16:28     CHINASOFT<08216> - Yearly Results Announcement (2)                  

                                                                              
       Beijing Chinasoft is subject to the income tax computed at the         
       rate of 7.5% for the three years ending 31st December 2005 and         
       at the rate of 15% on its taxable profit thereafter.                   
                                                                              
       No provision for Hong Kong Profits Tax has been made for the           
       year ended 31 December 2004 as the assessable profit of the            
       Group was wholly absorbed by tax losses brought forward.               
                                                                              
       Deferred tax have been provided for the year ended 31st December       
       2004 which was mainly related to the temporary differences             
       arising from development costs.                                        
                                                                              
       The Company had no significant unprovided deferred taxation at         
       31st December 2004 and 2003.                                           
                                                                              
    4. DIVIDEND                                                               
       On 26 April 2004, the Company declared final dividend amounting to     
       HK$6,400,000 (equivalent to RMB6,784,000) for the year ended 31        
       December 2003 to its shareholders.  The amount was paid to its         
       shareholders in 25 May 2004.                                           
                                                                              
       The Company has recommended the payment of a final dividend of         
       HK$0.01 per share for the year ended 31st December 2004.               
                                                                              
    5. EARNING PER SHARE                                                      
       The Calculation of the basic earnings per share for the year           
       ended 31st December 2004 was based on the net profit of                
       approximately RMB35,533,000 (2003:RMB24,117,000) divided by the        
       weighted average number of the share issued during the                 
       year ended 31st December 2004 of 661,267,123 shares                    
       (2003:565,041,096 shares) in issue during the year.                    
                                                                              
       Diluted earning per share for the year ended 31st December 2004        
       was based on the net profit of approximately RMB35,533,000             
      (2003:RMB24,117,000) divided by the weighted average number of          
       shares issued adjusted for the effect of dilutive potential            
      securities issuable under the Company's shares option scheme            
       during the year ended 31st December 2004 of 667,861,041 shares         
      (2003:565,500,379 shares)