10:04     TIANJINTIANLIAN<08290> - Quarterly Results Announcement (2)         

                                                                              
    In preparing the quarterly financial report, the directors of the         
    Company have given careful consideration to the future liquidity of       
    the Group in light of the Group having net current liabilities of         
    RMB12,495,000 as at 31 March 2005 and having incurred loss during the     
    period then ended.                                                        
                                                                              
    The directors are currently liaise with one of the substantial            
    shareholder to further develop the gas supplier business of the Group.    
    The directors are expecting the financial position of the Group will      
    be improved after implementing the gas supplier development plan.         
    Furthermore, the directors of the Company are currently taking active     
    steps to secure a one year bank borrowing of RMB25,000,000 to meet its    
    current working capital requirement. Provided that the gas development    
    plan is successfully implemented and the bank borrowing can be            
    secured, the directors are satisfied that the Group will be able to       
    meet in full its financial obligations as they fall due for the           
    foreseeable future. Accordingly, the quarterly financial report has       
    been prepared on a going concern basis.                                   
                                                                              
    3.      PRINCIPAL ACCOUNTING POLICIES                                     
                                                                              
    The quarterly financial report has been prepared under the historical     
    cost convention and the accounting policies adopted are consistent        
    with those followed in the preparation of the Group's annual financial    
    statements for the year ended 31 December 2004.                           
                                                                              
    In the current quarterly period, the Group has adopted, for the first     
    time, a number of new and revised applicable Hong Kong Accounting         
    Standards and Hong Kong Financial Reporting Standards ("HKFRSs")          
    (hereinafter collectively referred to as "new HKFRSs") issued by Hong     
    Kong Institute of Certified Public Accountants, which are effective       
    for accounting periods beginning on or after 1 January 2005. The          
    adoption of these new HKFRSs have had no material effect in the prior     
    or current accounting periods.                                            
                                                                              
    4.      LOSS PER SHARE                                                    
                                                                              
    The calculation of the basic loss per share is based on the net loss      
    attributable to equity holders of the parent for the period of            
    RMB4,223,000 (three months ended 31 March 2004: RMB1,446,000) and the     
    number of 995,000,000 shares (2004: weighted average number of            
    968,626,373 shares) in issue during the period.                           
                                                                              
    No diluted loss per share has been presented as there were no             
    potential ordinary shares during the three months ended 31 March 2005     
    and 2004.