13:26     EC-FOUNDER<00618> - Results Announcement (2)                        

                                                                              
    Prior to the adoption:                                                    
                                                                              
            goodwill arising on acquisitions after 1 January 2001 was         
    recognised in the consolidated balance sheet as an asset and amortised on 
    the straight-line basis over its estimated useful life subject to a       
    maximum 20 years;                                                         
            goodwill arising on acquisitions before 1 January 2001 was        
    eliminated against consolidated reserves in the year of acquisition;      
            goodwill was assessed for impairment at each balance sheet date;  
            impairment loss of goodwill was charged to the consolidated profit
    and loss account; and                                                     
            on disposal of subsidiaries, the gain or loss on disposal is      
    calculated by reference to the net assets at the date of disposal,        
    including the attributable amount of goodwill which remains unamortised   
    and any relevant reserves, as appropriate.  Any attributable goodwill     
    previously eliminated against consolidated reserves at the time of        
    acquisition is written back and included in the calculation of the gain or
    loss on disposal.                                                         
                                                                              
    Upon adoption:                                                            
                                                                              
            the Group ceased the amortisation of goodwill from 1 January 2004;
            the accumulated amortisation of goodwill arising on acquisitions  
    of subsidiaries as at 1 January 2004 has been eliminated with a           
    corresponding decrease in the respective cost of goodwill at that date;   
            from the year ended 31 December 2004 onwards, goodwill is tested  
    annually for impairment, as well as when there are indications of         
    impairment;                                                               
            upon impairment of goodwill previously eliminated against         
    consolidated reserves, the impairment loss is not charged to the          
    consolidated profit and loss account; and                                 
            on disposal of subsidiaries, the gain or loss on disposal is      
    calculated by reference to the net assets at the date of disposal,        
    including the attributable amount of goodwill which remains unamortised   
    and any relevant reserves, as appropriate.  Any attributable goodwill     
    previously eliminated against consolidated reserves at the time of        
    acquisition is not recognised in the consolidated profit and loss account 
    upon disposal.                                                            
                                                                              
    HKFRS 3 is prospectively applied and the effect of its adoption on these  
    financial statements in respect of the year ended 31 December 2004 is     
    summarised below:                                                         
                                                                              
            the accumulated amortisation of goodwill arising on acquisition of
    subsidiaries as at 1 January 2004 of approximately HK$321,000 has been    
    eliminated with a corresponding decrease in the cost of goodwill as at    
    that date; and                                                            
            the impairment loss of goodwill remaining eliminated against      
    consolidated contributed surplus of approximately HK$48,500,000 was       
    transferred to consolidated accumulated losses as a movement in reserves  
    and was not charged to the consolidated profit and loss account.          
                                                                              
    The Group has already commenced an assessment of the impact of other new  
    HKFRSs but is not yet in a position to state whether these new HKFRSs     
    would have a significant impact on its results of operations and financial
    position.                                                                 
                                                                              
    2.      TURNOVER                                                          
                                                                              
                                    2004            2003                      
                                    HK$'000         HK$'000                   
                                                    (Restated)                
    Continuing operations           1,200,752       444,633                   
    Discontinued operations         56,798          180,339                   
                                    ------------    ------------              
                                    1,257,550       624,972                   
                                    ===========     ============              
                                                                              
    3.      PROFIT / (LOSS) FROM OPERATIONS                                   
                                                                              
                                    2004            2003                      
                                    HK$'000         HK$'000                   
                                                    (Restated)                
    Continuing operations           3,454           (1,390)                   
    Discontinued operations         1,839           (24,827)                  
                                    -----------     ------------              
                                    5,293           (26,217)                  
                                    ===========     ===========