MAN YAU HOLDINGS BERHAD
(Company No. : 254679-T)

Notes to Financial Statements

1.	The same accounting policies and methods of computation have been used.

2.	The machineries of Wang Corporation Sdn Bhd were sold off over a period of time for RM512,000. However, commissions earned for selling these machineries were earned by Watford Technologies Sdn Bhd amounting to RM551,000 and therefore not part of Watford’s operating revenue and thus in accordance with International Accounting Standards are treated as “one off” exceptional items.

3.	There were no extraordinary items during the current financial quarter.

4.	There was no tax figures contain any deferred tax and/or adjustment for under or over-provisions in respect of prior years.

5.	There were no pre-acquisition profits for the current financial year to date.

6.	There were no disposal of investments and/or properties during the current financial quarter.

7.	There was no disposal or purchase of quoted securities during the current financial quarter.

8.	As a winding up petition has been obtained on Man Yau Plastic Factory (M) Sdn Bhd by a creditor, the Company expects to provide write-off of investment of RM 11,349,975 in this financial year.

9.	The Company had on 28 July 2000 entered into a Memorandum of Understanding with Applied Business Systems Sdn Bhd for the following:

i)	Proposed acquisition by the Company of the entire issued and paid up capital of Applied Business Systems Sdn Bhd;
ii)	Proposed capital reduction of the exisitng issued and paid up capital and such other consolidation and/or reconstruction of the share capital of the Company; and
iii)	Proposed restructuring of the outstanding debts owing by the Company and its subsidiaries.

10.	N/A

Notes to Financial Statements (Cont’d)

11.	The Group and the Company did not undertake any issuance and/or repayment of debt and equity securities, share buy-backs, share cancellations, shares held as treasury shares and resale of treasury shares for the current financial year to date.

12.	Group borrowings and debt securities as at the end of reporting period:-
(a)	Secured 				= RM 37,313,000
	Unsecured				= RM 8,582,000
(b)	Short term borrowings		= RM 45,895,000
	Long term borrowings		= RM 77,240,000
(c)	All the borrowings are denominated in Ringgit Malaysia.

13.	All subsidiaries’ borrowings amounting to RM 37,313,000 are secured by a corporate guarantee by MYHB. These borrowings are currently in default. The  Company obtained a Restraining Order under  Section 176 (10) of the Companies Act, 1965 on 24th November 1999 and the Order had subsequently been extended to 24th May 2000. The Restraining Order lapsed but however on 23rd August 2000, a fresh application for Restraining Order was filed for the Company and its subsidiary, Wang Corporation Sdn Bhd. A date of hearing has yet to be fixed.

14.	N/A

15.	Details of pending material litigation for the Group and the Company:
	Please refer	: Appendix I	- Man Yau Holdings Berhad
  Appendix II	- Wang Corporation Sdn Bhd
  Appendix III	- Man Yau Plastic (M) Sdn Bhd
	
16 	Segment Reporting
Revenue	Result		Total 
Assets
		                  Employed
							RM’000	RM’000       RM’000
	Plastic Segment				     	      536	                (4,359)	(0.01)
	Construction/Property Development	        	       -		     (323)	     -
	Investment holdings/Education			    1,135	     (938)	(0.02)

17. 	There was no material change in the profit before taxation for the quarter reported on as compared with the preceding quarter.

18.	Operating losses have been reduced due to severe cost cutting measures despite lower turnover. The construction of a building at Northam Road in Penang by a subsidiary, Nostalgia Properties Sdn Bhd had recommenced construction under a new financial package and is due for completion at the end of year 2000.

Notes to Financial Statements (Cont’d)

19.	The Plastics manufacturing activities of the Group that are currently manufactured under Watford Technologies Sdn Bhd (formerly known as MYH Construction Sdn Bhd) are operational on a limited scaled down basis. We do not see positive growth in the last half of this year due to 
(i)	Increase prices for Raw Materials by over 20%.
(ii)	Cyclical downturn in the last quarter of the year.
(iii)	Overcapacity of the plastics industry.
The plastics industry is facing increasing competition from countries like China and thus the viability of continuing the plastics business under the severe financial constraints is being examined.

20.	N/A

21.	The Directors do not recommend the payment of an interim dividend for the current financial period.

								By order of the Board

7 September 2000					Rahanawati Ali Dawam
Kuala Lumpur						Secretary