PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME AND RETAINED EARNINGS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, "UNAUDITED" CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 Notes Baht Baht Baht Baht REVENUES Sales 2,075,230,748 2,804,710,763 2,071,599,255 2,805,675,434 Other income Interest income 4,833,354 22,079,402 2,726,369 65,166,707 Gain on exchange rate 6,065,805 148,169,295 5,724,271 148,169,295 Amount to be adjusted for provision for guarantee of a subsidiary, previously estimated 1,151,000 - 22,315,677 - Equity in undistributed net income of subsidiary and associated companies - 20,691 6,489,297 10,441,219 Other 659,611 10,595,956 669,121 10,595,955 Total Revenues 2,087,940,518 2,985,576,107 2,109,523,990 3,040,048,610 EXPENSES Cost of sales 1,679,351,039 2,141,377,364 1,677,285,036 2,135,489,653 Selling and administrative expenses 132,582,091 203,443,156 136,177,228 210,176,242 Residue pond written off 3.2 10,510,423 - 10,510,423 - Depreciation of residue ponds 3.2 7,007,131 - 7,007,131 - Interest expense 158,972,680 216,438,649 164,140,510 224,933,672 Directors' remuneration 836,796 676,000 836,796 676,000 Other expenses 2,148,416 3,479,775 2,148,416 3,479,775 Total Expenses 1,991,408,576 2,565,414,944 1,998,105,540 2,574,755,342 Net income before minority interest and the result of operations of a subsidiary which ceased its operations 96,531,942 420,161,163 111,418,450 465,293,268 Minority interest in net income of a subsidiary company 511,830 576,641 - - Net income before the result of operations of a subsidiary which ceased its operations 97,043,772 420,737,804 111,418,450 465,293,268 Net income (loss) of a subsidiary which ceased its operations 18 (21,830,922) 44,555,464 - - NET INCOME (LOSS) 75,212,850 465,293,268 111,418,450 465,293,268 PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME AND RETAINED EARNINGS (CONTINUED) FOR THE SIX-MONTH PERIOD ENDED JUNE 30, "UNAUDITED" CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 Notes Baht Baht Baht Baht NET INCOME (LOSS) 75,212,850 465,293,268 111,418,450 465,293,268 RETAINED EARNINGS (DEFICIT) BROUGHT FORWARD (3,222,202,601) (2,907,698,333) (3,210,798,168) (2,907,698,333) RETAINED EARNINGS (DEFICIT) CARRIED FORWARD (3,146,989,751) (2,442,405,065) (3,099,379,718) (2,442,405,065) EARNINGS (LOSS) FOR THE SIX-MONTH PERIOD PER SHARE 0.50 3.22 0.74 3.22 See notes to the interim financial statements The interim financial statements have been subjected to a review PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE QUARTER ENDED JUNE 30, "UNAUDITED" CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 Baht Baht Baht Baht CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) 78,547,284 (177,759,488) 89,975,398 (177,759,488) Items to reconcile net income (loss) to net cash: Equity in undistributed net income of associated companies - (5,838) - - Equity in undistributed net loss (income) of subsidiary and associated companies - - (2,124,450) 132,546,434 Provision for obsolete inventories 413,342 (2,756) 413,342 (2,756) Depreciation 83,601,539 100,756,408 83,453,963 82,140,041 Deferred charges written off 3,616,820 - 3,616,820 - Property, plant and equipment written off 17,517,555 - 17,517,555 - Other assets written off - 7,179,929 - 5,897,543 Deferred interest on hire purchase written off 408,307 - 408,307 - Provision for doubtful debts-trade accounts receivable (Reversal) (11,589,626) 9,710,789 (11,402,557) 29,358,465 Loss (gain) on disposal of property, plant and equipment 226,929 (80,458) 226,929 (80,458) Loss (gain) on exchange rate (37,167,761) 24,088,509 (34,396,200) (35,491,473) Loss from diminution in value of asset - 61,998,500 - - Minority interest in net (loss) (51,123) (242,479) - - Income (loss) from operations before changes in operating assets and liabilities 135,523,266 25,643,116 147,689,107 36,608,308 Operating assets (increase) decrease Trade accounts receivable 41,410,952 61,186,209 41,291,021 (36,624,247) Short-term loans and advances to related companies 238,600 19,234 78,600 (74,696) Inventories (26,675,674) 170,758,757 (33,572,256) 106,224,494 Withholding tax (73,599) (46,430) (29,908) (103,072) Accounts receivable-Revenue Department (6,367,393) 1,902,785 (6,321,659) 3,202,112 Other receivables 2,192,902 645,683 1,636,732 (7,882,546) Deposits for purchase of goods - 80,936,350 - 80,936,350 Other current assets (13,133,608) (3,102,037) (14,476,399) 1,588,929 Operating liabilities increase (decrease) Trade accounts and notes payable 13,252,355 (35,966,531) 13,835,399 (17,390,881) Short-term loans and advances from directors and employees - 12,926 - 12,926 Accrued interest expenses 157,444 (631,978) (1,767,511) (3,285,337) Accrued electricity expenses (10,514,037) 7,327,982 (10,514,037) 6,813,391 Forward contract payable (9,654,964) - (9,654,964) - PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE QUARTER ENDED JUNE 30, "UNAUDITED" CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 Baht Baht Baht Baht Provision for guarantee of a subsidiary - - (27,643,000) - Other current liabilities (6,864,606) (10,862,517) (7,187,289) (133,664) Net cash provided by (used in) operating activities 119,491,638 297,823,549 93,363,836 169,892,067 CASH FLOWS FROM INVESTING ACTIVITIES Investment in related companies and other companies (increase) decrease 1,018,200 - 1,018,200 (115,656,401) Loans to related companies (increase) decrease - - - 55,696,200 Cash paid for purchase of property, plant and equipment (18,562,453) (78,965,415) (18,453,719) (17,872,367) Cash received from sales of property, plant and equipment - 851,693 - 851,693 Other assets (increase) decrease (15,609,931) 32,185,916 (16,191,392) (515,987) Net cash provided by (used in) investing activities (33,154,184) (45,927,806) (33,626,911) (77,496,862) CASH FLOWS FROM FINANCING ACTIVITIES Bank overdrafts and loans from financial institutions increase (decrease) 151,957,259 (103,702,113) 151,439,251 34,205,118 Loans from related companies 4,317,073 10,596,685 4,800,000 6,600,000 Short-term loans and advance from directors and employees (9,577,476) - - - Long-term loans increase (decrease) (16,489,598) (28,298,009) - - Net cash provided by (used in) financing activities 130,207,258 (121,403,437) 156,239,251 40,805,118 Effects from exchange rate in cash and cash equivalents increase (decrease) (137,416) - (133,228) - Net increase in cash and cash equivalents 216,407,296 130,492,306 215,842,948 133,200,323 Cash and cash equivalents as at April 1 82,494,169 361,311,943 20,155,763 301,155,369 Cash and cash equivalents as at June 30 Baht 298,901,465 491,804,249 235,998,711 434,355,692 See notes to the interim financial statements The interim financial statements have been subjected to a review PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, "UNAUDITED" CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 Baht Baht Baht Baht CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) 75,212,850 465,293,268 111,418,450 465,293,268 Items to reconcile net income (loss) to net cash: Equity in undistributed net income of associated companies - (20,691) - - Equity in undistributed net loss (income) of subsidiary and associated companies - (6,489,296) (10,441,219) Provision for obsolete inventories 403,600 (50,198) 403,600 (50,198) Depreciation 166,997,252 195,942,791 166,724,893 163,470,495 Deferred charges written off 7,418,007 15,473,072 7,418,007 11,795,088 Amount to be adjusted for provision for guarantee of a subsidiary, previously estimated (1,151,000) - (22,315,677) - Property, plant and equipment written off 17,517,555 - 17,517,555 - Other assets written off 340,577 10,193,801 - 10,193,801 Premium on forward contract written off 7,513,844 - 7,513,844 - Deferred interest on hire purchase written off 408,307 - 408,307 - Provision for doubtful debts-Trade accounts receivable (Reversal) (17,433,636) 20,688,351 (17,025,962) 54,714,050 Provision for doubtful debts-Loans and advance to related companies (Reversal) (200,000) - - - Accrued fee received written off 4,982,076 - 4,982,076 - Loss (gain) on disposal of property, plant and equipment 105,718 (876,432) 226,929 (629,161) Loss (gain) on exchange rate (5,382,738) 28,591,514 (5,724,272) 107,056,426 Loss from diminution in value of asset - 61,998,500 - - Minority interest in net (loss) (511,831) (576,640) - - Income (loss) from operations before changes in operating assets and liabilities 256,220,581 796,657,336 265,058,454 801,402,550 Operating assets (increase) decrease Deposits at financial institutions used as collateral - 97,000,000 - 50,000,000 Trade accounts receivable (3,070,511) 12,789,176 (30,677,249) (12,015,115) Short-term loans and advances to related companies 275,858 17,219 (319,592) 544,579 Inventories 84,062,372 750,621,552 58,887,610 566,093,492 Withholding tax (101,051) (205,207) (41,940) (139,499) Accounts receivable-Revenue Department 376,819 2,925,785 363,931 809,960 Other receivables 12,387,014 34,578,362 11,688,122 27,259,796 Other current assets (31,373,399) (22,268,464) (33,498,465) (20,248,095) PADAENG INDUSTRY PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE SIX-MONTH PERIOD ENDED JUNE 30, "UNAUDITED" CONSOLIDATED THE COMPANY ONLY 1999 1998 1999 1998 Baht Baht Baht Baht Operating liabilities increase (decrease) Trade accounts and notes payable 17,097,574 (66,354,833) 18,243,905 (19,011,103) Deposits from export sales - (570,672,000) - (570,672,000) Accrued interest expenses 1,149,953 8,526,071 (2,741,521) (64,784,490) Accrued electricity expenses (12,874,292) 59,263,530 (12,874,292) 58,748,939 Forward contract payable (33,495,207) - (33,495,207) - Provision for guarantee of a subsidiary (6,790,000) - (34,433,000) - Other current liabilities (32,927,624) (57,152,228) (31,486,483) (3,419,412) Net cash provided by (used in) operating activities 250,938,087 1,045,726,299 174,674,273 814,569,602 CASH FLOWS FROM INVESTING ACTIVITIES Investment in related companies and other companies (increase) decrease 1,018,200 - 1,018,200 (12,096,956) Loans to related companies (increase) decrease - - - (79,423,120) Cash paid for purchase of property, plant and equipment (31,170,909) (86,935,907) (31,216,127) (31,130,432) Cash received from proceeds on sales of property, plant and equipment 168,646 1,744,214 35,313 1,472,214 Other assets (increase) decrease (18,665,377) 363,735 (17,749,485) (444,843) Net cash provided by (used in) investing activities (48,649,440) (84,827,958) (47,912,099) (121,623,137) CASH FLOWS FROM FINANCING ACTIVITIES Bank overdrafts and loans from financial institutions increase (decrease) 111,992,018 406,478,511 134,742,897 572,395,426 Short-term loans and advances from related companies 317,073 (32,125,478) 5,600,000 6,600,000 Short-term loans and advance from directors and employees (7,000,000) (312,641) - (312,641) Long-term loans increase (decrease) (174,225,303) (1,137,454,135) (135,158,228) (1,123,339,491) Net cash provided by (used in) financing activities (68,916,212) (763,413,743) 5,184,669 (544,656,706) Effects from exchange rate in cash and cash equivalents increase (decrease) 157,368 - 156,449 - Net increase in cash and cash equivalents 133,529,803 197,484,598 132,103,292 148,289,759 Cash and cash equivalents as at January 1 165,371,662 294,319,651 103,895,419 286,065,933 Cash and cash equivalents as at June 30 Baht 298,901,465 491,804,249 235,998,711 434,355,692 See notes to the interim financial statements The interim financial statements have been subjected to a review