Group Results

The unaudited Group profit attributable to Shareholders for the six months ended June 30,000 amounted to HK$1,119.7 million, compared with HK$1,063.3 million for the correspondingperiod last year. Operating profit amounted to HK$1,587.1 million (1999 - HK$1,481.2million). Earnings per share were 46 cents.

Interim Dividend

The Board has declared an interim dividend of 28 cents (1999 - 28 cents) per share in respect of the financial year ending December 31, 2000, payable on November 2, 2000 to Shareholders on record as at October 20,2000.

Six months ended June 30: 2000 HK$ Million   (Restated) 1998 HK$ Million         Turnover 5,769.3   4,979.5 Other net income 188.8   183.4   5,958.1   5,162.9         Direct costs and operating expenses (2,538.0)   (2,132.4) Selling and marketing expenses (189.3)   (112.4) Administrative and corporate expenses (298.0)   (282.2) Depreciation and amortisation (501.7)   (464.8)   (3,527.0)   (2,991.8)         Operating profit before borrowing costs 2,431.1   2,171.1 Borrowing costs (844.0)   (689.9) Operating profit 1,587.1   1,481.2 Share of profits less losses of associates 22.4   32.8 Profit before taxation 1,609.5   1,514.0 Taxation (Note 1) (171.5)   (141.5) Profit after taxation 1,438.0   1,372.5 Minority interests (318.3)   (309.2) Profit attributable to shareholders 1,119.7   1,063.3 Interim dividend (685.0)   (643.2) Retained profit for the period 434.7   420.1         Earnings per share       Basic and diluted (Note2) HK$0.46   HK$0.46

Six months ended June 30: 2000 HK$ Million   1999 HK$ Million The Company and its subsidiaries         Hong Kong profits tax for the period 179.2   194.0   Rebate of 10% of 1997-1998 profits tax -   (57.0)   Overseas taxation for the period 1.0   0.2   Deferred taxation (9.4)   6.9   170.8   144.1   Share of associates' Hong Kong profits tac for the period 0.7   (2.6)     171.5   141.5

(2)	Earnings per share
	The calculation of earnings per share is based on the earnings for the period of HK$1,119.7million (1999 - HK$1,063.3 million) and the weighted average of 2,446.2 million rdinary shares (1999 - 2,295.4 million ordinary shares) in issue during the period.
	The existence of unexercised options during the period ended June 30, 2000 has no dilutive ffect on the calculation of diluted earnings per share for the period ended June 30, 2000.
(3)	Change in accounting policies
	In prior years, pre-operating and pre-maturity expenses were deferred and amortised over the licence period for cable television and telecommunications operations or a period not exceeding five years from the dates the projects come into operation and less such provisions as considered appropriate by the Directors. With effect from January 1, 2000, the Group adopted an accounting policy to write off the pre-operating and pre-maturity expenses in the period in which they incurred in order to comply with Interpretation 9 "Accounting for pre-operating costs" issued by the Hong Kong Society of Accountants ("Interpretation 9"). The new accounting policy has been adopted retrospectively. In adjusting prior years' figures, revenue reserves as at January 1, 1999 were restated and decreased by HK$1,744.8 million representing the write off to the prior year consolidated profit and loss account of the unamortised balance of pre-operating and pre-maturity; expenses.
	As a result of the adoption of Interpretation 9 and restating the prior years' results andeserves, the Group's profit for the period attributable to shareholders has increased by HK$43.0 million (1999 - HK$7.0 million) as a net result of no amortisation of pre--operating and pre-maturity expenses and of write off of related expenses incurred during he period and the Group's net assets at June 30, 2000 have decreased by HK$1,444.4 million (1999 - HK$1,758.8 million).
(4)	Comparative figures
	The presentation and classification of items in the accounts have been changed due to the adoption of the requirements in SSAP 1 (revised) "Presentation of financial statements" and Interpretation 9. As a result, pre-operating and pre-maturity expenses have been written off as required by Interpretation 9 and additional line items have been included on he face of the consolidated profit and loss account as required by SSAP1 (revised), such as other net income and an analysis of expenses. Comparative figures have been reclassified to conform with the current period's presentation. Certain comparative figures have also been adjusted as a result of the change in accounting policy for pre-operating and pre-maturity expenses in order to comply with Interpretation 9, details of which are set out in Note (3).