CHYY Development Group Limited — Interim / Quarterly Report 2006

May 15, 2006

GEM

IIN INT'L<08128> - Results Announcement (Q2, 2005/2006, Summary)

IIN International Limited announced on 12/05/2006:
(stock code: 08128 )

Year end date :30/09/2006
Currency :HKD
Auditors' report :N/A
2nd Quarterly Report Reviewed 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 1/10/2005    from 1/10/2004
                                      to 31/3/2006      to 31/3/2005
                                             $'000             $'000

Turnover : 24,706 45,649
Profit/(Loss) from Operations : (4,479) (9,228)
Finance cost : (915) (827)
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 : (6,183) (10,854)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : (HKD 0.004) (HKD 0.007)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : (6,183) (10,854)
2nd Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 2nd Quarter 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
(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.

Remarks:

1. Basis of preparation

The unaudited condensed consolidated interim financial statements
have been prepared in accordance with Hong Kong Accounting
Standard ("HKAS") 34 "Interim Financial Reporting", issued by the
Hong Kong Institute of Certified Public Accountants ("HKICPA")
and the disclosure requirements as set out in Chapter 18 of the
GEM Listing Rules. The interim financial statements should be
read in conjunction with the audited financial statements and
notes thereto for the year ended 30 September 2005.

1. Principal accounting policies

The accounting policies and basis of presentation used in the
preparation of the condensed consolidated interim financial
statements are consistent with those adopted in the audited
financial statements for the year ended 30 September 2005,
except that in the Review Period, the Group has applied, for
the first time, a number of new Hong Kong Financial Reporting
Standards ("HKFRSs"), HKASs and Interpretations (hereinafter
collectively referred to as "New HKFRSs") issued by the HKICPA
that are effective for accounting periods beginning on or after
1 January 2005. The application of the New HKFRSs has resulted
in changes in the presentation of the income statement, balance
sheet and the statement of changes in equity. The changes in
presentation have been applied retrospectively. The adoption of
the New HKFRSs has resulted in changes to the Group's accounting
policies in the following areas that have an effect on how the results
for the current or prior accounting periods are prepared and
presented.

(i) Adoption of HKFRS 3

In prior years, positive goodwill arising on or after 1 July 2001
was amortised on a straight line basis over its estimated
useful life and was subject to impairment testing when there
were indications of impairment. Positive goodwill which arose
prior to 1 July 2001, was taken directly to capital reserves in
accordance with the transitional provisions set out in the
Statement of Standard Accounting Practice 30 "Business
Combinations".

In accordance with HKFRS 3 "Business Combinations" and
HKAS 36 "Impairment of Assets", the Group no longer
amortises positive goodwill. Such goodwill is tested for
impairment. Impairment losses are recognised when the
carrying amount of the cash generating units to which the
goodwill has been allocated exceeds its recoverable amount.
Negative goodwill is recognised immediately in the income
statement as it arises.

(ii) Adoption of HKAS 1

In prior years, minority interests were presented in the consolidated
balance sheet separately from liabilities and as a deduction from
net assets. Financial results shared by minority interests were
separately presented in the consolidated income statement as
a deduction before arriving at the profit attributable to
shareholders.

In order to comply with HKAS 1 "Presentation of Financial
Statements" and HKAS 27 "Consolidated and Separate
Financial Statements", minority interests are presented in
the consolidated balance sheet within equity, separately from
the equity attributable to the ordinary shareholders of the
Company, and the results shared by minority interests are
presented on the face of the consolidated income statement
as an allocation of the attributable profit between the minority
interests and the equity holders of the Company.

(iii) Adoption of HKFRS 2

In the Review Period, the Group has applied HKFRS 2
Share-based Payment which requires an expense to be
recognised where the Group buys goods or obtains services
in exchange for shares or rights over shares, or in exchange
for other assets equivalent in value to a given number of shares
or rights over shares. The principal impact of HKFRS 2 on the
Group is in relation to the expensing of the fair value of share
options granted to eligible participants of the Company, determined
at the date of grant of the share options over the vesting period.
Prior to the application of HKFRS 2, the Group did not recognise
the financial effect of these share options until they were exercised.
In relation to share options granted before 1 October 2005, in
accordance with the relevant transitional provision, the Group
has not applied HKFRS 2 to share options granted and vested
on or before 1 October 2005. As at 31 March 2006, all outstanding
share options of the Group were granted and vested before
1 October 2005, the application of HKFRS 2 has had no
financial impact on the results of the Group for current or prior
accounting periods.

(iv) Adoption of HKAS 17

In prior years, leasehold land and buildings held for own use
were stated at cost less accumulated depreciation and any
impairment losses.

Upon the adoption of HKAS 17, the Group's leasehold interest
in land and buildings are separated into leasehold land and
leasehold buildings. Leasehold land is classified as operating
leases, because the title of land is not expected to be passed
to the Group by the end of the leases terms, and is reclassified
from property, plant and equipment to prepaid land lease
payments. Leasehold buildings continue to be classified as
part of property, plant and equipment. Prepaid land lease
payments under operating leases are initially stated at cost
and subsequently amortised on the straight-line basis over the
respective lease terms. When the lease payment cannot be
allocated between the land and buildings elements, the entire
lease payment is included in the cost of land and building as a
finance lease in property, plant and equipment. This change in
accounting policy has had no effect on the previously reported
consolidated income statement and accumulated losses.

Summary of the change in accounting policies

The adoption of HKAS 17 resulted in:

Consolidated balance sheet (Unaudited)

                                      As at           As at
                                   31 March 2006   30 Sept. 2005
                                   HKAS 17         HKAS 17
                                   HK$'000         HK$'000

Increase in land use rights 4,040 4,240

Decrease in property,
plant and equipment (4,040) (4,240)
====== ======

Consolidated Income statement (Unaudited)

                                        Six months ended
                                   31 March 2006   31 March 2005
                                   HKAS 17         HKAS 17
                                   HK$'000         HK$'000

Total increase in loss for the period - -
====== ======

Increase in loss per share attributable
to the equity holders of the
Company (HK cent) - -
====== ======

1. Loss per share attributable to the equity holders of the Company

The calculation of basic loss per share for the six months ended 31
March 2006 is based on the respective unaudited consolidated net
loss attributable to the equity holders of the Company of
approximately HK$6,183,000 (2005: approximately HK$10,854,000)
and the weighted average of 1,551,660,470 shares (2005:
1,543,160,470 shares) in issue during the periods.

The diluted loss per share for the six months ended 31 March 2006
and 2005 has not been presented as the potential ordinary shares
outstanding had an anti-dilutive effect on the basic loss per share
for the six months ended 31 March 2006 and 2005.