China Information Technology Development Limited — Interim / Quarterly Report 2004

Feb 12, 2004

GEM

XTEAM SOFTWARE<08178> - Results Announcement

Xteam Software International Limited announced on 12/02/2004:
(stock code: 08178 )
Year end date: 31/03/2004
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 01/04/2003    from 01/04/2002
                                 to 31/12/2003      to 31/12/2002 
                           Note  ('000      )       ('000      )

Turnover : 25,132 30,110
Profit/(Loss) from Operations : (9,080) 2,756
Finance cost : 46 (141)
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 : (10,776) 1,987
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.017) 0.0035
-Diluted (in dollars) : (0.0169) 0.0033
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (10,776) 1,987
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 : 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 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 Society of 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 provision for deferred tax has been made as the Group
had overall deferred tax benefits which will be recognized when
realization of such benefits is assured beyond reasonable doubt.

1. (Loss) / earnings per share
   The calculation of basis loss per share for the nine months and
   three months ended 31st December, 2003 is calculated based on the
   Group's unaudited loss attributable to shareholders of approximately
   HK$10,776,000 and HK$2,860,000, respectively (2002: profits of
   approximately HK$1,987,000 and loss of approximately
   HK$1,062,000, respectively), and on the weighted average
   number of 633,269,902 shares and 688,399,242 shares,
   respectively, in issue during the period
   (2002: 568,402,108 shares and 577,377,910 shares, respectively).

The diluted loss per share for the nine months and three months
ended 31st December, 2003 is based on the weighted average
number of 638,547,389 shares and 698,073,970 shares, respectively,
taking into account the options granted to certain executive
directors, employees, advisers and consultants of the Company to
subscribe for shares of the Company under the Pre-IPO Share
Option Scheme and Share Option Scheme
(2002: 610,002,108 shares and 586,876,277 shares, respectively).