SHUN CHEONG<00650> - Results Announcement

Shun Cheong Holdings Limited announced on  18/7/2003:
(stock code: 00650 )
Year end date: 31/03/2003
Currency: HKD
Auditors' Report: Qualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 1/4/2002      from 1/4/2001  
                                     to 31/3/2003       to 31/3/2002  
                               Note  ($         )       ($         )
Turnover                           : 664,310,000        698,432,000       
Profit/(Loss) from Operations      : 4,004,000          (19,683,000)      
Finance cost                       : (2,034,000)        (3,194,000)       
Share of Profit/(Loss) of 
  Associates                       : (2,000)            (3,605,000)       
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : (14,685,000)       (35,322,000)      
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : (0.0317)           (0.0837)          
         -Diluted (in dollars)     : (0.0317)           N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : (14,685,000)       (35,322,000)      
Final Dividend                     : Nil                Nil               
  per Share                                                               
(Specify if with other             : N/A                N/A               
  options)                                                                
                                                                          
B/C Dates for 
  Final Dividend                   : N/A          
Payable Date                       : N/A       
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. Adoption of New and Revised Statements of Standard Accounting Practice

In the current year, the Group has for the first time adopted a number of 
new and revised Statements of Standard Accounting Practice ("SSAPs") 
issued by the Hong Kong Society of Accountants which are effective for 
accounting period commencing on or after 1 January 2002.  Adoption of 
these SSAPs has led to a number of changes in the Group's accounting 
policies.  In addition, the new and revised SSAPs have introduced 
additional and revised disclosure requirements, which have been adopted in 
these financial statements.

SSAP34 "Employee benefits" prescribes the recognition and measurement 
criteria to apply to employee benefits, together with the required 
disclosures in respect thereof.  The adoption of this SSAP has resulted in 
the recognition of an accrual for paid holiday carried forward by the 
Group's employees as at the balance sheet date.  The recognition of this 
accrual has resulted in HK$2,131,000 and HK$2,074,000 being included in 
the balance of the Group's accruals in respect of paid leave carried 
forward as at 31 March 2003 and 2002 respectively.  As a consequence, the 
consolidated accumulated losses at 1 April 2002 and 2001 have been 
increased by HK$2,074,000.  There is no impact on the Group's net loss 
from ordinary activities attributable to shareholders for the year ended 
31 March 2002.

2. Analysis of Turnover and Operating Profits (Loss) from Continuing 
Operations and Discontinuing Operation
                                                        Contribution to
                                Turnover          Operating Profits (Loss)
                                Year ended 31 March Year ended 31 March
                                2003    2002    2003       2002
                                (Audited)(Audited)(Audited)(Audited
                                                           and Restated)
                                HK$'000 HK$'000 HK$'000 HK$'000
Continuing operations
Building services
        contracting business    588,147 604,357 4,874   17,743
Project management income       4,638   6,660   4,638   6,660
Trading of electrical and
        mechanical engineering
        materials and equipment 51,234  52,685  606     (3,007)
                                --------------------------------
                                644,019 663,702 10,118  21,396
                                ================================
Discontinuing operation
Provision for broadband
        connectivity            291     14,188  (458)   (6,389)
Provision for design, installation
        and maintenance of karaoke on
        demand system           -       20,542  -       (9,646)
                                --------------------------------                
                                291     34,730  (458)   (16,305)
                                ================================
                                644,310 698,432 9,660   5,361
                                ===============
Other revenue                                   2,718   2,451
Legal expenses                                  -       (7,907)
Loss on disposal of subsidiaries, net           -       (341)
Unrealised holding losses on
  Long term investments                         (8,374) (6,567)
Provision for impairment losses
  on goodwill                                   -       (12,680)
						----------------
Profits (Loss) from operating activities                                        
Continuing operations                           4,462   (3,672)
Discontinued operations                         (458)   (16,011)
                                                -----------------
                                                4,004   (19,683)
                                                =================
3. Loss after Taxation and MI

Loss after taxation and MI is determined after charging the following 
items:
                                                        Year ended
                                                        31 March
                                                        2003    2002
                                                        HK$'000 HK$'000

Unrealized holding losses on long term investment       8,374   6,567
Legal expenses                                          -       7,907
Provision for impairment losses on goodwill             -       12,680
Loss on disposal of subsidiaries, net                   -       341
                                                        ======= =======


4. Loss per Share

The calculation of the basic and diluted loss per share for the year ended 
31 March 2003 was based on the following data:
                                                Year ended 31 March
                                                2003    2002
                                                HK$'000 HK$'000
Loss

Net loss attributable to shareholders, used in
        the basic and diluted loss per share calculation
                                                (14,685)(35,322)
                                                ======  ======
Number of Share

Weighted average number of ordinary shares in issue
        during the year used in the basic 
        loss per share calculation      463,721,600     422,025,767

Assumed issued at no consideration on deemed exercise
        of all share options outstanding 
                during the year                 -       2,159
                                        --------------- ---------------
Weighted average number of ordinary shares used
        in diluted loss 
        per share calculation           463,721,600     422,027,926
                                        =========       =========

Diluted loss per share for the year ended 31 March 2002 had not been shown 
as the share options outstanding during that year had an anti-dilutive 
effect on the basic loss per share for that year.

5. Qualified Audit Opinion

The auditors' report on the Group's and the Company's financial statements 
for the year ended 31 March 2003 stated that the evidence available to 
them was limited because of the following matters:

(1)      Included in the long term investments in the consolidated balance 
sheet as at 31 March 2003 are three equity investments in unlisted 
companies in the carrying amount of approximately HK$8,036,000 as at 31 
March 2003.  Such investments are stated after fair value provisions of 
approximately HK$5,435,000 (2002: HK$527,000) were made by the directors 
in the current year.  The auditors were unable to satisfy themselves as to 
the reliability of the financial information on which these provisions 
were based and there were no practical alternative audit procedures that 
the auditors could perform to satisfy themselves that these investments 
have been fairly stated at 31 March 2003, or as to the appropriateness of 
the unrealised holding losses on these investments of approximately 
HK$5,435,000 included in the profit and loss account for the year ended 31 
March 2003.

        The auditors' report in respect of the year ended 31 March 2002 
was also qualified on account of a similar scope limitation in respect of 
the fair value of two of these equity investments aggregating HK$9,218,000 
as at 31 March 2002 and the unrealised holding loss on one of these 
investments of approximately HK$527,000 included in the profit and loss 
account for the year ended 31 March 2002.

(2)      In respect of the audited financial statements of the Group for 
the year ended 31 March 2001, the predecessor auditors' report thereon, 
dated 24 August 2001, was qualified concerning certain payments 
aggregating approximately HK$8,800,000 with regard to their propriety and 
completeness.  The auditors 'report in respect of the year ended 31 March 
2002 was also qualified on account of this matter.  Prior to the release 
of those financial statements of the Group for the year ended 31 March 
2001, the board of directors had agreed to commission an investigation 
into this matter under the direction of the audit committee.  The 
investigation has not been completed and no report has been issued up to 
the date of this report.  Pending the final outcome of the investigation, 
there were no practical audit procedures that the auditors could perform 
to obtain sufficient evidence regarding either the propriety, or the 
completeness of such payments and their potential impact, if any, on the 
financial statements of the Company and the Group for either the current 
or prior years.

Except for any adjustments or disclosures that might have been found to be 
necessary had the auditors been able to obtain sufficient evidence 
relating to the matters discussed in the proceeding paragraphs, in the 
opinion of the auditors, the financial statements give a true and fair 
view of the state of affairs of the Company and the Group as at 31 March 
2003 and of the loss and cash flows of the Group for the year then ended 
and have been properly prepared in accordance with the disclosure 
requirements of the Companies Ordinance.