09:05     HUTCHISON<00013> - Results Announcement (2)                         

                                                                              
                                                                              
    In 2004, prepaid customer acquisition costs ("CAC") of HK$8,423 million ( 
    2003 - HK$917 million) previously capitalised have been expensed and      
    capitalised postpaid CAC are now amortised over 12 months, previously 36  
    months, resulting in increased amortisation expense in 2004 of HK$1,472   
    million (2003 - HK$612 million).  In 2004, the increase in valuation of   
    investment properties of HK$5,302 million (2003 - decrease of HK$1,705    
    million) has been included in the calculation of profit, having previously
    been credited directly to reserves. At 1 January 2004, goodwill totalling 
    HK$11,787 million deducted from reserves in previous years is not to be   
    recognised in the profit or loss calculation on disposal of the related   
    business and will remain as a reduction of reserves.  In 2004, the Group  
    sold 29.84% of Hutchison Telecommunications International and goodwill in 
    reserves related to the disposal of this business of HK$2,011 million was 
    not included in the calculation of the profit.  The net effect after      
    taxation and minority interests of the adoption of these standards and    
    their current interpretations, which align HKFRSs with IFRS, increased    
    profit attributable to shareholders for the year ended 31 December 2004 by
    HK$1,702 million and reduced profit attributable to the shareholders for  
    the year ended 31 December 2003 by HK$2,701 million. The opening          
    shareholders' funds as at 1 January 2004 and 2003 have been reduced by    
    HK$3,498 million and HK$2,579 million respectively.                       
                                                                              
                                                                              
    The effect of these changes on the profit attributable to shareholders,   
    the various balance sheet items and opening shareholders' funds is        
    summarised below:                                                         
                                                                              
                                                    SSAP                      
                                                    Interpretation  Total     
    HKFRS 3         HKAS 38         HKAS 40         22              2004      
    HK$millions     HK$millions     HK$millions     HK$millions    HK$millions
                                                                              
    Increase (decrease) in profit attributable to shareholders                
    2,757            (5,196)         4,336            (195)           1,702   
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    Increase in goodwill                                                      
      509                 -              -               -              509   
    Increase in fixed assets                                                  
        -                 -            256               -              256   
    (Decrease) in telecommunications customer acquisition costs               
        -            (11,337)            -               -          (11,337)  
    Increase in deferred tax assets                                           
        -              3,109             -               -            3,109   
    Increase (decrease) in associated companies                               
      177                (87)            -               -               90   
    Increase (decrease) in interests in joint ventures                        
       13                  -            33          (1,797)          (1,751)  
    Decrease (increase) in deferred taxation liabilities                      
        -                  -        (2,784)            314           (2,470)  
    Decrease (increase) in minority interests                                 
      (52)             2,208            30          -                 2,186   
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    Increase (decrease) in net assets                                         
      647             (6,107)       (2,465)         (1,483)          (9,408)  
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    (Decrease) in shareholders' funds at 1 January 2004                       
        -               (911)       (1,299)         (1,288)          (3,498)  
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