13:36     DAHSING BANKING<02356> - Results Announcement (2)                   

    2.      Calculation of basic and diluted earnings per share               
                                                                              
            The Company was incorporated on 11th March 2004 with two fully    
    paid subscriber's shares. On 12th June 2004, the Company issued a further 
    809,899,998 shares to DSFH as consideration for the acquisition of the    
    latter's interest in various banking-related subsidiaries.  On 30th June  
    2004, the Company issued an additional 100,100,000 shares upon completion 
    of its initial public offering and listing on the Stock Exchange.  On 19th
    July 2004, the Company issued a further 9,830,827 shares pursuant to the  
    exercise of the over-allotment option by the international placing        
    underwriters.                                                             
                                                                              
    For the purpose of the calculation of basic earnings per share, on the    
    basis of the merger accounting method adopted, the Company is considered  
    as if it had the reported profit accrued to it, and had 809,900,000 shares
    in issue throughout the reporting years up to the date immediately before 
    listing, after which its total number of shares was increased to          
    919,830,827.                                                              
                                                                              
    Basic earnings per share is therefore calculated based on earnings of HK$ 
    1,119,665,000 (2003: HK$879,826,000) and the weighted average number of   
    864,955,785 (2003: 809,900,000) shares in issue during the year.          
                                                                              
            The calculation of diluted earnings per share is based on earnings
    of HK$1,119,665,000 and the weighted average number of 865,220,126 shares 
    in issue during the year after adjusting for the effect of all dilutive   
    potential ordinary shares.