain)/Loss on foreign exchange
- realised (770) (266) (1,705) (329)
- unrealised 240 1,309 44 1,141
and crediting:-
Amortis ation of deferred income 144 47 263 134
Gain on disposal of
property, plant and equipment 0 0 0 1,914
Grant related to income (139) 775 314 3,519
Insurance claims received 0 0 557 0
Interest income 153 244 549 705
Rental income 5 0 23 0
Reversal of impairment loss on
loans and receivables 64 223 618 355
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 21 Nov 2013.
10

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VITROX CORPORATION BERHAD

INTERIM FINANCIAL REPORT

FOR THE THIRD QUARTER

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Revenue 36,305 23,823 77,586 55,183

Other operating income 728 1,359 3,894 6,953

Operating expenses (25,226) (20,763) (62,063) (48,351)

Profit before tax B14 11,807 4,419 19,417 13,785

Tax income/(expense) 56 (315) (613) (823)

Profit for the period 11,863 4,104 18,804 12,962

Other comprehensive income:

Other comprehensive income

Total comprehensive income

Earnings Per Ordinary Share

EQUITY AND LIABILITIES

TOTAL EQUITY AND LIABILITIES 162,341 145,611

Net assets value per share attributable to

Profit for the financial period 0 0 0 0 18,804 18,804

Purchase of ow n shares 0 (395) 0 0 0 (395)

Period ended 30 Septem ber 2012

Profit for the financial period 0 0 0 0 12,962 12,962

Purchase of ow n shares 0 (608) 0 0 0 (608)

Period ended Period ended

CASH FLOW FROM INVESTING ACTIVITIES

CASH FLOW FROM FINANCING ACTIVITIES

Currency translation differences (80) (608)

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

INDIVIDUAL QUARTER CUMULATIVE QUARTER

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) 5.13 1.77 8.14 5.60

B13 Auditors’ report on preceding annual financial statements

B14 Notes to the statement of comprehensive income

Profit Before Tax

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Amortis ation and depreciation 703 599 2,060 2,075

B15 Authorisation for issue