13:17     TENCENT<00700> - Results Announcement (2)                           

    The diluted earnings per share is calculated by adjusting the weighted    
    average number of ordinary shares outstanding by the assumption of the    
    conversion of all potential dilutive ordinary shares.  Share options      
    granted are the potential dilutive ordinary shares of the Company.  A     
    calculation is done to determine the number of shares that could have been
    acquired at fair value (determined as to be the average market price of   
    the Company's shares) based on the monetary value of the subscription     
    rights attached to the outstanding share options.  The number of shares   
    calculated is compared against the number of shares that would have been  
    issued assuming the exercise of the share options. The difference is added
    to the denominator as an issue of ordinary shares for no consideration.   
    No adjustment is made to earnings (numerator).                            
                                                                              
    There were no potential dilutive instruments for 2003 as the Pre-IPO share
    options had not met the pre-condition for their exercisability before the 
    IPO. Accordingly, the diluted earnings per share for 2003 is equal to the 
    basic earnings per share.                                                 
                                                                              
                                                 2004            2003         
                                              RMB'000         RMB'000         
    Net profit                                446,702         322,196         
                                            ----------------------------      
    Weighted average number of ordinary shares in issue (thousands) (note)    
                                                 1,523,376       1,321,151    
    Adjustments for - share options (thousands)                               
                                               30,652               -         
                                            ----------------------------      
    Weighted average number of ordinary shares for diluted earnings per share 
    (thousands) (note)                    1,554,028       1,321,151           
                                                                              
    Diluted earnings per share (RMB per share) (note)                         
                                                0.287           0.244         
                                                                              
    Note:   All per share information has been adjusted retroactively as if   
    the aggregate effect of the two share splits undertaken in 2003 and 2004  
    had taken place at the beginning of 2003.