Qiniu Limited — Earnings Release 2003

Dec 23, 2002

Listed Company Information

RONTEX INT'L<01142> - Results Announcement Rontex International Holdings Limited announced on 23/12/2002: (stock code: 01142 ) Year end date: 31/03/2003 Currency: HKD Auditors' Report: N/A Review of Interim Report by: Audit Committee (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/04/2002 from 01/04/2001 to 30/09/2002 to 30/09/2001 Note ('000 ) ('000 ) Turnover : 92,256 72,451 Profit/(Loss) from Operations : 18,229 16,269 Finance cost : (753) (896) Share of Profit/(Loss) of Associates : 251 N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 16,362 14,419 % Change over Last Period : +13.5 % EPS/(LPS)-Basic (in dollars) : 0.1 0.088 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 16,362 14,419 Interim Dividend : 0.015 cent N/A per Share (Specify if with other : N/A N/A options) B/C Dates for Interim Dividend : 08/01/2003 to 10/01/2003bdi. Payable Date : 17/01/2003 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 presentation and principal accounting policies (a) Basis of presentation The Company was incorporated in the Cayman Islands on 7th June 2002 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 shares were listed on the Main Board of the Stock Exchange of Hong Kong Limited ("Stock Exchange") on 8th November 2002. Pursuant to a reorganization scheme to rationalize the structure of the Group (the "Group Reorganization") in preparation for the listing of the Company's shares on the main board of The Stock Exchange on 8th November 2002, the Company became the holding company of the companies now comprising the Group on 19th October 2002. This was accomplished by acquiring the entire issued share capital of Falcon Vision Limited ("Falcon Vision"), the intermediate holding company of the subsidiaries, in consideration of and in exchange for the allotment and issue of 10,000,000 ordinary shares of HK$0.01 each in the share capital of the Company, credited as fully paid, to the former shareholders of Falcon Vision; and the crediting as fully paid at par the existing 10,000,000 nil paid shares held by the former shareholders of Falcon Vision. Further details of the Group Reorganisation are set out in Appendix V of the Company's Prospectus dated 28th October 2002 (the "Prospectus"). The Group Reorganisation involved companies under common control. As the Group Reorganisation took place on 19th October 2002, according to the Statement of Standard Accounting Practice ("SSAP") 27 "Accounting for group reorganisation" issued by the Hong Kong Society of Accountants ("HKSA"), the Company together with its subsidiaries should only be regarded and accounting for as a continuing group in the preparation of the Group's financial statements commencing from the period ended after 19th October 2002. Nevertheless, for the benefit of shareholders, unaudited pro forma combined interim financial statements ("Interim Accounts") for the current period and the related notes thereto have been presented on the basis that the Company is treated as the holding company of its subsidiaries for the financial periods presented rather than from the subsequent date of its acquisition of the subsidiaries on 19th October 2002. The pro forma combined results of the Group for the six months ended 30th September 2001 and 2002 include the results of the Company and its subsidiaries with effect from 1st April 2001 or since their respective dates of incorporation/establishment, where this is a shorter period. The condensed pro forma combined balance sheets as at 31st March 2002 and 30th September 2002 have been prepared on the basis that the current group structure was in place at those dates. All significant transactions and balances among the companies comprising the Group have been eliminated on combination. Although the Group Reorganization had not been completed and, accordingly, the Group did not legally exist until 19th October 2002, in the opinion of the Directors of the Company the presentation of such Interim Accounts prepared on the above basis is necessary to apprise the Company's shareholders of the Group's results and its state of affairs as a whole. These Interim Accounts have been prepared in accordance with the disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited (the "Listing Rules") and is in compliance with SSAP 25 "Interim financial reporting" issued by the HKSA. (b) Principal accounting policies The same accounting policies adopted in the accountants' report as disclosed in the Prospectus have been applied to the Interim Accounts, except that the Group has adopted the following new or revised SSAPs issued by the HKSA which are effective for accounting periods commencing on or after 1st January 2002: SSAP 1 (revised) "Presentation of financial statements" SSAP 11 (revised) "Foreign currency translation" SSAP 15 (revised) "Cash flow statements" SSAP 34 "Employee benefits" The adoption of these recently issued and revised SSAPs has had no material effect on the Interim Accounts, except for SSAP 1 revised and SSAP 15 (revised) with their major impact summarised as follows:- SSAP 1 (revised) prescribes the basis for the presentation of financial statements and sets out guidelines for their structure and minimum requirements for the content thereof. The main revision to this SSAP is to change the requirements from presenting a statement of recognized gains and losses to a statement of changes in equity. The condensed pro forma combined statement of changes in equity for the current interim period and the comparative figures have been presented in accordance with the revised SSAP. SSAP 15 (revised) prescribes the provision of information about the historical changes in cash and cash equivalents by means of a cash flow statement which classified cash flows during the period into operating, investing and financing activities. The condensed pro forma combined cash flow statement for the current interim period and the comparative figures have been presented in accordance with the revised SSAP. These Interim Accounts have been reviewed by the audit committee of the Company and were approved by the Board on 23rd December 2002. 2. Earning per share The calculation of earnings per share is based on the net profit from ordinary activities attributable to shareholders for each of the periods and on the assumption that 164,000,000 shares were in issue, comprising the 20,000,000 shares in issue as at the date of the Prospectus and the 144,000,000 shares to be issued pursuant to the Capitalization Issue, as disclosed more fully in the paragraph headed "Resolutions of all shareholders of the Company passed on 19th October 2002" in Appendix V to the Prospectus. There were no dilutive potential ordinary shares during the periods end, therefore, no diluted earnings per share have been presented.