GIKEN SAKATA (S) LTD RCB No: 197903879W Pro Forma Half - Year Financial Statements on Consolidated Results for the Period Ended 29 February 2012 1(a)(i) A consolidated statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial period.

Consolidated statement of comprehensive income for the half-year ended 29 February 2012. These figures have not been audited or reviewed.

Group 1st Half 29 Feb 2012 1st Half 28 Feb 2011 Change in (S$'000) (S$'000) % Revenue 22,063 22,465 -1.79% Cost of Sales (18,919) (18,010) 5.05% Gross Profit 3,144 4,455 -29.43% Other items of income

Other income 134 52 NM Interest income 16 9 77.78%

Other items of expenses

Distribution and selling expenses (2,533) (3,194) -20.70% Administration expenses (1,557) (1,439) 8.20% Other operating expenses (122) (167) -26.95% Finance costs (134) (191) -29.84% Loss before tax (1,052) (475) NM
Income tax expense (31) (168) -81.55%

Loss for the financial period (1,083) (643) 68.43% Other comprehensive income:

Foreign currency translation 298 (206) NM Other comprehensive income for the financial period, net of tax 298 (206) NM Total comprehensive income for the financial period (785) (849) -7.54%

Loss attributable to:-

Owners of the parent (1,085) (674) 60.98% Non-controlling interests 2 31 -93.55%
(1,083) (643) 68.43%

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Group 1st Half 29 Feb 2012 1st Half 28 Feb 2011 Change in (S$'000) (S$'000) % Total comprehensive income attributable to:

Owners of the parent (802) (870) -7.82% Non-controlling interests 17 21 -19.05%
(785) (849) -7.54%

1(a) (ii) Other information Group 1st Half 29 Feb 2012 1st Half 28 Feb 2011 Change in % (S$'000) (S$'000)

Interest income 16 9 77.78% Finance cost (134) (191) -29.84% Depreciation of property, plant and equipment (912) (1,076) -15.24% Foreign exchange loss (115) (161) -28.57% Recovery of doubtful trade receivables 12 - NM Property, plant and equipment written off (5) - NM

NM-Not Meaningful

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1 (b) (i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial period. Statements of Financial Position as at 29 February 2012 The Group The Group Change in The Company The Company Change in 29 Feb 2012 31 Aug 2011 % 29 Feb 2012 31 Aug 2011 % S$ '000 S$ '000 S$ '000 S$ '000 ASSETS Non-current assets

Property, plant and equipment 5,689 6,138 -7.32% 45 75 -40.00% Investment in subsidiaries - - NM 4,533 4,533 0.00% Goodwill on consolidation 112 112 0.00% - - NM Due from subsidiaries - - NM 4,432 5,271 -15.92%
5,801 6,250 -7.18% 9,010 9,879 -8.80%

Current assets

Inventories 4,234 3,906 8.40% 2,017 1,958 3.01% Trade receivables 9,689 6,001 61.46% 6,487 2,820 NM Other receivables and deposits 300 290 3.45% 101 88 14.77% Prepayment 268 164 63.41% 71 41 73.17% Due from holding company 22 34 -35.29% 22 34 -35.29% Due from related company 16 9 77.78% - - NM Fixed deposits 1,212 2,243 -45.97% - 1,300 -100.00% Cash and bank balances 2,262 2,264 -0.09% 778 634 22.71%
18,003 14,911 20.74% 9,476 6,875 37.83% Total assets 23,804 21,161 12.49% 18,486 16,754 10.34% EQUITY AND LIABILITIES

Current liabilities

Trade payables 9,179 5,077 80.80% 5,099 1,711 NM Other payables and accruals 2,271 1,989 14.18% 1,280 1,378 -7.11% Due to a related company 4 4 0.00% 4 4 0.00% Due to subsidiaries - - NM 369 603 -38.81% Current income tax payable 7 10 -30.00% - - NM Provisions - - NM - - NM Loan and borrowings 2,442 2,415 1.12% 1,885 1,885 0.00%
13,903 9,495 46.42% 8,637 5,581 54.76%

Net current assets 4,100 5,416 -24.30% 839 1,294 -35.16% Non-current liabilities

Loan and borrowings (2,838) (3,818) -25.67% (2,828) (3,771) -25.01% Provisions (480) (480) 0.00% (252) (252) 0.00% (3,318) (4,298) -22.80% (3,080) (4,023) -23.44%

Total liabilities 17,221 13,793 24.85% 11,717 9,604 22.00% Net assets 6,583 7,368 -10.65% 6,769 7,150 -5.33% Equity attributable to owners of the parent

Share Capital 21,332 21,332 0.00% 21,332 21,332 0.00% Accumulated losses (15,228) (14,143) 7.67% (14,563) (14,182) 2.69% Reserves 165 (118) NM - - NM
6,269 7,071 -11.34% 6,769 7,150 -5.33% Non-controlling interests 314 297 5.72% - - NM Total Equity 6,583 7,368 -10.65% 6,769 7,150 -5.33%

Total equity and liabilities 23,804 21,161 12.49% 18,486 16,754 10.34%

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1 (b) (ii) Aggregate amount of group's borrowing and debt securities Amount repayable in one year or less, or on demand As at 29.02.2012 As at 31.08.2011

Secured

S$ ' 000

Unsecured

S$ ' 000

Secured

S$ ' 000

Unsecured

S$ ' 000

2,442

-

2,415

-

Amount repayable after one year As at 29.02.2012 As at 31.08.2011

Secured

S$ ' 000

Unsecured

S$ ' 000

Secured

S$ ' 000

Unsecured

S$ ' 000

2,838

-

3,818

-

Details of any collateral

(a) A fixed and floating charge has been created on the assets and properties of the Company and its subsidiary, PT Giken Precision Indonesia, in favour of the banks currently serving the
Company.
(b) The secured debts include fixed term lease by the Company and its subsidiary, Changzhou Giken Precision Co Ltd. The short-term bank loans of a subsidiary company are secured by its office buildings and land.

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1 (c) A consolidated statement of cash flow (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year. 29 Feb 2012 28 Feb 2011 S$'000 S$'000 Cash flows from operating activities

Loss before tax (1,052) (475) Adjustments:
Depreciation of property, plant and equipment 912 1,076
Property, plant and equipment written off 5 - Finance cost 134 191
Interest income (16) (9)

Operating cash flows before working capital changes (17) 783 Working capital changes

Inventories (336) 667
Trade receivables (3,635) 1,119
Other receivables and deposits (9) (60) Prepayments (103) (43) Due from related companies (6) 22
Due from a holding company 11 30
Trade payables 4,192 (747) Other payables and accruals 292 (495) Provisions - (50)

Cash generated from operations 389 1,226

Interest received 16 9
Interest paid (134) (191) Tax paid (36) (269)

Net cash generated from operating activities 235 775 Cash flows from investing activities

Purchase of property, plant and equipment (302) (1,411)

Net cash used in investing activities (302) (1,411) Cash flows from financing activities

Proceeds from bank loans 477 - Repayment of bank loans (1,186) (709) Repayment of obligations under finance leases (274) (264)

Net cash used in financing activities (983) (973)

Net decrease in cash and cash equivalents (1,050) (1,609) Effect of foreign exchange rate changes in cash and cash equivalents 17 (43) Cash and cash equivalents at beginning of period 4,507 8,799

Cash and cash equivalents at end of the period 3,474 7,147 Reconciliation of cash and cash equivalents

Cash and bank balances 1,212 2,834
Fixed deposits 2,262 4,313
3,474 7,147

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1 (d) (i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year.

Share

Statutory

Foreign currency

Accumulated

Total attributable

Non-controlling

Total

capital

reserve fund

translation

losses

to owners

Interests

reserves

of the parent

S$'000

S$'000

S$'000

S$'000

S$'000

S$'000

S$'000

The Group

Balance at 1 September 2010 21,332 36 71 (11,572) 9,867 328 10,195 Net loss for the financial period - - - (674) (674) 31 (643) Other comprehensive income for the financial period

Exchange differences arising from translation of foreign operations - - (196) - (196) (10) (206) Total other comprehensive income for the financial period - - (196) - (196) (10) (206) Total comprehensive income for the financial period - - (196) (674) (870) 21 (849)

Balance at 28 February 2011 21,332 36 (125) (12,246) 8,997 349 9,346 Net loss for the financial period - - - (1,782) (1,782) 3 (1,779) Other comprehensive income for the financial period

Exchange differences arising from translation of foreign operations - - (144) (144) (8) (152) Other comprehensive income for the financial period - - (144) - (144) (8) (152) Total comprehensive income for the financial period - - (144) (1,782) (1,926) (5) (1,931)

Transactions with owners of the parent recognised directly in equity

Dividend paid to non-controlling interests - - - - (47) (47) Transfer to statutory reserve - 115 - (115) - - - Total transactions with owners of the parent recognised

directly in equity - 115 - (115) - (47) (47) Balance at 31 August 2011 21,332 151 (269) (14,143) 7,071 297 7,368 Net loss for the financial period - - - (1,085) (1,085) 2 (1,083) Other comprehensive income for the financial period

Exchange differences arising from translation of foreign operations - - 283 - 283 15 298

Total comprehensive loss for the period - - 283 - 283 15 298 Total comprehensive income for the financial period - - 283 (1,085) (802) 17 (785) Balance at 29 February 2012 21,332 151 14 (15,228) 6,269 314 6,583

The Company

Balance at 1 September 2010 21,332 - - (12,861) 8,471 - 8,471

Net loss for the financial period - - - (1,085) (1,085) - (1,085) Total comprehensive income for the financial period - - - (1,085) (1,085) - (1,085)

Balance at 28 February 2011 21,332 - - (13,946) 7,386 - 7,386

Net loss for the financial period - - - (236) (236) - (236) Total comprehensive income for the financial period - - - (236) (236) - (236)

Balance at 31 August 2011 21,332 - - (14,182) 7,150 - 7,150

Net loss for the financial period - - - (381) (381) - (381) Total comprehensive income for the financial period - - - (381) (381) - (381)

Balance at 29 February 2012 21,332 - - (14,563) 6,769 - 6,769

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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 issue of equity securities, issues 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 well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, 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.

The Company did not issue any shares during the financial period. There are no outstanding convertible securities nor treasury shares.

1 (d) (iii) Total number of issued shares excluding treasury shares as at the end of the current financial period and as at end of the immediately preceding year. 29 Feb 2012 31 Aug 2011

Total number of issued shares(excluding treasury shares) 131,509,657 131,509,657

1 (d) (iv) A statement showing all sales, transfers, disposals, cancellation and/or use of treasury shares as at the end of the current financial period reported on.

There are no treasury shares as at the end of the current financial period.

2 Whether are the figures have been audited, or reviewed and in accordance with which auditing standard or practice(e.g. the Singapore Standard on Auditing 910 (Engagement to review Financial Statement), or an equivalent standard).

The figures have not been audited or reviewed by the external auditors of the Company.

3 Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of 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 Group has applied the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the audited financial statements for the financial year ended 31.08.2011 as well as applicable Financial Reporting Standards (FRS) which became effective for financial years beginning on or after 1.9.2011.

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 effects of, the change.

The adoption of the new/revised FRS did not result in any material impact on the Group's results.

6 Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. 29 Feb 2012 28 Feb 2011 Cents Cents

Based on the No. of shares in issue during the period (0.80) (0.36) On fully diluted basis (0.80) (0.36)

"Item 6: The earnings per share for the period ended 29 February 2012 is calculated based on the weighted average share capital in issue during the period of 131,509,657 ordinary shares (28 February 2011 : 131,509,657 ordinary shares)"

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7 Net asset value (for the issuer and group ) per ordinary share based on issued share capital (excluding treasury shares) of the issuer at the end of the :- (a) current financial period reported on; and (b) immediately preceding financial year. Group Company

29 Feb 2012

31 Aug 2011

29 Feb 2012

31 Aug 2011

Cents

Cents

Cents

Cents

Net assets valued per ordinary share based on 4.77 5.38 5.15 5.44 issued share of the company at the end of the
financial period/year (cents)

"Item 7: The net assets value per share for the period ended 29 February 2012 is calculated based on the share capital (excluding treasury shares) in issue at the end of the period of 131,509,657 ordinary shares (31 August 2011: 131,509,657 ordinary shares)" 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 effected 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.

Consolidated Income Statement

(i) The Group's turnover for the period was S$22.1 million, approximating the turnover for the corresponding period in FY 2011.
(ii) However, higher material cost and operating cost in preparation for a new project had resulted in a reduced gross margin of 14.25%, as compared with 19.83% for the corresponding period in FY 2011.
Gross profit for the current period was S$3.1 million.
(iii) There was a net reduction of S$0.5 million in selling and adminstration expenses.
(iv) The lower gross profit had resulted in a net loss after tax of S$1.1 million for the period.

Consolidated Statement of Financial Position

(v) With the start of a new project in December 2011, the higher sales turnover in January and February 2012 had resulted in a S$3.7 million increase in trade receivables with a corresponding increase in trade payables, as compared to 31 August 2011.
(vi) Loans & borrowings decreased by S$1.0 million as compared to 31 August 2011 due to the scheduled loan repayment under the debt restructuring agreement during the period. (vii) The net current asset of the Group as at 29 February 2012 was S$4.1 million while net asset value was S$6.6 million.

Consolidated Statement of Cash Flows

(viii) The Group generated a net cash inflow of S$0.2 million from its operating activities during the period. After utilisation for investing and financing activities, the group had a net cash and cash equivalents position at S$3.5 million as at 29 February 2012.

9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results.

The Group did not make any forecast or prospect statement for the current period 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.

The Group operates in a competitve and challenging operating environment. In view of the continuing uncertainties in the Western economies, the Group is maintaining a cautious outlook.

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11 Dividend (a) Whether an interim (final) ordinary dividend has been declared (recommended).

None

(b) Provide (i) the amount per share (cents) and (ii) the previous corresponding period.

None

(c) Whether the dividend is before tax, net of tax or tax exempt. If before tax or net of tax, state the tax rate and the country where the dividend is derived (if the dividend is not taxable in the hands of shareholders, this must be stated)

Not applicable.

(d) The date the dividend is payable

Not applicable.

(e) The date on which the Registrable Transfers received by the Company (up to 5.00pm) will be registered before entitlements to the dividend are determined

Not applicable.

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

No dividend has been declared / recommended.

13 If the group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.

The aggregate value of interested person transactions for the half year ended 29 February 2012 is as follows:
Nature of transaction and name of Interested Person
Aggregate value of all interested person transactions conducted during the period under review (excluding transactions less than $100,000 and transactions conducted under
shareholders' mandate pursuant to Rule
920)
Aggregate value of all interested person transactions conducted under shareholder's mandate pursuant to Rule 920 (excluding transactions less than $100,000)
S$'000 S$'000
Sales
-Miyoshi Precision Ltd
- 231

14 Negative assurance confirmation on interim financial results under SGX Listing Rule 705(5) of the Listing Manual

The directors of the Company confirm that to the best of their knowledge, nothing has come to their attention which may render the interim financial results for FY2012 to be false or misleading.

BY ORDER OF THE BOARD Ng Say Tiong Company Secretary 9th April 2012

This document has been prepared by the Company and its contents have been reviewed by the Company's Sponsor, Stamford Corporate Services Pte Ltd, for compliance with the relevant rules of Singapore Exchange Securities Trading Limited ("SGX-ST"). The Company's Sponsor has not independently verified the contents of this document. This document has not been examined or approved by SGX-ST and SGX-ST assumes no responsibility for the contents of this document, including the correctness of any of the statements or opinions made or reports contained in this document.

The contact person for the Sponsor is Mr Bernard Lui: telephone no. (65) 6389 3000; email address bernard.lui@stamfordlaw.com.sg.

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