RNS Number:2858F
Arko Holdings PLC
29 June 2006


                      FOR RELEASE AT 0700 ON 29 JUNE 2006


                   ANNOUNCEMENT TO THE LONDON STOCK EXCHANGE


                  Arko Holdings plc ("the Company" or "Arko")


                          Results of the Company
                      for the year ended 31 December 2005



The Board of Arko announces the results of the Company for the year ended 31
December 2005, which are set out below. These have today been published and will
be despatched to Arko shareholders.


Copies of these financial statements will be available from the offices of
Nabarro Wells & Co. Limited, Saddlers House, Cheapside, London EC2V 6HS.



Chairman's Statement for the year ended 31 December 2005

I am pleased to make my report to you for the financial year ended 31 December 2005.

2005 has been another difficult year with continuing losses at the Company's
principal subsidiary, Hubei Changzhou  Power Development Co. Limited (which
operates the power generation plant), although our two other major operating 
subsidiaries, Guangzhou Keen Chance Terminal Limited and Arko Logistics Limited,
continue to contribute profits to the  Group.

To stem operating losses, the Company has taken further measures to reduce
overheads, including the reduction of  headcount in Hong Kong, the
implementation of a new department cost-control scheme and a new remuneration
policy.  The  Board believes that the actions taken will improve the Company's
financial strength and allow available resources to be  concentrated more
effectively on restoring profitability.

FINANCIAL OVERVIEW

During the 12 months ended 31 December 2005, the Group made a loss of
US$5,907,500 on turnover of US$8,093,986, after  allowing for amortisation of
goodwill and depreciation of US$3,722,529 and an exceptional write off of
US$4,858,465.  Whilst this loss was disappointing it is driven by two factors;
firstly, income generated from the power plant cannot  cover the depreciation
cost of that plant, and secondly, the decrease in the profit margin achieved in
the container  terminal business. The exceptional write off arises as a result
of the irrecoverability of certain trade debts which  arose in connection with
discontinued trading activities. The loss before tax and the loss per share for
the period  amounted to US$5,566,150 and US0.2985 cents respectively, the
comparative figures for 2004 being US$7,195,665 and  US0.3624 cents.

During 2005 revenues from terminal and shipping logistics activities amounted to
US$8,093,986 reflecting the step  change in operating performance following the
re-structuring of the Company in 2004, which I reported on in my last  annual
report.

As at 31 December 2005 equity shareholders' funds were US$47,565,739.

DIVIDENDS

The Board does not recommend the payment of a dividend (2004: nil).


OPERATIONAL REVIEW

Market conditions in the terminal and shipping logistics sectors in mainland
China remained difficult and challenging.   Handling of TEUs was up by 30% and
turnover up by 34.4% compared to 2004 but overall contribution remained broadly 
unchanged due to increases in fixed costs and the effect of competition on
pricing.  Market conditions in the terminal  and shipping logistics sectors in
mainland China remained difficult and challenging. Margins remained under
pressure  from increasing and intense competition for market share to fill
excess industry capacity.  Management of the container  terminal have taken a
number of measures to reduce operating and administrative costs in 2006, and at
the same time  TEUs are ahead of the comparative period in 2005.

As mentioned in my interim report, an agreement has been reached between the
power plant company and a PRC  privately-owned enterprise.  The operation of the
power plant has been contracted to this PRC privately-owned  enterprise since
July 2005 and in return the Company will receive a fixed rental for a term of
five years.  Having  considered the past unsatisfactory performance of the power
plant, the Board is of the view that this arrangement is in  the best interests
of the Company.


PERSONNEL

Having served the Company for almost three years, Mr Shi Yan, Finance Director,
has decided to retire from the board for health reasons and he will not be
seeking re-appointment at the forthcoming Annual General Meeting. The new
Finance Director is Mr Zhang Jing who joined the board on 1August 2005.


OUTLOOK

After recent years of considerable change, the Board views the future with
cautious optimism. Market conditions in 2006 continue to be challenging and we
expect to achieve increased volumes but with pressure on pricing continuing. The
Board will continue to renew any opportunities and possibilities that will
improve the performance of the Company, in particular, the possible introduction
of strategic partners.


APPRECIATION

The Board would again like to thank all staff for the commitment,
professionalism and loyalty they have shown during  the last twelve months.

Qin Shun Chao
Chairman



Consolidated Profit and Loss Account
Year ended 31 December 2005

                                              Notes        2005           2004
                                                            US$            US$

TURNOVER                                        1
Continuing operations                                 8,093,986     16,056,581
Discontinued operations                                       -     27,639,250
                                                     ----------     ----------
                                                      8,093,986     43,695,831

Cost of sales                                        (4,783,470)   (37,593,388)
                                                     ----------     ----------
GROSS PROFIT                                          3,310,516      6,102,443

Other operating income                          2       809,137        201,774

Net operating expenses                               
                    - exceptional                    (4,858,465)    (9,555,999)
                    - other                          (4,586,887)    (3,332,972)
                                                     ----------     ----------
OPERATING (LOSS)/PROFIT                         3    (5,325,699)
                                                      
Continuing operations                                  (467,234)    (6,895,786)
Discontinued operations                              (4,858,465)       311,032
                                                     ----------     ----------
                                                     (5,325,699)    (6,584,754)

Interest receivable                             5             -        406,594
Interest payable                                6      (240,451)    (1,017,505)
                                                     ----------     ----------
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION          (5,566,150)    (7,195,665)

Taxation                                        7      (183,757)      (378,151)
                                                     ----------     ----------
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION           (5,749,907)    (7,573,816)

Minority interests                                     (157,593)       405,234
                                                     ----------     ----------
LOSS FOR THE YEAR TRANSFERRED FROM RESERVES    22    (5,907,500)    (7,168,582)
                                                     ==========     ==========

                                                        US cents      US cents
LOSS PER SHARE
Basic                                           8       (0.2985)       (0.3624)
Diluted                                                 (0.2985)       (0.3624)
                                                        ========       ========



There were no material differences between the reported profit and historical
cost profit on ordinary activities before taxation in either of the above
financial years.



                 Statement of Total Recognised Gains and Losses

For the Year ended 31 December 2005

                                                          2005            2004
                                                           US$             US$

LOSS FOR THE FINANCIAL YEAR                         (5,907,500)     (7,168,582)
Currency translation gains and losses on foreign
currency net investment                               (247,768)        115,280
                                                     ---------       ---------
TOTAL RECOGNISED GAINS AND LOSSES FOR THE YEAR      (6,155,268)     (7,053,302)
                                                     =========       =========




                                              Balance Sheets
At 31 December 2005

                   Notes                   Group                    Company
                 
                                 2005         2004         2005             2004
                                  US$          US$          US$              US$
                 
FIXED ASSETS
Intangible asset     9     22,807,051    24,201,053             -             -
Tangible assets     10     33,878,745    36,097,832             -             -
Investments in
subsidiaries        12              -             -    56,014,662    56,014,662
Investments in
associate           12         12,082        12,082             -             -
                           ----------    ----------    ----------    ----------
                           56,697,878    60,310,967    56,014,662    56,014,662
                           ----------    ----------    ----------    ----------

CURRENT ASSETS
Stocks and work
in progress         13        144,686       263,971             -             -
Debtors             14
- due within one
            year            8,809,812    12,711,830        26,111       444,218
- due after more
   than one year                    -        55,580             -             -
Cash at bank and
in hand                       653,062       421,203       147,978       104,052
                           ----------    ----------    ----------    ----------
                            9,607,560    13,452,584       174,089       548,270
CREDITORS:
amounts falling
due within one
year                 15a   (3,494,156)   (4,997,141)   (1,590,462)   (1,480,517)
                           ----------    ----------    ----------    ----------

NET CURRENT
ASSETS/(LIABILITIES)        6,113,404     8,455,443    (1,416,373)     (932,247)
                           ----------    ----------    ----------    ----------

TOTAL ASSETS
LESS CURRENT
LIABILITIES                62,811,282    68,766,410    54,598,289    55,082,415

CREDITORS:
amounts falling
due after more
than one year        15b   (2,701,923)   (2,694,844)            -             -
                           ----------    ----------    ----------    ----------

NET ASSETS                 60,109,359    66,071,566    54,598,289    55,082,415
                           ==========    ==========    ==========    ==========

CAPITAL AND RESERVES
Called up share
capital             20     14,921,520    14,921,520    14,921,520    14,921,520
Share premium       21     15,662,031    15,662,031    15,662,031    15,662,031
Merger reserve      21     26,042,970    26,042,970    26,042,970    26,042,970
Other reserve       21      1,681,573     1,681,573             -             -
Profit and loss
account             21    (10,742,355)   (4,587,087)   (2,028,232)   (1,544,106)
                           ----------    ----------    ----------    ----------
EQUITY SHAREHOLDERS'
FUNDS               22     47,565,739    53,721,007    54,598,289    55,082,415

MINORITY INTERESTS         12,543,620    12,350,559             -             -
                           ----------    ----------    ----------    ----------
                           60,109,359    66,071,566    54,598,289    55,082,415
                           ==========    ==========    ==========    ==========

Approved and authorised for issue by the board on 27 June 2006 and signed on 
its behalf by:

          QIN Shun Chao                                ZHANG Jing
          Director                                     Director


                           Consolidated Cash Flow Statement

Year ended 31 December 2005


                                               Notes        2005          2004
                                             -------         US$           US$
                                                 

Net cash inflow from operating activities       17     1,548,244     2,135,322

Returns on investments and servicing of         18      (240,451)     (610,911)
finance

Taxation                                                (163,011)     (991,678)

Capital expenditure                             18       176,062    (1,411,454)

Acquisitions and disposals                      18             -     1,080,754

CASH INFLOW BEFORE FINANCING                           1,320,844       202,033
                                                       ---------     ---------
Financing                                       18    (1,088,985)      (30,139)
                                                       ---------     ---------
INCREASE IN CASH IN THE YEAR                             231,859       171,894
                                                       =========     =========


RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT

                                                            2005          2004
                                                             US$           US$
                                                 

Increase in cash in the period                           231,859       171,894
Cash outflow from decrease in lease financing              1,735        22,183
Net cash outflow/(inflow) from net
repayment/(receipt) of loan                            1,089,311       (11,576)
Cash (inflow)/outflow from (increase
in)/repayment of advances from investors                  (2,061)      417,599
                                                       ---------     ---------
Change in net debt resulting from cash flows           1,320,844       600,100

NET DEBT AT 1 JANUARY 2005                            (3,369,705)   (3,969,175)
                                                       ---------     ---------
NET DEBT AT 31 DECEMBER 2005                    19    (2,048,861)   (3,369,705)
                                                       =========     =========

                       Notes to the Financial Statements

Year ended 31 December 2005



ACCOUNTING POLICIES

BASIS OF ACCOUNTING

The financial information has been prepared under the historical cost convention
and in accordance with applicable United Kingdom accounting standards.

BASIS OF CONSOLIDATION

On the acquisition of a subsidiary, the assets and liabilities of that
subsidiary are recorded at their fair value, reflecting their condition at the
date of acquisition.

The consolidated profit and loss account and consolidated balance sheet include
the financial statements of the Company and its subsidiary undertakings up to 31
December. The results of subsidiaries acquired are included in the consolidated
profit and loss account from the date on which control passes. Intra-group sales
and profits are eliminated on consolidation.

As permitted by Section 230 of the Companies Act 1985, a separate profit and
loss account is not presented in respect of the Company.

TURNOVER

Turnover comprises the invoiced value of sales relating to the period in respect
of trading, operation of a power plant and a terminal and provision of shipping
logistic services.

GOODWILL

Goodwill arising on consolidation represents the excess of the fair value of the
consideration paid over the fair value of the identifiable net assets acquired
and will be amortised through the profit and loss account over its estimated
useful economic life of 20 years on a straight line basis.

Provision is made for any impairment in the carrying value of the goodwill to
the extent that the asset's recoverable value in use is reduced below its
carrying value.

TANGIBLE ASSETS

Expenditure on additions and improvements is capitalized as incurred. Fixed
assets are included at historical cost less accumulated depreciation and any
impairment losses.

Tangible fixed assets, other than construction in progress, are depreciated over
their estimated useful lives on a straight line basis. The following annual
rates of depreciation have been used.

Land and buildings                         20-30 years
Plant and machinery                        10-20 years
Equipment, furniture and fixtures          5-10 years
Motor vehicles                             5-10 years
Oil storage tanks                          15 years
Vessels 10 years

Construction in progress represents a building under construction, which is
stated at cost less any impairment. Cost comprises the direct cost of
construction. Construction in progress is reclassified to the appropriate
category of tangible fixed assets when completed and ready for use.

STOCK

Stock is valued at the lower of cost and estimated net realisable value.

FOREIGN CURRENCIES

Monetary assets and liabilities expressed in foreign currencies are translated
at the rate of exchange ruling at the balance sheet date. Revenues, costs and
non-monetary assets are translated at the exchange rates ruling at the
transaction date.

Profit and losses arising from currency transactions and on settlement of
amounts receivable and payable in foreign currencies are dealt with through the
profit and loss account.

Differences on exchange arising from the translation of the assets, liabilities
and results of foreign subsidiaries are taken directly to exchange reserve.

DEFERRED TAXATION

Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a right to
pay less tax in the future have occurred at the balance sheet date. Timing
differences are differences between the group's taxable profits and its results
as stated in the financial statements that arise from the inclusion of gains and
losses in tax assessments in periods different from those in which they are
recognised in the financial statements.

Deferred tax is measured at the average tax rates that are expected to apply in
the periods in which timing differences are expected to reverse, based on tax
rates and laws that have been enacted or substantially enacted by the balance
sheet date. Deferred tax is measured on a non-discounted basis.

LIQUID RESOURCES

In accordance with FRS 1 Cash flow statements, for cash flow purposes, cash
includes net cash in hand and bank deposits payable on demand within one working
day, and liquid resources include all of the Group's other bank deposits.

PENSION COSTS

The Group contributes to defined contribution pension schemes including the Hong
Kong Mandatory Provident Fund Scheme and the People's Republic of China Central
Pension Scheme. Contributions are charged to the profit and loss account in the
period as incurred.

LEASED ASSETS AND OBLIGATIONS

Where assets are financed by leasing agreements that give rights approximating
to ownership ("finance leases"), the assets are treated as if they had been
purchased outright. The amount capitalised is the present value of the minimum
lease payments payable during the lease term. The corresponding leasing
commitments are shown as obligations to the lessor.

Lease payments are treated as consisting of capital and interest elements, and
the interest is charged to the profit and loss account in proportion to the
remaining balance outstanding.

All other leases are "operating leases" and the annual rentals are charged to
profit and loss on a straight line basis over the lease term.



1   SEGMENTAL ANALYSIS

                         Turnover           Operating (loss)/profit      Net assets/(liabilities)
                    2005          2004          2005          2004          2005          2004
                     US$           US$           US$           US$           US$           US$
Continuing
operations:
Terminal and
shipping
logistics      8,076,571     7,356,794     2,463,348       286,748    27,702,720    24,961,672
Power plant            -     8,699,787    (1,228,426)   (1,017,694)   27,694,570    29,689,890
Trading and
others            17,415             -    (1,702,156)   (3,763,555)    8,481,621    10,360,821
Mining                 -             -             -    (2,401,285)    1,088,913     1,059,183
               ---------    ----------    ----------    ----------    ----------    ----------
               8,093,986    16,056,581      (467,234)   (6,895,786)   64,967,824    66,071,566

Discontinued
operations:
Trading and
others                 -    27,639,250    (4,858,465)      311,032    (4,858,465)            -
               ---------    ----------    ----------    ----------    ----------    ----------
GROUP          8,093,986    43,695,831    (5,325,699)   (6,584,754)   60,109,359    66,071,566
               =========    ==========    ==========    ==========    ==========    ==========
Analysis by
origin:
Hong Kong      1,227,130    30,456,098    (1,245,673)   (1,710,376)   24,221,058    26,501,322
People's
Republic of
China,
excluding
Hong Kong      6,866,856    13,239,733   (3,918,817)8   (4,591,806)   36,925,369    40,531,565
United                               
Kingdom                              -      (161,209)     (282,572)   (1,037,068)     (961,321)
               ---------    ----------    ----------    ----------    ----------    ----------
GROUP          8,093,986    43,695,831    (5,325,699)   (6,584,754)   60,109,359    66,071,566
               =========    ==========    ==========    ==========    ==========    ==========


The analysis of turnover by destination is not materially different from the
analysis of turnover by origin.



2   OTHER OPERATING INCOME                            2005                2004
                                                       US$                 US$

Other                                              809,137             201,774
                                                   -------             -------
                                                   809,137             201,774
                                                   =======             =======


3   OPERATING LOSS                                           2005         2004
                                                              US$          US$

Operating loss is stated after charging/(crediting):
Auditors' remuneration                                     27,027       34,666
                         - UK
                         - Overseas                        49,551       75,471
Depreciation of tangible fixed assets                   
                         - owned assets                 2,130,181    2,062,330
                         - leased assets                    1,014          450
Amortisation of goodwill                                1,591,334    1,396,792
(Gain)/loss on disposal of fixed assets                    (4,290)     125,608
Rentals under operating leases                             
                         - land and buildings              83,254      343,555
                         - barges and containers          275,541      695,842
                         - motor vehicles                  28,846        2,157
Directors' remuneration                                    54,009      107,848
Staff costs (including directors' remuneration) 
                        - note 4                        1,078,886    1,641,410
Exchange gains                                                  -      (85,480)

Exceptional items
Provision against debtor                                4,858,465            -
Write off of amount due from a former employee of
subsidiary                                                      -    1,208,250
Loss on cancellation of projects                                -    2,416,480
Write off of deposit for the acquisition of vessels             -    1,080,145
Write off of deposit for mining equipment                       -    2,374,211
Write off of debtor relating to disposal of land use
rights                                                          -    2,476,913

                                                        =========    =========

4   EMPLOYEES                                                 2005         2004
                                                               No.          No.
The average monthly number of persons (including
directors) employed by the Group during the year was:
Management and administration                                  32          101
Sales and distribution                                          -            5
Operations                                                    518          424
                                                              ---          ---
                                                              550          530
                                                              ===          ===

                                                             2005         2004
                                                              US$          US$
Staff costs for above persons:
Wages and salaries                                       
- included in costs of sales                              581,471      644,424
- included in operating expenses                          474,582      965,446
Other pension costs                                        16,978       24,685
Other staff welfare                                         5,855        6,855
                                                        ---------    ---------
                                                        1,078,886    1,641,410
                                                        =========    =========
DIRECTORS' REMUNERATION


Fees of US$55,598 (2004: US$nil) were paid to certain directors through Winbest
Resources Limited, a company which is ultimately controlled by Chin Dynasty
Foundation Limited (see note 27). These fees are in addition to fees of
US$54,009 (2004: US$107,848) that were paid to the directors by Group companies,
as disclosed in note 3.



5   INTEREST RECEIVABLE                                2005               2004
                                                        US$                US$

Bank interest receivable                                 -               3,220
Other interest receivable                                -             403,374
                                                        ---            -------
                                                         -             406,594
                                                        ===            =======

6   INTEREST PAYABLE                                   2005               2004
                                                        US$                US$

Bank loans                                          113,093            125,698
Other loans                                         127,276            891,465
Finance charges payable under finance lease              82                342
                                                    -------          ---------
                                                    240,451          1,017,505
                                                    =======          =========

7  TAXATION                                            2005              2004
                                                        US$               US$
   Foreign tax
   Current year                                     183,757           378,151
                                                    -------           -------
   Tax on profit on ordinary                        183,757           378,151
   activities                                       =======           =======

   Factors affecting tax                               2005              2004
   charge for the year:                                 US$               US$

   The tax assessed differs
   from the standard rate of
   corporation tax in the UK
   (30%). The differences
   are explained below:
   Loss on ordinary                              (5,566,150)      (7,195,665)
   activities before tax                          ---------        ---------

   Loss on ordinary                              (1,669,845)      (2,158,700)
   activities multiplied by
   standard rate of
   corporation tax in the UK
   of 30% (2004: 30%)   
   Effects of:
   Addition to tax losses                            55,075           16,864
   Expenses not deductible                        2,397,109        2,732,717
   for tax purposes
   Different tax rates on                          (184,295)         184,362
   overseas earnings
   Non-taxable income                              (414,287)        (397,092)
                                                  ---------        ---------
   Tax charge for the year                          183,757          378,151
                                                  =========        =========

In respect of subsidiary companies operating in Hong Kong, provisions for Hong
Kong profits tax are calculated at 17.5% (2004: 17.5%) of the estimated
assessable profits for the year.

Subsidiary companies operating in the People's Republic of China are subject to
Enterprise Income Tax ('EIT') at rates ranging from 15% to 33%. However, certain
subsidiaries are subject to tax holidays from the local tax authorities under
income tax law. Others had tax losses brought forward from previous years.
Accordingly, no provision for EIT has been made for the year.

No deferred tax is recognised on the unremitted earnings of the overseas
subsidiary companies, as no dividend payments due to UK parent company are
expected to be made in the foreseeable future. A deferred tax asset of US$71,939
(2004: US$16,864) has not been recognised in respect of tax losses carried
forward due to the uncertainty of the timing of future taxable profits against
which these losses can be offset.

8   LOSS PER SHARE

Basic loss per share for the year is based on a loss of US$5,907,500 (2004:
US$7,168,582) and the weighted average number of shares in issue of
1,978,895,097 (2004: 1,978,017,406).

Dilutive loss per share for 2005 and 2004 is equivalent to basic loss per share
as the effect of dilutive potential ordinary shares would decrease the net loss
per share and so the potential ordinary shares are not treated as dilutive in
accordance with FRS22 Earnings per share.


9   INTANGIBLE FIXED ASSET - GROUP                                 Goodwill on
                                                                acquisition of
                                                                  subsidiaries
                                                                           US$
Cost                                                                
At 1 January 2005 and 31 December 2005                              27,890,148
                                                                   -----------
Amortisation                                                         
At 1 January 2005                                                    3,689,095
Exchange difference                                                   (197,332)
Charge for the year                                                  1,591,334
                                                                   -----------
At 31 December 2005                                                  5,083,097
                                                                   -----------
Net book value                                                      
At 31 December 2005                                                 22,807,051
                                                                   ===========
At 31 December 2004                                                 24,201,053
                                                                   ===========


10  TANGIBLE       Land and      Plant and    Furniture,   Oil       Vessels     Motor      Construction   Total      
    FIXED ASSETS   buildings     machinery    fixtures     storage               vehicles   in progress               
                                              and          tanks                                                      
                                              equipment                                                               
                                                                                                                      
  GROUP            US$           US$          US$          US$       US$         US$        US$            US$        
  Cost                                                                                                                
  At 1 January     21,752,518    20,922,215   8,050,561    173,053   3,105,591   677,715    1,755,414      56,437,067 
  2005                                                                                                                
  Exchange         32,989        41,949       (1,436)      -         -           2,719      74,258         150,479    
  differences                                                                                                         
  Transfers        -             65,769       -            -         -           -          (65,769)       -          
  Additions        279,602       9,421        73,697       -         -           27,016     -              389,736    
  Disposals        -             -            (175,445)    -         (659,272)   (20,509)   -              (855,226)  
                   ----------    ----------   ---------   --------   ---------   --------   ----------     -----------  
                                                                                          
  At 31 December   22,065,109    21,039,354   7,947,377    173,053   2,446,319   686,941    1,763,903      56,122,056 
  2005             ==========    ==========   =========   ========   =========   ========   ==========     ===========  
                                                                                                
                                                                                                                      
  Depreciation                                                                                                        
  At 1 January     6,153,407     8,554,555    4,110,806    13,460    1,035,722   471,285    -              20,339,235 
  2005                                                                                                                
  Exchange         28,713        40,970       (770)        -         -           (2,314)    -              66,599     
  differences                                                                                                         
  Charge for the   402,006       875,282      543,810      -         257,133     52,731     -              2,131,195  
  year                                                                                                                
  Disposals        -             -            (72,801)     -         (213,867)   (7,050)    -              (293,718)  
                   ----------    ----------   ---------   --------   ---------   --------   ----------     -----------  
                                                                                                                      
  At 31 December   6,584,126     9,470,807    4,581,045    13,460    1,079,221   514,652    -              22,243,311 
  2005             ==========    ==========   =========   ========   =========   ========   ==========     ===========  
                                                                                                   
                                                                                                                      
  At 31 December   15,480,983    11,658,547   3,366,332    159,593   1,367,098   172,289    1,763,903      33,878,745 
  2005             ==========    ==========   =========   ========   =========   ========   ==========     ===========  
                                                                                                   
                                                                                                                      
  At 31 December   15,599,111    12,367,660   3,939,755    159,593   2,069,869   206,430    1,755,414      36,097,832 
  2004             ==========    ==========   =========   ========   =========   ========   ==========     ===========  
                                                                                                   
                                                                                                                      
 

10   TANGIBLE FIXED ASSETS (continued)

At 31 December 2005, the net book values of land and buildings, plant and
machinery, fixtures and equipment are further analysed as follows:

                                               Terminal     Power plant   Mining zone        Others              Total 
                                                    US$             US$           US$           US$                US$  
          Land                                  
          - short leases                      2,756,615               -             -             -          2,756,615  
          - unspecified leases                1,378,309               -             -             -          1,378,309  
                                             ----------     ------------   -----------    ---------        -----------
                                              4,134,924               -             -             -          4,134,924  
          Buildings                           8,586,987       1,874,644       884,428             -         11,346,059 
                                             ----------     ------------   -----------    ---------        -----------
          Land and buildings                 12,721,911       1,874,644       884,428             -         15,480,983 
                                             ==========     ============   ===========    =========         ==========
          Plant and machinery                 4,656,414       6,912,133             -             -         11,568,547 
                                             ==========     ============   ===========    =========         ==========  
          Furniture, fixtures and equipment     110,172       2,204,723        10,544     1,040,893          3,366,332  
                                             ==========     ============   ===========    =========         ==========  
At 31 December 2003, a guarantee was given by the Company's subsidiary, Keen
Chance Terminal (GZ) Company Limited ("KCT") for banking facilities granted to a
fellow investor, Miaotou Economic Development Company Limited ("MEDCL"), in KCT
(see note 26(b)).

The Group obtained land use right and real estates certificates on the
terminal's land under short leases from the local land authority. Land with a
value of US$ 1,378,309 held under unspecified leases of the terminal is land
held for industrial use for which the relevant land use right certificate was
not obtained and thus the term of the lease has yet to be agreed.

Included in the land and buildings of the power plant are short leases land on
which the power plant, related ash storage pools and ancillary facilities are
located. In addition, they also include land held for industrial use in respect
of which the Group has not obtained the relevant land use right certificate.

Under the law of the People's Republic of China, the land held for industrial
use and the buildings without building ownership certificates can only be used
for identified industrial purposes. The Group did not obtain any building
ownership certificates in respect of the buildings of the Group. The Group
cannot legally sell or mortgage such properties until the relevant land taxes
have been paid to the local land authority. However there is no binding
agreement for the taxes to be paid.

At 31 December 2005, the net book value of fixed assets held under finance
leases amounted to US$Nil (2004:US$3,368).


11   INVESTMENTS                                              Investment in
                                                               subsidiaries
     COMPANY                                                            US$
     Cost
     At 1 January 2005 and 31 December 2005                      56,014,662


At 31 December 2005, the Company held 100% of the ordinary shares of Arko
Offshore Holdings Limited, a company incorporated in the British Virgin Island
("BVI"), whose principal activity was that of a holding company. Arko Offshore
Holdings Limited had the following subsidiary undertakings:

  Name                         Holding ordinary                  Business activities         Country of incorporation 
                               shares/registered capital                                                              

  Arko Energy Limited          100%                              Investment holding          British Virgin Islands   

  Arko Consultants Limited     100%                              Providing management        British Virgin Islands   
                                                                 services                                             

  Arko Pacific Limited         100%                              Investment holding          British Virgin Islands   

  Long Prosperity Industrial   100%                              Investment holding          Republic of Seychelles   
  Limited*                                                                                                            

  Arko Silicon (Hubei)         100%                              Dormant                     People's Republic        
  Limited*                                                                                   of China                 

  Sanko Mineral Limited*       100%                              Sub-letting of yachts,      British Virgin Islands   
                                                                 ships                                                
                                                                 and vessels                                          

  Arko Logistics Limited*      100%                              Providing logistics         Hong Kong                
                                                                 and related services                                 

  Arko Satellite Limited*      100%                              Dormant                     British Virgin Islands   

  Arko Terminal Limited        100%                              Investment holding          Republic of Seychelles   
  ("ATL")*                                                                                                            

  Changzhou Power              59.2%                             Operating a coal-fired      People's Republic        
  Development Company                                            thermal power plant         of China                 
  Limited*                                                                                                            

  Keen Chance Terminal (GZ)    40%                               Investing in and            People's Republic        
  Company Limited*                                               operation                   of China                 
                                                                 of a terminal and                                    
                                                                 providing                                            
                                                                 logistics services                                   

  Fujian Sanko Mining          70%                               Dormant                     People's Republic        
  Limited*                                                                                   of China                 


       * held by a subsidiary of Arko Offshore Holdings Limited    

                                        
The 40% equity interest in Keen Chance Terminal (GZ) Company Limited "KCT"
previously held by Keen Lloyd Energy Limited ("KLEL"), a subsidiary of Keen
Lloyd Holdings Limited ("KLHL"), has been transferred to ATL. The transfer has
been submitted for registration to the relevant PRC authorities.

Pursuant to an agreement dated 5 April 2002 entered into between KLEL and
Miaotou Economic Development Company Limited "MEDCL", a shareholder of KCT who
held a 30% equity interest in KCT, MEDCL agreed to vote in accordance with the
instructions of KLEL at board meetings in view of its indebtedness to KLEL, for
an approximate sum of RMB78 million (equivalent to US$9.4 million), and KLEL
intended to convert the outstanding loan into the registered capital of KCT.

On 22 April 2003, KLEL entered into a shareholder agreement with MEDCL and
Harbour Economic Development Company Limited ("HEDCL"), another shareholder of
KCT, whereby all parties agreed that MEDCL has unconditionally transferred the
authority empowered to its directors representative (including their rights and
obligations) to KLEL until KLEL transferred the 40% equity interests in KCL to
ATL to reiterate the aforesaid agreement dated 5 April 2002.


11   INVESTMENTS (continued)

On 16 May 2003, a supplemental agreement was entered into between ATL, KLEL,
MEDCL and HEDCL by which all parties agreed that the above authority transferred
to KLEL would be vested in ATL after KLEL completed the transfer of equity
interests in KCT to ATL.

In accordance with the terms and conditions set out in the above agreements,
KLEL effectively controls the board of KCT and this arrangement has been
confirmed by the shareholders of KCT. In 2002, a Hong Kong lawyer expressed his
view that KCT is a subsidiary of KLEL under Hong Kong Company Law. Control of
KLEL has been transferred to ATL and therefore in the opinion of the directors,
KCT is a subsidiary of ATL under UK Companies Act 1985.

In addition, KCT will be a legal subsidiary of ATL immediately upon the
registration of the transfer of the 40% of equity in KCT from KLEL to ATL.


12   INVESTMENT IN ASSOCIATE                                 2005         2004
                                                              US$          US$

Share of net assets                                        12,082       12,082
                                                           ======       ======


The investment in associate represents 20% of the ordinary shares in a company
incorporated in the People's Republic of China, Guangzhou Keen Lloyd Shipping
Agents Limited, at consideration of RMB 100,000 (US$12,082). The associate is
principally engaged in provision of logistics and related services.


13   STOCKS


Stocks represent coal and consumables. There was no significant difference
between the replacement cost and the value shown in the balance sheet.


14   DEBTORS                                        Group              Company
                                       2005          2004      2005       2004
                                        US$           US$       US$        US$
Amounts falling due within one
year:
Trade debtors                     4,511,313     4,001,613         -          -
Other debtors (note i)            4,298,499     8,710,217    26,111          -
                                  ---------    ----------    ------    -------
                                  8,809,812    12,711,830    26,111    444,218
                                  =========    ==========    ======    =======
Amounts falling due after more
than one year:
Security deposit (note ii)                -        55,580         -          -
                                  ---------    ----------    ------    -------
                                          -        55,580         -          -
                                  =========    ==========    ======    =======


14   DEBTORS (continued)

Notes:

(i)  Included in other debtors at 31 December 2005 are amounts
     due from (non-group) related companies as follows:

     -  Tanko Electronics Limited - US$14,114 (2004: US$6,318)

     -  Guangzhou Tung Lloyd Shipping Agency Company Limited - US$170,172
        (2004: US$Nil)

     -  Guangzhou Winko Investment Ltd - US$91,776 (2004: US$Nil)

     -  Guangzhou Keen Lloyd Copper Industry Company Limited - US$130,351
        (2004: US$Nil)

     The amounts are interest free, unsecured and repayable on demand.

(ii) From 2002, prepayments were made to local suppliers for stabilizing the
     sourcing of coal supply during the period from 5 March 2002 to 4 March 2004.
     During the year the remainder of the payment has been utilised by the Group.


15   CREDITORS                                 Group                   Company
                                   2005         2004         2005         2004
                                    US$          US$          US$          US$
(a) Amounts falling due
within one year:
Bank loans                            -        9,449            -            -
Obligations under finance             -        1,735            -            -
leases (note iii)
Trade creditors                 739,070    1,673,686            -            -
Amount due to immediate
holding company (note i)              -    1,000,000            -            -
Amount due to related
companies (note ii)                   -       84,880            -            -
Amount due to subsidiary              -            -    1,493,649    1,362,872
Corporation taxes               710,683      689,937            -            -
Other creditors and accruals  2,044,403    1,537,454       96,813      117,645
                              ---------    ---------    ---------    ---------
                              3,494,156    4,997,141    1,590,462    1,480,517
                              =========    =========    =========    =========

(b) Amounts falling due
    after one year:

Bank loan (note iv)           1,915,246    1,910,228            -            -
Advances from fellow
investors
in subsidiary companies         786,677      784,616            -            -
(note v)                      ---------    ---------    ---------    ---------
                              2,701,923    2,694,844            -            -
                              =========    =========    =========    =========


15  CREDITORS (continued)

Notes

(i)   Amount is due to Keen Lloyd Holdings Limited and is interest-free and 
      unsecured.

(ii)  Amounts is due to Arko Management Limited and Guangzhou Keen Lloyd Copper 
      Industry Company Limited. The amounts due are unsecured and interest free.

(iii) Obligations under finance leases are secured on the underlying assets and 
      repayable between two to five years.

(iv)  The bank loan is unsecured. Interest accrues at the rate of 5.85% per 
      annum.

(v)   An amount was advanced from Miaotou Economic Development Company
      Limited of US$718,004 (2004: US$716,123) and a further amount from Walton
      Enterprises Limited of US$68,673 (2004: US$68,493).

 
16  BANK LOANS, OTHER LOANS AND FINANCIAL INSTRUMENTS     2005         2004
                                                           US$          US$
    Analysis of debt maturity
    Amounts payable
    In one year or less or on demand                         -        9,449
    Two to five years                                2,701,923    2,694,844
                                                     ---------    ---------
                                                     2,701,923    2,704,293
                                                     =========    =========
    Obligations under finance leases
    Amounts payable:
    Within one year                                          -        1,735
                                                     =========    =========
    Bank, overdrafts, loans and
    finance leases analysis by origin:
    Hong Kong                                                -       11,184
    People's Republic of China                       2,701,923    2,694,844
                                                     ---------    ---------
                                                     2,701,923    2,706,028
                                                     =========    =========

The Company had no other financial liabilities.

The Group holds financial instruments in order to finance its operations and to
manage interest rate and currency risks. Group operations are financed by means
of retained profits and a mixture of both short and medium term debts. The Group
borrows, through banks and from related parties, in local currencies at fixed
rates. The Group does not trade in any way in financial instruments.

The principal risks arising from the Group's financial instruments are interest
rate risk, liquidity risk and exchange rate risk. The Group board reviews and
agrees policies for managing each of these risks and these are summarised below.
These policies have been developed during the current accounting period as a
consequence of the Group's expansion.

Financial instruments such as investments in and advances to subsidiary
undertakings and short term debtors and creditors have been excluded from the
disclosures below.

Details of security are given in note 15.


16  BANK LOANS, OTHER LOANS AND FINANCIAL INSTRUMENTS (continued)     

Interest rate risk

Group borrowings are held in local currencies. Current loans are at fixed rates.
The Group's policy for future borrowings will be to take floating rates unless
fixed rate finance is available at particularly attractive rates.

The interest rate risk profile of the Group's financial liabilities and assets
are as follows:

Financial liabilities

Currency      Total   Interest-free Fixed rate       Fixed rate       Fixed rate
                                                       weighted         weighted
                                               average interest   average period
                                                        rate at   for which rate
                                                                        is fixed

                US$           US$          US$                %            Years

2005
RMB       2,701,923       786,677    1,915,246             5.85                1
          ---------       -------    ---------    
          2,701,923       786,677    1,915,246
          =========       =======    =========        
2004
Hong Kong    
dollars      11,184             -       11,184            11.96                2
RMB       2,694,844       784,616    1,910,228             5.85                1
          ---------       -------    ---------   
          2,706,028       784,616    1,921,412
          =========       =======    =========    

Financial assets

Currency                               Floating rate               Floating rate
                                                2005                        2004
                                                 US$                         US$

Hong Kong dollars                            396,712                     375,114
RMB                                          256,350                      46,089
                                             -------                     -------
                                             653,062                     421,203
                                             =======                     =======

Financial assets represent cash at bank and in hand. There were no fixed rate
financial assets.

The directors consider that the fair value of the Group's financial assets and
liabilities was the same as their carrying value.

Liquidity risk

The Group's policy is to ensure that sufficient facilities would be available to
satisfy its peak borrowing requirements. As at 31 December 2005, the Group was
within its bank borrowing facilities. The Group had drawn down all committed
borrowing facilities at the year end.

Foreign currency risk

All trading is undertaken in local currencies. Funding is also in local
currencies other than inter- company investments and loans and it is not the
Group's policy to cover these amounts as the date of repayment is uncertain.

17   RECONCILIATION OF OPERATING LOSS TO NET CASH FLOW FROM OPERATING ACTIVITIES

                                                          2005           2004
                                                           US$            US$

Operating loss                                      (5,325,699)    (6,584,754)
Depreciation of tangible fixed assets                2,131,195      2,062,780
Amortisation of goodwill                             1,591,334      1,396,792
(Gain)/loss on disposal of tangible fixed assets        (4,290)       125,608
Decrease in stocks                                     119,285          9,965
Decrease in debtors                                  3,957,598      5,903,021
Decrease in creditors                                 (427,667)    (1,016,449)
Exchange adjustments                                  (493,512)       238,359
                                                     ----------    -----------
Net cash flow from operating activities              1,548,244      2,135,322
                                                     ==========    ===========


18   ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE     2005          2004
      CASH FLOW STATEMENT                                   US$           US$

Returns on investment and servicing of finance
Interest received                                             -       406,594
Interest paid                                          (240,451)   (1,017,505)
                                                     ----------    -----------
Net cash outflow from returns on investment and
servicing of finance                                   (240,451)     (610,911)
                                                     ===========   ===========
Capital expenditure and financial investment
Payments to acquire tangible fixed assets              (389,736)   (1,846,807)
Sale of tangible fixed assets                            565,798       435,353
                                                     -----------  -----------
Net cash inflow/(outflow) from capital expenditure      176,062    (1,411,454)
                                                     ===========   ===========       
Acquisitions and disposals
Purchase of associate                                         -       (12,082)
Sale of associate                                             -     1,092,836
                                                     ----------    -----------
Net cash outflow from acquisitions and disposals              -     1,080,754
                                                     ===========   ===========
Financing
Issue of equity share capital                                 -       398,067
Capital element of finance lease rental payments         (1,735)      (22,183)
Net (decrease)/increase in bank and other borrowings (1,089,311)       11,576
Increase/(decrease) in advances from investors            2,061      (417,599)
                                                     ----------    -----------
Net cash inflow from financing                       (1,088,985)      (30,139)
                                                     ===========   ===========


19   ANALYSIS OF CHANGES IN NET DEBT

                                            At         Cash                 At
                                     1 January        flows        31 December
                                          2005                            2005
                                           US$          US$                US$

Cash in hand and at bank               421,203      231,859            653,062
Obligations under finance leases        (1,735)       1,735                  -
Advances from investors               (784,616)      (2,061)          (786,677)
Other loans                         (3,004,557)   1,089,311         (1,915,246)
                                    -----------   ----------        -----------
                           Total    (3,369,705)   1,320,844         (2,048,861)
                                    ===========   ==========        ===========

20   SHARE CAPITAL                      2005                          2004
     
                               Number                #        Number                   #

Authorised:               
Ordinary shares of 0.5p   30,000,000,000   150,000,000    30,000,000,000     150,000,000
each                      ==============   ===========    ==============     ===========
                                     
Equivalent to:                                     US$                               US$
                                           265,395,280                       265,395,280
                                           ===========                       ===========  
Allotted, called
up and fully                                      
paid:                                    
Ordinary shares                                    US$                               US$
of 0.5p each               1,978,895,097    14,921,520     1,978,895,097      14,921,520
                           =============    ==========     =============      ==========          


Share options

The Company operates a share option scheme. During the year ended 31 December
2002, the Company granted share options to its advisors as part of the
remuneration for the services provided. Details of share options transactions
during the year ended 31 December 2005 are set out below:

                                                    Number of       Number of       Number of
Date granted        Exercisable        Exercise        shares          shares          shares
                From           To      price     At 1 January  granted/lapsed  At 31 December
                                                         2005                            2005

10.5.2002     27.6.2002    10.5.2007      2p          300,000               -         300,000
                                                      =======          ======         =======


21  RESERVES                                         Statutory  
                              Share                    surplus          Profit  
                            Premium        Merger      Reserve        and loss
                            account       reserve     (note i)         account
                                US$           US$          US$             US$
GROUP
At 1 January
2005                     15,662,031    26,042,970    1,681,573      (4,587,087)
Loss for the
year                              -             -            -      (5,907,500)
Exchange
movements                         -             -            -        (247,768)
Appropriations                    -             -            -               -
                         ----------    ----------    ---------      ----------
At 31 December 2005      15,662,031    26,042,970    1,681,573     (10,742,355)
                         ==========    ==========    =========      ==========      
COMPANY
At 1 January 2005        15,662,031    26,042,970            -      (1,544,106)
Exchange
movements                         -             -            -        (286,862)
Loss for the
year                              -             -            -        (197,264)
                         ----------    ----------    ---------      ----------
At 31 December 2005       1,566,031     2,604,970            -      (2,028,232)
                         ==========    ==========    =========      ==========      

Note:

(i) Statutory surplus reserve:

In accordance with the law of the People's Republic of China and the articles of
association of certain of the Company's subsidiaries, directors of these
subsidiaries may at their discretion make appropriations to a statutory surplus
reserve equivalent to 10% of the subsidiaries' net profits. Appropriations may
also be made to statutory public welfare reserve equivalent to 5 to 10% of the
net profits of these operating subsidiaries. Distribution of profits to
shareholders can only be made after such appropriations.

The statutory surplus reserve may be used to reduce any losses incurred or be
capitalised as paid up capital. The use of the statutory public welfare reserve
is restricted to capital expenditure incurred for staff welfare facilities. The
statutory public welfare reserve is not available for distribution.


22    RECONCILIATION OF MOVEMENT IN EQUITY 
      SHAREHOLDERS' FUNDS                                   2005          2004
                                                             US$           US$

Loss for the financial year                           (5,907,500)   (7,168,582)
Other recognised gains and losses                       (247,768)      115,280
New share capital subscribed                                   -       398,067
                                                      -----------   ----------
Net reduction in shareholders' funds                  (6,155,268)   (6,655,235)
Opening shareholders' funds                           53,721,007    60,376,242
                                                      ----------    ----------
Closing shareholders' funds                           47,565,739    53,721,007
                                                      ==========    ==========

23    RELATED PARTY TRANSACTIONS

Other than transactions otherwise disclosed in the financial statements, the
Group had the following material transactions which were carried out on an arm's
length basis with related parties during the year:

                                                                              Year ended          Year ended
Name of company                          Note  Nature                        31 December         31 December 
                                                                                    2005                2004
                                                                                     US$                 US$
  Guangzhou Tung Lloyd                   (a)   Barge hire charges                      -             300,914          
  Shipping Company Limited                     Agency charges                          -             133,606          
  Guangzhou Tung Lloyd Shipping                     
  Agency Limited                         (a)   Agency charges                     72,587              73,367 
  Winko Metal Limited                    (c)   Hiring charges for Motor Vehicle   23,144              49,215           
  Winko Resources Limited                (c)   Hiring charges for Motor Vehicle        -              63,981           
  Keen Lloyd Holdings Limited                  Management fee received                 -              27,101           
  Young Crystal Limited                  (b)   Hiring charges for Motor Vehicle        -               7,931            
  Tanko Electronics Limited              (c)   Management fee received            17,414              51,158           
  Arko Harbour Limited                   (d)   Acquisition of companies                -         106,348,646      
  Arko Investment Limited                (d)   Disposal of subsidiary                  -          20,029,841       
  Arko Management Limited                (d)   Acquisition of fixed assets             -              73,040           
  Keen Lloyd Copper Ind (Guangdong)      (c)   Sales                                   -          12,499,441       
  Limited                                      Purchases                               -          12,079,983       
  Guangdong Winko Investment Limited     (e)   Management fee paid                     -              26,526 


The Company has taken advantage of the exemption conferred in FRS8 Related
parties from disclosing transactions with Group companies.


23   RELATED PARTY TRANSACTIONS (continued)

Notes:

(a)  A company in which the Chairman, Mr Qin Shun Chao, is a director.
(b)  A company in which Ms Angela Leung Suk Ching is a director.
(c)  A company controlled by Keen Lloyd Holdings Limited (see note 27).
(d)  Subsidiary company disposed during the year ended 31 December 2004.
(e)  A company in which Mr Qin Shun Chao is a director


24   OPERATING LEASE COMMITMENTS

At 31 December 2005, the Group was committed to make the following payments
during the next year in respect of land and building under operating leases:

                                                   2005                   2004
                                                    US$                    US$
Leases which expire:
in the next year                                 58,896                207,826
in the second to fifth years                          -                 55,369
                                                 ------                -------
                                                 58,896                263,195
                                                 ======                =======

25   CAPITAL COMMITMENTS

At 31 December 2005, the Group had capital commitments contracted for as
follows:

-    in respect of the acquisition of a gantry from an non-related supplier in 
     the sum of RMB 4,700,000 intended for use by a subsidiary company, Keen 
     Chance Terminal (GZ) Company Limited.

-    in respect of the acquisition of eight vessels amounting to US$Nil
     (2004: US$49,320,000).

-    in respect of the acquisition of plant, machinery and equipment
     amounting to US$Nil, primarily mining equipment intended for use by a
     subsidiary, Fujian Sanko Mining Limited (2004: US$40,399,000)

The Company had no capital commitments.


26   CONTINGENT LIABILITIES

(a)   On 23 July 1998, a subsidiary of the Company, Keen Chance Terminal (GZ)
Company Limited ("KCT"), gave a guarantee for RMB50 million (equivalent to
approximately US$5.9 million) in favour of the Huangpu Branch of the Industry
and Commercial Bank of China for banking facilities granted to Harbour Economic
Development Company Limited ("HEDCL"), a fellow investor in KCT and its ultimate
controlling party, Guangzhou Huangpu Foreign Trade Group Company Limited and
secured over their equity interests in KCT. HEDCL was unable to repay the loans
due to the bank. The bank took action against KCT to enforce the guarantee for
the outstanding loan.

(b)  On 9 November 1999, KCT gave a guarantee for RMB18 million (equivalent to
approximately US$2.1 million) in favour of Nangang Rural Credit Co-operation
Bank for banking facilities granted to Miaotou Economic Development Company
Limited ("MEDCL"), a fellow investor in KCT, secured over its equity interests
in KCT. MEDCL was unable to repay the outstanding loan.


26   CONTINGENT LIABILITIES (continued)

On 27 September 2001, the Guangzhou Law Court delivered an order and notice that
the guarantees above were invalid and MEDCL's equity interest in KCT was frozen.

Based on legal advice, the equity interests had no material impact on the
operations of KCT and the directors consider that no provision is required.

KCT maintains that the guarantee given was invalid on the following grounds:

(1)  such guarantee did not have approval from the board of directors of KCT;

(2)  in accordance with the law of the People's Republic of China, the board
     of directors and the management of KCT cannot give KCT's properties for
     guarantee to its shareholder; and

(3)  the controlling party of HEDCL has not held a valid business licence
     since 1998 and ceased operations in 1999. In accordance with the banking
     regulations of the People's Republic of China, the bank cannot lend money 
     to enterprises which do not have a valid business licence.

The legal proceedings are still in progress. Based on legal advice, the
directors are of the opinion that, the loan agreement was void because it was
illegal and accordingly, the guarantee contract was also invalid.

Furthermore, Keen Lloyd Holdings Limited, the Company's parent company, has
indemnified the Group against any loss KCT will suffer should the guarantee be
enforceable.

Accordingly, the directors are of the opinion that no provision should be made
in the financial statements for any possible claim from the bank in respect of
the litigation.


27   ULTIMATE CONTROLLING PARTY

The directors consider that Chin Dynasty Foundation Limited ("CDFL"), a company
incorporated in the British Virgin Islands is the ultimate holding company. CDFL
is controlled by the Chin Dynasty Fund.

The Chin Dynasty Fund is a discretionary trust where Mr Qin Shun Chao is the
settlor. Members of Mr Qin's family are the potential beneficiaries of the
trust.

No group financial statements for CDFL are published.

The company's immediate parent company is Keen Lloyd Holdings Limited, a company
incorporated in the British Virgin Islands.

28   EXCHANGE RATE

The US dollar to sterling exchange rate at 31 December 2005 was US$1.7168/#
(2004: US$1.199/#)

The announcement set out above does not constitute a full financial statement of
the Company's affairs for the year ended 31 December 2005. The Company's
auditors have reported on the full accounts for the said year and have
accompanied them with an unqualified report. The accounts have yet to be
delivered to the Registrar of Companies. The annual report and accounts will be
available from the Company's nominated adviser, Nabarro Wells & Co. Limited,
Saddlers House, Cheapside, London EC2V 6HS.



Enquiries:

Angela Leung - Arko Holdings plc
Tel: 00 852 2219 9999 Email: angelal@arkoholdings.com


Robert Lo - Nabarro Wells & Co. Limited
Tel: 020 7710 7407 Email: robertlo@nabarro-wells.co.uk




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
FR FPMMTMMTTBRF

Arko (LSE:AKO)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024 Click aqui para mais gráficos Arko.
Arko (LSE:AKO)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024 Click aqui para mais gráficos Arko.