Sing Lee Software (Group) Limited — Regulatory Filings 2004

May 24, 2004

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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(Incorporated in Bermuda with limited liability)

(Stock code: 8076)

FURTHER SPECIFIC PROVISION OF DOUBTFUL RECEIVABLES

Due to the substitution by the competitors’ products and the closing down, merging and acquisition of customers, the Group found that it is difficult to collect the doubtful receivables of 28 customers approximately amounting to RMB2.5 million in the future. For prudence sake, the Group finally decided to write off these accounts receivable in the first quarterly report 2004.

The board of directors (the “Board”) of Sing Lee Software (Group) Limited (the “Company”) announces that the Company has written off approximately RMB2.5 million accounts receivable in the first quarterly report 2004 (approximately 7% of the net asset value of the Group as at 31 March 2004) which were outstanding over 1 year with doubtful collectibility. Most of these accounts receivable were related to the bank order placing system products of the Group and resulted from sales to those customers in the PRC made from 2000 to 2002. The aforesaid RMB2.5 million accounts receivable which were made up of 28 customers were based on genuine sales by the Group to its customers.

In recent years, there were many competitors continuously arising in the markets in respect of bank order placing system and security trading system products. Such competitors seized part of the Group’s market share. In certain cases, some of the Group’s customers stopped using the Group’s products and substituted with competitors’ products even though the Group’s products and services were partly installed and provided so that they refused to settle their outstanding debts.

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After 31 December, 2003, the Group has continuously tried to negotiate with the aforesaid customers to collect the outstanding receivables by the ways of extending the credit period for one year more and swapping other services instead of taking legal action. As a result, the Group did not write off the aforesaid debts for the year ended 31 December 2003.

Furthermore, as the securities market were gloomy and depressed during 2002 and 2003, some customers closed down gradually soon after 2003. On the other hand, some of them were acquired or merged by other firms. Under the large-scale movement in the securities brokage market, their management and representatives also changed at the same time. As a result, they could not been found by the Group and it is useless to take legal action against them.

Under the reasons stated above, the Group found that it is difficult to collect such receivables in the future. For prudence sake, the Group finally decided to make such specific provision of these doubtful receivables in the first quarterly report 2004.

In this connection, in order to maintain a better accounts receivable policy and reduce the risk of bad debts from these customers again, the Group received a sizable deposit from 20% to 40% of the contract sum from the customers at the beginning of each project. This policy began from January 2004. Moreover, as the Group will assess the credibility of each customer before the beginning of the project, those customers who had defaulted payment in the past will have to pay further deposit before each phase of the project and the Group will not grant any credit limit to them. The Group would also try to collect the previous unpaid debts from these customers even though these debts were written off in the first quarter report 2004.

By Order of the Board Sing Lee Software (Group) Limited Hung Yung Lai Chairman

The Board comprises of:

Hung Yung Lai (Executive Director) Cui Jian (Executive Director) Xu Shu Yi (Executive Director) Pan Yun He (Independent Non-Executive Director)

Pao Ping Wing (Independent Non-Executive Director)

Hong Kong, 24 May 2004

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This announcement, for which the directors of the Company collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of the Stock Exchange for the purpose of giving information with regard to the Company. The directors of the Company, having made all reasonable enquiries, confirm that, to the best of their knowledge and belief:— 1. the information contained in this announcement is accurate and complete in all material respects and not misleading; 2. there are no other matters the omission of which would make any statement in this announcement misleading; and 3. all opinions expressed in this announcement have been arrived at after due and careful consideration and are founded on bases and assumptions that are fair and reasonable.

This announcement will remain on the “Latest Company Announcements” page on the GEM website for at least 7 days from the date of its publication.

• For identification purpose only

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