China Pipe Group Limited — Earnings Release 1999

May 17, 2000

Listed Company Information

PRIME SUCCESS<0210> - Results Announcement Prime Success International Group Limited announced on 17/5/2000: (stock codes: Ord: 210 & War: 1126) Year end date: 31/12/1999 Currency: HK$ (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 : 1,008,898 1,000,720 - Discontinued : 8,424 7,695 Operating Profit - Continuing : 35,666 8,045 - Discontinued : 893 - Total Operating Profit : 36,559 8,045 Share of Profit of Associated Companies : 1,352 1,045 Share of Profit of Jointly Controlled Entities : - - Profit after Tax & MI : 33,885 10,918 % Change over Last Period : +210.36% EPS/(LPS)-Basic : 2.2 cents 0.7 cent -Diluted : 2.2 cents 0.7 cent Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : 33,885 10,918 Final Dividend per Share : Nil 0.5 cent (Specify if with other options) : N/A N/A 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 : N/A B/C Dates for Other Distribution : N/A Remarks: (1) Earnings per share The calculation of the basic and diluted earnings per share for the year is based on the following data: 1999 1998 HK$'000 HK$'000 Profit attributable to shareholders 33,885 10,918 ====== ====== Weighted average number of ordinary shares for the purposes of basic earnings per share 1,506,613,906 1,527,139,889 Effect of dilutive potential ordinary shares: - share options 1,245,548 13,798,478 ------------- ------------ Weighted average number of ordinary shares for the purposes of diluted earnings per share 1,507,859,454 1,540,938,367 The computation of diluted earnings per share does not assume the exercise of the Company's outstanding share warrants as the exercise price of the Company's share warrants was higher than the average market value of the Company's shares for both 1999 and 1998. (2) Dividend The Board of Directors does not recommend a final dividend. (3) Discontinued operation To consolidate resources for development of its core footwear business, the Group has substantially reduced its equity stake in Rhine Enterprise Limited, which holds the franchise license for the operation of "Manabe" coffee shops in the Mainland from 52% to 17%. The disposal of the discontinued food and beverage segment resulted in a gain of approximately HK$893,000.