09:02     LANG CHAO INTL<08141> - Yearly Results Announcement (2)             

                                                                              
    The Group, resulting from the Reorganisation, is regarded as a            
    continuing entity.  Accordingly, the consolidated financial               
    statements of the Group for the year ended 31 December 2003 have          
    been prepared using the principle of merger accounting in                 
    accordinance with Statement of Standard Accounting Practice 27            
    "Accounting for Group Reconstructions".                                   
                                                                              
    3. PRINCIPAL ACCOUNTING POLICIES                                          
                                                                              
    The financial statements have been prepared under the historical          
    cost convention and in accordance with accounting principles              
    generally accepted in Hong Kong.                                          
                                                                              
    4. EARNINGS PER SHARE                                                     
                                                                              
    The calculation of the basic and diluted earnings per share is            
    based on the following data:                                              
                                                                              
                                                 2004         2003            
                                               HK$'000      HK$'000           
    Earnings                                                                  
    Earnings for the purposes of                                              
      basic and diluted earnings                                              
      per share                                 22,842        18,369          
                                                ======        ======          
                                                                              
    Number of shares                                                          
    Weighted average number                                                   
      of ordinary shares for                                                  
      the purpose of basic                                                    
      earnings per share                        368,493      300,000          
    Effect of dilutive                                                        
      share options                                  52          -            
                                                -------      -------          
    Weighted average number                                                   
      of ordinary shares for                                                  
      the purposes of diluted                                                 
      earnings per share                        368,545      300,000          
                                                =======      =======          
                                                                              
    The computation of the basic earnings per share for the year ended        
    31 December 2003 was based on 100,000,000 shares deemed to be in          
    issued throughout the year on the assumption that the corporate           
    reorganisation had been effective on 1 January 2003 and                   
    200,000,000 capitalisation shares issued approved on 8 April 2004.        
                                                                              
    The computation of diluted earnings per share for the year ended          
    31 December 2004 does not assume the exercise of the Company's            
    outstanding share options under the Company's pre-initial                 
    public offering share option scheme as the exercise price of              
    those options is higher than the average market price for                 
    shares for the year.