Dadi International Group Limited — Earnings Release 2004

Feb 11, 2004

GEM

MILKYWAY IMAGE<08130> - Results Announcement (Q3, 2003/2004, Summary)

Milkyway Image Holdings Limited announced on 11/02/2004:
(stock code: 08130 )

Year end date :31/03/2004
Currency :HKD
Auditors' report :N/A
Review of 3rd 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 01/04/2003   from 01/04/2002
                                     to 31/12/2003     to 31/12/2002
                                             $'000             $'000

Turnover : 22,696 33,075
Profit/(Loss) from Operations : (8,869) 2,125
Finance cost : (27) 0
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 : (8,896) 2,125
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : HKD (0.0140) HKD 0.0039
Diluted (in dollar) : N/A HKD 0.0038
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : (8,896) 2,125
3rd Quarterly Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 3rd 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
                                   Milkyway Image Holdings Limited
                        Signature :
                             Name :Siu Yun Tang
                            Title :Company Secretary

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.

Remark:

1. Basis of preparation and consolidation
   The measurement basis used in the preparation of the condensed
   financial statements is historical cost. The unaudited consolidated
   financial statements of the Group have been prepared on the basis of
   merger accounting. Under this basis, the Company has been treated as
   the holding company of its subsidiaries for the financial periods
   presented rather than from the date of acquisition of the subsidiaries.

The unaudited consolidated financial statements have been prepared in
accordance with accounting policies generally accepted in Hong Kong
and the applicable disclosure requirements of the GEM Listing Rules.

During the nine months ended 31 December 2003, the Group adopted
the Hong Kong Statement of Standard Accounting Practice ("SSAP")
12 (revised) "Income Taxes" for the first time in the preparation of
the unaudited consolidated financial statements.

SSAP 12 (revised) prescribes the basis for accounting and disclosure
requirements for deferred tax. In prior years, deferred tax is provided
using the income statement liability method on all significant timing
differences to the extent it is probable that the liability will
crystallize in the foreseeable future. SSAP 12 (revised) requires the
deferred tax to be provided in full, using the liability method,
on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements.
The adoption of SSAP 12 (revised) had no material effect on the results
for the current or prior accounting periods.

1. Earnings/(Loss) per share

The calculation of the basic and diluted earnings/(loss) per share is
based on the following data:
Three months Nine months
ended 31 December ended 31 December
2003 2002 2003 2002
HK$'000 HK$'000 HK$'000 HK$'000

Profit/(loss) for the period

Profit/(loss) for
calculating basic and
diluted earnings/
(loss) per share (1,746) 1,050 (8,896) 2,125
========= ========= ========= =========
Number of shares

Weighted average number of ordinary
shares used in the calculation
of basicearnings/(loss)
per share 644,000,000 627,200,000 633,736,727 542,466,909

Effect of dilutive potential
ordinary shares - 16,800,000 8,857,900 14,173,091
___________ ___________ ___________ ___________

Weighted average number of ordinary
shares used in the calculation
of diluted earnings/(loss)
per share 644,000,000 644,000,000 642,594,627 556,640,000
========= ========= ========= =========

No diluted loss per share for the three months and nine months
ended 31 December 2003 were presented as the share options
exercised during the period under review would result in a
decrease in net loss per share.

1. Dividend
   The Directors do not recommend the payment of any dividend for the
   nine months ended 31 December 2003 (2002: Nil).