ANNOUNCEMENTS


Guoco Group Limited

ANNOUNCEMENT

The board of directors of Guoco Group Limited ("Guoco") announces that First Capital Corporation Ltd ("FCC"), whose shares are listed on The Stock Exchange of Singapore Limited, and of which Guoco holds approximately 54.28% of the issued share capital, made an announcement on 15 September 2000 in respect of its audited results for the year ended 30 June 2000. An abridged version of the aforesaid announcement is set out as follows (note: the expressions "Group", "Company" and "$" mean "FCC group", "FCC" and "Singapore dollars" respectively):

FIRST CAPITAL CORPORATION LTD
(Incorporated in the Republic of Singapore)

FULL YEAR FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT

Full-year financial statement on consolidated results for the year ended 30 June 2000. These figures have been audited:


                                        Group                Company
                                   2000       1999       2000       1999
                                  $'000      $'000      $'000      $'000

Turnover                        219,267    471,671    113,537    195,693
                             ========== ========== ========== ==========
Investment income                 8,739     18,430     60,257    135,555

Other income including
  interest income                 5,965     15,560     53,280     60,138
                             ========== ========== ========== ==========

Operating profit/(loss) before
  income tax, minority interests,
  extraordinary items, interest
  on borrowings, depreciation
  and amortisation, foreign
  exchange gain/(loss) and
  exceptional items              58,634    (70,953)   112,379    193,990

Interest on borrowings          (34,987)   (30,345)   (43,615)   (38,447)

Depreciation and amortisation    (4,039)    (2,557)    (1,481)      (521)

Foreign exchange gain/(loss)      3,715        752      1,572     (4,792)

Exceptional items                81,165    (33,890)    43,124   (169,296)
                             ---------- ---------- ---------- ----------
Operating profit/(loss) before
  income tax, minority interests
  and extraordinary items but
  after interest on borrowings,
  depreciation and amortisation,
  foreign exchange gain/(loss)
  and exceptional items         104,488   (136,993)   111,979    (19,066)

Losses derived from associated
  companies                     (24,816)   (29,625)         -          -

Less income tax                 (20,119)   (22,616)   (22,800)   (43,086)
                             ---------- ---------- ---------- ----------
Operating profit/(loss) after
  tax before deducting minority
  interests                      59,553   (189,234)    89,179    (62,152)

Less minority interests          (4,497)     9,855          -          -
                             ---------- ---------- ---------- ----------
Operating profit/(loss) after
  tax attributable to members
  of the company                 55,056   (179,379)    89,179    (62,152)

Transfer to Capital Reserve       2,000         43      2,000          -
                             ---------- ---------- ---------- ----------
Operating profit/(loss) after
  tax and extraordinary items
  attributable to members of
  the company                    55,056   (179,379)    89,179    (62,152)
                             ========== ========== ========== ==========

                                                         Group Figures
                                                     2000           1999

Operating profit/(loss) after tax before
  deducting minority interests as a percentage
  of turnover                                      27.16%       (40.12)%

Operating profit/(loss) after tax attributable
  to members of the Company as a percentage of
  issued capital and reserves at end of year        5.18%       (14.29)%

Earnings per ordinary share for the year based
  on the operating profit/(loss) after tax
  attributable to members of the Company after
  deducting any provision for preference
  dividends:

     Based on existing issued share capital   14.35 cents  (61.48) cents

     On a fully diluted basis                 13.37 cents  (56.36) cents

Earnings per share based on operating
  profit/(loss) after tax and extraordinary
  items attributable to members of the Company:

     Based on existing issued share capital   14.35 cents  (61.48) cents

     On a fully diluted basis                 13.37 cents  (56.36) cents

Net tangible asset backing per ordinary share       $2.76          $2.78

Bonds and Bank Loan Due 2002 cum Warrants - Alternative Accounting Treatment

If International Accounting Standards No. 32 and No. 39 (which deal, among other things, with accounting for an issue of debts with detachable warrants) had been adopted when preparing the accounts, the profit after tax of the Group and of the Company would have been reduced by approximately $433,000, being adjustment for amortisation of deemed discount on the Bonds and Bank Loan. On the same basis, the net assets of the Group and of the Company would have been increased by approximately $867,000, being the allocated value of the warrants less amortisation of the deemed discount on the Bonds and Bank Loan.


                                       Group                 Company
                                   2000       1999       2000       1999
                                  $'000      $'000      $'000      $'000

Sales reported for first
  half year                      97,223    320,250     72,512     69,211

Operating profit/(loss) after
  tax before deducting minority
  interests reported for first
  half year                      49,350    (47,535)   115,012     (8,608)

Sales reported for second
  half year                     122,044    151,421     41,025    126,482

Operating profit/(loss) after
  tax before deducting minority
  interests reported for second
  half year                      10,203   (141,699)   (25,833)   (53,544)

Amount of any adjustment for under or overprovision of tax in respect of prior years

There was a write back of $3,387,000 tax provisions in respect of prior years for the Group.

Amount of profits on any sale of investments and/or properties


Sale of investments/properties                            $ Profit/(Loss)
Sale of an investment in a subsidiary                     $59,207,000.00
Sale of a long-term investment by a subsidiary            $15,088,000.00
Sale of investment properties by subsidiaries             ($4,379,000.00)

SEGMENTAL RESULTS


                                                             Group
                                                          Profit/(Loss)
                                        Group            Before Interest
                                       Turnover              & Tax
                                   2000       1999       2000       1999
                                  $'000      $'000      $'000      $'000

By Business Activity:

Property development and
  investment                    178,360    434,958     92,399   (118,872)

Fund management and
  investment income              26,012     22,758     40,465     (3,176)

Insurance services               14,895     13,955      6,611     15,400

Associated companies                  -          -    (24,816)   (29,625)
                             ---------- ---------- ---------- ----------
                                219,267    471,671    114,659   (136,273)
                             ========== ========== ========== ==========
By Geographical Location:

Singapore                       216,971    469,753    110,177    (93,045)

Others                            2,296      1,918      4,482    (43,228)
                             ---------- ---------- ---------- ----------
                                219,267    471,671    114,659   (136,273)
                             ========== ========== ========== ==========

BALANCE SHEET


                                       Group                 Company
                                   2000       1999       2000       1999
                                  $'000      $'000      $'000      $'000

Fixed Assets                      2,068      2,406          -          -
Investment Properties           305,170    536,372          -          -
Long-term Investments           185,007     89,301          -          -
Interests in Subsidiaries             -          -  1,109,048    812,373
Interests in Associated
  Companies                     657,641    623,932    251,717    219,624
Amounts due from Minority
  Shareholders of Subsidiaries   23,839     27,273          -          -
Deferred Expenditure              3,999      3,126      3,745      1,416

Current Assets                1,793,530  1,689,014     57,214    137,289

Less: Current Liabilities       622,200    521,944    290,519     86,820
                             ---------- ---------- ---------- ----------
Net Current
  Assets/(Liabilities)        1,171,330  1,167,070   (233,305)    50,469

Less: Non-Current Liabilities
  Amounts due to minority
    shareholders of
    subsidiaries                 19,594     17,213          -          -
  Long-term bank loans          955,713    833,634    200,990          -
  Long-term notes & bonds       245,000    288,014    245,000    288,014
  Deferred taxation                 447      4,296          -          -
  Deferred profit                19,500          -     19,500          -
                             ---------- ---------- ---------- ----------
                              1,240,254  1,143,157    465,490    288,014
                             ---------- ---------- ---------- ----------
                              1,108,800  1,306,323    665,715    795,868
                             ========== ========== ========== ==========

  Representing:

Share Capital & Reserves
  Share Capital                 368,955    363,569    368,955    363,569
  Share Premium                 192,474    397,826    192,474    397,826
  Capital Reserve                 8,774      9,331          -          -
  Exchange Translation Reserve   19,468     38,578      2,493          -
  Investment Revaluation
    Reserve                     212,160    218,124          -          -
  Capital Redemption Reserve      3,083      1,083      3,000      1,000
  Unappropriated Profit         257,682    226,485     98,793     33,473
                             ---------- ---------- ---------- ----------
                              1,062,596  1,254,996    665,715    795,868
Minority Interests               46,204     51,327          -          -
                             ---------- ---------- ---------- ----------
                              1,108,800  1,306,323    665,715    795,868
                             ========== ========== ========== ==========

REVIEW OF THE PERFORMANCE OF THE COMPANY AND ITS PRINCIPAL SUBSIDIARIES

For the year ended 30 June 2000, the Group's turnover decreased by 54% to $219.3 million. The Group sold 153 units in Aquarius By The Park and 161 units in Sanctuary Green during the financial year compared to 639 units sold in the previous financial year. Turnover at the Company level decreased by 42% to $113.5 million primarily due to lower dividend income from its subsidiaries.

Despite the lower turnover, the Group made an operating profit after tax of $55.1 million against a loss of $179.4 million in the previous financial year. The operating profit was mainly attributable to gains from its investment dealing activities, the sale of a subsidiary, Century Square Development Ltd ("CSD"), which owns the Century Square Shopping Mall and write back of provision for foreseeable losses on development projects. Other divestment of non-core assets during the financial year included the sale of its entire retail space in Kovan Centre, terraced factories in Paya Lebar and office units in Parkway Parade.

As provisions were made for the Group's overseas investments, the Group's associated companies turned in a loss before tax of $24.8 million.

The classification of exceptional items is a result of an early adoption of revised Singapore Statement of Accounting Standard No. 8 ("SAS 8"). In line with SAS 8, with effect from the financial year under review, the Group will treat the sale of long-term investments and provision for diminution in value of the long-term investments as "Exceptional Items". Previously the Group treated such items as "Extraordinary Items". Arising from the change of accounting policy, certain comparative figures in the previous financial year have been reclassified to allow comparability with current year's figures.

The net tangible asset backing per share has decreased marginally from $2.78 as at 30 June 1999 to $2.76 as at 30 June 2000.

CURRENT DEVELOPMENTS

During the financial year under review, the Group completed the acquisitions of the Leonie Hill and Meyer Road sites. The Group also acquired a freehold site in Paya Lebar and a 40% interest in the freehold site at 6 Cuscaden Walk.

The Group has launched The Gardens at Bishan and intends to launch the remaining units in Aquarius By The Park and Sanctuary Green in the later part of this year. Ladyhill, in which the Group has a 40% interest, will also be launched this year.

COMMENTARY ON CURRENT YEAR PROSPECTS

With the encouraging economic growth and sustained recovery in the residential property market, the Directors expect the Group's property development business to perform satisfactorily in the current year. The Group will continue to provide quality housing and improve its business processes through information technology and e-business to enhance its product quality and marketability.

In the present economic outlook and barring unforeseen circumstances, the Directors expect the Group to continue to be profitable for the current financial year.

DIVIDEND

(a) Present Period


Name of         Proposed Ordinary   Preference         Preference
  Dividend        (First and Final)
Dividend Type   Cash                Cash               Cash
Dividend Rate   7% per ordinary     7% per preference  5% per preference
                  share less tax      share less tax     share less tax
Par value of
  shares        $1.00               $0.01              $0.01
Tax Rate        25.5%               25.5%/26%          26%

(b) Previous Corresponding Period


Name of         Proposed Ordinary   Preference         Preference
  Dividend        (First and Final)
Dividend Type   Cash                Cash               Cash
Dividend Rate   5% per ordinary     7% per preference  5% per preference 
                  share less tax      share less tax     share less tax
Par value of
  shares        $1.00               $0.01              $0.01
Tax Rate        26%                 26%                26%

(c) Total Annual Dividend


                                              2000                 1999
                                                 $                    $

Ordinary                                19,481,000           13,373,000
Preference                               2,378,000            8,393,000
                                        ----------           ----------
Total:                                  21,859,000           21,766,000
                                        ==========           ==========

15 September 2000

By Order Of The Board
Doris W. N. Wong
Company Secretary

Hong Kong, 15 September 2000