VITROX CORPORATION BERHAD

(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

INTERIM FINANCIAL REPORT

FOR THE THIRD QUARTER

ENDED 30 SEPTEMBER 2021
 VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

CONTENTS

Page
Condensed Consolidated Statement of Comprehensive Income………………….. 1
Condensed Consolidated Statement of Financial Position……..………………….. 2
Condensed Consolidated Statement of Changes in Equity...……………………… 3-4
Condensed Consolidated Statement of Cash Flows…..……………………………. 5-6
Notes to the Interim Financial Report…………………………………………………. 7-14
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(The figures have not been audited)

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Corresponding
Corresponding Current preceding
Current quarter preceding period-to-date period-to-date
ended quarter ended ended ended
30-Sep-21 30-Sep-20 30-Sep-21 30-Sep-20
Note RM'000 RM'000 RM'000 RM'000

Revenue 168,293 123,748 494,369 310,585

Other operating income 1,380 1,231 4,627 4,957

Operating expenses (126,163) (93,038) (370,872) (236,547)

Finance costs (161) (202) (491) (970)

Share of associate's loss (408) (218) (961) (888)

Profit before tax B12 42,941 31,521 126,672 77,137

Tax expense B5 (798) (1,807) (3,269) (3,436)

Profit for the financial period 42,143 29,714 123,403 73,701

Other comprehensive income:-

Item that may be reclassified

subsequently to profit or loss:-
- Currency translation differences
for the foreign operation 110 115 843 484

Other comprehensive income

for the financial period 110 115 843 484

Comprehensive income
for the financial period 42,253 29,829 124,246 74,185

Profit/(loss) for the financial period

attributable to:-
- Owners of the Company 42,211 29,714 123,547 73,701
- Non-controlling interests (68) 0 (144) 0
42,143 29,714 123,403 73,701

Comprehensive income for the financial

period attributable to:-
- Owners of the Company 42,321 29,829 124,390 74,185
- Non-controlling interests (68) 0 (144) 0
42,253 29,829 124,246 74,185

Earnings per share attributable

to owners of the Company (sen) B10
- Basic 8.94 6.30 26.17 15.63
- Diluted 8.94 6.29 26.15 15.61

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying explanatory
notes and audited financial statements for the financial year ended 31 December 2020.

1
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at As at
30-Sep-21 31-Dec-20
RM'000 RM'000
(Unaudited) (Audited)
ASSETS
Non-current assets
Property, plant and equipment 116,240 96,473
Investment properties 40,600 40,600
Right-of-use assets 33,600 34,084
Investment in associate 21,557 7,584
Investments in club memberships, at cost 91 91
Deferred tax assets 8 8
212,096 178,840
Current assets
Inventories 193,541 136,114
Contract Assets 316 0
Receivables 219,168 177,923
Derivatives 0 785
Prepayments 19,488 5,100
Current tax assets 2,617 3,087
Cash and cash equivalents 254,097 258,118
689,227 581,127
TOTAL ASSETS 901,323 759,967

EQUITY AND LIABILITIES

Equity
Share capital 55,239 54,649
Reserves 621,272 514,359
Equity attributable to owners of the Company 676,511 569,008
Non-controlling interests (139) (1)
Total equity 676,372 569,007

Non-current liabilities
Term loans - secured 29,444 33,513
Lease liabilities 92 116
Deferred tax liabilities 2,387 2,387
Deferred income on government grants 589 801
Total non-current liabilities 32,512 36,817

Current liabilities
Payables 171,453 131,328
Derivatives 253 0
Dividend payable 0 8,261
Term loans - secured 7,423 7,122
Lease liabilities 106 103
Contract liabilities 12,872 6,909
Current tax liabilities 332 420
Total current liabilities 192,439 154,143
Total liabilities 224,951 190,960

TOTAL EQUITY AND LIABILITIES 901,323 759,967

Net assets per ordinary share attributable to

owners of the Company (sen) 143.24 120.54

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the accompanying explanatory notes
and audited financial statements for the financial year ended 31 December 2020.

2
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(The figures have not been audited)

Non- distributable Distributable

Equity
Share Currenc y attributable Non-
Share Capital option Revaluation translation Retained to owners of c ontrolling Total
c apital reserve* reserve reserve reserve profits the Company interests equity
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

P e rio d e n de d 3 0 S e pte mbe r 2 0 2 1

Balance at 1 January 2021 54,649 520 51 14,160 62 499,566 569,008 (1) 569,007

Share- based payments 0 0 1,332 0 0 0 1,332 0 1,332

Issue of shares pursuant to Employees' Share
Option Sc heme 590 0 (159) 0 0 0 431 0 431
Issue of shares to non- c ontrolling interests 0 0 0 0 0 0 0 6 6
Dividends 0 0 0 0 0 (18,650) (18,650) 0 (18,650)
Total transactions with owners 590 0 1,173 0 0 (18,650) (16,887) 6 (16,881)

Currency translation differenc es for foreign operation

(representing other c omprehensive inc ome for the
financial period) 0 0 0 0 843 0 843 0 843
Profit/(loss) for the financ ial period 0 0 0 0 0 123,547 123,547 (144) 123,403
Comprehensive inc ome for the financial period 0 0 0 0 843 123,547 124,390 (144) 124,246

Balance at 30 September 2021 55,239 520 1,224 14,160 905 604,463 676,511 (139) 676,372

* This represents the c umulative amount transferred from the retained profits of a subsidiary under the statutory requirements of the People’s Republic of China.

3
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (cont’d)
(The figures have not been audited)

Non- distributable Distributable

Equity
Share Currenc y attributable Non-
Share Capital option Revaluation translation Retained to owners of c ontrolling Total
c apital reserve* reserve reserve reserve profits the Company interests equity
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

P e rio d e n de d 3 0 S e p te mbe r 2 0 2 0
Balance at 1 January 2020 52,018 520 803 14,160 (510) 415,397 482,388 0 482,388

Share- based payments 0 0 72 0 0 0 72 0 72

Issue of shares pursuant to Employees' Share
Option Sc heme 2,220 0 (713) 0 0 0 1,507 0 1,507
Issue of shares to non- controlling interests 0 0 0 0 0 0 0 0 0
Dividends 0 0 0 0 0 (13,192) (13,192) 0 (13,192)
Total transactions with owners 2,220 0 (641) 0 0 (13,192) (11,613) 0 (11,613)

Currency translation differenc es for foreign operation

(representing other c omprehensive inc ome for the
financial period) 0 0 0 0 484 0 484 0 484
Profit for the financ ial period 0 0 0 0 0 73,701 73,701 0 73,701
Comprehensive inc ome for the financial period 0 0 0 0 484 73,701 74,185 0 74,185

Balance at 30 September 2020 54,238 520 162 14,160 (26) 475,906 544,960 0 544,960

* This represents the c umulative amount transferred from the retained profits of a subsidiary under the statutory requirements of the People’s Republic of China.

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying explanatory notes and audited financial statements for the financial year ended 31 December 2020.

4
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(The figures have not been audited)
Corresponding
Current preceding
period-to-date period-to-date
ended ended
30-Sep-21 30-Sep-20
RM'000 RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 126,672 77,137
Adjustments for:-
Amortisation and depreciation 4,805 5,790
Amortisation of deferred income (212) (614)
Fair value losses/(gain) on financial instruments 253 (513)
Gain on disposal of property, plant and equipment (431) (760)
Impairment losses/(gains) on financial assets 557 (27)
Interest expense 491 970
Interest income (2,281) (3,289)
Inventories written down 14,287 10,199
Property, plant and equipment written-off 2 3
Reversal of inventories written down (10,817) (7,784)
Share-based payments 1,333 72
Share of associate's loss 960 888
Unrealised loss on foreign exchange 472 2,503
Operating profit before working capital changes 136,091 84,575
Changes in:-
Inventories (60,897) (22,261)
Contract Assets (315) 0
Receivables (40,391) (21,506)
Derivatives 785 439
Prepayments (14,389) (672)
Payables 39,882 26,482
Contract liabilities 5,962 1,799
Cash generated from operations 66,728 68,856
Tax paid (2,887) (2,365)
Net cash from operating activities 63,841 66,491

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property, plant and equipment (24,042) (3,474)
Addition investment in associate (15,000) 0
Interest received 2,281 3,289
Proceeds from disposal of property, plant and equipment 444 776
Proceeds from disposal of shares in associate 66 (1,700)
Net cash used in investing activities (36,251) (1,109)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid (26,912) (20,256)
Interest paid (499) (1,040)
Issue of shares 431 1,507
Issue of shares to non-controlling interests 6 0
Payment of lease liabilities (83) (84)
Repayment of term loans (5,521) (5,521)
Net cash used in financing activities (32,578) (25,394)

5
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (cont’d)
(The figures have not been audited)
Corresponding
Current preceding
period-to-date period-to-date
ended ended
30-Sep-21 30-Sep-20
RM'000 RM'000

Currency translation differences 967 297

Net (decrease)/increase in cash and cash equivalents (4,021) 40,285

Cash and cash equivalents at beginning of the period 258,118 191,583

Cash and cash equivalents at end of the period 254,097 231,868

Cash and cash equivalents consist of:-

Highly liquid investments 162,134 149,438
Term deposits 13,547 13,158
Cash and bank balances 78,416 69,272
254,097 231,868

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the accompanying explanatory notes and
audited financial statements for the financial year ended 31 December 2020.

6
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
A. NOTES TO THE INTERIM FINANCIAL REPORT

A1 Basis of preparation of Interim Financial Report

The interim financial report is unaudited and has been prepared in compliance with Malaysian Financial
Reporting Standards (“MFRS”) 134, Interim Financial Reporting issued by the Malaysian Accounting
Standards Board, Paragraph 9.22 and Appendix 9B of the Listing Requirements of Bursa Malaysia
Securities Berhad.

The interim financial report should be read in conjunction with the audited financial statements of the
Group for the financial year ended 31 December 2020 and the accompanying explanatory notes attached
to this interim financial report.

The significant accounting policies and method of computation adopted in the interim financial report are
consistent with those adopted in the annual financial statements for the financial year ended 31
December 2020 except for the adoption of the following MFRSs:-
Effective for
annual periods
beginning on or
MFRS after

Amendments to MFRS 9, MFRS 139, MFRS 7, MFRS 4 and MFRS 16 1 January 2021
Interest Rate Benchmark Reform - Phase 2

The initial application of the above MFRSs did not have any significant impacts on the financial
statements.

The Group has not applied the following MFRSs which have been issued as at the end of reporting
period but are not yet effective:-

Effective for
annual periods
beginning on or
MFRS (issued as at the end of the reporting period) after

MFRS 17 Insurance Contracts 1 January 2023

Amendments to MFRS 3 Reference to the Conceptual Framework 1 January 2022
Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Deferred
Assets between an Investor and its Associate or Joint Venture
Amendments to MFRS 17 Insurance Contracts 1 January 2023
Amendments to MFRS 101 Classification of Liabilities as Current or Non-current 1 January 2023
Amendments to MFRS 101 Disclosure of Accounting Policies 1 January 2023
Amendments to MFRS 108 Definition of Accounting Estimates 1 January 2023
Amendments to MFRS 112 Deferred Tax related to Assets and Liabilities arising 1 January 2023
from a Single Transaction
Amendments to MFRS 116 Property, Plant and Equipment – Proceeds before 1 January 2022
Intended Use
Amendments to MFRS 137 Onerous Contracts - Cost of Fulfilling a Contract 1 January 2022
Annual Improvements to MFRS Standards 2018 - 2020 1 January 2022

Management foresees that the initial application of the above MFRSs will not have any significant
impacts on the financial statements.

A2 Seasonal or cyclical of operations

The Group’s operation is dependent on the cyclical trend of the semiconductors and electronics
industries.

7
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
A. NOTES TO THE INTERIM FINANCIAL REPORT (cont’d)

A3 Unusual items affecting assets, liabilities, equity, net income or cash flows
There were no unusual items affecting assets, liabilities, equity, net income or cash flows during the
current interim period.

A4 Material changes in estimates

There were no changes in estimates of amounts reported in prior interim period of the current financial
year or changes in estimate of amounts reported in prior financial year.

A5 Debts and equity securities

During the current quarter, the Company issued 36,000 new ordinary shares at average exercise price of
RM2.79 pursuant to the Employee Shares Option Scheme (“ESOS”).

Saved as disclosed above, there were no other issuances, cancellations, repurchases, resale or
repayments of debts and equity securities during the current quarter under review.

A6 Dividend paid
Since the end of the previous financial year, the Company paid the following dividends :-

i) an interim tax exempt dividend of 1.75 sen per share amounting to RM8,260,985 for the financial
year ended 31 December 2020, paid on 21 January 2021; and

ii) the final tax exempt dividend of 3.95 sen per share amounting to RM18,650,908 for the financial
year ended 31 December 2020, paid on 16 July 2021.

A7 Segment reporting
No segment reporting has been prepared as the Group is principally engaged in development and
production of vision inspection system and printed circuit board assemblies for microprocessor
applications.

A8 Material events subsequent to the end of the quarter

There were no materials events subsequent to the end of the current reporting period that have not been
reflected in the interim financial report.

A9 Changes in the composition of the Group

There were no material changes in the composition of the Group during the current quarter under review.

A10 Contingencies
There were no contingent assets or liabilities for the Group since 31 December 2020 up to 30 September
2021.

A11 Contractual commitments

30-Sep-21 30-Sep-20
RM'000 RM'000

Acquisition of property, plant and equipment 19,092 11,638

A12 Significant related party transactions

There were no significant related party transactions during the current quarter under review.

8
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
A. NOTES TO THE INTERIM FINANCIAL REPORT (cont’d)

A13 Financial instruments

i) Derivatives
As at 30 September 2021, the Group’s outstanding derivatives are as follows:-
RM'000
Forward exchange contracts - at fair value
- Current liabilities 253

Derivatives consist of forward exchange contracts which are used to hedge the exposure to currency
risk. The Group does not apply hedge accounting. As at 30 September 2021, the Group had contracts
with financial institutions due within 1 year to buy RM115,983,000 and sell USD27,618,000 at
contractual forward rates.

The fair values of forward exchange contracts were quoted by the financial institutions, which normally
measured the fair values using present value technique by discounting the differences between
contractual forward prices and observable current market forward prices using risk-free interest rate
(i.e. Level 2).

ii) Gains/(Losses) arising from fair value changes of financial liabilities

There were no gains/(losses) arising from fair value changes of financial liabilities for the current
quarter and period ended 30 September 2021.

iii) Fair value

The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable inputs
and minimising the use of unobservable inputs.

The inputs to valuation techniques used to measure fair value are categorised into the following levels
of fair value hierarchy:-
(i) Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
(ii) Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.
(iii) Level 3 - unobservable inputs for the asset or liability.

As at end of the current quarter under review, the carrying amounts of receivables, cash and cash
equivalents and payables which are short-term in nature or repayable on demand are reasonable
approximations of fair values.

The fair value of long term loans are measured using present value technique by discounting the
expected future cash flows using observable current market interest rates for similar liabilities (i.e.
Level 2). The fair values measured are considered to be reasonably close to the carrying amount
reported as the observable current market interest rates also approximate to the effective interest
rates of term loans.

The fair value of forward exchange contracts were quoted by the financial institutions, which normally
measured the fair values using present value technique by discounting the differences between
contractual forward prices and observable current market forward prices using risk-free interest rate
(i.e. Level 2).

There were no transfers between levels of fair value hierarchy during the current quarter under review.

9
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
B. DISCLOSURE REQUIREMENTS AS SET OUT IN APPENDIX 9B OF BURSA SECURITIES
MAIN MARKET LISTING REQUIREMENTS

B1 Review of performance

INDIVIDUAL QUARTER
Corresponding
Current quarter preceding
ended quarter ended
30-Sep-21 30-Sep-20 Changes Changes
RM'000 RM'000 RM'000 %

Revenue 168,293 123,748 44,545 36.00%

Profit before tax 42,941 31,521 11,420 36.23%
Profit for the financial period 42,143 29,714 12,429 41.83%
Profit attributable to owners of
the Company 42,211 29,714 12,497 42.06%

The Group achieved revenue of RM168.29 million for the current quarter, representing a growth of 36.0%
or RM44.55 million as compared to the same quarter in the preceding year of RM123.75. Higher revenue
was attributable to both Machine Vision System (“MVS”) and Automated Board Inspection (“ABI”).

Similarly, the Group recorded higher profit before tax (“PBT”) of RM42.94 million as compared to the
same quarter of the preceding year of RM31.52 million in tandem with the Group’s higher revenue,
showing an increase of RM11.42 million or 36.2%.

CUMULATIVE QUARTER
Corresponding
Current preceding
period-to-date period-to-date
ended ended
30-Sep-21 30-Sep-20 Changes Changes
RM'000 RM'000 RM'000 %

Revenue 494,369 310,585 183,784 59.17%

Profit before tax 126,672 77,137 49,535 64.22%
Profit for the financial period 123,403 73,701 49,702 67.44%
Profit attributable to owners of
the Company 123,547 73,701 49,846 67.63%

The Group’s revenue improved notably from RM310.59 million to RM494.37 million, recording an
increase of 59.2% or RM183.78 million. The favorable market condition and well market acceptance of
new product introduction led to stronger demand of both MVS and ABI products, and contributed to
overall increase in revenue.

In line with the increase in revenue, the Group’s PBT also increased by RM49.54 million or 64.2% from
RM77.14 million to RM126.67.

10
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
B. DISCLOSURE REQUIREMENTS AS SET OUT IN APPENDIX 9B OF BURSA SECURITIES
MAIN MARKET LISTING REQUIREMENTS (cont’d)

B2 Variation of results against immediate preceding quarter

Immediate
Current quarter preceding
ended quarter ended
30-Sep-21 30-Jun-21 Changes Changes
RM'000 RM'000 RM'000 %

Revenue 168,293 196,194 (27,901) -14.22%

Profit before tax 42,941 51,774 (8,833) -17.06%
Profit for the financial period 42,143 50,587 (8,444) -16.69%
Profit attributable to owners of
the Company 42,457 50,640 (8,183) -16.16%

The Group’s revenue declined from RM196.19 million to RM168.29 million, representing a reduction of
14.2% or RM27.90 million as compared to immediate preceding quarter, which was primarily resulting
from realignment with customers on the shipment delivery date to next quarter as a result of temporary
supply chain disruption due to COVID-19 cases.

The Group’s PBT decreased by RM8.83 million or 17.1% from RM51.77 million to RM42.94 million, in
tandem with lower revenue.

B3 Prospect
The Group will continue to strengthen its operational efficiencies and elevate its focus on material
sourcing process, apart from taking every effort to protect the safety and health of its employees in order
to fulfil the delivery commitment to its customers based on the current book to bill visibility. With
continuous new product innovation and new market expansion, the Group is well positioned to capture
the robust demand in 5G, Electric Vehicles (“EV”), Computing and Artificial Intelligence (“AI”) sectors. The
Board is cautiously optimistic on the business prospect for the current financial year ending 31 December
2021.

B4 Profit forecast, profit guarantee and internal targets

The Group did not provide any profit forecast, profit guarantee and internal targets in any public
document or any announcements made.

B5 Tax expense
INDIVIDUAL QUARTER CUMULATIVE QUARTER
Corresponding
Corresponding Current preceding
Current quarter preceding period-to-date period-to-date
ended quarter ended ended ended
30-Sep-21 30-Sep-20 30-Sep-21 30-Sep-20
RM'000 RM'000 RM'000 RM'000

Current tax 798 1,807 3,269 3,436

The effective tax rate of the Group for the current financial period is lower than the statutory tax rate of
24%. This was mainly due to tax incentive enjoyed by its wholly-owned subsidiaries, ViTrox Technologies
Sdn. Bhd. (“VTSB”) and ViE Technologies Sdn. Bhd. (“ViE”).

11
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
B. DISCLOSURE REQUIREMENTS AS SET OUT IN APPENDIX 9B OF BURSA SECURITIES
MAIN MARKET LISTING REQUIREMENTS (cont’d)

B5 Tax expense (cont’d)

VTSB has been granted pioneer status by MITI for a period of 5 years to undertake activities relating to
development and production of embedded intelligent robotic inspection systems and machines with M2M
connectivity and predictive analytic capability for semiconductor and electronics industries. The incentive
commenced from 17 June 2015 to 16 June 2020 (extendable for further 5 years). With effective from 17
August 2018 until 16 June 2020 (extendable for further 5 years), the pioneer activities have been
extended to its related modules.

VTSB has also obtained the MIDA approval letter for further 5 years’ extension for the above mentioned
pioneer status till 16 June 2025. The current provision of income tax is in respect of certain non-business
income and non-tax exempted income generated from non-pioneer products and services.

ViE had been granted pioneer status by MITI for a period of 3 years to undertake activities for design,
development and manufacturing of Industrial Internet of Things (IIoT) devices for data acquisition and
machine communication/control with intelligent and predictive capabilities for semiconductor and
electronics industries. The incentive commenced from 1 June 2018 to 31 May 2021 (extendable for
further 2 years). The current provision of income tax is in respect of certain non-business income and
non-tax exempted income generated from non-pioneer products of ViE.

B6 Status of corporate proposals announced

There was no corporate proposal announced and not completed as at the date of this report.

B7 Group borrowings
As at As at As at As at
30-Sep-21 30-Sep-21 30-Sep-20 30-Sep-20
RM'000 USD'000 RM'000 USD'000

Term loans - secured

Short-term borrowings 7,423 1,773 7,381 1,775

Long-term borrowings 29,444 7,031 36,558 8,791

36,867 8,804 43,939 10,566

Exchange rate 4.19 4.16

The decline in the term loan is due to the monthly repayment of term loan.

The effective interest rates of term loans at current period end and corresponding preceding period was
1.65%.

B8 Material litigation
As of the date of this announcement, the Group is not engaged in any material litigation and the Board of
Directors do not have any knowledge of any proceedings pending or threatened against the Group.

B9 Dividend
No dividend was proposed and declared by the Company in current quarter under review.

12
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
B. DISCLOSURE REQUIREMENTS AS SET OUT IN APPENDIX 9B OF BURSA SECURITIES
MAIN MARKET LISTING REQUIREMENTS (cont’d)

B10 Earnings per share

INDIVIDUAL QUARTER CUMULATIVE QUARTER
Corresponding
Corresponding Current preceding
Current quarter preceding period-to-date period-to-date
ended quarter ended ended ended
30-Sep-21 30-Sep-20 30-Sep-21 30-Sep-20
Profit attributable to owners of
the Company (RM'000) 42,211 29,714 123,547 73,701

Weighted average number of

shares for computing basis
earnings per share ('000) 472,179 471,510 472,179 471,510
Basic earnings per share (sen) 8.94 6.30 26.17 15.63

Weighted average number of

shares for computing diluted
earnings per share ('000) 472,397 472,220 472,397 472,220

Diluted earnings per share (sen) 8.94 6.29 26.15 15.61

B11 Auditors’ report on preceding annual financial statements

The auditors’ report on the financial statements for the year ended 31 December 2020 was not subject to
any qualification.

B12 Profit before tax

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Corresponding
Corresponding Current preceding
Current quarter preceding period-to-date period-to-date
ended quarter ended ended ended
30-Sep-21 30-Sep-20 30-Sep-21 30-Sep-20
RM'000 RM'000 RM'000 RM'000
Profit before tax is arrived
at after charging/(crediting):-

Amortisation and depreciation 1,577 1,874 4,805 5,790

Fair value losses on financial
instruments mandatorily measured
at fair value through profit or loss:-
- realised 1,015 (680) 2,070 801
- unrealised (707) (530) 253 (513)
Gain on foreign exchange:-
- realised (1,491) 1,990 (4,795) (3,198)
- unrealised 101 (203) 472 2,503
Interest expense 161 202 491 970
Inventories written down 14,287 10,199 14,287 10,199
Property, plant and equipment written off 0 3 2 3

13
VITROX CORPORATION BERHAD
(Incorporated in Malaysia)
Company No: 200401011463 (649966-K)

QUARTERLY REPORT ON RESULTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2021
B. DISCLOSURE REQUIREMENTS AS SET OUT IN APPENDIX 9B OF BURSA SECURITIES
MAIN MARKET LISTING REQUIREMENTS (cont’d)

B12 Profit before tax (cont’d)

INDIVIDUAL QUARTER CUMULATIVE QUARTER
Corresponding
Corresponding Current preceding
Current quarter preceding period-to-date period-to-date
ended quarter ended ended ended
30-Sep-21 30-Sep-20 30-Sep-21 30-Sep-20
RM'000 RM'000 RM'000 RM'000
Amortisation of deferred income (3) (169) (212) (614)
Gain on disposal of property, plant
and equipment 0 (58) (431) (760)
Impairment losses/(gains) on financial assets 78 (24) 557 (27)
Interest income (570) (876) (2,281) (3,289)
Reversal of inventories written down (12,312) (9,498) (10,817) (7,784)

Save as disclosed above, the other items as required under Appendix 9B, Part A (16) of the Bursa
Securities Main Market Listing Requirements are not applicable.

B13 Authorisation for issue

The interim financial statements are authorised for issue by the Board of Directors on 21 October 2021.

14