abc Multiactive Limited — Interim / Quarterly Report 2002

Jul 11, 2002

Quarterly Results announcement form

Name of listed company : abc Multiactive Limited

Stock code : 8131

Year end date : 30th November 2002

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

Currency: HK$'000
(Unaudited) (Unaudited)
(restated, see
note 1 and 2)
Last
Current Corresponding
Period Period
from 01/12/2001 from 01/12/2000
to 31/05/2002 to 31/05/2001
HK$'000 HK$'000

Turnover : 14,638 18,479
Profit/(Loss) from Operations : -10,746 -60,850
Finance cost : -290 -141
Share of Profit/(Loss) of Associates : 0 0
Share of Profit/(Loss) of
Jointly Controlled Entites : 0 0
Profit/(Loss) after Taxation & MI : -11,036 -60,991
% Change Over the Last Period : N/A %
EPS / (LPS) - Basic : -0.69 HK cents -4.11 HK cents
- Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : 0 0
Profit (Loss) after ETD Items : -11,036 -60,991
2nd Q Dividend per Share : 0 0
(specify if with other options) : N/A N/A
B/C Dates for 2nd Q Dividend : N/A to N/A bdi.
Payable Date : N/A
B/C Dates for AGM/SGM : N/A to N/A bdi.
Other Distribution for Current Period: N/A
B/C Dates for Other Distribution : N/A to N/A bdi.
(bdi: both days inclusive)

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

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. Group reorganisation, basis of presentation and principle
   accounting policies

a. The Company was incorporated in Bermuda on 2nd March 2000
as an exempted company with limited liability under the
Companies Act 1981 of Bermuda.

b. Pursuant to a group reorganisation (the "Reorganisation")
which took place on 22nd January 2001 to rationalise the
group structure in preparation for the listing of the
Company's shares on the Growth Enterprise Market ("GEM")
of The Stock Exchange of Hong Kong Limited (the "Stock
Exchange"), the Company became the holding company of
the Group. The Company's shares were listed on GEM on
31st January 2001. The Reorganisation was effected as
as follows:

i. On 16th December 2000, two shares of S$1.00 each of
abc Multiactive (Singapore) Pte. Ltd. (formerly known
as Multiactive Software (Singapore) Pte. Limited.) were
transferred by Multiactive Software Pty. Limited ("abc
Australia"), a wholly owned subsidiary of Multiactive
Software Inc., to the Company for a cash consideration
of S$2.00.

ii.On 22nd January 2001, pursuant to a directors'
resolution, abc Australia allotted and issued 99,988
shares of AUD$1.00 each to the Company for a cash
consideration of AUD$99,988.

c. The unaudited condensed consolidated interim financial
statements have not been audited by the Company's auditors,
but have been reviewed by the Company's audit committee.

The unaudited condensed consolidated interim financial
statements have been prepared in accordance with Statement
of Standard Accounting Practice ("SSAP") 25 "Interim
Financial Reporting" issued by the Hong Kong Society of
Accountants and with the disclosure requirements set out
in Chapter 18 of the Rules Governing the Listing of
Securities on GEM of the Stock Exchange (the "GEM Listing
Rules"). In this first year of implementation of SSAP 25,
as permitted by the GEM Listing Rules, no comparative
figures for the corresponding period of the preceding
year have been presented for the condensed consolidated
cash flow statement.

The accounting policies and basis of preparation used
in the preparation of the unaudited condensed
consolidated interim financial statements are consistent
with those used in the Company's annual financial
statements for the year ended 30th November 2001, except
for the following new/revised SSAPs which have been
adopted for the first time in the preparation of the
current period's unaudited condensed consolidated
interim financial statements:-

• 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 31: Impairment of assets
• SSAP 32: Consolidated financial statements and
  accounting for investments in subsidiaries

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 "Impairment of assets".

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 accounts.

  The comparative figures for the six months ended 
  31st May 2001 have been restated to conform to the 
  changed policy.  Accordingly, goodwill of approximately
  HK$25,278,000 which was impaired in the year ended
  30th November 2001 and previously written off against
  reserves, has been recongnised by way of a prior year
  adjustment resulting in an increase in the Group's net
  loss for the six months ended 31st May 2001 of
  approximately HK$25,278,000.

d. The unaudited condensed consolidated interim financial
statements have been prepared on a going concern basis,
which assumes the continued financial support from
Multiactive Software Inc. ("MSI"), the ultimate holding
company. MSI has agreed to provide financial support to
the Group to meet its liabilities as they fall due and to
continue its operations in the foreseeable future.
Futhermore, 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$10,000,000
within twelve months from 30th November 2001 and has
agreed to extend the maturity date of the promissory note
to 22nd May 2003.

1. Basic loss per share

The calculation of basic loss per share for the six
months ended 31st May 2002 is based on the net loss
for the period of approximately HK$[*] (2001:
HK$60,991,000) and the weighted average of
1,605,909,668 (2001: 1,483,584,780) ordinary shares in
issue during the period.

The basic loss per share for the six months ended 31st
May 2002 has been restated for the effects from adoption
of SSAP 30 and SSAP 31 and the subdivision of the
Company's shares on 15th June 2001.

Diluted loss per share has not been presented as there
was no dilutive potential ordinary share in existence
during the periods.