09:07     A-S CHINA<08262> - Yearly Results Announcement (2)                  

                                                                              
    3.      TURNOVER                                                          
                                                                              
    Turnover represents the net invoiced value of goods sold, after           
    allowances for returns and trade discounts and business/sales tax         
    where applicable. All significant intra-group transactions have           
    been eliminated on consolidation.                                         
                                                                              
    4.      TAX                                                               
                                                                              
    Currently, no taxes are imposed by the Cayman Islands on the income       
    or capital profits of the Company.                                        
                                                                              
    Hong Kong profits tax has not been provided during the current year       
    and prior years as the Group had no assessable profits attributable to    
    its operations in Hong Kong.                                              
                                                                              
    The subsidiaries of the Company in the PRC (the "PRC subsidiaries")       
    were granted or have a right to apply for exemption from corporate        
    income taxes ("CIT") for the two years starting from the first year       
    in which they earn assessable profits, and are entitled to a 50%          
    exemption from CIT for the following three years (the "50%                
    exemption").                                                              
                                                                              
    For a PRC subsidiary, A-S (Jiangmen) Fittings Co., Ltd ("A-S Jiangmen     
    Fittings) is subject to a CIT rate of 24% as it located in a coastal      
    economic development region and is qualified to the 50% exemption from    
    CIT as it qualifies as a  "technologically advanced enterprise" pursuant  
    to the PRC taz regulations. As of 31 December 2004, A-S Jiangmen          
    Fittings has not obtained the written approvals from the local tax        
     bureau for the current year CIT exemption.                               
                                                                              
    A PRC subsidiary, A-S (Shanghai) Pottery Co., Ltd, is subject to a CIT    
    rate of 24% as it is located in Shanghai region and is qualified to the   
    50% exemption from CIT as it is in its third profitable year.             
                                                                              
    A PRC subsidiary, A-S (Tianjin) Pottery Co., Ltd, is subject to a CIT     
    rate of 15% as it is located in the Tianjin economic & development zone   
    and is qualified to the 50% exemption from CIT as it is in its fourth     
    profitable year.                                                          
                                                                              
    Another PRC subsidiaries, Hua Mei Sanitary Ware Co., Ltd ("Hua Mei")      
    is subject to a CIT rate of 24% and has obtained a written approval       
    for a preferential tax rate of 15% for the year ended 31 December 2004    
    from the local tax bureau as it qualifies as a "high and new technology   
    enterprise".                                                              
                                                                              
    No provision for deferred tax has been provided as the taxable and        
    deductible temporary differences are immaterial for the current and       
    prior years.                                                              
                                                                              
    5.  Earnings per shares                                                   
                                                                              
    The calculation of basic earnings per share is based on the net profit    
    attributable to shareholders for the year of US$8,146,000, and weighted   
    averaged numnber of issued ordinary shares of 151,034,000 during the year.
                                                                              
    A diluted earnings per share amount for the year ended 31 December 2004   
    and 2003 has not been disclosed as no diluting events existed during the  
    current year or prior year.