09:10     SHANGHAI FUDAN<08102> - Quarterly Results Announcement (2)          

                                                                              
    The adoption of new HKFRSs does not result in substantial changes         
    to the Group's accounting policies except certain presentations           
    and disclosures of the financial statements would be affected in          
    the 2005 half yearly and annual reports.                                  
                                                                              
    2. TURNOVER                                                               
                                                                              
    Turnover represents the invoiced value of goods sold, after allowance     
    for returns and trade discounts and the value of services rendered.       
                                                                              
    3. TAX                                                                    
                                                                              
    For the period ended 31 March 2005, the Company and its subsidiaries      
    have no assessable income and no provision for income tax has been        
    made accordingly.                                                         
                                                                              
    The Group has tax losses, primarily incurred by the Company, of           
    RMB6,821,000 (2004: RMB9,737,000) that are available for offsetting       
    against future taxable profits.  Deferred tax assets have not been        
    recognised in respect of these losses as it is uncertain as to whether    
    the Company will be able to fully utilise the unused tax losses which     
    can only be carried forward for a maximum period of five years.           
                                                                              
    4. EARNINGS/(LOSS) PER SHARE                                              
                                                                              
    The calculation of basic earnings/(loss) per share for the three months   
    ended 31 March 2005, is based on the following data:                      
                                                                              
                                         For the three months                 
                                            ended 31 March                    
                                          2005          2004                  
                                        RMB'000       RMB'000                 
                                                                              
    PROFIT/(LOSS)                                                             
    Net profit/(loss) attributable                                            
      to shareholders                    (2,801)        2,800                 
                                          =====         =====                 
                                                                              
    SHARES                                                                    
    Number of shares in issue       624,354,000   624,354,000                 
                                    ===========   ===========                 
                                                                              
    Diluted earnings/(loss) per share amounts for the current and comparative 
    periods have not been presented because no diluting events existed during 
    these periods.