hmvod Limited — Interim / Quarterly Report 2003

Aug 14, 2002

Quarterly Results announcement form

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

Stock code :8103

Year end date :31/03/2003

Auditors' report : Modified
Qualified
Unqualified
X N/A

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

Currency: HK$'000
(Unaudited) (Unaudited)
Quarterly Results Announcement Current Last
Corresponding
Period Period
from 01/04/2002 from 01/04/2001
to 30/06/2002 to 30/06/2001
HK$'000 HK$'000

Turnover : 10,151 6,005
Profit/(Loss) from Operations : -7,059 -14,322
Finance cost : -1 -13
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 : -7,060 -14,156
% Change Over the Last Period : N/A %
EPS / (LPS) - Basic : -0.681 cents -1.366 cents
- Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : 0 0
Profit (Loss) after ETD Items : -7,060 -14,156
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.
(bdi: both days inclusive)

                                               For and on behalf of
                                   Systek Information Technology (Holdings) Limited
                       Signature :
                       Name      :              Dr. Chan Kim Chung
                       Title     :             Executive Director

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

(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 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.

(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 systems 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 months ended  
                           30 June                
                 2002                 2001                
                 HK$'000              HK$'000

Principal activites

Systems development 5,830 2,934
Sales of software 229 642
and hardware
products
Professional 3,213 1,584
service
fees
Training fees 553 797
Technical support 326 48
fees

                 10,151               6,005

3 Loss from ordinary activities before taxation

Loss from ordinary activities before taxation is arrived at after
crediting and charging:

                     Three months ended  
                           30 June                
                 2002                 2001                
                 HK$'000              HK$'000

Crediting

Interest income 13 562

Charging

Interest on bank - 13
advances and other
borrowings
repayable within
five
years

Staff costs 10,174 12,627

Operating lease 1,095 1,107
rentals -
properties

Pre-operating costs 28 63
written
off
Amortisation of 24 24
deferred
assets
Auditors' 150 -
remuneration
Depreciation 710 611

4 Taxation
Three months ended
30 June
2002 2001
HK$'000 HK$'000

Hong Kong taxation - -
Overseas taxation - -
- -
Deferred taxation - -

                 -                    -

No provision for taxation has been made for the three months ended
30 June 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.

5 Loss per share

The calculation of basic loss per share for the three months ended
30 June 2002 was based on the loss attributable to shareholders of
approximately of HK$7,060,000 (2001: loss of HK$14,156,000) 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 ended 30 June 2002 and 2001.

6 Reserves
Share Exchange Accumulated Total
premium reserves losses
HK$'000 HK$'000 HK$'000 HK$'000

At 1 April 33,144 (358) (75,321) (42,535)
2002
Loss for - - (7,060) (7,060)
the
period

At 30 June 33,144 (358) (82,381) (49,595)
2002

According to the relevant PRC accounting rules and regulations, the
PRC subsidiaries may appropriate part of its profits after tax to
general reserve, at the discretion of the board of directors of the
subsidiaries. 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 subsidiaries
during the period.