09:09     UNIVERSAL HOLD<00419> - Results Announcement (2)                    

    (4)             Operating profit/(loss)                                   
                                                                              
    Operating profit/(loss) is stated after crediting and charging the        
    following:                                                                
                                                      Group                   
                                            2004            2003              
                                            HK$'000         HK$'000           
    Crediting                                                                 
                                                                              
    Net other operating expenses including:                                   
                                                                              
    Net gain on dilution of interests in an associated company                
                                                                              
                                            14,289          11,503            
    Net gain on disposal of fixed assets    47              26                
                                                                              
    Write-back of provision for inventory   116             -                 
                                                                              
    Write-back of provision for bad and doubtful debts                        
                                                                              
                                            -               21,036            
    PRC VAT tax refund                      323             -                 
    Gain on redemption of preferred shares                                    
                                                                              
                                            -               5,793             
                                            -----------------------           
                                                                              
    Charging                                                                  
    Cost of inventories sold                18,049          17,013            
                                                                              
    Cost of services provided               2,407           3,966             
                                                                              
    Depreciation                            425             3,457             
    Auditors' remuneration                  495             450               
    Loss on disposal of subsidiaries        836             -                 
    Staff costs (excluding directors' remuneration, note 10(a)):              
                                                                              
    Wages and salaries                      2,099           1,502             
    Unutilised annual leave                 19              -                 
    Termination benefits                    58              -                 
    Contributions to defined contribution Mandatory Provident Fund:           
                                                                              
    Current year                            73              71                
    Underprovided in prior year             57              -                 
                                            ----------------------            
                                            2,306           1,573             
                                            ========================          
                                                                              
    Operating lease rentals:                                                  
                                                                              
    Land and buildings                      703             1,324             
              Equipment                     -               416               
                                            -----------------------           
                                            703             1,740             
                                            ======================            
                                                                              
                                                                              
    Net other operating expenses including:                                   
                                                                              
    Amortisation of intangibles:                                              
                                                                              
    Goodwill                                52              104               
    Development costs                       -               368               
    Write-off of development costs          -               92                
    Write-off of inventories                112             -                 
    Net other operating expenses including:                                   
                                                                              
    Provision for bad and doubtful debts    -               298               
    Write-off of bad and doubtful debts     1,589           870               
    Net unrealised loss of short-term investments                             
                                                                              
                                            -               3,946             
    Provision for settlement of legal dispute                                 
                                                                              
                                            -               13,852            
    Exchange losses, net                    124             -                 
                                            =======================           
                                                                              
    (5)     Loss per share                                                    
                                                                              
    The calculation of the basic loss per share is based on the Group's loss  
    attributable to ordinary shareholders of HK$9,931,000 (2003: HK$70,046,   
    000) and on the weighted average number of 3,274,293,157 (2003: 2,897,580 
    ,828) 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 convertible preference shares outstanding had an     
    anti-dilutive effect on the basic loss per share for both years.          
                                                                              
    (6)   Comparative Amounts                                                 
                                                                              
    Certain comparative amounts have been reclassified to conform with the    
    current year presentation.                                                
                                                                              
    For more details, please refer to the press announcement today.