G-Resources Group Limited — Earnings Release 1999

May 2, 2000

Listed Company Information

CHUNG HWA DEV<1051> - Results Announcement Chung Hwa Development Holdings Limited announced on 28/4/2000: (stock code: 1051) The accounts which contain the following results are qualified by the Company's auditor. For more details, please refer to the press announcement issued by the Company on 2/5/2000. Year end date: 31/3/1999 Currency: HK$ (Audited) (Audited) Last Current Corresponding Period Period from 1/4/1998 from 1/4/1997 to 31/3/1999 to 31/3/1998 Turnover - Continuing : 38,305,946 154,947,706 - Discontinued : 71,518,876 172,588,118 Operating Profit/(Loss) - Continuing : (331,140,469) (242,252,587) - Discontinued : (151,955,820) 9,111,638 Total Operating Profit/(Loss) : (483,096,289) (233,140,949) Share of Profit/(Loss) of Associated Companies : (20,899,564) (22,360,652) Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 Profit/(Loss) after Tax & MI : (503,516,360) (247,860,509) % Change over Last Period : N/A EPS/(LPS)-Basic : (21.2 cents) (15.3 cents) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : (503,516,360) (247,860,509) Final Dividend per Share : NIL NIL (Specify if with other options) : NIL NIL B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 24/5/2000 to 31/5/2000 bdi. Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: (1) Taxation Credit (Charge) 1999 1998 HK$ HK$ The (credit) charge comprises: Profit for the year Hong Kong - 124,865 Overseas - 5,070,880 Prior years Hong Kong - (96,254) Overseas (479,493) (4,000,000) Deferred taxation (107,354) Share of tax on results of associated companies 101,644 -------------- -------------- (479,493) 1,093,781 ========= ========= A substantial portion of the Group's profit neither arises in, nor is derived from, Hong Kong. Accordingly, that portion of the Group's profit is not subject to Hong Kong Profits Tax. Hong Kong Profits Tax is calculated at 16% (1998: 16.5%) of the estimated assessable profit for the year. Overseas taxation is calculated at the rates prevailing in the respective jurisdictions. (2) Loss Per Share The calculation of the basic loss per share is based on the loss for the year of HK$503,516,360 (1998: HK$247,860,509) and on the weighted average number of 2,376,775,620 (1998: 1,619,107,591) ordinary shares in issue. No diluted loss per share has been presented because the exercise prices of the Company's share options were higher than the average market price of the Company's shares for both years. (3) Exceptional Items The following exceptional items have been charged in arriving at operating (loss) profit: HK$ Continuing operations: Loss on disposal of fixed assets (22,246,691) Provision for amounts due from associated companies (49,894,510) Loss arising in connection with committed acquisition of addition interest in an associated company (50,450,581) Loss arising in connection with committed repurchase of interests in a subsidiary company (32,008,009) Provision for short term loan receivables (13,450,927) Deficit on revaluation of investment properties (8,785,000) Provision for diminution in value of leasehold land and building (3,186,318) Permanent diminution in goodwill written off (101,221,192) ------------- (281,243,228) ------------- Discontinued operations: Provision on interest in and indebtedness to (119,916,889) a subsidiary not consolidated Provision for payments under guarantees (36,417,604) -------------- (156,334,493) -------------- (437,577,721) ============= For more details, please refer to the press announcement today.