abc Multiactive Limited — Earnings Release 2002

Feb 25, 2003

GEM

ABC MULTIACTIVE<08131> - Results Announcement (Final, 2001/2002, Summary)

abc Multiactive Limited announced on 25/02/2003:
(stock code :08131)

Year end date :30/11/2002
Currency :HKD
Auditors' report :Unqualified
Review of Quarterly Report by :N/A

Important Note :

This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com

                                       (audited)          (audited) 
                                                     (restated, see 
                                                        note 1 & 2)
                                         Current Last Corresponding
                                          Period             Period
                                 from 01/12/2001    from 01/12/2000
                                   to 30/11/2002      to 30/11/2001
                                           $'000              $'000

Turnover : 25,668 29,777
Profit/(Loss) from Operations : (37,219) (120,821)
Finance cost : (634) (173)
Share of Profit/(Loss) of Associates : 0 0
Share of Profit/(Loss) of Jointly
Controlled Entites : 0 0
Profit/(Loss) after Taxation & MI : (38,281) (120,580)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : (HKD 0.0238) (HKD 0.078)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : 0 0
Profit (Loss) after ETD Items : (38,281) (120,580)
Final Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for Final Dividends : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period: NIL
B/C Dates for Other Distribution : N/A

                                     For and on behalf of
                                    abc Multiactive Limited
                       Signature :
                       Name      :    Billy Kin Wah Chan
                       Title     :    Executive Director

Responsibility statement

The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for the
accuracy of the information contained in this results announcement form
(the "Information") and confirm, having made all reasonable inquiries,
that to the best of their knowledge and belief the Information are
accurate and complete in all material respects and not misleading and
that there are no other matters the omission of which would make the
Information herein inaccurate or misleading. The Directors acknowledge
that the Stock Exchange has no responsibility whatsoever with regard
to the Information and undertake to indemnify the Exchange against all
liability incurred and all losses suffered by the Exchange in connection
with or relating to the Information.

Remarks:

1. Basis of presentation

The accounts have been prepared in accordance with accounting
principles generally accepted in Hong Kong and comply with
accounting standards issued by the Hong Kong Society of
Accountants ("HKSA"). They are prepared under the
historical cost convention.

During the year, the Group incurred a loss of approximately
HK$38,281,000. At the balance sheet date, the Group's current
liabilities exceeded its current assets by approximately
HK$12,341,000 and the Group's shareholders' deficit amounted
to approximately HK$21,465,000.

Notwithstanding the above results, the accounts have been
parepared on a going concern basis, the validity of which is
dependent upon the success of the Group's future operations, its
ability to generate adequate cash flows in order to meet its
obligations as and when they fall due and its ability to refinance
or restructure its borrowings such that the Group can meet its
future working capital and financing requirements. Subsequent
to 30th November 2002, a shareholder of the Company, Pacific East
Limited, has confirmed that it will not demand repayment of its
promissory note in the amount of HK$9,500,000 within twelve months
from the balance sheet date and has agreed to extend the maturity
date of the promissory note to 22nd May 2004. The ultimate holding
company, Maximizer Software Inc., has also confirmed that it will
not demand repayment of the amount due to it of HK$2,225,000
within twelve months from the balance sheet date. Furthermore,
a party connected to a non-executive director of the Company,
Wickham Group Limited has advanced approximately HK$5,134,000 to
the Group by way of a promissory note due for repayment on 21st
February 2004 and has agreed that it will not demand repayment of
the promissory note until that date. The directors are confident
that the Group's further operations will be successful and able to
generate sufficient cash flows in order to meet its obligations
as they fall due over the next twelve months. Accordingly, the
directors are satisfied that it is appropriate to prepare the
accounts on a going concern basis.

In the current year, the Group adopted the following Statements of
Standard Accounting Practice ("SSAPs") issued by the HKSA which are
effective for accounting periods commencing on or after 1st January
2001:

SSAP 9 (revised) : Events after the balance sheet date
SSAP 26 : Segment reporting
SSAP 28 : Provisions, contingent liabilities and
contingent assets
SSAP 29 : Intangible assets
SSAP 30 : Business combinations
SSAP 31 : Impairment of assets
SSAP 32 : Consolidated financial statements and
accounting for investments in subsidiaries

The Group has also early adopted SSAP 1 (revised) "Presentation of
financial statements" and SSAP 15 (revised) "Cash flow statements"
which will be effective for accounting periods commencing on or
after 1st January 2002.

The changes to the Group's accounting policies and the effects of
adopting these new policies are set out below:

(i) With the introduction of SSAP 30, the Group has adopted the
transitional provisions prescribed therein. Goodwill incurred
on or after 1st December 2001 is capitalised in the balance
sheet and is amortised to the profit and loss account on a
straight-line basis over its estimated economic useful life.
The Group has taken advantage of the transitional provision 1
(a) in SSAP 30 and goodwill previously written off against
reserves has not been restated. However any impairment
arising on such goodwill is accounted for in accordance with
SSAP 31.

(ii) Under SSAP 31 and Interpretation No. 13 "Goodwill - continuing
requirements for goodwill and negative goodwill previously
eliminated against/credited to reserves", the carrying amount
of goodwill (including goodwill that has previously been
written off against reserves and not restated in accordance
with the transitional provisions in SSAP 30) has to be
reviewed periodically for any indication of impairment, and
any impairment loss has to be recognised as an expense
in the consolidated profit and loss account.

    The comparative figure for the year ended 30th November 2001
    has been restated to conform to the changed policy.
    Accordingly, goodwill amounting to HK$25,278,000 which was
    impaired in the year ended 30th November 2001 and previously
    written off against reserves, has been recognised by way of a 
    prior year adjustment and the loss for the year ended 30th 
    November 2001 of HK$95,302,000 has been increased by 
    HK$25,278,000 and restated to a loss for the year of
    HK$120,580,000.

1. Basic loss per share

The calculation of basic loss per share is based on the Group's
loss for the year of HK$38,281,000 (2001: HK$120,580,000) and
the weighted average of 1,605,909,668 and 1,545,585,064 ordinary
shares in issue during the years ended 30th November 2002 and 2001,
respectively, on the assumption that the consolidation and
subdivision of shares of the Company had been completed on 1st
December 2000.

No diluted loss per share has been presented as there was no
dilutive potential ordinary share during the year.