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 full year ended 30 June 2004 ("FY04"). These figures have not been audited.

Unaudited Income Statement for the year ended 30 June 2004	Group S$'000		Increase / (Decrease) %
	1/07/03 to 30/06/04	25/03/02 to 30/06/03	Change
Revenue	90,738	85,788	5.8
Cost of sales	(75,455)	(72,423)	-4.2
Gross profit	15,283	13,365	14.4

Other operating income	583	2	29,050
Distribution costs	(49)	0	-
Administrative expenses	(5,036)	(4,721)	-6.7
Other operating expenses	(5,142)	(1,758)	-192.5
Operating profit	5,639	6,888	-18.1

Finance income	31	36	-13.9
Finance costs	(140)	(81)	-72.8
Profit before income tax	5,530	6,843	-19.2

Income tax	(1,045)	(1,937)	46.1
Profit attributable to members of the Company	4,485	4,906	-8.6

(ii) Notes to income statement:

Item No.	Description	Group
		S$'000		%
		1/07/03 to 30/06/04	25/03/03 to 30/06/03	Change
(A)	Investment income	-	-	-
(B)	Other income including interest income	458	38	1,105.3
(C)	Interest on borrowings	(140)	(81)	-72.8
(D)	Depreciation and amortisation	(2,358)	(2,390)	1.3
(E)	Allowance for doubtful debts	(4,890)	(1,556)	-214.3
(F)	Write-off for stock obsolescence	(268)	(367)	27.0
(G)	Foreign exchange loss	(224)	(44)	-409.1
(H)	Loss on sale of plant and equipment	(16)	(158)	89.9
(I)	Adjustments to income tax for rebate received in respect of prior years	581	-	-

( B ) As reported in the first half year of FY04 ("1HY04"), included in other income was a cash subsidy of some S$0.4 million received in September 2003 by our subsidiary in Shanghai ("Radiance Shanghai") from the Shanghai High Technology Certification office.

( E ) Allowance for doubtful debts comprises a general provision of S$0.6 million and a specific provision of S$4.3 million in respect of the remaining trade receivable due from Channel Master.

( I ) As reported in 1HY04, income tax includes a rebate of some S$0.6 million received in November 2003 by Radiance Shanghai from the Shanghai Tax Authority.

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 Sheet as at 30 June 2004	Group S$'000		Company S$'000
	30/06/04	30/06/03	30/06/04	30/06/03
Non-Current Assets
Plant and equipment	16,672	10,773	-	-
Goodwill (negative)	(626)	(782)	-	-
Subsidiary companies	-	-	23,186	20,204
Investment	1,092	-	-	-
	17,138	9,991	23,186	20,204

Current Assets
Due from subsidiary companies	-	-	2,325	1,574
Inventories	13,358	4,064	-	-
Trade receivables	21,202	13,496	-	-
Other receivables	2,838	1,147	16	600
Cash and cash equivalents	18,683	19,363	1,038	5,550
	56,081	38,070	3,379	7,724

Current Liabilities
Trade payables	33,096	9,701	-	-
Other payables	4,491	4,962	687	1,905
Due to subsidiary companies	-	-	-	3
Due to related company - trade	91	14	-	-
Obligations under hire purchase	48	48	-	-
Term loans	2,602	2,818	-	-
Provision for income tax	1,256	512	18	8
	41,584	18,055	705	1,916

Net Current Assets	14,497	20,015	2,674	5,808

Non-Current Liabilities
Obligations under hire purchase	127	174	-	-
	31,508	29,832	25,860	26,012

Financed by:
Share capital	23,828	23,828	23,828	23,828
Reserves	7,680	6,004	2,032	2,184
	31,508	29,832	25,860	26,012

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

Amount repayable in one year or less, or on demand

As at 30/06/04

As at 30/06/03

Secured	Unsecured	Secured	Unsecured

S$'000 48	S$'000 2,602	S$'000 48	S$'000 2,818

Amount repayable after one year

As at 30/06/04

As at 30/06/03

Secured	Unsecured	Secured	Unsecured

S$'000 127	S$'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 YEAR ENDED 30 JUNE 2004

	Year ended 30/06/04 S$'000	Period from 25/03/02 to 30/06/03 S$'000
Cash Flows from Operating Activities
Profit before income tax	5,530	6,843
Adjustments for:
Depreciation of plant and equipment	2,514	2,390
Loss on disposal of plant and equipment	-	91
Property, plant and equipment written off	16	67
Amortisation of goodwill	(156)	-
Interest expense	140	81
Interest income	(31)	(36)
Operating profit before working capital changes	8,013	9,436
Changes in working capital:
Inventories	(9,267)	44
Receivables	(12,883)	(1,538)
Creditors	23,160	1,687
Related parties	77	(1,593)
Cash generated from operating activities	9,100	8,036
Income tax paid	(959)	(1,937)
Prior year tax rebate received	581	-
Interest paid	(140)	(81)
Net cash generated from operating activities	8,582	6,018

Cash Flows from Investing Activities
Interest received	31	36
Purchase of plant and equipment	(5,188)	(2,121)
Proceeds from disposal of plant and equipment	-	170
Acquisition of long term other investments	(1,092)	-
Acquisition of interest in subsidary, net of cash acquired	-	10,044
Net cash (used in)/generated from investing activities	(6,249)	8,129

Cash Flows from Financing Activities
Repayment of borrowings	(216)	-
Dividend Payout	(2,478)	-
Repayment of hire purchase creditors	(47)	(16)
Proceeds from issue of shares, net of share issue expenses	-	5,199
Net cash (used in)/generated from financing activities	(2,741)	5,183

Effect of foreign exchange rate changes on consolidation	(272)	33
Net (decrease)/increase in cash and cash equivalents	(680)	19,363
Cash and cash equivalents at the beginning of the period	19,363	-
Cash and cash equivalents at the end of the period (Note A)	18,683	19,363

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:

	As at 30/06/04 S$'000	As at 30/06/03 S$'000
Cash and bank balances	17,998	15,926
Fixed deposits	685	3,437
	18,683	19,363

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 25 March 2002	-	-	-	-	-	-
Issue of new ordinary Shares	23,828	-	-	-	-	23,828
Premium arising on issue of new ordinary Shares	-	2,465	-	-	-	2,465
Share Issue expenses	-	(1,400)	-	-	-	(1,400)
Transfer to other capital reserve in accordance with statutory requirement	-	-	333	-	(333)	-
Gain not recognised in the profit and loss accounts - Translation Gain	-	-	-	33	-	33
Net profit for the period	-	-	-	-	4,906	4,906
Balance as at 30 June 2003	23,828	1,065	333	33	4,573	29,832

Balance as at 1 July 2003	23,828	1,065	333	33	4,573	29,832
Write-back of over provision of share issue expenses	-	236	-	-	-	236
Transfer to other capital reserve in accordance with statutory requirement	-	-	394	-	(394)	-
Loss not recognised in the profit and loss accounts - Translation loss	-	-	-	(567)	-	(567)
Dividend declared and paid	-	-	-	-	(2,478)	(2,478)
Net profit for the year	-	-	-	-	4,485	4,485
Balance as at 30 June 2004	23,828	1,301	727	(534)	6,186	31,508

COMPANY	Share Capital S$'000	Share Premium S$'000	Retained Profit S$'000	Total S$'000
Balance as at 25 March 2002	-	-	-	-
Issue of new ordinary shares	23,828	-	-	23,828
Premium arising on issue of new ordinary shares	-	2,465	-	2,465
Shares issues expenses	-	(1,400)	-	(1,400)
Net Profit for the period	-	-	1,119	1,119
Balance as at 30 June 2003	23,828	1,065	1,119	26,012

Balance as at 1 July 2003	23,828	1,065	1,119	26,012
Write-back of over provision of share issue expenses	-	236	-	236
Dividend declared and paid	-	-	(2,478)	(2,478)
Net profit for the year	-	-	2,090	2,090
Balance as at 30 June 2004	23,828	1,301	731	25,860

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 period 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:	Year ended 30/06/04	Period from 25/03/02 to 30/06/03
Based on existing issued share capital:	2.35 cents	3.63 cents
Based on fully diluted basis:	2.35 cents	3.63 cents

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 30/06/04	As at 30/06/03
For the Company	13.6 cents	13.6 cents
For the Group	16.5 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.

In the second half year ended 30 June 2004 ("2HY04"), the Group's revenue increased by 136% to S$63.7 million from S$27.0 million in the first half year ("1HY04"). This was due mainly to a significant increase in turnover from the satellite communications segment in Radiance Shanghai as well as an increase in turnover in the non-satellite segments in both Radiance Shanghai and Radiance Shenzhen. Overall, the Group's full year revenue for FY04 grew by 5.8% to S$90.7 million compared to the previous period's revenue ("FY03") of S$85.8 million.

Gross profit increased to S$15.3 million in FY04 from S$13.4 million in FY03 on the back of higher revenue and higher value added products. Similarly, gross margin increased to 16.8% in FY04 against 15.6% in FY03. As revenue increased 136% in the second half year, coupled with higher value added products, 2HY04 recorded a gross profit of S$12.0 million, compared to S$3.3 million in 1HY04. Equally, gross margin improved to 18.8% in 2HY04 against 12.3% in 1HY04.

As announced in October 2003, Channel Master ("CM"), our then key customer filed for a bankruptcy petition under Chapter 11 in the United States Bankruptcy Court. In December 2003, certain business assets of CM was bought by Andrew Corporation ("AC"). Radiance Shanghai continued to make shipments to both CM and AC, but on a reduced scale. As at 30 June 2004, the Group had no more business dealings with CM. Consequently, management took a prudent step and made a full provision of S$4.3 million against the remaining trade recievable due from CM.

During the 1HY04, Radiance Shanghai took an additional S$6.6 million loan to cater for anticipated increased orders in the second half year. This loan was repaid in 2HY04.

Due to increase in revenue, profit after tax improved significantly to S$3.1 million in 2HY04 from S$1.4 million in 1HY04. Overall, the Group recorded a full year profit after tax of S$4.5 million,slightly lower than the S$4.9 million achieved in FY03.

Almost two thirds of the 2HY04 revenue was recorded in the last three months of FY04. Consequently, the balances in inventories, trade receivables and trade payables were significantly higher at the year end.

Significant increase in customers' orders was anticipated at the beginning of 2HY04. The Group has invested in capital expenditure in setting up our Shenzhen plant and in additions also invested in SMT and test equipment in Radiance Shanghai during 2HY04 to cope with the increased orders.

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

shareholders, any variance between it and the actual results.

We announced in 1HY04 that management expected an improvement in performance in the second half year of FY04. That expectation was met, with revenue and profit after tax increasing by 136% and 113% respectively in the 2HY04 compared with 1HY04.

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.

High oil prices will result in higher operating and material costs which may slow down the anticipated global economic recovery. To curb the increased electricity usage during the summer months, many Chinese industrial areas are faced with periodic power stoppages resulting in temporary plant shutdowns. Fortunately, both our plants in Shanghai and Shenzhen have so far been minimally affected by these power stoppages. As the summer heat recedes, the risk of power stoppage will correspondingly decrease.

The increased orders in the 2HY04 will be sustained in 1HY05. Barring unforeseen circumstances, we expect FY05 to be a profitable year and performance in 1HY05 to be comparable to 2HY04.

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on? Yes

Name of Dividend	Interim (paid)	Final (proposed)
Dividend Type	Cash	Cash
Dividend Amount per Share (in cents)	1.3 cents (one-tier tax)	0.2 cents (one-tier tax)
Optional:- Dividend Rate (in %)	10.4 %	1.6 %
Par value of shares	S$0.125	S$0.125
Tax Rate	Nil	Nil

(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

To be advised

(d) Books closure date

To be advised

12. If no dividend has been declared/recommended, a statement to that effect.

Not applicable.

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.

(a) Primary Reporting Format - Business Segments

The business of the Group is organised into the following products segments:

satellite communications ("SC")
computer peripherals ("CP")
other products ("OP")

M & I - represents management activities and investment

Year ended 30 June 2004	SC	CP	OP	M & I	Elimination	Consolidated
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000

External revenue	66,673	17,469	6,596	-	-	90,738
Inter-segment revenue	-	-	-	6,743	(6,743)	-
Total revenue	66,673	17,469	6,596	6,743	(6,743)	90,738

Segment results	5,782	1,229	257	4,958	(6,587)	5,639

Finance cost						(140)
Finance income						31
Taxation						(1,045)
Net profit for the year						4,485
Other Information
Depreciation	1,927	356	194	37	-	2,514
Capital expenditure - unallocated						8,657
Other significant non-cash expense	4,771	15	104	-	-	4,890

Assets and liabilities

Unallocated assets						73,219
Total assets						73,219

Unallocated liabilities						41,711
Total liabilities						41,711

Period from 25 March 2002 to 30 June 2003	SC	CP	OP	M & I	Elimination	Consolidated
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000

External revenue	75,701	9,491	596	-	-	85,788
Inter-segment revenue	-	-	-	5,720	(5,720)	-
Total revenue	75,701	9,491	596	5,720	(5,720)	85,788

Segment results	7,197	795	63	3,833	(5,000)	6,888

Finance cost						(81)
Finance income						36
Taxation						(1,937)
Net profit for the period						4,906
Other Information
Depreciation	2,126	235	19	10	-	2,390
Capital expenditure - unallocated						2,359
Other significant non-cash expense	1,556	-	-	-	-	1,556

Assets and liabilities

Unallocated assets						48,061
Total assets						48,061

Unallocated liabilities						18,229
Total liabilities						18,229

(b) Secondary Reporting Format - Geographical Segments

In presenting information on the basis of geographical segments, segment revenue is based on the location of the customers. Segment assets are based on the geographical location of the assets.

Year ended 30 June 2004	Asean S$'000	North America S$'000	Europe S$'000	Others (principally Hong Kong and China) S$'000	Elimination S$'000	Consolidated S$'000
Total revenue from external customers	10,372	7,949	66,089	6,328	-	90,738
Total assets	2,595	-	-	70,624	-	73,219
Capital expenditure	26	-	-	8,631	-	8,657

Period from 25 March 2002 to 30 June 2003	Asean S$'000	North America S$'000	Europe S$'000	Others (principally Hong Kong and China) S$'000	Elimination S$'000	Consolidated S$'000
Total revenue from external customers	-	60,620	24,546	622	-	85,788
Total assets	7,399	-	-	40,662	-	48,061
Capital expenditure	298	-	-	2,061	-	2,359

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.

In keeping with the Group's plans on diversification of product range and customer base, the Group has achieved in FY04 increased revenue in both the CP and OP segments. The total revenue in these two segments rose from S$10.1 million in FY03 to S$24.1 million in FY04, an increase of 139%. As a percentage of total Group revenue, these two segments accounted for 27% in FY04, compared to 12% in FY03. Correspondingly, operating profit in these two segments rose to 26% of the operating profit in FY04, against 12% in FY03.

The reduction in orders from Channel Master, a North American customer, was offset by increased orders from Global Communications, our Europe based customer. Revenue in Asean and Others geographical segments was predominantly from new customers in the SC and OP segments.

15. A breakdown of sales.

		Year ended 30 June 2004 S$'000	Period from 25 March 2002 to 30 June 2003 S$'000	% Increase/ (Decrease)
(a)	Turnover reported for first half year	27,012	48,918	(44.8)
(b)	Operating profit after tax for the first half year	1,431	3,803	(62.4)
(c)	Turnover reported for second half year	63,726	36,870	72.8
(d)	Operating profit after tax for the second half year	3,054	1,103	176.9

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 (FY04 (S$'000))	Previous Full Year (FY03 (S$'000))
Ordinary	2,859	0
Preference	0	0
Total:	2,859	0

BY ORDER OF THE BOARD

Cheng Swee Ain
Finance Director
26/08/2004

Full Year Financial Statement And Dividend Announcement For The Period Ended 30/06/2004