10:38     <00275> & <00235>-Joint Ann. & <00235> Resumed (13)                 

            For the                                                           
             six months ended                 For the year ended              
            30th September,                 31st March,                       
            2004                2004                2003                      
            HK$'000                HK$'000                HK$'000             
                                                                              
    Turnover        2,722,355                5,009,930                        
    4,162,804                                                                 
    Gross profit        564,584                1,088,088                      
    914,035                                                                   
    Profit (loss) before income tax        53,820                121,639      
    (570,474        )                                                         
    Profit (loss) for the period/year        (25,032        )                 
    13,300                (648,620        )                                   
                                                                              
                                                                              
    The following table sets out a summary of the audited consolidated        
    balance sheet of the Hanny Group as at 31st March, 2003 and 2004 and      
    unaudited consolidated balance sheet as at 30th September, 2004:          
                                                                              
            As at                                                             
            30th September,                As at 31st March,                  
            2004                2004                2003                      
            HK'000                HK$'000                HK$'000              
                                                                              
    Non-current assets        1,526,718                1,643,529              
    1,604,463                                                                 
                                                                              
    Current assets        1,966,390                2,299,707                  
    1,663,268                                                                 
    Current liabilities        (1,242,140        )        (1,653,951          
    )        (1,185,858        )                                              
                                                                              
                                                                              
    Net current assets        724,250                645,756                  
    477,410                                                                   
                                                                              
    Non-current liabilities        (10,456        )        (10,947            
    )        (177,708        )                                                
    Minority interests        (413,290        )        (405,157        )      
    (174,598        )                                                         
                                                                              
                                                                              
    Capital and reserves        1,827,222                1,873,181            
    1,729,567                                                                 
                                                                              
                                                                              
    On the basis of 223,628,412 Hanny Shares in issue as at the date of       
    this announcement and taking into account (i) the unaudited               
    consolidated net asset value of the Hanny Group of HK$1,827.2 million     
    as at 30th September, 2004 and; (ii) the placing of Hanny Shares          
    completed in December 2004 (details of which were set out in the          
    announcement of Hanny dated 23rd November, 2004), the adjusted            
    unaudited consolidated net asset value is approximately HK$8.7 per        
    Hanny Share.                                                              
                                                                              
    As at the date of this announcement, Hanny has outstanding options to     
    subscribe for an aggregate of 21,800,000 Hanny Shares granted to it       
    directors and employees of which (i) outstanding options to subscribe     
    for 9,000,000 Hanny Shares were granted under the old share option        
    scheme adopted on 21st August, 2001 and terminated on 17th March,         
    2003; and (ii) outstanding options to subscribe for 12,800,000 Hanny      
    Share were granted under the new share option scheme adopted on 17th      
    March, 2003. Apart from these and the Hanny Bond that may be issued       
    under the GDI Offer, Hanny does not have any other outstanding            
    options, warrants or other convertible securities which carry rights      
    to subscribe for Hanny Shares.                                            
                                                                              
    Financial effect of the GDI Offer on Hanny                                
                                                                              
    Details of the financial information of GDI including, among other        
    things, the accountant's report of GDI containing the combined income     
    statement and the combined cash flow statement for the three years        
    ended 31st December, 2002, 2003 and 2004, the combined balance sheet      
    as at 31st December, 2002, 2003 and 2004, together with the respective    
    notes following the injection of the Distributed Business by China        
    Strategic will be disclosed in detail in the Hanny Circular.              
                                                                              
    Accordingly, the financial effect of the GDI Offer on Hanny could not     
    be ascertained as at the date of this announcement and such               
    information will be included in the Hanny Circular and the composite      
    offer and response document in relation to the GDI Offer.