08:49     CHINA VELOCITY<00149> - Results Announcement (1)                    

    China Velocity Group Limited announced on 22/04/2005:                     
    (stock code: 00149 )                                                      
    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                           : 12,605             132,583           
    Profit/(Loss) from Operations      : (224,463)          (148,312)         
    Finance cost                       : (6,472)            (36,391)          
    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       : (235,515)          (170,207)         
    % Change over Last Period          : N/A       %                          
    EPS/(LPS)-Basic (in dollars)       : (0.85)             (0.61)            
             -Diluted (in dollars)     : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : (235,515)          (170,207)         
    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.  BASIS OF PREPARATION OF FINANCIAL STATEMENTS                          
                                                                              
    In preparing the financial statements, the directors of the Company have  
    given careful consideration to the liquidity position of the Group in     
    light of its net current liabilities of HK$39,183,000 as at               
    31st December 2004.  In particular, the Group has other borrowing of      
    HK$100,000,000 which is repayable on 30th June, 2005.  As disclosed in    
    note 38(a), subsequent to the balance sheet date, a subsidiary of the     
    Company entered into conditional sale and purchase agreements to dispose  
    of its entire 100% interest in another subsidiary for an aggregate cash   
    consideration of HK$130,000,000.  Under the terms of the agreements, the  
    completion date is 24th May, 2005 and the directors are confident that all
    conditions will be met by that date.  On this basis, the directors are    
    satisfied that the Group will be able to repay the other borrowing on     
    30th June, 2005 and meet in full its other financial obligations as they  
    fall due for the foreseeable future.  Accordingly, the financial          
    statements have been prepared on a going concern basis.                   
                                                                              
                                                                              
    2.  TURNOVER                                                              
                                                                              
    Turnover represents the net amounts received and receivables from outside 
    customers during the year as follows:                                     
                                                                              
                                                     2004        2003         
                                                  HK$'000     HK$'000         
      Property rental income                       12,605      12,517         
      Hotel operation                                   -     120,066         
                                                 ---------------------        
                                                   12,605     132,583         
                                                 ---------------------        
                                                                              
    An analysis of the Group's turnover and contribution to operating results 
    by business segment is presented below:                                   
                                                                              
    Year ended 31st December, 2004                                            
    ------------------------------                                            
                                                                              
                            Property                                          
                            sale and        Property                          
                            development     rental        Consolidated        
                            -----------     --------      ------------        
                            HK$'000         HK$'000       HK$'000             
                                                                              
    TURNOVER                                                                  
                                                                              
    External sales                    -       12,605           12,605         
                            -----------     --------        ----------