Almana Limited — Earnings Release 2005

Mar 28, 2006

GEM

MEDICAL CHI<08186> - Results Announcement (Final, 2005, Summary)

Medical China Limited announced on 27/3/2006:
(stock code: 08186 )

Year end date :31/12/2005
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 01/01/2005   from 01/01/2004
                                     to 31/12/2005     to 31/12/2004
                                             $'000             $'000

Turnover : 36,081 31,576
Profit/(Loss) from Operations : (2,000) 6,145
Finance cost : (301) (73)
Share of Profit/(Loss) of Associates : N/A (290)
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : (2,167) 3,560
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : (HKD 0.0026) HKD 0.0043
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : (2,167) 3,560
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:

BASIS OF PREPARATION

The financial statements have been prepared in accordance
with Hong Kong Financial Reporting Standards issued by the
Hong Kong Institute of Certified Public Accountants, accounting
principles generally accepted in Hong Kong and the disclosure
requirements of the Hong Kong Companies Ordinance. They have
been prepared under the historical cost convention, as modified
by the revaluation of financial assets and financial liabilities
at fair value through income statement.

The financial statements also comply with the applicable
disclosure provisions of the Rules Governing the Listing of
Securities of the Growth Enterprise Market of The Stock Exchange
of Hong Kong Limited.

TURNOVER

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

Pursuant to various agreements with hospitals in the People's
Republic of China (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
utilisation of the medical equipment after deducting the related
direct expenses.

INCOME TAX

No provision for Hong Kong Profits Tax has been made
as the Group did not have assessable profits chargeable
to Hong Kong Profits Tax during the year.

The Company's subsidiary, Tat Lung Medical Treatment (Shenzhen)
Ltd. ("Tat Lung Treatment"), located in the Shenzhen Special
Economic Zone in the PRC is subject to PRC income tax at a
reduced rate of 15% (2004: 15%). According to the relevant
income tax rules and regulations in the PRC, Tat Lung
Treatment obtained approval from the state tax bureau that they
are entitled to a 100% relief from PRC Income Tax in the first
and second years and 50% relief for the third to fifth years,
commencing from the first profitable year after the offset of
deductible losses incurred in prior years, if any.

No provision for PRC Income Tax has been made for the Company's
other subsidiaries, China Best Drugs Research (Nanjing) Ltd.,
Sinnowa Medical Science & Technology Company Ltd., China Best
Pharmaceutical (Nanjiing) Company Limited and Guilin Simei
Biotechnology Ltd., as they did not have assessable profits
for the year determined in accordance with the relevant
income tax rules and regulations in the PRC.

(LOSS)/EARNINGS PER SHARE

(a) Basic (loss)/earnings per share

The calculation of basic (loss)/earnings per share for the
year ended 31 December 2005 is based on the loss attributable
to equity holders of the Company of HK$2,167,000 (2004:
profit of HK$3,560,000) divided by the weighted average
number of 835,000,000 (2004: 835,000,000) ordinary shares in
issue during the year.

(b) Diluted (loss)/earnings per share

No diluted (loss)/earnings per share for the year ended 31
December 2005 and 2004 have been presented because there were
no potential dilutive ordinary shares in existence during
the respective years.

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
2005 (2004: HK$Nil).