Almana Limited — Earnings Release 2004

Mar 24, 2005

GEM

MEDICAL CHI<08186> - Results Announcement (Final, 2004, Summary)

Medical China Limited announced on 23/03/2005:
(stock code: 08186 )

Year end date :31/12/2004
Currency :HKD
Auditors' report :Unqualified

Important Note :

This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com

                                       (\* Audited)       (\* Audited)
                                          Current Last Corresponding
                                           Period            Period
                                   from 01/01/2004   from 01/01/2003
                                     to 31/12/2004     to 31/12/2003
                                             $'000             $'000

Turnover : 31,576 33,937
Profit/(Loss) from Operations : 6,145 (18,736)
Finance cost : (73) (136)
Share of Profit/(Loss) of Associates : (290) (12)
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : 3,560 (21,316)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : HKD 0.0043 (HKD 0.0255)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 3,560 (21,316)
Final Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for Final Dividends : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A
(bdi: both days inclusive)

For and on behalf of
Medical China Limited

Signature :
Name : Li Wo Hing
Title : Director

Responsibility statement

The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for the
accuracy of the information contained in this results announcement form
(the "Information") and confirm, having made all reasonable inquiries,
that to the best of their knowledge and belief the Information are
accurate and complete in all material respects and not misleading and
that there are no other matters the omission of which would make the
Information herein inaccurate or misleading.The Directors acknowledge
that the Stock Exchange has no responsibility whatsoever with regard to
the Information and undertake to indemnify the Exchange against all
liability incurred and all losses suffered by the Exchange in connection
with or relating to the Information.

Remarks:

1. Recently issued Hong Kong Financial Reporting Standards

The Hong Kong Institute of Certified Public Accountants ("HKICPA")
has issued a number of new and revised Hong Kong Financial
Reporting Standards and Hong Kong Accounting Standards
("new HKFRSs") which are effective for accounting periods
beginning on or after 1 January 2005.

The Group has not early adopted these new HKFRSs in the financial
statements for the year ended 31 December 2004. The Group has
already commenced an assessment of the impact of these new
HKFRSs but is not yet in a position to state whether these new
HKFRSs would have a significant impact on its results of
operations and financial position.

1. Turnover

Turnover represents service fees arising from the provision of
medical equipment services and related accessories, net of
respective taxes; the sales value of testing equipment, net of
value added tax, and service fees arising from the provision of
medical research and development services, net of business tax.

Pursuant to various agreements with hospitals in the PRC, the
Group agrees to provide certain medical equipment at the relevant
hospitals and in return, share the medical service fees arising
from the utilization of the medical equipment after deducting
the related direct expenses.

Turnover recognized during the year may be analysed as follows:

                                           2004         2003
                                        HK$'000      HK$'000

Medical service fees and
sales of related accessories 20,351 25,754
Sales of testing equipment 10,036 6,831
Research and development services 1,189 1,352
--------- ---------
31,576 33,937
========= =========

1. Income Tax In The Consolidated Income Statement

(a) Taxation in the consolidated income statement represents:

                                           2004         2003
                                        HK$'000      HK$'000

Current tax - PRC Tax for the year 2,507 2,445
========= =========

(i) No provision for Hong Kong Profits Tax has been made as the
Group did not have assessable profits subject to Hong Kong
Profits Tax during both years.

(ii) Income tax for subsidiaries established and operating in the
People's Republic of China other than Hong Kong (the "PRC")
is calculated based on the applicable rates of income tax
ruling in the relevant provinces or economic zones in the
PRC.

(b) No provision has been made for deferred taxation as the
Group does not have any material deductible or taxable
temporary differences.

1. Earnings/(Loss) Per Share

(a) Basic earnings/(loss) per share

The calculation of basic earnings per share for the year
ended 31 December 2004 is based on the profit attributable
to shareholders of HK$3,560,000 (2003: loss of HK$21,316,000)
divided by the weighted average number of 835,000,000
(2003: 835,000,000)ordinary shares in issue during the year.

(b) Diluted earnings/(loss) per share

The diluted earnings/(loss) per share is not presented as
there are no dilutive potential ordinary shares as at
31 December 2003 and 2004.

1. Final Dividend

No dividend has been paid or declared by the Company since its
incorporation. The Directors do not recommend the payment of a
final dividend for the year ended 31 December 2004 (2003: Nil).