08:58     SING LEE<08076> - Yearly Results Announcement (2)                   

                                                                              
    3. Taxation                                                               
                                              2004     2003                   
                                              RMB       RMB                   
                                             ('000)    ('000)                 
    PRC enterprise income tax(c)                -        -                    
                                              _____    _____                  
                                                -        -                    
                                              =====    =====                  
                                                                              
    (a) Overseas income tax                                                   
    The company is incorporate in Bermuda and is exempt from taxation in      
    Bermuda until 28 March 2016. The Company's subsidiary established in      
    BVI is incorporated under the International Business Companies Acts of    
    the BVI and, accordingly, is exempt from payment of BVI income taxes.     
                                                                              
    (b) Hong Kong profits tax                                                 
    No Hong Kong profits tax was provided as the Group had no assessable      
    profit arising in or derived from Hong Kong.                              
                                                                              
    (c) PRC enterprise income tax                                             
    As foreign investment enterprise that incorporated in the Advanced        
    Technology Industry Development Area in Hangzhou City and Zhuhai are      
    entitled to full exemption from income tax for two years with effect      
    from its first profitable year after offsetting prior year's losses       
    and a 50% reduction in income tax for the following three years.          
    Foreign investment enterprises are also exempted from income tax in       
    years with financial loss.                                                
                                                                              
    4. Dividend                                                               
    Subsequent to 31 December 2004, the directors of the company do not       
    recommend the payment of a final dividend.