HAAD THIP PUBLIC COMPANY LIMITED INTERIM FINANCIAL STATEMENTS FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997 AND AUDITORS' REPORT EXPRESSED IN Thai Baht The Board of Directors Haad Thip Public Company Limited We have made a review of the balance sheets of Haad Thip Public Company Limited as at September 30, 1998 and 1997, and the related statements of income, retained earnings and changes in shareholders equity for the three-month and nine-month periods then ended and the statements of cash flows for the three-month and nine-month periods ended September 30, 1998, in accordance with standards established by the Institute of Certified Accountants and Auditors of Thailand. A review of interim financial statements consists principally of obtaining an understanding of the system for the preparation of interim financial statements, applying analytical review procedures to financial data, and making inquiries of persons responsiblef or financial and accounting matters. It is substantially less in scope than an examination in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with generally accepted accounting principles. PRASIT MUSIKABHANTU C.P.A. (THAILAND) Registration No. 2675 November 3, 1998 "UNAUDITED" "REVIEWED" HAAD THIP PUBLIC COMPANY LIMITED BALANCE SHEETS SEPTEMBER 30, 1998 AND 1997 A S S E T S In Thousand Baht 1988 1997 CURRENT ASSETS Cash on hand and in banks 10,253 11,614 Accounts and notes receivable - trade (Note 2) 55,509 47,263 Less allowance for doubtful accounts ( 1,128) ( 842) Accounts and notes receivable - trade - net 54,381 46,421 Inventories - net 58,792 57,053 Other current assets Claim and other receivables - net 20,194 31,421 Prepaid expenses 9,113 10,681 Others 259 157 Total other current assets 29,566 42,259 Total Current Assets 152,992 157,347 ADVANCES AND LOANS TO DIRECTORS AND EMPLOYEES 2,437 1,563 INVESTMENT IN SHARES - Net (Note 4) 3,502 3,850 PROPERTY, PLANT AND EQUIPMENT - At Cost; net of accumulated depreciation 657,828 674,574 OTHER ASSETS Promotion materials - net 23,125 25,590 Deferred charges and others 5,119 4,071 Total Other Assets 28,244 29,661 TOTAL ASSETS 845,003 866,995 See accompanying Notes to Interim Financial Statements. "UNAUDITED" "REVIEWED" HAAD THIP PUBLIC COMPANY LIMITED BALANCE SHEETS SEPTEMBER 30, 1998 AND 1997 LIABILITIES AND SHAREHOLDERS'EQUITY In Thousand Baht 1998 1997 CURRENT LIABILITIES Bank overdrafts and loans from financial institutions 50,833 105,408 Accounts payable - trade 109,461 100,271 Current portion of long-term loan 400 6,250 Other current liabilities Accounts payable - others 12,602 13,956 Accrued bonus 19,605 11,525 Income tax payable 27,418 7,460 Others 14,685 15,475 Total other current liabilities 74,310 48,416 Total Current Liabilities 235,004 260,345 DEPOSITS RECEIVED FROM CUSTOMERS AND OTHERS 170,123 168,570 LONG-TERM LOAN - Net of Current Portion 7,597 5,830 Total Liabilities 412,724 434,745 SHAREHOLDERS EQUITY Share capital Authorized - 25,000,000 shares; Baht 10 par value 250,000 250,000 Issued and fully paid up - 16,601,500 shares 166,015 166,015 Premium on share capital 154,727 154,727 Retained earnings Appropriated Legal reserve (Note 5) 11,529 8,587 General reserve 16,000 13,000 Unappropriated 84,008 89,921 Total Shareholders Equity 432,279 432,250 TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 845,003 866,995 See accompanying Notes to Interim Financial Statements. "UNAUDITED" "REVIEWED" HAAD THIP PUBLIC COMPANY LIMITED STATEMENTS OF INCOME FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997 In Thousand Baht Three-Month Periods Nine-Month Periods Ended September 30 Ended September 30 1998 1997 1998 1997 REVENUES Net sales 284,287 294,493 1,111,937 979,352 Other income Reversal of unclaimed customers deposits 2,398 999 7,195 2,995 Others 1,190 1,116 5,595 6,653 Total other income 3,588 2,115 12,790 9,648 Total Revenues 287,875 296,608 1,124,727 989,000 COSTS AND EXPENSES Cost of sales 195,221 183,449 746,366 622,003 Selling and administrative expenses 90,130 84,310 281,454 274,211 Interest expense 1,610 4,313 6,580 12,998 Directors remuneration - 200 - 200 Total Costs and Expenses 286,961 272,272 1,034,400 909,412 INCOME BEFORE INCOME TAX 914 24,336 90,327 79,588 INCOME TAX ( 565) ( 7,460) ( 27,434)( 24,299) NET INCOME 349 16,876 62,893 55,289 Earnings per Share (Baht) 0.02 1.02 3.79 3.33 See accompanying Notes to Interim Financial Statements. "UNAUDITED" "REVIEWED" HAAD THIP PUBLIC COMPANY LIMITED STATEMENTS OF RETAINED EARNINGS FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997 In Thousand Baht Three-Month Periods Nine-Month Periods Ended September 30 Ended September 30 1998 1997 1998 1997 UNAPPROPRIATED RETAINED EARNINGS: Beginning of period 108,561 73,045 73,919 52,083 Less appropriation of net income for previous year: (Note 5) Legal reserve - - - ( 849) General reserve - - ( 3,000) - Dividends - - ( 24,902) ( 16,602) Net income for the period 349 16,876 62,893 55,289 Less appropriation of net income for this year: (Note 5) Dividends ( 24,902) - ( 24,902) - Total Unappropriated Retained Earnings 84,008 89,921 84,008 89,921 APPROPRIATED RETAINED EARNINGS: Legal reserve 11,529 8,587 11,529 8,587 General reserve 16,000 13,000 16,000 13,000 Total Appropriated Retained Earnings 27,529 21,587 27,529 21,587 TOTAL RETAINED EARNINGS 111,537 111,508 111,537 111,508 See accompanying Notes to Interim Financial Statements. "UNAUDITED" "REVIEWED" HAAD THIP PUBLIC COMPANY LIMITED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 1998 AND 1997 In Thousand Baht Three-Month Periods Nine-Month Periods Ended September 30 Ended September 30 1998 1997 1998 1997 SHARE CAPITAL Common shares Balance, beginning of period 166,015 166,015 166,015 166,015 Increase during the period - - - - Balance, end of period 166,015 166,015 166,015 166,015 PREMIUM ON SHARE CAPITAL Balance, beginning of period 154,727 154,727 154,727 154,727 Increase during the period - - - - Balance, end of period 154,727 154,727 154,727 154,727 RETAINED EARNINGS Appropriated Legal reserve Balance, beginning of period 11,529 8,587 11,529 7,737 Increase during the period (Note 5) - - - 850 Balance, end of period 11,529 8,587 11,529 8,587 General reserve Balance, beginning of period 13,000 13,000 13,000 13,000 Increase during the period (Note 5) 3,000 - 3,000 - Balance, end of period 16,000 13,000 16,000 13,000 Unappropriated Balance, beginning of period 108,561 73,045 73,919 52,083 Increase during the period 349 16,876 62,893 55,289 Decrease during the period ( 24,902) - ( 52,804) ( 17,451) Balance, end of period 84,008 89,921 84,008 89,921 TOTAL SHAREHOLDERS EQUITY 432,279 432,250 432,279 432,250 See accompanying Notes to Interim Financial Statements. 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