Investor Relations

Further to the announcement on the unaudited results for the half-year ended 30 June 2002 made on 11 September 2002, the Board of Directors wishes to provide the following information as requested by the Singapore Exchange Limited:-

(a) We refer to item 7(a), "the loss was mainly due to a loss of $1.1m, arising from continued poor economic situation and run-in expenses of the two joint ventures,". Please provide a breakdown of the losses in relation to the two joint ventures.

The breakdown of the losses from the joint ventures is as follows :

		Our share	Amount ($ million)
Club Asiana Pte Ltd	1.1m	55%	0.6m
Imperium Fine Dining And Entertainment Pte Ltd	1.1m	50%	0.5m
			1.1m

(b) We refer to item 3(e) relating to "Other Operating Expenses" amounting to $11.15m from $8.6m. Please provide a breakdown of the items and provide reasons for the $2.55m increase.

Other operating expenses
		($'000)		($'000)
		Jan-Jun 2002		Jan-Jun 2001		Variance
Advertising & promotion		1094		684		(410)
Depreciation		1023		574		(449)
Rental		3989		3054		(935)
Upkeep		835		592		(243)
Utilities		1723		1403		(320)
Creditcard commission		552		475		(77)
Laundry		240		240		-
Repair & maintenance		230		233		3
Others		1464		1408		(56)
		11150		8663		(2,487)

The variances are due mainly to the five new outlets opened during the second half of year 2001.


(c) We refer to item 10(a) relating to the Balance Sheet. Please provide a breakdown of the figures in a similar format as presented in your Annual Report and provide explanations for items with material fluctuations where applicable.

		Group			Company
		30/06/2002	31/12/2001		30/06/2002	31/12/2001
		$'000	$'000		$'000	$'000
ASSETS
Current assets:
Cash and bank balances		3,779	4,570		159	114
Trade receivables		1,442	1,816		-	-
Other receivables, deposits and prepayments		4,135	2,907		2,458	2,821
Inventories		802	857		-	-
Total current assets		10,158	10,150		2,617	2,935
Non-current assets:
Subsidiaries		-	-		1,797	1,797
Joint venture		(483)	(312)		1,495	495
Goodwill		142	177		-	-
Property, plant and equipment		10,037	9,529		-	-
Total non-current assets		9,696	9,394		3,292	2,292
Total assets		19,854	19,544		5,909	5,227
LIABILITIES AND EQUITY
Current liabilities:
Trade payables		2,966	3,714		-	-
Other payables		7,585	6,157		794	165
Current portion of finance leases		313	298		-	-
Term loans		976	734		-	-
Income tax payable		254	120		7	7
Total current liabilities		12,094	11,023		801	172
Non-current liabilities:
Finance leases		234	259		-	-
Long term loans		2,450	2,341		-	-
Deferred income tax		114	115		-	-
Total non-current liabilities		2,798	2,715		-	-
Minority interests		447	463		-	-
Capital and reserves:
Issued capital		2,500	2,500		2,500	2,500
Share premium		2,927	2,927		2,927	2,927
Accumulated (losses) profits		(912)	(84)		(319)	(372)
Total equity		4,515	5,343		5,108	5,055
Total liabilities and equity		19,854	19,544		5,909	5,227

Note:
Increase in current liabilities due mainly to additional term loans for financing new outlet at Plaza Singapore and accrued expenses.


(d) We note that the negative working capital of the Company increased from $0.87m to $1.94m. We further note in item 7(b), "the Group does not expect to return to profitabilty for the financial year ending 31 December 2002". This raises the question about whether the Company will have adequate financial resources to meet its short-term obligations. Please provide further information on whether the Company has adequate resources to meet its short-term obligations.

The Management will explore ways to increase cashflow such as introducing more sales promotion and obtaining temporary shareholders' loans to meet the Company's short-term obligations. We are also looking into other avenues to raise capital and an appropriate announcement will be made once our plans are finalised.