09:01     KANTONE HOLDING<01059> - Results Announcement                       

    Kantone Holdings Limited announced on 15/03/2005:                         
    (stock code: 01059 )                                                      
    Year end date: 30/06/2005                                                 
    Currency: HKD                                                             
    Auditors' Report: N/A                                                     
    Interim report reviewed by: Audit Committee                               
                                                                              
                                                            (Unaudited )      
                                         (Unaudited )       Last              
                                         Current            Corresponding     
                                         Period             Period            
                                         from 01/07/2004    from 01/07/2003   
                                         to 31/12/2004      to 31/12/2003     
                                   Note  ('000      )       ('000      )      
    Turnover                           : 530,063            463,008           
    Profit/(Loss) from Operations      : 131,140            61,043            
    Finance cost                       : (3,531)            (5,672)           
    Share of Profit/(Loss) of                                                 
      Associates                       : N/A                N/A               
    Share of Profit/(Loss) of                                                 
      Jointly Controlled Entities      : N/A                N/A               
    Profit/(Loss) after Tax & MI       : 127,270            55,276            
    % Change over Last Period          : +130      %                          
    EPS/(LPS)-Basic (in dollars)    2  : 0.0551             0.0249            
             -Diluted (in dollars)  2  : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : 127,270            55,276            
    Interim Dividend                3  : 1.0 cent           0.6 cent          
      per Share                                                               
    (Specify if with other          3  : in scrip form with in scrip form with
      options)                           cash option        cash option       
                                                                              
    B/C Dates for                                                             
      Interim Dividend                 : 31/03/2005         to 07/04/2005 bdi.
    Payable Date                       : 08/06/2005                           
    B/C Dates for (-)                                                         
      General Meeting                  : N/A                                  
    Other Distribution for             : N/A                                  
      Current Period                                                          
                                                                              
    B/C Dates for Other                                                       
      Distribution                     : N/A                                  
                                                                              
    Remarks:                                                                  
                                                                              
    1. BASIS OF PREPARATION                                                   
                                                                              
    The unaudited condensed financial statements have been prepared under the 
    historical cost convention and in accordance with the Statement of        
    Standard Accounting Practice No. 25 "Interim Financial Reporting" issued  
    by the Hong Kong Institute of Certified Public Accountants.               
                                                                              
    The accounting policies adopted are consistent with those in the          
    preparation of the audited financial statements of the Group for the year 
    ended 30 June 2004.                                                       
                                                                              
    2. EARNINGS PER SHARE                                                     
                                                                              
    The calculation of the basic earnings per share for the six months ended  
    31 December 2004 is based on the net profit for the period of             
    HK$127,270,000 (2003: HK$55,276,000) and on the weighted average of       
    2,308,341,469 (2003: 2,220,961,752) shares in issue throughout the period.
                                                                              
    No diluted earnings per share has been presented as there were not in     
    issue any securities with potential dilutive effect in both periods.      
                                                                              
    3.      INTERIM DIVIDEND AND SCRIP DIVIDEND SCHEME                        
                                                                              
    The directors have resolved to pay an interim dividend of HK1.0 cents per 
    share for the six months ended 31 December 2004 (2003: HK0.6 cents per    
    share) to shareholders whose names appear on the register of members of   
    the Company on 7 April 2005. Such interim dividend will be satisfied by   
    allotment of new shares of the Company, credited as fully paid, by way of 
    scrip dividend, with an option to the shareholders to receive such        
    dividend (or part thereof) in cash in lieu of such allotment (the "Scrip  
    Dividend Scheme").                                                        
                                                                              
    The Scrip Dividend Scheme is subject to the granting by the Listing       
    Committee of The Stock Exchange of Hong Kong Limited of a listing of and  
    permission to deal in the shares to be issued pursuant thereto. A circular
    setting out the details of the Scrip Dividend Scheme together with the    
    form of election will be sent to the shareholders of the Company as soon  
    as practicable.                                                           
                                                                              
    The relevant certificates for the new shares and dividend warrants will be
    dispatched to those entitled on or before 8 June 2005.                    
                                                                              
    For more details, please refer to the press announcement today.