Quality - UAC Berhad

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Chairman’s StatementTHE BUSINESS ENVIRONMENTFollowing a contraction of 1.5% in 2004, the construction sector of the Malaysian economy continued to registernegative growth ranging from 1.4% to 2.4% in the first three quarters of 2005. This contraction of the sector was feltvery much by the industry with declining demands for building products in the domestic market for the greater partof 2005. In addition to soft market demands in the domestic market, the industry also had to contend with thechallenges of uncertain and at times escalating crude oil prices and higher cost of production. Housing projects in thedomestic market continued to be limited during the year but the silver lining in the midst of a generally depresseddomestic market is the encouraging growth of overseas markets during the year.FINANCIAL PERFORMANCEDespite the many challenges faced, the Group was able to achieve revenue of RM180.10 million. This was down onprevious year by 5.1% with the bulk of the decline coming from Subsidiaries.Group profit before tax of RM40.41 million was down on the previous year by 17.4%. The weaker performance of theGroup's subsidiaries namely UAC Steel Systems Sdn Bhd and UAC Pipes Sdn Bhd was the main set back on the overallperformance of the Group.Net profit after tax and minority interests of RM28.26 million for the year still managed to generate earnings pershare for the year of 38.5 sen (2004: 48.5 sen). This was a satisfactory performance given the challenging businessenvironment of the Group was in.Despite the weaker profit performance this year, the balance sheet of the Group remained healthy with an additionalRM37.38 million cash generated from operating activities (2004: RM29.11 million). Cash and cash equivalents at theend of the financial year increased further to RM168.64 million, up from RM153.95 million a year ago.UCO VistabordYTL Lake Edge, PuchongUCO Supertex PlankKorea16
Chairman’s StatementCOMPANYAt Company level, revenue declined only marginally by 1.0% to RM167.53 million. Demand for building products inthe domestic market was soft but this was partially offset by an encouraging increase in export sales as a result ofintensified efforts to seek higher penetration into overseas markets. Despite a marginal decline in revenue, net profitbefore tax at RM41.88 million (2004: RM50.13 million) was down 16.4% from the preceding year. Selective increasesin selling prices during the year was not sufficient to offset increased costs of production like the cost of importedpulp and medium fuel oil. 2005 did not have the benefit of a boost from a one time write back in 2004 amounting toRM2.40 million in respect of allowance for diminution in the value of investment and the full recovery of a loanacquired previously at a discount.After some delay in the approval process, the Company has started construction of its corporate office building on thecorporate lot at the very successful entertainment, commercial and lifestyle retail hub in Mutiara Damansara. Whencompleted in the 4th quarter of 2007, this office building, to be named Menara UAC, will house the Company'scorporate, marketing and sales operations with the balance of space rented to third party tenants. Depending ontenancy take up rate, this office building could start generating profit and cash flow from the later part of 2008.SUBSIDIARIESS.B. Industries (Sdn) Bhd continued to earn rental income on itspremises in Shah Alam, Selangor Darul Ehsan.UAC Pipes Sdn Bhd registered lower revenue from the sale of polyethylenepipes due mainly to softer demand. It also faced keen price competition inthe face of rising price of polyethylene resins, a by-product of thepetroleum industry. This Subsidiary incurred a loss.UCO Supertex PlankKuala Lumpur Performing Arts Centre, SentulUCO SuperflexAman Sari, Bukit Kuchai17
Page 2 and 3: ContentsNotice of Annual General Me
Page 4 and 5: Notice of Annual General MeetingPro
Page 6 and 7: Corporate DataDIRECTORSJen (B) Tan
Page 10 and 11: Profile of DirectorsJen (B) Tan Sri
Page 12 and 13: Profile of DirectorsDatuk Alladin H
Page 14 and 15: Profile of DirectorsTan Leh KiahAge
Page 18 and 19: Chairman’s StatementIn line with
Page 20 and 21: Chairman’s StatementY. Bhg. Dato'
Page 22 and 23: Penyata PengerusiPERSEKITARAN PERNI
Page 24 and 25: Penyata PengerusiSelaras dengan kel
Page 26 and 27: Penyata PengerusiY. Bhg. Dato' Siew
Page 28 and 29: Corporate Governance StatementThe C
Page 30 and 31: Corporate Governance StatementThe a
Page 32 and 33: Report of The Audit CommitteeThe Bo
Page 34 and 35: Report of The Audit CommitteeMEETIN
Page 36 and 37: Statement on Internal ControlINTROD
Page 38 and 39: Statement on Internal ControlENTERP
Page 41 and 42: Financial StatementsDirectors’ Re
Page 43 and 44: Directors’ ReportFor The Financia
Page 45 and 46: Directors’ ReportFor The Financia
Page 47 and 48: Report of The AuditorsTo The Member
Page 49 and 50: Balance SheetsAs At 31 December 200
Page 51 and 52: Company Statement of Changes in Equ
Page 53 and 54: Company Cash Flow StatementFor The
Page 55 and 56: Notes to The Financial StatementsFo
Page 67:
Notes to The Financial StatementsFo
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Page 82 and 83:
Statements of ShareholdingsAs At 27
Page 84 and 85:
Notes84
Page 86:
fold hereAffixStampHereUAC BERHAD3r
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Quality - UAC Berhad

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