13:17     GUANGDONG TANN<01058> - Results Announcement                        

    Guangdong Tannery Limited announced on 08/04/2005:                        
    (stock code: 01058 )                                                      
    Year end date: 31/12/2004                                                 
    Currency: HKD                                                             
    Auditors' Report: Modified                                                
                                                                              
                                                            (Audited   )      
                                         (Audited   )       Last              
                                         Current            Corresponding     
                                         Period             Period            
                                         from 01/01/2004    from 01/01/2003   
                                         to 31/12/2004      to 31/12/2003     
                                   Note  ('000      )       ('000      )      
    Turnover                           : 281,951            381,601           
    Profit/(Loss) from Operations      : 11,605             (95,632)          
    Finance cost                       : (5,734)            (5,948)           
    Share of Profit/(Loss) of                                                 
      Associates                       : N/A                N/A               
    Share of Profit/(Loss) of                                                 
      Jointly Controlled Entities      : N/A                N/A               
    Profit/(Loss) after Tax & MI       : 4,668              (101,294)         
    % Change over Last Period          : N/A       %                          
    EPS/(LPS)-Basic (in dollars)       : 0.0089             (0.1933)          
             -Diluted (in dollars)     : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : 4,668              (101,294)         
    Final Dividend                     : Nil                Nil               
      per Share                                                               
    (Specify if with other             : N/A                N/A               
      options)                                                                
                                                                              
    B/C Dates for                                                             
      Final Dividend                   : N/A                                  
    Payable Date                       : N/A                                  
    B/C Dates for Annual                                                      
      General Meeting                  : 07/06/2005         to 08/06/2005 bdi.
    Other Distribution for             : N/A                                  
      Current Period                                                          
                                                                              
    B/C Dates for Other                                                       
      Distribution                     : N/A                                  
                                                                              
    Remarks:                                                                  
                                                                              
                                                                              
    (1)     SUMMARY OF REPORT OF THE AUDITORS                                 
                                                                              
    An extract from the report of the auditors to the Company for the year    
    ended 31 December 2004 is as follows:                                     
                                                                              
    Fundamental uncertainty - Contingent liabilities                          
                                                                              
    In arriving at our audit opinion, we have considered the adequacy of the  
    disclosures made in the financial statements concerning the irregularities
    involving certain former executives of a former subsidiary of the Company 
    in a previous year and the related provision of HK$69,600,000 for the tax 
    claim and tax penalty made by the Group as detailed in the financial      
    statements.  As the actions taken by the authorities of the People's      
    Republic of China (the "PRC") have not yet been concluded, it is not      
    possible to ascertain with any degree of reasonable certainty the amount  
    of any tax penalty which may finally be imposed by the PRC authorities and
    the other consequential actions that may be taken by the PRC authorities  
    for the apparent breaches of certain PRC laws and regulations, or the     
    existence or otherwise of any other penalties and claims arising as a     
    result of the aforesaid irregularities.  As of the date of this report, no
    further provision other than that disclosed in the financial statements   
    has been made in the financial statements for such contingencies.  We     
    consider that appropriate disclosures and estimates have been made in the 
    financial statements and our audit opinion is therefore not qualified in  
    this respect.                                                             
                                                                              
    Opinion                                                                   
                                                                              
    In our opinion the financial statements give a true and fair view of the  
    state of affairs of the Company and of the Group as at 31 December 2004   
    and of the profit and cash flows of the Group for the year then ended and 
    have been properly prepared in accordance with the Companies Ordinance.   
                                                                              
    (2)     EARNINGS/(LOSS) PER SHARE                                         
                                                                              
    The calculation of basic earnings per share is based on the net profit    
    attributable to shareholders for the year of HK$4,668,000 (2003: net loss 
    of HK$101,294,000) and the 524,154,000 (2003: 524,154,000) ordinary shares
    in issue during the year.                                                 
                                                                              
    Diluted earnings/(loss) per share amounts for the years ended 31 December 
    2004 and 2003 has not been disclosed, as the share options outstanding    
    during these years had an anti-dilutive effect on the basic earnings/(    
    loss) per share for these years.