Listed Company Information
 

CHINA PARADISE<00503> - Results Announcement

China Paradise Electronics Retail Limited announced on 21/04/2006:
(stock code: 00503 )
Year end date: 31/12/2005
Currency: RMB
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/01/2005    from 01/01/2004
                                     to 31/12/2005      to 31/12/2004
                               Note  ('000      )       ('000      )
Turnover                           : 12,246,168         8,266,956         
Profit/(Loss) from Operations      : 358,242            261,112           
Finance cost                       : (8,306)            (5,345)           
Share of Profit/(Loss) of 
  Associates                       : N/A                1,476             
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 289,474            185,650           
% Change over Last Period          : +55.9     %
EPS/(LPS)-Basic (in dollars)       : 0.17               0.12              
         -Diluted (in dollars)     : 0.16               0.12              
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 289,474            185,650           
Final Dividend                     : HKD0.026           N/A
  per Share                                              
(Specify if with other             : N/A                N/A
  options)                                               
                                                         
B/C Dates for 
  Final Dividend                   : 24/05/2006         to 26/05/2006 bdi.
Payable Date                       : 12/06/2006
B/C Dates for Annual         
  General Meeting                  : 24/05/2006         to 26/05/2006 bdi.
Other Distribution for             : Special Dividend of HKD0.013
  Current Period                     
                                     
B/C Dates for Other 
  Distribution                     : 24/05/2006         to 26/05/2006 bdi.
  
Remarks:

1.      Basis of presentation

The Company was listed on the Main Board of The Stock Exchange of Hong 
Kong Limited (the "Stock Exchange") on 14 October 2005.  The consolidated 
financial statements have been prepared on a continuing basis as if the 
acquisition of the controlling interest in Yongle (China) Electronics 
Retail Co., Ltd. (formerly known as Shanghai Yongle Electronics Retail Co
., Ltd.)("Yongle (China)") by the Company via Paradise Hong Kong II had 
been completed as at the beginning of the financial years presented 
because the acquisition of Yongle (China) by the Company should be 
regarded as a business combination under common control as the Company and 
Yongle (China) are ultimately controlled by the same parties before and 
after the Reorganisation.  Therefore, the consolidated financial 
statements include the Group's financial position, results of operations 
and cash flows as if Yongle (China) had been a subsidiary of the Group 
since the beginning of the financial years presented, to the extent of the 
interests in Yongle (China) held by the Mr. Chen Xiao, Ms. Shu Wei, Mr. 
Liu Hui and Mr. Yuan Yashi (collectively referred to as the "Key 
Management") and a trust, of which Mr. Chen Xiao was the trustee, over the 
periods up to the date of acquisition of a 90% interest in Yongle (China) 
by the Company via Paradise Hong Kong II, excluding the 10% interest in 
Yongle (China) directly held by the Key Management upon completion of the 
Reorganisation which is accounted for as part of the minority interests 
since the beginning of the financial years presented.

Except that the results of Yongle (China) are presented on a merger basis 
as described in the preceding paragraph, the results of all subsidiaries 
and jointly-controlled entities historically acquired or disposed of by 
Yongle (China) are consolidated from or to their effective dates of 
acquisition or disposal.

In the opinion of the directors, the financial statements of the Group, 
presented on the above basis, present fairly the results, cash flows and 
the state of affairs of the Group as a whole.

1.1     Basis of preparation

The consolidated financial statements have been prepared in accordance 
with International Financial Reporting Standards ("IFRSs"), which 
comprises standards and interpretations approved by the International 
Accounting Standards Board (the "IASB"), and International Accounting 
Standards and Standing Interpretations Committee interpretations approved 
by the International Accounting Standards Committee that remain in effect, 
except for the following standards that have been early adopted since the 
beginning of the financial years presented:

.       IFRS 1 (amended in 2004), First-Time Adoption of International 
		Financial Reporting Standards;
.       IFRS 2, Share-Based Payment;
        IFRS 3, Business Combinations;
.       IFRS 5, Non-current Assets Held for Sale and Discontinued 
		  Operations;
.       IAS 1 (amended in 2004), Presentation of Financial Statements;
.       IAS 10 (amended in 2004), Events after the Balance Sheet Date;
.       IAS 12 (amended in 2004), Income Taxes;
.       IAS 14 (amended in 2004), Segment Reporting;
.       IAS 16 (amended in 2004), Property, Plant and Equipment;
.       IAS 17 (amended in 2004), Leases;
.       IAS 18 (amended in 2004), Revenue;
.       IAS 19 (amended in 2004), Employee Benefits;
.       IAS 27 (amended in 2004), Consolidated and Separate Financial 
		  Statements;
.       IAS 28 (amended in 2004), Investments in Associates;
.       IAS 31 (amended in 2004), Interests in Joint Ventures;
.       IAS 32 (amended in 2004), Financial Instruments: Disclosure and 
		  Presentation;
.       IAS 33 (amended in 2004), Earnings per Share;
.       IAS 36 (amended in 2004), Impairment of Assets;
.       IAS 37 (amended in 2004), Provisions, Contingent Liabilities and 
		  Contingent Assets;
.       IAS 38 (amended 2004), Intangible Assets; and
.       IAS 39 (amended 2004), Financial Instruments: Recognition and 
		  Measurement.

The consolidated financial statements have been prepared on a historical 
cost basis and presented in Renminbi and all values are rounded to the 
nearest thousand except when otherwise indicated.

1.2     Basis of consolidation

The consolidated financial statements comprise the financial statements of 
the companies comprising the Group.  Except that the results of Yongle 
(China) were presented on a merger basis as described in note 1, the 
results of all subsidiaries and jointly-controlled entities historically 
acquired or disposed of by Yongle (China) are consolidated from or to 
their effective dates of acquisition or disposal. 

All material intra-group transactions and balances, and any unrealised 
gains arising from intra-group transactions, have been eliminated on 
consolidation.

Minority interests at balance sheet date, being the portion of the net 
assets of subsidiaries attributable to equity interests that are not owned 
by the Group, whether directly or indirectly through subsidiaries, are 
presented in the consolidated balance sheet within equity, separately from 
the parent shareholders' equity.  Minority interests in the results of the 
Group are also separately disclosed in the consolidated income statement.

2.      Impact of issued but not yet effective IFRSs and IFRIC 
Interpretations

The Group has not applied the following IFRSs and IFRIC Interpretations 
that have been issued but are not yet effective:

IFRS 6 Exploration for and Evaluation of Mineral Resources
This Standard does not apply to the activities of the Group.

IFRIC Interpretation 5 Rights to Interests arising from Decommissioning, 
Restoration and Environmental Rehabilitation Funds

This Interpretation is required to be applied for annual periods beginning 
on or after 1 January 2006, but is not expected to be relevant for 
activities of the Group.

The Group expects that adoption of the pronouncements listed above will 
have no impact on the Group's financial statements in the period of 
initial application.

3.      Earnings per share attributable to ordinary equity holders of the 
Company

Basic earnings per share
The calculation of basic earnings per share amounts for the year ended 31 
December 2005 is based on the net profit for the year attributable to 
ordinary equity holders of the Company of RMB289,474,000, and the weighted 
average number of ordinary shares in issue during the year of 1,678,047,
208 shares on the assumption that 1,544,222,000 shares, representing the 
number of the shares of the Company outstanding immediately before the 
offering of the Company's shares in relation to the listing of the Company 
on the Stock Exchange (the "Global Offering"), assuming that none of the 
Company's share option will be exercised before the Global Offering, had 
been in issue throughout the year ended 31 December 2005, adjusted for new 
issue of 455,778,000 shares upon the Global Offering and 99,354,693 shares 
upon the exercise of the Financial Investors' Option by the Financial 
Investors on 14 October 2005 and 68,366,000 shares under over-allotment 
arrangement in connection with the Global Offering on 20 October 2005.

The calculation of basic earnings per share amounts for the year ended 31 
December 2004 is based on the net profit for the year attributable to 
ordinary equity holders of the Company of approximately RMB185,650,000, 
and the number of ordinary shares in issue during 2004 on the assumption 
that 1,544,222,000 shares issued as at 14 October 2004, assuming that none 
of the Company's share option will be exercised before the Global 
Offering, had been in issue throughout the year ended 31 December 2004. 

Diluted earnings per share
The calculation of diluted earnings per share amounts is based on the net 
profit for the year attributable to the ordinary equity holders of the 
Company, adjusted to reflect the outstanding share options.  The weighted 
average number of ordinary shares used in the calculation is the ordinary 
shares in issue during the year, as used in the basic earnings per share 
calculation and the weighted average number of ordinary shares assumed to 
have been issued at no consideration on the deemed exercise or conversion 
of all dilutive potential ordinary shares into ordinary shares.  

The calculations of basic and diluted earnings per share are based on:

                                        2005            2004
                                        RMB'000         RMB'000
Earnings
Net profit attributable to ordinary 
  equity holders of the Company         289,474         185,650
                                        ==========      =========

                                          Number of shares        
                                        2005            2004
                                        '000            '000
Shares
Weighted average number of ordinary
 shares in issue during the year
 used in the basic earnings
 per share calculation                  1,678,047       1,544,222
Effect of dilution due to share
 options - weighted average number
 of ordinary shares                     142,598         29,737
                                        ----------      ----------
                                        1,820,645       1,573,959
                                        ==========      ==========