09:06     DVN (HOLDINGS)<00500> - Results Announcement (2)                    

                                                                              
    2       Staff costs                                                       
                                                    Group                     
                                            2004            2003              
                                            HK$'000         HK$'000           
                                                                              
    Wages and salaries                      36,416          37,209            
    Unutilised annual leave                 68              207               
    Contribution to the defined contribution schemes                          
                                            1,516           1,934             
    Termination benefits                    12              417               
    Long service payment                    1,237           -                 
    Less: costs capitalized                 (10,190)        (15,617)          
                                            ------------------------          
                                            29,059          24,150            
                                            ========================          
    3       Loss per share                                                    
                                                                              
    The calculation of the basic loss per share is based on the Group's loss  
    attributable to ordinary shareholders of HK$59,734,000 (2003: HK$140,065, 
    000) and on the weighted average number of 485,992,615 (2003: 395,227,977)
    ordinary shares in issue during the year.                                 
                                                                              
    No diluted loss per share is shown for the two years ended 31st December  
    2004 and 2003 as the share options and exchangeable preference shares     
    outstanding had an anti-dilutive effect on the basic loss per share for   
    both years.                                                               
                                                                              
    4       Taxation                                                          
                                                                              
    No provision for Hong Kong and overseas profits tax has been made in the  
    accounts as the Group did not have any assessable profit for the year (   
    2003: Nil).                                                               
                                                                              
    The taxation on the Group's loss before taxation differs from the         
    theoretical amount that would arise using the domestic taxation rate in   
    each of the Group companies as follows:                                   
                                                    Group                     
                                            2004            2003              
                                            HK$'000         HK$'000           
                                                                              
    Loss before taxation                    (54,424)        (138,100)         
                                    ---------------------------------         
                                                                              
    Notional tax calculated at the rates applicable in the countries concerned
                                                                              
                                            (6,331)         (15,353)          
    Tax at preferential rate                2,088           6,268             
    Income not subject to taxation          (18)            (1)               
    Expenses not deductible for taxation purposes                             
                                            585             392               
    Temporary difference not recognised     2,213           4,816             
    Utilisation of previously unrecognised tax losses                         
                                            (1,997)         (1,479)           
    Tax losses not recognised               3,460           5,357             
                                    --------------------------------          
    Taxation charge                         -               -                 
                                    ===============================           
                                                                              
    5       Preference dividends                                              
                                                    Group                     
                                            2004            2003              
                                            HK$'000         HK$'000           
    Dividends on 5% exchangeable preference shares                            
    issued by DVN (Group) Limited, a wholly-owned subsidiary of the Company   
                                            5,812           5,812             
                                            ========        =======           
                                                                              
    6       Final Dividend                                                    
    No final dividend has been declared during the year ended 31 December 2004
    (2003: Nil).                                                              
                                                                              
    For more details, please refer to the press announcement today.