08:54     SANYUAN GROUP<00140> - Results Announcement (1)                     

    Sanyuan Group Limited announced on 21/04/2005:                            
    (stock code: 00140 )                                                      
    Year end date: 31/12/2004                                                 
    Currency: HKD                                                             
    Auditors' Report: Qualified                                               
                                                                              
                                                            (Audited   )      
                                         (Audited   )       Last              
                                         Current            Corresponding     
                                         Period             Period            
                                         from 01/01/2004    from 01/01/2003   
                                         to 31/12/2004      to 31/12/2003     
                                   Note  ('000      )       ('000      )      
    Turnover                           : 1,169              1,355             
    Profit/(Loss) from Operations      : 225,898            125,949           
    Finance cost                       : (9,641)            (29,450)          
    Share of Profit/(Loss) of                                                 
      Associates                       : N/A                31                
    Share of Profit/(Loss) of                                                 
      Jointly Controlled Entities      : N/A                N/A               
    Profit/(Loss) after Tax & MI       : 217,547            96,232            
    % Change over Last Period          : +126      %                          
    EPS/(LPS)-Basic (in dollars)       : 0.459              0.310             
             -Diluted (in dollars)     : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : 217,547            96,232            
    Final Dividend                     : NIL                NIL               
      per Share                                                               
    (Specify if with other             : N/A                N/A               
      options)                                                                
                                                                              
    B/C Dates for                                                             
      Final Dividend                   : N/A                                  
    Payable Date                       : N/A                                  
    B/C Dates for (-)                                                         
      General Meeting                  : N/A                                  
    Other Distribution for             : N/A                                  
      Current Period                                                          
                                                                              
    B/C Dates for Other                                                       
      Distribution                     : N/A                                  
                                                                              
    Remarks:                                                                  
                                                                              
                                                                              
    (1)     SUMMARY OF AUDITORS' OPINION                                      
                                                                              
    The auditors' report on the Group's financial statements as at and for the
    year ended 31 December 2004 has been qualified in relation to the         
    existence of a fundamental uncertainty as follows:                        
                                                                              
    Fundamental uncertainty                                                   
    At the balance sheet date, both the Company and the Group had significant 
    capital deficiencies. In forming the auditors' opinion, they have         
    considered the adequacy of disclosures made in the financial statements   
    concerning the outcome of the Group's plans for acquisition of profitable 
    operations and the availability of future funding.                        
                                                                              
    The financial statements have been prepared on a going concern basis, the 
    validity of which depends upon the success of the Group's future          
    operations and sufficient future funding being available.  The financial  
    statements do not include all significant adjustments that would result   
    should the future operations and funding plan prove to be unsuccessful.   
    Had the going concern basis not been used, the adjustments necessary would
    have a consequential significant effect on the net liabilities as at 31   
    December 2004 and the profit for the year then ended.                     
                                                                              
    Disclaimer opinion                                                        
    Because of the significance of the possible effect of the fundamental     
    uncertainty, the auditors are unable to form an opinion as to whether the 
    financial statements give a true and fair view of the state of the        
    Company's and the Group's affairs as at 31 December 2004 or of the profit 
    of the Group for the year then ended.  In the auditors' opinion, the      
    financial statements give a true and fair view of the cash flows for the  
    year ended 31 December 2004.  In all other respects, in the auditors'     
    opinion, the financial statements have been properly prepared in          
    accordance with the Companies Ordinance.