09:28     MUDAN AUTO<08188> - Quarterly Results Announcement (2)              

                                                                              
    2. Revenue and distribution                                               
                                                                              
    The Company is primarily engaged in a single business of                  
    automobile manufacture and sales in the PRC.  Revenue                     
    represents income arising from the sales of automobiles                   
    net of sales tax and value added tax.                                     
                                                                              
    The Company's revenue from sales by geographical region                   
    is as follows:                                                            
                                                                              
                                       For the three months                   
                                       ended 31 March                         
                                     2005             2004                    
                                     (RMB)            (RMB)                   
                                                                              
    Sales of automobiles:                                                     
      The PRC                    109,134,276      155,012,838                 
      Overseas market              5,081,773       15,022,149                 
                                                                              
    Total                        114,216,049      170,034,987                 
                                                                              
    3. Income tax (loss)/expenses                                             
                                                                              
    Income tax represents the provision for PRC income tax.                   
    The provision for PRC income tax is calculated at the                     
    statutory tax rate of 33% (2004: 33%) of the estimated                    
    assessable income for the quarterly results as determined                 
    in accordance with the relevant income tax rules and                      
    regulations of the PRC.                                                   
                                                                              
    4. Basic earnings (loss)/profit per share                                 
                                                                              
    For the three months ended 31 March 2005, the calculation                 
    of earnings per share is based on the unaudited loss                      
    attributable to shareholders of approximately RMB6,527,396                
    (2004: the unaudited net loss was RMB2,079,326) divided                   
    by the weighted average number of shares in issue of the                  
    Company during the period.  For the three months ended                    
    31 March 2005, the weighted average number of shares in                   
    issue is 284,800,000 (2004: 284,800,000).  No diluted                     
    earnings per share is presented as there were no dilutive                 
    potential ordinary shares outstanding.                                    
                                                                              
    At the request of Changchun Da Xing Pharmaceutical Company Limited,       
    trading in its H shares has been suspended with effect from 9:30 a.m.     
    today (3/5/2005) pending release of an announcement in relation to matters
    which may be of a price sensitive nature.