09:16     GDC<08271> - Quarterly Results Announcement (2)                     

       The Company had in aggregate 22,631,615 share options                  
       outstanding as at 31 December 2004.  In accordance with the            
       new HKFRSs, the fair value of these share options at grant             
       date should have been amortised over the relevant vesting              
       periods to the income statement, and this treatment should             
       be applied retrospectively.  However, on 13 January 2005,              
       Shougang Concord Grand (Group) Limited, now the holding                
       company of the Company, issued an offer document in                    
       respect of a voluntary conditional cash offer to cancel all            
       the outstanding options of the Company (the "Cash Offer").             
       As at 31 March 2005, all the share options granted have been           
       cancelled in accordance with the Cash Offer.  There will not           
       be any impact of the fair value of the share options on the            
       income statement of the first quarter of 2005 and, in view             
       of such, no prior year adjustment is done to the accumulated           
       losses brought forward nor the results for the first quarter           
       of 2004.                                                               
                                                                              
       The accounting policies and methods of computation used in             
       preparing the unaudited consolidated results for the three             
       months ended 31 March 2005 are consistent with those used              
       in the audited financial statements for the year ended 31              
       December 2004.                                                         
                                                                              
    2. Loss per share                                                         
       The calculation of the basic loss per share is based on the            
       net loss for the period of approximately HK$7,037,000                  
       (2004: HK$10,645,000) and the weighted average of 800,820,000          
       shares (2004: 780,000,000 shares) in issue during the period.          
                                                                              
       No diluted loss per share has been calculated for the period           
       ended 31 March 2005 as the exercise of the share options would         
       result in a decrease in the loss per share.  Diluted loss per          
       share was not presented for the period ended 31 March 2004             
       because there was no potential ordinary shares in existence            
       for that period.