1988 — Page 21

5. TAXATION

Hong Kong

Company

Subsidiary companies

Group

1988

1987

HK$'000

HK$'000

8,500

290

6,082

3,818

14,582

4.108

Hong Kong profits tax has been provided at the rate of 17% (1987 - 18%) on the estimated assessable profits for the year less relief for available tax losses where applicable. The company's accumulated tax losses were fully utilized in 1987.

No provision for deferred tax is required as the effect of cumulative timing differences, which are principally related to depreciation allowances, are not expected to crystallise in the foreseeable future. Potential liabilities unprovided for the group and for the company are $60 million (1987

$56 million).

6.

GROUP PROFIT AFTER TAXATION

The group profit after taxation includes an amount of $91,452,000 (1987 - $81,231,000) which has been dealt with in the accounts of the company.

7. DIVIDENDS

Company

1988

1987

HK$'000

HK$'000

Interim of 6 cents per share (1987 - 6 cents) Proposed final of 19 cents per share (1987-16 cents)

10,979

9,981

34,768

26,617

45,747

36,598

8. EARNINGS PER SHARE

The calculation of earnings per share is based on earnings of $89,047,000 (1987 $84,978,000) and on the weighted average of 174,398,934 ordinary shares (1987 166,353,948) in issue during the year.

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