Investor Relations: News

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.

(i) The directors of Radiance Electronics Limited are pleased to announce the financial statement on consolidated results for the first half year ended 31 December 2003. These figures have not been audited.

Unaudited Income Statement for the first half year ended 31 December 2003	Group S$'000		Increase / (Decrease) %
	31/12/03	31/12/02	Change
Revenue	27,012	48,918	-44.8
Cost of sales	(23,700)	(41,052)	42.3
Gross profit	3,312	7,866	-57.9

Other operating income	505	23	2,095.6
Distribution costs	(27)	0	-
Administrative expenses	(2,247)	(2,499)	10.1
Other operating expenses	(185)	(486)	61.9
Operating profit	1,358	4,904	-72.3

Finance income	15	20	-25.0
Finance costs	(81)	(44)	-84.1
Profit before income tax	1,292	4,880	-73.5

Income tax	139	(1,077)	n.a.
Profit attributable to members of the Company	1,431	3,803	-62.4

(ii) Notes to income statement:

Item No	Description	Group
		S$'000		%
		31/12/2003	31/12/2002	Change
(A)	Investment income	-	-	-
(B)	Other income including interest income	442	43	927.9
(C)	Interest on borrowings	(81)	(44)	-84.1
(D)	Depreciation and amortisation	(1,131)	(1,211)	6.6
(E)	Allowance for doubtful debts	(46)	(422)	89.1
(F)	Write-off for stock obsolescence	(135)	-	-
(G)	Foreign exchange loss	(138)	-	-
(H)	Loss on sale of plant and equipment	-	(64)	-
(I)	Adjustments to income tax for rebate received in respect of prior year	581	-	-

(B) Included in Other income was a cash subsidy (the "Subsidy") amounting to an equivalent of S$410,000 received in September 2003 by our Shanghai subsidiary
("Radiance Shanghai"). The Subsidy was given in respect of calendar year 2002. Radiance Shanghai qualified for the Subsidy, which was given by the Shanghai High Technology Certification Office, because it was awarded the High Technology Enterprise Award (the "Award") in November 2001. The Award was given in recognition of Radiance Shanghai's efforts in importing advanced technology into the PRC.

(I) Included in Income tax was a credit adjustment for a cash tax rebate (the "Tax Rebate") amounting to an equivalent of S$581,000 received in November 2003 by Radiance Shanghai. The Tax Rebate was given in respect of calendar year 2002. Radiance Shanghai qualified for the Tax Rebate, which was given by the Shanghai Tax Authority, because it was awarded the Export Oriented Enterprise status (the "Status") for calendar year 2002. The Status was awarded because in calendar year 2002, more than 70% of Radiance Shanghai's sales were exported out of the PRC.

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.

Unaudited Balance Sheets as at 31 December 2003	Group S$'000		Company S$'000
	31/12/03	30/06/03	31/12/03	30/06/03
Non-Current Assets
Plant and equipment	10,561	10,773	-	-
Goodwill (negative)	(704)	(782)	-	-
Subsidiary companies	-	-	22,185	20,204
Investment	1,092	-	-	-
	10,949	9,991	22,185	20,204

Current Assets
Due from subsidiary companies	-	-	3,090	1,574
Inventories	5,567	4,064	-	-
Trade receivables	19,091	13,496	-	-
Other receivables	971	1,147	66	600
Cash and cash equivalents	22,450	19,363	1,282	5,550
	48,079	38,070	4,438	7,724

Current Liabilities
Trade payables	13,564	9,701	-	-
Other payables (Note A)	4,898	4,962	1,053	1,905
Due to subsidiary companies	-	-	-	3
Due to related company - trade	55	14	-	-
Obligations under hire purchase	48	48	-	-
Term loans	9,390	2,818	-	-
Provision for income tax	558	512	3	8
	28,513	18,055	1,056	1,916

Net Current Assets	19,566	20,015	3,382	5,808

Non-Current Liabilities
Obligations under hire purchase	150	174	-	-
	30,365	29,832	25,567	26,012

Financed by:
Share capital	23,828	23,828	23,828	23,828
Reserves	6,537	6,004	1,739	2,184
	30,365	29,832	25,567	26,012

Note A: Other payables

	Group S$'000		Company S$'000
	31/12/03	30/06/03	31/12/03	30/06/03
Accrued operating expenses	3,541	4,153	945	1,575
Amounts owing to suppliers of machinery and equipment	26	35	26	35
Other creditors	1,331	774	82	295
	4,898	4,962	1,053	1,905

1(b)(ii) Aggregate amount of group's borrowings and debt securities.

Amount repayable in one year or less, or on demand

As at 31/12/03

As at 30/06/03

Secured	Unsecured	Secured	Unsecured

S$'000 48	S$'000 9,390	S$'000 48	S$'000 2,818

Amount repayable after one year

As at 31/12/03

As at 30/06/03

Secured	Unsecured	Secured	Unsecured

S$'000 150	S$'000 -	S$'000 174	S$'000 -

Details of any collateral

The secured borrowings relate to obligations under hire purchase and are collaterised by the assets bought under hire purchase.

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

the corresponding period of the immediately preceding financial year.

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF YEAR ENDED 31 DECEMBER 2003

	HY2004 S$'000	HY2003 S$'000
Cash Flows from Operating Activities
Profit before income tax	1,292	4,880
Adjustments for:
Depreciation of plant and equipment	1,209	1,211
Loss on disposal of plant and equipment	-	64
Intangible written off	(78)	-
Interest expense	81	44
Interest income	(15)	(20)
Operating profit before working capital changes	2,489	6,179
(Increase)/decrease in working capital:
Inventories	(1,503)	(1,256)
Receivables	(5,419)	(11,714)
Creditors	3,799	8,394
Related parties	41	(1,510)
Cash (used in)/generated from operating activities	(593)	93
Income tax paid	(396)	(268)
Prior year tax rebate received	581	-
Interest paid	(81)	(44)
Net cash used in operating activities	(489)	(219)

Cash Flows from Investing Activities
Interest received	15	20
Purchase of plant and equipment	(1,332)	(1,210)
Proceeds from disposal of plant and equipment	-	-
Investment in unquoted shares	(1,092)	-
Net cash used in investing activities	(2,409)	(1,190)

Cash Flows from Financing Activities
Repayment of borrowings	-	(43)
Repayment of hire purchase creditors	(24)	-
Funds from borrowings	6,572	-
Net cash generated from/(used in) financing activities	6,548	(43)

Effect of foreign exchange rate changes on consolidation	(563)	(206)
Net increase/(decrease) in cash and cash equivalents	3,087	(1,658)
Cash and cash equivalents at the beginning of the period	19,363	10,052
Cash and cash equivalents at the end of the period (Note A)	22,450	8,394

Notes to Consolidated Cash Statement

Note A: Cash and Cash Equivalents

Cash and cash equivalents included in the consolidated statement of cash flows comprise the following balance sheet amounts:

	31/12/03	31/12/02
	S$'000	S$'000
Cash and bank balances	14,893	5,618
Fixed deposits	7,557	2,776
	22,450	8,394

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.

GROUP	Share Capital S$'000	Share Premium S$'000	Other Capital Reserve S$'000	Foreign Currency Translation Reserve S$'000	Retained Profit S$'000	Total S$'000
Balance as at 1 July 2002	20,203	-	-	-	772	20,975
Loss not recognised in the profit and loss accounts - Translation loss	-	-	-	(359)	-	(359)
Net profit for the period	-	-	-	-	3,803	3,803
Balance as at 31 December 2002	20,203	-	-	(359)	4,575	24,419

Balance as at 1 July 2003	23,828	1,065	333	33	4,573	29,832
Loss not recognised in the profit and loss accounts - Translation loss	-	-	-	(898)	-	(898)
Net profit for the period	-	-	-	-	1,431	1,431
Balance as at 31 December 2003	23,828	1,065	333	(865)	6,004	30,365

COMPANY	Share Capital S$'000	Share Premium S$'000	Retained Profit S$'000	Total S$'000
Balance as at 1 July 2002	20,203	-	(7)	20,196
Net profit for the period	-	-	22	22
Balance as at 31 December 2002	20,203	-	15	20,218

Balance as at 1 July 2003	23,828	1,065	1,119	26,012
Net profit for the period	-	-	(445)	(445)
Balance as at 31 December 2003	23,828	1,065	674	25,567

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.

There were no changes in the Company's share capital since the end of the previous period reported on.

2. Whether the figures have been audited or reviewed and in accordance with

which auditing standard or practice.

These 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 Company has applied the same accounting policies and methods of computations as in the Company's audited financial statements for the year ended 30 June 2003.

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 based on profit attributable to Shareholders after deducting any provision for preference dividends:	Period ended 31/12/2003	Period ended 31/12/2002
Based on existing issued share capital	0.75 cents	2.35 cents
Based on fully diluted basis	NA	NA

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 per ordinary share based on issued share capital:	As at 31/12/2003	As at 30/06/2003
For the Company	13.4 cents	13.6 cents
For the Group	15.9 cents	15.6 cents

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.

For the first half year ended 31 December 2003 ("1H-FY04"), the Group recorded a turnover of S$27.0 million, a decrease of 45% over the previous first half year ("1H-FY03"). However, compared to the preceding half year ended 30 June 2003 ("2H-FY03"), the decrease was 27%. This decrease was attributable mainly to reduction in orders from Channel Master in 1H-FY04, which was in our satellite communications ("SC") business segment, partially offset by increase in turnover in our computer peripherals ("CP") business segment.

The SC business segment accounted for 64% of Group turnover in 1H-FY04 against 84% in 1H-FY03; while the remaining turnover was contributed from the CP business segment, which has a lower gross margin. Consequently, the Group's gross margin fell to 12% in 1H-FY04 from 16% in 1H-FY03.

Income tax charge was in respect of Radiance Shanghai's taxable income. As noted in paragraph 1(a)(ii) above, included in Income tax was the Tax Rebate of S$581,000. Excluding the Tax Rebate, the income tax charge for 1H-FY04 was S$442,000. As previously explained that though Radiance Shanghai was subjected to a 15% income tax rate, the Group recorded a higher effective income tax charge due to non-deductibility of certain expenses and non-availability of cross-border group-wide set-off.

The net increase in trade receivables of S$5.6 million in 1H-FY04 was due to increase in receivables from customers excluding receivables from Channel Master, which Management has initiated plans to secure collection.

During 1H-FY04, Radiance Shanghai took an additional S$6.6 million loan to strengthen its working capital ahead of anticipated orders from a new customer in the CP business.

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

shareholders, any variance between it and the actual results.

No forecast has been previously disclosed to shareholders.

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.

Despite the Group continuing to operate in a very competitive business environment, Management expects overall business sentiment to improve for the remaining period of FY04 due to significant increases in orders from our customers in this third quarter of FY04. Barring unforseen circumstance, Management expects an improved performance in this second half year over the first half year.

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 has been declared for the period ended 31 December 2003.

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.

Not Applicable

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.

Not Applicable

15. A breakdown of sales.

Not Applicable

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:

BY ORDER OF THE BOARD

Cheng Swee Ain
Finance Director
27/02/2004

Half Year Financial Statement For The Period Ended 31/12/03