PME<00379> - Results Announcement

PME Group Limited announced on  21/4/2003:
(stock code: 00379 )
Year end date: 31/12/2003
Currency: HKD
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 1/1/2003      from 1/1/2002  
                                     to 31/12/2003      to 31/12/2002 
                               Note  ('000      )       ('000      )
Turnover                           : 155,076            121,310           
Profit/(Loss) from Operations      : 36,560             31,593            
Finance cost                       : (1,233)            (2,172)           
Share of Profit/(Loss) of 
  Associates                       : N/A                N/A               
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 30,633             23,998            
% Change over Last Period          : +27.6     %
EPS/(LPS)-Basic (in dollars)       : 0.0383             0.0345            
         -Diluted (in dollars)     : N/A                N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 30,633             23,998            
Final Dividend                     : $0.0125            $0.01125          
  per Share                                                               
(Specify if with other             : N/A                N/A               
  options)                                                                
                                                                          
B/C Dates for 
  Final Dividend                   : 25/5/2004          to 28/5/2004 bdi.
Payable Date                       : 10/6/2004 
B/C Dates for Annual         
  General Meeting                  : 25/5/2004          to 28/5/2004 bdi.
Other Distribution for             : N/A           
  Current Period                     
                                     
B/C Dates for Other 
  Distribution                     : N/A          

Remarks:

1.      GROUP RESTRUCTURING AND BASIS OF PRESENTATION OF FINANCIAL 
STATEMENTS

The Company was incorporated as an exempted company with limited liability 
in the Cayman Islands on 27 February 2002 under the Companies Law 
(Revised) Chapter 22 of the Cayman Islands.

Pursuant to a group reorganisation (the "Group Reorganisation") to 
rationalise the structure of the Company and its subsidiaries (hereinafter 
collectively referred to as the "Group") in preparation for the listing of 
the Company's shares on the Main Board of The Stock Exchange of Hong Kong 
Limited (the "Stock Exchange"), the Company issued shares in exchange for 
the entire issued share capital of PME International (BVI) Company 
Limited, the former holding company of the Group, and thereby became the 
holding company of the Group on 23 October 2002.

The shares of the Company have been listed on the Stock Exchange with 
effect from 13 November 2002.

The Group resulting from the Group Reorganisation is regarded as a 
continuing entity.  Accordingly, the consolidated financial statements 
have been prepared using the principles of merger accounting in accordance 
with Statement of Standard Accounting Practice 27 "Accounting for Group 
Reconstructions" issued by the Hong Kong Society of Accountants ("HKSA").


2.      ADOPTION OF STATEMENT OF STANDARD ACCOUNTING PRACTICE

In the current year, the Group has adopted, for the first time, the 
Statement of Standard Accounting Practice ("SSAP") 12 (Revised) "Income 
Taxes" ("SSAP 12 (Revised)") issued by HKSA.

The principal effect of the implementation of SSAP 12 (Revised) is in 
relation to deferred tax.  In previous years, partial provision was made 
for deferred tax using the income statement liability method under which a 
liability was recognised in respect of timing differences arising, except 
where those timing differences were not expected to reverse in the 
foreseeable future.  SSAP 12 (Revised) requires the adoption of a balance 
sheet liability method, whereby deferred tax is recognised in respect of 
all temporary differences between the carrying amounts of assets and 
liabilities in the financial statements and the corresponding tax bases 
used in the computation of taxable profit, with limited exceptions. In the 
absence of any specific transitional requirements in SSAP 12 (Revised), 
the new accounting policy has been applied retrospectively.  As a result 
of this change in policy, the balance of retained profits at 1 January 
2002 has been increased by HK$117,000, representing the cumulative effect 
of the change in policy on the results for periods prior to 1 January 
2002. The balance on the Group's property revaluation reserve at 1 January 
2002 has been decreased by HK$4,040,000 representing the deferred tax 
liability recognised in respect of the revaluation increase of certain of 
on the Group's leasehold land and buildings at that date.  The change has 
resulted in an increase in profit and a decrease in property revaluation 
reserve of HK$330,000 and HK$8,000 respectively for the year ended 31 
December 2003 (2002: decrease in HK$390,000 and decrease in HK$280,000 
respectively).

3.      EARNINGS PER SHARE

The calculation of the basic earnings per share is based on the net profit 
for the year ended 31 December 2003 of HK$30,633,000 (2002: HK$23,988,000 
as restated) and 800,000,000 (2002: weighted average 696,438,356) ordinary 
shares in issue during the year on the assumption that the Group 
Reorganisation and capitalisation issue had been completed on 1 January 
2002.

There is no difference between the basic and diluted earnings per share as 
the Company has no potentially dilutive ordinary shares during both years.