Vision Values Holdings Ltd. — Earnings Release 1998

May 19, 1999

Listed Company Information

WAH YIK HOLD<0862> - Results Announcement Wah Yik Holdings Company Limited announced on 18/5/1999: (stock code: 862) Year end date: 31/12/1998 Currency: HK$ Last Current Corresponding Period Period from 1/1/1998 from 1/1/1997 to 31/12/1998 to 31/12/1997 ('000) ('000) Turnover/Interest Income : 91,932 74,730 Profit-Continuing Operations - Operating Profit : 54,726 46,602 - Exceptional Items : - 5,473 - Discontinued Operations : - - Total Operating Profit : 54,726 52,075 Share of Profit of Associated Companies : - - Profit after Tax & MI : 44,054 43,387 % Change over Last Period : +1.5% EPS-Basic : $0.26 $0.27 -Diluted : - - Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : 44,054 43,387 Final Dividend per Share : $0.05 N/A (Specify if with other options) : - - B/C Dates for Final Dividend : 22/6/1999 to 30/6/1999 bdi. Payable Date : 27/7/1999 B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : Nil B/C Dates for Other Distribution : N/A Remarks: (1) Basis of presentation Wah Yik Holdings Company Limited (the "Company") was incorporated as an exempted company with limited liability in the Cayman Islands on 25th May, 1998 under the Companies Law (1998 Revision) of the Cayman Islands. Pursuant to a group reorganisation scheme (the "Reorganisation") to rationalise the Group structure in preparation for the listing of the Company's shares on the Stock Exchange of Hong Kong Limited (the "Stock Exchange"), the Company became the holding company of the Group on 11th September 1998. The shares of the Company were listed on the Stock Exchange on 14th October 1998. The Group accounts comprise the consolidation of the accounts of the Company and all of its subsidiaries as at 31st December 1998. The results for the years ended 31st December 1998 and 1997 were prepared on a combined basis as if the current Group structure had been in existence throughout the accounting periods presented, or since the dates of incorporation or acquisition of the respective subsidiaries, whichever is the shorter period. In the opinion of the Directors, the accounts prepared on the above basis present fairly the results and the state of affairs of the Group as a whole. (2) Exceptional item In 1997, the Group disposed of a wholly owned subsidiary, established in the People's Republic of China to a third party at a total consideration of approximately HK$24,050,000 resulting in a gain of HK$5,473,000. Tax on gain on disposal of approximately HK$821,000 has been included in the taxation charge. (3) Earnings per share The calculation of earnings per share is based on the profit attributable to the shareholders of HK$44,054,000 (1997: HK$43,387,000) and the weighted average number of 168,767,123 shares (1997: 160,000,000 shares) in issue during the year. In determining the weighted average number of shares in issue for 1997 a total of 100,000 shares issued on the establishment of the Company and Reorganisation of the Group and a further 159,900,000 shares being the capitalisation issue immediately following the new issue of shares to the public on 14th October 1998 were deemed to have been issue since 1st January 1997. There is no diluted earnings per share since the Company has no dilutive potential ordinary shares. For more details, please refer to the press announcement today.