China Information Technology Development Limited — Earnings Release 2006

Nov 13, 2006

GEM

XTEAM SOFTWARE<08178> - Results Announcement

Xteam Software International Limited announced on 10/11/2006:
(stock code: 08178 )
Year end date: 31/12/2006
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 01/01/2006    from 01/01/2005
                                 to 30/09/2006      to 30/09/2005
                           Note  ('000      )       ('000      )

Turnover : 21,644 38,735
Profit/(Loss) from Operations : (11,771) 7,496
Finance cost : (266) (146)
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 : (10,437) 4,260
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0027) 0.0011
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (10,437) 4,260
3rd Quarter Dividend : N/A N/A
per Share
(Specify if with other : N/A N/A
options)

B/C Dates for
3rd 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 : Ng Weng Sin
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:

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTES:

1. BASIS OF PRESENTATION

The condensed consolidated financial statements have been prepared
in accordance with the applicable disclosure requirements of the
Rules Governing the Listing of Securities on the Growth Enterprise
Market (the "GEM Listing Rules") of the Stock Exchange of Hong Kong
Limited and Hong Kong Financial Reporting Standards ("HKFRSs")(which
also include Hong Kong Accounting Standards ("HKASs") and
Interpretations) issued by the Hong Kong Institute of Certified
Public Accountants.

The accounting policies and basis of preparation adopted in the
preparation of these condensed consolidated financial statements
are same as those used in the annual financial statements for the
year ended 31 December 2005.

1. TURNOVER

Turnover represents the net invoiced value of sold, after allowance
for returns and trade discounts; and the value of services rendered
during the period.

Turnover consisted of:
(Unaudited)
HK$'000
3 months ended 9 months ended
30 September 30 September
2006 2005 2006 2005

Sale of computer software 420 - 429 -
Income from software
development and system
integration 4,678 9,929 15,493 30,225
Technical support and
maintenance 1,975 3,594 5,722 8,510

            7,073   13,523  21,644  38,735

1. OTHER REVENUE

Revenue from the following activities have been included in other revenue:

                (Unaudited) 
                 HK$'000
            3 months ended  9 months ended
            30 September    30 September
            2006    2005    2006    2005

Government subsidies 321 977 580 2,683
Others 9 - 9 10

            330 977 589 2,693

1. FINANCE COSTS, NET
   (Unaudited)
   HK$'000
   3 months ended 9 months ended
   30 September 30 September
   2006 2005 2006 2005

Bank interest income 23 20 131 59
Interest expenses on amount (158) (108) (397) (205)
due to an intermediate
holding company (135) (88) (266) (146)

The interest expenses were charged at a rate of 5% per annum on the outstanding loan
principal.

1. (LOSS)/ PROFIT BEFORE TAX

(Loss)/Profit before tax was arrived at after charging the following:

                (Unaudited) 
                 HK$'000
            3 months ended  9 months ended
            30 September    30 September
            2006    2005    2006    2005

Depreciation of fixed assets 427 254 976 931
Amortization of intangible
assets 13 66 78 126

1. TAX

(i) No provision for Hong Kong profits tax has been made as the Group did not
generate any assessable profits arising in Hong Kong during the period.
(Period ended 30 September 2005: Nil)

(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.

(iii) The tax expenses during the period represent tax charges on the
assessable profits of certain subsidiaries operating in the PRC calculated
at the applicable rates. Certain of the subsidiaries in the PRC enjoy tax
exemptions.

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

1. (LOSS)/EARNINGS PER SHARE

The calculation of basic loss per share for the three months and nine months
ended 30 September 2006 is calculated based on the Group's unaudited loss
attributable to equity holders of the parent of approximately HK$2,618,000
and HK$10,437,000respectively (2005: profit of approximately HK$1,118,000
and HK$4,260,000 respectively), and the weighted average number of
3,842,606,368 (2005: 3,758,471,752)ordinary shares in issue during the periods.

Diluted loss per share for the three months and the nine months ended
30 September 2006 and 2005 have not been disclosed as the outstanding options
had an anti-dilutive effect on the basis loss per share for the current periods.

1. DIVIDEND

The Board does not recommend the payment of an interim dividend for the
period (2005: Nil).