Kingwell Group Limited — Earnings Release 2003

Oct 2, 2003

Listed Company Information

SINOTRONICS<01195> - Results Announcement Sinotronics Holdings Limited announced on 02/10/2003: (stock code: 01195 ) Year end date: 30/06/2003 Currency: RMB Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/07/2002 from 01/07/2001 to 30/06/2003 to 30/06/2002 Note ('000 ) ('000 ) Turnover : 241,543 204,142 Profit/(Loss) from Operations : 88,807 82,827 Finance cost : (2,567) (3,567) Share of Profit/(Loss) of Associates : 793 0 Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 Profit/(Loss) after Tax & MI : 73,357 64,767 % Change over Last Period : +13.3 % EPS/(LPS)-Basic (in dollars) : 0.18 0.18 -Diluted (in dollars) : 0.18 N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : 73,357 64,767 Final Dividend : HKD 4 cents HKD 3 cents per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 29/10/2003 to 04/11/2003bdi. Payable Date : 14/11/2003 B/C Dates for Annual General Meeting : 29/10/2003 to 04/11/2003bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Background of the Company The Company was incorporated in the Cayman Islands on 29 September 2000 as an exempted company with limited liability under the Companies Law (Revised) of the Cayman Islands. Its shares had been listed on the Growth Enterprise Market (the "GEM") of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") since 17 May 2001. On 20 January 2003, the Company withdrew the listing of its shares on the GEM and on the same date, the Company's shares were listed on the Main Board of the Stock Exchange by way of introduction. 2. Basis of Preparation The financial statements for the year ended 30 June 2003 have been prepared in accordance with all applicable Statements of Standard Accounting Practice ("SSAPs") and Interpretations issued by the Hong Kong Society of Accountants ("HKSA"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. The financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange. A summary of the significant accounting policies adopted by the Group is included in the annual report to be sent to shareholders. 3. Changes in Accounting Policies The effects of the adoption of the applicable new or revised SSAPs issued by the HKSA on the results and financial position of the Group are as follows: (a) SSAP 1 (Revised) "Presentation of financial statements" The consolidated statement of recognized gains and losses is replaced by the consolidated statement of changes in equity. (b) SSAP 11 (Revised) "Foreign currency translation" In prior years, the results of subsidiaries which are not denominated in Chinese Renminbi were translated into Chinese Renminbi at the rates of exchange ruling at the balance sheet date. With effect from 1 July 2002, in order to comply with SSAP 11 (revised) issued by the HKSA, the Group translates the results of these subsidiaries at the average exchange rate for the year. The effect of this change in accounting policy is not material and, therefore, the opening balances have not been restated. (c) SSAP 34 "Employee benefits" This SSAP 34 prescribes the accounting and disclosure requirements for employee benefits. This has had no major impact on the financial statements. 4. Earnings per share Basic earnings per share The calculation of basic earnings per share is based on the profit attributable to shareholders of approximately RMB73,357,000 (2002: RMB64,767,000) and on the weighted average of 402,625,000 (2002: 354,721,000) ordinary shares in issue during the year Diluted earnings per share. The calculation of diluted earnings per share for the year ended 30 June 2003 is based on the profit attributable to shareholders of approximately RMB73,357,000 and the weighted average number of 402,716,859 ordinary shares after adjusting for the effects of all potential dilutive shares. Diluted earnings per share for the year ended 30 June 2002 was not presented as there was no dilutive potential ordinary shares in existence during the year ended 30 June 2002.