Comba Telecom Systems Holdings Limited — Earnings Release 2003

Sep 9, 2003

Listed Company Information

COMBA<02342> - Results Announcement Comba Telecom Systems Holdings Limited announced on 09/09/2003: (stock code: 02342 ) Year end date: 31/12/2003 Currency: HKD Auditors' Report: N/A Review of Interim Report by: Audit Committee (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/01/2003 from 01/01/2002 to 30/06/2003 to 30/06/2002 Note ('000 ) ('000 ) Turnover : 334,172 240,934 Profit/(Loss) from Operations : 94,076 72,621 Finance cost : (1,660) (1,322) 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 : 86,768 65,649 % Change over Last Period : +32.2 % EPS/(LPS)-Basic (in dollars) : 0.1446 0.1094 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 86,768 65,649 Interim Dividend : NIL NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Interim 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 Remarks: 1. GROUP REORGANISATION AND BASIS OF PRESENTATION The Company was incorporated as an exempted company with limited liability in the Cayman Islands on 17 May 2002 under the Companies Law, Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands and was listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 15 July 2003. Pursuant to a group reorganisation (the "Reorganisation") to rationalise the Group structure for the listing of the ordinary shares of HK$0.10 each in the share capital of the Company on the Stock Exchange, the Company became the holding company of the Group formed after completion of the Reorganisation on 20 June 2003. Details of the Reorganisation are set out in the prospectus of the Company dated 3 July 2003 (the "Prospectus"). The Group Reorganisation involved companies under common control. The unaudited condensed consolidated interim financial statements for the six months ended 30 June 2003 have been prepared in accordance with Statements of Standard Accounting Practice ("SSAP") No. 27 "Accounting for group reconstructions" issued by the Hong Kong Society of Accountants ("HKSA"). Under this basis, the condensed consolidated interim financial statements for the six months ended 30 June 2003 together with the comparative figures of the corresponding period in last year and the related notes thereto have been presented in these condensed consolidated interim financial statements on the basis that the Company is treated as the holding company of its subsidiaries for the financial periods presented rather than from the subsequent date of acquisition of the subsidiaries on 20 June 2003, except that the results of WaveLab Holdings Limited and WaveLab Inc. were consolidated into the condensed consolidated financial statements since 29 January 2003, being the date of acquisition of these subsidiaries. The unaudited condensed consolidated interim financial statements for the six months ended 30 June 2003 have been prepared in accordance with SSAP No. 25 "Interim financial reporting" issued by the HKSA and with the applicable disclosure requirements of Appendix 16 to Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules"). 2. EARNINGS PER SHARE The calculation of earnings per share for the Interim Period is based on the unaudited net profit attributable to shareholders for the six months ended 30 June 2003 and on the assumption that 600,000,000 shares were deemed to have been in issue, comprising 1,000 shares in issue as at the date of the Prospectus and 599,999,000 shares issued pursuant to the capitalisation issue, as described more fully in the Prospectus. No dilutive earnings per share amounts have been presented as the Company did not have any dilutive potential ordinary shares during the Interim Period.