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

Interim Financial Report on Consolidated Results for the Period Ended 30 September 2004

A. 	NOTES REQUIRED UNDER MASB 26

A1 	Accounting Policies

The interim financial report is unaudited and has been prepared in compliance with the Malaysia Accounting Standards (‘MASB’) Standard No. 26, “Interim Financial Reporting” and paragraph 9.22 of Bursa Malaysia Securities Berhad’s (“BMSB” formerly known as “Malaysia Securities Exchange Berhad”) Listing Requirements and should be read in conjunction with the Group’s Annual Financial Statements for the year ended 31st December 2003.

The accounting policies and method of computation used in the preparation of this interim financial report are consistent with those adopted in the Annual Financial Report for the financial year ended 31st December 2003. 

A2.	Qualification of the Financial Accounts	

The audit report of the Group’s preceding year financial statements for the year ended 31 December 2003 was an unqualified opinion.

A3.	Seasonal or Cyclical Factors

The business operations of the Group were not affected by any significant seasonal or cyclical factors.

A4.	Unusual Items Affecting Interim Financial Report

	There were no unusual items affecting assets, liabilities, equity, net income or cash flow during the current quarter under review.

A5.	Changes in Estimates

	There were no changes in the estimates of amounts reported in preceding quarter of the current financial year or changes in estimates of amounts reported in prior financial year that have a material effect in the current quarter under review.

A6. 	Debts and Equity Securities

On 5th February 2004, the issued and paid-up share capital of the Company was increased to RM48,045,000 from RM19,218,000 via Rights Issue with Warrants and Bonus Issue. On 9th June 2004, the issued and paid up capital of the Company was increased to RM48,065,000 via exercise of 20,000 warrants. On 24th August 2004, the issued and paid up capital of the Company was increased to RM48,087,200 via exercise of 22,200 warrants

A7.	Segmental Information For The Third Quarter and Financial Period Ended 
	30 September 2004

Revenue	Profit before taxation	
-------------- 3 months ended 30 September ------------------	
	2004
RM’000	2003
RM’000	2004
RM’000	2003
RM’000	
Manufacturing	7,911	5,822	852	1,056	
Construction	8,763	6,414	(199)	(2)	
Transportation	758	898	93	89	
Others	973	370	213	(50)	
Total	18,405	13,504	959	1,093	

Revenue	Profit before taxation	
------------ 9 months ended 30 September --------------------	
	2004
RM’000	2003
RM’000	2004
RM’000	2003
RM’000	
Manufacturing	19,824	16,241	2,831	3,126	
Construction	24,984	18,936	(390)	(420)	
Transportation	2,102	2,450	150	133	
Others	973	370	125	(200)	
Total	47,883	37,997	2,716	2,639	

A8.	Valuation of Property, Plant and Equipment

The valuation of Group’s landed properties, plant and equipment has been brought forward, without amendment from the previous annual financial statements.

A9.	Material Subsequent Events

There was no material events subsequent to the current financial period ended 30 September 2004 except as disclosed in Item B9 below.

A10.	Changes in Composition of the Group

There are no material changes in the composition of the Group during the current quarter under review except as disclosed below:

a)	On 16 July 2004, the Company acquired 30% of the issued and paid-up share capital of B.I.G. Samudra Sdn. Bhd. (formerly known as Orbit Savana Sdn. Bhd.), a company incorporated in Malaysia, comprising 3 ordinary shares of RM1.00 each for a cash consideration of RM3.00.

b)	On 19 July 2004, the Company acquired 30% of the issued and paid-up share capital of B.I.G. Kidurong Sdn. Bhd. (formerly known as Pacaran Elemen Sdn. Bhd.), a company incorporated in Malaysia, comprising 3 ordinary shares of RM1.00 each for a cash consideration of RM3.00.

c)	On 12 August 2004, the Company acquired the entire issued and paid-up share capital of B.I.G. Shipyard Sdn. Bhd. (formerly known as Watan Orbit Sdn. Bhd.), a company incorporated in Malaysia, comprising 10 ordinary shares of RM1.00 each for a cash consideration of RM10.00.
	
A11.	Changes in Contingent Liabilities or Assets

There are no material changes in the contingent liabilities or assets of the Group since the last balance sheet date.

B.	  ADDITIONAL INFORMATION - THE BMSB’S LISITNG REQUIREMENTS

B1.	Review of Performance 
	
For the third quarter of 2004 under review, the Group turnover has increased by RM4.90 million and the profit before taxation has decreased by RM0.13 million respectively as compared to the corresponding period last year.  The increase in turnover is due to the increased demand for industrial gases from the shipbuilding, food and beverage industries and ready mixed concrete contracts secured.

The company’s quarry was relocated to a better location and as such the production was affected during the relocation exercise. The relocated plant is expected to be operational by December 2004 and will be contributing positively to the Company’s construction division.

B2.	Comparison with preceding quarter’s result

Group Results	Current quarter ended 30/09/2004
RM’000		Preceding quarter ended 30/06/2004
RM’000	
Turnover	18,405		14,085	
Profit Before Taxation	959		1,224	

The Group’s turnover has increased by RM4.30 million (30.67%) and profit before taxation has decreased by RM0.27 million (21.65%) as compared to the last quarter. The increase in turnover was due to higher demand in the shipbuilding, food and beverage and construction industry in the current quarter whereby the profit margin for these industries are generally lower than oil & gas industry.

B3.	Current Year Prospects 

Barring any unforeseen circumstances, the Group is expected to achieve better results for the financial year ended 31 December 2004 as compared to the financial year ended 31 December 2003, as the oil and gas sector has been active in the last quarter of the year and will contribute positively to this quarter.

B4.	Profit Forecast

	The company has not provided any profit forecast in a public document.

B5.	Taxation

The Group’s effective tax rate for the current quarter and financial year-to-date is lower than the statutory rate as certain wholly owned subsidiary of the Company has sufficient reinvestment allowance and capital allowances to offset taxable profit. 

B6.	Unquoted investment and Properties
					
		There were no profits/losses on sale of unquoted investments and properties for the current quarter and financial year to date.

B7.	Quoted Investment
					
(a)	There were additional purchases of quoted securities for the current financial period to date.

(b)	Total Investments in quoted securities as at 30 September 2004:
			
									30 September 2004			 							RM’000
(i)	Total investment at cost		   	     8,214									=======
(ii)	Total investment at carrying
	value/book value (after provision 
	for diminution in value)			       7,759
									=======

(iii)	Total investment at market value
	@ 30/09/2004	                        			       7,759
									=======

(iv)	Shortfall in value (ii) – (iii)			     NIL
									=======

B8.	Status of Corporate Proposals 

The following are the corporate proposals that have been announced but not completed:-

1)	The Company has implemented its Employees’ Share Option Scheme on 26 February 2004 for the benefit of the eligible employees and Executive Director of the Group.  This is to accord them the opportunity to participate in the overall growth of the Group in addition to reward them for their contributions.  A total of 4,247,000 options and 150,000 options were offered to the eligible employees and Executive Director of the Group on 8 March 2004 and 10 April 2004 at the exercise price of RM2.72 and RM2.83 per new share respectively.

2)	Proposed private placement of new ordinary shares of RM1.00 each in B. I. G. representing not more than 10% of the issued and paid-up share capital of the Company after the Proposed Rights Issue with Warrants and Proposed Bonus Issue (“Proposed Placement”).

The Securities Commission via its letter of 24 September 2004 has approved the Company’s application for an extension of time from 18 August 2004 to 18 February 2005 to fully implement the proposed placement. 

B8.	Status of Corporate Proposals (cont’d)

3)	On 5 May 2004 the Company announced the following:-

a)	Proposed acquisition of 40,000,000 ordinary shares of SGD0.10 each in Penguin Boat International Limited (“PBIL”) representing 20% of the issued and paid up share capital of PBIL by B.I.G. Industries Berhad (“the Company”) for a purchase consideration of SGD10,000,000 or SGD0.25 per PBIL share to be wholly satisfied by the issuance of new ordinary shares of RM1.00 each in the Company at an issue price of RM2.478 per share.

b)	Proposed acquisition of 10,952,625 warrants in PBIL representing approximately 13.7% of the total outstanding PBIL warrants by the Company for a purchase consideration of SGD657,157.50 or SGD0.06 per PBIL warrant to be wholly satisfied by the issuance of new ordinary shares of RM1.00 each in the Company at an issue price of RM2.478 per share.

c)	Proposed granting of Call and Put Options for the purchase of 54,480,308 ordinary shares of SGD0.10 each in PBIL representing 27.2% of the existing issued and paid up share capital of PBIL by the Company for a purchase consideration of SGD13,620,077 or SGD0.25 per PBIL share to be wholly satisfied by way of cash.

On 2 August 2004, the Company further announced that the application for the proposed acquisition which was originally expected to be submitted to the Securities Commission (“SC”) within three (3) months from the date of the previous announcement dated 5 May 2004 has now been re-scheduled to be submitted to the SC within 4 months from 2 August 2004. The above proposals have not been completed as at the date of this announcement.

B9.	Subsequent events

a)	On 11 October 2004, the Company acquired additional 40% of the issued and paid-up share capital of B.I.G. Bahtera Sdn. Bhd. (formerly known as Lambaian Kurnia Sdn. Bhd.), a company incorporated in Malaysia, comprising 4 ordinary shares of RM1.00 each for a cash consideration of RM4.00. Following the acquisition, B.I.G. Bahtera Sdn. Bhd. becomes 100% wholly owned subsidiary of the Company.

b)	On 8 November 2004, the Company’s wholly owned subsidiary company, Alpha Billion Sdn. Bhd. acquired the entire issued and paid-up share capital of Alpha Billion Management Services Sdn. Bhd., a company incorporated in Malaysia, comprising 2 ordinary shares of RM1.00 each for a cash consideration of RM2.00. Following the acquisition, Alpha Billion Management Services Sdn. Bhd. becomes 100% wholly owned subsidiary of the Company.

B10.	Group Borrowings and Debt Securities

              a) Short Term Borrowings

              b) Long Term Borrowings

** Note: Term loans repayable within 1 year is included under short-term borrowings.

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

B11.	Off Balance Sheet Financial Instruments

The Group did not have any financial instruments with off balance sheet risk at the date of issue of these interim financial statements.

B12.	Changes in Material Litigation

There was no material litigation at the date of issue of these interim financial statements.

B13.	EARNINGS PER SHARE

By Order of the Board

Hon Li Chueng (MIA 17951)
Chan Sau Leng (MAICSA 7012211)
Company Secretaries

Kuching, Sarawak.
29 November 2004