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 ITEM

	There were no exceptional items during the current quarter.

3.	EXTRAORDINARY ITEM

	There were no extraordinary items during the current quarter.

4.	TAXATION

		2000
(RM)		1999
(RM)	
					
Current Year Provision		2,328		-	
Transfer from deferred taxation		(33,985)		(86,811)	
Under provision in prior years		-		154,817	
		(31,657)		68,006	

5.	PRE-ACQUISITION PROFITS

	There were no pre-acquisition profits 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 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
	@ 31/12/2000					    230
								=======

(iv)	Shortfall in value (ii) – (iii)			     234
								=======
	
	The shortfall in value are deemed to be temporary in nature and the Directors are at the view that provision for diminution is not necessary.

8.	CHANGES IN THE COMPOSITION OF THE COMPANY

There is no change in the composition of the Company during the current quarter

9.	CORPORATE PROPOSALS

Not 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)	SHORT TERM BORROWINGS

	2000		1999	
	RM’000		RM’000	
				
Secured	  5,495		  3,935	
Unsecured	16,887		16,671	
	22,382		20,606	

(b)	LONG TERM BORROWINGS

	2000		1999	
	RM’000		RM’000	
				
Term Loan	8,615		6,842	

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		
33,350	

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	18,057		1,169		42,806	
Ready mixed concrete, cement products and stones	15,542		(100)		29,910	
Transportation	2,070		(38)		884	
	35,669		1,031		73,600	

17.	MATERIAL CHANGE IN PROFIT

Group Results	Current quarter ended 30/12/2000
RM’000		Preceding quarter ended 31/09/2000
RM’000	
				
Turnover	8,498		9,256	
Net Profit Before Taxation	30		(141)	

For the period under review, the Group’s turnover declined by RM758,000 or 8% as compared to the third quarter this year, whereas the Group’s profit before tax registered an increase to RM30,000 as compared to a loss of RM141,000 in the third quarter.  The decline in turnover was due to lower sale performance for all sectors.  However, the Group managed to achieve profitability during the current quarter due to lower operating cost incurred.  

18.	REVIEW OF PERFORMANCE FOR THE CURRENT QUARTER

For the financial year ended 31 December 2000, the Group recorded a pre-tax profit of RM1.03 million as compared to RM0.65 million achieve last year.  This improvement in profitability is mainly attributed to the increase in the industrial gas division’s turnover by 24% as compared to 1999.  In addition, lower operating cost were achieve this year as a result of the Management’s on going efforts to improve its production efficiency. 

19.	CURRENT YEAR PROSPECTS

Barring any unforeseen circumstances, the Group is expected to achieve better results for the financial year ended 31 December 2001 as compared to the financial year ended 31 December 2000.

20.	VARIANCES

	Not applicable as the Group is not subjected to profit guarantee

21.	DIVIDEND

No dividend has been declared for the period under review.

By Order of the Board

Ho Chiew Leng (LS 006059)
Company Secretary
28th February 2001