China Information Technology Development Limited — Earnings Release 2004

Jun 21, 2004

GEM

XTEAM SOFTWARE<08178> - Results Announcement

Xteam Software International Limited announced on 21/06/2004:
(stock code: 08178 )
Year end date: 31/03/2004
Currency: HKD
Auditors' Report: Unqualified

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

                                                    (Audited   )
                                 (Audited   )       Last
                                 Current            Corresponding
                                 Period             Period
                                 from 01/04/2003    from 01/04/2002
                                 to 31/03/2004      to 31/03/2003 
                           Note  ('000      )       ('000      )

Turnover 2 : 26,823 26,694
Profit/(Loss) from Operations : (33,069) (10,127)
Finance cost : (36) (200)
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 : (34,847) (10,589)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) 4 : (0.00538) (0.00184)
-Diluted (in dollars) 4 : (0.00536) (0.00175)
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (34,847) (10,589)
Final Dividend : N/A N/A
per Share
(Specify if with other : N/A N/A
options)

B/C Dates for
Final 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 : Mak To Wai
Title : 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 financial statements have been prepared in accordance with
   accounting policies generally accepted in Hong Kong and under
   the historical cost convention and in compliance with the
   Companies Ordinance.

The accounting policies and methods of computation
used in the preparation of the financial statements for the year
ended 31st March, 2004 are consistent with those adopted in the
2003 financial statements except that the Group has adopted, for
the first time, Hong Kong Financial Reporting Standard-Statement
of Standard Accounting Practice 12 (Revised) "Income Taxes" issued
by the Hong Kong Society of Accountants. The adoption of the
revised statement has had no material effect on the results for
the current or prior periods.

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
unpredictabilityof future profit streams.

1. Loss per share
   The basic loss per share is calculated based on the Group's loss
   attributable to shareholders of HK$34,847,000 (2003:HK$10,589,000)
   and on the weighted average of 648,122,801 (2003:574,075,967)
   ordinary shares in issue during the year.

The diluted loss per share is based on the 649,648,509
(2003:604,696,820) ordinary shares, which is the weighted average
number of ordinary shares in issue during the year plus the weighted
average of 1,525,708 (2003:30,620,853) ordinary shares deemed to
be issued if all outstanding options had been exercised at the date
they were granted.

1. Dividend
   The Board does not recommend the payment of a final dividend for
   the year (2003: Nil).

2. Comparative amounts
   The comparative figure for provision against inventories for the
   year ended 31st March, 2003 has been reclassified from cost of sales
   and services to show as a separate item in the consolidated profit
   and loss account as such presentation provides a more appropriate
   presentation of the Group's operating results.