First Quarter Financial Statement Announcement for the Period Ended 31/3/2008

Income Statement

Balance Sheet

Review of Performance

Review of the performance of the Group

Continuing operations

The Group achieved a turnover of $97.5 million for 1Q2008, representing an increase of 90.6% compared to 1Q2007.. The increase in turnover came largely from a retail business ($25.2 million), manufacturing and distribution ($17.8 million) and securities investments ($3.5 million).

The Group registered a profit before taxation and minority interests of $0.1 million from continuing operations in 1Q 2008, which is a reduction of 2.7 million from 1Q 2007. The lower result was largely caused by:>

(a) an unrealised fair valuation loss of $4.4 million on investment securities in 1Q 2008 compared to a gain of $3.3 million in 1Q 2007 reflecting the sharp volatility in the price of the Group's remaining holding of China Energy Limited's shares. However, there was a net increase of $5.5 million from unrealised gain on fair valuation of investment funds;

(b) a loss of $1.1 million from the Group's retail operations which was by and large due to surging raw material costs, staff costs and rentals, although there was an increase of $2.0 million in the operating profit from the Group's food distribution business;

(d) an increase of $0.6 million in finance costs which was mainly related to the Group's newly acquired retail operations..

Discontinued operations

The results relating to the Group's investment property, One Phillip Street ("OPS") has been classified as discontinued operations in accordance with FRS 105 following the Group's announcement on 20 February 2008 of its proposed divestment. For 1Q 2008, the profit before taxation relating to OPS was $14.4 million (which included an unrealised fair valuation gain of $14.0 million that has been recognised in compliance with FRS 40) compared with a net loss of $0.1 million in 1Q 2007. A deferred tax provision of $2.5 million, recognised in relation to the fair valuation gain, has been set off against the profit of $14.4 million.

Overall results.

Overall, for the continuing and discontinued operations combined, the Group achieved an increase in profit before taxation of $10.5 million, rising from $4.0 million in 1Q 2007 to $14.5 million in 1Q 2008. Profit after-tax increased by $7.4 million, increasing from $3.6 million in 1Q 2007 to $11.1 million in 1Q 2008.

Significant changes in the balance sheet since end December 2007

As at 31 March 2008, investments in associated companies amounted to $212.5 million which represented the Group's interests in Robinson and Company, Limited ($187.1 million), Food Junction Holdings Limited ($21.4 million) and JVC Capital Pte Ltd ($4.0 million). The investment in JVC Capital Pte Ltd ("JVC") was acquired on 12 March 2008. (N/B The Group's interest in Robinson and Company, Limited was subsequently disposed on 3 April 2008.)..

Stocks amounted to $44.5 million as at 31 March 2008 compared with $40.0 million as at 31 December 2007. The increase largely relates to a build up of investories to cover factory relocation and seasonal sales in the Group's Malaysian operations.

During Q1 2008, the Group's cash reserves ( comprising fixed deposits, cash and bank balances and bank overdrafts ) have been deployed to fund the Group's business needs, the JVC acquisition and to partially reduce the Group's Malaysian operations.

Commentary on Current Year Prospects

With the economic slowdown becoming more widespread, regionally and globally, the economic outlook is for the industry is uncertain. Main converns are greater inflationary pressures if commodity and energy prices were to rise further and the lowering of disposable incomes if the economy were to weaken further. Such developments would affect turnover and profitability.

Management would continue to seek means to rationalie under-performing business ubits, improve operating and cost efficiencies and look for new revenue opportunities to enhance profitability.