13:46     CKLIFE SCIENCES<08222> - Quarterly Reusults Announcement (2)        

    As mentioned in the 2004 Annual Report, the Group has already             
    early adopted HKFRS 3 "Business Combination", HKAS 36                     
    "Impairment of Assets" and HKAS 38 "Intangible Assets" for                
    its financial year ended 31 December 2004.                                
                                                                              
    For the period ended 31 March 2005, the adoption of the other             
    remaining HKFRSs has no material impact on the results of the             
    Group except the following:                                               
                                                                              
    - HKFRS 2 "Share-based Payment"                                           
    - HKAS 32 "Financial Instruments: Disclosure and Presentation" and        
    - HKAS 39 "Financial Instruments: Recognition and Measurement".           
                                                                              
    In accordance with HKFRS 2, the share options granted by the              
    Company after 7 November 2002 are measured at fair value at the           
    date of grant and recognized as expenses over the vesting                 
    period with the corresponding credit to an employee share-                
    based compensation reserve under equity.                                  
                                                                              
    With the adoption of HKFRS 2 retrospectively from                         
    1 January 2005, the accumulated losses for each of the                    
    two years as at 1 January 2005 and 2004 have been adjusted                
    upward by HK$7,563,000 and HK$1,666,000 respectively.  The                
    profit attributable to shareholders has been decreased by                 
    HK$512,000 for the period ended 31 March 2005 and HK$5,897,000            
    for the year ended 31 December 2004. The adjustment of the said           
    HK$5,897,000 will be reflected in the prior year comparative              
    figure in the full-year financial results for 2005.                       
                                                                              
    In accordance with HKAS 32 and HKAS 39, financial instruments             
    of the Group have been re-classified as either available-for-             
    sale or fair value through profit or loss. Change in fair                 
    value of an available-for-sale financial instrument would be              
    recognized directly in investment revaluation reserve while               
    such change for a financial instrument at fair value through              
    profit or loss would be recognized in the income statement.               
    The adoption of HKAS 32 and HKAS 39 prospectively has                     
    resulted in the increase in the accumulated losses of the                 
    Group by HK$420,000 as at 1 January 2005 and a decrease in the            
    profit attributable to shareholders by HK$4,008,000 for the               
    period ended 31 March 2005.                                               
                                                                              
                                                                              
    2. Earnings per share                                                     
                                                                              
    The calculations of the basic and diluted earnings per share              
    are based on the following data:                                          
                                                                              
                                           2005             2004              
                                        HK$'000          HK$'000              
                                                                              
    Profit for the period:                                                    
                                                                              
    Profit for calculating                                                    
    basic and diluted earnings                                                
    per share                               576              372              
                                    ===========      ===========              
                                                                              
    Number of shares:                                                         
                                                                              
    Weighted average number                                                   
    of ordinary shares used                                                   
    in the calculation of basic                                               
    earnings per share             6,407,381,600    6,407,120,684             
                                                                              
    Effect of dilutive                                                        
    potential ordinary shares                N/A        1,858,229             
                                   --------------   -------------             
    Weighted average number                                                   
    of ordinary shares used                                                   
    in the calculation of diluted                                             
    earnings per share                       N/A    6,408,978,913             
                                   ==============   =============             
                                                                              
    No diluted earnings per share is presented for the three months           
    ended 31 March 2005 because the exercise prices for the Company!|s        
    three lots of outstanding share options were higher than the              
    average market price of the shares of the Company and thus the            
    conversion of the share options would not have any dilutive effect        
    on the earnings per share.