GENTING BERHAD (Incorporated in Malaysia Under Company No
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GENTING BERHAD (Incorporated in Malaysia under Company No. 7916-A) Wisma Genting, 28 Jalan Sultan Ismail, 50250 Kuala Lumpur. P.O. Box 10937 50930 Kuala Lumpur, Malaysia. Tel: 03-21782288, Fax: 03-21785304 Telex: MA 34150 Website: http://www.genting.com SECOND QUARTERLY REPORT Quarterly report on consolidated results for the second quarter ended 30 June 2008. The figures have not been audited. CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2008 INDIVIDUAL QUARTER CUMULATIVE PERIOD PRECEDING PRECEDING YEAR YEAR CURRENT CORRES- CURRENT CORRES- YEAR PONDING YEAR- PONDING QUARTER QUARTER TO-DATE PERIOD 30/06/2008 30/06/2007 30/06/2008 30/06/2007 RM’000 RM’000 RM’000 RM’000 Continuing operations: Revenue 2,159,206 1,980,808 4,323,518 4,010,444 Cost of sales (1,233,920) (1,197,798) (2,515,741) (2,387,228) Gross profit 925,286 783,010 1,807,777 1,623,216 Other income - net gain on deemed disposal/ dilution of shareholdings 6,966 298,080 31,353 808,771 - others 63,862 92,208 203,996 232,191 Other expenses (173,416) (171,812) (325,907) (346,016) Profit from operations 822,698 1,001,486 1,717,219 2,318,162 Finance cost (68,509) (100,536) (135,873) (194,294) Share of results in jointly controlled entities and associates 16,610 15,427 42,638 (67,863) Gain on dilution of investment in associate - - - 63,210 - 1 - GENTING BERHAD CONDENSED CONSOLIDATED INCOME STATEMENT FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2008 (cont’d) INDIVIDUAL QUARTER CUMULATIVE PERIOD PRECEDING PRECEDING YEAR YEAR CURRENT CORRES- CURRENT CORRES- YEAR PONDING YEAR- PONDING QUARTER QUARTER TO-DATE PERIOD 30/06/2008 30/06/2007 30/06/2008 30/06/2007 RM’000 RM’000 RM’000 RM’000 Profit from ordinary activities before taxation 770,799 916,377 1,623,984 2,119,215 Taxation (218,925) (212,034) (409,188) (439,463) Profit for the period from continuing operations 551,874 704,343 1,214,796 1,679,752 Discontinued operations: Profit/(loss) for the period from discontinued operations - 16,505 - (157,167) Profit for the period 551,874 720,848 1,214,796 1,522,585 Attributable to: Equity holders of the Company 291,042 542,502 730,457 1,199,197 Minority interests 260,832 178,346 484,339 323,388 551,874 720,848 1,214,796 1,522,585 Basic earnings per share (sen) - from continuing operations 7.86 14.24 19.73 36.61 - from discontinued operations - 0.44 - (4.16) 7.86 14.68 19.73 32.45 Diluted earnings per share (sen) - from continuing operations 7.81 14.15 19.62 36.40 - from discontinued operations - 0.43 - (4.14) 7.81 14.58 19.62 32.26 (The Condensed Consolidated Income Statement should be read in conjunction with the audited financial statements for the financial year ended 31 December 2007). - 2 - GENTING BERHAD CONDENSED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2008 AS AT AS AT 30 JUNE 2008 31 DEC 2007 (Unaudited) (Restated) RM’000 RM’000 ASSETS NON-CURRENT ASSETS Property, plant and equipment 9,509,991 8,903,018 Land held for property development 576,893 495,299 Investment properties 24,824 26,099 Plantation development 487,558 469,510 Leasehold land use rights 1,831,296 1,767,864 Intangible assets 4,557,131 4,689,416 Exploration costs 376,258 312,500 Jointly controlled entities 75,505 15,388 Available-for-sale financial asset 957,021 1,505,362 Associates 608,999 575,189 Other long term assets 371,659 396,116 Deferred tax assets 30,462 23,878 19,407,597 19,179,639 CURRENT ASSETS Property development costs 42,698 111,150 Inventories 332,908 311,424 Trade and other receivables 1,188,769 829,555 Amount due from jointly controlled entities and associates 8,365 1,776 Restricted cash 136,583 155,314 Short term investments 2,326,319 1,789,138 Bank balances and deposits 7,344,615 7,800,851 11,380,257 10,999,208 Total Assets 30,787,854 30,178,847 EQUITY AND LIABILITIES Equity attributable to equity holders of the Company Share capital 370,365 370,356 Reserves 12,495,646 11,991,815 Treasury shares (27,150) (7,222) 12,838,861 12,354,949 Minority interests 9,378,780 9,182,307 Total equity 22,217,641 21,537,256 NON-CURRENT LIABILITIES Long term borrowings 4,405,642 4,029,373 Other long term liabilities 147,499 146,551 Deferred tax liabilities 1,482,655 1,545,734 6,035,796 5,721,658 CURRENT LIABILITIES Trade and other payables 1,401,686 1,369,144 Short term borrowings 627,786 1,292,713 Taxation 387,244 258,076 Dividend payable 117,701 - 2,534,417 2,919,933 Total liabilities 8,570,213 8,641,591 TOTAL EQUITY AND LIABILITIES 30,787,854 30,178,847 NET ASSETS PER SHARE (RM) 3.47 3.34 (The Condensed Consolidated Balance Sheet should be read in conjunction with the audited financial statements for the financial year ended 31 December 2007). - 3 - GENTING BERHAD CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2008 Attributable to equity holders of the Company Share Share Revaluation Fair Value Other Retained Treasury Minority Total Capital Premium Reserve Reserve Reserves Earnings Shares Total Interests Equity RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 2008 370,356 1,151,428 305,620 170,279 (142,989) 10,507,477 (7,222) 12,354,949 9,182,307 21,537,256 Foreign exchange differences recognised directly in equity - - - - 8,847 - - 8,847 (16,858) (8,011) Effects arising from changes in composition of the Group recognised directly in equity - - - - (62,608) 178,799 - 116,191 71,991 188,182 Available-for-sale financial asset - effects of shareholding and fair value movements - - - (250,757) - - - (250,757) (265,002) (515,759) Changes in share of associates’ reserves - - 10,858 - - 5,667 - 16,525 - 16,525 Others - - (2,204) - 1,098 1,106 - - - - Net income/(expenses) recognised directly in equity - - 8,654 (250,757) (52,663) 185,572 - (109,194) (209,869) (319,063) Profit for the period - - - - - 730,457 - 730,457 484,339 1,214,796 Total recognised income and expense for the period - - 8,654 (250,757) (52,663) 916,029 - 621,263 274,470 895,733 Effects arising from changes in composition of the Group recognised in the income statement - - - - - - - - 13,465 13,465 Effects of share-based payment - - - - - - - - 887 887 Effects of issue of shares by subsidiaries - - - - - - - - 87,495 87,495 Issue of shares 9 269 - - - - - 278 - 278 Buy-back of shares - - - - - - (19,928) (19,928) (57,519) (77,447) Dividends to minority shareholders - - - - - - - - (122,325) (122,325) Appropriation: Final dividend payable for financial year ended 31 December 2007 - - - - - (117,701) - (117,701) - (117,701) Balance at 30 June 2008 370,365 1,151,697 314,274 (80,478) (195,652) 11,305,805 (27,150) 12,838,861 9,378,780 22,217,641 - 4 - GENTING BERHAD CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2007 Attributable to equity holders of the Company Share Share Revaluation Other Retained Minority Total Capital Premium Reserve Reserves Earnings Total Interests Equity RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 1 January 2007 369,417 1,125,473 307,024 (31,452) 9,524,198 11,294,660 5,372,217 16,666,877 Foreign exchange differences recognised directly in equity - - - (48,752) - (48,752) (27,933) (76,685) Others - - (1,633) (3,635) 1,356 (3,912) (2,575) (6,487) Net income/(expenses) recognised directly in equity - - (1,633) (52,387) 1,356 (52,664) (30,508) (83,172) Profit for the period - - - - 1,199,197 1,199,197 323,388 1,522,585 Total recognised income and expense for the period - - (1,633) (52,387) 1,200,553 1,146,533 292,880 1,439,413 Effects arising from changes in composition of the Group - - - - - - (81,824) (81,824) Effects of share-based payment - - - - - - 419 419 Effects of issue of shares by subsidiaries - - - - - - 1,383,473 1,383,473 Issue of shares 236 6,517 - - - 6,753 - 6,753 Dividend paid to minority shareholders - - - - - - (117,947) (117,947) Appropriation: Final dividend payable for financial year ended 31 December 2006 - - - - (107,939) (107,939) - (107,939) Balance at 30 June 2007 369,653 1,131,990 305,391 (83,839) 10,616,812 12,340,007 6,849,218 19,189,225 (The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited financial statements for the financial year ended 31 December 2007). - 5 - GENTING BERHAD CONDENSED CONSOLIDATED CASH FLOW STATEMENT FOR THE FINANCIAL PERIOD ENDED 30 JUNE 2008 PRECEDING YEAR CURRENT CORRES- YEAR-TO- PONDING DATE PERIOD RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit from ordinary activities before taxation from continuing operations 1,623,984 2,119,215 Adjustments for: Depreciation of property, plant and equipment (“PPE”) 307,213 282,060 Finance cost 135,873 194,294 Net gain on deemed disposal/dilution of shareholdings (31,353) (808,771) Share of results in jointly controlled entities and associates (42,638) 67,863 Interest income (108,665) (136,815) Other non-cash items 18,367 (5,816) 278,797 (407,185) Operating profit before changes in working capital 1,902,781 1,712,030 Net change in current assets (430,723) (167,173) Net change in current liabilities (137,163) (92,835) (567,886) (260,008) Cash generated from operations 1,334,895 1,452,022 Taxation paid (298,216) (244,787) Retirement gratuities paid (9,368) (1,054) Other net operating receipts 15,695 25,997 (291,889) (219,844) NET CASH INFLOW FROM OPERATING ACTIVITIES 1,043,006 1,232,178 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of PPE (829,112) (487,121) Increase in investments and other long term assets (206,018) (1,453,385) Interest received 112,679 136,770 Net proceeds from subsidiary’s disposal of