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

Notes to Financial Statements

1.	The quarterly financial statements have been prepared using the same accounting policies and methods of computation as compared with the most recent annual financial statement.

2.	The machinery of Wang Corporation Sdn Bhd were sold off over a period of time for RM 1,088,000. The property of Wang Corporation Sdn Bhd (“WCSB”) known as P.T. No. 8544, H.S. (M) 175/90, Mukim of Sungai Pasir, District of Kuala Muda, Kedah were sold off for RM 1,950,000 during the period of time.

The details of Exceptional Items amounting to RM1,294,000 is as follows :-

Provision for diminution in value	2,465,000
Loss on disposal of property of WCSB	1,790,000
	   675,000

Provision for diminution in value	  842,000
Loss on disposal of Plant & Machinery of WCSB	  223,000
	  619,000
	
	Total Exceptional Items is RM1,294,000

3.	There was no extraordinary item during the current financial quarter.

4.	There were tax figures which do not contain any deferred tax and/or adjustment for under or over-provisions in respect of prior years.

5.	There was no pre-acquisition profit for the current financial year to date.

6.	There were disposal of properties during the current financial quarter as follows:
(i)	The machinery of Wang Corporation Sdn Bhd were sold to Arya Plastic Sdn Bhd. Profit on sale was RM 674,229.
(ii)	Land & Factory Building belonging to subsidiary, Wang Corporation Sdn Bhd, located at P.T. No. 8544, H.S. (M) 175/90, Mukim of Sungai Pasir, District of Kuala Muda, Kedah is being sold to Wangsa Pertiwi Sdn Bhd. Profit on sale was RM1,170,979.

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, we expect to provide write-off of investment of RM 11,349,975 in this financial year. Notwithstanding the above and together with the consent of the creditor, we are attempting rescind the winding-up order. The matter is fixed for hearing on 6th December 2000.

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

Notes to Financial Statements (Cont’d)

9.	There were no corporate proposals announced.

10.	As the manufacturing operations of the Company had ceased there are no cyclical or seasonal variations.

11.	There was no issuance and repayment of debt and equity securities, share buy-backs, share cancellations, shares held as treasury shares and resale of treasury for the current financial year to date.

12.	Group borrowings and debt securities as at the end of reporting period:-
(a)	Secured 			= RM 39,302,000
	Unsecured			= RM   9,052,000
(b)	Short term borrowings	= RM 48,354,000
	Long term borrowings	= RM 82,952,000
(c)	All the borrowings are denominated in Ringgit Malaysia.

13.	All subsidiaries’ borrowings amounting to RM 39,302,000 are secured by a corporate guarantee by MYHB. These borrowings are currently in default. The Company has since obtained a Section 176(10) of the Companies Act, 1965 restraining order on 24th November 1999 and subsequently extended to May 24th 2000. The restraining order has since lapsed however the Company applied for a new Section 176 restraining order. The Company had successfully obtained a new restraining order on 16th October 2000 encompassing its subsidiary, Wang Corporation Sdn Bhd.

14.	There were no financial instruments with off  balance sheet risk.

15. 	Please refer	: Appendix I	- Man Yau Holdings Berhad
  Appendix II	- Wang Corporation Sdn Bhd
  Appendix III	- Man Yau Plastic Factory (M) Sdn Bhd
  Appendix IV	- Nostalgic Properties Sdn Bhd
	for the details of pending material litigations.

16 	Segment Reporting
Revenue	Result	        Total Assets
		                     Employed
						RM’000	RM’000	RM’000
	Plastic Segment			       536	  (3,155)	   4,254 	Construction/Property Development	         -   	     (468)	  72,159    
	Investment Holdings/Education	    2,325	  (1,228)	    1,154

17. 	Preceding Year Quarter	Current Year Quarter	Increase/(Decrease)
	As at 30.06.00	As at 30.09.00	in losses
	(1,560,000)	(3,291,000)	1,731,000

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

Notes to Financial Statements (Cont’d)

	The increase in losses is predominantly due to :-
(a)	Financial Interest
(b)	Accountancy Fees
(c)	Legal Fees

18.	Operating losses have been reduced due to severe cost cutting measures despite lower turnover nevertheless finance costs accrued provide the largest portion of the financial burden. The building at Northam Road in Penang had recommenced construction under a new financial package and is due for completion at the end of year 2000.

	The Company obtained a new Section 176 Restraining Order on its creditors incorporating its subsidiary, Wang Corporation Sdn Bhd on 16th October 2000.
 
19.	The Plastics manufacturing activities of the group that are currently manufactured under Watford Technologies Sdn Bhd (formerly known as MYH Construction Sdn Bhd) were 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 present severe financial constraints was marginal and difficult. The plastics business ceased operations in July 2000. 

20.	As we had not projected our financial losses for the year ended 31.12.2000 a variance analysis is not possible (the Company operated its finances on a crisis basis).

21.	There was no dividend paid or declared during the current financial quarter.

							By order of the Board	

30 November 2000					Rahanawati Ali Dawam
Kuala Lumpur							Secretary