08:59 MENGNIU DAIRY<02319> - Results Announcement (2) ii) EARNINGS PER SHARE The calculation of basic earnings per share for the current year is based on the net profit from ordinary activities attributable to shareholders for the year of RMB319,393,000, and the weighted average of 893,965,000 ordinary shares in issue during the year. The weighted average number of shares used to calculate the basic earnings per share for the year ended 31 December 2004 includes the additional 250,000,000 ordinary shares issued upon the listing of the Company's shares on the Stock Exchange on 10 June 2004 and 110,524,942 ordinary shares issued upon conversion of the convertible instrument on 20 December 2004. The comparative number of shares used to calculate the basic earnings per share for the year ended 31 December 2003 represents the pro forma issued share capital of the Company, comprising 143,654 ordinary shares and 749,856,346 ordinary shares issued for the Reorganization. The calculation of basic earnings per share for the year ended 31 December 2003 is based on the net profit from ordinary activities attributable to shareholders for the year of RMB164,372,000, and after the deduction of the dividend entitlement of the holders of the non-voting convertible redeemable preferred shares of RMB20,377,000, as set out in note (iii) below, and the weighted average of 750,000,000 ordinary shares assumed to have been in issue during the year ended 31 December 2003. The calculation of diluted earnings per share is based on the net profit from ordinary activities attributable to shareholders for the year of RMB 319,393,000 and the weighted average of 1,118,851,000 ordinary shares in issue during the year, being the weighted average number of ordinary shares outstanding during the year, adjusted for the effects of dilutive potential ordinary shares outstanding during the year. A reconciliation of the weighted average number of shares used in calculating the basic and diluted earnings per share is as follows: 2004 2003 000' 000' Weighted average number of ordinary shares for the purpose of basic earnings per share calculation 893,965 750,000 ------- Weighted average number of ordinary shares, assuming issued at conversion of convertible instrument during the year 224,886 -------- Weighted average number of ordinary shares for the purpose of diluted earnings per share calculation 1,118,851 ========= Diluted earnings per share has not been shown for the year ended 31 December 2003 as the non-voting convertible redeemable preferred shares of the Group outstanding during that year had an anti-dilutive effect on the basic earnings per share. iii) DIVIDEND 2004 2003 RMB'000 RMB'000 Proposed final dividend - RMB 5.85 cents per ordinary share 64,966 - Interest on convertible instrument 15,087 - Dividend paid by China Dairy Holdings to the then shareholders of - ordinary shares - 41,483 - non-voting convertible redeemable preferred shares - 20,377 ------- --------- 80,053 61,860 ======= ========= The proposed final dividend for the year is subject to the approval of the Company's shareholders at the forthcoming annual general meeting. For more details, please refer to the press announcement today.