09:02     CHINA ADVANCE<08117> - Yearly Results Announcement (2)              

                                                                              
    The Group has not early adopted these new HKFRSs in the financial         
    statements for the year ended 31 December 2004.  The Group has already    
    commenced an assessment of the impact of these new HKFRSs but is not      
    yet in a position to state whether these new HKFRSs would have a          
    significant impact on its results of operations and financial position.   
                                                                              
    2. Taxation                                                               
                                                                              
    Hong Kong profits tax has not been provided as the Group did not          
    generate any assessable profits arising in Hong Kong during the           
    year (2003: Nil).                                                         
                                                                              
    During the year, taxation on overseas profits has been calculated         
    on the estimated assessable profit for the year at the rates of           
    taxation prevailing in the jurisdiction in which the Group operates.      
    No provision for overseas profits tax was made in last year as the        
    subsidiaries operating outside Hong Kong did not generate any             
    assessable profits in last year.                                          
                                                                              
    3. Dividend                                                               
                                                                              
    The Directors do not recommend the payment of any final dividend for      
    the year ended 31 December 2004 (year ended 31 December 2003: Nil).       
                                                                              
    4. Loss per share                                                         
                                                                              
    The calculation of basic loss per share for the year ended 31 December    
    2004 is based on the loss attributable to shareholders of HK$5,669,451    
    (2003: HK$9,714,300) and the weighted average number of 521,181,808       
    (2003: 440,000,000) ordinary shares in issue during the year.             
                                                                              
    No diluted loss per share is presented for both years as the share        
    options had an anti-dilutive effect on the basic loss per share.