China Everbright Limited — Earnings Release 1999

May 4, 2000

Listed Company Information

SHOUGANG CENT<0103> - Results Announcement Shougang Concord Century Holdings Limited announced on 4/5/2000 : (stock code: 103) Year end date: 31/12/1999 Currency: HKD (Audited) (Audited) Last Current Corresponding Period Period from 1/1/1999 from 1/1/1998 to 31/12/1999 to 31/12/1998 ('000) ('000) Turnover - Continuing : 227,122 964,700 - Discontinued : 41,698 51,917 Operating Profit/(Loss) - Continuing : (80,941) (155,292) - Discontinued : (3,217) (6,259) Total Operating Profit/(Loss) : (84,158) (161,551) Share of Profit/(Loss) of Associated Companies : 3,261 (1,236) Share of Profit/(Loss) of Jointly Controlled Entities : 10,657 (44,426) Profit/(Loss) after Tax & MI : (65,616) (196,723) % Change over Last Period : N/A EPS/(LPS)-Basic : (8.57 cents) (25.7 cents) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : Nil Nil Profit/(Loss) after ETD Items : (65,616) (196,723) Final Dividend per Share : Nil Nil (Specify if with other options) : - - B/C Dates for Final Dividend : 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 Remarks: 1. Discontinued and discontinuing operations a) On 20th January, 1999 in view of the loss of a major customer, the prolonged economic recession and a contraction of the retail business in Hong Kong, the directors decided to terminate the Group's children's wear manufacturing and trading business in Hong Kong. The termination process was completed in September 1999. The financial effects of these operations on the current and prior years' consolidated profit and loss account have been seperately disclosed as discontinued operations. b) On 11th December,1999, in view of the gloomy prospects of the electrical wire processing business due to intense price competition, the directors decided to discontinue the Group's business segment of electrical wire processing through disposal. The directors are of the opinion that the Group is able to streamline its business and improved its financial health through the disposal. The disposal was approved by the Company's shareholders at an extraordinary general meeting held on 10th January, 2000 and was completed on 14th January, 2000. The financial effects of these operations on the current and prior years' consolidated profit and loss account have been separately disclosed as discontinuing opearations. 2. Loss per share The calculation of basic loss per share is based on the net loss from ordinary activities attributable to shareholders of HK$65,616,000 (1998: HK$196,723,000) and the weighted average of 765,372,000 shares (1998: 765,500,784 shares) in issue during the year. Diluted loss per share is not presented as there were no dilutive potential ordinary shares outstanding during the years ended 31 December 1999 and 1998. 3. Change in accounting policy The policy for accounting for deferred pre-operating expenses which, in prior years were captialised and amortised over a period not exceeding ten years on the straight-line basis, beginning when the related production commences, was changed during the year ended 31 December 1999. These deferred pre-operating expenses are now recognised as expenses in the period in which they are incurred. In restating the financial statements for 1998 on the basis of the new policy, the net loss from ordinary activities attributable to shareholders for the year ended 31 December 1998 decreased by HK$1,406,000.