SECURITIES AND EXCHANGE COMMISSION

SEC FORM 17-Q

QUARTERLY REPORT PURSUANT TO SECTION 17

OF THE SECURITIES REGULATION CODE AND SECTION 141
OF THE CORPORATION CODE OF THE PHILIPPINES

1. For the period ended June 30, 2010

2. SEC Identification Number 42392 3. BIR TIN No 000-530-828 VAT

4. ASIA AMALGAMATED HOLDINGS CORPORATION.

Exact name of registrant as specified in its charter

5. Philippines 6. (SEC use Only)

Province, Country or other jurisdiction Industry Classification Code
of incorporation or organization

6. Industry Classification Code:

7 2/F Uniwide Coastal Mall, CB II Roxas Blvd., Coastal Road Junction,

Reclamation Area, Parañaque City 1701
Address of registrant’s principal office

8. (632)-879-06-86
Registrant’s telephone number, including area code

9. Not applicable
Former name, former address, and former fiscal year, if changed since last report

10. Securities registered pursuant to Sections 4 and 8 of the RSA

Number of Shares of Common Stock

Title of Each Class Outstanding and Amount of Debt Outstanding
Common stock, P 1.0 par value 799,999,981 shares

11. Are any or all of these securities listed on the Philippine Stock Exchange
Yes [ X ] No [ ]

12. Indicate by check mark whether the registrant:

(a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17
thereunder or Sections 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Section 26
and 141 of the Corporation Code of the Philippines, during the preceding twelve (12) months
(or for such shorter period the registrant was required to file such reports)

Yes [ X ] No [ ]

(b) has been subject to such filing requirements for the past 90 days.
Yes [ X ] No [ ]

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 TABLE OF CONTENTS

Page No.

PART 1 – FINANCIAL INFORMATION

Item 1 Consolidated Financial Statements 01 - 04

Item 2 Notes to Consolidated Financial Statements 05 - 21

Item 3 Management Discusssion and Analysis of 21 - 23

Financial Condition and Results of Operation

PART II – OTHER INFORMATION 23

SIGNATURES 24

CONSOLIDATED AGING OF RECEIVABLES 25

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ASIA AMALGAMATED HOLDINGS CORPORATION. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
JUNE 30, 2010 AND DECEMBER 31, 2009

Unaudited Audited
2010 2009

ASSETS

Cash on hand and in banks P

= 161,103 P
= 861

Notes Receivables, net (Note 4) - -

Other Receivables, net (Note 5) - -

Prepayment 145,000 145,000

Investment Property, net (Note 6) 38,065,980 38,065,980

Furniture and Fixtures, net (Note 7) - -

Due from Affiliates, net (Note 11) - -

Other Assets (Note 8) 110,995 110,995

P
= 38,483,078 P
= 38,322,836

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts Payable and Other Liabilities (Note 9) P

= 6,319,381 P
= 6,513,971

Due to Affiliates (Note 11) 11,856,626 10,743,995

Stockholders’ Equity (Note 10) 20,307,071 21,064,870

P
= 38,483,078 P
= 38,322,836

See accompanying Notes to Consolidated Financial Statements.

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ASIA AMALGAMATED HOLDINGS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009

For Six Months Ending June 30 ForThree Months Ending June 30

2010 2009 2010 2009

OPERATING INCOME
Interest Income P
= 407 P
= 293 P
= 170 P
= 119
Others - - - -
P
= 407 P
= 293 P
= 170 P
= 119

COST AND EXPENSES

Depreciation - 96,863 - 48,432
Occupancy and related expenses 476,124 357,665 353,069 269,425
Listing Fee 280,000 280,000 - -

Taxes and licenses 2,000 2,000 - -

758,124 736,528 353,069 317,857

NET LOSS (INCOME) FROM OPERATIONS P

= (757,717) P
= (736,235) P
= (352,899) P
= (317,738)

OTHER CHARGES (INCOME) - - - -

NET LOSS (INCOME) BEFORE INCOME TAX P

= (757,717) P
= (736,235) P
= (352,899) P
= (317,738)

PROVISION FOR INCOME TAX 81 59 34 24

NET LOSS (INCOME) P

= (757,799) P
= (736,294) P
= (352,933) P
= (317,762)

Loss (Income) Per Share (Note 13) (P

= 0.0009) (P
= 0.0009) (P
= 0.0004) (P
= 0.0004)

See accompanying Notes to Consolidated Financial Statements

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ASIA AMALGAMATED HOLDINGS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009

2010 2009
CAPITAL STOCK
Common stock - P= 1 par value
Authorized – 800,000,000 shares
Issued – 800,000,000 shares P
= 800,000,000 P
= 800,000,000

ADDITIONAL PAID-IN CAPITAL 11,915,611 11,915,611

DEFICIT (RETAINED EARNINGS)

Balance at beginning of year 790,850,722 743,652,002
Net loss for the year 757,799 736,294
Balance at end of year 791,608,521 744,388,295

Equity attributable to minority interest - -

Shares held in treasury – 19 shares 19 19

P
= 20,307,071 P
= 67,527,297

See accompanying Notes to Consolidated Financial Statements.

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ASIA AMALGAMATED HOLDINGS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009

2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (P
= 757,799) (P
= 736,294)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Interest income (407) (293)
Depreciation - 96,863

Operating income before changes in working capital accounts (758,206) (639,724)

Changes in operating assets and liabilities
Increase (Decrease) in:
Accounts payable
Other liabilities (194,590) 130,298
Cash generated from/ (used in) operations
Interest income 407 293
Others
Net cash provided by (used in) operating activities (952,389) (509,133)
CASH FLOWS FROM INVESTING/FINANCING ACTIVITIES
Increase in due from affiliates
Increase in due to affiliates 1,112,631 385,095
Others
Net cash generated from (used in) investing activities 1,112,631 385,095

NET INCREASE (DECREASE) IN CASH ON HAND AND IN BANKS P

= 160,242 (P
= 124,038)
CASH ON HAND AND IN BANKS AT BEGINNING OF PERIOD 861 181,744

CASH ON HAND AND IN BANKS AT END OF PERIOD P

= 161,103 P
= 57,707

See accompanying Notes to Consolidated Financial Statements.

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ASIA AMALGAMATED HOLDINGS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2010

Note 1 – Corporate Information and Status of Operations

Asia Amalgamated Holdings Corporation (AAHC), the Parent Company, was incorporated under the laws of
the Republic of the Philippines and registered with the Securities and Exchange Commission (SEC) per SEC
Registration No. 42392. Its primary purpose, as amended on October 6, 1995, is to invest in, purchase, or
otherwise acquire and own, hold, use sell at wholesale, assign, transfer, mortgage, pledge, exchange or
otherwise dispose of real and personal property of every kind or description, including shares of stock, bonds,
debentures, notes, evidences of indebtedness, and other securities and obligations of any corporation or
corporations, association or associations, domestic or foreign, for whatever legal purpose or purposes the
same may have been organized such as but not limited to environmental management and related services,
commercial urban property development, banking, leasing, energy exploration and development; and to pay
therefore in money or by exchanging therefore stocks, bonds, debentures, contracts or obligations to receive,
collect and dispose of the interests, dividends and income arising from such properties; and to possess and
exercise in respect thereof all the rights, powers, privileges of ownership, including all voting powers of any
stock so owned.

The details of incorporation and principal activities of the subsidiaries are as follows:

Name of Percentage of Date of

Subsidiary Ownership SEC Registration Principal Activity

Marilag Transport
Systems, Inc.
(MTSI) Wholly owned August 7, 1996 Ferry boat operations

ESBI Insurance Non-life insurance

Brokers, Inc. (EIBI) Wholly owned July 8, 1997 broker

Unikleen
International November 14, Water treatment/
Corporation (UIC) 90% owned 1995 store/filters

The aforecited Parent Company and its three subsidiaries are collectively known herein as the “Group”.

The Group’s present office address is at 2nd Floor, Uniwide Coastal Mall, Central Business Center II, Roxas
Boulevard, Coastal Road Junction, Reclamation Area, Parañaque City.

The consolidated financial statements have been prepared assuming that the Group will continue to operate
on a going concern basis. The Group has suffered losses for the past years and has a deficit as June 30,
2010 and December 31, 2009 amounting to P791,608,521 and P790,850,722, respectively. These
conditions, among others, indicate the existence of a material uncertainty, which may cast significant doubt
about the Group’s ability to continue as a going concern and therefore, it may be unable to realize its assets
and discharge its liabilities in the normal course of business.

In order to improve the Group’s operating performance, the Group’s medium term plans included, among
others, to generate sufficient cash flow to meet its obligations on a timely basis, obtain additional financing or
capital infusion, and to get competent technical people and personnel to regain the operations and eventual
profitability.

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The Group’s ability to improve its operating and financial performance depends on the success of the
foregoing plans and measures. The accompanying consolidated financial statements do not include any
adjustments that may result from the outcome of this uncertainty. The financial impact of these matters will be
reported in the consolidated financial statements as they become known and estimable.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING AND FINANCIAL REPORTING POLICIES

Basis of Preparation

Basis of Measurement
The Group’s consolidated financial statements are prepared under the historical cost basis, except for
investment properties which have been measured at fair value.

Functional and Presentation Currency

The consolidated financial statements are prepared in Philippine pesos, which is also the Group’s functional
currency.

Basis of Consolidation
The consolidated financial statements comprise the separate financial statements of the Parent Company
and its subsidiaries. The financial statements of the subsidiaries are prepared for the same reporting year as
the Parent Company, using consistent accounting policies.

All intra-company balances, receivables and payables, income and expenses, profits and losses resulting
from intra-company transactions that are recognized in the separate financial statements of the Parent
Company and its subsidiaries are eliminated in full.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Company obtains
control, and continue to be consolidated until the date that such control ceases.

Minority Interest
Minority interest represents the portion of profit or loss and net assets of UIC not held by the Group and are
presented separately in the consolidated statements of loss and within equity in the consolidated balance
sheets and consolidated statements of changes in equity, separately from parent’s equity.

Minority interest represents the interest in a subsidiary, which is not owned, directly or indirectly through
subsidiaries, by the Group. If losses applicable to the minority interest in a subsidiary exceed the minority
interest’s equity in the subsidiary, the excess, and any further losses applicable to the minority interest, are
charged against the majority interest except to the extent that the minority has a binding obligation to, and is
able to, make good the losses. If the subsidiary subsequently reports profits, the majority interest is allocated
all such profits until the minority interest’s share of losses previously absorbed by the majority interest has
been recovered.

Changes in accounting policies

a) New standards, interpretations and amendments to the existing standards effective in 2009.

The following new standards, amendments and interpretations to existing standards have been applied
and are relevant in these financial statements effective 2009.

• Amendments to PFRS 7: Improving Disclosures about Financial Instruments

The amendments improve the disclosure requirements about fair value measurements and reinforce
existing principles for disclosures about the liquidity risk associated with financial instruments. It
introduces a three-level hierarchy for fair value measurement disclosures and requires entities to
provide additional disclosures about the relative reliability of fair value measurements. These

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disclosures helped to improve comparability between entities about the effects of fair value
measurements.

• PAS 1 (Revised 2007), Presentation of Financial Statements

The changes made required information in financial statements to be aggregated on the basis of
shared characteristics and introduce a statement of comprehensive income. This enables readers to
analyze changes in a company’s equity resulting from transactions with owners in their capacity as
owners (such as dividends and share repurchases) separately from ‘non-owner’ changes (such as
transactions with third parties).

The company adopted the following new standards, interpretations and amendments to existing
standards which are effective in 2009, but does not have not any material effect on the financial
statements:

• PAS 23 (revised), Borrowing Costs

• Amendments to PFRS 1 and PAS 27: Cost of an investment in a Subsidiary, Jointly Controlled Entity
or Associate
• Amendments to PFRS 2: Vesting Conditions and Cancellations
• PFRS 8: Operating Segments
• Amendments to PAS 32 and PAS 1: Puttable Financial Intruments and Obligations Arising on
Liquidation
• PFRS 3 (revised), Business Combinations
• PAS 27 (revised), Consolidated and Separate Financial Statements
• PFRS 1 (revised), First-time Adoption of Philippine Financial Reporting Standards
• Amendments to PAS 39: Eligible Hedged Items
• Improvements to PFRSs (2008)
• Philippine Interpretation IFRIC-17: Distribution of Non-cash Assets to Owners

b) New standards, interpretations and amendments to existing standards not yet effective

The following new standards, interpretations and amendments to existing standards, which have not been
applied in these financial statements:

• PFRS for SMEs (Effective for annual periods beginning on or after January 1, 2010)
• Amendments to PFRS 2: Company Cash-settled Share-based Payment Transactions
(effective for annual periods beginning on or after January 1, 2010)
• Improvements to PFRS 2009 (effective for annual periods beginning on or after January 1,
2010)
• Interpretation IFRIC-15: Agreements for the Construction of Real Estate (effective for annual
periods beginning on or after January 1, 2012)

Based on management’s initial assessment, the adoption of these standards, interpretations and
amendments to existing standards would not have any material impact on the Company’s financial
statements.

Cash
Cash includes cash on hand and in bank.

Financial Instruments

Initial Recognition
Financial assets and financial liabilities are recognized in the consolidated balance sheet when the Group
becomes a party to the contractual provisions of the instrument. In the case of a regular way purchase or
sale of financial assets, recognition is done at trade date, which is the date on which the Group commits to
purchase or sell the asset.

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Financial instruments are recognized initially at fair value plus transaction costs except for those designated
at fair value through profit and loss (FVPL).

Classification of Financial Instruments

The Group classifies its financial assets in the following categories: financial assets at FVPL, loans and
receivables, held-to-maturity (HTM) investments and available-for-sale (AFS) financial assets. Financial
liabilities are classified as financial liabilities at FVPL and other liabilities. The classification depends on the
purpose for which the investments are acquired liabilities are incurred and whether they are quoted in an
active market. Management determines the classification of its financial assets and liabilities at initial
recognition and, where allowed and appropriate, re-evaluates such designation at every financial reporting
date.

The Group does not have financial assets and liabilities designated as FVPL, HTM and AFS investments.

Determination of Fair Value

The fair value of financial instruments traded in active markets is based on their quoted market price or dealer
price quotation (bid price for long positions and ask price for short positions). When current bid and asking
prices are not available, the price of the most recent transaction provides evidence of the current fair value as
long as there has not been a significant change in economic circumstances since the time of the transaction.
If the financial instruments are not listed in an active market, the fair value is determined using appropriate
valuation techniques which include recent arm’s length market transactions, net present value techniques,
comparison to similar instruments for which market observable prices exist, options pricing models, and other
relevant valuation models.

Financial Assets

Financial Assets at FVPL

Financial assets at FVPL include financial assets held for trading and financial assets designated upon initial
recognition as at FVPL.

Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near
term. Gain or losses on investments held for trading are recognized in the consolidated statement of
operations. Derivatives are also classified as held for trading unless they are designated as effective hedging
instruments.

The Group has no assets classified under this category.

Loans and Receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. Loans and receivables are carried at cost or amortized cost, less impairment in
value. Amortization is determined using the effective interest rate method. Gains and losses are recognized
in income when the loans and receivables are derecognized or impaired, as well as through amortization
process. Unearned discount is recognized as income over the life of the loan using the effective interest
method.

The Group’s notes receivables, other receivables and due from affiliates, as shown in Notes 4, 5 and 10, are
included in this category.
HTM Investments
HTM investments are quoted non-derivative financial assets with fixed or determinable payments and fixed
maturities for which the Group’s management has the positive intention and ability to hold to maturity. Where
the Group sells other than an insignificant amount of HTM investments, the entire category would be tainted
and classified as AFS investments. After initial measurement, these investments are measured at amortized
cost using the effective interest rate method, less impairment in value. Amortized cost is calculated by taking
into account any discount or premium on acquisition and fees that are an integral part of the effective interest
rate. Gains and losses are recognized in the consolidated statement of operations when the HTM
investments are derecognized or impaired, as well as through the amortization process.

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The Group has no investments classified under this category.

AFS Financial Assets

AFS investments are non-derivative financial assets that are designated in this category or are not classified
in any of the other categories. Subsequent to initial recognition, AFS financial assets are carried at fair value
in the consolidated balance sheet. Investments, which shall be classified under this category, that do not have
a quoted market price in an active market and whose fair value cannot be reliably measured are stated at
cost.

Changes in the fair value of such assets are reported in the equity section of the consolidated balance sheets
until the investment is derecognized or the investment is determined to be impaired.

On derecognition or impairment, the cumulative gain or loss previously reported in equity is transferred to the
consolidated statement of operations. Interest earned on holding AFS financial assets are recognized in the
consolidated statement of operations using the effective interest rate method.

The Group has no investment classified under this category.

Financial Liabilities

Financial Liability at FVPL

Financial liabilities are classified in this category if these result from trading activities or derivative transactions
that are not accounted for as accounting hedges, or when the Group elects to designate a financial liability
under this category.

The Group has no designated financial liability at FVPL.

Other Financial Liabilities

This category pertains to financial liabilities that are not held for trading or not designated as at FVPL upon
the inception of the liability. These include liabilities arising from operations or borrowings.

The financial liabilities are recognized initially at fair value and are subsequently carried at amortized cost,
taking into account the impact of applying the effective interest rate method of amortization (or accretion) for
any related premium, discount and any directly attributable transaction costs.

The Group’s accounts and other payables, as disclosed in Note 9, are included in this category.

Derecognition of Financial Assets and Financial Liabilities

Financial Assets
A financial asset or, where applicable, a part of a financial asset or part of a group of similar financial assets)
is derecognized when the rights to receive cash flows from the assets have expired; the Group retains the
right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material
delay to a third party under a “pass-through” arrangements; or the Group has transferred its right to receive
cash flows from the asset and either (i) has transferred substantially all the risks and rewards of the
ownership of the asset, or (ii) has neither transferred nor retained substantially all the risks and rewards of the
ownership of the asset, but has transferred control of the asset

When the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor
retained substantially all the risks and rewards of the ownership of the asset nor transferred control of the
asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset. Continuing
involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Group could be
required to repay.

Financial Liabilities.

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A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expired. Where an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as a derecognition of the original liability and the recognition of a new liability, and the
difference in the respective carrying amounts is recognized in the consolidated statement of operations.

Impairment of Financial Assets

Assessment of Impairment
The Group assesses at each balance sheet date whether a financial asset or group of financial assets is
impaired. It assesses whether objective evidence of impairment exists individually for financial assets that are
individually significant, or collectively for financial assets that are not individually significant. If it is determined
that no objective evidence of impairment exists for an individually assessed financial asset, whether
significant or not, the asset is included in a group of financial assets with similar credit risk characteristics and
that group of financial assets is collectively assessed for impairment.

Assets that are individually assessed for impairment and for which an impairment loss is or continues to be
recognized are not included in a collective assessment of impairment.

The determination of impairment losses for financial assets is inherently subjective because it requires
material estimates, including the amount and timing of expected recoverable future cash flows. These
estimates may change significantly from time to time, depending on available information.

Evidence of Impairment
Objective evidence that financial assets are impaired can include default or delinquency by a borrower,
restructuring of a loan or advance by the Group on terms that the Group would not otherwise consider,
indications that a borrower or issuer will enter bankruptcy, the disappearance of an active market for a
security, or other observable data relating to a group of assets such as adverse changes in the payment
status of borrowers or issuers in the group, or economic conditions that correlate with defaults in the group.

Impairment on Assets Carried at Amortized Cost

If there is objective evidence that an impairment loss has been incurred on an asset carried at amortized cost
such as loans and receivables carried at amortized cost, the amount of loss is measured as the difference
between the asset’s carrying amount and the present value of estimated future cash flows (excluding future
credit losses) discounted at the financial asset’s original effective interest rate (i.e., the effective interest rate
computed at initial recognition). The carrying amount of the asset shall be reduced either directly or through
use of an allowance account. The amount of loss shall be recognized in the consolidated statement of
operations.
Impairment on Assets Carried at Cost
If there is objective evidence that an impairment loss has been incurred on an asset carried at cost such as
an unquoted equity instrument that is not carried at fair value because its fair value cannot be reliably
measured, or of a derivative asset that is linked to and must be settled by delivery of such an unquoted equity
instrument, the amount of the loss is measured as the difference between the asset’s carrying amount and
the present value of estimated future cash flows discounted at the current market rate of return for a similar
financial asset.

Reversal of Impairment Loss

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognized, the previously recognized impairment
loss is reversed. Any subsequent reversal of an impairment loss is recognized in the consolidated statement
of operations, to the extent that the carrying value of the asset does not exceed its cost or amortized cost at
the reversal date.

Classification of Financial Instruments Between Debt and Equity

Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual
arrangement. Interest relating to a financial instrument or a component that is a financial liability, are reported
as expenses.

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A financial instrument is classified as debt if it provides for a contractual obligation to deliver cash or another
financial asset to another entity; or exchange financial assets or financial liabilities with another entity under
conditions that are potentially unfavorable to the Group; or satisfy the obligation other than by the exchange of
a fixed amount of cash or another financial asset for a fixed number of own equity shares.

If the Group does not have an unconditional right to avoid delivering cash or another financial asset to settle
its contractual obligation, the obligation meets the definition of a financial liability.

Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance
sheets if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is
an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. This is not
generally the case with master netting agreements, and the related assets and liabilities are presented gross
in the consolidated balance sheets.

Investment Properties
Investments properties consist of investments in real estate and property for lease that are initially measured
at cost less accumulated depreciation, and impairment loss, if any. In assessing if the properties suffered
impairment loss, the Company makes reference to market evidence of transaction process for similar
properties. No formal valuation through appraisal was made as of the report date.

Cost of minor repairs and maintenance are charged to operations. Renewals and betterments that improve
the original assessed standard of performance of the property are capitalized. When the asset is retired or
disposed of, the cost and the related accumulated depreciation and impairment losses are removed from the
account and any resulting gain or loss is credited or charged to current operations.

Investment properties are derecognized when they have either disposed of or when the investment property
is permanently withdrawn from use and no future benefit is expected from the disposal.

Property and Equipment

Property and equipment are initially measured at cost less any subsequent accumulated depreciation,
amortization and impairment in value. The cost of an asset consists of its purchase price and directly
attributable costs of bringing the asset to its working condition for its intended use. Subsequent expenditures
relating to an item of property and equipment that have already been recognized are added to the carrying
amount of the asset when it is probable that future economic benefits in excess of the originally assessed
standard of performance of the existing asset, will flow to the Group. The carrying amount of property and
equipment includes all costs attributable to bringing the asset to the location and condition for it to be capable
of operating. All repairs and maintenance are charged to the consolidated statement of loss during the year
in which they are incurred.

Depreciation and amortization are computed using the straight-line method based on the carrying amount of
the property and equipment over the estimated useful life of 5 years.

The useful lives, residual values and depreciation and amortization methods are reviewed periodically to
ensure that these are consistent with the expected pattern of economic benefits from items of property and
equipment.

When the assets are retired or otherwise disposed of, the cost and the related accumulated depreciation,
amortization and any impairment in value are removed from the account and any resulting gain or loss is
credited or charged to operations.

Impairment of Non-Financial Asset

The carrying amounts of the Group’s non-financial assets are reviewed at each balance sheet date to
determine whether there is any indication of impairment. If any such indication exists, the Group makes a
formal estimate of the asset’s recoverable amount.

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The recoverable amount is the higher of an asset’s or its cash generating unit’s fair value less costs to sell
and its value in use. The fair value less costs to sell is the amount obtainable from the sale of the asset in an
arm’s length transaction. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. For an asset that does not generate cash flows independent of
those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset
belongs.

Whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount and an impairment loss is
recognized in the statements of income.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortization, if no impairment
loss had been recognized. Reversals of impairment are recognized in the consolidated statements of
operations.

Provisions and Contingencies

The Group recognizes a provision if a present obligation, legal and constructive, has arisen as a result of a
past event, payment is probable and the amount can be reliably measured. The amount recognized is the
best estimate of the expenditure required to settle the present obligation at balance sheet date, that is, the
amount the Group would rationally pay to settle the obligation to a third party.

Contingent liabilities are not recognized in the consolidated financial statements. They are disclosed unless
the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are not
recognized in the consolidated financial statements but disclosed in the notes to consolidated financial
statements when an inflow of economic benefits is probable.

Equity
Share capital is determined using the par value of shares that have been issued.

Retained earnings (deficit) include all current and prior period results as disclosed in the consolidated
statement of operations.

Revenue
Interest Income
Interest income is recognized as the interest accrues on a timely basis, by reference to the principal
outstanding and at the effective interest rate applicable.

Related Parties
Parties are considered related if one party has the ability, directly or indirectly, to control the other party or
exercise significant influence over the other party in making financial and operating decisions. Parties are
also considered to be related if they are subject to common control or common significant influence. Related
parties may be individual or corporate entities.

Income Tax

Current Income Tax

Current income tax assets and liabilities for the current and the prior periods are measured at the amount
expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute
the amount are those that are enacted or substantively enacted at the balance sheet date.

Deferred Income Tax

Deferred income tax arises from temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the corresponding amounts used for tax purposes and are accounted for
using the balance sheet liability method. Except for recognized assets and liabilities that affect neither
accounting nor taxable profits, deferred tax liabilities are recognized for all temporary differences. Deferred

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tax assets are recognized to the extent that it is probable that taxable profits will be available against which
deductible temporary differences can be utilized. Deferred tax is measured at the tax rates expected to apply
in the period when the liability is settled or the asset is realized based on tax rates that have been enacted or
substantively enacted at the balance sheet date.

Income taxes are recognized in the statement of operations except when they relate to items directly
recognized in equity in which case the taxes are also directly recognized in equity.

Earnings / Loss Per Share (EPS)

Basic EPS is calculated by dividing net income or loss for the period attributable to common shareholders by
the weighted average number of common shares outstanding during the period, after giving retroactive effect
to any stock dividend.

Events After the Financial Reporting Date

Post year-end events up to the date of the auditor’s report that provide additional information about the
Group’s position at balance sheet date (adjusting events) are reflected in the financial statements. Post year-
end events that are not adjusting events are disclosed in the notes to the financial statements when material.

NOTE 3 – SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES

The preparation of the consolidated financial statements in conformity with PFRSs requires management to
make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial
statements and accompanying notes. The judgments, estimates and assumptions are based on
management’s evaluation of relevant facts and circumstances as of the date of the consolidated financial
statements. Actual results could differ from these estimates and assumptions used. The effect of any change
in estimates will be reflected in the consolidated financial statements when they become reasonably
determinable.

Determination of functional currency

Based on the economic substance of the underlying circumstances relevant to the Group, the functional
currency is determined to be the Philippine peso. It is the currency that mainly influences the sale of services
and the cost of providing the services.

Classification of financial instruments

The Group classifies a financial instrument, or its component parts, on initial recognition as a financial asset,
a financial liability or an equity instrument in accordance with the substance of the contractual agreement and
the definitions of a financial asset, a financial liability or an equity instrument. The substance of a financial
instrument, rather than its legal form, governs its classification in the consolidated balance sheet.

Determination of fair value of financial instruments

The Group carries certain financial assets and liabilities at fair value, which requires use of accounting
estimates and judgment. While significant components of fair value measurement were determined using
verifiable objective evidence, the amount of changes in fair value would differ if the Group utilized different
valuation methodologies and assumptions. Any changes in fair value of these financial assets and liabilities
would affect profit and loss and equity.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both current and future periods.

Asset impairment
The Group determines whether its investment properties are impaired at least annually. In determining the
fair value of the investment properties, the Group relies on the determination of an independent firm of
appraisers, which involves significant assumptions and estimates. Future events could cause management
to conclude that these assets are impaired. Any resulting impairment loss could have a material adverse
impact on the Group’s financial condition and results of operations. While management believes that the

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assumptions made are appropriate and reasonable, significant changes in assumptions may materially affect
the assessment of recoverable values and may lead to future additional impairment charges under PFRS.
Impairment losses were recognized as of December 31, 2009 as shown in Note 6.

Recognition of deferred income tax assets

The Group reviews its deferred income tax assets at each balance sheet date and reduces the carrying
amount to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred tax asset to be utilized. The Group did not recognize any deferred income tax assets as
management believes that its carryforward benefits will not be utilized prior to its expiration.

NOTE 4 – NOTES RECEIVABLE

This pertains to short-term loans extended to Uniwide Sales Warehouse Clubs, Inc. (USWCI), the borrower
and an affiliate, amounting to P70,534,784, in which a full allowance of impairment loss was provided in
2006. The said loans are secured by assignment of merchandise inventory of the said affiliate amounting to
P118,673,748 and such other security transactions as may have been executed or shall be executed by it
and other persons or entities in favor of the Parent Company. These loans bear annual interest of 12%
payable on a monthly basis based on the unpaid balances of the loans. The principal amount is originally due
on June 15, 2006, however, since the borrower failed to pay the required amortization on due dates, these
were accordingly restructured.

On January 9, 2006, the Parent Company and the borrower executed a memorandum of agreement whereby
the Parent Company agreed to reschedule the maturity of the loan for another year up to June 15, 2007. The
maturity date was extended under the terms and conditions mutually acceptable to the parties. Also, both
parties agreed to waive the interest from January 1, 2005 up to the rescheduled maturity date. A full
valuation allowance for impairment loss was provided in 2006 since management believes that that the notes
receivable is no longer recoverable.

In 2006, a full valuation allowance for the impairment loss was likewise provided to the related interest
receivable amounting to P6,622,339.

Note 5 – Other Receivables, Net

This account consists of:

June 30 December
2010 2009

Interest receivable (Note 4) P6,622,339 P6,622,339

Other receivables 75,186,364 75,186,364
Creditable tax withheld 56,228 56,228
81,864,931 81,864,931
Allowance for impairment loss (81,864,931) (81,864,931)

P- P-

The other receivable represents claim from then, Equitable Banking Corporation, for the proceeds on the
sale of Ecology Savings Bank, a former subsidiary of the Parent Company, in 1998 for which full
valuation allowance has been provided for.

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Note 6 – Investment Properties, Net

The breakdown of this account is as follows:

Condominium
Land Held Unit and
for Future Use Improvements Total

Cost
At January 1 / December 31, 2009 P92,168,828 P6,405,106 P98,573,934

Accumulated depreciation and Impairment

loss
At January 1, 2009 (10,262,197) (3,111,766) (13,567,689)
Provisions (47,133,991) (47,133,991)

At December 31, 2009 (57,396,188) (3,111,766) (38,065,980)

Accumulated depreciation
At January 1 / June 30, 2010

Net book value

At June 30, 2010 P34,772,640 P3,293,340 P38,065,980

At December 31, 2009 P34,772,640 P3,293,340 P38,065,980

The land held for future use pertains to a 116 hectare-lot located in Montalban, Rizal and four 52,239 square
meters of four adjacent parcels of land located in Puerto Princesa, Palawan. The condominium unit is located
at PSE Center in Ortigas, Pasig City.

In 2009, the Company determined that the fair value of the land declined based on its zonal value, hence,
recognized a provision for impairment loss in the amount of P47,133,991.

Note 7 – Furniture, Fixtures and Equipment, Net

The breakdown of this account is as follows:

Cost
At January 1 / June 30, 2010 P1,626,768

Accumulated depreciation
At January 1 / June 30, 2010 (1,626,768)

Net book value

At June 30, 2010 and December 31, 2009 P -

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Note 8 – Other Non-current Assets

The composition of this account is as follows:

June 30 December 31
2010 2009

Deferred tax asset on MCIT

Others P 110,995 P 110,995

P 110,995 P 110,995

Note 9 – Accounts and Other Payables

The details of the account are as follows:

June 30 December 31
2010 2009

Other accounts payable P 5,874,517 P 5,983,237

Advances from a stockholder 401,221 401,221
Deferred credits 43,643 43,643
Other payables 85,870
P6,319,381 P6,513,971

Bulk of the balance of other accounts payable, pertains to outstanding obligations to suppliers of MTSI.

Note 10 – Share Capital

The pertinent information on this account as of June 30, 2010 and December 31, 2009 is presented
hereunder:

Number of Shares Amount

Common Stock
Authorized, issued and 800,000,000 P800,000,000.00
outstanding – P1 par
value per share

Note 11 – Related Party Transactions

The Group’s related party transactions, as consummated in the regular course of business, are in the
nature of the following:

a) Short-term, 12% interest bearing notes, extended to USWCI, an affiliate, in 2005, with outstanding
balance of P70,534,784, as disclosed in Note 4.

b) Advances for working capital purposes without definite call dates and interest to/from affiliate
USWCI. In 2006, full allowance for impairment loss on due from affiliate was provided. The
details of the account are as follows:

Aahc-2ndqtr2010-SECFORM17-Q*
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June 30 December 31
2010 2009

Due from affiliate P42,799,945 P42,799,945

Allowance for impairment loss (42,799,945) (42,799,945)

P - P -

c) Due to affiliate amounting to P11,856,626 in June 30, 2010 and P10,743,995 in December 31, 2009.
These advances were availed from USWCI for payment of expenses.

d) Advances from a certain stockholder amounting to P401,221 as disclosed in Note 9.

Note 12 – Income Tax

a) The Group did not recognize the deferred tax asset on the following net operating loss carry over
(NOLCO) as management believes that its carryforward benefits will not be utilized prior to its
expiration.

The details of NOLCO are as follows:

Year Incurred Amount Expiry Year

2007 1,547,620 2010

2008 1,456,634 2011
2009 1,519,531 2012

P4,523,785

b) Updates on tax laws

Republic Act (RA) No. 9337

RA 9337 was enacted into law amending various provisions in the existing 1997 National Internal
Revenue Code (NIRC). Among the reforms introduced by the said RA, which became effective on
November 1, 2005, are as follows:

i. Increase in the corporate income tax rate from 32% to 35% with a reduction thereof to 30%
beginning January 1, 2009;
ii. Revised invoicing and reporting requirements for VAT;
iii. Expanded scope of transactions subject to VAT; and
iv. Provided thresholds and limitations on the amounts of VAT credits that can be claimed.

Revenue Regulation (RR) No. 12-2007

Under the NIRC, MCIT of 2% of the gross income as of the end of the taxable year is imposed beginning
the fourth taxable year immediately following the registration of the Company with the Bureau of Internal
Revenue (BIR).

The MCIT puts a floor limit to the income tax payable. In the event the income tax due
computed under the regular tax rate of 35% on net taxable income becomes lower than 2%
of gross income, the MCIT of 2% of gross income shall be the income tax due. Any excess of
the MCIT over the regular income tax shall be carried forward and credited against the
regular income tax for the three immediately succeeding taxable years.

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On October 17, 2007, however, the BIR issued RR No. 12-2007 which amends certain provisions of RR
No. 9-98 relative to the due date within which to pay the MCIT imposed on domestic and resident foreign
corporations pursuant to Sections 27(E) and 28(A) of the Tax Code, as amended.

Accordingly, MCIT shall be computed at the time of filing the quarterly corporate income tax so that if
MCIT is higher than the quarterly normal income tax, then MCIT becomes the tax due for the quarter. In
the payment of said quarterly MCIT, any excess MCIT from the previous year/s shall not be allowed to be
credited. However, any expanded withholding tax, quarterly income tax payments under the normal
income tax and MCIT paid in the previous taxable quarter/s are allowed to be applied against the
quarterly MCIT due.

The quarterly MCIT paid in the quarterly ITR shall be credited against the normal income tax at year-end
should the normal income tax due becomes higher than the computed annual MCIT. However, should the
computed annual MCIT due becomes higher than the annual normal income tax due, only the quarterly
MCIT payments of the current taxable year, the expanded withholding taxes in the current year and
excess expanded withholding taxes in the prior year may be credited against annual MCIT due. Any
excess MCIT from the previous year/s shall not be allowed to be credited as this can only be applied
against normal income tax.

Note 13 – Loss Per Share

The financial information pertinent to the computation of loss per share is shown hereunder:

June 30
2010 2009 2008

Net loss attributable to equity

holders of the Parent
Company (P 757,799) (P48,652,968) (P1,262,387)

Weighted average number of

outstanding common
shares 799,999,981 799,999,981 799,999,981

Loss per share (P0.0009) (P0.061) (P0.0016)

Note 14 – Commitments and Contingencies

There are claimants, some of whom have filed their claims in various courts opposing the validity of the titles
of the former owners on certain properties bought by the Group shown as land held for future use under the
“Investment Properties” account in the consolidated statements of financial position. Management believes
that the former owners have strong case against these claimants and the case will not have a material
adverse effect on the Group’s consolidated financial statements.

There are no commitments for any acquisition of property and equipment or for any capital expenditures.

Management believes that there are no material contingent assets and liabilities that could affect the Group’s
consolidated financial position and that would require disclosures in the consolidated financial statements.

Note 15– Financial Instruments

Fair Value of Financial Instruments

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As of June 30, 2010

Carrying Values Fair Values
FINANCIAL LIABILITIES
Accounts and other payables P6,319,381 P6,319,381
Due to affiliates 11,856,626 11,856,626

P18,176,007 P18,176,007

As of December 31, 2009

Carrying Values Fair Values
FINANCIAL LIABILITIES
Accounts payable P6,513,971 P6,513,971
Due to affiliates 10,743,995 10,743,995

TOTAL P17,257,966 P17,257,966

The carrying values of the aforementioned financial liabilities approximate their fair values due to relatively
short-term maturities of these financial instruments.

Note 16 – Financial Risk Management Objectives and Policies

Risk Management Structure

Board of Directors
The Board of Directors (BOD) is mainly responsible for the overall risk management approach and for the
approval of risk strategies and principles of the Group. It has also the overall responsibility for the
development of risk strategies, principles, frameworks, policies and limits. It establishes a forum of discussion
of the Group’s approach to risk issues in order to make relevant decisions.

The Group is exposed to a variety of financial risks arising from its operating and financing activities. The
Group’s financial instruments are cash in bank, accounts and other payables and due to affiliates. The main
purpose of these financial instruments is to raise funds for the Group’s operations.

The objective of financial risk management is to contain, where appropriate, exposures in these financial risks
to limit any negative impact on the Group’s results and financial position. The Group actively measures,
monitors and manages its financial risk exposures by various functions pursuant to the segregation of duties
principle.

The main risks arising from the Group’s financial instruments is as follows:

Liquidity Risk
Liquidity risk refers to the risk that the Group will not be able to meet its financial obligations as they fall due.

The Group seeks to manage its liquid funds through cash planning. The Group uses historical figures and
experiences and forecasts from its collections and disbursements.

The following are the contractual maturities of financial liabilities, including estimated interest payments but
excluding the impact of netting agreements:

March 31, 2010

Carrying Less than More than

Amount On Demand 1 Year 1 Year

Aahc-2ndqtr2010-SECFORM17-Q*
 - 20 -

Non-derivative
financial
liabilities

Accounts and other

payables P6,319,381 P6,319,381 P - P -

Due to affiliates 11,856,626 11,856,626 - -

P18,176,007 P18,176,007 P - P -

December 31, 2009

Carrying Less than More than

Amount On Demand 1 Year 1 Year
Non-derivative
financial
liabilities

Accounts and other

payables P6,513,971 P6,513,971 P - P -

Due to affiliates 10,743,995 10,743,995 - -

P17,257,966 P17,257,966 P - P -

Credit Risk
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial
loss to the Group. The Group’s credit risk is primarily attributable from its due from its affiliate. An allowance
for impairment was made where there is an identified loss event which, based on previous experience, is
evidence of a reduction in the recoverability of the cash flows.

Capital Risk Management

The primary objective of the Group’s capital management is to ensure its ability to continue as a going
concern and that it maintains a strong credit rating and healthy capital ratios in order to support its business
and maximize shareholder value.

The Chief Financial Officer has overall responsibility for monitoring of capital in proportion to risk. Profiles for
capital ratios are set in the light of changes in the Group’s external environment and the risks underlying the
Group’s business operations and industry.

The Group monitors capital on the basis of the debt-to-equity ratio which is calculated as total debt divided by
total equity. Total debt is equivalent to liabilities shown in the consolidated balance sheets. Total equity
comprises all components of equity including share capital, capital in excess of par, and deficit. Debt to equity
ratio of the Group is as follows:

June 30, 2010 2009

Total liabilities P18,176,007 P17,257,966

Total equity 20,660,004 21,064,870

Debt-to-equity ratio 1:1.14 1:1.22

The Group defines capital as share capital, capital in excess of par and deficit for the purpose of capital
management.

Aahc-2ndqtr2010-SECFORM17-Q*
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There were no changes in the Group’s approach to capital management during the year. The Group is not
subject to externally imposed capital requirements.

Item 3. Management Discussion and Analysis of Financial Condition and Results of

Operations

The company and its subsidiaries are still in the non-operating status as of the quarter ended June 30,
2010. Management still has no concrete plans on how and when operations will be resumed. Below are
some of the key performance indicators, which the company believes are appropriate considering its present
NON-OPERATING status.

KEY PERFORMANCE INDICATORS

Results of Operation

Below are the significant movements in certain income statements accounts.

Revenues
Semester ended June 30, 2010
The company revenue registered an increase of P114 from P293 as of June 30, 2009 to P407 as of June
30, 2010. the amounts represent interest earned on bank deposits.

Quarter ended June 30, 2010

Revenue for the quarter ended June 30, 2010 was P170 representing interest on bank deposits.

Expenses
Semester ended June 30, 2010
Total expenses for the 1st semester ended June 30, 2010 amounted to P758,124. This represents an
increase of P21,596 or 3\5 when compared to P736,528 for the same period last year. The increase is
sessentially due to a higher share in common costs and expenses.

Quarter ended June 30, 2010

Total expenses for the 2nd quarter ended June 30, 2010 amounted to P = 353,069 which represents an
increase of P
= 35,212 or 11% when compared to the expenses for the same period last year of P317,857.

Net Income / (Loss)

The net result for the semester ended June 30, 2010 shows a loss of P758 thousand. This represents an
increase in net operating expenses when compared to the same period in 2009 of a net loss of P 736
thousand. Likewise, an increase in the quarterly operating expenses was posted this year. Quarter ended
June 30, 2010 posted a loss of P353 thousand as against to P318 thousand for the same quarter in
2009. The increase is merely due to high occupancy cost

Loss per share

Loss per share remains the same for both periods. Loss per share for the 2nd qtr of 2010 and 2009 is P
=
0.0009.

Financial Position

The company’s total assets stood at P= 38.48 million as of June 30, 2010. This represents an increase of
P 160 thousand as compared to December 31, 2009 balance of P = 38.32. The increase or decreases in
the accounts were essentially due to the following.

Aahc-2ndqtr2010-SECFORM17-Q*
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Cash and Cash Equivalent

Cash increased by P = 160,242 from P= 861 as of December 31, 2009 to P = 161,103 as of June 30, 2010
which is essentially due to fund transfer from affiliate to cover up future expenses.

Other Liabilities
The account increasee by P
= 918 thousand on account of expenses paid for in behalf of the company by
affiliated companies.

Stockholders’ Equity
The account decreased by P = 758 thousand from P = 21.06 million as of December 31, 2009 to P = 20.31
million as of June 30, 2009. The decrease is principally due to the net loss sustained for the quarter.

Financial Ratios

As of March 31, 2010 As of December 31, 2009

Current Ratio .0.0168x 0.0085x
Debt Ratio 0.4723x 0.4503x
Equity Ratio 0.5277x 0.5497x
Debt / Equity Ratio 0.8951x 0.8193x

The above ratios are computed based on the following formulas:

Current Ratio equal Current Assets divided by Current Liabilities. Current Assets consists of Cash and
Receivables while Current Liabilities consists of Accounts Payables and Accrued Expenses and other
liabilities.

Debt Ratio equal Total Liabilities divided by Total Assets

Equity Ratio equal Stockholders’ Equity divided by Total Assets

Debt / Equity Ratio equal Total Liabilities divided by Stockholders’ Equity

As mentioned, the above indicators were used with consideration to the non-operating status of the
company and its subsidiaries. Other indicators or performance will be utilized once the company and its
subsidiaries return to normal operation.

Plans and Prospects

The company has yet to come up with a definite plans how to resume operations and when.

Potential Sources of Revenues

The company has properties, which can be a source of potential income and working capital. These are the
following:

1. Land consisting of 116 hectares located in Montalban, Rizal.

2. Land consisting of four adjacent parcels located at Puerto Prinsesa, Palawan.
3. Condominium unit located at PSE Center in Ortigas.

The above properties can either be sold or rented to make them productive in the near future. The viability of
the above alternatives is now being evaluated by management.

Status of the Company’s Subsidiaries

All the three subsidiaries of the company still have no operation for the 2nd quarter of the year 2010.
Unikleen International Corporation has not been in operation for the past nine years now. During the middle
of 2001, Marilag Transport, Inc. decided to stop its operation due to heavy losses incurred in its operation
brought by frequent breakdown on its boats and the escalating cost of fuels and maintenance. ESBI

Aahc-2ndqtr2010-SECFORM17-Q*
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Insurance Brokers has likewise ceased operating by end of June 2002, as it has not renewed its license. As
emphasized in the discussion in the previous reports, in as much as all the subsidiaries have shut down their
respective operations and management still has no concrete plans yet as to the current situation, it is
expected that no recovery is foreseen in the near future.

Marilag Transport Systems, Inc. (MTSI)

The company has ceased operating effective June 2001 to stop incurring further losses. The boats are now
in Naic, Cavite. Management entertains possible sales of the boats. As of end of March 31, 2004, all boats
are not operating yet therefore no income is expected for the coming months. The group, which has earlier
shown interest in acquiring the boats, has decided not to
pursue acquisition. At the moment, management has no definite plan for the company. Operating cost
incurred for the period essentially composed of amortization and depreciation.

ESBI Insurance Brokers, Inc. (ESBI)

The brokers licenses expired on June 30, 2001 and as result, it can no longer solicits business. Its existing
clients particularly Uniwide accounts are now being services by another brokering firm. In view of this no
commission was earned for the period. As mentioned in the past reports, the brokers has not renewed its
Certificate of authority and therefore cannot engage in insurance solicitation. No operation for the quarter
ended March 31, 2004.

Unikleen International Corp. (UIC)

No operation for the period. The company has not been operating since 2000. Management has no definite
plans yet for the company. No income was earned and recognized.

Financial Position

There have not been any known trends, demands, commitments, events or uncertainties that will have a
material impact on the company’s operation and financial position

(i) There have been no known trends, demands, commitments that will have a material impact on
the company’s liquidity other than the fact that the company and its subsidiaries have no
operation and that management has no concrete plans yet on how to reverse the current situation
of the company.

(ii) There is no known event that might trigger direct or contingent financial obligation that is material
to the company nor the company is default of any obligation that might result to its acceleration.

(iii) There was no material subsequent off-balance sheet transactions, arrangements, obligations,
contingent or otherwise and other relationship of the company with any unconsolidated entities or
other persons created during the period.

Part II – Other Information

There was no other undisclosed information, which was not covered by the entire SEC 17-C previously filed.

Aahc-2ndqtr2010-SECFORM17-Q*
 SIGNATURES

Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused this report to
be signed on its behalf by the undersigned.

ASIAAMALGAMATED HOLDINGS CORPORATION

Aahc-?nd.qtr2010-SEcFoRMlT-Q*
 - 25 -

ASIA AMALGAMATED HOLDINGS CORPORATION

CONSOLIDATED AGING OF ACCOUNTS RECEIVABLES
AS OF JUNE 30, 2010

Outstanding >>>>>>>>>> AGE OF RECEIVABLE <<<<<<<<<<

ACCOUNTS Receivable I 2-3 4-6 7 mos. 1 to 2 3 to 5 years Past due accounts
30-Jun-10 month months months to 1 year years above & items in litigation

Type of Accounts Receivable

a) Trade Receivable
1) Premium on insurance coverage -
Less: Allowance for Doubtful acco -
- - - - - - - -
2) Commission Receivable - -

3) Sales - -
Net Trade Receivable - - - - - - - -

b) Non - Trade Receivable

1) Loans receivable 6,622,339 6,622,339

2) Others 75,186,364 75,186,364

3) Prepayments 145,000 145,000.00

4) Creditable tax withheld 56,228 56,228

Less: Allowance for Doubtful acco 81,864,931 81,864,931

Net Non - Trade Receivable 145,000 - - - 145,000 - - -

NET RECEIVABLE 145,000 - - - 145,000 - - -

TYPE OF RECEIVABLE NATURE / DESCRIPTION COLLECTION PERIOD

1. Premium Receivable Premiums on insurance underwitten by the

broker for which it receives commission Normalily 6 months to 1 year

2. Commission Receivable Commission on the premiums underwritten by

the broker As soon as premium is collected

3. Sales Water filters sold by UIC to Uniwide Two to three months

NORMAL OPERATING CYCLE 365 DAYS