Silkwave Inc — Interim / Quarterly Report 2005

Aug 2, 2005

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South China Holdings Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 265)

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South China Industries Limited

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 413)

ANNOUNCEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 BY A SUBSIDIARY

THIS IS NOT AN ANNOUNCEMENT OF THE FINANCIAL RESULTS OF SOUTH CHINA HOLDINGS LIMITED (“SCH”) OR SOUTH CHINA INDUSTRIES LIMITED (“SCI”). THIS ANNOUNCEMENT IS MADE BY SCH AND SCI PURSUANT TO RULE 13.09 OF THE RULES GOVERNING THE LISTING OF SECURITIES ON THE STOCK EXCHANGE OF HONG KONG LIMITED (THE “LISTING RULES”) TO PROVIDE SHAREHOLDERS OF SCH AND SCI WITH FINANCIAL INFORMATION ON A LISTED SUBSIDIARY OF SCI, WAH SHING INTERNATIONAL HOLDINGS LIMITED (“WAH SHING”), WHICH HAS ANNOUNCED ITS UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2005 TO THE PUBLIC IN SINGAPORE ON 1 AUGUST 2005.

This announcement is made pursuant to Rule 13.09 of the Listing Rules and is being released for information purpose only.

Wah Shing, a 62.34% owned subsidiary of SCI and listed on the SGX-ST, has announced the unaudited financial results of Wah Shing Group for the six months ended 30 June 2005 in Singapore on 1 August 2005. SCH holds approximately 74.79% shareholdings in SCI as at the date of this announcement. The summary of unaudited financial results of Wah Shing Group for the six months ended 30 June 2005 together with the comparative figures of the preceding financial period are provided below.

Wah Shing, a 62.34% owned subsidiary of SCI and listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”), has announced the unaudited financial results of Wah Shing and its subsidiaries (“Wah Shing Group”) for the six months ended 30 June 2005 in Singapore on 1 August 2005. SCH holds approximately 74.79% shareholdings in SCI as at the date of this announcement. The summary of unaudited financial results of Wah Shing Group for the six months ended 30 June 2005 together with the comparative figures of the preceding financial period are provided below:

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WAH SHING INTERNATIONAL HOLDINGS LIMITED

Summary of the unaudited financial results of Wah Shing Group for the six months ended 30 June 2005

	Wah Shing	Group
	Six months	Six months
	ended 30 June	ended 30 June
	2005		2004
		(restated)
	HK$’000		HK$’000
Turnover	647,869		635,126
Loss before taxation	(20,711)		(14,543)
Income tax expenses	(706)		(778)
Loss for the period	(21,417)		(15,321)
Attributable to:
Equity holders of the Company	(22,408)		(14,590)
Minority interests	991		(731)
	(21,417)		(15,321)

Dividend

No dividend has been declared or recommended to the shareholders of Wah Shing for the six months ended 30 June 2005.

Remarks: Details of the unaudited financial results of Wah Shing Group for the six months ended 30 June 2005 are accessible at SGX-ST’s website: http://www.sgx.com.sg.

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As at the date of this announcement, the board of directors of SCH comprises (1) Mr. Ng Hung Sang, Robert, Mr. Richard Howard Gorges, Ms. Cheung Choi Ngor, Mr. Ng Yuk Fung, Peter as executive directors; (2) Ms. Ng, Jessica Yuk Mui and Mr. David Michael Norman as non-executive directors; and (3) Mr. David John Blackett , Mrs. Tse Wong Siu Yin, Elizabeth and Mr. Cheng Hong Kei as independent non-executive directors.

As at the date of this announcement, the board of directors of SCI comprises (1) Mr. Ng Hung Sang, Mr. Richard Howard Gorges, Ms. Cheung Choi Ngor and Mr. Ng Yuk Fung, Peter as executive directors; (2) Ms. Ng, Jessica Yuk Mui as non-executive director; and (3) Mr. Lee Wai Choi, Albert, Mr. Chiu Sin Chun, Mrs. Tse Wong Siu Yin, Elizabeth and Ms. Li Yuen Yu, Alice as independent non-executive directors.

By Order of the Board By Order of the Board South China Holdings Limited South China Industries Limited Cheung Choi Ngor Cheung Choi Ngor Director Director

Hong Kong, 1 August 2005

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

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