08:59     SOUTH CHINA IND<00413> - Results Announcement (1)                   

    South China Industries Limited announced on 21/04/2005:                   
    (stock code: 00413 )                                                      
    Year end date: 31/12/2004                                                 
    Currency: HKD                                                             
    Auditors' Report: Unqualified                                             
                                                                              
                                                            (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                           : 3,470,171          3,119,145         
    Profit/(Loss) from Operations      : 85,437             74,432            
    Finance cost                       : (9,675)            (9,261)           
    Share of Profit/(Loss) of                                                 
      Associates                       : (11,163)           (5,527)           
    Share of Profit/(Loss) of                                                 
      Jointly Controlled Entities      : N/A                N/A               
    Profit/(Loss) after Tax & MI       : 100,896            66,514            
    % Change over Last Period          : +52       %                          
    EPS/(LPS)-Basic (in dollars)       : 0.1902             0.1254            
             -Diluted (in dollars)     : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : 100,896            66,514            
    Final Dividend                     : 5.7 cents          2 cents           
      per Share                                                               
    (Specify if with other             : N/A                N/A               
      options)                                                                
                                                                              
    B/C Dates for                                                             
      Final Dividend                   : 24/05/2005         to 25/05/2005 bdi.
    Payable Date                       : 31/08/2005                           
    B/C Dates for Annual                                                      
      General Meeting                  : 24/05/2005         to 25/05/2005 bdi.
    Other Distribution for             : N/A                                  
      Current Period                                                          
                                                                              
    B/C Dates for Other                                                       
      Distribution                     : N/A                                  
                                                                              
    Remarks:                                                                  
                                                                              
                                                                              
    1.      Principal accounting policies                                     
                                                                              
    The Hong Kong Institute of Certified Public Accountants (the "HKICPA")    
    issued a number of new and revised Hong Kong Financial Reporting Standards
    ("HKFRSs") and Hong Kong Accounting Standards ("HKAS") (hereinafter       
    collectively referred to as "new HKFRSs") which are effective for         
    accounting periods beginning on or after 1 January 2005.  The Group has   
    not early adopted these new HKFRSs in the financial statements for the    
    year ended 31 December 2004, except for the following new HKFRSs as       
    further explained below:                                                  
                                                                              
                    HKFRS 3 Business combinations                             
                    HKAS 36 Impairment of assets                              
                    HKAS 38 Intangible assets                                 
                    HKAS 17 Leases                                            
                    HKAS 40 Investment property                               
                                                                              
            HKFRS 3 "Business combinations", HKAS 36 "Impairment of assets"   
    and HKAS 38 "Intangible assets"                                           
                                                                              
            HKFRS 3 applies to accounting for business combination for which  
    the agreement date is on or after 1 January 2005.  The early adoption of  
    HKFRS 3 and HKAS 36 from 1 January 2004 has resulted in the Group ceasing 
    annual amortisation of goodwill and to test for impairment annually at the
    cash generating unit level (unless an event occurs during the year which  
    requires the goodwill to be tested more frequently).  Discount on         
    acquisition is credited to the income statement in the period of          
    acquisition.  The transitional provisions of HKFRS 3 have required the    
    Group to eliminate the carrying amount of the accumulated amortisation by 
    approximately HK$3,036,000 with a corresponding entry to the cost of      
    goodwill.  In addition, the Group's negative goodwill at 1 January 2004 of
    HK$1,114,000 has been derecognised at 1 January 2004, with a corresponding
    adjustment to the Group's accumulated profits at 1 January 2004.  As a    
    result of this change in accounting policy, the profit of the Group for   
    the year has been increased by approximately HK$14,009,000.               
                                                                              
            HKAS 38 requires the Group to reassess the useful lives of its    
    intangible assets in accordance with the provisions of HKAS 38.  No       
    adjustment resulted from this reassessment.                               
                                                                              
            HKAS 17 "Leases" and HKAS 40 "Investment property"                
                                                                              
            HKAS 17 requires the finance lease methodology be used for        
    investment properties held under leases.  The standard requires the land  
    and buildings elements be considered separately when classifying a lease  
    of land and buildings.  Separate measurement of the land and buildings    
    elements is not required if the interest in both the land and buildings is
    classified as an investment property in accordance with HKAS 40 and the   
    fair value model is adopted.