08:48     HON PO GROUP<00228> - Results Announcement (1)                      

    Hon Po Group (Lobster King) Limited announced on 22/04/2005:              
    (stock code: 00228 )                                                      
    Year end date: 31/12/2004                                                 
    Currency: HKD                                                             
    Auditors' Report: Modified                                                
                                                                              
                                                            (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                           : 266,120            507,917           
    Profit/(Loss) from Operations      : (35,732)           32,224            
    Finance cost                       : (1,515)            (3,473)           
    Share of Profit/(Loss) of                                                 
      Associates                       : N/A                N/A               
    Share of Profit/(Loss) of                                                 
      Jointly Controlled Entities      : N/A                N/A               
    Profit/(Loss) after Tax & MI       : (39,988)           31,223            
    % Change over Last Period          : N/A       %                          
    EPS/(LPS)-Basic (in dollars)       : (0.0635)           0.0496            
             -Diluted (in dollars)     : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : (39,988)           31,223            
    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       SIGNIFICANT ACCOUNTING POLICIES                                   
                                                                              
    Impact of recently issued Hong Kong Financial Reporting Standards ("      
    HKFRSs")                                                                  
                                                                              
    The Hong Kong Institute of Certified Public Accountants ("HKICPA") has    
    issued a number of new Hong Kong Financial Reporting Standards and Hong   
    Kong Accounting Standards, herein collectively referred to as the new     
    HKFRSs, which are generally 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. The Group
    has already commenced assessment of the impact of these 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.   
                                                                              
    The financial statements have been prepared in accordance with generally  
    accepted accounting principles in Hong Kong and comply with Statements of 
    Standard Accounting Practice issued by the Hong Kong Institute of         
    Certified Public Accountants ("HKICPA") and the disclosure requirements of
    the Hong Kong Companies Ordinance. The financial statements also comply   
    with the applicable disclosure provisions of the Rules Governing the      
    Listing of Securities on The Stock Exchange of Hong Kong Limited.         
                                                                              
    2.      GAIN ARISING FROM DE-CONSOLIDATION OF SUBSIDIARIES                
                                                                              
    i)      Gain arising from disposal of subsidiaries                        
                                                                              
    During the year, the entire issued shares of a wholly-owned subsidiary of 
    the Company were transfer to independent third parties. Gain of HK$282,000
    arose from the de-consolidation of the subsidiary in the financial        
    statements for the year ended 31 December 2004.                           
                                                                              
    In previous year, a wholly-owned subsidiary of the Company entered into   
    sale and purchase agreements with independent third parties to dispose of 
    four wholly-owned subsidiaries. Gain of HK$41,397,000 arose on the de-    
    consolidation of these four subsidiaries in the financial statements for  
    the year ended 31 December 2003.                                          
                                                                              
    ii)     Gain arising from liquidation of a subsidiary                     
                                                                              
    Gain of HK$7,170,000 (2003: gain of HK$1,197,000) arose from the de-      
    consolidation of a wholly-owned subsidiary, which was under liquidation   
    during the year.