FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 June 2004

Notes (In Compliance with MASB 26)

A1.	Accounting Policies

The Quarterly Report has been prepared in accordance with Malaysian Accounting Standards Board (“MASB”) 26 on ‘Interim Financial Reporting’ and Paragraph 9.22 of the Listing Requirements of Bursa Malaysia Securities Berhad (“BMSB”).

The accounting policies and methods of computation adopted by the Group in this interim financial report are consistent with those adopted in the financial statements for the year ended 31 March 2004.

A2.	Audit report of previous annual financial report

The audit report of the preceding annual financial statements was not qualified.

A3.	Seasonal or Cyclical Factors

The Group’s operations are not affected significantly by any seasonal or cyclical factors for the current quarter and the financial year-to-date.

A4.	Unusual items

There were no items affecting assets, liabilities, equities, net income or cash flows that are unusual because of their nature, size or incidence during the current quarter and the financial year-to-date.	

A5.	Nature and Amount of Changes in Estimates

There were no changes in estimates of amounts reported in the prior interim periods of the current financial year or changes in the estimates of amount reported in previous financial years which have a material effect in the current quarter under review.

A6.	Issuance and Repayment of Debt and Equity Securities

There is no issuance and repayment of debts and equity securities, share buy-backs, share cancellations, shares held as treasury shares and resale of treasury shares for the current quarter and financial year-to-date.

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 June 2004

A7.	Segmental Information
	
Segmental information is presented in respect of the Group’s business and geographical segments.

Segment revenue and results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. 
					
	The Group comprises the following main business segments:
(a) Property development	- Property development and construction of properties.
(b) Leisure & tourism		- Resorts, golf club and travel agency services.	    	 
(c) Trading			- Trading of wood products.				 
	(d) Investment holdings		- Investment holding, venture capital and management services.
	(e) Other			- Not of a sufficient size to be disclosed separately.

	Segment by activity

Current quarter ended   30/06/2004	Property 
development
RM’000	Leisure &
Tourism
RM’000	
Trading
RM’000	Investment
holdings
RM’000	
Consolidated
RM’000	
						
Revenue						
External sales	4,260	17,920	5,347	155	27,682	

Results						
Segment (loss) / profit	(2,063)	2,851	          25	(1,956)	         (1,143)        	
Depreciation	  (161)	(2,394)	(20)	  (193)	         (2,768)	
Segment result	(2,224)	 457	5	(2,149)	         (3,911)	
Interest income					              180	
Interest expenses					(10,241)	
Share of associated results					              (1 9)	
Taxation					               5	
						
Loss after taxation					(13,986)	

Segment by geographical 

Current quarter ended   30/06/2004	
Malaysia
RM’000	
Singapore
RM’000	
Others
RM’000	
Consolidated
RM’000	
					
Revenue					
External sales	22,335	5,347	-	27,682	

A8.	Valuations of property, plant and equipment

The valuations of property, plant and equipment have been brought forward without amendment from the previous annual financial statements.

A9.	Material subsequent events

There were no material subsequent events from 30 June 2004 to 26 August 2004 (the latest practicable date which is not earlier than 7 days from the date of issue of this Quarterly Report).

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 June 2004

A10.	Changes in the Composition of the Group

There were no material changes in the composition of the Group during the current quarter and financial   year-to-date, including business combinations, acquisition or disposal of subsidiaries and long-term investments, restructuring, and discontinuing operations except on 11 May 2004, a wholly-owned subsidiary, Karambunai Resorts Sdn Bhd have subscribed for entire issued and paid up share capital of a newly incorporated subsidiary, namely Dapan Construction Sdn Bhd (formerly known as Simfoni Istimewa Sdn Bhd), comprising of 2 ordinary shares of RM1/- each for a cash consideration of RM2/-. This acquisition has no material impact on the Group financial statements as at 30 June 2004.

A11.	Changes in contingent liabilities or contingent assets
	
Other than corporate guarantees extended by the Company in support of banking facilities of its subsidiaries, there were no contingent liabilities or contingent assets as at 30 June 2004 (31 March 2004 : nil). 

Notes (BMSB Revised Listing Requirements) 

B1. 	Review of the Performance of the Company and Its Principal Subsidiaries

The Group recorded a lower pre-tax loss of RM14.04 million for the current quarter under review compared to a pre-tax loss of RM16.64 million in the same quarter of the preceding financial year, reflecting the continued strong contribution from the Group’s leisure & tourism industry sector.  However, the performance was dampened by finance cost of about RM10.2 million.

B2.	Material Changes in the Quarterly Results Compared to the Results of the Preceding Quarter 

There are no material changes in the pre-tax loss for the current quarter as compared to the previous quarter.

B3.	Current Year Prospects

With the increasing growth trends in the leisure & tourism industry, the Group is optimistic that barring any unforeseen circumstances, the Group would continue to benefit from the performance of this industry.  Concurrently, the Group will continue to focus on addressing its borrowing costs and resolution of the RM420 million zero-coupon redeemable secured bonds 2001/2005 maturing in year 2005. 

B4.	Profit Forecast / Profit Guarantee 
	
Not applicable in this Quarterly Report.

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 June 2004

B5.	Taxation

The breakdown of tax charge for the current quarter and financial year-to-date are as follows:

Tax Charge	Current Quarter
RM’000	Current Financial Year-to-Date
RM’000	
Current quarter / year provision	-	                          -	
Under / (Over) provision in previous year	(5)	                          (5)	
Transfer to / (from) deferred taxation	-	                           -	
Total	(5)	                          (5)	

B6.	Profit/(loss) on Sale of Unquoted Investments and/or Properties

There were no material sales of unquoted investment or properties for the current quarter and financial year-to-date.

B7.	Quoted Securities
	
There were no purchases or sales of quoted securities for the current quarter and financial year-to-date and there was no investment in quoted securities at the end of the reported quarter.

B8.	Status of Corporate Proposals Announced But Not Completed as at 26 August 2004 (the latest practicable date which is not earlier than 7 days from the date of issue of this Quarterly Report) 

The Proposed Scheme of Arrangement of Sri Hartamas Berhad (“SHB”) (“SHB Exercise”) includes the injection of 2 assets/business undertakings namely BUEMC Undertaking and NRK Undertaking by the Group and the other 50 shareholders of FACB Marketing and Sales Services Sdn Bhd (“FMSS Minority Shareholders”) into Hartamas Group Bhd (“HGB”) for an aggregate consideration of RM660 million to be settled by way of issue of 660 million new ordinary shares of RM1/- each in HGB to the Group and FMSS Minority Shareholders at an issue price of RM1/- per HGB share.

Pengurusan Danaharta Nasional Berhad (“PDNB”) had approved the Proposed Scheme of Arrangement of SHB Exercise on 28 January 2002 and further approval was obtained from the secured creditors of SHB on 29 January 2002 in accordance with Section 4(4) of the PDNB Act, 1998.

The Foreign Investment Committee and Securities Commission (“SC”) had approved the abovementioned SHB Exercise on 19 March 2002 and 9 July 2002 respectively. The Company had on 20 March 2003 and 30 May 2003 entered into a Second Supplemental Reconstruction Agreement and an Supplement Letter to the Reconstruction Agreement with SHB and HGB respectively to facilitate the implementation of the said SHB Exercise. In an Extraordinary General Meeting of the Company held on the 24 June, 2003, the shareholders have given their approval for the Company to execute and implement the SHB Exercise. On 16 April 2004 an application to the SC was made to seek their approval for a further extension of time till 31 December 2004 for the completion of the SHB Exercise. On 27 May 2004, the SC has granted its approval on the application for extension.

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 June 2004

B9.	Borrowings and Debt Securities
	
(a)	Short Term Borrowings	RM’000	
			
	Secured		
	Term Loan (USD 5.42Million)	18,044	
	Term Loan	69,837	
	Revolving Credits	17,000	
	Bank Overdraft	24,226	
			
	Unsecured		
	Bank Overdrafts	114	
	Hire Purchase Creditors	2,286	
			
	Total	131,507	
			
(b)	Long Term Borrowings	RM’000	
			
	Secured		
	Term Loan	5,100	
			
	Unsecured		
	Hire Purchase Creditors	1,070	
			
	Total	6,170	

B10.	Off Balance Sheet Financial Instruments

As at 26 August 2004, the Group did not enter into any contract involving financial instruments with off balance sheet risk.

B11.	Material Litigation 

The Group is engaged in the following material litigation as at the date of this report.

	A minority shareholder of a subsidiary, First Travel and Tours (M) Sdn. Bhd. (“FTT”), has presented a legal petition against FTT, the Company and a director of the Company (“Respondents”) to wind-up FTT pursuant to Section 181 of the Companies Act, 1965, on allegation that the affairs of FTT were conducted in a manner oppressive to him and in disregard of his interest as shareholder. The Court has now directed that the petitioner file his affidavit in reply (to FTT’s affidavit in opposition to the petition). It is now up to the petitioner’s lawyers to file the necessary summons for directions to set the petition down for hearing. No provision has been made for possible losses arising from the above legal proceedings as the legal proceedings are still pending.

B12.	Dividend

No dividend is recommended or paid in the current quarter and financial year-to-date.

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FACB RESORTS BERHAD (6461-P)
Unaudited Quarterly Report on the Consolidated Results For the Financial Quarter Ended 30 June 2004

B13.	(Loss)/ Earnings Per Share

 Basic (loss)/ earnings per share	Current quarter ended
30/06/2004
RM’000	Comparative quarter ended
30/06/2003 
RM’000	Current 
 year ended
30/06/2004
RM’000	Preceding 
year ended
30/06/2003
RM’000	
Group’s loss after tax used as numerator in the calculation of basic EPS	
(13,986)	
(16,582)	
(13,986)	
(16,582)	
					
Weighted average number of shares used as denominator in the calculation of basic EPS (‘000)	

2,030,060	

2,030,060	

2,030,060	

2,030,060	

Fully diluted (loss)/ earnings per share

The effect on the diluted loss per share for the current quarter and financial year-to-date arising from the assumed conversion of outstanding Warrants is anti-dilutive.

By order of the Board

_______________________
Lim Tiong Jin
Chief Financial Officer

Kota Kinabalu, Sabah           
27 August 2004

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