UNAUDITED RESULTS OF THE GROUP FOR THE 1ST QUARTER  ENDED 30 JUNE 2004	
								
The Board of Directors of PWE Industries Berhad wishes to announce the unaudited results of the Group for the First quarter ended 30 June 2004.	
								
CONSOLIDATED INCOME STATEMENT						
				INDIVIDUAL QUARTER	CUMULATIVE QUARTER	
				CURRENT
YEAR
QUARTER
30/6/2004
RM'000	PRECEDING
YEAR
QUARTER
30/6/2003
RM'000	CURRENT
YEAR
TO DATE
30/6/2004
RM'000	PRECEDING YEAR
CORRESPONDING
PERIOD
30/6/2003
RM'000	

								

1.	a.	Revenue		- 	-	- 	-	
	b.	Investment income		              -   	-	               -   	-	
   	c.	Other income including interest 
   income		2	60	2	60	
2.	a.	Profit/(loss) before finance cost,  
   depreciation and amortisation, 
   exceptional items, income tax, 
   minority interests and extraordinary 
   items		(1)         	(15)	(1)	(15	

								
	b.	Finance cost		               -   	-	               -   	-	
	c.	Depreciation and amortisation		              (2)	(2)	           (2)	(2)	
	d.	Exceptional items		               -   	-	               -   	-	
	e.	Profit/(loss) before income tax, 
   minority interests and extraordinary 
   items		   (3)	(17)	(3)	(17)	
								
	f.	Share of profit and losses of associated 
   Companies		               -   	-	               -   	-	
								
	g.	Profit/(loss) before income tax, 
   minority  interests and extraordinary 
   items		(3)	(17)
	(3)	(17)	
								
	h.	Income tax		(1)	(17)	           (1)    	(17)	
	i.	i) Profit/(loss) after income tax   
      before deducting minority interests		(4)	(34)
	(4)	(34)	
								
		(ii)  Less minority interests		-	-	-	-	
	j.	Net profit/(loss) attributable to 
   members of the company		(4)	(34)
	(4)	(34)	
								
3.	a.	Earnings per share based on 2(j) above 
   after deducting any provision for 
   preference dividends, if any :-						

		(i)	Basic (based on 42,000,000 ordinary shares)
      	 (sen) 	          (0.01)	(0.08)
	          (0.01) 	(0.08)

		(ii)  Fully diluted (based on 42,000,000
              ordinary shares)	 (sen) 	-           	-	-
           	-	

The Condensed Consolidated Income Statement should be read in conjunction with the Annual Financial Report for the year ended 31 March 2004.	

UNAUDITED CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2004

		
				 AS AT END 
  OF CURRENT  
 QUARTER 
 30/6/2004 
 RM'000 	 AS AT PRECEDING  
 FINANCIAL  
 YEAR END 
 31/3/2004 
 RM'000 	

						

1.	Fixed Assets		17	19	
				17	19	
						
3.	Current Assets				
		Trade Debtors		2,496	2,496	
		Cash 		50	51	
		Fixed Deposit		269	269	
		Other Debtors		7,231	7,231	
				10,046	10,047	
4.	Current Liabilities				
		Trade Creditors		148	148	
		Other Creditors		244	244	
		Provision for Taxation		11	10	
				403	402	
5.	Net Current Assets 		9,643	9,645	
				9,660	9,664	
6.	Shareholders' Funds				
		Share Capital		42,000	                          42,000 	
		Reserves				
		      Accumulated loss		(32,340)	(32,336)	
						
				9,660	9,664	
7.	Net tangible assets per share	(sen)	23.0	23.0	

The Condensed Consolidated Balance Sheet should be read in conjunction with the Annual Financial Report for the year ended 31 March 2004.	

CONDENSED CONSOLIDATED CASH FLOW STATEMENT
FOR THE 1ST QUARTER ENDED 30 JUNE 2004

	30/6/2004	30/6/2003	
	RM’000	RM,000	
CASH FLOW FROM OPERATING ACTIVITIES			
			
(Loss)/Profit before taxation	(3)	(17)	
			
Adjustment for:			
			
    Depreciation	2	2	
    Interest income	-	(60)	
Operating loss before working capital changes	(1)	(75)	
    Increase/(Decrease) in payables	(1)	1	
    Decrease in receivables	-	64	
Cash used in operations	(2)	(10)	
Taxation paid	-	-	
Net cash used in operating activities	(2)	(10)	

Interest received	2	5	
Net cash generated from investing activities	2	5	
			
Net decrease in cash and cash equivalents	0	(5)	
Cash and cash equivalents at beginning of year	319	965	
Cash and cash equivalents at end of year	319	960	
			
Cash and cash equivalents comprise:			
Cash and bank balances	50	81	
Deposits with licensed banks	269	879	
	319	960	

			
The Condensed Consolidated Cash Flow Statement should be read in conjunction with the Annual Financial Report for the year ended 31 March 2004.	

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2004

DESCRIPTION	SHARE CAPITAL	ACCUMULATED LOSSES	TOTAL	
	RM	RM	RM	
3 MONTHS PERIOD ENDED 30 JUNE 2004				
Balance as at 1 April 2004	42,000,000	(32,336,404)	9,663,596	
Net loss for the period	-	(3,751)	(3,751)	
Balance at end of period	42,000,000	(32,340,155)	9,659,845	
				
3 MONTHS PERIOD ENDED 30 JUNE 2003				
Balance as at 1 April 2004	42,000,000	(32,075,358)	9,924,642	
Net loss for the period	-	(33,545)	(33,545)	
Balance at end of period	42,000,000	(32,108,903)	9,891,097	

The Condensed Consolidated Statement of Changes In Equity should be read in conjunction with the Annual Financial Report for the year ended 31 March 2004.	

NOTES TO THE UNAUDITED RESULTS FOR THE 1ST QUARTER ENDED 30 JUNE 2004

NOTES :	
1.	Accounting Policies	
	The Interim financial report of the Group was prepared in line with MASB 26, Interim Financial Reporting and Listing Requirements of Kuala Lumpur Stock Exchange.

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 period ended 30 June 2003.	

2.	Audit Qualification	
	The audit report in respect of the annual financial statement for the period ended 31 March 2004 was not qualified.	
		
3.	Explanatory comment about the seasonality or cyclicality of operations	
	The business of the Group are not subject to seasonal or cyclical fluctuations.	
		
4.	Exceptional Items	
	There was no exceptional items in the quarterly financial statement under review.	
		
5.	Accounting Estimates	
	There were no changes in estimates of amounts reported in prior interim periods of the current financial period or in prior financial years that have a material effect in the current interim period.	
		
6.	Issuance or Repayment of Debt and Equity Securities	
	There were no issuances and repayment of debt securities, share buy-backs, share cancellations, share held as treasury shares and resale of treasury shares for the period ended 30 June 2004.	
		
7.	Dividend Paid	
	No dividends were paid during the quarter.	
		
8.	Segmental Reporting	
	The information for each of the Group’s industry segments is as follows:	
		Turnover	Profit/(loss) before tax	Total Assets Employed	
		30.06.04	31.03.04	30.06.04	31.03.04	30.06.04	31.03.04	
		RM	RM	RM	RM	RM	RM	
	Timber extraction and trading	-	-	(2,271)	(225,566)	3,505,520	3,508,093	
	Investment holding	-	-	(912)	(720,907)	6,557,707	6,558,119	
		-	-	(3,183)	(946,473)	10,063,227	10,066,212	
	Group’s share of associated
  Companies results	-	-	-	-	-	-	
		-	-	(3,183)	(946,473)	10,063,227	10,066,212	
	Exceptional items	-	-	-	-	-	-	
				(3,183)	(946,473)	10,063,227	10,066,212	
	Consolidation adjustments*	-	-	-	526,143	-	-	
		-	-	(3,183)	(420,330)	10,063,227	10,066,212	
								
9.	Valuation of Property, Plant and Equipment	
	The valuation of Office Equipment and furniture have been brought forward, without amendment from the previous annual report.	
		
NOTES TO THE UNAUDITED RESULTS FOR THE 1ST QUARTER ENDED 30 JUNE 2004	
		
10.	Subsequent Material Events	
	The subsequent event pertaining to the Proposed Acquisition of Bintang Bulk Movers Sdn Bhd (“BBMSB”), Agenda Wira Sdn Bhd (“AWSB”), Jitu Transport Sdn Bhd (“JTSB”) and Panglima Klasik Sdn Bhd (“PKSB”) is detailed under note 22.	
		
11.	Changes in the Composition of the Group	
	There was no changes in the composition of the Group during the current financial period ended 30 June 2004.	
		
12.	Contingent Liabilities and Contingent Assets	
		Group	
		30.06.04	31.03.04	
		RM	RM	
	Contingent Liability - unsecured			
	Corporate guarantee provided for bank
   Facilities granted to subsidiary	1,143,390	1,143,390	
				
	Contingent Asset			
	Shortfall in profit guarantee receivable from the vendor of 
  Timber rights	6,978,359	6,978,359	
				
	The contingent asset is in respect of the shortfall in profit guarantee for the financial year ended 31 March 1999. The shortfall is receivable from Equatorial Timber Marketing Sdn. Bhd. (“ETM”), the vendor of the timber rights. The Board of Directors has accepted a proposal for the Settlement of the Profit Guarantee shortfall from ETM such that the amount owing will be paid within 18 months from 29 August 2000. ETM is a director related company. The directors are pursuing a resolution of this issue. However there is a proposed resolution under the proposed corporate restructuring as set out in note 22.	
		
13.	Commitments	
	There were no commitments in respect of the Group since the last annual balance sheet date to the date of this report.	
		
14.	Significant Related Party Transactions	
		Group	
		30.06.04	31.03.04	
		RM	RM	
	Ekran Berhad			
	Staff costs for seconded employees	-	184,000 	
	Rental of premises	-	60,000 	
	Printing and stationery charges	-	6,000 	
	Interest income	-	218,944	
					
15.	Review of Performance of the Company and its Principal subsidiaries	
	For the three (3) months period ended 30 June 2004 under review, the pre-tax loss of RM3,183 was mainly due to administration expenses.  	
		
16.	Comment on financial results (current quarter compared with the preceding quarter)	
	The Group recorded a pre-tax loss of RM3,183 for the 1st quarter compared to RM32,152 for the preceding  4th quarter due to lesser administration expenses incurred.	
	
NOTES TO THE UNAUDITED RESULTS FOR THE 1ST QUARTER ENDED 30 JUNE 2004	
		
17.	Prospects for the current financial year	
	We do not foresee any operations for the Group for the next quarter pending the finalisation of the corporate exercise.	
		
18.	Variance of Actual Profit from Forecast Profit	
	Not applicable.	
		
19.	Taxation	
		Current Quarter	Cumulative Quarter	
		30.06.04	30.06.04	
		RM	RM	
	•	Current taxation	568	568	
	•	Deferred taxation	-	-	
	•	Share of tax in associated companies	-	-	
	•	Over provision of prior years	-	-	
		568	568	
					
20.	Profit on sale of Investments and / or Properties	
	There were no profits on sale of unquoted investments and/or properties during the current financial period ended 30 June 2004.	
		
21.	Quoted Securities	
	There was no purchase or disposal of quoted securities during the current financial period ended 30 June 2004.	
		
22.	Status of Corporate Proposals	
	On 16 July 2003, the Company entered into four conditional agreements with Bintang Mover Bhd (“BMB”) and the respective vendors of Bintang Bulk Movers Sdn Bhd (“BBMSB”), Agenda Wira Sdn Bhd, Jitu Transport Sdn Bhd and Panglima Klasik Sdn Bhd setting out the terms and conditions of the Proposed Corporate Restructuring Exercise of PWE as contained in the Requisite Announcement made by PWE to Bursa Securities on the same date.

On 10 October 2003 and 20 January 2004, the Company announced certain revisions relating to the Proposed Corporate Restructuring of PWE. The applications in respect of the proposals and the revisions thereof were submitted to the Securities Commission (“SC”) on 15 October 2003 and 18 February 2004 respectively.

On 24 February 2004, Bursa Securities approved the Company’s application for an extension of time of two (2) months from 14 February 2004 to 14 April 2004 to obtain approvals of the relevant regulatory authorities, namely the SC and the Foreign Investment Committee for the Proposed Corporate Restructuring of PWE pursuant to paragraph 6.1(c) of PN10.

On 6 April 2004, the Company announced that in reply to the Company’s application to Bursa Securities for further extension of time to obtain the relevant authorities’ approval for the Proposed Corporate Restructuring of PWE, Bursa Securities had, vide its letter dated 5 April 2004, stated that given the fact the Company had submitted its regularisation plans to the relevant authorities, Bursa Securities will await the outcome of the Company’s application to the relevant authorities.

	
	NOTES TO THE UNAUDITED RESULTS FOR THE 1ST QUARTER ENDED 30 JUNE 2004
	
22.	Status of Corporate Proposals (continued)	
	
On 24 June 2004, the SC had decided not to approve the Proposed Corporate Restructuring of PWE after taken into account certain issues which give rise to concerns to the SC on the suitability of BBMSB and its group of companies to be listed indirectly via BMB.  On 23 July 2004, the Company submitted an application to the SC to appeal against the SC’s decision not to approve the Proposed Corporate Restructuring of PWE.

On 4 August 2004, the Company announced that Bursa Securities had, vide its letter dated 4 August 2004, stated that given the fact the Company had submitted its application to the SC to appeal against the SC’s decision not to approve the Proposed Corporate Restructuring of PWE, Bursa Securities will await the outcome of the Company’s appeal to the SC.
	
23.	Group Borrowings and Debt Securities.	
	There were no group borrowings and debt securities as at 30 June 2004.	
		
24.	Off Balance Sheet Financial Instruments	
	There were no off balance sheet financial instruments at the date of this report.	
		
25.	Material Litigation	
	There is a Writ of Summons from Public Merchant Bank Berhad in respect of fees owing amounting RM111,800 which is a matter of dispute by the company. There is also a letter of demand from the solicitors of Hong Leong Finance Berhad in respect of guarantee provided to a subsidiary and the company has placed before the legal advisor this matter.	
		
26.	Dividend	
	The Directors do not propose the payment of any interim dividend for the first quarter period ended 30 June 2004.	
		
27.	Earnings Per Share	
	Basic earnings per share is calculated by dividing the net loss attributable to the shareholders of RM3,751            by the weighted average number of ordinary shares in issue as at 30 June 2004 of 42,000,000 shares.

	Weighted average number of ordinary shares	RM’000		
	Issued ordinary shares at beginning of period	42,000		
	Effect of shares issued during the quarter	-		
	Weighted average number of ordinary shares	42,000