hmvod Limited — Earnings Release 2002

Feb 2, 2002

             Quarterly Results announcement form

Name of listed company : Systek Information Technology (Holdings) Limited

Stock code : 8103

Year end date : 31/03/2002

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

Currency: HK$'000
(Unaudited) (Unaudited)
Last
Quarterly Results Announcement Current Corresponding
Period Period
from 01/04/2001 from 01/04/2000
to 31/12/2001 to 31/12/2000
HK$'000 HK$'000

Turnover : 25,642 35,210
Profit/(Loss) from Operations : (35,206) 3,772
Finance cost : (77) (593)
Share of Profit/(Loss) of Associates : 0 0
Share of Profit/(Loss) of
Jointly Controlled Entites : 0 0
Profit/(Loss) after Taxation & MI : (35,054) 3,194
% Change Over the Last Period : N/A %
EPS / (LPS) - Basic : -3.382 cents 0.400 cents
- Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : 0 0
Profit (Loss) after ETD Items : (35,054) 3,194
3rd Q * Dividend per Share : 0 0
(specify if with other options) : N/A N/A
B/C Dates for 3rd Q* 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.
(bdi: both days inclusive)

                                     For and on behalf of
                           Systek Information Technology (Holdings) Limited
                         Signature :
                              Name :      To Cho Kei
                             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.

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 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 31 December 2001 and 2000 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.

(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
The principal activities of the Group are the provision of systems
development and consultancy services and sales of software and
hardware products. Turnover represents income arising from the
provision of system development and consultancy services, provision
of IT engineering and technical support services, provision of
training courses and the sales 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                     Nine months
                      months                    ended 31
                      ended 31                  December
                      December
         2001         2000         2001         2000
         HK$'000      HK$'000      HK$'000      HK$'000

Principal
activites
Systems 6,647 4,342 14,421 14,606
development
Sales of 236 2,414 1,929 9,375
software
and
hardware
products
Professional 2,098 2,766 6,185 6,273
service
fees
Training 463 1,089 1,720 2,879
fees
Technical 304 405 1,344 752
support
fees
Others 7 - 43 1,325

         9,755        11,016       25,642       35,210

3 (Loss)/ profit from ordinary activities before taxation
(Loss)/ profit from ordinary activities before taxation is arrived
at after crediting and charging:

                      Three                     Nine months
                      months                    ended 31
                      ended 31                  December
                      December
         2001         2000         2001         2000
         HK$'000      HK$'000      HK$'000      HK$'000

Crediting
Interest 91 1,625 948 2,154
income

Charging
Interest on 11 53 77 593
bank
advances
and other
borrowings
repayable
within five
years
Staff costs 9,989 1,283 32,164 5,011
Operating 1,353 584 3,852 1,332
lease
rentals -
properties
Pre-operatin - - 65 655
g costs
written off
Amortisation 24 - 72 -
of
deferred
assets
Auditors' 900 - 911 160
remuneration
Depreciation 709 443 1,942 989

4 Taxation
Three Nine months
months ended 31
ended 31 December
December
2001 2000 2001 2000
HK$'000 HK$'000 HK$'000 HK$'000

Hong Kong - - 101
taxation
Overseas - - - -
taxation

         -            -            -            101

Deferred - - - 263
taxation

         -            -            -            364

No provision for taxation has been made for the three months and
nine months ended 31 December 2001 as the Group sustained losses for
taxation purpose during the period.

The provision for Hong Kong Profits Tax was calculated at 16% of the
estimated assessable profits arising in Hong Kong for the three
months and nine months ended 31 December 2000.

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%. No provision for taxation has been made for the
three months and nine months ended 31 December 2001 since the
subsidiary is still within the two-year tax exemption period.

5 (Loss)/Earnings per share
The calculation of basic loss per share for the three months and
nine months ended 31 December 2001 is based on the loss attributable
to shareholders of approximately of HK$9,004,000 and HK35,054,000
(2000: profit of HK$1,073,000 and HK$ 3,194,000) and the weighted
average number of 1,036,375,000 (2000: 1,036,375,000 and 793,944,412)
shares in issue throughout the relevant accounting period,
respectively.

There was no potential dilutive ordinary shares in issue during the
three months and nine months ended 31 December 2001 and 2000.

6 Reserves
Share Exchange Retained Total
premium reserves profits/
(Accumulated
losses)
HK$'000 HK$'000 HK$'000 HK$'000

At 1 April 33,144 (32) (21,168) 11,944
2001
Exchange (326) - (326)
differences
on
translation
of accounts
of
subsidiaries
outside
Hong Kong
Loss for - - (35,054) (35,054)
the period

At 31 33,144 (358) (56,222) (23,436)
December
2001

According to the relevant PRC accounting rules and regulations, the
PRC subsidiary may appropriate part of its profits after tax to
general reserve, at the discretion of the board of directors of the
subsidiary. The general reserve can be used to make good losses and
to convert into paid-up capital.

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