10:17     SHINE HOLDINGS<08270> - Quarterly Results Announcement (2)          

                                                                              
    2. Turnover                                                               
                                                                              
    The principal activities of the Group are development of computer         
    software, resale of hardware, provision of system integration and         
    maintenance.                                                              
                                                                              
    Turnover represents the sales value of goods supplied and services        
    provided to customers, which excludes value-added and business            
    taxes and is stated after deduction of any goods returns and trade        
    discounts. The amount of each significant category of revenue             
    recognised in turnover during the year is as follows:                     
                                                                              
                                                         2005      2004       
                                                       RMB'000   RMB'000      
    Sales of software                                    2,193     1,677      
    Sales of hardware                                       96       187      
    Maintenance and other services fees                  1,186     1,171      
                                                        -------   -------     
                                                         3,985     3,035      
                                                        =======   =======     
                                                                              
    3. Taxation                                                               
                                                                              
                                                         2005      2004       
                                                       RMB'000   RMB'000      
    Current tax - Provision for PRC enterprise income tax                     
      Over-provision in respect of prior years            -           -       
                                                                              
    Deferred tax                                                              
      Origination and reversal of temporary differences   -           -       
                                                          -           -       
                                                                              
    Notes:                                                                    
    (i)  Hong Kong profits tax                                                
         No provision for Hong Kong profits tax has been made as the Group    
         has no estimated assessable profits for the quarters ended 31        
         March 2005 and 2004.                                                 
                                                                              
    (ii) PRC enterprise income tax                                            
         Fujian Shine Science Company Limited ("Fujian Shine Science"),       
         which is a subsidiary of the Company, and obtained the approval      
         from PRC tax authority on 26 February 2003, is exempted from PRC     
         enterprise income tax for the two years starting from its first      
         profit-making year after Fujian Shine Science became a wholly        
         foreign-owned enterprise, and is entitled to a 50% relief on PRC     
         enterprise income tax for the subsequent three years.                
         Accordingly, no provision for PRC enterprise income tax has been     
         made for the quarters ended 31 March 2005 and 2004.                  
                                                                              
         Shanghai Shine Science Company Limited ("Shanghai Shine              
         Science"), which is a subsidiary of the Company and operating        
         in Pudong, Shanghai, PRC is subject to PRC enterprise income tax,    
         before any relief or concession, at a rate of 15%. Shanghai Shine    
         Science, which obtained a certificate of "Software Enterprise"       
         on 10 April 2002, is exempted from PRC enterprise income tax         
         for the two years starting from its first profit-making year, and    
         is entitled to a 50% relief on PRC enterprise income tax for the     
         subsequent three years.   No provision for PRC enterprise income     
         tax has been made as Shanghai Shine Science has no estimated         
         assessable profits for the period ended 31 March 2005 and 2004.      
                                                                              
                                                                              
    4. Earnings per share                                                     
                                                                              
    (a) Basic earnings per share                                              
        The calculation of basic (loss)/earnings per share is based on the    
        loss attributable to shareholders of approximately RMB1,461,000       
        (2004: a loss of RMB1,116,000) and the weighted average of            
        473,000,000 (2004: 473,000,000) ordinary shares in issue during       
        the period.                                                           
                                                                              
    (b) Diluted earnings per share                                            
        Diluted earnings per share is not presented as there was no           
        dilutive potential ordinary shares in existence during the            
        quarters ended 31 March 2005 and 2004.