Aug 13, 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.

UNAUDITED CONSOLIDATED RESULTS FOR THE SECOND QUARTER AND HALF YEAR ENDED 30 JUNE 2004

 

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.1(b)(ii) Aggregate amount of group's borrowings and debt securities.
Amount repayable in one year or less, or on demand



As at 30/06/2004		As at 31/12/2003
Secured	Unsecured	Secured	Unsecured
Nil	Nil	Nil	Nil



Amount repayable after one year



As at 30/06/2004		As at 31/12/2003
Secured	Unsecured	Secured	Unsecured
Nil	Nil	Nil	Nil



Details of any collateral

Not applicable.

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

the corresponding period of the immediately preceding financial year.

UNAUDITED CASH FLOW STATEMENTS FOR THE SECOND QUARTER AND HALF YEAR ENDED
30 JUNE 2004

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.

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.

During the second quarter and first half ended 30 June 2004, the issued capital of the Group and of the Company remained unchanged. No options were granted nor new shares issued pursuant to the employees' 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.

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 methods of computation for the current financial period.

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.

Earnings Per Share

	Group	Group
	6 months ended	6 months ended
	30/06/2004	30/06/2003
Earnings per ordinary share after deducting any provision for preference dividends were:
Based on the weighted average number of ordinary shares in issue; and	1.85 cents	1.97 cents
On a fully diluted basis	1.85 cents	1.97 cents

For comparative purposes, the earnings per ordinary share for the 6 months ended 30 June 2003 is calculated based on the profit for the period of approximately S$6,057,000, divided by the pre-invitation share capital of 307,182,000 shares.

The weighted average number of ordinary shares for the 6 months ended 30 June 2004 is 400,000,000.

There were no potential dilutive ordinary shares.

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.

Net Asset Value

	Group	Group	Company	Company
	30/06/2004	31/12/2003	30/06/2004	31/12/2003
Net asset value per ordinary share based on issued share capital as at the end of the financial period	17.18 cents	15.33 cents	12.04 cents	11.97 cents

The net asset value per ordinary share is calculated based on the issued share capital of 400,000,000 shares.

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.

Profit and Loss Statement

Revenue rose 14% from S$8.4 million for 2Q 2003 to S$9.6 million for 2Q 2004, due to the increase in the number of completed projects. For 1H 2004, revenues were up 19% to S$21 million compared to 1H 2003. Revenue derived from the pharmaceutical industry contributed to about 90% of the total revenue in 1H 2004. Gross margin remained stable at about 46%.

Profit before tax improved marginally by 1% to S$3.3 million in 2Q 2004 vs 2Q 2003 due to lower margins. However profit before tax in 1H 2004 was 8% higher at S$7.1 million due mainly to the rise in other operating income. Other operating income of S$0.4 million was mainly exchange gains and interest income.

In the first six month of 2004, the Group spent about S$1,012,000 on research and development, of which S$386,000 was utilized from the research and development grants. Accordingly, only S$626,000 were charged to the profit and loss statement in 1H 2004. The exchange gain of S$104,000 was due to a stronger US dollar as our billings to customers are in US dollars.

Net profit was up 17% to S$3.4 million in 2Q 2004 compared to 2Q 2003. Net profit for first six months increased 22% to S$7.4 million compared to 1H 2003, due mainly to lower taxation and minority interests as well as maiden contribution from an associated company.

After the acquisition of the remaining 47.9% stake in Suntar Membrane Technology (Xiamen) Co., Ltd in 2Q 2004, the minority interests now pertained to the 49% stake in Suntar Desalination (Xiamen) Co., Ltd.

In December 2003, the Group acquired a 31.8% interest in associate company, Sinopharm Pte Ltd, a company specializing in the research and development, production, sales and marketing of pharmaceutical products in the PRC. For the first six months of the year, the associate company made a maiden contribution of S$0.38 million to the Group's profits.


Balance Sheet

The increase in fixed assets is due to the purchase of plant and machinery in 1H 2004. Profits for the associate company for 1H 2004 contributed to the increase in the investment in associate.

Trade payables decrease due to the reduction in customers' advances. Other payables rose as a result of the Group's acquisition of the remaining 47.9% interest in a subsidiary, Suntar Membrane Technology (Xiamen) Co., Ltd for about $3 million.

The turnover days for trade receivables, payables and inventories have remained stable at 42 days, 40 days and 75 days respectively.

The Group generated a positive cash flow from operations of S$1.4 million in the first six months of the year, compared to a negative cash flow from operations of S$5.7 million previously. However, due to new investments in fixed assets of S$1.9 million, there was a net decrease in cash and cash equivalents of S$400,000 for the period under review. Notwithstanding the decrease, the Group's cash position remained strong and stood at S$51.3 million as at end June 2004.

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

shareholders, any variance between it and the actual results.

There is no variance between the actual results as compared to that disclosed in the previous announcement.

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.

With more players entering the water treatment industry, the Group expects competitive conditions to remain keen. It will continue to strengthen its market niche in the pharmaceutical sector in China by leveraging on its deep understanding of the pharmaceutical industry and developing customized and innovative solutions that meets the unique needs of the industry. The Group has an established track record in the PRC pharmaceutical industry and counts the major players such as the NCPC Group, CSPC Group, Hisun, HPGC Group, JSPC and Lukang Group as its customers. The Group is also expanding its sales and service network for better customer reach and to enhance service levels.

The Group is also actively exploring new strategic opportunities to augment the future growth of the company. Meanwhile the Group is on track to achieve another year of growth in 2004.

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? None

(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 for the second quarter and half year ended 30 June 2004 is recommended.

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.

Only applies to full year results.

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.

Only applies to full year results.

15. A breakdown of sales.

Only applies to full year results.

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	0	0
Total:

Only applies to full year results.

BY ORDER OF THE BOARD

Low Mei Mei Maureen
Company Secretary
13/08/2004