08:50     JILIN CHANGLONG<08049> - Quarterly Results Announcement (2)         

                                                                              
    The accounting policies adopted in preparing the unaudited                
    consolidated results for the period under review are consistent           
    with those followed in the Company's 2004 annual report.                  
                                                                              
    2. Turnover                                                               
                                                                              
    The Group's turnover comprises the invoiced value of merchandise          
    sold net of Value-Added Tax and after allowances for returns              
    and discounts.                                                            
                                                                              
    3. Taxation                                                               
                                        Three months ended 31 March           
                                                2005     2004                 
                                              RMB'000  RMB'000                
                                                                              
    PRC income tax                               850      1,041               
                                              ========  ========              
                                                                              
    The Group did not have assessable profits arising in Hong Kong            
    during the three months ended 31 March 2005.(2004: Nil). The PRC          
    income tax has been provided at the rate of 33% (2004:33%)                
    on the estimated assessable profit for the period.                        
                                                                              
    The Group did not have any significant unprovided deferred tax            
    liabilities for the three months ended 31 March 2005 (2004:Nil).          
                                                                              
    4. Earnings per share                                                     
                                                                              
    The calculation of basic earnings per share for the three months          
    ended 31 March 2005 is based on the unaudited profit                      
    attributable to shareholders of approximately  RMB 1,742,000              
    (2004:RMB 2,113,000) and on the weighted average number of                
     560,250,000 (2004:560,250,000) shares in issue.                          
                                                                              
    There is no diluted earnings per share because there were no dilutive     
    potential shares in existence during the relevant periods.                
                                                                              
    5. Dividends                                                              
                                                                              
    The Board does not recommend the payment of an interim dividend for the   
    three months ended 31 March 2005 (2004:nil).