Hony Media Group — Earnings Release 2004

Mar 31, 2005

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CHINA STRATEGIC HOLDINGS LIMITED

(Incorporated in Hong Kong with limited liability)

(Stock Code: 235)

ANNOUNCEMENT OF RESULTS OF MRI HOLDINGS LIMITED FOR THE YEAR ENDED 31ST DECEMBER, 2004

MRI Holdings Limited, a 57.26% owned subsidiary of China Strategic Holdings Limited, has announced its audited financial results for the year ended 31st December, 2004. The audited financial statements of MRI are set out below.

This announcement is made by China Strategic Holdings Limited (“CSH”) pursuant to the requirement of Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited to provide shareholders of CSH with financial information of MRI Holdings Limited (“MRI”), is an approximately 57.26% owned subsidiary of CSH, which has announced such information to the public in Australia on 31st March, 2005.

The board of directors (the “Board”) of CSH announces the audited financial results of MRI for the year ended 31st December, 2004 which has been announced by MRI in accordance with rule 4.5 of the Australian Stock Exchange on 31st March, 2005 in Australia. MRI is a company incorporated in Australia and its shares are listed on the Australian Stock Exchange.

The audited financial statements for the year ended 31st December, 2004 are prepared in accordance with the Corporations Act 2001, applicable Accounting Standards and complies with other requirements of the law of Australia.

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CHINA STRATEGIC HOLDINGS LIMITED – Announcement

31st March, 2005

RESULTS

The audited consolidated results of MRI and its subsidiaries for the years ended 31st December, 2004 and 2003 are as follows:

	Year ended 31st	December,
	2004	2003
	A$’000	A$’000
Turnover	841	635
Operating (loss)/profit	(662)	2,391
Taxation	(131)	(111)
(Loss)/profit attributable to shareholders	(793)	2,280
Accumulated losses brought forward	(12,860)	(15,140)
Accumulated losses carried forward	(13,653)	(12,860)
Basic (losses)/earnings per share	(1.7) cents	5.0 cents

Diluted (losses)/earnings per share is not materially different from basic (losses)/earnings per share and therefore is not disclosed.

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CHINA STRATEGIC HOLDINGS LIMITED – Announcement

31st March, 2005

Balance Sheet Highlights

The audited consolidated balance sheets of MRI and its subsidiaries shows the followings:

	As at 31st	December,
	2004	2003
	A$’000	A$’000
Current assets	16,241	16,277
Non current assets	5,643	6,540
Total assets	21,884	22,817
Current liabilities	(320)	(189)
Non current liabilities	(155)	(71)
Net assets	21,409	22,557
Share capital	31,184	31,184
Reserves and accumulated losses	(9,775)	(8,627)
	21,409	22,557
	By Order of the Board
	Chan Ling, Eva

Executive Director

Hong Kong, 31st March, 2005

As at the date of this announcement, the Board comprises Dr. Chan Kwok Keung, Charles, Dr. Yap, Allan, Ms. Chau Mei Wah, Rosanna, Ms. Chan Ling, Eva, Mr. Li Bo as executive directors, Mr. Chan Kwok Hung and Mr. Lui Siu Tsuen, Richard as alternate directors to Dr. Chan Kwok Keung, Charles and Dr. Yap, Allan respectively and Mr. David Edwin Bussmann, Mr. Wong King Lam, Joseph and Mr. Sin Chi Fai as independent non-executive directors.

Please also refer to the published version of this announcement in The Standard.

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CHINA STRATEGIC HOLDINGS LIMITED – Announcement

31st March, 2005