08:27     GDC<08271> - Yearly Results Announcement (2)                        

    (ii) Availability of facility                                             
                                                                              
    The amount available to the Group for additional borrowings under         
    the facility granted at 31 December 2004 was approximately                
    HK$9,157,000.  The availability of the facility further increased         
    to approximately HK$19,157,000 subsequently.                              
                                                                              
    (iii) Other loan from SCG Finance Corporation Limited, a wholly-owned     
    subsidiary of Shougang Concord Grand (Group) Limited ("SCG")              
                                                                              
    SCG is incorporated in Bermuda as an exempted company with limited        
    liability with its shares listed on the Stock Exchange.  Subsequent       
    to 31 December 2004, SCG became the holding company of the Group          
    and the directors are of the opinion that SCG will provide                
    continuous financial support to the Group.                                
                                                                              
    (iv) Loans from shareholders                                              
                                                                              
    The loan advanced from Mr. Anthony Francis Neoh of approximately          
    HK$18,237,000 has been confirmed by him that he will not seek             
    repayment from the Group within twelve months from 31 December 2004       
    or a date upon which such repayment would not have material adverse       
    effect on the operation of the Group.                                     
                                                                              
    2.      POTENTIAL IMPACT ARISING FROM THE RECENTLY ISSUED ACCOUNTING      
    STANDARDS                                                                 
                                                                              
    In 2004, the Hong Kong Institute of Certified Public Accountants issued   
    Financial Reporting Standards (herein collectively referred to as "new    
    HKFRSs") which are effective for accounting periods beginning on or       
    after 1 January 2005.  The Group has not early adopted these new HKFRSs   
    in the financial statements for the year ended 31 December 2004.          
                                                                              
    The Group has commenced considering the potential impact of these new     
    HKFRSs but is not yet in a position to determine whether these new        
    HKFRSs would have a significant impact on how the results of operations   
    and financial position of the Group are prepared and presented.  These    
    new HKFRSs may result in changes in the future as to how the results of   
    operation and financial position of the Group are prepared and presented. 
                                                                              
    3.      LOSS PER SHARE                                                    
                                                                              
    The calculation of the basic loss per share is based on the net loss      
    for the year of approximately HK$130,336,000 (2003: HK$33,149,000) and    
    the weighted average of 793,197,377 shares (2003: 715,903,027 shares)     
    in issue during the year.                                                 
                                                                              
    No diluted loss per share has been calculated for the year ended 31       
    December 2004 as the exercise of the share options would result in a      
    decrease in the loss per share.  Diluted loss per share was not           
    presented for the year ended 31 December 2003 because there was no        
    potential ordinary shares in existence for that year.