Huitongda Network Co., Ltd. — Earnings Release 2005

Apr 25, 2006

Listed Company Information

Listed Company Information
GLOBAL FLEX<00471> - Results Announcement Global Flex Holdings Limited announced on 25/04/2006: (stock code: 00471 ) Year end date: 31/12/2005 Currency: USD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2005 from 01/01/2004 to 31/12/2005 to 31/12/2004 Note ('000 ) ('000 ) Turnover : 176,900 165,732 Profit/(Loss) from Operations : 19,443 30,728 Finance cost : (3,020) (1,684) 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 : 14,189 25,106 % Change over Last Period : -43.5 % EPS/(LPS)-Basic (in dollars) : 0.0134 0.0251 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 14,189 25,106 Final Dividend : HK 2.7 cents N/A per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 18/05/2006 to 23/05/2006 bdi. Payable Date : 30/06/2006 B/C Dates for Annual General Meeting : 18/05/2006 to 23/05/2006 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. GROUP REORGANISATION AND BASIS OF PREPARATION OF FINANCIAL STATEMENTS The Company was incorporated in the Cayman Islands on 22 July 2004 as an exempted company with limited liability under the Companies Law, Chapter 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The Company's ultimate holding company is Vertex Precision Electronics Inc. ("Vertex"), a company incorporated in Taiwan with limited liability on 6 January 1990, the shares of which are traded on Gretai Securities Market of the Republic of China. Pursuant to a group reorganisation to rationalise the structure of the Group in preparation for the listing of the Company's shares on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") (the "Group Reorganisation"), the Company became the holding company of its subsidiaries on 5 July 2005 except for Forever Jade Holding Limited and Suzhou Intellicircuit Solution Technology Co., Ltd which became subsidiaries of the Company at the end of 2005. The shares of the Company were listed on the Stock Exchange on 10 October 2005 (the "Listing Date"). Details of the Group Reorganisation were set out in the prospectus dated 28 September 2005 issued by the Company. The Group resulting from the Group Reorganisation is regarded as a continuing entity. Accordingly, the consolidated financial statements have been prepared using the principles of merger accounting basis in accordance with Statement of Standard Accounting Practice 27 "Accounting for Group Reconstructions". The financial statements are presented in the United States dollars, which is also the functional currency of the Company. 2. EARNINGS PER SHARE The calculation of basic earnings per share is based on the net profit from ordinary activities attributable to shareholders for the year ended 31 December 2005 of US$14,189,312 (2004: US$25,106,432) and the weighted average number of 1,056,849,315 (2004: 1,000,000,000) ordinary shares in issue during the year. Diluted earnings per share for the years ended 31 December 2005 and 2004 have not been disclosed as no diluting events existed during either year. The calculation of basic earnings per share for the year ended 31 December 2004 was based on the Company's 1,000,000,000 shares deemed to be issued throughout the year assuming the Group Reorganisation and the subsequent capitalization issue had been completed on 1 January 2004. 3. DIVIDENDS A final dividend of HK 2.7 cents per share was proposed by the directors of the Company and is subject to approval by the shareholders in the forthcoming annual general meeting. During the year ended 31 December 2004, Global Technology International Limited, a wholly owned subsidiary to the Company, had declared dividends of US$3,000,000 to its then shareholders prior to the Group Reorganisation. The dividend declared was settled during the year ended 31December 2005.