08:49     BLU SPA<08176> - Quarterly Results Announcement (2)                 

                                                                              
    SSAP 12 (Revised) Income taxes                                            
                                                                              
    In the current period, the Group has adopted SSAP 12                      
    (Revised) "Income Taxes".  The principle effect of the                    
     implementation of SSAP 12 (Revised) is in relation to deferred tax.      
    SSAP 12 (Revised) requires the adoption of a balance sheet liability      
    method, whereby deferred tax is recognized in respect of all temporary    
    differences between the carrying amounts of assets and liabilities in the 
    financial statements and the corresponding tax bases used in the          
    computation of taxable profits, with limited exceptions.  In the absence  
    of any apecific transitional requirement in SSAP 12 (Revised), the new    
    accounting policy has been applied retrospectively. Comparative amounts   
    for 2003 have been restated accordingly. The effect of the change is a    
    decreased credit to the income taxes on the current period of HK$Nil (    
    2003: credit HK$13,000).                                                  
                                                                              
    3. BUSINESS AND GEOGRAPHICAL SEGMENTS                                     
    Turnover represents the net amounts received and receivable for goods     
    sold and therapy services performed, less returns and allowances,         
    by the Group to outside customers.                                        
                                                                              
    4. OTHER REVENUE                                                          
    Other Revenue for the six months ended 31 December 2004 mainly            
    represents bank interest received, exchange gain received, and sundary    
    income received.                                                          
    Whilst the other revenue for the previous corresponding period in 2003    
    represented the cash discount received from professional fee payment.     
                                                                              
    5. FINANCE COSTS                                                          
    The finance cost being the interest expenses payable to sharehoders'      
    loans from Profit Trick Holdings Limited and Rocket High Investments      
    Limited. The loan is repayable on demand and bear interest at Hong        
    Kong Dollar prime lending rate quoted by HSBC from time to time.          
                                                                              
    6. TAXATION                                                               
    No provision for Hong Kong Profits Tax has been made for the six          
    months ended 31 December 2004 and the corresponding period in             
    2003, as the Group had no assessable profits for the respective year.     
                                                                              
    Resulted from the adoption of the SSAP 12 (Revised), a deferred tax       
    liability was resulted, which led to a credit to income taxes in the year 
    of HK$NIL (2003: credit HK$ 13,000).                                      
                                                                              
    A deferred tax asset has not been recognised in the financial             
    statements in respect of tax losses available to offset future profits    
    as it is not certain that the tax losses will be utilised in the          
    foreseeable future.                                                       
                                                                              
    7. DIVIDEND                                                               
    The directors do not recommend the payment of a dividend for the period   
    ended 31 December 2004 (2003: Nil).                                       
                                                                              
    8. BASIC LOSS PER SHARE                                                   
    The calculation of the basic loss per share for the period ended 31       
    December 2004 is based on the loss attributable to the shareholders       
    of approximately HK$2.4 million (2003: the loss attributable to the       
    shareholders HK$2.2 million); and on the                                  
    weighted average number of ordinary shares of 606,800,000                 
    (2003: 606,800,000) ordinary shares of the Company in issue               
    during the period.                                                        
                                                                              
    No diluted loss per share for the six month ended 31 December 2004        
    was presented as the Company did not assume the exercise of               
    share option outstanding because the exercise prices of the Company's     
    share options were higher than the average market price for shares.