CHYY Development Group Limited — Earnings Release 2005

Jan 3, 2006

GEM

IIN INT'L<08128> - Results Announcement (Final, 2004/2005, Summary)

IIN International Limited announced on 30/12/2005:
(stock code: 08128 )

Year end date :30/09/2005
Currency :HKD
Auditors' report :Qualified

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

                                        (Audited)         (Audited)
                                          Current Last Corresponding
                                            Period            Period
                                   from 01/10/2004   from 01/10/2003
                                     to 30/09/2005     to 30/09/2004
                                             $'000             $'000

Turnover : 60,069 113,944
Profit/(Loss) from Operations : (84,471) (49,568)
Finance cost : (1,863) (2,057)
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 : (82,097) (48,462)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : (HKD 0.0532) (HKD 0.0331)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : (82,097) (48,462)
Final Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for Final Dividends : N/A
Payable Date : N/A
B/C Dates for Annual General Meeting :02/02/2006 to 03/02/2006 bdi.
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A
(bdi: both days inclusive)

For and on behalf of
IIN International Limited

Signature :
Name : Wu Shu Min
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.

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. 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.

An analysis of the Group's turnover is as follows:

                                               For the year
                                             ended 30 September
                                              2005        2004
                                           HK$'000     HK$'000
                                         (audited)   (audited)

Network infrastructure solutions 27,806 51,721
Network management solutions 861 2,838
Other network solutions for
sectors other than telecommunications 2,173 14,467
Transmission 29,229 44,918
------- -------
60,069 113,944
======= =======

1. Loss from operating activities

The Group's loss from operating activities is arrived at after
charging:

                                               For the year
                                            ended 30 September
                                              2005        2004
                                           HK$'000     HK$'000
                                          (audited)   (audited)

Cost of inventories sold and
services provided 51,527 97,790
Depreciation 4,457 4,780
Research and development cost:
Deferred development cost amortised 536 958
Loss on write-off of intangible
assets 49 -
Current year expenditure - 5,820
------- -------
585 6,778
------- -------
Goodwill:
Amortisation for the year 5,213 3,872
Impairment arising during the year 30,763 15,000
------- -------
35,976 18,872
------- -------
Minimum lease payments under
operating leases in respect
of land and buildings 1,497 1,153
Auditors' remuneration 400 580
Staff costs (including directors' emoluments)
Wages and salaries 10,135 13,186
Pension scheme contributions 144 163
------- -------
10,279 13,349
------- -------
Provision for bad and doubtful debts 22,398 6,889

Provision for other receivables 7,312 2,821
Provision for obsolete inventory 306 -
Loss on disposal of fixed assets 214 128

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
year of HK$82,097,000 (2004: HK$48,462,000) and the weighted
average of 1,543,160,470 (2004: 1,464,197,941) ordinary
shares in issue during the year.

Diluted loss per share for the years ended 30 September
2005 and 2004 have not been disclosed as the potential ordinary
shares outstanding had an anti-dilutive effect on the basic
loss per share for these years.

1. Dividend

The Company resolved not to declare a final dividend in respect
of the year (2004:Nil).

1. Extract of Report of the Auditors

Fundamental uncertainty relating to the going concern
basis of the financial statements

In forming our opinion, we have considered the adequacy of
the disclosures made in the financial statements
concerning the adoption of the going concern basis for
the preparation of the financial statements. As set out
in note 2 to the financial statements, the financial
statements have been prepared on a going concern basis,
the validity of which depends upon the successful outcome
of the raising of funds for the Group and the
assumption that the Group will generate positive
cash flows from its businesses. The financial statements
do not include any adjustments that would result from a
failure of the Group to operate as a going concern. Had
the going concern basis not been used, adjustments would
have to be made to reduce the value of the Group's
assets to their recoverable amounts, to provide for any
further liabilities which might arise, and to reclassify
non-current assets and non-current liabilities as
current assets and current liabilities respectively.
The effect of these potential adjustments has not been
reflected in the financial statements. We consider that
appropriate disclosures have been made, but the inherent
uncertainties surrounding the circumstances under which
the Group might successfully continue to operate as a
going concern are so extreme that we have disclaimed
our opinion.

Disclaimer of opinion

Because of the significance of the fundamental
uncertainty relating to the going concern basis, we
are unable to form an opinion as to whether the
financial statements give a true and fair view of the
state of affairs of the Company and of the Group as at
30 September 2005 or of the loss and cash flows of the
Group for the year then ended and as to whether the
financial statements have been properly prepared in
accordance with the disclosure requirements of the
Hong Kong Companies Ordinance.