CHYY Development Group Limited — Earnings Release 2002

Feb 12, 2003

GEM

IIN INT'L<08128> - Results Announcement (Q1, 2002/2003, Summary)

IIN International Limited announced on 12/02/2003
(stock codes: 08128)

Year end date :30/09/2003
Currency :HKD
Auditors' report :N/A
Review of 1st Quarterly Report by :Audit Committee

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

                                      ( Unaudited)      ( Unaudited)
                                       Current    Last Corresponding
                                       Period           Period
                                   from 01/10/2002   from 01/10/2001
                                     to 31/12/2002     to 31/12/2001
                                             $'000             $'000

Turnover : 43,764 16,987
Profit/(Loss) from Operations : (4,619) (2,714)
Finance cost : (856) (1,743)
Share of Profit/(Loss) of Associates : N/A N/A
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : (5,507) (3,577)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : HKD (0.0039) HKD (0.0033)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : (5,507) (3,577)
1st Quarterly Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 1st Quarterly Dividends : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A

                                   For and on behalf of
                                    IIN International Limited
                        Signature :
                             Name :Chang Ye Min, William
                            Title :President & CEO

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 and basis of preparation

The Company was incorporated as an exempted company with limited
liability in the Cayman Islands on 14 December 1999 under the
Companies Law (1998 Revision) of the Cayman Islands. The
registered office of the Company is located at Huntlaw Building,
George Town,Grand Cayman,Cayman Islands.

Pursuant to a reorganisation scheme (the "Reorganisation") to
rationalise the Group��s structure in preparation for the public
listing of the Company��s shares on The Growth Enterprise Market
(the "GEM") of The Stock Exchange of Hong Kong Limited (the "Stock
Exchange"), the Company became the holding company of the
companies now comprising the Group on 31 December 1999. This was
accomplished by acquiring the entire issued share capital of II
Networks International Limited, the Group��s former holding company,
in consideration of and in exchange for the Company��s allotted and
issued share capital.

Further details of the Reorganisation and the subsidiaries acquired
pursuant thereto are set out in the Company's prospectus dated 26
November 2001. The shares of the Company were listed on the GEM
of the Stock Exchange on 30 November 2001.

The principal activity of the Company is investment holding.
During the year, the Group was principally engaged in the
provision of network solutions to the telecommunication service
providers in the People's Republic of China, excluding Hong Kong
and Macau (the "PRC").

The accounts have been prepared in accordance with the Hong Kong
Statements of Standard Accounting Practice ("SSAPs"), accounting
principles generally accepted in Hong Kong and the disclosure
requirements of the Hong Kong Companies Ordinance.

1. Turnover

Turnover represents the net invoiced value of goods sold, after
allowances for returns, trade discounts and business tax where
applicable, and services rendered. All significant intra-group
transactions have been eliminated on consolidation.

1. Tax

Hong Kong profits tax has not been provided as the Group did not
generate any assessable profits arising in Hong Kong during the
three months ended 31 December 2002 (2001: Nil).

PRC corporate income tax has not been provided as the Group
did not generate any net assessable profits attributable to
their operations in the PRC during the three months ended 31
December 2002 (2001: Nil).

1. Loss per share

The calculation of basic loss per share is based on the
net loss from ordinary activities attributable to shareholders
for the three months ended 31 December 2002 of HK$5,507,000
(2001: HK$3,577,000) and the weighted average of
1,417,781,698 shares (2001: 1,072,391,439 shares) in issue during
the three months ended 31 December 2002.

The diluted loss per share amount for the three months ended
31 December 2002 and 2001 have not been presented as the potential
ordinary shares outstanding had an anti-dilutive effect on the
basic loss per share for the three months ended 31 December 2002
and 2001.

1. Dividend
   The Board does not recommend payment of any dividend for the three
   months ended 31 December 2002 (2001: Nil)