Qiniu Limited — Earnings Release 2003

Jul 28, 2003

Listed Company Information

RONTEX INT'L<01142> - Results Announcement Rontex International Holdings Limited announced on 28/07/2003: (stock code: 01142 ) Year end date: 31/03/2003 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/4/2002 from 1/4/2001 to 31/3/2003 to 31/3/2002 Note ('000 ) ('000 ) Turnover : 163,112 126,738 Profit/(Loss) from Operations : 30,235 25,068 Finance cost : (1,715) (1,793) Share of Profit/(Loss) of Associates : 512 718 Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 30,235 22,638 % Change over Last Period : +33.55 % EPS/(LPS)-Basic (in dollars) : 0.161 0.138 -Diluted (in dollars) : 0.161 0.138 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 30,235 22,638 Final Dividend : Nil Nil per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 16/9/2003 to 18/9/2003 bdi. Other Distribution for : Bonus issue of bonus shares: Current Period one bonus share for every one existing share held B/C Dates for Other Distribution : 16/9/2003 to 18/9/2003 bdi. Remarks: 1. GROUP REORGANISATION The Company was incorporated as an exempted company with limited liability in the Cayman islands on 7th June, 2002 under the Companies Law Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. Pursuant to a reorganization scheme to rationalize the structure of the Group in preparation for the listing of the Company' s shares on the Main Board of the Stock Exchange of Hong Kong Limited (the "Stock Exchange ") on 8th November 2002, the Company became the holding company of the companies now comprising the Group on 19th October 2002 (the "Group Reorganisation"). Further details of the Group Reorganisation are set out in Appendix 5 of the Company's prospectus dated 28th October 2002. The Company's shares were successfully listed on the Stock Exchange on 8th November 2002. 2. BASIS OF PRESENTATION AND CONSOLIDATION The consolidated financial statements include the financial statements of the Company and its subsidiaries for the year ended 31st March 2003. The results of subsidiaries acquired or disposed during the year are consolidated from or to their effective dates of acquisition or disposal, respectively. The Group Reorganisation involved companies under common control. The consolidated financial statements for the year ended 31st March 2003 were therefore prepared using the merger basis of accounting in accordance with SSAP 27 "Accounting for group reorganisation", as a result of the Group Reorganisation completed on 19th October 2002. Under this basis, the Company has been treated as the holding company of its subsidiaries for the financial years presented rather than from the subsequent date of its acquisition of the subsidiaries. Accordingly, the consolidated results of the Group for the year ended 31st March 2002 include the results of the Company and its subsidiaries with effective from 1st April 2001 or since their respective dates of incorporation or establishment, where this is a shorter period. The consolidated balance sheet as at 31st March 2002 has been prepared on the basis that the current group structure was in place at that date. In the opinion of the directors, the consolidated financial statements for the year ended 31st March 2003 prepared on the above basis present more fairly the results and the state of affairs of the Group as a whole. All significant intercompany transactions and balances within the Group are eliminated on consolidation. 3. EARNINGS PER SHARE The calculation of basic earnings per share is based on the net profit from ordinary activities attributable to shareholders for the year of HK$30,235,000 (2002: HK$22,638,000) and the weighted average of 187,375,342 (2002: 164,000,000) ordinary shares in issue during the year. The weighted average number of shares used to calculate the basic earnings per share for the year ended 31st March 2002 included the pro forma issued share capital of the Company deemed to have been issued throughout the year, comprising the 20,000,000 shares in issue as at the date of the Prospectus and the capitalisation issue of 144,000,000 shares. There were no potential dilutive shares in existence for the two years ended 31st March 2003 and, accordingly, no diluted earnings per share has been presented.