COVER SHEET

1 6 4 2 6 6

Formerly: Corro-Coat, Inc.

(Company's Full Name)

S Q

T U

R E

I Z

A O N

T C I

B T

A Y

(Business Address: No. Street City / Town / Province)

ALVIN D. LAO
Contact Person

635-0680
Company Telephone Number

3
Day

SEC Form 17-Q as of June 30, 2013

FORM TYPE

Month Fiscal Year

Month Day Annual Meeting

Secondary License Type, if Applicable

D
Amended Articles Number/Section

Dept. Requiring this Doc.

Total Amount of Borrowings

280
Total No. of Stockholders Domestic Foreign

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------To be accomplished by SEC Personnel concerned

File Number

LCU

Document I.D.

Cashier

STAMPS

SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-Q QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17(2) (b) THEREUNDER 1. For the quarterly period ended 2. Commission identification number June 30, 2013 164266 3. BIR Tax Identification No. 000-400-898

4. CHEMREZ TECHNOLOGIES, INC. (formerly CORRO-COAT, INC.) Exact name of issuer as specified in its charter 5. Metro Manila Province, country or other jurisdiction of incorporation or organization 6. Industry Classification Code: 7. 65 Industria St., Bagumbayan, Quezon City Address of issuer's principal office 8. (02) 635 0680 Issuer'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 8 and 12 of the Code, or Sections 4 and 8 of the RSA Title of Each Class Common Stock, P1 par value No. of Shares of Common Stock Issued & Outstanding 1,302,097,472* as at 30 June 2013 *Net of 95,785,000 treasury shares Amount of Debt Outstanding PhP160,122,000 11. Are any or all of the securities listed on a Stock Exchange? Yes [ ] No [ ] (SEC Use Only) 1110 Postal Code

If yes, state the name of such Stock Exchange and the class/es of securities listed therein: Philippine Stock Exchange; A total of 1,302,097,472 shares of common stock with par value of P1.00 each. 12. Indicate by check mark whether the registrant: (a) has filed all reports required to be filed by Section 17 of the Code and SRC Rule 17 thereunder or Sections 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 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 [ ] No [ ]

(b) has been subject to such filing requirements for the past one hundred eighty (180) days. Yes [ ] No [ ]

PART I--FINANCIAL INFORMATION Item 1. Financial Statements. The unaudited interim consolidated financial statements of Chemrez Technologies, Inc. and its whollyowned subsidiary, Chemrez Inc. (Collectively, the Company) for the six months ended 30 June 2013 and the comparative period in 2012 is attached to this 17-Q report, comprising of the following: 1.1 1.2 1.3 1.4 Consolidated Balance Sheets as at 30 June 2013 and 31 December 2012 (Annex A) Consolidated Statement of Income for the period ended 30 June 2013 and 30 June 2012 (Annex B) Consolidated Statements of Cash Flows for the period ended 30 June 2013 and 30 June 2012 (Annex C) Consolidated Statements of Changes in Shareholders Equity for period ended 30 June 2013 and 30 June 2012 (Annex D)

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations (Based on the Unaudited Consolidated Results for the Period Ended 30 June 2013)

Results of Operations Six Months Ended 30 June 2013 versus 30 June 2012 Sales for the period were PhP 2.1billion, 10% higher than the same period in 2012. o Oleochemical sales increased by 23% (from PhP 768 million to Php 948 million) due to higher biodiesel sales. Resin sales increased by 1.1% (from PhP 977 million to PhP 990 million) resulting from higher sales of color dispersion and polystyrene products. Powder Coating sales were higher by 5% at Php 177 million.

o

Export sales in the first half of 2013 were 20% of total sales. This quarter, export sales were up 20% from same quarter last year at PhP 413 million. Revenue mix: 45% oleochemicals, 47% resins, and 8% powder coating. Cost of goods sold of PhP 1.8 billion, higher by 12.6% than PhP 1.6 billion in first half of 2012. Gross profit of PhP 258.2 million, 3.3% lower from PhP 267 million in first half of 2012 as a result of higher raw materials cost. Gross profit margin was lower by 1.7 percentage points at 12.3% in first half of 2013 versus 2012s 14.0% as increase in costs of raw materials outpaced increase in selling prices. Selling and marketing expenses of PhP 43 million in 2013 was higher by 30% than the same period in 2012. The increase in selling and marketing expenses was because of: (1) higher delivery charges due to increased sales (2) higher transportation costs; and (3) higher representation expense. Administrative expenses of PhP 36 million in the first half of 2013 were lower by 32% than the first half of 2012. Reasons for the decline were lower taxes and licenses paid and lower professional fees.



Rental income decreased 48% in the first half of 2013 to Php 6 million from the same period in 2012 Interest income decreased by 44.4% from PhP 640 thousand in the first half of 2012 to PhP 355 thousand in first half of 2013 Other income increased from PhP 88 thousand in the first half of 2012 to Php 13 million in the first half of 2013, consisted mostly of realized foreign exchange gains as fewer importations were made during the period compared to the same period the previous year. Operating profit increased by 2.4% from PhP 193.6 million in first half of 2012 to PhP 198.2 million in the first half of 2013. The Company incurred finance costs of PhP 1.7 million in the first half of 2013, lower by 65.1% than the same period of 2012 due to lower bank borrowings. Profit before income tax of PhP 183.9 million, lower by 13.7% from the PhP 213.2 million in the first half of 2012. Income tax expense of PhP 41 million, lower by 16% than PhP 49.0 million in the first half of 2012 as a result of the growing sales from segments that are on income tax holiday. Profit after income tax of PhP 142.8 million was lower by 13.1% than PhP 164.2 million in the first half of 2012 and was already 55% of the full year income in 2012. Net profit margin decreased from 8.6% in 2012 to 6.8% in 2013. Earning per share decreased 12% from PhP 0.12 to PhP 0.11 in 2013.

Financial Condition Six Months Ended 30 June 2013 versus 31 December 2012 The Companys financial position remains to be strong with a current ratio of 5.2:1 as of end June 30, 2013 versus 9.4:1 as of end December 31, 2012. Financial debt to equity (DE) ratio was steady at 0.04:1 as of the end of the period. Cash declined by 7% from PhP 344 million in 2012 to PhP 319 million, primarily from bank loan payments. Trade and other receivables increased by 36% to PhP 724 million mostly due to higher sales. Inventories increased by 12% to PhP 875 million as of end June 30, 2013. The Company is maintaining its inventory levels at optimum to meet demand, at the same time lower cost of keeping such inventories. Prepayments and other current assets increased by 9% to Php 1.67 billion, mostly in the form of excess input tax (VAT) paid on raw materials for coco-biodiesel, as sales of coco-biodiesel are subject to zerorated VAT. Total current assets increased by 12% to PhP 3.58 billion because of the Companys increased working capital requirements.



Long-term receivables remained steady at PhP 4 million. Property, plant and equipment decreased by 4% to PhP 1.12 billion Deferred tax assets were unchanged at Php 975 thousand Total payables increased by 137% from PhP 163 million PhP 386 million as of end June 30, 2013. The substantial increase from higher raw material purchases was in line with the Companys growth in sales volume during the period. The company paid bank loans resulting to 6% decrease in borrowings to Php 160 million. Retained Earnings reached P1.66 billion as of end June 30, 2013. Total equity was constant at PhP 4.04 billion given net income earned during the first half of 2013 and increased number of treasury shares resulting from the Companys buyback program. During the period, the Company has re-purchased a total of 6.9 million shares with a net cost of P20 million. Status of the Companys share buyback: NumberofIssuedShares TreasuryShares NumberofIssuedSharesandOutstanding GrossValueofBuyback AverageAcquisitionCostpershare (excludingtransactioncharges)

1,397,855,472 95,758,000 1,302,097,472 273,643,134 2.86

The Companys cash generally goes to the payment of bank loans. o Net cash used in operating activities for the period is PhP 5 million. o Net cash generated from investing activities for the period amounted to PhP 17 million mainly due to sale of equipment. o Net cash used in financing activities amounted to PhP 38 million mainly payment of Companys bank loans.

Key Performance Indicators (KPI) The Company considers the following its key comparative performance indicators: Jan-June 2013 12.3% 6.8% 3.5% As of end 30 June 2013 5.3:1 0.17:1 Jan to June 2012 14.0% 8.6% 4.1% As of end December 31, 2012 9.4:1 0.08:1

Gross profit margin a/ Net profit margin b/ Return on equity c/

Current ratio d/ Debt-to-equity ratio e/

a. Gross Profit / Total Revenues b. Net Profit after taxes / Total Revenue c. Net Income / Shareholders Equity d. Current Assets / Current Liabilities e. Total Liabilities / Stockholders Equity

Selected Notes to the Interim Consolidated Financial Statements In compliance with the requirements of the Securities Regulations Code 1. The same accounting policies and methods of computation were followed in the interim consolidated financial statements consistent with those adopted for the Companys annual consolidated financial statements for the year ended 31 December 2012. Interim operations do not follow any particular seasonal or cyclical pattern. Except as discussed in the foregoing, demand for the Companys products have been historically fairly constant throughout the previous years. There were no items not in the ordinary course of business that affected assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size, or incidence. There were no changes in estimates of amounts reported in prior interim periods of financial years prior to the commencement of results reporting on a consolidated basis. Except those regularly disclosed under the Companys ongoing share repurchase program, there were no other issuances, repurchases, and repayments of debt and equity securities during the interim period. Reporting of segment revenue and segment results for business segments or geographical segments are not required on an interim basis. There were no material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the Company with unconsolidated entities or other persons created subsequent to the end of the interim period that has not been reflected in the financial statements for the period. There were no changes in contingent liabilities or contingent assets since the last annual balance sheet date. Other than what has been disclosed in the foregoing report, there are no existing material contingencies, events or transactions that are material to an understanding of the current interim period.

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10. There are no events other than those already disclosed that will trigger direct or contingent financial obligations that are material to the Company, including any default or acceleration of an obligation. 11. There are no trends, demands, commitments, events or uncertainties known to management that will have a material adverse impact on the Companys liquidity. 12. There are currently no material commitments for capital expenditures except as already disclosed. 13. The Company is not aware of any trend, event or transaction that would have a material impact on its results of operations or on its financial condition except as already disclosed. 14. Aside from interest earnings from the Companys cash deposits and foreign exchange gains and losses, there are no significant elements of income or loss that did not arise from the issuers continuing operations. 15. Any material changes from period to period in any line items of the Companys financial statements that have not been explained in the Management's Discussion and Analysis section of this report were the results of normal fluctuations in operations. 16. The interim consolidated financial statements have been prepared in conformity with Philippine Financial Reporting Standards and reflect amounts that are based on the best estimates and informed judgment of management with an appropriate consideration to materiality. In this regard, management maintains a

system of accounting and reporting which provides for the necessary internal controls to ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition and liabilities are recognized. The system endeavors to obtain reasonable assurance about whether the financial statements are free of material misstatement. Basis of preparation The consolidated financial statements of the Company have been prepared in accordance with Philippine Financial Reporting Standards (PFRS). The term PFRS in general includes all applicable PFRS, Philippine Accounting Standards (PAS), interpretations of the Philippine Interpretations Committee (PIC), Standing Interpretations Committee (SIC) and International Financial Reporting Interpretations Committee (IFRIC) which have been approved by the Financial Reporting Standards Council (FSRC) and adopted by the SEC. The consolidated financial statements have been prepared under the historical cost convention. The preparation of consolidated financial statements requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Companys accounting policies Changes in accounting policy and disclosures A number of new PFRS standards, amendments to existing PFRS standards and IFRIC interpretations are effective for annual periods beginning January 1, 2013 or onwards. The adoption of these standards, amendments and interpretations, to the extent applicable to the Companys operations, transactions and balances, did not have or are not expected to have a significant impact on the Companys financial statements, except as set out below: PAS 19 (Amendment), Employee Benefits (effective January 1, 2013). These amendments eliminate the corridor approach and calculate finance costs on a net funding basis. They would also require recognition of all actuarial gains and losses in other comprehensive income as they occur and of all past service costs in profit or loss. The amendments replace interest cost and expected return on plan assets with a net interest amount that is calculated by applying the discount rate to the net defined benefit liability (asset). The Company will adopt the amendment beginning January 1, 2013. The Company is yet to assess PAS 19s full impact. At a minimum, the Company will effect the full recognition of actuarial gains to other comprehensive income and consider the effect of the net interest amount based on new calculation criteria. PAS 27, Separate Financial Statements (as revised in 2011). As a consequence of the issuance of the new PFRS 10 and PFRS 12, what remains of PAS 27 is limited to accounting for subsidiaries, jointly controlled entities, and associates in the separate financial statements. The adoption of the amended PAS 27 will not have a significant impact on the separate financial statements of the entities in the Company. PAS 28, Investments in Associates and Joint Ventures (as revised in 2011). As a consequence of the issuance of the new PFRS 11 and PFRS 12, PAS 28, Investments in Associates, has been renamed PAS 28, Investments in Associates and Joint Ventures, and describes the application of the equity method to investment in joint ventures in addition to associates. The adoption of PAS 28 will not have a significant impact on the separate financial statements of the entities in the Company. PFRS 1, First-Time Adoption of Philippine Financial Reporting Standards Government Loans (Amendments). Requires first-time adopters relief from retrospective measurement of government loans with below-market rate of interest. This standard is not applicable to the Company. PFRS 7, Financial Instruments: Disclosures Offsetting Financial Assets and Financial Liabilities (effective January 1, 2013). These amendments require an entity to disclose information about rights of set-off and related arrangements (such as collateral agreements). The new disclosures are required for all recognized financial instruments that are set-off in accordance with PAS 32. These disclosures also apply to recognized financial instruments that are subject to an enforceable master netting arrangement or similar arrangement, irrespective of whether they are set-off in accordance with PAS 32. The amendments require entities to disclose, in a tabular

format unless another format is more appropriate, the following minimum quantitative information. This is presented separately for financial assets and financial liabilities recognized at the end of the accounting period: a) The gross amounts of those recognized financial assets and recognized financial liabilities; b) The amounts that are set-off in accordance with the criteria in PAS 32 when determining the net amounts presented in the statement of financial position; c) The net amounts presented in the statement of financial position; d) The amounts subject to an enforceable master netting arrangement or similar arrangement that are not otherwise included in (b) above, including: i. Amounts related to recognized financial instruments that do not meet some or all of the offsetting criteria in PAS 32; and ii. Amounts related to financial collateral (including cash collateral); and e) The net amount after deducting the amounts in (d) from the amounts in (c) above. The amendments to PFRS 7 are to be applied retrospectively. The amendments affects disclosures only and has no impact on the Companys financial position or performance. PFRS 9, Financial Instruments (effective January 1, 2015). This new standard addresses the classification, measurement and recognition of financial assets and financial liabilities. It replaces the parts of PAS 39 that relate to the classification and measurement of financial instruments. PFRS 9 requires financial assets to be classified into two measurement categories: those measured as at fair value and those measured at amortized cost. The determination is made at initial recognition. The classification depends on the entitys business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. For financial liabilities, the standard retains most of the PAS 39 requirements. The main change is that, in cases where the fair value option is taken for financial liabilities, part of the fair value change due to an entitys own credit risk is recorded in other comprehensive income rather than profit or loss, unless this creates an accounting mismatch. The Company has yet to assess the full impact of PFRS 9 and intends to adopt PFRS 9 beginning January 1, 2015. The Company will also consider the impact of the remaining phases of PFRS 9 when issued. PFRS 10, Consolidated Financial Statements (effective January 1, 2013). This standard replaces portion of PAS 27, Consolidated and Separate Financial Statements, that addresses the accounting for consolidated financial statements. It also includes the issue raised in Standing Interpretations Committee (SIC)-12 Consolidation Special Purpose Entities. PFRS 10 establishes a single control model that applies to all entities including special purpose entities. The changes introduced by PFRS 10 will require management to exercise significant judgment to determine which entities are controlled, and therefore, are required to be consolidated by a parent, compared with the requirements that were in PAS 27. This standard will have no significant impact on the consolidated financial statements. PFRS 11, Joint Arrangements (effective January 1, 2013). This standard replaces PAS 31, Interest in Joint Ventures and SIC-13, Jointly-controlled Entities Non-monetary Contributions by Venturers, and removes the option to account for jointly controlled entities (JCEs) using proportionate consolidation. Instead, JCEs that meet the definition of a joint venture must be accounted for using the equity method. The Company does not expect this standard to have any impact on its financial statements. PFRS 12, Disclosures of Interests in Other Entities (effective January 1, 2013). This new standard includes the disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and other off balance sheet vehicles. The Company has yet to assess the full impact of PFRS 12 and intends to adopt PFRS 12 beginning January 1, 2013. PFRS 13, Fair Value Measurement (effective January 1, 2013). This new standard aims to improve consistency and reduce complexity by providing a clarified definition of fair value and a single source of fair value measurement and disclosure requirements for use across PFRS. The requirements, which are largely aligned with IFRS and US GAAP, do not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRS or US GAAP. The

Company is yet to assess PFRS 13s full impact on the financial statements and intends to adopt the standard beginning January 1, 2013. There are no other PFRS or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company. Additional Disclosures on Risk Management and Financial Instruments 1. The Companys principal financial instruments as at 31 March 2013 comprise of cash and cash equivalents. Its other financial assets and liabilities are trade receivables and payables arising directly from its operations. The main financial risks arising from the Companys financial instruments are market risk, credit risk and liquidity risk. The Companys risk management policies are summarized below: (a) Market risks on foreign currency and pricing Exposure to currency risks arises from sales and purchases in currencies other than the Companys functional currency in the normal course of business. As certain income and expenses are billed in foreign currency, the Company is subject to transaction and translation exposures resulting from currency exchange rate fluctuations. The Company may from time to time purchase currency forward or option contracts to hedge against these currency risks. The Companys costs are affected by inflation and its effects may continue to be felt in future periods. To lessen the impact of cost increases, the Company has introduced productivity enhancing measures in procurement and supply chain management and has undertaken an inventory rationalization program to reduce carrying costs. (b) Credit risks The aging of the Companys financial assets as at 30 June 2013 is as follows:
(AmountinthousandsofPesos) Pastdueinthefollowingperiods butnotimpaired Carrying amount 318,657 724,261 8,017 1,050,935 Neitherpast due nor impaired 318,657 491,360 8,017 818,034 Overdue and impaired

2.

3.

June 30,2013 Cashinbank Tradeandother receivables Other noncurrentassets TOTALS

3160 days

6190 days

Over90days

187,506 187,506

31,052 31,052

14,344 14,344

Pastdueinthefollowingperiods butnotimpaired Carrying amount 343,845 534,471 8,280 886,595 Neitherpast due nor impaired 343,845 319,430 8,280 671,554 Overdue and impaired

December 31,2012 Cashinbank Tradeandother receivables Other noncurrentassets TOTALS

3160 days

6190 days

Over90days

124,042 124,042

62,828 62,828

27,016 27,016

1,155 1,155

None of the financial assets that are fully performing has been renegotiated during the period. The maximum exposure to credit risk at the reporting date is the fair value of financial assets presented above. The Company does not hold any collateral as security.

(i) Cash and cash equivalents The Companys cash balances are placed with reputable major global and Philippine banks. It manages its interest income by placing cash balances with varying maturities and interest rate terms. From time to time, this includes investing the Companys temporary excess liquidity in short-term government securities. As the Company has no significant interest bearing financial instruments, changes in market interest rates will not significantly impact the Companys income, operating and investing cash flows. The Company has policies that limit the amount of credit exposure with financial institutions. As at 31 March 2013, all of its cash in bank balances are deposited with universal banks. (ii) Trade and other receivables The Company has prudent credit policies to ensure that sales of its products are made to customers with good credit history. The Company monitors its outstanding trade receivables on an on-going basis with the management team performing monthly reviews as part of their regular performance assessment process. All significant receivables from key customers are monitored for credit quality and actual settlement performance to ensure timely execution of necessary intervention efforts. Trade receivables from its five major customers per segment as at 30 June 2013 are as follows:
(amounts in thousands) Total Total AR per Balance Sheet Carrying amount % of Total 281,897 39% 724,261

(c) Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents, the availability of funding through an adequate amount of credit facilities and the ability to close out market positions. Due to the dynamic nature of its businesses, the Company maintains a level of cash and cash equivalent deemed sufficient to finance operations and ensures flexibility by keeping credit lines available. Also, the Company regularly evaluates its projected and actual cash flows. (d) Capital risk management The Companys objective when managing capital is to generate the maximum possible returns for its shareholders while taking on a manageable degree of risk ensuring that the Company will continue to operate as a going concern into the foreseeable future. In order to maintain or adjust the capital structure, the Company reviews its capital structure from time to time to assess the proper financing mix necessary to grow and sustain its operations. As a matter of policy, capital expenditures have been financed from internally-generated cash flow, where possible, and issuance of new shares, while investments in working capital will be augmented by short-term bank borrowings from time to time. The Company has been engaged in a conscious effort to keep its overall gearing ratio as low as possible through proper management of its working capital cycle. Earnings in excess of dividend distributions in cash to shareholders have been continuously redeployed and reinvested in the growth of the Companys business. Each instance of expansion of manufacturing capacity and entry into new products and markets undergoes a thorough evaluation process to ensure that

such investments and marketing programs are in consonance with the Company's core competencies and would be enhancing, rather than diminishing, shareholder value in the long run. In line with the Companys objective to maximize returns to shareholders, the Company may consider the option of returning additional cash to shareholders in the form of special dividends or through share buybacks. On August 22, 2007, the Companys BOD approved the share buyback program with a maximum funding mandate of PhP500 million. The share buyback is part of the Companys balance sheet management program with the objective of improving the Companys balance sheet structure for capital efficiency and enhancing shareholder value through repurchases of shares whenever the Companys stocks are trading at a price discount perceived by the Company as not reflective of its true market value.

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ANNEXA CHEMREZTECHNOLOGIES,INC.(FormerlyCorroCoat,Inc)ANDSUBSIDIARY CONSOLIDATEDBALANCESHEETS

(AmountinThousandsofPesos) June30,2013 (Unaudited) ASSETS CURRENTASSETS Cashandcashequivalents Tradeandotherreceivables,net Inventories Prepaymentsandothercurrentassets Totalcurrentassets NONCURRENTASSETS Longtermreceivables Property,plantandequipment,net DeferredTaxassets Retirementbenefitasset Othernoncurrentassets December31,2012 (Audited)

P 318,657 P 724,261 874,752 1,667,405 3,585,075

343,845 534,471 778,045 1,532,807 3,189,168

4,432 1,120,869 975 1,517 8,017 P 4,720,885 P LIABILITIESANDSTOCKHOLDERS'EQUITY

4,432 1,172,679 975 1,517 8,280 4,377,051

CURRENTLIABILITIES Tradeandotherpayables Incometaxpayable Dividendspayable Borrowings NONCURRENTLIABILITIES RetirementBenefitObligation TotalLiabilities EQUITY ShareCapital AdditionalPaidInCapital Treasuryshares RetainedEarnings Appropriated Unappropriated TotalEquity TotalLiabilitiesandequity

P 385,768 19,576 117,257 160,122 682,723 682,723

162,600 5,708 0 170,000 338,309 0 338,309

1,397,855 P 1,254,007 (273,723) 1,660,023 4,038,163 P 4,720,885

1,397,855 1,254,007 (247,645) 0 0 1,634,524 4,038,742 4,377,051

ANNEXB CHEMREZTECHNOLOGIES,INC.(FormerlyCorroCoat,Inc.)ANDSUBSIDIARY CONSOLIDATEDSTATEMENTSOFINCOME (AmountinThousandsofPesos) Forthesixmonthsended June30,2013 June30,2012 (Unaudited) (Unaudited) P 2,103,806 P (1,845,651) 258,156 12.3% (43,308) (36,038) 6,233 355 12,837 198,236 (1,742) (12,556) 183,938 41,183 41,183 142,755 6.8% 0.11 1,905,611 (1,638,755) 266,855 14.0% (33,209) (52,758) 11,937 640 88 193,553 (4,998) 24,604 213,160 48,964 48,964 P 164,196 8.6% 0.12 Forthethreemonthsended June30,2013 June30,2012 (Unaudited) (Unaudited) 1,070,481 P (922,248) 148,233 13.8% (23,792) (21,353) 3,117 152 790 107,147 (616) (10,591) 95,939 22,912 22,912 73,027 6.8% 0.06 861,752 (767,721) 94,031 10.9% (18,274) (28,017) 5,969 166 (11,233) 42,642 (2,113) 24,604 65,133 20,907 20,907 P 44,226 5.1% 0.03

SALES COSTOFGOODSSOLD GROSSPROFIT GP% SELLINGANDMARKETINGCOSTS ADMINISTRATIVEEXPENSES OTHEROPERATINGINCOME RentalIncome InterestIncome OtherIncome(expense),net OPERATINGPROFIT FINANCECOSTS Interestexpense Foreignexchange(loss)gain,net PROFITBEFOREINCOMETAX INCOMETAXEXPENSE Current Deferred PROFITFORTHEPERIOD NI% EarningsperShare

ANNEXC CHEMREZTECHNOLOGIES,INC.(FormerlyCorroCoat,Inc)ANDSUBSIDIARY CONSOLIDATEDSTATEMENTSOFCASHFLOWS FORTHESIXMONTHSENDEDJUNE30,2013and2012 AMOUNTINTHOUSANDSOFPESOS Forthesixmonthsended June30,2013 (Unaudited) CASHFLOWSFROMOPERATINGACTIVITIES Profitbeforeincometax Adjustmentsfor: Depreciation GainonsaleofEquipment Interestexpense Interestincome,netofpremiumamortization Operatingincomebeforeworkingcapitalchanges (Increase)decreasein: Tradeandotherreceivables Inventories Prepaymentsandothercurrentassets Increase(decrease)inothernoncurrentassets Increase(decrease)intradeandotherpayables Cashgeneratedfromoperations Incometaxespaid Netcashfromoperatingactivities CASHFLOWSFROMINVESTINGACTIVITIES Acquisitionofpropertyandequipment Proceedsfromsaleofeuipment Interestreceived Netcashusedininvestingactivities CASHFLOWSFROMFINANCINGACTIVITIES Reacquisitionofsharesofstocks Interestpaid Paymentofloans ProceedsfromBorrowing Netcashusedinfinancingactivities EFFECTOFEXCHANGERATECHANGESON CASHANDCASHEQUIVALENTS INCREASEINCASHANDCASH EQUIVALENTS CASHANDCASHEQUIVALENTS Beginningofperiod Endofperiod P 183,938 P 47,067 (12,029) 1,742 (355) 220,362 (189,790) (96,707) (134,597) 263 223,168 22,698 (27,316) (4,618) (15,917) 32,690 355 17,128 (26,078) (1,742) (170,000) 160,122 (37,697) (25,187) June30,2012 (Unaudited) 213,160 45,310 (640) 257,830 95,866 83,077 (7,984) (254,388) 174,401 (41,594) 132,807 (16,108) 640 (15,469) (176,615) (176,615) (59,277) Forthethreemonthsended June30,2013 (Unaudited) 95,939 P 23,353 (12,029) 616 (152) 107,727 (128,073) (152,096) (74,121) 263 170,152 (76,148) (27,316) (103,464) (33,561) 32,690 152 (720) (6,287) (616) (80,000) 160,122 73,219 (30,964) June30,2012 (Unaudited) 65,133 22,744 (166) 87,710 66,142 126,353 34,835 (200,678) 114,363 (41,594) 72,769 (7,413) 166 (7,247) (5,071) (5,071) 60,451

343,845 318,657 P 318,657 0

656,611 597,334 597,334 0

349,621 318,657 P

536,883 597,334

note: **incometaxespaid=ITpayableendprov.ForITfortheperiodITpayablebeg.

ANNEXD CHEMREZTECHNOLOGIES,INC.(FormerlyCorroCoat,Inc.)ANDSUBSIDIARY CONSOLIDATEDSTATEMENTSOFCHANGESINSTOCKHOLDERS'EQUITY (AmountinThousandsofPesos) ShareCapital 1,397,855 Additional Treasuryshares PaidinCapital Reserves (215,902) 1,254,007 RetainedEarnings Appropriated Unappropriated Total 1,536,394 3,972,354 164,196 164,196 1,700,590 4,136,550 1,634,525 4,038,743 (117,257) (117,257) (26,078) 142,755 142,755 1,660,023 4,038,162

BalancesatJanuary1,2012(Audited) Additionalstocsissued CashDividends Profitfortheperiod BalancesatJune30,2012(Unaudited) BalancesatJanuary1,2013(Unaudited) Cashdividend Stockrepurchase Profitfortheperiod BalancesatJune30,2013(Unaudited)

1,397,855 1,397,855

(215,902) 1,254,007 (247,645) 1,254,007 (26,078)

1,397,855

(273,723) 1,254,007