08:56     REX FINANCIAL H<00555> - Results Announcement (1)                   

    REXCAPITAL Financial Holdings Limited announced on 28/04/2005:            
    (stock code: 00555 )                                                      
    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                           : 169,137            324,693           
    Profit/(Loss) from Operations      : (67,890)           13,118            
    Finance cost                       : (13,930)           (7,109)           
    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       : (77,674)           4,031             
    % Change over Last Period          : N/A       %                          
    EPS/(LPS)-Basic (in dollars)       : (0.0259)           0.0013            
             -Diluted (in dollars)     : N/A                N/A               
    Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
    Profit/(Loss) after ETD Items      : (77,674)           4,031             
    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.      IMPACT OF RECENTLY ISSUED HONG KONG FINANCIAL REPORTING STANDARDS 
    AND HONG KONG ACCOUNTING STANDARDS                                        
                                                                              
    The Hong Kong Institute of Certified Public Accountants ("HKICPA") has    
    issued a number of new and revised Hong Kong Financial Reporting Standards
    ("HKFRSs") and Hong Kong Accounting Standards ("HKASs") which are         
    effective for accounting periods beginning on or after 1 January 2005. The
    Group has not early adopted these new and revised HKFRSs and HKASs in the 
    accounts for the year ended 31 December 2004 except for HKFRS No. 5 "Non- 
    current Assets Held for Sale and Discontinued Operations" ("HKFRS 5"). The
    Group has recently commenced an assessment of the impact of the remaining 
    new and revised HKFRSs and HKASs but is not yet in a position to state    
    whether these new and revised HKFRSs and HKASs would have a significant   
    impact on its results of operations and financial position.               
                                                                              
    The HKFRS 5 now requires an operation to be classified as discontinued    
    when the criteria to be classified as held for sale have been met or the  
    Group has disposed of the operation. Held for sale is when the carrying   
    amount of an operation will be recovered principally through a sale       
    transaction and not through continuing use.                               
                                                                              
    The adoption of HKFRS 5 results in a change in accounting policy on the   
    recognition of a discontinued operation. On 12 January 2004, the Group    
    entered into a conditional sale and purchase agreement with REXCAPITAL    
    Group Limited regarding the disposal of the entire issued share capital of
    REXCAPITAL Financial Group Limited ("RFG").  This transaction has not been
    completed up to the date of the accounts.  RFG and its subsidiaries (     
    together the "RFG Group") were classified as discontinuing operations in  
    prior year. However, in the opinion of the directors of the Company, the  
    completion of the transaction is subject to the outcome of the updated due
    diligence review conducted by the purchaser, and therefore the RFG Group  
    is no longer able to meet the new criteria for classifying as discontinued
    operations under the HKFRS 5, as the recognition criteria become stricter.
    The adoption of HKFRS 5 has had no material financial effect on the       
    Group's results for current and prior years. The presentation in the      
    current year's accounts has been modified in order to conform with the    
    requirements of this HKFRS. Comparative amounts have been restated in     
    order to achieve a consistent presentation.