ASIA COMM HOLD<00104> - Results Announcement

Asia Commercial Holdings Limited announced on 17/12/2004:
(stock code: 00104 )
Year end date: 31/3/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors

                                                        (Unaudited )
                                     (Unaudited )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 1/4/2004      from 1/4/2003  
                                     to 30/9/2004       to 30/9/2003  
                               Note  ('000      )       ('000      )
Turnover                           : 122,714            112,844           
Profit/(Loss) from Operations      : (10,668)           46,017            
Finance cost                       : (675)              (686)             
Share of Profit/(Loss) of 
  Associates                       : (69)               (458)             
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : (11,272)           45,313            
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : (0.0338)           0.1358            
         -Diluted (in dollars)     : N/A                0.1349            
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : (11,272)           45,313            
Interim Dividend                   : Nil                Nil               
  per Share                                                               
(Specify if with other             : N/A                N/A               
  options)                                                                
                                                                          
B/C Dates for 
  Interim 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.      BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES 

The condensed financial statements have been prepared in accordance with 
the applicable disclosure requirements set out in Appendix 16 of the Rules 
Governing the Listing of Securities ("Listing Rules") on The Stock 
Exchange of Hong Kong Limited ("Stock Exchange") and with the Statement of 
Standard Accounting Practice ("SSAP") 25 "Interim Financial Reporting" 
issued by the Hong Kong Institute of Certified Public Accountants 
("HKICPA").

The accounting policies adopted in these condensed financial statements 
are consistent with those set out in the Group's audited financial 
statements for the year ended 31st March, 2004.



2.      TURNOVER AND OTHER REVENUE
                                          Six months ended
                                           30th September,
                                        2004            2003
                                        HK$'000         HK$'000
                                        (unaudited)     (unaudited)
Turnover                        
  Sales of watches                      119,692         108,800
  Rental income                 
                        
    Investment properties                 1,785           1,985
    Land and buildings                       46             147
    Others                                  298             280
                        
                                          2,129           2,412
                        
  Programming service                       893           1,632
                                        -------------------------
                                        122,714         112,844
                        
Other revenue                   
  Dividend income                             -              48
  Interest income                           222             326
  Customer services income and others     3,638           3,500
                                        
                                          3,860           3,874
                                        -------------------------
                                        126,574         116,718
                                        =========================
 

3.      OTHER OPERATING EXPENSES, NET

                                          Six months ended
                                           30th September,
                                        2004            2003
                                        HK$'000         HK$'000
                                        (unaudited)     (unaudited)
Provision for bad and doubtful debts      (789)          (121)
Provision for slow-moving inventories   (4,822)         (8,137)
Net unrealized gain on revaluation of investments in                    
  securities                                 -           2,775
Written back of trade and other payables        
                                            68             206
                                        ------------------------
                                        (5,543)         (5,277)
                                        ========================
4.      OTHER (EXPENSES) INCOME, NET

                                           Six months ended
                                           30th September,
                                        2004            2003
                                        HK$'000         HK$'000
                                        (unaudited)     (unaudited)
                        
Write off of fixed assets                   (2)            (70)
Amortization of goodwill                  (230)           (424)
Management fee (Note)                   (6,013)              -
Provision for impairment loss on leasehold property     
                                          (747)              -
Deficit arising from valuation of an investment property        
                                        (3,006)              -
Receipt of further consideration from the disposal                      
  of Lakeview Project                        -          47,361
                                        ------------------------
                                        (9,998)         46,867
                                        ========================

Note:   During the period under review, the Group's OEM manufacturing 
activities has been dormant. The Chinese partner of a Group's Dongguan 
joint venture ("Joint Venture") wanted the Group to reactive its OEM 
manufacturing activities in the Joint Venture. Such proposal was 
considered by the Group inconsistent with the Group's corporate strategy 
since 1997. The Chinese partner of the Joint Venture later issued a 
written notice dated 15th September, 2004 demanding for management fee in 
the previous years amounting to RMB6,374,200 (approximately HK$ 6 
million).  The Group does not admit the validity of the claim and has 
instructed PRC lawyers to handle the matter. The Directors would consider 
appropriate settlement proposals if those are advantageous to the Group. 
For the sake of prudence, the Group made a full provision for the amount 
claimed against the income statement and would review the provision from 
time to time. 
 

5.      (LOSS) EARNINGS PER SHARE 

Including the receipt of further consideration from the disposal of 
Lakeview Project in the previous period:

The calculation of the basic and diluted (loss) earnings per share for the 
six months ended 30th September, 2004 and 2003 is computed based on the 
following data:

                                           Six months ended
                                           30th September,
                                        2004            2003
                                        HK$             HK$
                                        (unaudited)     (unaudited)
(Loss) earnings                 
Net (loss) profit for the period and (loss) earnings for the                    
  purpose of basic (loss) earnings per share    
                                (11,272 ,000)           45,313,000
                                --------------
Effect of dilutive potential ordinary shares                    
  Finance costs on convertible notes                       675,000
                                                        -----------
Earnings for the purpose of diluted earnings per share                  
                                                        45,988,000
                                                        ===========

                                          Six months ended
                                           30th September,
                                        2004            2003
                                        (unaudited)     (unaudited)
Number of shares                        
Weighted average number of ordinary shares for the                      
  purpose of basic (loss) earnings per share    
                                333,719,516             333,719,516
                                ============
Effect of dilutive potential ordinary shares                    
  - Convertible notes                                     7,199,098
                                                        ------------
Weighted average number of ordinary shares for the                      
  purpose of diluted earnings per share                 340,918,614
                                                        ============
 
Excluding the receipt of further consideration from the disposal of the 
Lakeview Project in the previous period:

The calculation of the additional basic loss per share for the six months 
ended 30th September, 2004 and 2003 is computed based on following data:

                                          Six months ended
                                          30th September,
                                        2004            2003
                                        HK$             HK$
                                        (unaudited)     (unaudited)
(Loss) earnings                 
Net (loss) profit for the period        (11,272,000)     45,313,000
                                        =============
Adjustment for:                 
  Receipt of further consideration from the disposal of                 
    the Lakeview Project                                (47,361,000)
                                                        -------------
Loss for the purpose of basic loss per share excluding                  
  the receipt of further consideration from the disposal of                     
  the Lakeview Project                                   (2,048,000)
                                                        =============
Number of shares

Same as those details above for basic (loss) earnings per share.

The additional basic loss per share figure is disclosed to give a clearer 
indication of the underlying performance of the Group.

No disclosure of the additional diluted loss per share for the period 
under review and the corresponding previous period is shown as the issue 
of potential ordinary shares during both periods from the exercise of the 
outstanding share options and convertible notes will be anti-dilutive.