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					                            Table of Contents


        I          Financial Highlights for 1H 2004/2005FY
        II         Market and Business Review
        III        Market and Business Outlook


        Appendix: Financial Details




Chaoda Modern Agriculture            1
      超大現代農業
                            Chaoda Modern Agriculture
                                  超大现代农业

      Financial Highlights for 1H 2004/2005FY
          (For the period ended 31 December 2004)




Chaoda Modern Agriculture            2
      超大現代農業
                 2005FY Interim Results Summary
        Significant Increase in Sales by 23% and Net Profit by 26% (before exceptional
        item) and 64% (after exceptional item)
                                                         1H 2005FY        1H 2004FY      Change
                                                          RMB mn           RMB mn          %
     Sales                                                 1,053             858           23
     EBITDA*                                                555              456           22
     Profit before M.I. & Taxation*                         510              403           27
     Profit attributable to shareholders
                                                            509              403           26
     - Before exceptional item
     Exceptional item : Gain arising from
                                                            150               -           N/A
        adoption of SSAP36
     Profit attributable to shareholders
                                                            659              403           64
     - After exceptional item
     Earning per share – before exceptional item
          - Basic                                      RMB 21.7 cents   RMB 19.9 cents     9
          - Diluted                                    RMB 21.3 cents   RMB 19.7 cents     8
     Earning per share – after exceptional item
          - Basic                                      RMB 28.1 cents   RMB 19.9 cents     41
          - Diluted                                    RMB 27.6 cents   RMB 19.7 cents     40
                  * : Excluding exceptional item
Chaoda Modern Agriculture                          3
      超大現代農業
                            Sales and Gross Margins

       Core business of vegetables and fruits accounted for 93% of total business
       with a gross margin of 69%

         Segment
                                Sales (RMB mn)       Change      Gross Margin
         Breakdown

                             1H 2005FY   1H 2004FY     %      1H 2005FY   1H 2004FY

         Crops                 982         774         27       69%         69%

         Livestock              22          20         10       66%         78%

         Supermarkets           49          64        (23)      8%          10%

         Total                1,053        858         23       66%         65%




Chaoda Modern Agriculture                        4
      超大現代農業
          Main Profitability Benchmarks Increased by more
                   than 20% with Healthy Margins


             Profits and Margins                   1H 2005FY        1H 2004FY   Change
                                                        RMB mn        RMB mn      %
            EBITDA*                                      555            456       22

            EBITDA margin                                53%            53%
            Depreciation & amortisation                  70              58       21
            EBIT*                                        486            398       22
            EBIT margin                                  46%            46%
            Net profit*                                  509            403       26
            Net profit margin                            48%            47%


              * : Excluding exceptional item for current period 31 Dec 2004




Chaoda Modern Agriculture                           5
      超大現代農業
                                Cash Flow Summary

             High capital investment to gain market share

       Cash Flow Summary                                      1H 2005FY   1H 2004FY   Change

                                                               RMB mn      RMB mn       %

       Cash & cash equivalents at 1 July                         944         743        27
       Cash generated from operations                            587         401        46
       Net cash used in investing activities                    (686)       (375)       83
       Free cash flow                                           (99)         26        (381)


       Net cash inflow/(used) from financing activities         (37)        (352)      (89)


       Cash & cash equivalents at 31 Dec                         808         417        94




Chaoda Modern Agriculture                                 6
      超大現代農業
                        Balance Sheet At-A-Glance

                                         31/12/2004   30/6/2004   Change
                                          RMB mn      RMB mn        %
             Fixed assets                  1,460       1,426       2.4
             Construction-in-progress       408         409          -
             Long-term prepaid rentals     1,447       1,138        27
             Biological assets              279          -         N/A
             Interests in associates        298         272         10
             Other long-term assets         156         163         (4)

             Net current assets            1,061       1,238       (14)
             Net assets                    5,109       4,646        10
             Shareholders’ funds           5,108       4,644        10
             Minority interests              1           2         (56)




Chaoda Modern Agriculture                    7
      超大現代農業
                             Turnover and Profit Trends
                               Turnover                                                              EBITDA
             RMB mn                                                           RMB mn                               983
                                              1,862
  Interim      2000                                                               1000
                             1,485                                                                776
  Annual       1500
                                                                                   800
                                                         1,053                                                              555*
                                        858                                        600                     456
               1000    651                                                                351
                                                                                   400
                500                                                                200

                 0                                                                   0
                      2002/2003         2003/2004        2004/2005                        2002/2003       2003/2004       2004/2005


                      Profit attributable to shareholders                                    Shareholders' Funds
                                                                             RMB mn
            RMB mn                                                             6,000                                      5,108
                                              904**                                                               4,644
              1000                                                                5,000
                             725                                                                          3,336
               800                                                                4,000
                                                         509*                                     2,896
               600                                                                        2,445
                                                                                  3,000
                                        403
               400    273                                                         2,000
               200                                                                1,000
                 0                                                                   0
                      2002/2003        2003/2004         2004/2005                        2002/2003       2003/2004       2004/2005
                       * : Excluding exceptional gain from adoption of SSAP36
                       ** : Before written back of tax provision in prior years

Chaoda Modern Agriculture                                            8
      超大現代農業
                                   Turnover by Segment
                     1H 2005FY
                                                           Superm arkets
                                                                5%       Livestock
                                            Rice                             2%
                                             6%
                            Fruits
                              8%

                                                       k
                                     Vegetables
                                        79%



      2004FY                             Supermarkets
                                              7%      Livestock
                                                                  1H 2004FY
                            Rice
          Fruits             1%                           2%                                Superm arkets
           6%                                                                     Rice           8%
                                                                      Fruits
                                                                                   2%                       Livestock
                                                                        8%
                                                                                                                2%
                                     k
                   Vegetables
                                                                                            k
                      84%                                                      Vegetables
                                                                                  80%

Chaoda Modern Agriculture                             9
      超大現代農業
                                Turnover by Channel
                                                   1H 2005FY
          CROPS ONLY                    Export
                                        30.5%

                            Retail
                                                                        Wholesale
                            0.9%
                                                                         61.5%



                            Institutional
                                7.1%
          2004FY
                Export
                                                              1H 2004FY
                31.2%                                              Export
                                                                   31.5%

 Retail                                Wholesale        Retail
 1.3%                                   63.2%                                       Wholesale
                                                        1.3%
                                                                                     63.6%


Institutional
                                                        Institutional
    4.3%
                                                            3.6%


Chaoda Modern Agriculture                          10
      超大現代農業
                                 Production Areas and Volume
                                                                                                              Total Production Base Area
                                 Weighted Av Production Area for Crops                             mu
                           mu                                    137,738
                      150,000                                                                200,000                                                  171,889
      Interim                                       111,835                                                                             156,439
                                              103,229                                                                      140,487
                                95,581 97,678                                                150,000             130,387
      Annual
                      100,000                                                                          102,185
                                                                                             100,000

                       50,000
                                                                                              50,000


                            0                                                                      0
                                 2002/2003         2003/2004          2004/2005                          2002/2003              2003/2004                 2004/2005



Tonne         Sales Volume of Crops                                           Yield per Mu                           Average Sales Unit Price per Kg
 '000                                                 Tonne
                                 712                                                                               RMB
800                                                    7.00            6.11            6.37
700             597                                                                                               2.45                      2.42
                                                       6.00                                                                                                   2.41
600                                                                                                                                                2.38
                                                                                                                   2.4
                                                       5.00
500                                     408
                                                       4.00                     3.10             2.96             2.35
400                       320                                  2.85                                                              2.28
        273                                                                                                              2.27
                                                       3.00                                                        2.3
300
200                                                    2.00                                                       2.25
100                                                    1.00                                                        2.2
  0                                                    0.00                                                       2.15
        2002/2003         2003/2004    2004/2005               2002/2003         2003/2004        2004/2005              2002/2003        2003/2004          2004/2005




 Chaoda Modern Agriculture                                                     11
       超大現代農業
                                            Expense Ratios
                           Total Oper. Exp as % of Sales                                 Depre. & Amort. as % of Sales
                  %                                                          %                    6.71   6.78   6.61
              25       21.0     21.6             21.4      21.3          7                6.05
  Interim                               19.4                                      5.38
              20                                                         6
  Annual
                                                                         5
              15
                                                                         4
              10                                                         3
                                                                         2
                  5
                                                                         1
                  0                                                      0
                       2002/2003         2003/2004         2004/2005             2002/2003        2003/2004     2004/2005

                        Selling & Distribution Exp as of Sales                   General & Adm Exp as % of Sales
              %                                                          %
              12                                          10 .6          8        7.0
                       9 .4     9 .4     9. 7 9 .9
                                                                         7                6.0
              10                                                                                     5.6 5.5
                                                                         6                                         4.9
               8
                                                                         5
               6                                                         4
               4                                                         3
                                                                         2
               2
                                                                         1
               0                                                         0
                      2 00 2/ 2 00 3   2 00 3/ 2 00 4   20 0 4/ 20 0 5           2002/2003         2003/2004     2004/2005


Chaoda Modern Agriculture                                         12
      超大現代農業
                                  Profit Margins and ROE
                                        Gross Margin                                                     EBITDA Margin
                        69
               %               67          65    66            66                %
  Interim     70                                                                 70
                                                                                          54             53    53       53*
              60                                                                 60            52
  Annual
              50                                                                 50
              40                                                                 40
              30                                                                 30
              20                                                                 20
              10                                                                 10
                  0                                                               0
                      2002/2003         2003/2004          2004/2005                    2002/2003      2003/2004      2004/2005


                                    Net Margin                                                      Return on Equity (ROE)
              %                                                                 %
              50              49                 49**                            40
                                                              48*
                                           47                                    35
              48
                                                                                 30            25
              46                                                                                              20**
                                                                                 25
              44                                                                 20
                       42                                                                11             12
                                                                                 15                                   10*
              42
                                                                                 10
              40                                                                  5
              38                                                                  0
                      2002/2003         2003/2004           2004/2005                   2002/2003      2003/2004     2004/2005
                             * : Excluding exceptional gain from adoption of SSAP36
                             ** : Before written back of tax provision in prior years
Chaoda Modern Agriculture                                           13
      超大現代農業
                            Chaoda Modern Agriculture
                                  超大现代农业

                    Market and Business Review




Chaoda Modern Agriculture           14
      超大現代農業
                Review of China Vegetable Market

           In 2004, the total area of vegetable production in China was about 265 million
           mu, a decrease of 2% or 4.35 million mu as compared to the same period last
           year
             – The main reason for the decrease was the shift to non-vegetable cultivation
               (grain, cotton and others) after further incentives was granted by the
               government
           In 2H 2004, as a result of floods in some provinces and the increase in
           transportation costs, the average selling price of vegetables has increased,
           particularly for the premium vegetables. The prices for general low-end
           vegetables have, on the other hand, decreased
           China’s vegetable exports maintained high growth:
            – Total sales volume increased by 8.9% to 6.02 million tonnes
            – Sales in value increased by 23.7% to US$3.8 billion


                                                     * Source:Industry report by the Ministry of Agriculture


Chaoda Modern Agriculture                       15
      超大現代農業
                 Chaoda’s Business Maintained Strong
                         Growth Momentum
           During the reporting period, Chaoda’s management has successfully
           implemented the development strategies and plans. The increase in production
           capacity has exceeded the plan with satisfactory operating results:
              – Turnover for crops up 27% to RMB 982 million
              – Sales volume up 27.5% to 408,000 tonnes
           The weighted average cultivation area for crops reached 137,738 mu, an
           increase of 33% over the same period last year
              – During the period, the Company has added 21,500 mu land for crops in
                the following production bases:
                     •      10,000 mu in Zhangzhou, Fujian
                     •      8,000 mu in Yangzhou, Jiangsu
                     •      3,500 mu in Zhangbei, Beijing/Hebei




Chaoda Modern Agriculture                             16
      超大現代農業
                            Chaoda Modern Agriculture
                                  超大现代农业

                    Market and Business Outlook




Chaoda Modern Agriculture           17
      超大現代農業
         Outlook of the China Agricultural Market

           The Chinese government continued to provide supportive policies and benefits to
           the agricultural sector in light of the “Three Rural Problems”, these include:
              – Continued favorable tax and credit policies
              – More incentives to invest in agricultural infrastructure
              – Farmers continued to be entitled the land use rights for a long term
           Value of quality farmland will appreciate due to limited supply
           Outlook of the vegetable market in China
              – Area of vegetable production will be stable with gradual increase
              – Increased demand for premium vegetables
              – Production of green and organic vegetables will gradually increase




Chaoda Modern Agriculture                         18
      超大現代農業
                    Outlook of Chaoda’s Business

           Chaoda’s bond issue in February 2005 raised US$220 million. The funds of the
           bonds will accelerate the Company’s land expansion plan
           Chaoda will leverage its first mover’s position and market know-how and intends
           to invest heavily to gain market share so as to solidify its leadership position in
           China’s agriculture industry
               –   Expand our production base by 20-25% annually over the next 3-5 years.
                   The crop area is expected to exceed 300,000 mu in the next few years
               –   Key regions for expansion are Zhangzhou in Fujian, Beijing and its
                   surrounding area, Jiangsu and Hubei
           Strengthen the Company’s competitiveness in the mid and downstream
           operation and secure long term institutional customers, such as supermarket
           chains and export clients
               –   Processing facilities for vegetables and fruits
               –   Logistics and supply chain systems


Chaoda Modern Agriculture                         19
      超大現代農業
                            Chaoda Modern Agriculture
                                  超大现代农业


               Appendix:Financial Details




Chaoda Modern Agriculture           20
      超大現代農業
           Consolidated Profit and Loss Account
                                                   (Unaudited)     (Unaudited)
                   [RMB’ mn]                          1H 2005         1H 2004     % Change
              Turnover                                  1,053              858         23%
              Cost of sales                              (359)           (298)         20%
              Gross profit                                 694             560         24%
              Operating expenses                         (205)           (159)         29%
              Operating profit                             489             401         22%
              Finance cost                                  (4)             (8)      (46%)
              Share of profit from Asso. Co.                25              10       150%
              Profit before tax                            510             403         27%
              Taxation – Asso. Co.                          (2)             (1)      100%
              Profit after tax                             508             402         26%
              Minority interests                              1              1           -
              Profit attributable to shareholders
                -before exceptional item                     509            403       26%
              Exceptional item : Gain arising from
                           adoption of SSAP36                150              -        N/A
              Profit attributable to shareholders
                -after exceptional item                     659          403           64%
              EPS (before exceptional item)-Basic      RMB 0.217    RMB 0.199            9%
                                            -Diluted   RMB 0.213    RMB 0.197            8%
              EPS (after exceptional item)-Basic       RMB 0.281    RMB 0.199           41%
                                            -Diluted   RMB 0.276    RMB 0.197           40%

Chaoda Modern Agriculture                               21
      超大現代農業
                               Statement of Net Asset
                                                      (Unaudited)      (Audited)    % Change
          [RMB’ mn]                                   31 Dec 2004   30 JUN 2004
     Fixed assets                                           1,460         1,426          2%
     Construction-in-progress                                 408           409           -
     L/T prepaid rentals                                    1,447         1,138          27%
     Biological assets                                        279              -         N/A
     Computer software development cost                        10             20       (50%)
     Deferred development costs                                75             75           -
     Land use rights                                           23             23           -
     Deferred expenditure                                      41             43        (6%)
     Other L/ T deposits                                        7               2      226%
     Interests in associates                                  298            272         10%
     Current assets
          Biological assets                                  212               -         N/A
          Inventories                                         20             126       (84%)
          Trade receivables                                   90              60         52%
          Other receivables, deposits & prepayments          199             207         (4%)
          Cash & bank balances                               808             944       (14%)
     Current liabilities
          Amount due to a related company                      10              7        35%
          Trade payables, other payables & accruals            61             53        14%
          Bank loans - secured                                197             39       411%
                  NET ASSETS                                5,109          4,646        10%



Chaoda Modern Agriculture                              22
      超大現代農業
                                 Sales Analysis
                                            1H 2005   1H 2004
                                                 %         %
        BY SEGMENT
        Crops
            Vegetables                           79        80
            Fruits                                8         8
            Rice                                  6         2
        Supermarkets                              5         8
        Livestock                                 2         2
                                                100       100
        BY CHANNEL (for Crops only)
        Domestic
           Wholesale                           61.5      63.6
           Institutional sale                   7.1       3.6
           Retail sale                          0.9       1.3
                                               69.5      68.5
        Export                                 30.5      31.5
                                              100.0     100.0




Chaoda Modern Agriculture              23
      超大現代農業
                Production Analysis (Crops Only)
                                                       1H 2005       1H 2004   % Change
        OUTPUT [Tonnes ’ 000]
            Vegetables                                        347       281      23
            Fruits                                             31        26      19
            Rice                                               30        13     130
                                                              408       320      28

        Total Production Base Area [mu]                    171,889   140,487     22
        Total Production Base Area [ha]                     11,459     9,366     22

        Weighted Av. Production Area [mu]                  137,738   103,229     33
        Weighted Av. Production Area [ha]                    9,183     6,892     33

        Yield per mu [Tonnes]                                 2.96      3.10     (5)
        Harvest ratio                                         1.59      1.73     (8)
        Yield per harvest [Tonnes per mu]                     1.86      1.79      4
        Av. Sales per kg [RMB]                                2.41      2.42      -

        No. of species                                       150+      150+        -
        No. of production bases                                33        36       (8)
        No. of provinces & municipal cities covered            11        13      (15)



Chaoda Modern Agriculture                             24
      超大現代農業
                            Key Financial Measures
                                                               1H 2005          1H 2004


       MARGINS & EXP. AS % OF TURNOVER
       Gross margin                                                 66%           65%
       Pre-tax profit margin*                                       48%           47%
       Net margin – before exceptional item                         48%           47%
       Net margin – after exceptional item                          63%           47%
       Selling & distribution exp TO turnover                       11%           10%
       General & administrative exp TO turnover                      5%            6%
       Research expenses TO turnover                                 3%            2%

       FINANCIAL RATIOS
       Inventory turnover period                                   10 days       11 days
       Accounts receivable turnover                                16 days       14 days
       Current ratio                                                 5.0           4.2
       Gearing ratio (Total bank loans TO total assets)             3.7%           1.6%

                 *1H2005 : Excluding exceptional gain from adoption of SSAP36

Chaoda Modern Agriculture                             25
      超大現代農業
                      Production Area by Location
   [15 mu = 1 hectare]
                            Weighted Average for Crops Only     Total Production Base Area
                                  1H 2005           1H 2004       1H 2005          1H 2004
   Provinces
   Fujian                          62,415              40,198      82,149           67,009
   Jiangsu                         21,333              15,000      24,000           15,000
   Shaanxi                         17,500              18,300      17,500           18,300
   Guangdong                        4,000               4,000       4,000            4,000
   Shandong                         3,000               3,000       3,000            3,580
   Liaoning                         1,100               1,100       1,100            1,100
   Zhejiang                         2,000               2,000       2,000            2,000
   Hubei                           16,000               2,250      16,000            2,500
   Jiangxi                              -                   -       9,750           10,000
   Hainan                               -               7,233           -            7,600

   Municipal Cities
   Shanghai                           890             3,148           890            2,398
   Beijing                          5,500             3,000         7,500            3,000
   Tianjin                          4,000             4,000         4,000            4,000
   TOTAL(mu)                      137,738           103,229       171,889          140,487




Chaoda Modern Agriculture                         26
      超大現代農業
                Production Area by Business Line
           As at 31 December 2004, Chaoda had 33 production bases in 11 provinces in
           China, including 24 crops land, 2 tea gardens, 7 fruit gardens and 2 plots of
           vacant land in mountain area

           Total production area amounted to 171,889 mu (11,459 Hectares)

                                                        Percentage of total area
                                     Area (mu)                                     Growth rate
                                                                 (%)
                               1H 2005      1H 2004      1H 2005       1H 2004         %
            Crops land         144,571      112,679       72%            68%          28%
            Tea garden         12,050        11,710        6%             7%           3%
            Fruit garden       15,268        16,098        8%            10%          (5%)

            Total production
                               171,889      140,487       85%            85%          22%
            area

            Mountain area      29,588        24,928       15%            15%          19%
            Total land area    201,477      165,415       100%           100%         22%



Chaoda Modern Agriculture                        27
      超大現代農業
                       Top Five Products Analysis


                       By Sales Value          By Sales Volume

       1.                     Cabbage                  Cabbage
       2.                          Rice                     Rice
       3.                      Broccoli        Chinese Cabbage
       4.                   Cauliflower              Cauliflower
       5.                   Sweet Corn                      Okra




Chaoda Modern Agriculture                 28
      超大現代農業
                     Production Base Distribution
                                   As at 31 December 2004




                                                                                    Liaoning
                                                                    Beijing         (1,100mu)
                                                                    (7,500mu)
                                                                                   Tianjin
                                                                                  (4,000mu)
                                                                          Shandong
                                                                           (3,000mu)

                                                                                              Jiangsu
                                                    Shaanxi
                                                                                             (24,000mu)
                                                    (17,500mu)
                                                                   Hubei                           Shanghai
                                                                 (16,000mu)                         (890mu)
                                                                                                 Zhejiang
                                                                                                 (2,000mu)
                                                                        Jiangxi
                                                                                    Fujian
    Leased by the Group                                                (9,750mu)
                                                                                   (82,149mu)
    (Total no. of production base = 33)
    Leased by the Associated Company                                Guangdong
                                                       Guangxi       (4,000mu)
                                                       (47,000mu)
                                                                           Hong Kong

Chaoda Modern Agriculture                    29
      超大現代農業

				
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