08:54     STONE HOLDINGS<00409> - Results Announcement (1)                    

    Stone Group Holdings Limited announced on 21/03/2005:                     
    (stock code: 00409 )                                                      
    Year end date: 31/03/2005                                                 
    Currency: HKD                                                             
    Auditors' Report: N/A                                                     
    Interim report reviewed by: Both Audit Committee and Auditors             
                                                                              
                                                            (Audited   )      
                                         (Unaudited )       Last              
                                         Current            Corresponding     
                                         Period             Period            
                                         from 01/01/2004    from 01/01/2003   
                                         to 31/12/2004      to 31/12/2003     
                                   Note  ('000      )       ('000      )      
    Turnover                           : 1,700,671          1,015,277         
    Profit/(Loss) from Operations      : 223,410            1,727,043         
    Finance cost                       : (12,497)           (4,577)           
    Share of Profit/(Loss) of                                                 
      Associates                       : (12,100)           (15,182)          
    Share of Profit/(Loss) of                                                 
      Jointly Controlled Entities      : N/A                N/A               
    Profit/(Loss) after Tax & MI       : 130,737            801,186           
    % Change over Last Period          : -83.68    %                          
    EPS/(LPS)-Basic (in dollars)       : 0.0909             0.6666            
             -Diluted (in dollars)     : 0.0547             0.5990            
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : 130,737            801,186           
    2nd Interim Dividend               : NIL                NIL               
      per Share                                                               
    (Specify if with other             : N/A                N/A               
      options)                                                                
                                                                              
    B/C Dates for                                                             
      2nd Interim Dividend             : N/A                                  
    Payable Date                       : N/A                                  
    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.      Changes in accounting policy                                      
    Hong Kong Financial Reporting Standard 3 "Business combinations" ("HKFRS  
    3"), Hong Kong Accounting Standard 36 "Impairment of assets" ("HKAS 36")  
    and Hong Kong Accounting Standard 38 "Intangible assets" ("HKAS 38")      
    issued by the HKICPA have been applied before their effective dates in the
    preparation of the interim financial report.                              
                                                                              
    (a)     Business combinations                                             
    In prior years, positive goodwill arising from business combinations was  
    amortised to the consolidated income statement on a straight line basis   
    over its estimated useful life; negative goodwill, other than those       
    relating to an expectation of future losses and expenses that were        
    identified in the plan of acquisition, was recognised in the consolidated 
    income statement over the weighted average useful life of the acquired    
    non-monetary assets that are depreciable or amortisable.                  
                                                                              
    The Group has changed its accounting policy for business combinations by  
    early adopting the new HKFRS 3 "Business combinations" to goodwill        
    existing at or acquired after, and to business combinations occurring from
    1 January 2004, as permitted under the transitional provisions of HKFRS 3.
    Under HKFRS 3:                                                            
                                                                              
    (i) Goodwill acquired in a business combination:                          
    -       is measured as the residual cost of the business combination after
    recognising the acquiree's identifiable assets, liabilities and contingent
    liabilities; and                                                          
    -       shall not be amortised and instead shall be tested for impairment 
    annually or more frequently if events or changes in circumstances indicate
    that it might be impaired, in accordance with HKAS 36 "Impairment of      
    assets".                                                                  
                                                                              
    (ii) Excess of acquirer's interest in the net fair value of acquiree's    
    identifiable assets, liabilities and contingent liabilities over cost     
    shall be recognised immediately in profit or loss.                        
                                                                              
    In respect of previously recognised positive goodwill, amortisation has   
    been discontinued, the carrying amount of the related accumulated         
    amortisation at 1 January 2004 has been eliminated with a corresponding   
    decrease in goodwill, and the goodwill shall be tested for impairment in  
    accordance with HKAS 36.  Previously recognised negative goodwill has been
    derecognised at 1 January 2004.                                           
                                                                              
    As a result of the adoption of this accounting policy, the Group's profit 
    for the period and the net assets as at the period end have been increased
    by $47,903,000.