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LUEN THAI<00311> - Results Announcement

Luen Thai Holdings Limited announced on 22/09/2005:
(stock code: 00311 )
Year end date: 31/12/2005
Currency: USD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors

                                                        (Unaudited )
                                     (Unaudited )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/01/2005    from 01/01/2004
                                     to 30/06/2005      to 30/06/2004
                               Note  ('000      )       ('000      )
Turnover                           : 267,484            270,369           
Profit/(Loss) from Operations      : 15,883             17,881            
Finance cost                       : (1,396)            (428)             
Share of Profit/(Loss) of 
  Associates                       : (1,745)            343               
Share of Profit/(Loss) of
  Jointly Controlled Entities      : 31                 (275)             
Profit/(Loss) after Tax & MI       : 12,505             13,120            
% Change over Last Period          : -4.7      %
EPS/(LPS)-Basic (in dollars)       : 0.0128             0.0194            
         -Diluted (in dollars)     : 0.0128             N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 12,505             13,120            
Interim Dividend                   : US$0.00244         NIL
  per Share                          (equivalent to
                                      HK$0.019)
(Specify if with other             : N/A                N/A
  options)                                               
                                                         
B/C Dates for 
  Interim Dividend                 : 12/10/2005         to 14/10/2005 bdi.
Payable Date                       : 21/10/2005
B/C Dates for (-)            
  General Meeting                  : N/A   
Other Distribution for             : N/A
  Current Period                     
                                     
B/C Dates for Other 
  Distribution                     : N/A   

Remarks:

1.      These unaudited condensed consolidated financial statements have 
been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 
"Interim Financial Reporting" issued by the Hong Kong Institute of 
Certified Public Accountants ("HKICPA.")

These condensed consolidated financial statements should be read in 
conjunction with the 2004 annual financial statements.

The accounting policies and methods of computation used in the preparation 
of the condensed consolidated financial statements are consistent with 
those used in the annual financial statements for the year ended 31 
December 2004 except that the Group has changed certain of its accounting 
policies following its adoption of new/revised Hong Kong Financial 
Reporting Standards and Hong Kong Accounting Standards ("new HKFRS") which 
are effective for accounting periods commencing on or after 1 January 
2005. 

In 2005, the Group adopted the new/revised standards of HKFRS below, which 
are relevant to its operations.  The 2004 comparatives have been amended 
as required, in accordance with the relevant requirements and with the key 
changes as follows:

The adoption of revised HKAS 17 has resulted in a change in the accounting 
policy relating to the reclassification of leasehold land and land use 
rights from property, plant and equipment to operating leases. The up-
front prepayments made for the leasehold land and land use rights are 
expensed in the income statement on a straight-line basis over the period 
of the lease or where there is impairment, the impairment is expensed in 
the income statement. In prior years, the leasehold land was accounted for 
at cost less accumulated depreciation and accumulated impairment.  Apart 
from certain presentational changes with comparatives restated, this 
change in accounting policy does not have any material effect on the 
financial statements.

The adoption of HKASs 32 and 39 has resulted in a change in the accounting 
policy relating to the classification of available-for-sale financial 
assets.  On 1 January 2005, the long-term investment amounting to US$1,
409,000 was reclassified as available-for-sale financial assets.

The adoption of HKFRS 3, HKAS 36 and HKAS 38 results in a change in the 
accounting policy for goodwill.  Until 31 December 2004, goodwill was:

-       Amortised on a straight line basis over a period of 10 years; and
-       Assessed for an indication of impairment at each balance sheet 
date.

In accordance with the provisions of HKFRS 3:

-       The Group ceased amortisation of goodwill from 1 January 2005;
-       Accumulated amortisation as at 31 December 2004 amounting to 
US$1,124,000 has been eliminated with a corresponding decrease in the cost
of goodwill;
-       From the year ending 31 December 2005 onwards, goodwill is tested 
annually for impairment, as well as when there is indication of 
impairment.

2.      Share of taxation attributable to jointly controlled entities for 
the six months ended 30 June 2004 of US$4,000 is reclassified and restated 
in the income statement as share of profits of jointly controlled 
entities.

3.      The basic earnings per share is calculated based on the Group's 
profit attributable to equity shareholders of the Company of approximately 
US$12,505,000 (2004: US$13,120,000) and weighted average number of 
974,061,326 (2004: 674,999,075) ordinary shares. The weighted average number 
of ordinary shares for the six months ended 30 June 2004 was based on the 
assumption that the reorganisation relating to the initial public offering 
had been completed on 1 January 2004. 

There was no dilutive effect on earnings per share since all outstanding 
share options were anti-dilutive.