13:38     CHINESE EST H<00127> - Results Announcement (5)                     

                                                                              
    8.      Finance costs                                                     
                                                    2004            2003      
                                                    HK$'000         HK$'000   
    Interest on :                                                             
    Bank loans wholly repayable within five years   55,087          98,580    
    Other loans wholly repayable within five years  14,788          4,440     
    Finance leases                                  -               15        
                                                    --------        --------  
                                                    69,875          103,035   
    Realised exchange (gain) loss on translation                              
      of foreign currency loans                     (14,465)        53,813    
    Unrealised exchange loss on translation of                                
      foreign currency loans                        -               45,922    
    Other finance costs                             6,065           5,419     
                                                    ---------       --------- 
                                                    61,475          208,189   
    Less : Interest capitalised to properties                                 
             under development                      (5,772)         (18,099)  
                                                    ---------       --------- 
                                                    55,703          190,090   
                                                    =========       ========= 
                                                                              
    9.      Other income, net                                                 
                                                    2004            2003      
                                                    HK$'000         HK$'000   
    Included in other income, net are:                                        
                                                                              
    Gain on disposal of subsidiaries                3,436           -         
    Release of negative goodwill arising from                                 
      investment in an associate                    2,920           2,920     
    Written back of allowances for advances to                                
       associates                                   9,229           116,740   
                                                    ========        ========= 
                                                                              
    10.     Exchange difference                                               
                                                                              
    The implication of exchange difference in the income statement arising    
    from hedging of foreign currency securities investments by foreign        
    currency loans are summarised as follows:                                 
                                                    2004            2003      
                                                    HK$'000         HK$'000   
                                                                              
    Gross profit                                                              
      including realised exchange (loss)                                      
        gain on disposal of securities investments  (14,866)        53,813    
                                                                              
    Investment income                                                         
      including unrealised exchange gain on                                   
        securities investments held                 25,157          45,922    
                                                    ----------      --------- 
                                                    10,291          99,735    
                                                    ==========      ========= 
    Finance costs                                                             
      including realised exchange gain (loss) on                              
        foreign currency loans                      14,465          (53,813)  
      including unrealised exchange loss on foreign                           
        currency loans                              -               (45,922)  
                                                    -----------     ----------
                                                    14,465          (99,735)  
                                                    ===========     ==========