13:50     RENREN HOLDINGS<00059> - Results Announcement (2)                   

                                                                              
    (II)  Analysis of profit / (loss) from continuing operations              
                                                                              
                                                                              
    Online operations   Offline operations   Investment holding               
    2004    2003        2004    2003         2004    2003                     
    HK$'000 HK$'000     HK$'000 HK$'000    HK$'000 HK$'000                    
                                                                              
                                                                              
    Trading and financial  Consolidated                                       
    2004    2003           2004      2003                                     
    HK$'000 HK$'000        HK$'000   HK$'000                                  
    ----------------------------------------------------------------------    
    Segment revenue:                                                          
                                                                              
    Sales to external customers                                               
    300       -         -        666        16       6                        
    9,393   -           9,709     672                                         
    ------------------------------------------------------------------------- 
                                                                              
    Segment results                                                           
    (1,148) (8,993)     (603) (28,172)    (40,963) (60,865)                   
    (2,799)  -          (45,513) (98,030)                                     
    ========================================================================= 
                                                                              
    Interest and unallocated gains                                            
         67      30                                                           
    Unallocated expenses                                                      
        (287) (1,423)                                                         
                                                                              
       -------- -------                                                       
    Loss from operating activities                                            
              (45,733)(99,423)                                                
    Finance costs:                                                            
                                                                              
    Segment finance costs                                                     
    -        -          -       (8)        (391)   (1,346)                    
    (5)      -         (396) (1,354)                                          
                      -------- -------                                        
    Loss before tax                                                           
                       (46,129)(100,777)                                      
    Tax                                                                       
                       (1,359)      (8)                                       
                                                                              
                        -------- -------                                      
    Loss before minority interests                                            
                        (47,488)(100,785)                                     
    Minority interests                                                        
                            1       -                                         
                                                                              
                          -------- -------                                    
    Net loss attributable to shareholders                                     
                         (47,487)(100,785)                                    
                         =================                                    
                                                                              
    (III)                                                                     
    The Group's loss from operating activities is arrived at after charging:  
                                                                              
                                                                              
                                                     2004        2003         
                                                     HK$'000     HK$'000      
                                                                              
    Cost of inventories sold and services provided     1,617         516      
    Depreciation                                         150         117      
    Deposits written off                                 400          93      
    Amortization of goodwill                           2,692      39,782      
    Impairment of goodwill                             2,921      38,552      
    Loss on disposal of fixed assets                      27         513      
    Loss on disposal of subsidiaries                       -       1,546      
    Unrealized holding loss on investment in securities   80         526      
    Loss on disposal of trading securities            13,665         232      
    Investment securities written off                      -         200      
    Impairment of investment securities               16,029           -      
    Provision for diminution in investment in securities 550           -      
    Compensation for loss in trading securities            -         809      
    Minimum lease payments under operating lease in respect of                
      land and buildings                                 282         604      
      equipment                                            -           2      
    Bad debts written off                              6,129       6,074      
    Provision for doubtful debts                       6,042           -      
    Deficit on revaluation of investment property        643           -      
    Preliminary expenses                                  26           -      
    Auditor's remuneration                               320         320      
    Staff costs, including directors' emoluments:                             
      Wages and salaries                               5,555       3,997      
      Pension contributions                               35         101      
                                                    ---------   ---------     
                                                       5,590       4,098      
                                                    ---------   ---------