Kingwell Group Limited — Earnings Release 2004

Mar 22, 2004

Listed Company Information

SINOTRONICS<01195> - Results Announcement Sinotronics Holdings Limited announced on 22/03/2004: (stock code: 01195 ) Year end date: 30/06/2004 Currency: RMB Auditors' Report: N/A Interim report reviewed by: Both Audit Committee and Auditors (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/07/2003 from 01/07/2002 to 31/12/2003 to 31/12/2002 Note ('000 ) ('000 ) Turnover : 129,265 117,869 Profit/(Loss) from Operations : 47,950 37,484 Finance cost : (1,166) (1,213) Share of Profit/(Loss) of Associates : 2,864 1,501 Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 Profit/(Loss) after Tax & MI : 41,409 29,331 % Change over Last Period : +41.2 % EPS/(LPS)-Basic (in dollars) : 0.1 0.0728 -Diluted (in dollars) : 0.1 N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : 41,409 29,331 Interim Dividend : NIL NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Interim 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 Remarks: 1. BASIS OF PREPARATION The unaudited interim financial statements have been prepared in accordance with Statement of Standard Accounting Practice ("SSAP") 25 "Interim financial reporting" issued by the Hong Kong Society of Accountants and the disclosure requirement of 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 2003 except for the changes as described below: SSAP 12 (Revised) "Income Taxes" In prior years, deferred tax liabilities were provided using the liabilities method in respect of the taxation effect arising from all material timing differences between the accounting and tax treatment of income and expenditure, which were expected with reasonable probability to crystallies in the foreseeable future. Future deferred tax benefits were not recognised unless their realisation was assured beyond reasonable doubt. With effect from 1 July 2003, in order to comply with Statement of Standard Accounting Practice 12 (Revised) "Income taxes" issued by the Hong Kong Society of Accountants, the Group adopted a new accounting policy for deferred tax. A balance sheet method is used to recognise deferred tax in respect of all temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, with limited exceptions. The effect of adopting the new accounting policy has been applied retrospectively. The adoption of this revised accounting policy had no significant effect on the results for the current or prior accounting periods. Accordingly, no prior period adjustment is required. 2. EARNINGS PER SHARE (a) Basis earnings per share The calculation of the basic earnings per share for the six months ended 31 December 2003 was based on the unaudited consolidated profit attributable to shareholders of approximately RMB41,409,000 (2002: RMB29,331,000) and the weighted average number of 407,362,705 (2002: 402,625,000) ordinary shares in issue during the period. (b) Diluted earnings per share The calculation of diluted earnings per share for the six months ended 31 December 2003 was based on the unaudited consolidated profit attributable to shareholders of approximately RMB41,409,000 and the weighted average number of 408,108,838 ordinary shares after adjusting for the effect of all dilutive potential ordinary shares. Diluted earnings per share for the six months ended 31 December 2002 was not presented as there were no dilutive potential ordinary shares in existence during the period.