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									GADANG HOLDINGS BERHAD (278114-K)
UNAUDITED 2ND QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL QUARTER ENDED 30 NOVEMBER 2002
25 October 2002
CONDENSED CONSOLIDATED INCOME STATEMENT


                                            INDIVIDUAL PERIOD             CUMULATIVE PERIOD
                                         CURRENT     PRECEDING           CURRENT PRECEDING
                                         QUARTER        YEAR             YEAR TO       YEAR
                                                     CORRESPON             DATE     CORRESPON
                                                       - DING                          - DING
                                                      QUARTER                        PERIOD
                                         30/11/2002   30/11/2001         30/11/2002  30/11/2001
                                          RM'000       RM'000              RM'000     RM'000



     Revenue                                 53,793        31,637            83,318       77,107

     Operating expenses                     (53,060)       (30,346)         (82,665)      (73,868)

     Other operating income                    354             83              828           253

     Profit from operations                   1,087         1,374             1,481        3,492

     Share of results of joint venture       (1,246)           -             (1,246)         132

     Finance costs                             (787)        (1,878)          (1,589)       (3,819)

     Investment income                           4            142                4           154

     Profit before tax                        (942)          (362)          (1,350)          (41)

     Taxation                                (1,255)         (437)          (1,318)       (1,007)

     Profit after taxation                   (2,197)         (799)          (2,668)       (1,048)

     Minority interest                         (94)                (9)           83         (572)

     Profit attributable to
      shareholders                           (2,291)         (808)          (2,585)       (1,620)



     Earnings per share (Sen)
     (i) Basic                                (5.76)        (4.08)            (8.90)       (8.19)

     (ii) Diluted                             (4.17)         (4.08)           (5.65)       (8.19)

     The Condensed Consolidated Income Statement should be read in conjunction with the
     Annual Financial Report for the year ended 31 May 2002
GADANG HOLDINGS BERHAD (278114-K)
UNAUDITED 2ND QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL QUARTER ENDED 30 NOVEMBER 2002

CONDENSED CONSOLIDATED BALANCE SHEET

                                                               AS AT END         AS AT
                                                              OF CURRENT       LAST YEAR
                                                               QUARTER          AUDITED
                                                                                REPORT

                                                                30/11/2002      31/05/2002
                                                                 RM'000          RM'000
                                                               UNAUDITED        AUDITED

  PROPERTY, PLANT AND EQUIPMENT                                      33,118          32,990
  LONG TERM INVESTMENT                                                  126             126
  INTANGIBLE ASSETS                                                     -               -

  CURRENT ASSETS
     Inventories                                                        464             662
     Trade and other receivables                                    132,437         104,343
     Development properties                                          14,942          24,754
     Amount due from customers on contracts                          33,957          32,969
     Short Term Investments                                           5,895           8,078
     Cash and bank balances                                           5,982           3,204
     Deposit with licensed financial institutions                    14,100             -

                                                                    207,777         174,010
  Current Liabilities
     Trade and other payables                                        68,693          73,942
     Borrowings                                                      59,944          62,909
     Provision for Taxation                                           3,107           3,649

                                                                    131,744         140,500

  Net Current Assets                                                  76,033         33,510

                                                                     109,277         66,626
  Shareholders' Funds
     Share Capital                                                   49,750          19,900
     Reserves                                                         5,715           8,969

                                                                     55,465          28,869
  Irredeemable Convertible Unsecured Loan Stocks                     14,502
  Minority Interests                                                  2,499           2,093
  Long Term Liabilities: -
      Borrowings                                                     34,540          33,393
      Deferred Taxation                                               2,271           2,271

                                                                    109,277          66,626
                                                                        -               -
  Net tangible assets per share (RM)                                   1.11            1.45

  The Condensed Consolidated Balance Sheet should be read in conjunction with the
  Annual Financial Report for the year ended 31 May 2002
GADANG HOLDINGS BERHAD (278114-K)
UNAUDITED 2ND QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL QUARTER ENDED 30 NOVEMBER 2002

CONDENSED CONSOLIDATED CASH FLOW STATEMENT
                                                                    CUMULATIVE
                                                                   CURRENT YEAR
                                                                      TO DATE
                                                                      30/11/2002
                                                                        RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before tax                                                        (1,350)

Adjustment for non-cash flow:-
Non-cash items                                                                1,763
Non-operating items                                                           3,686

Operating profit/(loss) before changes
 in working capital                                                           4,099

Changes in working capital:-
Net changes in current assets                                                (9,360)
Net changes in current liabilities                                             (863)
Tax paid                                                                     (1,318)

Net cash flows from operating activities                                     (7,442)

CASH FLOWS FROM INVESTING ACTIVITIES
Equity investments                                                              -
Other investments                                                               900

Net cash flows (used in) /from operating activities                             900

CASH FLOWS FROM INVESTING ACTIVITIES

Bank borrowings                                                                (439)
Interest paid                                                                (3,686)
Payment to hire purchase creditors                                             (612)
Proceeds from right issue                                                    29,850
Others                                                                         (592)

Net cash flows (used in) /from investing activities                          24,521

NET CHANGES IN CASH AND CASH EQUIVALENTS                                     17,979

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                              (14,059)

CASH AND CASH EQUIVALENTS AT END OF YEAR                                      3,920

Note: There are no comparative figures as this is the first interim financial report prepared in
accordance with MASB 26
The Condensed Consolidated Cash Flow Statement should be read in conjunction with the
Annual Financial Report for the year ended 31 May 2002
GADANG HOLDINGS BERHAD (278114-K)
UNAUDITED 2ND QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL QUARTER ENDED 30 NOVEMBER 2002

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                               Reserves     Reserves
                                                  Share      attributable attributable     Retained
                                                 capital      to capital to revenue         profits       Total
                                                 RM'000        RM'000       RM'000         RM'000        RM'000
Current quarter ended
30 November 2002

Balance at beginning of year                        19,900        (7,080)        4,269        11,780        28,869

Movement during the period                          29,850          (669)           -          (2,585)      26,596

Balance at end of year                              49,750        (7,749)        4,269          9,195       55,465
                                                                                                               -


Note: There are no comparative figures as this is the first interim financial report prepared in accordance with
MASB 26

The Condensed Consolidated Statement of Changes in Equity should be read in conjunction with the
Annual Financial Report for the year ended 31 May 2002
GADANG HOLDINGS BERHAD (278114-K)
UNAUDITED 2ND QUARTER REPORT ON CONSOLIDATED RESULTS
FOR THE FINANCIAL QUARTER ENDED 30 NOVEMBER 2002

NOTES

  1. Accounting Policies

  The interim financial statement has been prepared in accordance with MASB 26 "Interim Financial Reporting" and
  should be read in conjunction with the audited financial statements of the Group for the financial year ended 31 May
  2002.

  The interim financial statements have been prepared using the same accounting policies and method of computation
  as those used in the preparation of the most recent annual financial statements.

  2. Audit Qualification

  There were no qualifications on audit report of the preceding annual financial statements

  3. Seasonality or cyclicality of interim operations

  There were no seasonality and cyclicality factors on the operations of the Group.

  4. Exceptional Items

  There were no exceptional items during the period under review.

  5. Changes in Estimates

  There were no material changes in estimates of the amounts reported in prior interim period of the current financial
  year or in prior financial years.

  6. Issuance and Repayments of Debt and Equity Securities

  During the financial quarter under review, the Company had:-

  i. increased its issued and paid up share capital from RM19,900,000 to RM49,750,000 by way of the issuance of
  renounceable rights issue of 29,850,000 ordinary shares of RM1.00 each at an issue price of RM1.00 per share;

  ii. issued RM14,502,000 nominal value of 5 year, 3% Irredeemable Convertible Unsecured Loan Stocks ("ICULS")
  at 100% of the nominal value in the Company.

  7. Dividend Paid

  There were no dividends paid since the end of the previous financial year.




  8. Segmental Reporting
                                                                   Profit/(Loss)
                                                               Profit/(Loss)              Assets
                                                      Turnover   Before Taxation
                                                    Turnover Before Taxation             Employed
                                                      RM'000
                                                      RM'000         RM'000
                                                                    RM'000                RM'000

  Earthwork, building and civil engineering             21,436              352          172,420
   and construction works                               66,367         (1,655)
  Processing, and supply of rock products
   and manufacturing and trading of
   ready mixed concrete                                    -             (478)
  Property investment and development                    5,223
                                                        16,094              279
                                                                        1,575                 30,912
  Manufacturing and trading of
   paint products                                          857           (792)
                                                         26,659
                                                        83,318               512
                                                                       (1,350)                205,087
9. Valuations of Property, Plant and Equipment

The valuations of property, plant and equipment have been brought forward without any amendments from the
previous annual financial statements.

10. Events Subsequent to the Balance Sheet Date

The Company had on 30 December 2002 announced to the Kuala Lumpur Stock Exchange that it had on 28
December 2002 completed the acquisition of Mandy Corporation Sdn Bhd ("Mandy") in accordance with the sale
and purchase agreement dated 7 October 1997 entered into between the Company and the vendors of Mandy. The
Company now owns 100% equity interest in Mandy, thereby resulting in Mandy becoming a wholly-owned
subsidiary of the Company.

11. Changes in Composition of the Group

There were no changes in the composition of the Group during the period under review.

12. Contingent Liabilities

The unsecured corporate guarantees given by the Company to trade suppliers and various financial institutions for
bank and hire purchase facilities granted to subsidiary companies amounted to RM82.4 million.

13. Review of Performance

The Group recorded a higher revenue of RM83.32 million as compared to RM77.11 million achieved in the
previous corresponding period. The higher revenue was mainly contributed by its property division for its
completion of its Phase 1 development project in Puchong which comprises of 476 units of medium cost apartments
and the increase in construction activities of its telecommunication division.

However, the Group registered a higher consolidated net loss of RM2.58 million as compared to RM1.62 million
recorded in the previous corresponding period. The increase in losses was mainly attributable to the provision for
doubtful debts and lower profit margin contributed from its telecommunication activities, coupled with the effects
of the under provision of tax for prior year and loss arising from its paint manufacturing division.

14. Comparison With Preceding Quarter's Results

The revenue of the Group increased to RM53.73 million for the quarter under review as compared to RM29.52
million achieved in previous quarter. However, the Group recorded a higher consolidated net loss of RM2.29
million as compared to a consolidated net loss of RM0.29 million recorded in the previous quarter. This was mainly
attributable to the provision for doubtful debts, losses incurred by its paint manufacturing division and the under
provision of tax for prior year.

15. Prospects

In light of the current economic uncertainties, the Board expects the coming financial quarter to remain challenging.
However, the Board will strive to improve profitability by securing more viable construction contracts.

16. Variance of Actual Profit from Forecast Profit and Shortfall in Profit Guarantee

Not applicable.
17. Taxation

Taxation comprises of:-
                                                     Current        Financial
                                                     Quarter      Year-to-date
                                                     RM'000           RM'000
Taxation
- Current                                                 349             412
- Under / (over) provision
  of prior years                                          906             906
                                                        1,255           1,318
Deferred taxation                                         -               -
                                                        1,255           1,318

The effective tax rate for the Group for the financial year to date is higher than the statutory tax rate because certain
expenses are not allowable as deduction for tax purposes and that no group relief is available with respect to losses
incurred by companies in the Group.


18. Sales of Unquoted Investments/Properties

There were no disposals of unquoted investments or properties during the period under review.

19. Quoted Securities

a) There were no purchases and disposals of quoted securities during the period under review.

b) Investment in quoted shares as at 30 November 2002:-

                                       RM'000
   i) At cost                             176
   ii) At carrying value                  176
   iii) At market value                   107

20. Corporate Proposals

i. The Company has launched the Employees Share Option Scheme ("ESOS") on 1 November 2002. The ESOS
shall be in force for a period of 5 years from 1 November 2002 to 31 October 2007. There were no ESOS shares
exercised as at to-date.

ii. The status of utilisation of the proceeds from the Company's rights issue exercise which was completed on 29
October 2002 as at the date of this announcement is as follows:-


                                                                 As proposed          Actual
                                                                     RM'000          RM'000

Total proceeds raised                                                  29,850         29,850

Utilisation:-
i. Repayment of bank borrowings                                      11,530          -
 b) Proposed development of a project inAugust 2002 are as follows:- arising
 # Investment loss is recorded for 31 Segambut, Kuala
ii. No gain or in quoted shares as atthe aforesaid disposal as the loss3,000 therefrom have been provided for in
                                                                                   3,000
Lumpur
iii. Working capital                                                 14,020       14,020
iv. Expenses related to the rights issue exercise                      1,300       1,000

                                                                       29,850         18,020
21. Group Borrowings

The details of the Group borrowings are as follows: -
                                                                      Secured     Unsecured          Total
                                                                      RM'000        RM'000          RM'000

Short term borrowings                                                   6,369         53,575        59,944         -

Long term borrowings                                                    4,826         26,976        31,802

3% Irredeemable Convertible Unsecured Loan Stocks                            0        14,502        14,502

                                                                       11,195         95,053       106,248


22. Off Balance Sheet Financial Instruments

There were no financial instruments with off balance sheet risk as at the date of this report.


23. Material Litigation

The details of material litigations which are still pending as at the date of this announcement are as follows:-

i) On 30 March 1999, Gadang Engineering (M) Sdn Bhd ("GESB"), a wholly-owned subsidiary of Gadang
Holdings Berhad, filed a civil suit against Meda Property Services Sdn Bhd for a sum of RM1,181,199.83 being
debt due for the construction work done by GESB. The Defendant has filed a counterclaim for RM1,632,840.62 as
general damages and in alternative, damages to be assessed at RM3,000 per day. The case has been fixed for a
continuing hearing on 31 March 2003, 17 April 2003, 19 May 2003 and 20 May 2003.

ii) On 30 March 1999, GESB has also filed a civil suit against Meda System Built Sdn Bhd for a sum
of RM2,268,632.27 being debt due for construction work done by GESB. The case has been fixed for
hearing on 9 June 2003 to 11 June 2003.

iii) On 12 March 2002, GESB applied to intervene in the proceedings commenced by L'Grande Development Sdn
Bhd ("L'Grande") against Bukit Cerakah Development Sdn Bhd (now known as Puncak Alam Housing Sdn Bhd)
("BCD") in respect of a particular project. BCD sought a counterclaim against L'Grande. In BCD's defense, BCD
had made various allegations of defective works done by L'Grande, one of which has arbitrarily and unilaterally
imputed blame on the part of GESB, being the sub-contractor for its earthworks. GESB applied to Court for an
order to intervene as a defendant to the counterclaim to be given the right to properly refute the serious allegation
made against GESB. On 10 June 2002, the Court had allowed GESB's application to intervene.

On 16 July 2002, Pembinaan Era Dinamik Sdn Bhd ("PED") applied to intervene in the proceedings on the basis
that any decision by the Court in regard to GESB's liability in the Action by Counterclaim would affect PED and
therefore it is necessary that it preserve its rights.

Thereafter, on 29 July 2002, GESB had filed a Defence and Counterclaim against BCD and brought PED in as the
2nd Defendant to the Counterclaim within Counterclaim being the main contractor, seeking a total claim of
RM4,746,519.35 together with interest and costs for the sub-contract works done by GESB. As against BCD,
GESB seeks that BCD be held liable in the event PED defaults in payment. On 3 September 2002, GESB filed an
application for Summary Judgement against PED for the sum of RM4,244,320.83 being the outstanding progress
payments due and owing to GESB.

On 18 October 2002, the Court had allowed PED's application to intervene. On 22 January 2003, the Senior
Assistant Registrar had dismissed GESB's application for Summary Judgement due to triable issues which ought to
be determined. On 24 January 2003, GESB has filed a Notice of Appeal to Judge in Chambers to appeal against the
said decision.
23. Material Litigation - Cont'd

iv) Gadang Holdings Bhd (“Gadang”) who had undertaken and assumed all the rights and obligations of the
Consortium arising from a particular project pursuant to a novation agreement entered into between Gadang and
the Consortium dated 13 September 2000 brought a claim of RM1,267,959.42 against CGU Insurance Bhd
("CGU") and SPK Insurance Brokers Sdn Bhd ("SPK") for the refund of premium previously paid which was
supposed to cover a portion of the total estimated contract value which was not executed.

CGU has filed its Memorandum of Appearance on 25 November 2002 while SPK has requested for additional
time until 5 December 2002 to enter appearance.



24. Dividend

The Board of Directors does not recommend the payment of any dividend for the financial period ended 30
November 2002.


25. Earnings Per Share

i. Basic earnings per share
The basic earnings per share has been calculated by dividing the Group's net profit for the quarter/ year to -date by
the weight average number of ordinary shares in issue during the quarter/year to-date:-


                                      INDIVIDUAL PERIOD                         CUMULATIVE PERIOD
                                    CURRENT PRECEDING                           CURRENT PRECEDING
                                    QUARTER      YEAR                           YEAR TO       YEAR
                                              CORRESPON                           DATE     CORRESPON
                                                - DING                                        - DING
                                               QUARTER                                      PERIOD
                                    30/11/2002 30/11/2001                       30/11/2002  30/11/2001
                                     RM'000     RM'000                           RM'000      RM'000
Net profit attributable to
shareholders                            (2,291)          (808)                        (2,585)       (1,620)

Number of ordinary shares at
 beginning of period                    19,900        19,900                         19,900         19,900
Effect of right issue                   19,860          (120)                         9,161           (120)

Weighted average number of
 ordinary shares                        39,760        19,780                         29,061         19,780
Basic earning per share (sen)              (5.8)         (4.1)                          (8.9)          (8.2)

ii. Diluted earnings per share
The diluted earnings per share has been calculated by dividing the Group's net profit for the quarter/ year to -date by
the weight average number of ordinary shares that would have been in issue upon full conversion of the
Irredeemable Covertible Unsecured Loan Stocks ("ICULS") 2002/2007 and the exercise of the remaining option
under the Employee Share Option Scheme ("ESOS"), adjusted for the number of such shares that would have been
issued at fair value, calculated as follows:-


Net profit attributable to
shareholders                            (2,291)          (808)                        (2,585)       (1,620)
Adjusted profit for 3% ICULS                28            -                              122           -
                                        (2,263)          (808)                        (2,463)       (1,620)
Weighted average number of
ordinary shares as per basic EPS        39,760        19,780                         29,061         19,780
Effect of ESOS                             -             -                              -              -
Effect of ICULS                         14,502           -                           14,502            -
Weighted average number of
  ordinary shares (diluted)             54,262        19,780                         43,563         19,780
Diluted earning per share (sen)            (4.2)         (4.1)                          (5.7)          (8.2)

								
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