08:55     NANJING PANDA<00553> - Results Announcement (1)                     

    Nanjing Panda Electronics Company Limited announced on 28/04/2005:        
    (stock code: 00553 )                                                      
    Year end date: 31/12/2004                                                 
    Currency: RMB                                                             
    Auditors' Report: Qualified                                               
                                                                              
                                                            (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                           : 664,640            3,866,798         
    Profit/(Loss) from Operations      : (33,024)           128,087           
    Finance cost                       : (49,983)           (77,447)          
    Share of Profit/(Loss) of                                                 
      Associates                       : 276,815            111,989           
    Share of Profit/(Loss) of                                                 
      Jointly Controlled Entities      : N/A                N/A               
    Profit/(Loss) after Tax & MI       : 65,646             97,413            
    % Change over Last Period          : -32.61    %                          
    EPS/(LPS)-Basic (in dollars)       : 0.10               0.15              
             -Diluted (in dollars)     : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : 65,646             97,413            
    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 Annual                                                      
      General Meeting                  : To Be Announced                      
    Other Distribution for             : N/A                                  
      Current Period                                                          
                                                                              
    B/C Dates for Other                                                       
      Distribution                     : N/A                                  
                                                                              
    Remarks:                                                                  
                                                                              
                                                                              
    1.      Qualified audited opinion                                         
                                                                              
    The auditors' report on the Group's and the Company's financial statements
    for the year 31 December 2004 stated that the evidence available to them  
    was limited in the following respect:                                     
                                                                              
         1. On 10 March 2005, the People's Court in Nanjing ordered the       
    Company to surrender its equity interests in two subsidiaries of the Group
    and the transfer of the equity was completed on the next day.  As the     
    Company was not able to access their books and records, or to obtain or   
    prepare their financial statements, the financial statements of these     
    subsidiaries have not been consolidated.  There were no other satisfactory
    audit procedures the auditors could adopt to ascertain with reasonable    
    accuracy the impact on the financial position and result of the Group     
    caused by the exclusion of these two subsidiaries from the consolidated   
    financial statements.                                                     
                                                                              
         2. Included in the balance sheets of the Company and the Group at 31 
    December 2004 were investments in two unconsolidated subsidiaries referred
    to paragraph 1 above with a total carrying value of approximately RMB121, 
    017,000 and a total amount of approximately RMB852,551,000 due from these 
    two subsidiaries.  The above carrying value of the investments in these   
    two subsidiaries are stated net of a provision of approximately RMB84,033 
    ,000 made by the directors in the current year.  The auditors are unable  
    to obtain relevant and reliable financial information of these two        
    subsidiaries and there were no other satisfactory audit procedures that   
    they could adopt to assess the carrying value of the investments in these 
    two subsidiaries and amount due from them.  The auditors therefore unable 
    to satisfy themselves as to whether the carrying value of the investments 
    in these two subsidiaries and the amount due from them are fairly and     
    properly stated in the financial statements.                              
                                                                              
         3. Subsequent to the balance sheet date, the People's Court in       
    Nanjing has ordered the Company to surrender it's equity interests in the 
    two unconsolidated subsidiaries referred to paragraph 1 above as          
    settlement of an overdue debt.  The information available was not         
    sufficient for the auditors to fully understand the background and        
    circumstances leading to this event.  Accordingly, the auditors are unable
    to assess the impact, if any, the event may have on the financial         
    statements and the adequacy of the information disclosed.                 
                                                                              
    Except for any adjustments that might have been found to be necessary had 
    we been able to obtain sufficient evidence relating to the matters        
    referred to above, in the auditors' opinion, the financial statements give
    a true and fair view of the state of affairs of the Company and the Group 
    as at 31 December 2004 and of profit and cash flows of the Group for the  
    year then ended and have been properly prepared in accordance with the    
    disclosure requirements of the Hong Kong Companies Ordinance.