08:57     WEICHAI POWER<02338> - Results Announcement (2)                     

                                                                              
    3. INCOME TAX EXPENSE                                                     
                                                                              
                                            2004    2003                      
                                            RMB'000 RMB'000                   
            PRC Enterprise Income Tax:                                        
           Current year                     269,371 178,025                   
             Overprovision in prior year    (240)   -                         
             Tax credit                     (63,647)-                         
                                            ---------------                   
                                           205,484  178,025                   
                                            ===============                   
                                                                              
    PRC Enterprise Income Tax is calculated at statutory income tax rate of   
    33% (2003: 33%) of the assessable profit except that the Company's        
    Chongqing branch is taxed at a preferential rate of 15% (2003: 15%)       
    pursuant to the relevant laws and regulations in the PRC.                 
                                                                              
            During the year ended 31st December, 2004, the Company established
    a branch in Hong Kong which is subject to Hong Kong Profits Tax at 17.5%  
    on its estimated assessable profit.  No provision for Hong Kong Profits   
    Tax has been made as the branch had no assessable profit for the year.    
                                                                              
                                                                              
    Pursuant to notices dated 29th February, 2004 and 25th February, 2005     
    issued by the Weifang Municipal Tax Bureau, the Company is entitled to    
    total tax credit of approximately RMB 63,647,000 in respect of eligible   
    additions of domestic machinery and equipment for production use.         
                                                                              
                                                                              
    4. FINAL DIVIDEND                                                         
                                                                              
    A final dividend of RMB0.15 for the year ended 31st December, 2004 (2003: 
    RMB0.105 per share which was declared on 18 February, 2004) has been      
    proposed by the board of directors of the Company and is subject to       
    approval by the shareholders in the annual general meeting to be held on  
    27th May, 2005.                                                           
                                                                              
    5. BASIC EARNINGS PER SHARE                                               
                                                                              
            The calculation of basic earnings per share is based on the profit
    for the year of approximately RMB538,880,000 (2003: RMB277,468,000) and on
    the weighted average number of 308,005,000 (2003: 215,000,000) ordinary   
    shares in issue during the year.                                          
                                                                              
    For more details, please refer to the press announcement today.