09:07     EVERPRIDE PHAR<08019> - Yearly Results Announcement (3)             

                                                                              
    (5)  Reserves                                                             
    Movements in the reserves of the Group were as follows:-                  
                                                                              
                                                      (Accumulated            
                                                          losses)/            
                        General    Capital    Exchange    Retained            
                        reserve  reserve(b)    reserve     profits   Total    
                        fund (a)                                              
                        RMB'000    RMB'000    RMB'000     RMB'000  RMB'000    
                                                                              
    At 1                                                                      
     January                                                                  
     2003                   9,025     7,195      (97)     42,968   59,091     
    Loss                                                                      
     attributable                                                             
     to                                                                       
     share-                                                                   
     holders                   -         -       -     (117,114) (117,114)    
                         --------  -------   -------   --------- ---------    
    At 31                                                                     
     December 2003                                                            
     and at 1 January                                                         
     2004                   9,025    7,195       (97)   (74,146) (58,023)     
    Profit                                                                    
     attributable                                                             
     to share-                                                                
     holders                 -         -         -           539     539      
                         --------  -------     -------  -------- --------     
                                                                              
    At 31                                                                     
     December                                                                 
     2004                 9,025     7,195       (97)    (73,607)  (57,484)    
                       ========  ========    =======    ========  ========    
                                                                              
    Included in the figure of accumulated losses is an amount of              
    approximately RMB200,000 (2003: RMB200,000), being the accumulated        
    losses attributable to the associate.                                     
                                                                              
    a. General reserve fund                                                   
                                                                              
    The general reserve fund as at 31 December 2004 can only be used,         
    upon approval by the relevant authority, to offset prior years'           
    losses or to increase capital.                                            
                                                                              
    As stipulated by the rules and regulations in the PRC, foreign            
    investment enterprises are required to appropriate part of their          
    after-tax profit (after offsetting prior years' losses) to                
    general reserve fund. A wholly foreign owned enterprise of                
    the Company established in the PRC is required to appropriate             
    10% of its after-tax profit (after offsetting prior years' losses)        
    to a general reserve fund until the balance of the fund reaches 50%       
    of its registered capital and thereafter any further appropriation        
    is optional and is determinable by its board of directors.                
                                                                              
    As at 31 December 2004, the general reserve fund has reached 50%          
    of its registered capital and no further appropriation is                 
    necessary unless there is an increase in the amount of its                
    registered capital.                                                       
                                                                              
    b.  Capital reserve                                                       
                                                                              
    Capital reserve represents the difference between the nominal             
    value of the ordinary shares issued by the Company and the                
    aggregate of the share capital and share premium of a subsidiary          
    acquired through an exchange of shares.                                   
                                                                              
    (6) Dividend                                                              
                                                                              
    The Directors do not recommend the payment of a final                     
    dividend for the year (2003: Nil).