Investor Relations: News

Half Year Financial Statement Announcement For The Period Ended 30/06/2004

BackAug 02, 2004

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3),

HALF-YEAR AND FULL YEAR RESULTS

1(a) An income statement (for the group) together with a comparative statement for the

corresponding period of the immediately preceding financial year.

In S$'000s	2004	2003	+/-
	1H	1H	%

Revenue	257,327	136,375	88.7%

Cost of sales	(236,900)	(119,450)	98.3%

Gross profit	20,427	16,925	20.7%
Gross Profit %	7.9%	12.4%

Other operating income	196	390	-49.7%

Selling and marketing expenses	(4,671)	(3,816)	22.4%

Administrative expenses	(5,310)	(3,818)	39.1%

Other operating income/ (expenses), net	(70)	115	-160.9%

Profit from operations	10,572	9,796	7.9%

Finance costs	(48)	(45)	6.7%

Profit from ordinary activities before tax	10,524	9,751	7.9%
As % of Revenue	4.1%	7.2%

Income tax expenses	(2,141)	(1,588)	34.8%

Net profit for the year after tax	8,383	8,163	2.7%

Minority interest	(125)	(173)	-27.7%

Net profit for the year	8,258	7,990	3.4%
As % of Revenue	3.2%	5.9%

No. of shares ('000)	401,385	395,752
Earnings per share (in cents)
Basic	2.06	2.02

1(a)(ii) Profit from ordinary activities before taxation has been arrived at after charging/(crediting):

In S$'000s	2004	2003	+/-
	1H	1H	%

Staff costs	6,474	5,282	22.6%
Contributions to defined contribution plans included in staff costs	494	429	15.3%
Directors' renumeration included in staff costs	379	224	69.2%
Depreciation of property, plant and equipment	407	704	-42.2%
Impairment losses recognised on:
-property, plant and equipment	173	10	1630.0%
Amortisation of intangible assets	34	24	41.7%
Provision made/(reversed) for warranty costs	167	(53)	415.1%
Rental expenses	533	522	2.1%
Loss/(gain) on disposal of property, plant and equipment	(1)	(60)	-98.3%
Exchange (gain)/loss	187	(4)	4775.0%

Number of employees	206	183	12.6%

Other operating income comprises:
Service income	108	122	-11.5%
Interest income
-banks	36	13	176.9%
-related corporations	22	155	-85.8%
Others	30	100	-70.0%
Total	196	390	-49.7%

1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement

as at the end of the immediately preceding financial year.

	Group		Company
In S$'000s	AS AT 30/6/2004	AS AT 31/12/2003	AS AT 30/6/2004	AS AT 31/12/2003
Non-current assets
Investments in subsidiaries	0	0	21,795	21,240
Property, plant and equipment	1,317	1,371	201	252
Intangible assets	68	89	0	0
Deferred tax assets	180	549	0	0
Total Non-current assets	1,565	2,009	21,996	21,492

Current Assets
Inventories	24,235	23,591	10,530	14,158
Work-in-progress	642	224	15	25
Trade receivables	15,414	10,946	3,262	2,270
Other receivables, deposits and prepayments	4,104	7,015	3,326	5,357
Amounts due from:-
- related corporations	16,701	24,121	5,952	8,948
- holding companies	29	66	4	1
- subsidiaries	0	0	5,564	2,495
Cash at bank and in hand	52,236	16,453	20,823	4,272
Total Current Assets	113,361	82,416	49,476	37,526

Current Liabilities
Trade payables	49,428	41,252	19,057	23,486
Other payables and accruals	14,635	9,554	4,390	2,564
Amounts due to:-
- related corporations	606	50	135	11
- subsidiaries	0	0	284	284
- holding companies	3	1,905	3	947
- minority shareholder	0	735	0	735
Current tax payable	3,366	3,239	1,762	1,421
Deferred income	1,218	1,044	0	0
Total Current Liabilities	69,256	57,778	25,631	29,448

Net Current Assets	44,105	24,638	23,845	8,078

Less: Non current liabilities
Minority interests	924	553	0	0
Total Net Assets	44,746	26,094	45,841	29,570

Share Capital	8,840	8,000	8,840	8,000
Share Premium	9,840	0	9,840	0
Reserves	26,066	18,094	27,161	21,570
Shareholders' Equity	44,746	26,094	45,841	29,570

Compared to 31 December 2003, the increase in net current assets was mainly due to net proceeds from initial public offering of $10.7m and profits from operations. Receivables and payables also increased as a result of increased sales. There was also a repayment of shareholder loan to the holding company and minority shareholder.

1(b)(ii) Aggregate amount of group's borrowings and debt securities.

Amount repayable in one year or less, or on demand

As at 30.6.2004

As at 31.12.2003

Secured	Unsecured	Secured	Unsecured

NIL	NIL	NIL	NIL

Amount repayable after one year

As at 30.6.2004

As at 31.12.2003

Secured	Unsecured	Secured	Unsecured

NIL	NIL	NIL	NIL

Details of any collateral

NIL

1(c) A cash flow statement (for the group), together with a comparative statement for

the corresponding period of the immediately preceding financial year.

In S$'000s	1H 2004	1H 2003
Cash Flows From Operating Activities
Profit before taxation	10,524	9,751
Adjustments for:
Depreciation and Amortisation	407	704
Impairment of PPE	173	10
(Gain)/Loss on disposal of property, plant and equipment	(1)	(60)
Amortisation	34	24
Interest income	(58)	(168)
Interest expense	48	45
Deferred Income	174	(335)

Operating profit before working capital changes	11,301	9,971
Changes in working capital:
Inventories and work in progress	(609)	(2,929)
Trade receivables	(3,503)	(3,271)
Other receivables, deposits and prepayments	2,968	1,207
Balances with related corporations	(2,465)	(500)
Payables and accruals	12,873	1,608

Cash generated from operations	20,565	6,086
Income tax paid / Deferred tax movement	(1,759)	(872)
Interest received	57	179

Net cash inflow from operating activities	18,863	5,393

Cash Flows From Investing Activities
Purchase of property, plant and equipment	(298)	(409)
Purchase of intangible assets	(13)	(73)
Net cash inflow/(outflow) from acquisition of subsidiary	(300)	252
Acquisition of additional interest in subsidiary	(340)	0
Proceeds from disposal of property, plant and equipment	18	60

Net cash outflow from investing activities	(933)	(170)

Cash Flows From Financing Activities
Balances with related corporations	7,452	4,270
Net proceeds from IPO shares issue	10,680	0
Dividend paid	0	(8,140)

Net cash inflow/(outflow) from financing activities	18,132	(3,870)

Net Increase In Cash And Cash Equivalents	36,062	1,353
Cash And Cash Equivalents As At Beginning of Period	16,453	19,492
Effect of exchange rate differences on balance	(279)	95

Cash And Cash Equivalents As At End of Period	52,236	20,940

All our 3 business segments continued to generate strong cash. Cash and Cash Equivalents as at 30 June 2004 was $52.2 million.

Net Cash inflow from operating activities
We generated $18.9 million from operating activities in 1H2004. This was an improvement of $13.5 million.

Net Cash outflow from investing activities
? We invested $0.5 million in PT Sakalaguna Semesta, a subsidiary in Indonesia.
? We acquired the remaining interest in Nexwave Technologies Pte Ltd for $0.3 million.

Net Cash inflow/outflow from financing activities
? DBS Bank Ltd is the manager, underwriter and placement agent for TeleChoice's IPO on the Mainboard of the Singapore Exchange Securities Trading Limited in June this year. Net IPO proceeds of $10.7 million contributed to the increase in cash from financing activities. There were also no dividends paid to shareholders of the company in 1H2004 compared to 1H2003

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or

(ii) changes in equity other than those arising from capitalisation issues and
distributions to shareholders, together with a comparative statement for the
corresponding period of the immediately preceding financial year.

	Share	Share	Accumulated	Merger	Goodwill	Exchange	Total
The Group (In S$'000s)	capital	premium	profits /(lossess)	reserve	Written off	Translation reserve

At 1 January 2003, restated, brought forward	5,000	0	(5,747)	46,911	(2,105)	73	44,132

Translation differences relating to financial statements of foreign subsidiaries	0	0	0	0	0	113	113

In connection with the restructuring exercise
- Acquisition of additional 7% equity in STMD	0	0	0	1,455	0	0	1,455
- Issue of shares to acquire subsidiaries	3,000	0	0	(3,000)	0	0	0

Net profit for the year	0	0	7,990	0	0	0	7,990

Interim dividends declared of
- 5% (one tier tax exempt)	0	0	(1,500)	0	0	0	(1,500)
- 15% less tax at 22%	0	0	(585)	0	0	0	(585)

As at 30 June 2003	8,000	0	158	45,366	(2,105)	186	51,605



At 1 January 2004, restated, brought forward	8,000	0	2,383	17,591	(2,105)	225	26,094

Translation differences relating to financial statements of foreign subsidiaries	0	0	0	0	0	(286)	(286)

Public issue	840	11,340	0	0	0	0	12,180

IPO Expenses *	0	(1,500)	0	0	0	0	(1,500)

Net profit for the year	0	0	8,258	0	0	0	8,258

As at 30 June 2004	8,840	9,840	10,641	17,591	(2,105)	(61)	44,746

* Estimated as at 30 June 2004

	Share	Share	Accumulated	Merger	Goodwill	Exchange	Total
The Company (In S$'000s)	capital	premium	(losses)/ profits	reserve	written off	translation

At 1 January 2003, restated, brought forward	5,000	0	7,565	0	0	0	12,565

Issue of shares in connection with the Restructuring to acquire subsidiaries	3,000	0	0	0	0	0	3,000

Net profit for the year	0	0	2,451	0	0	0	2,451

Interim dividends declared of
15% less tax at 22%	0	0	(585)	0	0	0	(585)

As at 30 June 2003	8,000	0	9,431	0	0	0	17,431


At 1 January 2004, restated, brought forward	8,000	0	8,270	13,300	0	0	29,570

Public issue	840	11,340	0	0	0	0	12,180

IPO Expenses *	0	(1,500)	0	0	0	0	(1,500)

Net profit for the year	0	0	5,591	0	0	0	5,591

As at 30 June 2004	8,840	9,840	13,861	13,300	0	0	45,841

* Estimated as at 30 June 2004

1(d)(ii) Details of any changes in the company's share capital arising from rights issue,

bonus issue, share buy-backs, exercise of share options or warrants, conversion of
other issues of equity securities, issue of shares for cash or as consideration for
acquisition or for any other purpose since the end of the previous period reported
on. State also the number of shares that may be issued on conversion of all the
outstanding convertibles as at the end of the current financial period reported on
and as at the end of the corresponding period of the immediately preceding
financial year.

A) Movements in Issued and Paid up Capital

	No of shares	Issued and paid up Capital
Ordinary Shares of $0.02 per share		$'000
Balance as at 1 January 2004	400,000,000	8,000

Balance as at 31 March 2004	400,000,000	8,000
Issue of new shares	42,000,000	840
Balance as at 30 June 2004	442,000,000	8,840

B) Employee Share Options

As at 30 June 2004, there were unexercised options for 20,000,000 (30 June 2003: NIL) of unissued ordinary shares of $0.2079 each under TeleChoice Pre-IPO Employee Share Option Scheme.

2. Whether the figures have been audited or reviewed and in accordance with

which auditing standard or practice.

The figures have not been audited or reviewed by the company's auditor

3. Where the figures have been audited or reviewed, the auditors' report (including

any qualifications or emphasis of a matter).

Not applicable

4. Whether the same accounting policies and methods of computation as in the

issuer's most recently audited annual financial statements have been applied.

The group has applied the same accounting policies and method of computation in the financial statements for the current reporting period compared with the audited financial statements as at 31 December 2003

5. If there are any changes in the accounting policies and methods of computation,

including any required by an accounting standard, what has changed, as well as
the reasons for, and the effect of, the change.

Not applicable

6. Earnings per ordinary share of the group for the current financial period reported

on and the corresponding period of the immediately preceding financial year,
after deducting any provision for preference dividends.

GROUP	1H04	1H03	FY03

Earnings per share for the period based on net profits attributable to shareholders:

Base on weighted average number of ordinary shares on issue (in cents)	2.06	2.02	3.59

7. Net asset value (for the issuer and group) per ordinary share based on issued share

capital of the issuer at the end of the:-

(a) current financial period reported on; and
(b) immediately preceding financial year.

	GROUP		COMPANY
	30.6.04	31.12.03	30.6.04	31.12.03

Net assets value per ordinary share based on issued share capital at the end of the financial period/year (in cents):	10.12	6.52	10.37	7.39

8. A review of the performance of the group, to the extent necessary for a reasonable

understanding of the group's business. It must include a discussion of the
following:-

(a) any significant factors that affected the turnover, costs, and earnings of the
group for the current financial period reported on, including (where applicable)
seasonal or cyclical factors; and

(b) any material factors that affected the cash flow, working capital, assets or
liabilities of the group during the current financial period reported on.

8(A) REVENUE

1H2004 vs 1H2003	1H2004	1H2003	Growth
In S$'000s			S$	$%

Distribution services	231,957	116,539	115,418	99%
Telecommunication services	15,280	13,943	1,337	10%
Mobile network and engineering services	10,090	5,893	4,197	71%
Total	257,327	136,375	120,952	89%
? The Group's revenue of $257.3 million for 1H2004 was 89% or $121.0 million higher than 1H2003. All segment registered revenue growth. ? The increase in revenue was mainly contributed by 99% growth in Distribution services segment in Singapore, Indonesia, Australia and Malaysia as well as new card distribution business in Indonesia. ? With its increase in iDD minutes, the revenue of the Telecommunication services segment improved by 10%. ? New projects undertaken from SingTel Mobile Pte Ltd and StarHub Pte Ltd increased the revenue for the Mobile network and engineering services segment by 71%.

8(B) PROFIT BEFORE TAX (PBT)

1H2004 vs 1H2003	1H2004	1H2003	Growth
In S$'000s			S$	$%

Distribution services	5,956	2,949	3,007	102%
Telecommunication services	2,470	2,604	(134)	-5%
Mobile network and engineering services	2,098	4,198	(2,100)	-50%
Total	10,524	9,751	773	8%
? The Group's PBT of $10.5 million for 1H2004 was 8% or $0.8 million higher than 1H2003. ? Distribution services segment continued to maintain its margin despite difficult market conditions. Singapore and Indonesia continued to outperform and contributed to the higher PBT. Of the $3.0 million growth in PBT, 30% or $0.9 million was contributed by overseas operations. ? In the Telecommunication services segment, despite the competitive environment, iDD minutes grew by 30% resulting in iDD PBT growth; however it was offset by the decline in paging PBT, which was in line with the declining paging market. ? The PBT from Mobile Network and engineering services segment declined due to the lower usage of mobile network services.

9. Where a forecast, or a prospect statement, has been previously disclosed to

shareholders, any variance between it and the actual results.

None

10. A commentary at the date of the announcement of the significant trends and

competitive conditions of the industry in which the group operates and any
known factors or events that may affect the group in the next reporting period
and the next 12 months.

Based on the current outlook and assuming that there are no material adverse changes in economic conditions or any unforeseen circumstances, the Group anticipates its 2H2004 revenue and PBT to maintain.

Distribution Services. The Group anticipates substantial growth in revenue for all our overseas operations. The Group also anticipates the overseas operations to continue to increase its PBT contribution to the Group. The Group has commenced the recognition of the revenues of its Indonesian joint venture entity, PT Sakalaguna Semesta ("PTSS"), with effect from May 2004. PTSS engages in the distribution of pre-paid SIM cards and top-up vouchers throughout Indonesia. For 2Q2004 alone, the revenues attributable to PTSS amounted to S$6.3 million.

Telecommunications Services. The Group anticipates that its operating performance in the Telecommunications Services segment will be maintained. The Group intends to proactively target new service and product opportunities in Singapore and throughout the region.

Mobile Network and Engineering Services. The Group anticipates growth in its Mobile Network and Engineering Services segment, attributable to new engineering services contracts in Singapore and Indonesia. The Group will continue to fulfill contracts on 2G and 3G engineering services from SingTel Mobile Pte Ltd, StarHub Pte Ltd, PT Nokia and PT Ericsson.

Where opportunities arise, the Group will continue to strengthen its core capabilities in the engineering, services and distribution segments by undertaking suitable opportunities for expansion into regional markets. The Group will continue to diversify and strengthen its service and product offerings with the addition of new product lines.

This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, and governmental and public policy changes. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events.

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on? None
(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? Yes

Name of Dividend	Interim	Interim
Dividend Type	Cash	Cash
Dividend Amount per Share (in cents)	15 cents per ordinary share (less tax)	5 cents per ordinary share (one-tier tax)
Optional:- Dividend Rate (in %)	% per ordinary share	% per ordinary share
Par value of shares	S$1.00	$1.00
Tax Rate	22%	tax exempt

(c) Date payable

Not applicable

(d) Books closure date

Not applicable

12. If no dividend has been declared/recommended, a statement to that effect.

No dividend has been declared.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the

group) in the form presented in the issuer's most recently audited annual financial
statements, with comparative information for the immediately preceding year.

Not applicable

14. In the review of performance, the factors leading to any material changes in

contributions to turnover and earnings by the business or geographical segments.

Not applicable

15. A breakdown of sales.

Not applicable

16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest

full year and its previous full year.

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)

	Latest Full Year ()	Previous Full Year ()
Ordinary
Preference
Total: