13:30     FOUNDER HOLD<00418> - Results Announcement (2)                      

                                                                              
    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$784,000 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$65,335,000 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.      LOSS FROM OPERATING ACTIVITIES                                    
                                                                              
    The Group's loss from operating activities is arrived at after charging / 
    (crediting) :                                                             
                                                    2004            2003      
                                                    HK$'000         HK$'000   
    Amortisation of goodwill                        -                  784    
    Impairment of goodwill                          -               2,528     
    Depreciation                                    20,692          17,110    
    Impairment of fixed assets                      -               3,777     
    Write off of fixed assets                       2,383           -         
    Loss on disposal of fixed assets                777             210       
    Loss/(gain) on disposal of subsidiaries         (3,255)         13,260    
    Loss/(gain) on partial disposal of a subsidiary     765         (3,496)   
    Gain on disposal of a jointly-controlled entity (4,329)         -         
    Gain on deemed disposal of a subsidiary          (6,503)        -         
    Write back of other receivables                 (11,278)        -         
                                                    ========================  
                                                                              
    3.      EARNINGS / (LOSS) PER SHARE                                       
                                                                              
    The calculation of basic earnings /(loss) per share is based on the net   
    loss attributable to shareholders for the year ended 31 December 2004 of  
    approximately HK$27,183,000 (2003: net profit of approximately HK$7,215,  
    000), and the weighted average of approximately 1,123,800,000 (2003: 1,   
    123,800,000) ordinary shares in issue during the year.                    
                                                                              
    Diluted earnings / (loss) per share for the years ended 31 December 2004  
    and 2003 have not been calculated as the impact of the outstanding share  
    options was anti-dilutive.