09:12     SHANGHAI LAND<00067> - Results Announcement (4)                     

    INABILITY TO REACH A REVIEW CONCLUSION                                    
                                                                              
    Because of the significance of the possible effect of the limitations in  
    evidence available to us, we are unable to reach a review conclusion as to
    whether material modifications should be made to the interim financial    
    report for the six months ended 31 December 2004."                        
                                                                              
    (2) TURNOVER AND SEGMENTAL INFORMATION                                    
    Turnover represents income from operations from the hotel investment and  
    rental income from investment properties earned during the six months     
    ended 31 December 2004 and is analysed as follows:                        
                                                                              
    Business segments                                                         
                                                                              
    Business segment analysis is chosen as the primary reporting format as the
    Group's results during the current and prior interim periods were         
    principally affected by hotel investment, property investment and property
    development activities.                                                   
                                    Six months ended 31 December              
                    Hotel investment                Property investment       
                    2004            2003            2004            2003      
                    (Unaudited)     (Unaudited)     (Unaudited) (Unaudited)   
                    HK$'000         HK$'000         HK$'000         HK$'000   
    Turnover        32,825          25,921          1,381           944       
                    =======================================================   
    Segment                                                                   
    results         13,353          8,789           991             780       
                    =======================================================   
    Taxation        (618)           (132)           (327)           (257)     
                                                                              
                                    Six months ended 31 December              
                    Property development            Consolidated              
                    2004            2003            2004            2003      
                    (Unaudited)     (Unaudited)     (Unaudited) (Unaudited)   
                    HK$'000         HK$'000         HK$'000         HK$'000   
    Turnover        -               -               34,206          26,865    
                    =======================================================   
    Segment                                                                   
    results         -               -               14,344          9,569     
                    ===============================                           
    Interest income                                 10,478          6,266     
    Unallocated administrative expenses net of other                          
     revenue                                        (49,639)        (45,177)  
                                                    ------------------------- 
    Loss from operations                            (24,817)        (29,342)  
    Finance costs                                   (20,221)        (10,326)  
                                                    ------------------------- 
    Loss from ordinary activities before taxation   (45,038)        (39,668)  
    Taxation        -               -               (945)           (389)     
                                                    ------------------------- 
    Loss attributable to shareholders               (45,983)        (40,057)  
                                                    ========================= 
                                                                              
    No inter-segment sales and transfers were transacted during the current   
    and prior interim periods.                                                
                                                                              
    Geographical segments                                                     
    No geographical analysis is provided as the hotel investment, property    
    investment and property development activities during the current and     
    prior interim periods were all carried out in the PRC.                    
                                                                              
    (3) CONDENSED CONSOLIDATED INCOME STATEMENT                               
                                                                              
                                            Six months ended                  
                                            31 December                       
                                            2004            2003              
                                            (Unaudited)     (Unaudited)       
                                            HK$'000         HK$'000           
    Turnover                                34,206          26,865            
    Direct expenses                         (9,062)         (7,476)           
                                            --------------------------        
                                            25,144          19,389            
    Other revenue                           10,602          6,420             
    Net foreign exchange loss               (3,892)         (5,741)           
    Administrative expenses                 (56,671)        (49,410)          
                                            --------------------------        
    Loss from operations                    (24,817)        (29,342)          
    Finance costs                           (20,221)        (10,326)          
                                            --------------------------        
    Loss from ordinary activities before taxation                             
                                            (45,038)        (39,668)          
    Taxation                                (945)           (389)             
                                            ---------------------------       
    Loss attributable to shareholders                                         
                                            (45,983)        (40,057)          
                                            ==========================        
    Basic loss per share                    (1.51) cents    (1.31) cents      
                                            =============================     
    Dividend                                -               -                 
                                            =============================