Medlive Technology Co., Ltd. — Earnings Release 2000

May 2, 2001

Listed Company Information

GUANGDONG KELON<0921> - Results Announcement Guangdong Kelon Electrical Holdings Company Limited announced on 27/4/2001: (stock code: 921) The auditors' report on the financial statements which contain the following result is qualified by the Company's auditors. For more details, please refer to the press announcement issued by the Company on 2/5/2001. Year end date: 31/12/2000 Currency: RMB (Audited) (Audited) Last Current Corresponding Period Period from 1/1/2000 from 1/1/1999 to 31/12/2000 to 31/12/1999 ('000) ('000) Turnover : 3,869,503 5,597,880 Profit/(Loss) from Operations : (951,284) 754,275 Finance cost : (73,031) (72,261) Share of Profit/(Loss) of Associates : 10,699 - Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : (688,001) 632,771 % Change over Last Period : N/A EPS/(LPS)-Basic : (RMB0.69) RMB0.67 -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (688,001) 632,771 Final Dividend per H Share : NIL RMB0.214 (Specify if with other options) : N/A N/A B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 19/5/2001 to 18/6/2001 bdi. Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: (1) Prior year adjustments In accordance with revised IAS 10 "Events After the Balance Sheet Date", dividends proposed or declared after the balance sheet date are no longer permitted to be recognised as a liability as at the balance sheet date. This change in accounting policy has been applied retrospectively with the result that the retained earnings of the Group as of 31 December 1998 and 1999 were increased by approximately RMB188,749,000 and RMB212,289,000, respectively, representing the dividends declared by the Company after the respective balance sheet dates. In addition, prior 1 January 2000, expenditures incurred prior to commencement of business operations of individual subsidiaries and certain of the pension costs are deferred and amortised on a straight-line basis over a period of five and twenty years, respectively. With the adoption of IAS 38 "Intangible Assets" for the year ended 31 December 2000, the Group changed its accounting policy whereby all pre-operating expenditures and pension costs are expensed as incurred. The effect of changes in accounting policies had been accounted for retrospectively as prior year adjustments as follows: Group 2000 1999 RMB'000 RMB'000 ----------------------- Retroactive effect of change of accounting policies on beginning retained earnings - dividends 212,289 188,749 - write-off pre-operating expenditures (13,267) (17,167) - write-off deferred pension costs (10,875) (11,625) ------------------------ 188,147 159,957 ======================== Had the accounting policies of the Group remained the same as those in the prior years, the Group's profit attributable to shareholders for the year ended 31 December 1999 would have decreased by approximately RMB4,650,000 and loss attributable to shareholders for the year ended 31 December 2000 would have increased by approximately RMB5,881,000, representing amortisation of the pre-operating expenditure and defered pension costs. (2) Comparative figures In addition of the prior year adjustments described on the above, certain of the 1999 comparative figures have been reclassified to conform to the current year's presentation. For more details, please refer to the press announcement today.