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

Interim Financial Report on Consolidated Results for the Period Ended 31 December 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

There were no debt and equity securities issued, cancelled, repurchased, resold or repaid during the current quarter under review.

A7.	Segmental Information For The Fourth Quarter and Financial Period Ended 
	31 December 2004

Revenue	Profit before taxation	
-------------- 3 months ended 31 December ------------------	
	2004
RM’000	2003
RM’000	2004
RM’000	2003
RM’000	
Industrial Gas/Oil & Gas	7,752	5,093	1,434	296	
RMC/ Quarry	8,109	7,157	34	581	
Property & Construction	659	2,499	(16)	70	
Others	1,424	206	(104)	111	
Total	17,944	14,955	1,348	1,058	

Revenue	Profit before taxation	
------------ 12 months ended 31 December ------------------	
	2004
RM’000	2003
RM’000	2004
RM’000	2003
RM’000	
Industrial Gas/ Oil & Gas	27,576	21,334	4,265	3,422	
RMC/ Quarry	31,160	28,358	(69)	358	
Property & Construction	4,695	2,869	(152)	(33)	
Others	2,397	592	21	(60)	
Total	65,828	53,153	4,065	3,687	

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 31 December 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 1st October 2004, the Company acquired an 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 a wholly owned subsidiary of the Company.

A10.	Changes in Composition of the Group (cont’d)

b)	On 8 November 2004, the Company’s wholly owned subsidiary company, Alpha Billion Sdn. Bhd. had 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 a wholly owned subsidiary of the Company.

c)	On 30 December 2004, the Company had entered into a Conditional Sale and Purchase agreement with Lee Sheng Fung and Wong Kim Jiok for the acquisition of the entire issued and paid up share capital of Tani Kukuh Sdn. Bhd., a company incorporated in Malaysia, comprising 5,000,000 ordinary shares of RM1.00 each for a cash consideration of RM5,800,000.00. Following the said acquisition, Tani Kukuh Sdn. Bhd. becomes a wholly owned subsidiary of the Company
	
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 fourth quarter of 2004 under review, the group turnover has increased by RM3.0 million and the profit before taxation has increased by RM0.29 million respectively as compared to the corresponding period last year.

The increase in turnover is due to mainly to the industrial gases sector which experience a 52% increase in turnover as compared to last year as the increase in demand from the oil and gas industry took off in this last quarter. This together with the new contracts secured by the ready mixed concrete and quarry division has contributed positively to the company’s performance.

B2.	Comparison with preceding quarter’s result

Group Results	Current quarter ended 31/12/2004
RM’000		Preceding quarter ended 30/09/2004
RM’000	
Turnover	17,944		18,405	
Profit Before Taxation	1,348		959	

The group turnover decreased marginally by RM0.46 million but profit before taxation increased by RM0.39 million as compared to last quarter. This is due to the demand for bulk gases from the oil and gas industry which gives a better profit margin.

B3.	Current Year Prospects 

The increase in turnover for 2004 as against 2003, rising from RM53.15 million to RM65.83 million has resulted in a growth of 24% year to year. Profit before taxation has grown by RM0.38 million from RM3.69 million in 2003 to RM4.07 million in 2004.

As can be seen from the group’s improving performance in the fourth quarter of 2004, the group is confident that it will achieve better results in 2005 as the activities in the industries that we are servicing intensifies.

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 31 December 2004:
			
									31 December 2004			 							RM’000

(i)	Total investment at cost		   	    	 5,838										=======
(ii)	Total investment at carrying
	value/book value (after provision 
	for diminution in value)			       	5,384
										=======

(iii)	Total investment at market value
	@ 31/12/2004	                        		5,596
										=======

(iv)	Difference in value (ii) – (iii)			   212
										=======

B8.	Status of Corporate Proposals 

The following is part of the corporate proposals that had been announced but yet to be completed:-

1)	Proposed private placement of new ordinary shares of RM1.00 each in  the Company 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”).

On 4th February 2005, the Company had announced that an application had been made to Securities Commission for a further extension of time from 18 February 2004 to 18 August 2005 to implement the Private Placement. The application is pending approval by Securities Commission. 

2)	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 30th November 2004, the Company further announced that the application for the Proposed Acquisition to be submitted to Securities Commission has been re-scheduled within four (4) months from the date of the announcement.

B9.	Subsequent events

a)	On 27 January 2005, the Company had acquired the entire issued and paid-up share capital of B.I.G. Development (Matang) Sdn. Bhd., Matang Billion Sdn. Bhd., and Beta Billion Sdn. Bhd., all incorporated in Malaysia, comprising 2 ordinary shares of RM1.00 each for a cash consideration of RM2 respectively. Following the said Acquisition, the aforesaid three (3) companies become wholly owned subsidiaries 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.
25 February 2005