hmvod Limited — Annual Report 2001

Aug 1, 2001

Yearly Results Announcement Form

Yearly Results announcement form

Name of listed company :	Systek Information Technology (Holdings)	Systek Information Technology (Holdings)	Systek Information Technology (Holdings)	Systek Information Technology (Holdings)	Systek Information Technology (Holdings)	Systek Information Technology (Holdings)	Systek Information Technology (Holdings)	Systek Information Technology (Holdings)	Limited
Stock code :	8103
Year end date :	31/03/2001
Auditors' report :			Qualified
			Modified
	X		Neither
				(* Audited)					(* Audited)
			Current Period						Last Corresponding Period
			(dd/mm/yyyy)						(dd/mm/yyyy)
	from				01/04/2000			from	01/04/1999
		to			31/3/2001			to	31/3/2000
						HK$'000				HK$'000
Turnover	:						35,628			40,013
Profit/(Loss) from Operations	:					-28,641				8,663
Finance cost	:						-592			-124
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	:					-28,541				6,669
% Change Over the Last Period	:						N/A	%
EPS / (LPS) - Basic	:				(3.362)cents				1.112 cents
- Diluted	:						N/A		1.235 cents
Extraordinary (ETD) Gain/(Loss)	:						N/A			N/A
Profit (Loss) after ETD Items	:						N/A			N/A
Final Dividend per Share	:						N/A			N/A
(specify if with other options)	:						N/A			N/A
B/C Dates for Final Dividend	:						N/A	to		N/A bdi.
Payable Date	:						N/A
B/C Dates for AGM/SGM	:						N/A	to		N/A bdi.
Other Distribution for Current Period	:		N/A
B/C Dates for Other Distribution	:						N/A	to		N/A bdi.
* Please delete as appropriate									(bdi: both days inclusive)

Remarks :

Page 1

Yearly Results Announcement Form

For and on behalf of Systek Information Technology (Holdings) Limited Signature : Name : TO, Chiwun-Caritas Christine 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.

Page 2

Yearly Results Announcement Form

Notes:-

1 Reorganisation and basis of presentation

(a) Reorganisation

The  Company  was incorporated in the Cayman Islands on 16 March 2000
as  an exempted company with limited liability under the Companies Law
(Revised)  of  the  Cayman  Islands. The Company became the holding
company  of the Group on 26 August 2000 through a reorganisation (the
`Reorganisation').

(b) Basis of presentation

The  Company  and  its subsidiaries (the `Group') resulting from the
Reorganisaton  has  been regarded as a continuing group. Accordingly,
the  consolidated  results have been prepared on the basis of merger
accounting,  under  which the Company was the holding company of the
Group  for  both  years presented, rather than from 26 August 2000.
Furthermore,  the  results of the Group for the years ended 31 March
2000  and 2001 include the results of the Company and its subsidiaries
with  effect  from  1 April 1999 or since their respective dates of
incorporation,  whichever  is a shorter period. In the opinion of the
Directors,  the resulting consolidated results give a more meaningful
view of the results of the Group as a whole.

All  material  inter-company transactions and balances are eliminated
on consolidation.

(c) Statement of compliances

The  consolidated  results have been prepared in accordance with all
applicable  statements  of  Standard  Accounting  Practice   and
Interpretations  issued  by the Hong Kong Society of Accountants and
accounting principles generally accepted in Hong Kong.

2 Turnover

An  analysis  of  the principal activities of the operations of the
Group during the year is as follows:

                     2001                 2000
                     HK$'000              HK$'000
Principal
activities
Systems development  12,738               14,375
Sales of software    9,990                13,072
products
Professional         7,639                7,641
service fees
Training fees        3,362                3,680
Technical support    1,557                730
fees
Others               342                  515

Yearly Results Announcement Form

                     35,628               40,013

3. (Loss)/profit from ordinary activities before taxation

(Loss)/profit  from ordinary activities before taxation is arrived at
after charging

                     2001                 2000
                     HK$'000              HK$'000
Interest on bank     592                  124
advances and other
borrowings
repayable within
five years
Staff costs          36,910               24,050
Research and         7,906                4,781
development costs
Operating lease      3,304                2,422
rentals -
properties
Pre-operating costs  236                  -
written off
Amortisation of      48                   -
deferred assets
Auditors'            950                  82
remuneration
Depreciation         1,441                606
Provision for bad    5,942                -
and doubtful debts
Provision for        2,573                -
foreseeable losses
on systems
development
projects
Provision for        3,200                -
diminution in value
against investment
securities

4 Taxation

                     2001                 2000
                     HK$'000              HK$'000
Hong Kong taxation   32                   1,588

Yearly Results Announcement Form

Overseas taxation    -                    282
                     32                   1,870
Deferred taxation    263                  -
                     295                  1,870

No  provision  for taxation has been made for the year ended 31 March
2001  as  the Group sustained losses for taxation purpose during the
year.

The  provision  for Hong Kong Profits Tax is calculated at 16% of the
estimated  assessable profits arising in Hong Kong for the year ended
31  March  2000.  Taxation on the profits of subsidiaries operating
outside  Hong  Kong is calculated at the current rates applicable in
the respective jurisdictions.

A  subsidiary  operating  in the PRC is exempted from PRC income tax
for  two  years  commencing from the first profit making year and is
entitled  to a 50% relief from PRC income tax for the following three
years,  after  which the profits are subject to PRC income tax at the
standard  rate  of  33%.  The  subsidiary  sustained losses since
incorporation  and  the  two-year tax exemption period has not been
commenced.

5. (Loss)/earnings per share

(a) Basic (loss)/earnings per share

The  calculation  of basic loss per share for the year ended 31 March
2001  is based on the loss attributable to shareholders of $28,541,000
divided  by the weighted average number of 848,922,921 shares in issue
during the year.

The  calculation  of  basic earnings per share for the year ended 31
March  2000  is  based  on  the  combined profit attributable to
shareholders  of  $6,669,000 divided by 599,999,942 shares, prior to
the  placing  but  after adjusting the effect of the capitalisation
issue on 1 September 2000.

(b) Diluted earnings per share

There  were  no potential dilutive ordinary shares in issue as at 31
March 2001.

The  calculation  of diluted earnings per share for the year ended 31
March  2000  is  based  on  the  combined profit attributable to
shareholders  of  $7,631,000  and  the  weighted average number of
ordinary  shares of 618,104,051 shares after adjusting for the effects
of  the  dilutive  potential  ordinary  shares committed under the
convertible  notes  issued  on 20 December 1999 and 29 January 2000
which  entitle  the noteholders to convert the paid up principal into

Yearly Results Announcement Form

ordinary shares of the Company.

(c) Reconciliations

                               2000
                               HK$'000
Profit attributable to         6,669
shareholders
Interest paid for the          962
convertible
notes
Adjusted profit attributable   7,631
to
shareholders
                               2000
                               Number of Shares
Weighted average number of     599,999,942
ordinary shares used in
calculating basic earnings
per share
Deemed issue of ordinary       18,104,109
shares
Weighted average number of     618,104,051
ordinary shares used in
calculating diluted earnings
per share

6. Reserves

             Share        Exchange     Retained     Total
             premium      reserves     profits/
                                       (Accumulated
                                        losses)
             HK$'000      HK$'000      HK$'000      $'000
At 1 April   -            21           704          725
1999
Exchange     -            20           -            20
differences
on
translation
of accounts
of
subsidiaries
 outside
Hong Kong
Profit for   -            -            6,669        6,669

Yearly Results Announcement Form

the
year
At 31 March  -            41           7,373        7,414
2000
At 1 April   -            41           7,373        7,414
2000
Premium on   127,840      -            -            127,840
the
issuance of
shares
Shares       (15,389)     -            -            (15,389)
issue
expenses
Capitalisati (79,307)     -            -            (79,307)
on issue
Exchange     -            (73)         -            (73)
differences
on
translation
of accounts
of
subsidiaries
 outside
Hong
Kong
Loss for     -            -            (28,541)     (28,541)
the year
At 31 March  33,144       (32)         (21,168)     11,944
2001

The  PRC  subsidiary  may allocate to general reserve, which can be
used  to make good losses and to convert into paid-up capital, at the
discretion of the board of directors of the subsidiary.

No  transfer  to  the general reserve was made by the PRC subsidiary
during the year.