09:04 WUMART<08277> - Quarterly Results Announcement Wumart Stores, Inc. announced on 09/05/2005: (stock code: 08277 ) Year end date :31/12/2005 Currency :RMB Auditors' report :N/A 1st Quarterly Report Reviewed by :Audit Committee Important Note : This result announcement form only contains extracted information from and should be read in conjunction with the detailed results announcement of the issuer, which can be viewed on the GEM website at http://www.hkgem.com Unaudited Unaudited Current Last Corresponding Period Period from 01/01/2005 from 01/01/2004 to 31/03/2005 to 31/03/2004 RMB'000 RMB'000 Turnover : 981,760 666,885 Profit/(Loss) from Operations : 59,142 41,089 Finance cost : (159) (107) Share of Profit/(Loss) of Associates : 3,261 2,822 Share of Profit/(Loss) of Jointly Controlled Entites : N/A N/A Profit/(Loss) after Taxation & MI : 43,800 28,471 % Change Over the Last Period : +53.84% EPS / (LPS) Basic (in dollar) : RMB 0.15 RMB 0.11 Diluted (in dollar) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit (Loss) after ETD Items : 43,800 28,471 1st Quarter Dividends per Share : NIL NIL (specify if with other options) : N/A N/A B/C Dates for 1st Quarter Dividends : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : NIL B/C Dates for Other Distribution : N/A (bdi: both days inclusive) For and on behalf of Wumart Stores, Inc. Signature : Name : Chan Wai Lok Title : Qualified Accountant Responsibility statement The directors of the Company (the "Directors") as at the date hereof hereby collectively and individually accept full responsibility for the accuracy of the information contained in this results announcement form (the "Information") and confirm, having made all reasonable inquiries, that to the best of their knowledge and belief the Information are accurate and complete in all material respects and not misleading and that there are no other matters the omission of which would make the Information herein inaccurate or misleading.The Directors acknowledge that the Stock Exchange has no responsibility whatsoever with regard to the Information and undertake to indemnify the Exchange against all liability incurred and all losses suffered by the Exchange in connection with or relating to the Information. Remarks: 1. General The Company's shares have been listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited since 21st November, 2003. 2. Principal accounting policies The condensed financial statements have been prepared under the historical costconvention, as modified for the revaluation of certain investments in securities. The accounting polices adopted are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31st December,2004. 3. Earnings per share Basic earnings per share The calculation of earnings per share for the period ended 31 March 2005 is based on the net profit for the period of approximately RMB43,800,000 (2004: RMB28,471,000) and on the weighted average number of 283,987,000 (2004: 266,397,000) shares. 4. Tax The Company is located in the Shenzhen Special Economic Zone and is therefore subject to a corporate income tax rate of 15%. In accordance with the relevant income tax laws and regulations in the PRC, the Company was exempt from corporate income tax for two years commencing from its first year with assessable profits after deducting the tax losses brought forward, and was entitled to a 50% tax exemption for the next three years. The year ended 31 December 2003 was the fifth year since the Company's first year of operations with assessable profits and accordingly, the Company was entitled to a 50% exemption from corporate income tax for the year ended 31 December 2003. As a new and high technology enterprise, the Company had apply to the Shenzhen Administration of Taxation in 2004 for a 50% exemption from income tax and obtained the approval for three more years until the year ending 31 December 2006. Accordingly, the Company was entitled to a 50% exemption from corporate income tax for the year ended 31 December 2004. The branches of the Company are located in various cities within the PRC and are subject to a corporate income tax rate of 33% on their assessable profits during the period. No provision for Hong Kong Profits Tax has been made in the financial statements, as the Company has no assessable profits arising in Hong Kong for the period. 5. Earning per share The calculation of basic earnings per share for the three months ended 31 March 2005 is based on the profit attributable to shareholders of approximately RMB5,228,000 (2004 :RMB7,461,000) and the 467,100,000 (2004: 467,100,000) ordinary shares in issue during the period. Diluted earnings per share amount for the three months ended 31 March 2004 and 2005 have not been disclosed as no diluting events existed during the period. 6. Dividend The Directors do not recommend the payment of dividend for the three months ended 31 March 2005 (2004: Nil).