1. Group turnover increased by 102% from S$37.3 million to S$75.3 million for the year ended

31 December 2013 (?FY2013?) as a result of the consolidation of our Taiwan-based copper ball business,

viz. Western Copper Co., Ltd. (" Western" ). It became a subsidiary company during the year because of

operational control as well as the Group's subscription of additional shares in the company. The increase

of Western?s revenue in the year is partly attributed to the copper ball manufacturing facilities in Kunshan,

Jiangsu province in China, which was completed in the first half and started to generate revenue in the

second half of the year.

2. The Group had managed to achieve a gross profit of about $3.5 million despite the difficult

operating environment, in particular the limited working capital and high financing costs mainly due to the

legacy debts under the Scheme of Arrangement. The fairly low gross margin of 4.6% is because the bulk

of the copper balls we sold in FY2013 were still bought from other vendors. This will improve in the coming

as we will stop third-party supplies entirely by mid-year when the second line of copper ball facility is put

into operation.