The Group had recorded revenue of S$11.10 million, or 2% decrease as compared to the last corresponding period. Revenue from tray recycling operation in Singapore, Suzhou and Wuxi, China were severely affected in the reporting period due to rationalisation of Maxtor's products by Seagate following the acquisition.

Fortunately, the sharp drop in revenue from tray recycling activities was mitigated substantially by increase of revenue generated by the Group 's new business activities of Natural Gas Vehicle ("NGV") Conversion Centres from its new subsidiary in Thailand and trading activities of NGV related products from its subsidiary in Singapore and Thailand.

Gross Profit

The Group's gross profit decreased by 38% as compared to last corresponding period to S$2.15 million. The fixed operation cost, especially for subsidiaries located in China and request from major customers on 'cost-down' exercise has further resulted in lower gross profit in the reporting period.

Profit from operation

The decrease in distribution and selling expenses was mainly due to lower freight and transportation expenses resulted from lower business activities of recycling and recovery from plastics related waste division in the reporting period.

The Group has recorded higher administrative expenses due to inclusion of expenses incurred by the Group's new facilities set in in Wuxi Asian Brite Technology Co.,Ltd., coupled with the pre-operating expenses incurred by the new business activities of Natural Gas Vehicle ("NGV") Conversion Centres in Thailand, namely SO NGV (Thailand) Co., Ltd.

The Group has generated higher other operating income mainly due to net proceed from disposal of property at 21 Tuas South Street 1, Singapore 638032, in the reporting period.

Other operating expenses has increased substantially in the reporting period mainly due to the amount paid to a shareholder in Thailand for transfer of technology and technical management know-how for the Group's NGV business activities in Thailand, which was charged to profit & loss accounts. The Group also incurred net unrealised exchange loss in the reporting period.

Profit before taxation

Financial expenses decreased by 19% from S$0.22 million to S$0.18 million. This was principally due to lower borrowing cost resulted from the disposal of property at No 21 Tuas South Street 1, Singapore in the reporting period.

The loss before taxation, after taken into consideration of share of profit of associated companies amounted to S$1.32 million as compared to profit of S$0.91million in previous corresponding period.

Taxation

No provision of taxation was recorded in the reporting period mainly due to utilisation of tax losses brought forward.

Net Profit attributable to shareholders

Corresponding to the lower business revenue and factors stated above, the net loss attributed to equity shareholders amounted to S$1.34 million as compared to profit of S$0.95 million in last corresponding period.

Balance Sheet

The Group's net current assets has increased from S$2.48 million to S$6.77 million mainly due to higher inventory and trade receivables balances as at end of reporting period.

The net proceed which was placed to fixed deposit with financial institution from disposal of property at 21 Tuas South Street 1, Singapore also attributed to higher net current assets as at end of reporting period.

Concurrently, the Group's non-current liabilities has decreased from S$2.88 million to S$2.28 million mainly due to lower bank borrowing resulted from the disposal of 21 Tuas South Street 1.

As a result from above mentioned, the Group's net assets as at end of reporting period has increased from S$12.88 million to S$14.91 million.

Cash Flow Statement

The Group's cash and cash equivalent as at 31 December 2007 increased by S$2.10 million as compared to 31 December 2006. This was mainly due to the proceed from disposal of a property, private placement and exercise of Employee Share Option Scheme in the reporting period.

Commentary

New Business Activity - Natural Gas Vehicle Conversion Business

The Group had during the reporting period entered into a Joint Venture Investment Agreement for the setting up of natural gas conversion vehicle ("NGV") conversion centres in Thailand. A subsidiary company, S.O. NGV (Thailand) Co., Ltd. (" SO NGV") has been incorporated in July 2007.

SO NGV has set up three conversion centres located in Wangnoi, Korat and Chiangmai of Thailand within three months from July 2007 to meet the increasing demand of the conversion system in the region, whereby it converts diesel or petrol vehicles to run on pure natural gas or diesel/petrol supplemented with up to 50% natural gas.

In addition, the Company has also entered into a Memorandum of Understanding with a Malaysia registered company, namely Suria Professional Services Sdn Bhd, in September 2007 for a 30% stake holdings in the company for its existing natural gas vehicle conversion business in Kuala Lumpur and Johor Bahru, Malaysia.

In addition to Thailand and Malaysia, the Group has also registered and set up a company in Singapore, namely SO NGV (S) Pte Ltd, to cater for natural gas vehicle conversion business in Singapore. The conversion centre has since end January 2008, commenced conversion activities for passenger cars at 8 Penjuru Place, #01-41 Singapore 608780.

The Company has also embarked on an aggressive plan to import NGV related products, such as compressed natural gas ("CNG") engines, CNG gas cylinders into Singapore, Thailand and Malaysia riding on the conversion business. The Company has also established relationships with CNG engines and NGV related components manufacturers in Europe and China to secure long-term supply and distributorships.

The Group will aggressively seek growth opportunities in the oil and gas related industries, particularly in the setting up of more NGV conversion centres in Thailand and Malaysia.