13:34     NEW WORLD DEV<00017> - Results Announcement (2)                     

                                                                              
    The key impacts to the Group are as follows:                              
     - The Group ceased amortisation of goodwill/negative goodwill from 1 July
    2004;                                                                     
     - Accumulated amortisation as at 30 June 2004 has been eliminated with a 
    corresponding decrease in the cost of goodwill;                           
     - Negative goodwill has been derecognised and credited to the equity;    
     - Goodwill is tested annually for impairment, as well as when there are  
    indications of impairment; and                                            
                                                                              
     - For goodwill which arose before 1 January 2001 which has been taken    
    into reserves, it would not be recognised in the    profit and loss       
    account when the Group disposes of all or part of the business to which   
    that goodwill relates or when a cash-generating unit to which the goodwill
    relates becomes impaired.                                                 
                                                                              
    All changes in the accounting policies have been made in accordance with  
    the transitional provisions in the respective standards, which was applied
    prospectively.                                                            
                                                                              
    The early adoption of these accounting standards would not have a         
    significant  impact on the  interim accounts.                             
                                                                              
    2        Turnover                                                         
                                            Six months ended 31 December      
                                                                              
                                            2004            2003              
                                            HK$M            HK$M              
                                                                              
            Property investment and development                               
                                            2,367.5          1,708.3          
            Service                         5,032.6          6,386.1          
            Infrastructure                  113.9              244.7          
            Telecommunications              1,364.8          1,360.5          
            Department stores               1,919.8          1,571.5          
            Others                          1,233.8            828.3          
                                            --------------------------        
                                            12,032.4        12,099.4          
            Inter-segement sales                                              
              Property investment and development                             
                                               (57.3)          (53.3)         
              Service                         (414.7)         (661.2)         
              Telecommunications               (40.7)           (3.8)         
                                            --------------------------        
                                            11,519.7        11,381.1          
                                            ==========================        
    3       Other income/(charge)                                             
                                                                              
            Amortisation of  goodwill              -            (4.9)         
            Dilution loss and loss on disposal and liquidation of subsidiaries
                                               (80.5)           (6.1)         
            Impairment loss on fixed and intangible assets                    
                                               (68.1)              -          
            Loss on disposal of investments     (2.1)          (64.2)         
            Profit on disposal of investments  367.7            18.8          
            Provision for investments, doubtful debts and advances to joint   
            ventures                          (139.6)           (7.2)         
            Share of results of other investments                             
                                                   -           (10.3)         
            Write down of stocks to net realisable value                      
                                               (10.3)          (41.5)         
            Write back of provision for diminution in value of investments and
            properties held for sale           224.6            66.10         
                                            ----------------------------      
                                               291.7           (49.3)         
                                            ============================      
    4       Earnings per share                                                
            The calculation of basic earnings per share is                    
            based on profit of HK$1,128.9  million (2003: 236.4               
            million ) and the number of shares of 3,457.4 million             
            (2003: weighted average number of shares of 2,288.8 million)      
            in issue during the period.