3. ASM Pacific Technology Limited Consolidated Profit and Loss Account For the year ended 31 December 1998

4. $‘000 Turnover 1,325,341 ======== Profit from ordinary activities before taxation 121,748 taxation 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 ========

5. ASM Pacific Technology Limited Consolidated Balance Sheet At 31 December 1998

6. 1998 1997 $’000 $’000 Fixed assets 629,274 616,011 Current assets 850,337 949,292 Current liabilities 439,389 468,999 Net current assets 410,948 480,293 1,040,222 1,96,304 ======= ====== Financed by: Share capital 37,516 37,355 Reserves 912,149 893,668 Shareholders funds 949,665 931,023 Obligations under finance leases- - 216 due after one year Band borrowings- due after one year 85,223 165,065 Deferred taxation 5,334 - 1,040,222 1,096,304 ======= =======

7. China Everbright Technology Limited Consolidated Profit and Loss Account For the year ended 31st December 1998

8. 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) ==========

9. Loss per share Basic 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) ==========

10. China Everbright Technology Limited Consolidated Balance Sheet At 31st December 1998

11. 1997 Fixed assets 247,750,256 Interest in associated companies 42,408,800 Current assets 228,857,017 Less: Current liabilities (103,627,292) Net current assets 125,229,725 Long term liabilities (1,741,190) 413,647,591 ========== Representing: Share capital 135,462,552 Reserves 278,185,039 413,647,591 Minority interests - 413,647,591 =========

12. 1998 Fixed assets 235,566,222 Interest in associated companies 44,534,101 Current assets 389,116,454 Less: Current liabilities (234,570,471) Net current assets 154,545,983 Long term liabilities - 434,646,,306 ========== Representing: Share capital 148,622,067 Reserves 280,745,052 429,367,119 Minority interests 5,279,187 434,646,306 =========

13. Return on Capital Profit Profit ________ Capital employed Capital employed X 100% Such a ratio is intended to provide Such a ratio is intended to provide information on the performance of company information 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.

14. Return on Total Assets Trading profit before interest,taxation and extraordinary items Average total assets for the period X 100%

15. Return on Net Total Assets Trading profit before interest, taxation and extraordinary items taxation and extraordinary items Average net total assets for the Average net total assets for the period period X 100%

16. Return on Equity Profit after interest and Profit after interest and preference dividends but preference dividends but before tax and extraordinary items before tax and extraordinary items Average ordinary share capital,reserve Average ordinary share capital,reserve and retained profit for the period and retained profit for the period X 100%

17. show the profitability of the company in show the profitability of the company in terms of capital terms of capital measures the efficiency of management in measures the efficiency of management in using their money using their money used to decide whether they shouldused to decide whether they should continue investing their money continue investing their money

18. Return on Sales & Asset Turnover Net Profit Sales Sales X 100 X 100 This ratio is show the impact of sales. They also indicate possible change in costs and expenses.

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

20. Comparison 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/[(247750256 Assets 850337+616011+ +228857017+23556622+ 949292)/2]*100 389006454)/2]*100 =8.00% =-29.77%

21. Comparison 2 ASM Pacific China Everbright Technology Limited Technology Limited Return on Net 121748/(1040222+ -163942180/(434646306 Total 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%

22. Comparison 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

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

24. 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%)

25. 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%)

26. 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)

27. For the ASM Pacific Technology Limited She 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. Prospect

28. 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

29. 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

30. For the China Everbright Technology Limited As 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.