Sing Lee Software (Group) Limited — Earnings Release 2004

Aug 12, 2004

GEM

SING LEE<08076> - Results Announcement (Q2, 2004, Summary)

Sing Lee Software (Group) Limited announced on 11/08/2004:
(stock code: 08076 )

Year end date :31/12/2004
Currency :RMB
Auditors' report :N/A
2nd Quarterly Report Reviewed by :Audit Committee

Important Note :

This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com

                                      (Unaudited)        (Unaudited)
                                          Current Last Corresponding
                                           Period            Period
                                   from 01/01/2004   from 01/01/2003
                                     to 30/06/2004     to 30/06/2003
                                             $'000             $'000

Turnover : 9,764 14,224
Profit/(Loss) from Operations : (10,807) (11,892)
Finance cost : (137) (331)
Share of Profit/(Loss) of Associates : N/A N/A
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : (10,999) (12,226)
% Change Over the Last Period : N/A
EPS / (LPS)
Basic (in dollar) : (RMB 0.0182) (RMB 0.0203)
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : (10,999) (12,226)
2nd Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 2nd Quarter Dividends : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A
(bdi: both days inclusive)

For and on behalf of
Sing Lee Software (Group) Limited

Signature :
Name : Hung Yung Lai
Title : Director

Responsibility statement

The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for the
accuracy of the information contained in this results announcement form
(the "Information") and confirm, having made all reasonable inquiries,
that to the best of their knowledge and belief the Information are
accurate and complete in all material respects and not misleading and
that there are no other matters the omission of which would make the
Information herein inaccurate or misleading.The Directors acknowledge
that the Stock Exchange has no responsibility whatsoever with regard to
the Information and undertake to indemnify the Exchange against all
liability incurred and all losses suffered by the Exchange in connection
with or relating to the Information.

Remarks:

1. Basis of preparation

The accompanying financial statements have been prepared in accordance
with International Financial Reporting Standards ("IFRS") issued by the
International Accounting Standards Board, the disclosure requirements
of the Hong Kong Companies Ordinance and the Rules Governing the
Listing of Securities on the GEM. Except as otherwise stated, the
accompanying financial statements are prepared under the historical
cost convention.

Owing to the fact that the Group principally operates in the PRC and
its business activities are principally transacted in Renminbi ("RMB"),
the financial statements are prepared in RMB.

1. Turnover
   Six months ended
   30 June
   2004 2003
   RMB RMB
   ('000) ('000)
   Sale of software 6,249 4,743
   Sale of hardware 2,929 7,416
   Maintenance income 586 2,065
   _____ ______
   9,764 14,224
   ===== ======

2. Taxation
   Six months ended
   30 June
   2004 2003
   RMB RMB
   ('000) ('000)
   Other PRC taxation (Note a) - 3
   Business tax 55 -
   _____ _____
   55 3
   ===== =====

Hong Kong profits tax has not been provided as the Group had no income
assessable for profits tax in Hong Kong for the six months ended 30
June 2004 (2003: Nil).

PRC enterprise income tax approximately amounting to Rmb55,000 has been
provided at the rate 33% on the estimated assessable profits for the
six months ended 30 June 2004 in the PRC (2003:NIL)

There was no significant unprovided deferred taxation for the reported
periods.

Notes:
(a) Tax paid in respect to business operation and interest income of PRC
source.

1. Loss per share

The calculation of the Group's basic loss per share is based on the
Group's unaudited combined loss attributable to shareholder of
approximately RMB10,999,000(2003: a loss of approximately RMB12,226,000)
divided by the weighted average number of ordinary shares outstanding
as at 30 June 2004 of 603,000,000 shares (2003: 603,000,000 shares).

No diluted loss per share was presented as the exercise of share options
would have an anti-dilutive effect during the reported periods.
There was no significant unprovided deferred taxation for the reported
periods.

1. Dividend

The Board does not recommend the payment of dividend for the six
months ended 30 June 2004 (2003:NIL).