Quality - UAC Berhad

Directors’ ReportFor The Financial Year Ended 31 December 2005The directors have pleasure in submitting their report to the members together with the audited financial statementsof the Group and the Company for the financial year ended 31 December 2005.PRINCIPAL ACTIVITIESThe principal activities of the Company are the manufacture and distribution of fibre cement building products. Theprincipal activities of the subsidiary companies during the financial year are set out in Note 13 to the financialstatements. There were no significant changes in the nature of these activities during the financial year.FINANCIAL RESULTSGroupRM'000CompanyRM'000Profit after taxation 28,190 31,594Minority interests 69 0Net profit for the financial year 28,259 31,594DIVIDENDSDividends declared and paid and payable since 31 December 2004 are as follows:RM'000In respect of the financial year ended 31 December 2004,as shown in the Directors' report of that year:- a final dividend of 12 sen per share less tax at 28% and6 sen per share tax exempt was paid on 29 April 2005 10,749In respect of the financial year ended 31 December 2005:- an interim dividend of 12 sen per share less tax at 28% was paid on 7 November 2005 6,358The Directors now recommend the payment of a final dividend of 12 sen per share less tax at 28% and 6 sen per sharetax exempt in respect of the financial year ended 31 December 2005 which, subject to the approval of members at theforthcoming Annual General Meeting of the Company, will be paid on 28 April 2006 to the shareholders registered onthe Company's Register of Members at the close of business on 14 April 2006.RESERVES AND PROVISIONSAll material transfers to or from reserves or provisions during the financial year are disclosed in the financial statements.ISSUES OF SHARESDuring the financial year, the Company increased its issued and fully paid up share capital from RM73,238,000 toRM73,881,000 as a result of the issuance and allotment of 444,000, 77,000, 81,000 and 41,000 new ordinary shares ofRM1.00 each at an option price of RM3.48, RM3.77, RM4.40 and RM4.37 per share respectively, to eligible employeeswho had exercised their options pursuant to the Employees' Share Option Scheme (“ESOS”).The newly issued shares rank pari passu in all respects with the existing ordinary shares of the Company.42 UAC BERHAD (5149-H) (Incorporated in Malaysia)