08:35     ESUN HOLDINGS<00571> - Results Announcement (1)                     

    eSun Holdings Limited announced on 15/04/2005:                            
    (stock code: 00571 )                                                      
    Year end date: 31/12/2004                                                 
    Currency: HKD                                                             
    Auditors' Report: Qualified                                               
                                                                              
                                                            (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                        4  : 152,781            97,804            
    Profit/(Loss) from Operations      : (57,334)           (67,523)          
    Finance cost                       : (13,884)           (4,296)           
    Share of Profit/(Loss) of                                                 
      Associates                       : 30,638             (12,520)          
    Share of Profit/(Loss) of                                                 
      Jointly Controlled Entities      : (1,968)            (1,972)           
    Profit/(Loss) after Tax & MI       : 52,369             (92,707)          
    % Change over Last Period          : N/A       %                          
    EPS/(LPS)-Basic (in dollars)    1  : 0.078              (0.1486)          
             -Diluted (in dollars)     : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : 52,369             (92,707)          
    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 (-)                                                         
      General Meeting                  : N/A                                  
    Other Distribution for             : N/A                                  
      Current Period                                                          
                                                                              
    B/C Dates for Other                                                       
      Distribution                     : N/A                                  
                                                                              
    Remarks:                                                                  
                                                                              
    1.      EARNINGS/(LOSS) PER SHARE                                         
                                                                              
    The calculation of basic earnings/(loss) per share is based on the net    
    profit attributable to shareholders for the year of HK$52,369,000 (2003:  
    net loss for the year of HK$92,707,000) and the weighted average of       
    671,184,929 (2003: 623,787,668) ordinary shares in issue during the year. 
                                                                              
    Diluted earnings/(loss) per share amounts for the years ended 31st        
    December, 2004 and 2003 have not been shown as no diluting events existed 
    during these years.                                                       
                                                                              
                                                                              
    2.      SUMMARY OF AUDITORS' REPORT                                       
                                                                              
    Scope limitation of the carrying value of film rights                     
    The Group recorded film rights with an aggregate carrying value of        
    HK$190,684,000 as at 31st December, 2004. The Directors engaged an        
    independent                                                               
    third party (the "Valuer") to perform a valuation of the Group's all      
    rights, titles and interests to 127 films (the "127 Film Rights") of the  
    total film rights which had a carrying value of HK$190,570,000 as at 31st 
    December, 2004 in order to provide them with a reference to assess if     
    there is any impairment in value of the Group's total film rights as at   
    that date.  Having regard to the valuation performed by the Valuer and the
    current market conditions, the Directors are of the opinion that there is 
    no impairment in the value of the Group's film rights as at 31st December,
    2004.  The auditors have been unable to obtain sufficient reliable        
    information to carry out the audit procedures required by the Statement of
    Auditing Standards 520 "Using the Work of an Expert" ("SAS 520") issued by
    the Hong Kong Institute of Certified Public Accountants, to satisfy       
    themselves as to (i) the competence and objectivity of the Valuer; and (  
    ii) the adequacy of the scope of the Valuer's work on the 127 Film Rights.
      Accordingly, the auditors have been unable to carry out adequate audit  
    procedures to assess the carrying amount of the film rights as at 31st    
    December, 2004.  Included in the consolidated profit and loss account for 
    the year ended 31st December, 2004 is an amortisation charge on the       
    Group's film rights of HK$6,971,000.  The auditors are also unable either 
    to obtain sufficient reliable information, or to carry out alternative    
    audit procedures to satisfy themselves as to the appropriateness of the   
    basis of computation of the amortisation charge.                          
                                                                              
    Any adjustments that might have been found necessary in respect of the    
    above would have a consequential impact on the net assets of the Group as 
    at 31st December, 2004 and the net profit attributable to the shareholders
    for the year then ended.                                                  
                                                                              
    In forming their opinion the auditors also evaluated the overall adequacy 
    of the presentation of information in the financial statements.  The      
    auditors believe that their audit provides a reasonable basis for their   
    opinion.