13:37     CHINESE EST H<00127> - Results Announcement (4)                     

                                                                              
    5.      Investment income, net                                            
                                            2004            2003              
                                            HK$'000         HK$'000           
    Unrealised holding gain on                                                
    - unlisted securities investments       107,755         -                 
    - dealing with United States currency                                     
         forward contracts                  (1,010)         6,905             
    - increase in market price of listed                                      
         securities investments             140,846         431,321           
                                            ---------       ---------         
                                            247,591         438,226           
    - exchange gain on translation of                                         
        listed securities investments       25,157          45,922            
                                            ----------      ---------         
                                                                              
    Total unrealised holding gain           272,748         484,148           
    Written back of allowance for advance                                     
      to an investee company                -               42,406            
    Written off of other investment         -               (3,847)           
    Impairment loss recognized in respect                                     
       of unlisted debt securities          -               (3,867)           
    Other investment income                 6,169           458               
    Dividend income                         112,517         24,991            
    Interest income                         34,381          42,352            
                                            -----------     -----------       
                                            425,815         586,641           
                                            ===========     ===========       
                                                                              
    6.      Other operating expenses                                          
                                            2004            2003              
                                            HK$'000         HK$'000           
    Included in other operating expenses are:                                 
                                                                              
    Allowance for bad and doubtful debts    -               16,968            
    Allowance for properties held for sale  -               3,600             
    Amortisation of goodwill                2,567           2,653             
    Amortisation of intangible assets       377             377               
    Impairment loss recognized in respect                                     
      of other assets                       -               2,044             
    Provision for a litigation claim        8,427           -                 
                                            =========       =========         
                                                                              
    7.      Profit from operations                                            
                                            2004            2003              
                                            HK$'000         HK$'000           
    Profit from operations has been                                           
      arrived at after (charging)                                             
      crediting:                                                              
                                                                              
    Depreciation                            (12,035)        (9,555)           
                                                                              
    Gain on disposal of listed securities                                     
      investments                                                             
        - increase in market value of                                         
            listed securities investments   89,243          54,599            
        - realised exchange (loss) gain on                                    
            translation of listed                                             
            securities investments          (14,866)        53,813            
                                            -----------     ----------        
                                            74,377          108,412           
                                            ===========     ==========        
                                                                              
    Gross rental income from investment                                       
      properties                            695,381         668,934           
    Less : Outgoings                        (30,078)        (33,014)          
                                            -----------     -----------       
                                            665,303         635,920           
                                            ===========     ===========