13:06     SHOUGANG INT'L<00697> - Results Announcement (2)                    

                                                                              
    Loss (gain) on disposal of property, plant and equipment                  
                                               24,044          (2,303)        
    Interest income                            (4,352)         (1,771)        
    Gain on disposal of an investment property                                
                                               (1,397)              -         
    Write-back of allowance for bad and doubtful debt, net                    
                                              (14,915)        (20,360)        
    Write-back of allowance for inventories       (20)         (2,715)        
    Write-back of an amount due to a related company                          
                                                    -            (765)        
    (Surplus) deficit arising on revaluation of investment properties         
                                                 (749)          1,791         
                                            ============================      
                                                                              
                                                                              
    (3)     EARNINGS PER SHARE                                                
                                                                              
    The calculation of the basic and diluted earnings per share is based on   
    the following data:                                                       
                                                                              
                                                                              
                                            2004            2003              
                                            HK$'000         HK$'000           
                                                                              
    Profit for the purposes of basic earnings per share                       
                                                  279,235          67,764     
    Effect of dilutive potential ordinary shares:                             
    Adjustment to the share of result of an associate                         
    based on dilution of its earnings per share                               
                                                   (3,784)         (1,399)    
    Interest on convertible note                       16           6,000     
                                            ------------------------------    
                                                                              
    Earnings for the purposes of diluted earnings per share                   
                                                  275,467          72,365     
                                            ==============================    
    Weighted average number of ordinary shares for the                        
    purposes of basic earnings per share    3,708,709,632   2,331,984,810     
                                                                              
    Effect of dilutive potential ordinary shares:                             
    Options                                   128,441,080      31,849,007     
    Convertible note                            1,561,280     571,428,571     
                                            ------------------------------    
    Weighted average number of ordinary shares for the                        
    purposes of diluted earnings per share  3,838,711,992   2,935,262,388     
                                            ==============================