ASM Pacific ASM Pacific Technology LimitedTechnology Limited

Consolidated Profit and Loss Account

For the year ended 31 December 1998

$‘000Turnover 1,325,341 ========Profit from ordinary activities before taxation 121,748taxation 8,761 Profit for the year 112,987 Dividends 99,305 Profit for the Year, retained 13,682 ========Earnings per share - Basic 30.2 cents ========-Diluted 30.1 cents ========

ASM Pacific ASM Pacific Technology LimitedTechnology Limited

Consolidated Balance Sheet

At 31 December 1998

1998 1997 $’000 $’000Fixed assets 629,274 616,011 Current assets 850,337 949,292Current liabilities 439,389 468,999Net current assets 410,948 480,293 1,040,222 1,96,304 ======= ======Financed by: Share capital 37,516 37,355Reserves 912,149 893,668Shareholders funds 949,665 931,023Obligations under finance leases- - 216 due after one yearBand borrowings- due after one year 85,223 165,065Deferred taxation 5,334 - 1,040,222 1,096,304 ======= =======

China Everbright China Everbright Technology LimitedTechnology Limited

Consolidated Profit and Loss Account

For the year ended 31st December 1998

Turnover 579,484,518 ==========Operating (loss)/profit (1,646,431)Exceptional items (167,705,149)

Loss from ordinary activities (169,351,580)Share of profits of associated companies 5,409,400

Loss before taxation (163,942,180) Taxation 3,430,037

Loss after taxation (1667,375,27)Minority interests 9,607,267

Loss for the year (157,764,950) ==========

Loss per shareBasic 11 cents ==========Loss for the year is contributed as follows: By the Company and its subsidiaries (162,129,650)By associated companies 4,364,700 (157,764,950) ==========

China Everbright China Everbright Technology LimitedTechnology Limited

Consolidated Balance Sheet

At 31st December 1998

1997Fixed assets 247,750,256Interest in associated companies 42,408,800Current assets 228,857,017Less: Current liabilities (103,627,292) Net current assets 125,229,725Long term liabilities (1,741,190) 413,647,591 ==========Representing:Share capital 135,462,552Reserves 278,185,039 413,647,591Minority interests - 413,647,591 =========

1998Fixed assets 235,566,222Interest in associated companies 44,534,101Current assets 389,116,454Less: Current liabilities (234,570,471) Net current assets 154,545,983Long term liabilities - 434,646,,306 ==========Representing:Share capital 148,622,067Reserves 280,745,052 429,367,119Minority interests 5,279,187 434,646,306 =========

Return on CapitalReturn on Capital

ProfitProfit ________ Capital employed Capital employed

X X 100%100%

Such a ratio is intended to Such a ratio is intended to provide provide information on the performance of companyinformation on the performance of company by concentrating on the efficiency with which by concentrating on the efficiency with which capital employed has been utilized. capital employed has been utilized.

Return on Total AssetsReturn on Total Assets

Trading profit before Trading profit before interest,taxation and interest,taxation and extraordinary itemsextraordinary items Average total assets for Average total assets for the period the period

XX 100%100%

Return on Net Total AssetsReturn on Net Total Assets

Trading profit before interest, Trading profit before interest, taxation and extraordinary itemstaxation and extraordinary items Average net total assets for the Average net total assets for the periodperiod

X X 100%100%

Return on EquityReturn on Equity

Profit after interest and Profit after interest and preference dividends butpreference dividends but before tax and extraordinary items before tax and extraordinary items Average ordinary share capital,reserveAverage ordinary share capital,reserve and retained profit for the period and retained profit for the period

X 100%X 100%

• show the profitability of the company in show the profitability of the company in terms of capitalterms of capital

• measures the efficiency of management in measures the efficiency of management in using their moneyusing their money •used to decide whether they should used to decide whether they should continue investing their moneycontinue investing their money

Return on Sales & Asset TurnoverReturn on Sales & Asset Turnover

Net ProfitNet Profit Sales Sales

XX 100 100

This ratio is This ratio is show the impact of salesshow the impact of sales. They . They also indicate possible change in costs and also indicate possible change in costs and expenses.expenses.

Current RatioCurrent Ratio

This This compares assets which will become compares assets which will become liquid within approximately 12 months liquid within approximately 12 months with liabilitieswith liabilities which will be due for which will be due for payment in the same period. payment in the same period.

Current assets Current assets Current liabilitiesCurrent liabilities

Comparison 1Comparison 1

ASM Pacific China Everbright Technology Limited Technology Limited

Return on capital 112987/1040222*100 -157764950/434646306 =10.86% *100 =-36.30%

Return on Total 121748/[(629274+ -163942180/[(247750256Assets 850337+616011+ +228857017+23556622+ 949292)/2]*100 389006454)/2]*100 =8.00% =-29.77%

Comparison 2Comparison 2

ASM Pacific China Everbright Technology Limited Technology Limited

Return on Net 121748/(1040222+ -163942180/(434646306Total Assets 1096304)/2 +413647591)/2 =11.40 =-0.69

Return on Equity (121748-99305)/ -163942180/(429367119+ (949665+931023)/2 413647591/2)*100 *100 = -38.89% =2.39%

Comparison 3Comparison 3

ASM Pacific China Everbright Technology Limited Technology Limited

Returns on sales 112987/1325341*100 -157764950/5749484518 =8.53% *100 = -2.74%

Current Ratio 850337/439389 389116454/234570471 =1.94 =1.66

AnalysisAnalysis

From the above data, we found that the performance of the ASM Pacific TechnologyLimited is better than that of the China Everbright Technology Limited. We can observe from the following factors:

1. The Return on Capital Employed ASM Pacific is positive (10.86%) China Everbright is negative (-36.30%)

2. The Return on Total Assets ASM Pacific is higher (8.00%) China Everbright is lower (-29.77%)

3. The return on Net Total Assets ASM Pacific is higher (11.40) China Everbright is lower (-0.69)

4. The Return on Equity ASM Pacific is higher (2.39%) China Everbright is lower (-38.89%)

5. The Return on Sales & Asset turnover ASM Pacific is positive (8.53%) China Everbright is negative (-2.74%)

6. The Current Ratio ASM Pacific is higher (1.94) China Everbright is lower (1.66)

For the ASM Pacific Technology LimitedShe performed quite well in 1998 as she makes a profit during depression. Although she makes just a small amount of return on capital, survival is more important than growth in this period.

ProspectProspect

Methods to do better :

1. Big potential market in China → Exploring the China market

2. Economy of the Asian Countries will be improved →Extending the market share in Asian Countries

3. Developing of the Information Technology → Adapt the changing environment

4. Keen competition → Diversifying their product

5. Increasing the operating expenses → Reduce the operating cost

For the China Everbright Technology LimitedAs we see, the China Everbright Technology Limited suffers loss. To operate it efficiently,the firm needs to minimize its cost and increase the sales. It can minimize the loss by operating different kinds of industries. Also, it is better if the firm can cut down its production and employ better employees.