Listed Company Information
 

CHINA RESOURCES<00291> - Results Announcement

China Resources Enterprise, Limited announced on 06/09/2006:
(stock code: 00291 )
Year end date: 31/12/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors

                                                        (Unaudited )
                                     (Unaudited )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/01/2006    from 01/01/2005
                                     to 30/06/2006      to 30/06/2005
                               Note  ('000      )       ('000      )
                                                        (Restated)
Turnover                           : 31,580,722         25,356,360        
Profit/(Loss) from Operations      : 1,974,766          1,790,788         
Finance cost                       : (248,065)          (214,192)         
Share of Profit/(Loss) of 
  Associates                       : 151,139            170,474           
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 1,265,493          1,262,360         
% Change over Last Period          : +0.25     %
EPS/(LPS)-Basic (in dollars)       : 0.55               0.59              
         -Diluted (in dollars)     : 0.54               0.57              
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 1,265,493          1,262,360         
Interim Dividend                   : 14 cents           13 cents
  per Share                                              
(Specify if with other             : N/A                N/A
  options)                                               
                                                         
B/C Dates for 
  Interim Dividend                 : 03/10/2006         to 09/10/2006 bdi.
Payable Date                       : 16/10/2006
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.      Earnings per share
The calculation of the basic and diluted earnings per share is based on 
the following data:
        
                                        Six months ended 30th June
                                        2006                2005
                                        HK$'000             HK$'000
Earnings
Profit attributable to shareholders of the Company
  for the purpose of calculating basic earnings 
  per share                             1,265,493           1,262,360
Interest would have saved had convertible bonds         
  been exercised on 1 January 2006         49,697              53,254      
                                        __________          _________
                        
Profit attributable to shareholders of the Company
  for the purpose of calculating diluted earnings 
  per share                             1,315,190           1,315,614
                                        ==========          =========
                                                                        
                                        2006                    2005
Number of shares
Weighted average number of ordinary shares for 
  the purpose of calculating basic earnings per share   
                                        2,308,889,440      2,148,948,013
Effect of dilutive potential ordinary shares 
  - convertible bonds                   99,112,210          119,595,400
  - share options                       42,259,904          38,184,107
                                        ______________     ______________
Weighted average number of ordinary shares for 
  the purpose of calculating diluted earnings per share                         
                                        2,450,261,554       2,306,727,520
                                        ==============     ==============

2.      Change in accounting policy

In prior years, interests in jointly controlled entitles were accounted 
for using the equity method, which are stated on the consolidated balance 
sheet at the Group's share of net assets of the entities plus goodwill 
arising on acquisitions, less any identified impairment loss.

With effect from 1 January 2006, the Group adopts the proportionate 
consolidation method as set out in the Hong Kong Accounting Standard 31 "
Interests in Jointly Controlled Entities" for the recognition of interests 
in jointly controlled entities.  The directors of the Company consider 
that the use of proportionate consolidation method better reflects the 
substance and economic reality of the Group's interests in jointly 
controlled entities.

Under the proportionate consolidation method, the Group's share of assets, 
liabilities, income and expenses of jointly controlled entities is 
combined on a line-by-line basis with similar items in the Group's 
financial statements.

Although the change in accounting policy does not have any effect on the 
Group's net assets as at 31 December 2005 and the Group's consolidated 
profit attributable to shareholders for the six months ended 30 June 2005, 
it would result in certain changes in individual line items of the 
consolidated accounts.  The new accounting policy has been applied 
retrospectively and the comparatives have been restated accordingly.