hmvod Limited — Interim / Quarterly Report 2003

Feb 10, 2003

GEM

SYSTEK INFOTECH<08103> - Results Announcement (Q3, 2002/2003, Summary)

Systek Information Technology (Holdings) Limited announced on 10/02/2003:
(stock code: 08103 )
Year end date: 31/03/2003
Currency: HKD
Auditors' Report: N/A
Review of Interim Report by: Audit Committee

Important Note:

This result announcement form only contain extracted information
from and should be read in conjunction with the detailed results
announcement of the issuer, which can be view on the GEM website
at http://www.hkgem.com

                                                    (Unaudited )
                                 (Unaudited )       Last
                                 Current            Corresponding
                                 Period             Period
                                 from 01/04/2002    from 01/04/2001
                                 to 31/12/2002      to 31/12/2001 
                           Note  ('000      )       ('000      )

Turnover : 31,155 25,642
Profit/(Loss) from Operations : (18,659) (35,206)
Finance cost : 0 (77)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (19,080) (35,054)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollar) : (0.0184) (0.0338)
-Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (19,080) (35,054)
3rd Quarterly Dividend : N/A N/A
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
3rd Quarterly Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A

                                 For and on behalf of 
                       Systek Information Technology (Holdings) Limited

                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
whatsever 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 as if the Company has always been the holding company of the
Group in accordance with the Statement of Standard Accounting Practice
No.27 "Accounting for Group Reconstruction", 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 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 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
system 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 months ended  Nine months ended 
        31 December     31 December 
        2002        2001        2002        2001 
        HK$'000     HK$'000     HK$'000     HK$'000

Principal activities

Systems development 4,883 6,958 18,454 15,808
Sales of software and
hardware products 1,718 236 2,789 1,929
Professional service fees2,892 2,098 8,638 6,185
Training fees 502 463 1,274 1,720

        9,995       9,755       31,155      25,642

3 Loss from ordinary activities before taxation

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

        Three months ended      Nine months ended 
        31 December         31 December 
        2002        2001        2002        2001 
        HK$'000     HK$'000     HK$'000     HK$'000

Crediting

Interest income 1 91 18 948

Charging

Interest on bank advances and
other borrowings repayable
within five years - 11 - 77
Staff costs 7,299 9,989 22,038 32,164
Exceptional item
- severance payment 421 - 421 -
Operating lease rentals 1,030 1,353 3,231 3,852
- properties
Pre-operating costs written off - - - 65
Amortisation of deferred assets - 24 48 72
Auditors' remuneration 150 900 450 911
Depreciation 646 709 1,911 1,942

4 Taxation

No provision for taxation has been made for the three months and nine
months ended 31 December 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.

No recognition of the potential deferred tax assets relating to tax
losses of the Group has been made as the recoverability of the potential
deferred tax assets is uncertain.

5 Loss per share

The calculation of basic loss per share for the three months and nine
months ended 31 December 2002 was based on the loss attributable to
shareholders of approximately of HK$4,920,000 and HK$19,080,000 (2001:
loss of HK$9,004,000 and HK$35,054,000) 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 nine months ended 31 December 2002 and 2001.

6 Reserves

        Share       Exchange    (Accumulated 
        premium     reserves    losses)     Total 
        HK$'000     HK$'000     HK$'000     HK$'000

At 1 April 2001 33,144 (32 ) (21,168 ) 11,944

Exchange differences on
translation of accounts
of subsidiaries outside - (326 ) - (326 )
Hong Kong

Loss for the period - - (35,054 ) (35,054 )

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

At 1 April 2002 33,144 (358 ) (75,321 ) (42,535 )

Exchange differences on
translation of accounts
of subsidiaries outside - 2 - 2
Hong Kong

Loss for the period - - (19,080 ) (19,080 )

At 31 December 2002 33,144 (356 ) (94,401 ) (61,613 )

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.