China Information Technology Development Limited — Earnings Release 2005

Oct 19, 2004

GEM

XTEAM SOFTWARE<08178> - Results Announcement

Xteam Software International Limited announced on 19/10/2004:
(stock code: 08178 )
Year end date: 31/03/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee

Important Note:

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

                                                    (Unaudited )
                                 (Unaudited )       Last
                                 Current            Corresponding
                                 Period             Period
                                 from 01/04/2004    from 01/04/2003
                                 to 30/09/2004      to 30/09/2003 
                           Note  ('000      )       ('000      )

Turnover 2 : 31,364 9,219
Profit/(Loss) from Operations : 5,336 (7,478)
Finance cost : 10 40
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 4,332 (7,916)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) 4 : 0.003 (0.0131)
-Diluted (in dollars) 4 : 0.003 (0.0131)
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 4,332 (7,916)
2nd Quarter Dividend 5 : N/A N/A
per Share
(Specify if with other : N/A N/A
options)

B/C Dates for
2nd Quarter Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period

B/C Dates for Other
Distribution : N/A

For and on behalf of 
Xteam Software International Limited

Name : Zhang Honghai
Title : Chairman

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 unaudited interim financial statements have been prepared in
   accordance with Hong Kong Statement of Standard Accounting
   Practice ("SSAP") No. 25 "Interim Financial Reporting", issued
   by the Hong Kong Institute of Certified Public Accountants and
   Chapter 18 of Rules Governing the Listing of Securities on the Growth
   Enterprise Market of The Stock Exchange of Hong Kong Limited
   (the "GEM Listing Rules").

The principal accounting policies and methods of computation
used in the preparation of the unaudited interim financial statements
are consistent with those adopted in the latest annual
financial statements of the Group.

1. Turnover and revenue
   Turnover represents the invoiced value of goods sold and services
   rendered, net of value added tax and business tax in the PRC,
   and after allowances for goods returned and trade discounts.

2. Taxation

(i)No provision for profits tax has been made as no income
was earned or derived from Hong Kong during the period.

(ii)No provision for profits tax has been provided in respect
of the Cayman Islands or the British Virgin Islands as there were
no assessable tax for the period in those jurisdictions.
The tax expenses during the period represents tax charges on
the assessable profits of certain subsidiaries operating in the
PRC calculated at the applicable rates.

(iii)No deferred tax asset has been recognized due to the
unpredictability of future profit streams.

1. Earnings/(loss) per share
   The calculation of basic earnings per share for the six months
   and three months ended 30th September, 2004 is calculated based
   on the Group's unaudited profit attributable to shareholders of
   approximately HK$4,332,000 and HK$7,205,000, respectively
   (2003: loss of approximately HK$7,916,000 and HK$3,687,000,
   respectively), and on the weighted average number of
   1,463,561,684 shares and 2,225,739,845 shares, respectively,
   in issue during the period (2003: 605,554,605 shares and
   622,594,025 shares, respectively).

The diluted earnings per share for the six months and three months
ended 30th September, 2003 is based on the weighted average number
of 1,463,641,233 shares and 2,225,739,845 shares, respectively,
taking into account the ordinary shares deemed to be issued if all
outstanding options had been exercised at the date they were granted
(2003: 605,554,605 shares and 622,594,025 shares, respectively).

1. Dividend

The Board does not recommend the payment of an interim dividend
for the period (2003: Nil).