08:59     SHANGHAI FUDAN<08102> - Yearly Results Announcement (2)             

                                                                              
    3. TAX                                                                    
                                                                              
                                        For the year ended                    
                                           31 December                        
                                          2004        2003                    
                                        RMB'000     RMB'000                   
                                                                              
    Group:                                                                    
     Current-Hong Kong                        57         72                   
                                          ======     ======                   
                                                                              
    Under the Income Tax Law of the PRC, the Company is subject to income     
    tax at a rate of 33%.  Pursuant to an approval document dated 15 January  
    2004 issued by the local municipal tax bureau, the Company was subject    
    to a preferential income tax rate of 15% from 1 January 2004 to 31        
    December 2004.  For the financial year ended 31 December 2004 the         
    Company had no assessable income and no provision for income tax has      
    been made accordingly.                                                    
                                                                              
    Hong Kong profits tax has been provided at the rate of 17.5% (2003: 17.5%)
    on the estimated assessable profits arising in Hong Kong during the year. 
                                                                              
    The Group has tax losses, primarily incurred by the Company, of           
    RMB5,171,000 (2003: RMB7,965,000) that are available for offsetting       
    against future taxable profits.                                           
                                                                              
    Deferred tax assets have not been recognised in respect of these losses   
    as it is uncertain as to whether the Company will be able to fully utilise
    the unused tax losses which can only be carried forward for a maximum     
    period of five years and after considering tax incentives arising from    
    the additional deductible allowance for qualified research and development
    expense to be incurred by the Company.                                    
                                                                              
    4. EARNINGS/(LOSS) PER SHARE                                              
                                                                              
    The calculation of basic earnings/(loss) per share is based on the        
    following data:                                                           
                                                                              
                                          For the year ended                  
                                             31 December                      
                                          2004           2003                 
                                                                              
    EARNINGS/(LOSS)                                                           
    Net profit/(loss) attributable                                            
      to shareholders               RMB7,239,000    RMB(6,550,000)            
                                   ==============   ==============            
                                                                              
    SHARES                                                                    
    Weighted average number of                                                
      ordinary shares in issue      624,354,000      624,354,000              
                                    ===========      ===========              
                                                                              
    Diluted earnings per share for the year ended 31 December 2004 and the    
    comparative diluted loss per share for the year ended 31 December 2003    
    have not been presented as no diluting events existed during these years.