09:49     KANSTAR ENPAPER<08011> - Quarterly Results Announcement (2)         

                                                                              
    In 2004, the HKICPA issued a number of new or revised Hong Kong           
    Accounting Standards and Hong Kong Financial Reporting Standards          
    ("new HKFRSs") which are effective for accounting periods beginning       
    on or after 1 January 2005. The adoption of the new HKFRSs had no         
    material impact on the Group's results of operations and financial        
    position.                                                                 
                                                                              
    The accounting policies adopted in preparing the unaudited                
    consolidated results for the three months ended 31 March 2005 and         
    2004 are consistent with those followed in the preparation of the         
    Group's annual financial statements for the year ended 31 December        
    2004. The consolidated results are unaudited but have been reviewed       
    by the Company's audit committee.                                         
                                                                              
    2. Earnings per share                                                     
                                                                              
    The calculations of the basic and diluted earnings per share are          
    based on the following data:                                              
                                                                              
                                                   For the three month        
                                                      ended 31 March          
                                                  2005            2004        
                                                   HK$             HK$        
    Profits for the period                                                    
                                                                              
    Profits for calculating basic                                             
     and diluted earnings per share             166,685         152,887       
                                                                              
    Number of shares                                                          
                                                                              
    Weighted average number of                                                
     ordinary shares used in the calculation                                  
     of basic earnings per share           4,000,000,000    4,000,000,000     
                                                                              
    Effect of dilutive potential                                              
     ordinary share                          182,709,095       185,985,037    
                                                                              
    Weighted average number of                                                
     ordinary shares used in the calculation                                  
     of diluted earnings per share          4,182,709,095    4,185,985,037