The semiconductor related business remains the major contributor to the Group’s revenue, (66% of the Group’s revenue) while the balance of 34% was contributed by the electronics sticker & label printing, welding electrode and industrial chemical businesses in Malaysia.

For the year under review, revenue rose by 5% to RM78.3 million as compared to the previous financial year ended 31 March 2006 of RM74.3 million. This increase is largely attributed to a 45% increase in revenue from our Singapore subsidiary, CEM Machinery Pte Ltd, which manufactures semiconductor plating equipments. Operationally, the Group continues to achieve an operating profit of RM3.8 million for the financial year ended 31 March 2007.

Despite an overall improvement in revenue, the Group incurred a loss after taxation of RM92.6 million due to impairment of goodwill for our investment in the three Singapore subsidiaries and various provisions for doubtful debts.

The impairment of goodwill of RM87.6 million for our investment in the three Singapore subsidiaries was due to the following:-

i) the shortfall of RM47.8 million in the profit guarantee of RM69.3 million given by the Vendors, MISL     Associates Sdn Bhd for the 3 years ended 31 March 2006; and

ii) in accordance with the new Financial Reporting Standard (FRS) 136 which is applicable from January     2006, goodwill arising from  the acquisition of business is to be tested for impairment annually.