Tuesday, May 13, 2008

Pan United

13 May 2008

Pan-United Corporation Ltd, (PUC, the Group or 泛联集团), turned in a stellar set of
results in the first 2008 quarter on the back of improved contributions principally from its
businesses in shipping and the supply of basic building materials.

For the three months ended 31 March 2008 (1Q08), the integrated logistics and
infrastructure group delivered to shareholders a net attributable profit of S$11.7 million,
73% above the S$6.8 million reported in the previous corresponding quarter. Higher
revenues were also recorded at S$117.1 million, a year on year (yoy) rise of 35%.
PUC’s Chief Executive Officer, Mr Patrick Ng said: “This is a strong start for 2008 and we
are pleased that our growth in 1Q08 has been supported by all three key divisions. We
expect to end the year rather optimistically as we continue to benefit from buoyant
construction demand in Singapore, the high level of intra-Asia cargo movements and
China’s busy trade flows.”

The Group’s Industrial & Trading division sold more basic building materials like cement,
ready-mixed concrete (RMC) and aggregate products during 1Q08. As a result, sales leapt
39% to S$90.9 million in 1Q08.

The Shipping division enjoyed both high utilisation and firm charter rates which steered
revenue up 38% yoy in 1Q08.

PUC’s multi-purpose Changshu Xinghua Port (CXP) in China was affected by the austerity
measures implemented by the Chinese authorities to curb steel exports and February’s
severe snow storm. Although the port handled less steel and logs, this was offset by strong
sales growth in forestry products which helped the division record a 1% yoy rise in revenue to S$9.8 million in 1Q08. CXP also added fertilizers and woodchips to its cargo mix, in
line with management’s on-going effort to broaden the port’s income base.

The Group’s sound balance sheet is backed by minimal net gearing of under 10%. The
improved performance and prudent management of working capital generated a net
cashflow of S$19.1 million from operations which exceeded its CAPEX of S$10.8 million
for the quarter.

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