CTF Services Limited — Earnings Release 1998

May 19, 1999

Listed Company Information

CENTRAL CHINA<0351> - Results Announcement Central China Enterprises Limited announced on 18/5/1999: (stock code: 351) Year end date: 31/12/1998 Currency: HKD Current 9-month- Period Period from 1/1/1998 from 1/4/1997 to 31/12/1998 to 31/12/1997 ('000) ('000) Turnover/Interest Income : 335,869 288,908 Profit-Continuing Operations - Operating Profit/(Loss) : 11,432 345 - Exceptional Items : (232,007) (5,113) - Discontinued Operations : (15,658) 9,212 Total Operating Profit/(Loss) : (236,233) 4,444 Share of Profit/(Loss) of Associated Companies : (3,592) (3,363) Profit/(Loss) after Tax & MI : (237,476) (158) % Change over Last Period : N/A EPS/(LPS)-Basic : (15.0 cents) (0.01 cent) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : (237,476) (158) 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 : N/A B/C Dates for Other Distribution : N/A Remarks: 1) Turnover represents the net invoiced value of goods sold and investment income accrued or received. 2) Exceptional items Year ended Nine months 31 Dec 1998 ended 31 Dec 1997 ------------ ----------------- HK$'000 HK$'000 Provision for loss on disposal of interests in Oriental Union Holdings Limited (144,142) - Provision for pledged bank deposits (68,275) - Provision for permanent diminution in value in listed shares (27,630) - Provision for permanent diminution in value in an associated company (4,998) (5,113) Gain on disposal of video cassette business 13,038 - ----------- ---------- (232,007) (5,113) ========== ========= 3) Taxation Year ended Nine months 31 Dec 1998 ended 31 Dec 1997 ------------ ----------------- HK$'000 HK$'000 The charge comprises: Underprovision of Hong Kong profits Tax in prior period/year 849 145 PRC income tax 1,005 403 --------- ------- 1,854 548 ======= ==== PRC income tax is calculated at the rates prevailing in the PRC. 4) Loss per share The calculation of basic loss per share is based on the loss for the year/period of HK$237,476,000 (1997: HK$158,000) and the weighted average of 1,579,656,000 shares (1997: 1,273,145,000 shares) in issue during the year. No dilutive loss per share has been calculated for the year/period as the exercise of the share options would result in a decrease in loss per share. 5) Discontinued Operations During the year, the Company disposed of its entire interests in Indesen (HK) Company Limited for a consideration of HK$24,300,000. Indesen (HK) Company Limited and its subsidiaries and associates are engaged in the manufacture and sale of video cassettes and video cassette housings. The Group is not engaged in the manufacture and sale of video cassettes and video cassette housings after the disposals. For more details, please refer to the press announcement today.