08:49     V.S. INT'L<01002> - Results Announcement (2)                        

    (b)     The Group established certain associates during the six months    
    ended 31 January 2005 and the following accounting policy in respect of   
    the Group's interest in associates has been adopted.                      
                                                                              
    An associate is an entity in which the Group has significant influence,   
    but not control or joint control, over its management, including          
    participation in the financial and operating policy decisions.            
                                                                              
    An investment in an associate is accounted for in the consolidated        
    financial statements under the equity method and is initially recorded at 
    cost and adjusted thereafter for the post acquisition change in the       
    Group's share of the associate's net assets, unless it is acquired and    
    held exclusively with a view to subsequent disposal in the near future or 
    operates under severe long-term restrictions that significantly impair its
    ability to transfer funds to the investor, in which case it is stated at  
    fair value with changes in fair value recognised in the consolidated      
    income statement as they arise. The consolidated income statement reflects
    the Group's share of the post acquisition results of the associate for the
    period, including any amortisation of positive or negative goodwill       
    charged or credited during the period. When the Group's share of losses   
    exceeds the carrying amount of the associate, the carrying amount is      
    reduced to nil and recognition of further losses is discontinued except to
    the extent that the Group has incurred obligations in respect of the      
    associate.                                                                
                                                                              
    Unrealised profits and losses resulting from transactions between the     
    Group and an associate are eliminated to the extent of the Group's        
    interest in the associate, except where unrealised losses provide evidence
    of an impairment of the asset transferred, in which case they are         
    recognised immediately in the income statement.                           
                                                                              
    Note 2: Analysis of Turnover and Profit from Continuing Operations        
                                                                              
    Segment information is presented in respect of the Group's business and   
    geographical segments.  Business segment information is chosen as the     
    primary reporting format because this is more relevant to the Group in    
    making operating and financial decisions.                                 
                                                                              
    The Group comprises the following main business segments:-                
                                                                              
    Plastic injection and moulding  :  manufacture and sales of plastic       
    moulded products and parts                                                
                                                                              
    Assembling of electronic products       :  assembling and sales of        
    electronic products, including processing fee generated from assembling of
    electronic products                                                       
                                                                              
    Mould design and fabrication    :  manufacture and sales of plastic       
    injection moulds                                                          
                                                                              
                            Plastic injection       Assembling of             
                            and moulding            electronic products       
                            Six months ended        Six months ended          
                            31 January              31 January                
                            2005    2004            2005    2004              
                            HK$'000 HK$'000         HK$'000 HK$'000           
    Turnover from                                                             
         external customers 489,713 364,170         89,081  131,926           
                            ======= ========        ======  =======           
                                                                              
    Segment results         58,290  45,647         7,416     7,128            
                                                                              
                            Mould design                                      
                            and fabrication         Consolidated              
                            Six months ended        Six months ended          
                            31 January              31 January                
                            2005    2004            2005    2004              
                            HK$'000 HK$'000         HK$'000 HK$'000           
    Turnover from                                                             
         external customers 40,927  23,186          619,721 519,282           
                            ======= =======         ======= ========          
                                                                              
    Segment results         10,522  2,815           76,228  55,590            
    Unallocated operating                                                     
    income and expenses                             (36,818)(30,207)          
                                                    ------- --------          
    Profit from operations                          39,410  25,383            
    Finance costs                                   (24,554)(20,014)          
    Non-operating expense                           (318)   (1,175)           
    Share of losses                                                           
    of associates                                   (403)   -                 
    Income tax                                      (2,360) (2,139)           
    Minority interests                              (808)   (97)              
                                                    ------- --------          
    Profit attributable to                                                    
         shareholders                               10,967  1,958             
                                                    ======= ========