1989 — Page 44

NOTES ON THE ACCOUNTS

5 TAXATION

a Taxation in the profit and loss account represents:

Provision for Hong Kong profits tax at 16.5% (1988 17%) on the profits of the year Under-provision in respect of prior years

1989

HK$'000

1988 HK$'000

27,150 147

48.100 25

27,297

48.125

b Taxation in the balance sheet represents:

Provision for Hong Kong profits tax for the year

27,150

48.100

Provisional profits tax paid

(21,507)

(10,147)

5,643

37,953

c No provision for deferred taxation has been made as the Directors consider that no liability would

be likely to arise as a result of the reversal of timing differences in the foreseeable future. The full potential liability for deferred taxation calculated on the liability method is as follows:

Depreciation allowances in excess of

related depreciation

General provisions

6 EXTRAORDINARY ITEM

1989 HK$'000

1988 HK$'000

146,953

140,229

(28,219)

(39,165)

118,734

101,064

Extraordinary item represents the surplus on disposal of the Company's premises situated at Hung Yu Mansion.

7 DIVIDENDS

Interim dividend of 13 cents per share

(1988 13 cents per share)

Final dividend of 35 cents per share

(1988 — 32 cents per share)

8 EARNINGS PER SHARE

40

1989 HK$'000

1988 HK$'000

52,473

52,473

141.274

129,165

193,747

181,638

Earnings per share is based on earnings of HK$255,522,000 (1988 - HK$261,327.000) and 403,639.413 shares in issue during the year.