MEWAH INTERNATIONAL INC. Unaudited ... - Mewah Group

MEWAH INTERNATIONAL INC.(Incorporated in the Cayman Islands. Registration Number: CR-166055)Unaudited Financial Statements For The Second Quarter and Half Year Ended 30 June 20117. NET ASSET VALUE (FOR THE ISSUER AND GROUP) PER ORDINARY SHARE BASED ON THE TOTALNUMBER OF ISSUED SHARES EXCLUDING TREASURY SHARES OF THE ISSUER AT THE END OF THE:-(a) current financial period reported on; and(b) immediately preceding financial year.For computing net asset value per share, the Company’s subdivision of shares and pre-invitation capitalshares were assumed to be issued throughout the relevant periods.GroupCompanyAs atAs at30 Jun 2011 31 Dec 2010 30 Jun 2011 31 Dec 2010Net asset value per ordinary share based onissued share capital as at end of the period (UScents per share)35.44 33.79 12.72 12.208. A REVIEW OF THE PERFORMANCE OF THE GROUP, TO THE EXTENT NECESSARY FOR A REASONABLEUNDERSTANDING OF THE GROUP’S BUSINESS. IT MUST INCLUDE A DISCUSSION OF THE FOLLOWING:-(a) any significant factors that affected the turnover, costs, and earnings of the group for the currentfinancial period reported on, including (where applicable) seasonal or cyclical factors; and(b) any material factors that affected the cash flow, working capital, assets or liabilities of the groupduring the current financial period reported on.Consolidated income statementThe Group’s business consists of two segments namely Bulk segment and Consumer Pack segment.The Bulk segment sources, manufactures and sells edible oils and fats (including specialty fats) in bulk towholesalers and processors for a variety of end uses including applications in the food, pharmaceuticaland oleochemical industries.The Consumer Pack segment manufactures, packs and sells a wide range of edible oils and fats andspecialised bakery and confectionery oils and fats which are sold to end customers in consumer packsunder the Group’s own brands or to customers who then sell the products under their own brands.We measure and track our profitability in terms of Operating Margin (“OM”) per metric tonne (“M.T.”)of sales volume. OM is calculated as revenue, less cost of sales (excluding depreciation), selling anddistribution expenses and foreign exchange gains/(losses). OM relating to inter-segment sales arereported under the segment where the final sales to third parties are made.OM and the related ratios in this document are supplemental measures of our performance and are notrequired by, or presented in accordance with FRS and should not be considered as alternatives to netincome, operating income or any other performance measures derived in accordance with FRS. Othercompanies may calculate OM differently from us, limiting its usefulness as comparative measures.The Group usually experiences stronger demand in sales of its products during the second half of theyear due to the Hindu festival of Deepavali and the Muslim fasting month of Ramadan.12