In earlier articles, I have mentioned that it’s important to look at the Chairman’s Statement as it might revealed what are the company’s prospect / outlook.

It is interesting to note that there are further other comments that are revealed in the Chairman’s statement – a typical example is the Chairman statement of public listed company, MP Technology Resources Bhd wherein its executive chairman, Mat Hassan Bin Esa highlighted the case of mismanagement which resulted in a greater group losses.

Read on – the detailed Executive Chairman’s Statement downloaded from KLSE website:

EXECUTIVE CHAIRMAN’S STATEMENT OF MP TECHNOLOGY RESOURCES BHD

Dear Valued Shareholders,

It is our great pleasure to pen our thoughts, to reflect our past performances and to further unveil to you our future plans. Once again, on behalf of the Board of Directors of MP Technology Resources Berhad, I am pleased to present the Annual Report and Financial Statements of the Group and the Company for the financial year ended 30th November 2006.

FINANCIAL REVIEW

The Group revenue for the year was RM22.1 million as compared to RM110.4 million reported in the previous year. The Group also registered a loss before taxation of RM142.99 million as compared to RM27.7 million loss before tax reported in the previous year. After deducting taxation, the Group losses for the year was RM 142.99 million as compared to losses of RM30.3 million in the previous year. Thus in terms of earnings per share, the Group performances resulted in loss per share of 0.624 sen per share compared to an earnings per share of 0.134 sen in the previous year. The Group reported a negative shareholders’ funds of RM58.92 million as compare to RM82.71 million in previous year, which resulted in lower net tangible assets per share of (RM0.25) compared to (RM0.19) in previous year.

OPERATION ACTIVITIES & FUTURE OUTLOOK

I wish to highlight to the shareholders that due to mis-managed by previous management, the Group has suffered heavy losses as stated above. When I took over the management in the month of November 2006, the Board instructed the group accountant to do internal investigation of the affairs of the group accounts.

The internal investigation report which was submitted to Bursa Malaysia Securities Berhad highlighted a full disclosure of doubtful account receivables. The Board subsequently decided to make necessary adjustments to the accounts which resulted a deficit in its adjusted shareholders’ equity on a consolidated basis amounting to RM58.92 million.

In view of the above, the company is categorized as an Affected Listed Issuer pursuant to Practice Note No. 17/2005(“PN17”) of the Listing Requirements of Bursa Securities.

Further to the internal investigation report, the Board of Directors has lodged several police reports in relation to the Financial Irregularities.

Due to the above problems and the changes in Board of Directors and management; it was a tough year for me as Executive Chairman. I had taken initiative to seek for suitable candidates as Independent Non-Executive Directors and also managed the operation together with my other Executive Directors and Operation Directors at subsidiaries levels.

The Board of Directors has taken steps to regularize the operation of the group by appointing professional advisors for the purpose of restructuring exercise.

APPRECIATION

On behalf of the Board of Directors, allow me to extend our sincere thanks and appreciation to our valued customers for their continued support and loyalty, to the relevant government authorities for their continued guidance and assistance, and to our associates, bankers and business partners for their continued support and trust.

Last but not least, I would also like to extend our deepest appreciation to the management and staff for their contribution and dedication to the Group during the year.

All in all, I should like to end by thanking you, the shareholders, for placing your faith and trust in our company. We will use our best endeavours to create shareholders value and taking the Company to a greater platform in year 2007.

Mat Hassan Bin Esa

Executive Chairman

4th May 2007

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