09:11     BEIDA JADE BIRD<08095> - Quarterly Results Announcement (2)         

                                                                              
    In the first quarter of 2005, the Group has adopted, for the first        
    time, a number of new and revised Hong Kong Financial Reporting           
    Standards and Hong Kong Accounting Standards, herein collectively         
    referred to as the new HKFRSs, which are generally effective for the      
    accounting periods beginning on or after 1 January 2005.                  
                                                                              
    The major effects of the new HKFRSs, which have had a material            
    impact on the Unaudited Quarterly Results, are set out below:             
                                                                              
    The adoption of HKAS 39 "Financial Instruments: Recognition and           
    Measurement" requires the Group's long term investment be classified      
    as available-for-sale financial asset which is measured at fair value     
    instead of measuring at historical cost according to the Group's          
    accounting policy adopted before. The fair value amount is estimated      
    using the market information and valuation methodologies considered       
    appropriate. However, considerable judgement is required to interpret     
    market data to develop the estimates of fair value amount.                
    Accordingly, the estimates made by the Group are not necessarily          
    indicative of the amounts the Group could realize in a current market     
    exchange. The use of different market assumptions and/or estimation       
    methodologies may have a material effect on the estimated fair value      
    amount. The effect of adopting HKAS 39 was to increase the                
    consolidated investment revaluation reserve as at 1 January 2005 by       
    approximately RMB286 million. As at 31 March 2005, the fair value of      
    the long term investment was decreased by approximately RMB60 million     
    as compared to that on 1 January 2005.                                    
                                                                              
    The adoptions of HKFRS 3 "Business Combinations" and HKAS 36              
    "Impairment of Assets" have resulted in ceasing goodwill amortisation     
    and to test for impairment annually at the cash generating unit           
    level (unless an event occurs during the year which requires the          
    goodwill to be tested more frequently) from 1 January 2005. The           
    transitional provisions of HKFRS 3 have required the Group to             
    eliminate the carrying amount of accumulated amortisation of              
    RMB17,342,000 with a corresponding decrease in goodwill.                  
                                                                              
    2. (Loss)/earnings per share                                              
                                                                              
    The calculation of loss per share of RMB0.5 cents (2004: earnings per     
    share of RMB25.5 cents) for the three months ended 31 March 2005 was      
    based on loss attributable to shareholders of RMB5,607,000 (2004:         
    profit attributable to shareholders of RMB281,420,000) and on the         
    weighted average number of 1,184,800,000 shares                           
    (2004: 1,104,000,000 shares) in issue.