"As a result of the difficult trading conditions, the group embraced a "Back to Basics" strategy and initiated a thorough review of each segment of our business and the markets in which they operated."

On behalf of the Board of Directors , I present an overview of our business activities and srategies undertaken for the financal year ended 31 December 2000.

By the end of 2000, the level of construction activity in Singapore had declined for 9 consecutive quarters . The total value of contracts excluding reclamation projects, awarded in 2000 fell by 10.1%. This drop in construction demand follows the 18% decline experienced in 1999. Under these difficult trading conditions , both volumes and prices for most construction materials continued to fall.

FINANCIAL REVIEW
At Group level, turnover of $258.5 million was 14.2% lower than that of $301.3 million in the previous year due largely to the generally low prices for construction materials and the disposals of the three under-performing subsidiaries during the year. With the lower turnover, and $10. 5 million for depreciation and amortization, the Group incurred a loss of $10. 6 million before taxation but after accounting for income derived from associated companies amounting to $2. 6 million. This was due in part to losses incurred by the quarry and related logistic s operations under the said three subsidiaries which have been disposed of and the Hong Kong precast concrete business. Operating loss after tax attributable to members amounted to $10.3 million during the year under review.

The Group ended the year with a cash balance of approximately $27 million as at 31 December 2000.

Notwithstanding the losses in 2000, the Board is recommending a first and final dividend of 3% les s 24. 5% tax. The total net dividend payable will amount to $883, 350, which is based on the total issued capital of 195, 000, 000 s hares of 20 cents each as at 31 Dec ember 2000.

DIVESTMENTS/ACQUISITIONS/RESTRUCTURING
As a result of the difficult trading conditions, the Group embraced a Back to Basics strategy and initiated a thorough review of each segment of our business and the markets in which they operated. The aim of the review was to identify competitive business with good quality assets as well as high cost businesses with poor long term cost competitiveness. The first component of the Back to Basics approach was to progressively divest or shut down non-competitive high cost operations identified in the review. The second component was to take advantage of the current downturn to acquire attractive assets to improve the quality of our asset base.