08:55     SANYUAN GROUP<00140> - Results Announcement (2)                     

                                                                              
    (2)     PROFIT FROM OPERATIONS                                            
                                                                              
    This is stated after (charging) crediting:                                
                                            2004            2003              
                                            HK$'000         HK$'000           
                                                                              
    Other revenue                           -               13                
    Other income                            383             1,018             
    Material cost for service income        (418)           (491)             
    Depreciation                            (321)           (488)             
    Staff costs                             (5,424)         (6,726)           
    Other operating expenses                (5,103)         (5,714)           
    Holding gain on other investments       217             41                
    Profit on disposal of other investments 53              -                 
    Provision for amount due from                                             
     unconsolidated subsidiaries             -              (91)              
    Reversal of losses of subsidiaries                                        
     on deconsolidation                      -              15,378            
    Guarantee income earned                  -              5,803             
    Gain on disposal of subsidiaries        21,492          -                 
    Loss on disposal of an associate        (1)             -                 
    Gain on disposal of property, plant                                       
     and equipment                           7             5,672              
    (Provision for) Write-back of doubtful                                    
     trade and other receivables           (3,571)         1,214              
    Gain on disposal of investment                                            
     properties                              -               700              
    Gain on discharge of bank and other                                       
     indebtedness                           217,415         -                 
    Write-back of provision under corporate                                   
     guarantees upon release of guarantees                                    
     by banks                                 -            108,265            
                                                                              
    (3)     EARNINGS PER SHARE                                                
                                                                              
    The calculation of basic earnings per share for the year ended 31 December
    2004 was based on the consolidated profit of approximately HK$217,547,000 
    (2003: HK$96,232,000) and the weighted average of 473,668,922 shares (    
    2003: 310,071,347 shares) in issue during the year.                       
                                                                              
    No diluted earnings per share is presented as there were no dilutive      
    potential ordinary shares in issue for the years 2004 and 2003.           
                                                                              
    For more details, please refer to the press announcement today.