hmvod Limited — Interim / Quarterly Report 2002

Aug 14, 2001

Quarterly Results Announcement Form

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

			(Unaudited)		(Unaudited)	(Unaudited)
		Current Period			Last Corresponding		Period
		(dd/mm/yyyy)			(dd/mm/yyyy)
	from		01/04/2001	from	01/04/2000
	to		30/06/2001	to	30/06/2000
			HK$'000			HK$'000
Turnover	:		6,005				13,865
Profit/(Loss) from Operations	:		-14,322					5,148
Finance cost	:		13					178
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	:		-14,156					4,146
% Change Over the Last Period	:		N/A	%
EPS / (LPS) - Basic	:		(1.366)Cents			0.691		Cents
- Diluted	:		N/A			0.564		Cents
Extraordinary (ETD) Gain/(Loss)	:		N/A					N/A
Profit (Loss) after ETD Items	:		N/A					N/A
1st Q Dividend per Share	:		N/A					N/A
(specify if with other options)	:		N/A					N/A
B/C Dates for 1st 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.
* Please delete as appropriate					(bdi: both days		inclusive)

Remarks :

Page 1

Quarterly Results Announcement Form

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.

Page 2

Quarterly 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 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 June 2001  and  2000  included  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  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  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 period is as follows:

Quarterly Results Announcement Form

                       Three months ended 30 June
                     2001                 2000
                     HK$'000              HK$'000
Principal
activities
System development   2,934                5,882
Sales of software    642                  3,989
and hardware
products
Professional         1,584                2,010
service fees
Training fees        797                  1,026
Technical support    47                   199
fees
Others               1                    759
                     6,005                13,865

3 (Loss)/profit from ordinary activities before taxation

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

                       Three months ended 30 June
                     2001                 2000
                     HK'000               HK'000
Crediting:
Interest income      562                  37
Charging:
Interest on bank     13                   178
advances and other
borrowings
repayable within
five years
Staff costs          12,627               6,739
Operating lease      1,107                233
rentals -
properties

Quarterly Results Announcement Form

Pre-operating costs  63                   -
written
off
Amortisation of      24                   -
deferred
asset
Depreciation         611                  273

4. Taxation

                       Three months ended 30 June
                     2001                 2000
                     HK'000               HK'000
Hong Kong Taxation   -                    101
Overseas Taxation    -                    -
                     -                    101
Deferred taxation    -                    716
                     -                    817

No  provision  for taxation has been made for the three months ended
30  June  2001  as  the Group sustained losses for taxation purpose
during the period.

The  provision  for Hong Kong Profits Tax is calculated at 16% of the
estimated  assessable  profits  arising  in Hong Kong for the three
months  ended  30 June 2001. 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%. No provision for taxation has been made for the
three  months ended 30 June 2001 since the subsidiary is still within
the two-year tax exemption period.

5 (Loss)/Earnings per share

(a) Basic (loss)/earnings per share

The  calculation  of  basic loss per share is based on the combined
loss  attributable to shareholders for three months ended 30 June 2001
of  approximately  of  HK$14,156,000 divided by the weighted average
number  of 1,036,375,000 shares in issue during the three months ended
30 June 2001.

The  calculation  of  basic earnings per share for the three months
ended  30  June 2000 is based on the combined profit attributable to

Quarterly Results Announcement Form

shareholders  of  approximately  HK$4,146,000 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 during the
period ended 30 June 2001.

The  calculation  of diluted earnings per share for the three months
ended  30  June  2000  is  based  on the adjusted combined profit
attributable  to shareholders of HK$4,324,000 and the weighted average
number  of  ordinary shares of 766,774,667 shares after adjusting for
the  effects of the dilutive potential ordinary shares committed under
the  convertible notes issued on 20 December 1999, 29 January 2000, 27
April  2000, 6 May 2000 and 15 May 2000 which entitled the noteholders
to  convert the paid up principal into ordinary shares of the Company.

(c) Reconciliations

                               2000
                               HK$'000
Profit attributable to         4,146
shareholders
Interest paid for the          178
convertible notes
Adjusted profit attributable   4,324
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       166,774,725
share
Weighted average number of     766,774,667
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$'000      HK$'000

Quarterly Results Announcement Form

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
At 1 April   33,144       (32)         (21,168)     11,944
2001
Exchange     -            (27)         -            (27)
differences
on
translation
of accounts
of
subsidiaries
 outside
Hong
Kong
Loss for     -            -            (14,156)     (14,156)
the period
At 30 June   33,144       (59)         (35,324)     (2,239)
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.