NSOLIDATED FINANCIAL STATEMENTS Q2/2542

SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY DEFICIT FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1999 1998 1999 1998 Share capital Preference shares Beginning balance 70,000 70,000 70,000 70,000 Increase during period - - - - Decrease during period - - - - Ending balance 70,000 70,000 70,000 70,000 Ordinary shares Beginning balance 230,000 230,000 230,000 230,000 Increase during period - - - - Decrease during period - - - - Ending balance 230,000 230,000 230,000 230,000 Paid-in capital Premium on ordinary share Beginning balance 486,000 486,000 486,000 486,000 Increase during period - - - - Decrease during period - - - - Ending balance 486,000 486,000 486,000 486,000 Surplus on revaluation (Note 10) Beginning balance 929,174 929,174 834,565 834,565 Increase during period - - - - Decrease during period (18,761) - - - Ending balance 910,413 929,174 834,565 834,565 Retained earnings (Deficit) Appropriated - legal reserve Beginning balance 56,163 56,163 48,565 48,565 Increase during period - - - - Decrease during period - - - - Ending balance 56,163 56,163 48,565 48,565 Unappropriated Beginning balance (2,072,877) (1,470,212) (2,065,279) (1,462,614) Increase during period 34,286 - 34,286 - Decrease during period - (445,356) - (445,356) Ending balance (2,038,591) (1,915,568) (2,030,993) (1,907,970) Loss on non-current marketable securities (Note 4) Beginning balance (295,429) (115,946) (295,429) (114,783) Increase during period - (31,702) - (31,702) Decrease during period 182,813 - 182,813 - Ending balance (112,616) (147,648) (112,616) (146,485) Total Shareholders' Equity Deficit (398,631) (291,879) (474,479) (385,325) See notes to financial statements SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY DEFICIT FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1999 1998 1999 1998 Share capital Preference shares Beginning balance 70,000 70,000 70,000 70,000 Increase during period - - - - Decrease during period - - - - Ending balance 70,000 70,000 70,000 70,000 Ordinary shares Beginning balance 230,000 230,000 230,000 230,000 Increase during period - - - - Decrease during period - - - - Ending balance 230,000 230,000 230,000 230,000 Paid-in capital Premium on ordinary share Beginning balance 486,000 486,000 486,000 486,000 Increase during period - - - - Decrease during period - - - - Ending balance 486,000 486,000 486,000 486,000 Surplus on revaluation (Note 10) Beginning balance 929,174 929,174 834,565 834,565 Increase during period - - - - Decrease during period (18,761) - - - Ending balance 910,413 929,174 834,565 834,565 Retained earnings (Deficit) Appropriated - legal reserve Beginning balance 56,163 56,163 48,565 48,565 Increase during period - - - - Decrease during period - - - - Ending balance 56,163 56,163 48,565 48,565 Unappropriated Beginning balance (1,870,569) (2,264,928) (1,862,971) (2,257,330) Increase during period - 349,360 - 349,360 Decrease during period (168,022) - (168,022) - Ending balance (2,038,591) (1,915,568) (2,030,993) (1,907,970) Loss on non-current marketable securities (Note 4) Beginning balance (255,754) (257,799) (254,592) (256,636) Increase during period - - - - Decrease during period 143,138 110,151 141,976 110,151 Ending balance (112,616) (147,648) (112,616) (146,485) Total Shareholders' Equity Deficit (398,631) (291,879) (474,479) (385,325) See notes to financial statements SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF RETAINED EARNINGS (DEFICIT) FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1999 1998 1999 1998 Unappropriated retained earnings (deficit) Balance at the beginning of period (2,072,877) (1,470,212) (2,065,279) (1,462,614) Net income (loss) 34,286 (445,356) 34,286 (445,356) Total Unappropriated Retained Earnings (Deficit) (2,038,591) (1,915,568) (2,030,993) (1,907,970) Appropriated retained earnings Legal reserve 56,163 56,163 48,565 48,565 Total Retained Earnings (Deficit) (1,982,428) (1,859,405) (1,982,428) (1,859,405) See notes to financial statements SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF RETAINED EARNINGS (DEFICIT) FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1999 1998 1999 1998 Unappropriated retained earnings (deficit) Balance at the beginning of period (1,890,899) (2,264,928) (1,883,301) (2,257,330) Adjustment of retained earnings of subsidiary at beginning of period not included in consolidated financial statements 20,330 - 20,330 - Net income (loss) (168,022) 349,360 (168,022) 349,360 Total Unappropriated Retained Earnings (Deficit) (2,038,591) (1,915,568) (2,030,993) (1,907,970) Appropriated retained earnings Legal reserve 56,163 56,163 48,565 48,565 Total Retained Earnings (Deficit) (1,982,428) (1,859,405) (1,982,428) (1,859,405) See notes to financial statements SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1999 1998 1999 1998 CASH FLOWS USED IN OPERATING ACTIVITIES Net income (loss) 34,286 (445,356) 34,286 (445,356) Adjustments to reconcile net income (loss) to net cash used in operating activities Doubtful accounts (24,185) 12,929 (23,262) 9,749 Depreciation and deferred charges written off 26,319 27,549 24,313 23,726 (Gain) loss on sales of temporary investments 92,237 2,296 92,237 2,296 (Gain) loss on sales of fixed assets 1,162 (2,833) 1,496 (721) Companies' share of (profit) loss from its investment in subsidiaries and associated companies and joint ventures (13,272) 3,236 (9,219) 10,584 Net unrealized gain from recovery in market for current - marketable securities (88,581) (14,428) (88,581) (14,428) (Gain) loss on sales of condominiums (821) 17,803 (821) 17,803 Loss on disposal of fixed assets 316 242 316 242 Unrealized (gain) loss on exchange (74,911) 335,163 (70,438) 313,200 Contingent cost (39,052) - (39,052) - Loss on non-current marketable securities 73,398 9,453 73,398 9,453 Gain on sale of damaged goods (479) - - - Changes in operating assets and liabilities (Increase) decrease in operating assets Cash at bank pledged as collaterals (314,518) - (329,070) - Accounts receivable 26,104 33,185 21,962 5,980 Due from related parties (14,634) 18,144 (18,006) 23,712 Retentions receivable (14,936) (43,579) (15,046) (43,493) Inventories 13,265 (9,212) - - Other current assets (3,990) (57,285) (8,300) (56,971) Loans and advances to directors and employees 821 (12,991) 910 (14,075) Other assets (51,893) (4,531) (51,783) (1,993) Increase (decrease) in operating liabilities Accounts payable 4,534 (74,308) 7,640 (32,270) Due to related parties (124) (592) (418) (554) Advance received on contracts (19,433) (83,088) (16,354) (77,805) Other current liabilities 81,817 (89,448) 84,359 (92,368) Other liabilities (478) 43,577 (478) 43,577 Minority interests (1,881) (555) - - Net Cash Used in Operating Activities (308,929) (334,629) (329,911) (319,712) See notes to financial statements (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1999 1998 1999 1998 CASH FLOWS PROVIDED BY INVESTING ACTIVITIES (Increase) decrease in temporary investments 6,051 (2,379) 6,051 (2,353) Decrease in notes receivable - finance institutes 600 496,771 - 496,771 Decrease in short-term loans to related parties 324 - 3,457 - Decrease in investments 80,517 26,091 77,857 26,091 (Increase) decrease in loans to related parties 6,389 176,825 5,932 (17,184) Cash payment on purchase of fixed assets (22,260) (14,950) (21,957) (9,725) Cash from sale of fixed assets 2,075 3,543 1,658 834 (Increase) decrease in condominiums 2,819 (15,263) 2,819 (15,263) Decrease in advance payments on condominium - 29,676 - 29,676 Net Cash Provided by Investing Activities 76,515 700,314 75,817 508,847 CASH FLOW PROVIDED BY (USED IN) FINANCING ACTIVITIES Increase (decrease) in bank overdrafts and loans from financial institutes (9,326) (188,811) 596 (27,941) Increase in short-term loans from directors 6,322 - - - Net Cash Provided by (Used in) Financing Activities (3,004) (188,811) 596 (27,941) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (235,418) 176,874 (253,498) 161,194 CASH AND CASH EQUIVALENTS AS AT BEGINNING OF PERIOD (Notes 4 and 6) 517,477 158,877 509,695 148,225 CASH AND CASH EQUIVALENTS AS AT END OF PERIOD (Notes 4 and 6) 282,059 335,751 256,197 309,419 SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION: Cash paid during the period Interest expense 3,863 180,168 1,828 169,629 Income tax 17,228 30,271 17,070 30,270 See notes to financial statements SINO-THAI ENGINEERING AND CONSTRUCTION PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 1999 AND 1998 (UNAUDITED) (Amounts in thousand Baht) CONSOLIDATED THE COMPANY 1999 1998 1999 1998 CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES Net income (loss) (168,022) 349,360 (168,022) 349,360 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Doubtful accounts (9,902) 12,929 (20,416) 9,749 Depreciation and deferred charges written off 53,310 54,549 49,256 46,700 (Gain) loss on sales of temporary investments 95,085 2,296 95,085 2,296 (Gain) loss on sales of fixed assets (370) (3,965) 333 (976) Companies' share of (profit) loss from its investment in subsidiaries and associated companies and joint ventures (15,974) (24,497) 26,552 (36,390) Net unrealized gain from recovery in market for current - marketable securities (90,633) (35,480) (90,633) (35,480) (Gain) loss on sales of condominiums (512) 17,803 (512) 17,803 Loss on disposal of fixed assets 1,175 886 1,175 886 Loss on devaluation of fixed assets - 40,541 - - Unrealized (gain) loss on exchange 2,151 (474,083) 9,813 (445,292) Contingent cost (40,090) - (40,090) - Loss on non-current marketable securities 74,560 9,909 73,398 9,909 Gain on decline in damaged goods (660) - - - Gain on taking possession (2,330) - - - Changes in operating assets and liabilities (Increase) decrease in operating assets Cash at bank pledged as collaterals (553,848) - (552,981) - Accounts receivable 15,896 500,899 (17,899) 468,540 Due from related parties (8,870) (72,648) (15,348) (68,535) Retentions receivable 11,672 (18,185) 11,721 (18,113) Inventories 57,854 (13,660) - - Other current assets (35,814) (125,882) (42,188) (122,814) Loans and advances to directors and employees (1,914) (1,997) (14) (2,078) Other assets (47,370) 24,403 (49,061) (3,484) Increase (decrease) in operating liabilities Accounts payable (64,566) (37,403) (24,449) (34,168) Due to related parties (789) (9,975) (1,462) (16,458) Advance received on contracts 56,499 (143,674) 56,743 (111,270) Other current liabilities 184,981 (33,268) 176,025 (36,936) Provision for valuation of investment - (31,931) - - Other liabilities 239 8,933 239 43,283 Minority interests 13,950 (26,717) - - Net Cash Provided by (Used in) Operating Activities (474,292) (30,857) (522,735) 16,532 See notes to financial statements (More)