VITROX CORPORATION BERHAD

INTERIM FINANCIAL REPORT

FOR THE SECOND
QUARTER ENDED 30 JUNE 2011
 ViTrox Corporation Berhad
(Company No. 649966-K)
(Incorporated in Malaysia)

Quarterly report on results for the Second Quarter ended 30 June 2011
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(The figures have not been audited)

INDIVIDUAL QUARTER CUMULATIVE QUARTER

Preceding year Preceding year
Current period corresponding Current period corresponding
quarter quarter to date period
Jun 30, 11 Jun 30, 10 Jun 30, 11 Jun 30, 10
RM'000 RM'000 RM'000 RM'000

Revenue 27,105 26,120 48,793 39,104

Other operating income 889 180 1,052 345

Operating expenses (19,198) (16,223) (34,484) (24,875)

Profit before tax 8,796 10,077 15,361 14,574

Tax expense (109) (203) (249) (305)

Net profit for the period 8,687 9,874 15,112 14,269

Other comprehensive income:

Currency translation of
differences for foreign operations 1 0 0 0

Total comprehensive income

for the period 8,688 9,874 15,112 14,269

Earnings Per Ordinary Share

attributable to ordinary equity holders
of the Company (sen)
- Basic 5.60 * 6.48 9.75 9.36

- Diluted N/A N/A N/A N/A

* Basic EPS is calculated based on weighted average number of 155,000,000 ordinary shares (before the bonus issue
at 1:2 completed on 18 July 2011).

The Condensed Consolidated Statement of Comprehensive Income should be read in conjunction with the
audited financial statements for the year ended 31 December 2010 and the accompanying explanatory notes
attached to the interim financial statement.
 ViTrox Corporation Berhad
(Company No. 649966-K)
(Incorporated in Malaysia)

Quarterly report on results for the Second Quarter ended 30 June 2011
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Unaudited Audited
As at As at
Jun 30, 11 Dec 31, 10
RM'000 RM'000
ASSETS
Non-current assets
Property, plant and equipment 18,181 13,412
Investment properties 600 600
Investments in club membership - at cost 91 91
Development expenditure 3,765 3,941
22,637 18,044

Current assets
Inventories 17,773 14,053
Trade and other receivables 33,862 18,134
Prepayments 689 311
Current tax assets 0 21
Cash and cash equivalents 37,096 43,403
89,420 75,922

TOTAL ASSETS 112,057 93,966

EQUITY AND LIABILITIES

Capital and reserves attributable to equity holders

of the Company

Share capital 15,500 15,500

Less: Treasury shares, at cost 0 -1,022
Reserves 76,931 61,806
Total equity 92,431 76,284

Non-current liabilities
Deferred tax liabilities 450 450
Deferred Income 816 523
Total non-current liabilities 1,266 973

Current liabilities
Trade and other payables 12,642 11,275
Financial liabilities at fair value through profit or loss 441 0
Advance payment from customers 498 696
Current tax liabilities 129 169
Dividend payable 4,650 4,569
Total current liabilities 18,360 16,709

Total liabilities 19,626 17,682

TOTAL EQUITY AND LIABILITIES 112,057 93,966

Net assets value per share attributable to ordinary

equity holders of the parent (sen)* 59.63 * 50.09

* Net assets value is calculated based on 155,000,000 ordinary shares (before the bonus issue at 1:2
completed on 18 July 2011).

The Condensed Consolidated Statement of Financial Position should be read in conjunction with the
audited financial statements for the year ended 31 December 2010 and the accompanying
explanatory notes attached to the interim financial statements.
 ViTrox Corporation Berhad
(Company No. 649966-K)
(Incorporated in Malaysia)

Quarterly report on results for the Second Quarter ended 30 June 2011
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(The figures have not been audited)

Currency
Share Treasury Share Translation Retained Total
Capital Share Premium Reserve Profits Equity
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Period ended 30 June 2011

Balance as at 1 January 2011 15,500 -1,022 1,222 -4 60,588 76,284

Purchase of own shares 0 -250 0 0 0 -250

Reissue of treasury shares 0 1,272 4,663 0 0 5,935

Dividends 0 0 0 0 -4,650 -4,650

Total comprehensive income for the period 0 0 0 0 15,112 15,112

Balance as at 30 June 2011 15,500 0 5,885 -4 71,050 92,431

Period ended 30 June 2010

Balance as at 1 January 2010 15,500 -853 1,222 -3 33,344 49,210

Purchase of own shares 0 0 0 0 0 -169

Total comprehensive income for the period 0 0 0 0 14,269 14,269

Balance as at 30 June 2010 15,500 -853 1,222 -3 47,613 63,310

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the audited financial
statements for the year ended 31 December 2010 and the accompanying explanatory notes attached to the interim financial
statements.
 ViTrox Corporation Berhad
(Company No. 649966-K)
(Incorporated in Malaysia)

Quarterly report on results for the Second Quarter ended 30 June 2011
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(The figures have not been audited)
Period ended Period ended
Jun 30, 11 Jun 30, 10
RM'000 RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax 15,361 14,574

Adjustments for :
Amortisation of deferred income -245 -5
Amortisation of development expenditure 251 285
Depreciation of property, plant and equipment 500 440
Interest income -349 -266
Unrealised loss on financial instruments at fair value
through profit or loss 441 0
Unrealised loss/(gain) on foreign exchange 184 -57
Operating profit before working capital changes 16,143 14,971
Changes in:
Inventories and receivables -19,971 -22,904
Payables and advance payments 1,155 11,678
Cash (absorbed by)/generated from operations -2,673 3,745
Income tax paid -268 -75
Net cash (used in)/from operating activities -2,941 3,670

CASH FLOWS FROM INVESTING ACTIVITIES

Additions of development expenditure -75 -2,320
Grant received 517 0
Interest received 345 266
Proceed from disposal of property, plant and equipment 0 3
Purchase of property, plant and equipment -5,269 -164
Net cash used in investing activities -4,482 -2,215

CASH FLOWS FROM FINANCING ACTIVITIES

Dividend paid -4,569 0
Purchase of own shares -250 -169
Reissue of treasury shares 5,935 0
Net cash from/(used in) financing activities 1,116 -169

Currency translation differences 0 0

Net (decrease)/increase in cash and cash equivalents -6,307 1,286

Cash and cash equivalents at beginning of period 43,403 27,683

Cash and cash equivalents at end of period 37,096 28,969

Cash and cash equivalents consist of:

Highly liquid investments 3,393 2,322
Term deposits with licensed banks 27,135 22,508
Cash and bank balances 6,568 4,139
37,096 28,969

The Condensed Consolidated Statement of Cash Flows should be read in conjunction with the audited
financial statements for the year ended 31 December 2010 and the accompanying explanatory notes
attached to the interim financial statements.
 ViTrox Corporation Berhad
(Company No. 649966-K)
(Incorporated in Malaysia)

Quarterly report on results for the Second Quarter ended 30 June 2011

A NOTES TO THE INTERIM FINANCIAL REPORT

A1 Basis of preparation of Interim Financial Report

The interim financial report is unaudited and has been prepared in compliance with FRS 134, "Interim Financial Reporting", issued
by the Malaysian Accounting Standards Board ("MASB") and the disclosure requirements as set out in Appendix 9B of the Listing
Requirements of Bursa Malaysia Securities Berhad for the Main Market ("Main Market Listing Requirements").

The interim financial report should be read in conjunction with the audited financial statements for the year ended 31 December
2010. These explanatory notes attached to the interim financial report provide an explanation of events and transactions that are
significant to an understanding of the changes in the financial position and performance of the Group since the year ended 31
December 2010.

The accounting policies and methods of computation adopted for the interim financial report are consistent with those adopted by
the Group in the audited financial statements for the year ended 31 December 2010, except for the adoption of the following new
Financial Reporting Standards ("FRSs") and Issues Committee Interpretations ("IC Interpretations") effective for the financial
period beginning on or after 1 March 2010 :-

Effective for
financial periods
FRS beginning on or after

Amendments to FRS 1 Limited Exemption from Comparative FRS 7 Disclosures for First-time Adopters 1 January 2011
Amendments to FRS 1 Additional Exemptions for First-time Adopters 1 January 2011
Amendments to FRS 2 Share-based Payment 1 July 2010
Amendments to FRS 2 Group Cash-settled Share-based Payment Transactions 1 January 2011
Amendments to FRS 5 Non-current Assets Held for Sale and Discontinued Operations 1 July 2010
Amendments to FRS 7 Improving Disclosure about Financial Instruments 1 January 2011
Amendments to FRS 132 Financial Instruments: Presentation 1 March 2010
Amendments to FRS 138 Intangible Assets 1 July 2010
Amendments to IC Interpretation 9 Reassessment of Embedded Derivatives 1 July 2010
Amendments to IC Interpretation 14 Prepayments of a Minimum Funding Requirement 1 July 2011
Amendments to FRSs contained in the document entitled "improvements to FRSs (2010)" 1 January 2011
FRS 1 First-time Adoption of Financial Reporting Standards (revised in 2010) 1 July 2010
FRS 3 Business Combinations (revised in 2010) 1 July 2010
FRS 127 Consolidated and Separate Financial Statements (revised in 2010) 1 July 2010
IC Interpretation 4 Determining and Separate Financial Statements 1 January 2011
IC Interpretation 12 Service Concession Arrangements 1 July 2010
IC Interpretation 16 Hedges of a Net Investment in a Foreign Operation 1 July 2010
IC Interpretation 17 Distributions of Non-cash Assets to Owners 1 July 2010
IC Interpretation 18 Transfer of Assets from Customers 1 January 2011
IC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments 1 July 2011

The adoption of the new FRS and interpretation does not have significant impart on the financial statements.

A2 Seasonal or cyclical factors

The Group's operations is dependent on the cyclical trend of the semiconductors and electronics industries.

A3 Unusual items affecting assets, liabilities, equity, net income or cash flows
There were no unusual items affecting assets, liabilities, equity, net income or cash flows of the Group for the period under review.

A4 Material changes in estimates

There were no changes in nature and amount of estimates reported in prior financial years which may have a material effect in the
period under review.
 ViTrox Corporation Berhad
(Company No. 649966-K)
(Incorporated in Malaysia)

Quarterly report on results for the Second Quarter ended 30 June 2011

A NOTES TO THE INTERIM FINANCIAL REPORT

A5 Debt and equity securities

Save as disclosed below, there were no issuances, cancellations, repurchases, resale and repayment of debts and equity
securities in the Company during the period under review:

VCB has on 9 October 2008 announced its proposal to purchase up to a maximum of ten percent (10%) of its own total and paid-
up share capital, in accordance with Section 67A of the Companies Act, 1965 and the requirements of the Bursa Malaysia
Securities Berhad and/or any other relevant authority. This proposal requires approval from the shareholders in a general
meeting.

The Proposal above was approved by the shareholders at the Extraordinary General Meeting ("EGM") duly convened and held on
21 November 2008.

During the current quarter, the Company resold 2,912,600 shares at an average price of RM2.04 per share. The difference of
RM4.663 million between the sales consideration and the carrying amount of the shares has been credited to the Share Premium
Account.

A6 Dividend paid
No dividend was paid by the Company in the current quarter under review.

A7 Segment reporting
No segment reporting has been prepared as the Group is principally engaged in development and production of machine vision
inspection products.

A8 Valuation of property, plant and equipment

The Group did not revalue any of its property, plant and equipment during the period under review or prior periods.

A9 Valuation of investment properties

In line with the adoption of the fair value model, the investment properties are stated at fair values which are assessed on yearly
basis.

A10 Material events subsequent to the end of the quarter

There were no material events subsequent to the end of the current reporting period that have not been reflected in the financial
statements for the said period.

A11 Changes in the composition of the Group

There were no material changes in the composition of the Group during the period under review.

A12 Contingent assets or contingent liabilities

There were no contingent assets or liabilities for the Group since the previous financial year ended 31 December 2010 to the date
of this report.

A13 Capital commitments

Authorised contracted capital commitments not provided for in the interim financial statements as at 30 June 2011 is RM8,429,178.

A14 Significant related party transactions

There were no significant related party transactions during the period under review.
 ViTrox Corporation Berhad
(Company No. 649966-K)
(Incorporated in Malaysia)

Quarterly report on results for the Second Quarter ended 30 June 2011
DISCLOSURE REQUIREMENTS AS SET OUT IN APPENDIX 9B OF BURSA SECURITIES MAIN MARKET LISTING
REQUIREMENTS

B1 Review of performance
The Group achieved a revenue of RM27.11 million for the period under review against RM26.12 million in the corresponding period of
preceding year, representing an increase of 4%. The slight increase in revenue against the same quarter last year was mainly attributed
to the higher sales recorded from automated board inspection (ABI). The increase in sales recorded are mainly due to high demand of
our new Advanced X-ray Inspection system from new customers in the US market. The Group achieved a profit before tax of RM8.80
million against profit before tax of RM10.08 million in the corresponding quarter, representing an decrease of 13%, were mainly due to
change in sales mix, increase in research and development expenditure and depreciation in USD. Correspondingly, the Group recorded
a profit after tax of RM8.69 million against profit after tax of RM9.87 million in the corresponding quarter, representing an decrease of
12%.

B2 Variation of results against immediate preceding quarter

The Group recorded revenue and profit before tax of RM27.11 million and RM8.80 million respectively for the current quarter under
review against revenue and profit before tax of RM21.69 million and RM6.57 million respectively for the immediate preceding quarter.
These represent a increase of 25% in revenue and 34% in profit against the revenue and profit of the immediate preceding quarter. The
increase in revenue and profit were attributed to increase in sales recorded for MVS as a result of increase in customer demand.

B3 Prospects for the remaining quarters of current final financial year ending 31 December 2011
Demand for machine vision system, automated board inspection and electronics communication system from the leading test and
inspection equipment manufacturers and major electronics manufacturing services providers will ensure that our products remain the
mainstay of the Group's earnings. In addition, the success of the Advanced X-ray Inspection system in gaining commercial acceptance
by our worldwide customers will add depth and breadth to the Group's business. Barring any unforeseen circumstances, the Board is
cautiously optimistic on the financial performance of the Group for the remaining quarters.

B4 Profit forecast, profit guarantee and internal targets

The Group did not provide any profit forecast, profit guarantee and internal targets in any public document or any announcements made.

B5 Income tax expense

INDIVIDUAL QUARTER CUMULATIVE QUARTER
Preceding year Preceding year
Current year corresponding Current period corresponding
quarter quarter to date period
30-Jun-11 30-Jun-10 30-Jun-11 30-Jun-10
RM'000 RM'000 RM'000 RM'000
Income tax based on the results for the
period under review 109 203 249 305

ViTrox Corporation Berhad ("VCB") is a MSC status company and enjoys pioneer status/tax exempt incentive for certain qualifying
products granted by the Ministry of International Trade and Industry ("MITI") for a period of 5 years commencing from 25 January 2005
to 24 January 2010. VCB has applied another extension 5 years of pioneer status from Multimedia Development Corporation Sdn Bhd
("MDec") and MITI. On 22 September 2010, VTSB has been granted another extension 5 years of pioneer status by MDec and MITI
from 25 January 2010 to 25 January 2015.

A wholly-owned subsidiary of VCB , ViTrox Technologies Sdn. Bhd. ("VTSB") has been granted pioneer status by MITI for a period of 5
years for the development and production of digital automated vision inspection equipment and modules. The incentive commenced
from 1 April 2005 to 31 March 2010 (extendable for further 5 years). The current provision of income tax is in respect of certain non-
business income and non-tax exempted income generated from non-pioneer products of VTSB. On 29 July 2010, VTSB has been
granted another extension 5 years of pioneer status by MITI from 1 April 2010 to 31 March 2015.

Another wholly-owned subsidiary of VCB, ViE Technologies Sdn Bhd ("ViE") has also been granted pioneer status by MITI for a period
of 5 years to undertake activities relating to design, development and manufacture of printed circuit board assemblies for microprocessor
applications. It is the intention of the Group that ViE will spearhead the production and sales of the ECS product. ViE has submitted an
application to MITI for the determination of the pioneer status period and MITI has confirmed that the pioneer period would commence
from 1 April 2007 to 31 March 2012.

B6 Sales of unquoted investments and/or properties

There was no sale of unquoted investments and/or properties during the quarter under review and financial period-to-date.

B7 Purchase and Sale of Quoted Securities

There was no purchase or sale of quoted securities during the quarter under review and financial period-to-date.
 ViTrox Corporation Berhad
(Company No. 649966-K)
(Incorporated in Malaysia)

Quarterly report on results for the Second Quarter ended 30 June 2011
DISCLOSURE REQUIREMENTS AS SET OUT IN APPENDIX 9B OF BURSA SECURITIES MAIN MARKET LISTING
REQUIREMENTS

B8 Status of corporate proposals announced

Save as disclosed below, there were no Corporate Proposal announced and not completed as at the date of this report:-

On 20 May 2011, HwangDBS Investment Bank Berhad (“HwangDBS”), on behalf of the Board of Directors of ViTrox, was pleased to
announce that Bursa Malaysia Securities Berhad (“Bursa Securities”) has, vide its letter dated 19 May 2011 (which was received 20 May
2011) approved the listing of and quotation for up to 77,500,000 Bonus Shares to be issued pursuant to the Proposed Bonus Issue.

The shareholders approved the proposal during the EGM on 24 June 2011. The proposal was completed on 15 July 2011 when the ex-
date took effect while the crediting of the bonus shares and additional warrants to the entitled shareholders were completed on 18 July
2011.

B9 Group Borrowings
There was no bank borrowings during the quarter under review and financial period-to-date.

B10 Financial instruments

As at 30 June 2011, the outstanding forward foreign exchange contracts are as follows:-

Type of derivative Contract value Fair value

RM'000 RM'000

Forward foreign exchange contracts

- Less than 1 year 1,820 -8

- 1 year to 3 years 13,279 -433
15,099 -441

Forward foreign exchange contract is used as a hedging tool to minimise the Group's exposure to changes in fair value of its
commitment, conducted in the ordinary course of business, as a result of fluctuation in exchange rate. There is minimal credit and
market risk because the contracts are hedged with reputable banks.

Foreign currency exchange contract was recognised on the contract date, measured at fair value and the changes in the fair value has
been recognised in profit or loss.

B11 Breakdown of Realised and Unrealised Profits or Losses of the Group

As at As at
30-Jun-11 31-Mar-11
RM'000 RM'000
Total retained profits of the Company and its subsidiaries:
- Realised 77,770 73,628
- Unrealised -1,035 -925
76,735 72,703
Less : Consolidation adjustments -5,685 -5,689
Total group retained profits as per consolidated accounts 71,050 67,014

B12 Material litigation

As the date of this announcement, the Group is not engaged in any material litigation and the Board of Directors do not have any
knowledge of any proceedings pending or threatened against the Group.

B13 Dividends
On 24 June 2011, the shareholders approved the proposed special dividend of 2.5 sen tax exempt amounting to RM3,875,000 and final
dividend of 0.5 sen per share tax exempt amounting to RM775,000 for the financial year ended 31 December 2010 to be payable to the
shareholders on 28 July 2011 whose names appeared in the Record of Depositors at the close of business on 30 June 2011.

B14 Earnings per share

INDIVIDUAL QUARTER CUMULATIVE QUARTER
Preceding year Preceding year
Current year corresponding Current period corresponding
quarter quarter to date period
30-Jun-11 30-Jun-10 30-Jun-11 30-Jun-10

Net profit attributable to shareholders

(RM'000) 8,687 9,874 15,112 14,269

Weighted average number of ordinary 155,000 152,372 155,000 152,372

shares in issue ('000)

Basic earnings per share (sen) 5.60 6.48 9.75 9.36

Diluted earnings per share has not been calculated as the Company does not have any dilutive potential shares.
 ViTrox Corporation Berhad
(Company No. 649966-K)
(Incorporated in Malaysia)

Quarterly report on results for the Second Quarter ended 30 June 2011
DISCLOSURE REQUIREMENTS AS SET OUT IN APPENDIX 9B OF BURSA SECURITIES MAIN MARKET LISTING
REQUIREMENTS

B15 Auditors' report on preceding annual financial statements

The auditors' report on the financial statements for the year ended 31 December 2010 was not subject to any qualification.

B16 Authorisation for issue

The interim financial statements are authorised for issue by the Board of Directors on 19 August 2011.

By Order of the Board

Chu Jenn Weng

Managing Director

Penang
Date: 19-Aug-11