hmvod Limited — Earnings Release 2003

Nov 8, 2002

GEM

SYSTEK INFOTECH<08103> - Results Announcement (Q2, 2002/2003, Summary)

Systek Information Technology (Holdings) Limited announced on 8th November 2002:
(stock code: 08103)

Year end date :31/03/2003
Currency :HKD
Auditors' report :N/A
Review of 2nd 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 01/04/2002   from 01/04/2001
                                     to 30/09/2002     to 30/09/2001
                                             $'000             $'000

Turnover : 21,161 15,887
Profit/(Loss) from Operations : (14,159) (26,209)
Finance cost : 0 (66)
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 : (14,159) (26,049)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : (HKD 0.01366) (HKD 0.02513)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : (14,159) (26,049)
2nd Quarterly Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 2nd Quarterly Dividends : N/A
Payable Date : N/A
B/C Dates for Annual General Meeting : N/A
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A

                                                     For and on behalf of
                                     Systek Information Technology (Holdings) Limited
                        Signature :
                        Name      :                         C.K.To
                        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 Reorganisation and basis of presentation

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').

The Group resulting from the Reorganisation 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 periods presented,
rather than from 26 August 2000. Furthermore, the results of the
Group for the periods ended 30 September 2002 and 2001 included the
results of the Group with effect from 1 April 1999 or since their
respective dates of incorporation, whichever is a shorter period. In
the opinion of the Board, the resulting consolidated results give a
more meaningful view of the results of the Group as a whole.

All significant intra-group transactions and balances have been
eliminated in the preparation of the consolidated results.

The unaudited condensed consolidated interim accounts (`interim
accounts') are prepared in accordance with Hong Kong Statement of
Standard Accounting Practice (`SSAP') 2.125 `Interim Financial
Reporting' issued by the Hong Kong Society of Accountants, and
Chapter 18 of the Listing Rules of the Growth Enterprise Market of
The Stock Exchange of Hong Kong Limited. The interim accounts should
be read in conjunction with the 2002 annual accounts.

The accounting policies and methods of computation used in the
preparation of the interim accounts are consistent with those used in
the annual accounts for the year ended 31 March 2002, except that the
Group has adopted the new and revised SSAPs which became effective on
1 January 2002. The adoption of these new and revised SSAPs has no
material effect on the Group's results.

2 Turnover

The principal activities of the Group are the provision of systems
development and consultancy services and sale of software and
hardware products. Turnover represents income arising from the
provision of systems development and consultancy services, provision
of IT engineering and technical support services, provision of
training courses and the sale of software and hardware products.

An analysis of the turnover by principal activities of the
operations of the Group during the reporting periods is as follows:

                   Three                 Six months  
                  months                 ended 30    
                 ended 30                September   
                September                             
           2002         2001         2002         2001        
         HK$'000      HK$'000      HK$'000      HK$'000

Principal
activities

Systems 7,183 5,866 13,337 8,419
development
Sales of 842 1,053 1,071 2,123
software
and
hardware
products
Professional 2,532 2,503 5,746 4,087
service
fees
Training 453 461 1,007 1,258
fees

         11,010       9,883        21,161       15,887

3 Taxation

No provision for taxation has been made for the three months and six
months ended 30 September 2002 and 2001 as the Group sustained losses
for taxation purpose during both periods.

Subsidiaries operating in the PRC are exempted from PRC income tax
for two years commencing from the first profit making year and are
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%. These subsidiaries sustained losses since
incorporation and the two-year tax exemption period has not
commenced.

4 Loss per share

The calculation of basic loss per share for the three months and six
months ended 30 September 2002 was based on the loss attributable to
shareholders of approximately of HK$7,099,000 and HK$14,159,000
(2001: loss of HK$11,892,000 and HK$26,049,000) divided by the
weighted average number of 1,036,375,000 (2001: 1,036,375,000) shares
in issue during the period.

There were no potential dilutive ordinary shares in issue during the
three months and six months ended 30 September 2002 and 2001.