09:54     LANG CHAO INTL<08141> - Quarterly Results Announcement (2)          

                                                                              
    In 2005, the Group has adopted all HKFRSs pertinent to its                
    operations.  The applicable HKFRSs are set out below:                     
                                                                              
    HKAS 1  Presentation of Financial Statements                              
    HKAS 2  Inventories                                                       
    HKAS 7  Cash Flow Statements                                              
    HKAS 8  Accounting Policies, Changes in Accounting Estimates and          
            Errors                                                            
    HKAS 10 Events after Balance Sheet Date                                   
    HKAS 16 Property, Plant and Equipment                                     
    HKAS 17 Leases                                                            
    HKAS 18 Revenue                                                           
    HKAS 19 Employee Benefits                                                 
    HKAS 21 The Effects of Changes in Foreign Exchange Rates                  
    HKAS 24 Related Party Disclosures                                         
    HKAS 27 Consolidated and Separate Financial Statements                    
    HKAS 32 Financial Instruments: Disclosure and Presentation                
    HKAS 33 Earnings Per Share                                                
    HKAS 36 Impairment of Assets                                              
    HKAS 37 Provisions, Contingent Liabilities and Contingent Assets          
    HKAS 39 Financial Instruments: Recognition and Measurement                
    HKFRS 1 First-time Adoption of Hong Kong Financial Reporting              
            Standards                                                         
    HKFRS 2 Share-based Payments                                              
                                                                              
    The adoption of the standard has had no material effect on the            
    result for the current or prior accounting period.                        
                                                                              
                                                                              
    2. EARNINGS PER SHARE                                                     
                                                                              
    The calculation of the basic and diluted earnings per share is            
    based on the following data:                                              
                                                                              
                                           Three months ended                 
                                             2005         2004                
                                          HK$'000      HK$'000                
    Earnings                                                                  
    Earnings for the purposes of                                              
      basic and diluted earnings                                              
      per share (net profit for                                               
      the period)                           5,785       10,211                
                                            =====       ======                
                                                                              
    Number of shares                                                          
    Weighted average number of                                                
      ordinary shares for the                                                 
      purpose of basic earnings                                               
      per share                            400,000      300,000               
    Effect of dilutive share option         14,243          --                
                                           -------      -------               
    Weighted average number of                                                
      ordinary shares for the                                                 
      purpose of diluted earnings                                             
      per share                            414,243      300,000               
                                           =======      =======               
                                                                              
    No diluted earnings per share has been disclosed as there were            
    no diluting events existed during the three months ended                  
    31 March 2004.