Chinese mainland income tax has been provided for based on the estimated assessable profits in accordance with the relevant tax laws applicable to the Group in the Chinese mainland.
Overseas taxation is calculated at the rates prevailing in the respective jurisdictions.
Neither the Company nor its subsidiaries purchased, sold or redeemed any of the Company's listed securities during the year. The Group has not experienced any Year 2000 compliance problems and its operation proceeded smoothly through the millennium changeover period. The Group will continue to monitor and review its existing operational procedures throughout this year to ensure that all Year 2000 related issues have been properly dealt with. The Group will expend all maintenance or modification costs as incurred, while the costs of new software and replacement of certain systems and equipment will be capitalized and amortized over the estimated useful life of the asset. Despite a rather weak Hong Kong property market in 1999, the sales launch of Villa Esplanada Phase II was a great success, providing the Group with a steady stream of profit for the year.