08:56     401 HOLDINGS<00401> - Results Announcement (5)                      

    5.      OPERATING LOSS                                                    
                                                                              
    The operating loss is stated after crediting and charging the following   
    and other charges :-                                                      
                                                                              
                                                    2004            2003      
                                                    HK$'000         HK$'000   
    Crediting                                                                 
                                                                              
    Gross rental income from properties             1,195           2,705     
    Less : Outgoings                                767             810       
    Net rental income from properties               428             1,895     
    Net exchange gain                               25              -         
                                                                              
    Charging                                                                  
                                                                              
    Auditors' remuneration                                                    
     - current year                                 318             276       
     - overprovision in prior year                  -               (5)       
    Net exchange loss                               -               29        
    Operating lease rentals in respect of land                                
      and buildings                                 773             1,422     
    Operating lease rentals in respect of plant                               
      and machinery                                 -               35        
    Staff costs including directors' emoluments                               
    - salaries, bonus, allowances and benefits                                
         in kind                                    6,782           10,416    
    - payment in lieu of notice and severance                                 
        payment                                     -               848       
    - compensation for loss of office as                                      
         directors of the Company's subsidiaries                              
         - contractual payment                      -               1,757     
    - provision for annual leave                    -               37        
    - provision for long service payment            861             813       
    - retirement benefits scheme contributions      132             194       
                                                    ==========      ==========
                                                                              
    6.      FINANCE COSTS                                                     
                                                                              
                                                    2004    2003              
                                                    HK$'000 HK$'000           
                                                                              
    Interest on bank loans and overdrafts           595     582               
    Interest on other loans                         5,632   598               
    Interest on convertible debts                   2,861   1,692             
    Premium on redemption of preference shares      -       11,342            
                                                    ------- --------          
                                                    9,088   14,214            
                                                    ======= ========          
                                                                              
    7.      LOSS PER SHARE                                                    
                                                                              
    The calculation of basic loss per share is based on the net loss          
    attributable to shareholders for the year ended 31 March 2004 of HK$33,   
    265,000 (2003: HK$57,448,000), and the weighted average number of         
    414,536,489 ordinary shares (2003: 342,598,798) in issue during the year. 
                                                                              
    Diluted loss per share for the year ended 31 March 2003 and 2004 has not  
    been presented as the effect of any dilution is anti-dilutive.            
                                                                              
    For more details, please refer to the press announcement today.