WING SHAN INTERNATIONAL LIMITED
(Incorporated in Hong Kong under the Companies Ordinance)

Announcement of Audited Consolidated Results
for the Year Ended 31 December 1999

The directors of Wing Shan International Limited ("the Company") are pleased to announce that the audited consolidated results of the Company and its subsidiaries (together known as "the Group") for the year ended 31 December 1999 are as follows :-

                                              1999           1998
                               Notes       HK$'000        HK$'000

Turnover                                   792,133        705,562
Cost of sales                             (533,380)      (476,746)
                                        ----------     ----------
Gross profit                               258,753        228,816
Other revenue                                8,303         27,775
Other net income                             5,421          4,883
Administrative expenses                    (20,472)       (29,304)
Other operating expenses                   (31,622)       (22,583)
                                        ----------     ----------
Profit from operations                     220,383        209,587
Finance cost                               (78,846)       (66,287)
                                        ----------     ----------
Profit before taxation                     141,537        143,300
Taxation                         1         (11,935)       (17,235)
                                        ----------     ----------
Profit after taxation                      129,602        126,065
Minority interests                         (33,782)       (30,757)
                                        ----------     ----------
Profit attributable to
  shareholders                              95,820         95,308
Appropriations :
  Transfer to reserves           2         (11,380)       (16,422)
  Dividends                                (41,451)       (41,451)
                                        ----------     ----------
Retained profit for the year                42,989         37,435
                                        ==========     ==========
Basic earnings per share         3      11.6 cents     12.9 cents
                                        ==========     ==========
Dividends per share                      5.0 cents      5.0 cents
                                        ==========     ==========

Notes :

1. Taxation

No provision has been made for Hong Kong profits tax as the Group sustained losses for Hong Kong taxation purposes during the year. The tax charge represents provisions for income tax of the People's Republic of China ("PRC"). It was calculated based on the applicable tax rate in accordance with the relevant PRC laws and regulations.

2. Transfer to reserves

In accordance with the accounting principles and financial regulations applicable in the PRC, the Company's PRC subsidiary is required to transfer part of its profit after taxation to the reserve fund and the enterprise development fund. The transfer amounts are determined by the board of directors in accordance with the joint venture agreement and the transfers are made before profit distribution to the joint venture partners.

3. Basic earnings per share

The calculation of basic earnings per share was based on the profit attributable to shareholders of HK$95,820,000 (1998: HK$95,308,000) and the weighted average number of 829,018,244 (1998: 740,127,833) shares in issue during the year. There were no dilutive potential shares in existence in 1999 or 1998.

BUSINESS RESULTS

Turnover of the Group increased by 12.3 % to HK$792.1 million (1998: HK$705.6 million). Profit attributable to shareholders increased by 0.5 % to HK$95.8 million (1998: HK$95.3 million). Profit before taxation as a percentage of turnover declined from 20.3 % to 17.9%. Earnings per share decreased by 10.1% to 11.6 cents (1998: 12.9 cents).

DIVIDENDS

The directors have recommended a final dividend of 3.5 cents (1998: 3.5 cents) per share for the year ended 31 December 1999, payable on or about 18 July 2000 to shareholders whose names appear on the Register of Members on 26 June 2000. Together with the interim dividend of 1.5 cents (1998: 1.5 cents) per share paid on 29 October 1999, the total dividends for the year amounted to HK$41.5 million (1998: HK$41.5 million).

BUSINESS REVIEW

• During the year, the electric power administrative authorities of Guangdong Provincial Government continued to implement reform programs in respect of its electric power industry. Part of these programs included (a) the closing-down of less efficient and small-scale diesel power plants; (b) the streamlining of the electric power distribution structure; and (c) the renovation of the electric power transmission network.

• The Group increased its electricity sales by 12.2% to approximately 1.65 billion kilowatt-hours ("kwh") (1998: 1.47 billion kwh) to the local power bureau. The increase was mainly due to the less than nine months post-acquisition period contribution of (Foshan Shakou Power Plant Co., Ltd.) ("Shakou JV") of the previous year. On a full-year basis, Shakou JV's electricity sales grew by 2.8%.

• Out of the total electricity sold, approximately 150 million kwh (1998: 297 million kwh) were purchased from (Foshan Shiwan Power Plant Co., Ltd.) ("Shiwan JV") pursuant to a standby power supply agreement dated 29 December 1997 entered into between Shakou JV and Shiwan JV. Shakou JV's average plant utilization rate increased to 57% (1998: 50%).

• During the year, fuel price fluctuated and climbed to a high level due to the international oil market movement. In anticipation of the rising fuel price, Shakou JV ordered a longer period of fuel supply early in the year at comparatively low prices so as to ensure stable fuel supply for the entire year and to reduce its exposure to the climbing fuel price.

• The Group implemented strategic measures to enhance the Group's overall cost effectiveness and production efficiency. Despite the rise in fuel costs, the Group was able to improve Shakou JV's operating profit margin for the year.

• However, the Group's operating profit margins were trimmed mainly by (a) a reduced tax refund of HK$2.2 million (1998: HK$15.6 million); (b) reduced interest income of HK$6.1 million (1998: HK$12.2 million); (c) increased goodwill amortization of HK$31.6 million (1998: HK$22.5 million); and (d) increased interest expenses of HK$78.8 million (1998: HK$66.1 million).

OUTLOOK

• The operating environment will be challenging in the short-term, mainly because of the prevailing high fuel prices.

• The directors will continue to implement strategic measures to mitigate the effect of high fuel prices on the Group's performance.

• Although it is extremely difficult to precisely predict the future movement of fuel prices, it has recently been reported that fuel prices will gradually stabilize and ultimately head towards a lower level.

• The Company will continue to explore business opportunities that could give synergy to the Group's power generating business.

YEAR 2000 ("Y2K") COMPUTER PROBLEM

In respect of its Y2K compliance program, the Group completed final modifications of all of its computer-based systems in September 1999. The Group has not experienced any business disruption during or after the millennium change. For details, please refer to the Company's 1999 annual report.

PURCHASE, SALE OR REDEMPTION OF COMPANY'S LISTED SECURITIES

During the year, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities.

By Order of the Board
YIP Siu Chun
Chairman

Hong Kong, 9 May 2000

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