09:07 EVERPRIDE PHAR<08019> - Yearly Results Announcement (2) Turnover represents the sales value of goods supplied to customers (which excludes value added tax) and is stated after deduction of all goods returns and trade discounts. An analysis of turnover and revenue in the consolidated income statement is as follows:- 2004 2003 RMB'OOO RMB'OOO Turnover Sales of goods 44,160 26,645 Other revenue and net income Sample income 199 588 Interest income 96 12 Write-back of provision for obsolete inventories 5,604 - Write-back of provision for bad and doubtful debts 7,845 - Profit on disposal of property, plant and equipment 221 - Others - 39 -------- ------- 13,965 639 -------- ------- 58,125 27,284 ======== ======= (3) Taxation Taxation in the consolidated income statement represents:- 2004 2003 RMB'OOO RMB'OOO Current taxation - PRC enterprise income tax (note c) - - Share of taxation of an associate - - -------- ------- - - ======== ======= Notes:- a. The Company is exempted from taxation in the Cayman Islands until 2020. Its subsidiaries established in the British Virgin Islands are incorporated under the International Business Companies Acts of the British Virgin Islands and, accordingly, are exempted from payment of the British Virgin Islands income taxes. b. No provision for Hong Kong profits tax has been made as the Group had no estimated assessable profit in Hong Kong during the year. c. Shanxi Everpride Pharmaceutical Co., Ltd. ("Shanxi Everpride"), a wholly-owned subsidiary established and operating in Shanxi Province, the PRC, is subject to PRC enterprise income tax at a rate of 33% (state income tax: 30% and local income tax: 3%). However, it is exempted from state income tax and local income tax for two years starting from the first year of profitable operations after offsetting prior years' losses, followed by a 50% reduction on the state income tax for the next three years. The tax exemption period for Shanxi Everpride expired on 31 December 2000 and it is subject to PRC enterprise income tax at an effective rate of 18% from 1 January 2001 to 31 December 2003. No provision for PRC enterprise income tax has been made as Shanxi Everpride had prior years' losses brought forward to offset the estimated assessable profit in PRC during the year. (4) Earnings/(loss) per share The calculation of basic earnings/(loss) per share is based on the profit attributable to shareholders of approximately RMB539,000 (2003: loss of approximately RMB 117,114,000) and on the weighted average number of 600,000,000 (2003: 600,000,000) ordinary shares in issue during the year. Diluted earnings/(loss) per share for the years ended 31 December 2004 and 2003 were not presented because there were no dilutive potential ordinary shares in existence during both years.