Extracted from Annual Report 2013

The financial year ended 30 June 2013 ("FY 2013") saw the Group's principal revenue driver not being spared from deteriorating market demand and increasing production costs. The Group recorded a reduction in revenue during the financial year as compared to last financial year.

LIMESTONE PROCESSING

Serving diverse industries, limestone processing continues to be the largest revenue driver among our business segments. For many years, our limestone processing segment has been behind the growth of the Group, which resulted in the expansion of its quicklime plant and construction of hydrated lime plant.

Based in Banting Selangor, Malaysia, the production of quicklime is undertaken by Compact Energy Sdn Bhd ("Compact"). The processing plant occupies a land area of 10 acres and has an annual production capacity of 432,000 metric tons of quicklime. Compact also operates the hydrated lime plant, which has an annual output capacity of 72,000 metric tons.

During the year, our limestone processing business generated revenue of S$22.9 million, which was 23% lower than last financial year's S$29.9 million. This essentially amounted to 74% of the Group's total revenue of S$30.8 million for FY 2013. The impairment loss on an investment of S$0.38 million has reduced earnings further to S$1.63 million, representing 90% of the total earnings from business operations of the Group. The decrease in turnover and earnings from this segment has stemmed from several factors, such as contraction in market demand, which led to lower sales volume, as well as higher raw material and processing costs.

SCRAP METAL TRADING

LAP Trading & Marketing Pte Ltd, which is based in Singapore, operates our scrap metal trading segment.

Despite the absence of trading activities during the second quarter of FY 2013, the scrap metal trading segment recorded an increased turnover of S$7.9 million and a rise in earnings to S$0.18 million for the year. Sales in this segment constituted 26% of total revenue of the Group, while earnings represented 10% of the Group's total earnings from business operations.

PROPERTY DEVELOPMENT

The financial year celebrated a new milestone as the Group made its initial inroads into property development. The Group acquired a total land area of 80,137 square metres at New Harbour City in Yangzhou Economic and Technological Development Zone, Jiangsu Province, the People's Republic of China ("PRC"), for residential and commercial development projects. This undertaking is in line with the Group's strategy for new investment projects that will provide an addtional earnings stream for the Group.

MOVING FORWARD

As we welcome another year, the Group will continue consolidating our position by focusing on our core revenue driver, limestone processing operations. And, stepping up efforts into the development of our new business in the PRC to deliver better value to all our stakeholders.