B. I. G. INDUSTRIES BERHAD (195285-D)
(Incorporated in Malaysia)

1	ACCOUNTING POLICIES

The quarterly financial statements have been prepared based on accounting policies and methods of computation consistent with those adopted in the 31 December 1999 Annual Report.

2	EXCEPTIONAL ITEMS

There were no exceptional items during the current quarter.

3	EXTRAORDINARY ITEMS

There were no extraordinary items during the current quarter.

4	TAXATION

There is a provision of tax amounting to RM 17,363 in respect of current year to date.

5	PRE-ACQUISITION PROFITS

There is a pre-acquisition profit of RM 76,071 during the current quarter.

6	DISPOSAL OF INVESTMENTS OR PROPERTIES

There is no disposal of investments or properties during the current quarter.

7	QUOTED INVESTMENTS
					
(a)	Total purchases of quoted securities by the Group are as follow:

						 RM’000
	Total Purchase					     	    464
								=======

(b)	Investments in quoted shares as at the end of reporting period are set out below:
														 RM’000
	(i)	Total investment at cost		     	    464
								=======
(ii)	Total investment at carrying
value/book value (after 
provision for diminution in 
Value					    464
=======
(iii)	Total investment at market value
@ 30/06/2000				    808
									=======
8	CHANGES IN THE COMPOSITION OF THE COMPANY

During the current quarter, the Group acquired additional 19% equity shares in Hypervictory Sdn Bhd (the Company) and this acquisition has increased the Group’s shareholdings to 100% of the Company.

9	CORPORATE PROPOSALS

Non applicable.

10	SEASONAL OR CYCLICAL FACTORS

The business operations of the Group are not materially affected by any seasonal or cyclical factors.

11	CHANGES IN SHARE CAPITAL

There is no movement in share capital for the current financial year to date.

12	GROUP BORROWINGS AND DEBT SECURITIES

(a)	AMOUNT DUE TO BANKERS

	RM’000	
Overdraft – secured	5,485	
Overdraft – unsecured	4,825	
Revolving Credit – secured	8,412	
	18,722	

(b)	TERM LOAN

	RM’000	
Portion repayable within 12 months	1,856	
Portion repayable after 12 months	7,070	
Balance outstanding	8,926	

(c )	HIRE PURCHASE CREDITORS

	RM’000	
Repayable within 12 months	1,160	
Repayable after 12 months	243	
Balance outstanding	1,403	

None of the Group’s borrowings as at the financial year to date are denominated in foreign currency.

13	CONTINGENT LIABILITIES

	RM’000	
Corporate guarantees given to financial institutions for credit facilities provided to subsidiary and associated companies	
22,141	
14	OFF BALANCE SHEET FINANCIAL INSTRUMENTS

No off balance sheet instruments are utilized for the current financial period under review.

15	MATERIAL LITIGATION

There is no material litigation at the latest practicable date.

16	SEGMENT INFORMATION

By activity

Turnover
(RM’000)		Profit/(loss) before taxation (RM’000)		Total assets employed (RM’000)	
Industrial gases, welding equipment and general trading	 8,730		1,395		39,225	
Ready mixed concrete, cement products and stones	 8,219		(255)		28,818	
Transportation	   966		2		830	
	17,915		1,142		68,873	

17	MATERIAL CHANGE IN PROFIT

There is no material change in profit during the period.

18	REVIEW OF PERFORMANCE FOR THE CURRENT QUARTER

Not applicable as the previous year’s quarterly data was not available.

19	CURRENT YEAR PROSPECTS

For the industrial Gas Division, the Group expects the demand for industrial gas and related products to improve in line with increasing activities in the manufacturing, electronics and construction sector.

For its ready mixed concrete division, the Group has set up new plants in various locations in Sabah.  In addition, its turnover is expected to increase following the implementation and commencement of various infrastructure and road projects in Sabah.

With the continuing improvement in the economy, and barring any unforeseen circumstances, the Group expects the result for the financial year ended 31 December 2000 to be much better.

20	VARIANCES

Not applicable as the Group is not subjected to profit guarantee.

21	DIVIDEND

No interim dividend has been declared for the period under review.