09:03 PICC P&C<02328> - Results Announcement (3) 4. EARNINGS PER SHARE The calculations of basic earnings per share for the year ended 31 December 2004, the period from 7 July to 31 December 2003 and the year ended 31 December 2003, are based on: 7 July to Pro forma 2004 31 December 2003 2003 RMB million RMB million RMB million Earnings Net profit attributable to shareholders used in the basic earnings per share calculation 208 107 1,451 Number of shares 7 July to Pro forma 31 December 2004 2003 2003 Shares million million million Weighted average number of ordinary shares used in the basic earnings per share calculation 11,142 9,000 8,482 --------------------------------------- The pro forma basic earnings per share for the year ended 31 December 2003 was computed by dividing the weighted average number of ordinary shares in issue during the year, and after taking into account the issue of 8,000 million ordinary shares upon the incorporation of the Company, as if such shares had been outstanding since 1 January 2003. The Company had no dilutive potential shares outstanding from 1 January 2003. 5. DIVIDENDS 7 July to Pro forma 2004 31 December 2003 2003 RMB million RMB million RMB million Special - 650 650 ----------------------------------------------------- Pursuant to the Reorganisation and the "Provisional Regulation Relating to Corporate Reorganisation of Enterprises and Related Management of State- owned Capital and Financial Treatment," which was issued by the PRC Ministry of Finance and became effective on 27 August 2002, the Company agreed to distribute special dividends equivalent to the net profit arising from the commercial insurance business injected into the Company pursuant to the Reorganisation for the period from 1 October 2002 (being the first day after the effective date of the Reorganisation) to 6 July 2003 (being the day immediately prior to the date of its incorporation) determined in accordance with PRC GAAP in two installments as follows: - The Company distributed RMB5.4 million on 28 October 2003 in cash, representing the net profit under PRC GAAP for the three-month period ended 31 December 2002, to PICC Holding Company; and - During the year, the Company distributed RMB644 million in cash to PICC Holding Company, representing the net profit for the period from 1 January 2003 to 6 July 2003 calculated as 187/365 of the net profit for 2003 under PRC GAAP. For more details, please refer to the press announcement today.