09:10     NANDASOFT<08045> - Yearly Results Announcement (2)                  

                                                                              
    2.  Turnover                                                              
                                                                              
    Turnover, which is stated net of valued added tax and other sales tax     
    and returns, represents amounts invoiced to customers for sale of         
    computer software products and hardware products and equipment, and,      
    in respect of provision of IT consulting services, the value of           
    work done during the year.                                                
                                                                              
    3.  Taxation                                                              
                                                                              
    Pursuant to an approval document issued by the Science and Technology     
    Committee of Nanjiang Municipality, the Company has been designed as a    
    new and high technology entity and is subject to a 50% tax concession     
    granted by relevant tax authority and entitled to a 50% reduction in      
    income tax rate.  Therefore a concessionary tax rate of 16.5% is used.    
                                                                              
    The subsidiaries of the Company are subject to income tax rate ranging    
    from 0% to 33%.                                                           
                                                                              
    4.  Earnings Per Share                                                    
                                                                              
    The calcuation of basic earnings per share is based on the profit         
    attributable to shareholders of approximately RMB12,039,000               
    (2003: RMB11,742,000) and on 934,000,000 (2003: 934,000,000) shares in    
    issue during the year.                                                    
                                                                              
    Diluted earnings per share is not presented for two years ended           
    31 December 2004 as there were no potential dilutive securities in        
    existence during the relevant periods.