13:31     HOPSON DEV HOLD<00754> - Results Announcement (2)                   

                                                                              
    3.      All the Group's turnover and profit from operations for the year  
    ended 31 December 2004 were derived from activities carried out in        
    mainland China.  An analysis of the Group's results by business segment   
    for the year ended 31 December 2004 was as follows:-                      
                                                            Contribution      
                                                            to                
                                                            operating         
                                            Turnover        profit            
                                            HK$'000         HK$'000           
    Property development                    4,338,019       976,776           
    Property investment                     42,744          38,470            
    Property management                     69,150          (4,204)           
                                            -----------     ----------        
                                            4,449,913       1,011,042         
                                            ===========     ==========        
    Other revenue                                           117,706           
    Unallocated costs                                       (25,669)          
                                                            ----------        
                                                            1,103,079         
                                                            ==========        
                                                                              
    4.      Taxation consisted of:-                                           
                                                                              
                                    Company         Jointly                   
                                    and             controlled                
                                    subsidiaries    entity          Total     
                                    HK$'000         HK$'000         HK$'000   
    Current taxation:-                                                        
    Hong Kong profits tax           18,087          -               18,087    
    Mainland China enterprise                                                 
      income tax                    457,798         24,869          482,667   
    Mainland China land                                                       
      appreciation tax              391             25,028          25,419    
                                                                              
    Deferred taxation relating                                                
      to the origination/                                                     
      (reversal) of temporary                                                 
      differences:-                                                           
        Mainland China enterprise                                             
          income tax                (170,939)       -               (170,939) 
        Mainland China land                                                   
          appreciation tax          118,697         -               118,697   
                                    ----------      -----------     ----------
                                    424,034         49,897          473,931   
                                    ==========      ===========     ==========
                                                                              
    Hong Kong profits tax is provided at the rate of 17.5% on the estimated   
    assessable profit arising in or derived from Hong Kong. Mainland China    
    enterprise income tax is provided at the rate of 33%. Mainland China land 
    appreciation tax is provided at progressive rates ranging from 30% to 60% 
    on the appreciation of land value, being the proceeds of sales of         
    properties less deductible expenditures including costs of land and       
    development and construction expenditures.                                
                                                                              
    5.      The calculations of basic and diluted earnings per share are based
    on the Group's profit attributable to shareholders of approximately HK$   
    611,250,000 (2003: HK$315,354,000).                                       
                                                                              
    The basic earnings per share is based on the weighted average number of   
    approximately 1,002,749,000 (2003: 1,002,000,000) ordinary shares in issue
    during the year.  The diluted earnings per share is based on approximately
    1,002,846,000 (2003: 1,002,096,000) ordinary shares which is the weighted 
    average number of ordinary shares in issue during the year plus the       
    weighted average number of approximately 97,000 (2003: 96,000) ordinary   
    shares deemed to be issued at no consideration if all outstanding options 
    had been exercised.                                                       
                                                                              
    6.      On 23 June 2004, the Group entered into conditional agreements to 
    acquire (i) further interests in nine subsidiaries at an aggregate        
    consideration of approximately HK$331,255,000, and (ii) further interests 
    in a jointly controlled entity at an aggregate consideration of           
    approximately HK$468,775,000.  These acquisitions are regarded as major   
    transactions ("Major Transactions") pursuant to the rules governing the   
    listing of securities on The Stock Exchange of Hong Kong Limited and a    
    circular dated 30 June 2004 was issued to shareholders to provide details 
    of these acquisitions.                                                    
                                                                              
    The sale and purchase agreements in respect of the acquisition of the     
    additional interests in the nine subsidiaries were completed during the   
    year. Accordingly, the Group has recognised these acquisitions, including 
    the proportion of the fair value differences attributable to such         
    increases in the Group's interests in these subsidiaries and the negative 
    goodwill.                                                                 
                                                                              
    The acquisition of further interests in a jointly controlled              
    entity has not yet completed at 31 December 2004 because, among others,   
    the transfer of business ownership has not been completed.