Kingwell Group Limited — Earnings Release 2003

Mar 25, 2003

Listed Company Information

SINOTRONICS<01195> - Results Announcement (Summary) Sinotronics Holdings Limited announced on 25/3/2003: (stock code: 1195) Year end date: 30/6/2003 Currency: RMB Auditors' Report: N/A Review of Interim Report by: Audit Committee (Unaudited) (Unaudited) Last Current Corresponding Period Period from 1/7/2002 from 1/7/2001 to 31/12/2002 to 31/12/2001 ('000) ('000) Turnover : 117,869 97,737 Profit/(Loss) from Operations : 37,484 41,078 Finance cost : (1,213) (1,730) Share of Profit/(Loss) of Associates : 1,501 0 Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 Profit/(Loss) after Tax & MI : 29,331 31,478 % Change over Last Period : -6.82% EPS/(LPS)-Basic : RMB7.28 cents RMB9.06 cents -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : 29,331 31,478 Interim Dividend per Share : Nil Nil (Specify if with other options) : N/A N/A B/C Dates for Interim Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : N/A 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 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 of Hong Kong Limited by way of introduction. 2. Basis of Preparation The unaudited interim financial statements have been prepared in accordance with Statement of Standard Accounting Practice ("SSAP") 25 "Interim financial reporting" and appendix 16 of the Rules Governing The Listing of Securities on the Stock Exchange of Hong Kong Limited. The accounting policies and methods of computation used in the preparation of the interim financial statements are the same as those used in the annual financial statements for the year ended 30 June 2002 except for the changes as described below. (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" The results of foreign enterprises are translated into Chinese Renminbi at the weighted average exchange rates during the period. This is a change in accounting policy from prior years where these were translated at exchange rates ruling at the balance sheet date. The effect of such change is immaterial to the financial statements. (c) SSAP 15 (Revised) "Cash flow statements" A revised classification of activities from which cash flows are derived has been made. As a result, cash flow during the period has been reclassified by operating, investing and financing activities. For the period ended 31 December 2001, net cash outflow from taxation of RMB3,635,000 has been reclassified as operating cash flow, interest received of RMB215,000 have been reclassified as investing cash flow, and finance costs paid of RMB1,730,000 have been reclassified as financing cash flow. (d) SSAP 34 "Employee benefits" This new SSAP 34 prescribes the accounting and disclosure requirements for employee benefits. This has had no major impact on the interim financial statements. 3. Earnings per share The calculation of the basic earnings per share for the six months ended 31 December 2002 was based on the unaudited consolidated profit attributable to shareholders of approximately RMB29,331,000 (2001: RMB31,478,000) and on the 402,625,000 (2001: 347,625,000) ordinary shares in issue during the period. Diluted earnings per share was not presented as there were no dilutive potential ordinary shares in existence in both periods presented.