directors - The Lion Group

(g) On 18 March 2005, LFIB announced that LFIB entered into a conditional agreement with the Pemerintah Kabupaten
Malinau (the Regency Government of Malinau) (“PKM”) to set up a company (“JV Co”) for the proposed development
of 40,000 hectares of oil palm plantation and the construction of two crude palm oil mills in the Malinau Regency,
Kalimantan Timur, Republic of Indonesia with an equity ratio of 95:5 (“Proposed JV”).
The JV Co shall have a total registered and paid-up capital of USD5.0 million (equivalent to approximately
RM19.0 million).
The Proposed JV is subject to the approvals of the relevant authorities in Malaysia and the Republic of Indonesia.
(h) On 21 June 2005, the Company announced that the proposal by AMSB to offer its scheme creditors the opportunity
to tender their debts for cancellation in consideration for shares in Amsteel Corporation Berhad, a related party
and Lion Diversified Holdings Berhad, an associated company, pursuant to the group wide restructuring scheme
(“GWRS”) was completed on 21 June 2005.
Further details of the tender exercise are disclosed in Note 10 to the Financial Statements.
RESULTS OF OPERATIONS
The results of operations of the Group and of the Company for the financial year are as follows:
28
The The
Group Company
RM’000 RM’000
Profit before tax 396,261 2,070
Income tax (expense)/credit (61,035) 4,048
Profit after tax 335,226 6,118
Minority interests (7,661) –
Net profit for the year 327,565 6,118
In the opinion of the Directors, the results of operations of the Group and of the Company during the financial year have
not been substantially affected by any item, transaction or event of a material and unusual nature other than the loss on
disposal of investments for debt settlement as disclosed in the income statements.
DIVIDENDS
A first and final dividend of 1%, less tax, amounting to RM4.9 million in respect of the previous financial year and dealt
with in the previous directors’ report was paid by the Company during the current financial year.
The Directors propose a first and final dividend of 1%, less tax, amounting to RM5.0 million in respect of the current
financial year. This dividend is subject to approval by the shareholders at the forthcoming Annual General Meeting of
the Company and has not been included as a liability in the financial statements.