08:58     WEIGAO GROUP<08199> - Yearly Results Announcement (2)               

                                                                              
    2.   Turnover                                                             
                                                                              
    Turnover represents the amounts received and receivable for goods sold    
    by the Group to outside customers, less sales tax and sales returns       
    during the year.                                                          
                                                                              
    3.   Taxation                                                             
                                                                              
    The Company is recognised as a "High and New Technology Enterprise".      
    In accordance with the "Notice of the State Tax Bureau of the Ministry    
    of Finance Regarding Certain Preferential Treatment Policies on           
    Enterprise Income Tax", the Company was subject to income tax at a        
    tax rate of 15% (2003: 15%). Started from 1st July, 2004, the Company     
    is entitled to an exemption from PRC income tax for the two years         
    starting from their first profit-marking year, followed by a 50% tax      
    relief for the next three years. The tax charge provided has been made    
    after taking these tax incentives into account.                           
                                                                              
    In accordance with the "Notice of Recognition of Jierui Subsidiary as     
    a Social Welfare Entity" issued by the Civil Administration Bureau of     
    the Shandong Province, Jierui Subsidiary is recognised as a "Social       
    Welfare Entity" and is exempted from income tax.                          
                                                                              
    4.   Dividend                                                             
                                                                              
    The final dividend of RMB1.3 cents (2003: nil) per share has been         
    proposed by the directors and is subject to approval by the               
    shareholders in the forthcoming annual general meeting.                   
                                                                              
    5.   Earnings per Share                                                   
                                                                              
    The calculation of the basic earnings per share for the year is           
    based on the net profit for the year of RMB65,888,000                     
    (2003: RMB50,454,000) and on the weighted average of 823,195,000          
    (2003: 600,000,000) shares in issue during the year.                      
                                                                              
    No potential shares were outstanding either in the current or             
    prior years. Accordingly, no amount is presented for diluted              
    earnings per share.