13:30     SHOUGANG TECH<00521> - Results Announcement (2)                     

                                                                              
    Note II : (Loss) Earning per share                                        
                                                                              
    The calculation of the basic and diluted earnings per share for the year  
    is based on the following data:                                           
                                            2004            2003              
                                            HK$'000         HK$'000           
    (Loss) profit for the purposes of basic and diluted (loss)                
    earnings per share                            (94,019)       22,400       
                                            ============================      
                                                                              
                                            2004            2003              
    Weighted average number of ordinary shares for the                        
    purposes of basic earnings per share    1,198,657,282   943,604,787       
                                                                              
    Effect of dilutive potential ordinary shares in respect                   
    of share options                           25,023,923    31,608,158       
                                            ----------------------------      
    Weighted average number of ordinary shares for the                        
    purposes of diluted (loss) earnings per share                             
                                            1,223,681,205   975,212,945       
                                            ============================      
                                                                              
    The computation of diluted loss per share does not assume the exercise of 
    the Company's share options since their exercise would reduce the loss per
    share from continuing ordinary operations.