08:55     NANJING PANDA<00553> - Results Announcement (2)                     

                                                                              
    2.      Prior year adjustment in respect of change in accounting policy of
    an associate                                                              
                                                                              
    During the year, a substantial associate of the Company, ENC changed its  
    accounting policy on revenue recognition of contract sales.  As a result, 
    ENC's shareholders' equity as at 31 December 2004 and 2003 were decreased 
    by approximately RMB66,924,000 and RMB51,966,000 respectively.  Profit    
    before taxation and taxation for the year ended 31 December 2003 were     
    decreased by RMB17,607,000 and RMB2,649,000 respectively.  The respective 
    adjustment on the Group's share of 27% of the restated results of the     
    associate resulted in an increase in accumulated losses of the Group as at
    31 December 2004 and 2003 of RMB18,069,000 and RMB14,031,000 respectively.
     Profits before taxation and taxation for the year ended 31 December 2003 
    have been restated with the result of a reduction of RMB4,753,000 and RMB 
    715,000 respectively.                                                     
                                                                              
    For more details, please refer to the press announcement today.