08:57 SINO-I TECH<00250> - Results Announcement (1) Sino-i Technology Limited announced on 25/04/2005: (stock code: 00250 ) Year end date: 31/12/2004 Currency: HKD Auditors' Report: Modified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2004 from 01/04/2003 to 31/12/2004 to 31/12/2003 Note ('000 ) ('000 ) Turnover : 681,389 404,199 Profit/(Loss) from Operations : 111,825 109,786 Finance cost : (13,269) (35,192) Share of Profit/(Loss) of Associates : 1,745 (124) Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 82,579 80,971 % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) b : 0.0042 0.0053 -Diluted (in dollars) c : 0.0042 0.0045 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 82,579 80,971 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 : 06/06/2005 to 10/06/2005 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: Note a: The auditors of the Company have modified their report on the Group's accounts for the year ended 31 December 2004 and their report has included the following paragraph regarding the adoption of the going concern basis for the preparation of the accounts: "Fundamental uncertainty relating to the going concern basis of the financial statements" In forming our opinion, we have considered the adequacy of the disclosures made in the financial statements concerning the adoption of the going concern basis for the preparation of the financial statements. As set out in note 2 to the financial statements, the financial statements have been prepared on a going concern basis, the validity of which depends upon the successful outcome of the discussion with the Group's bankers for the granting of new credit facilities, and the assumption that the Group will generate positive cash flows from its property development business. The financial statements do not include any adjustments that would result from a failure of the Group to operate as a going concern. Had the going concern basis not been used, adjustments would have to be made to reduce the value of the Group's assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify non- current assets and non-current liabilities as current assets and current liabilities respectively. We consider that appropriate disclosures relating to this fundamental uncertainty have been made and our opinion is not qualified in this respect. Note b: The calculation of basic earnings per share is based on the profit attributable to shareholders of HK$82,579,000 (period ended 31 December 2003: HK$80,971,000) and on the weighted average of 19,634,723,456 (period ended 31 December 2003: 15,296,323,059) ordinary shares in issue during the year/period. Note c: The calculation of diluted earnings per share is based on the adjusted net profit attributable to shareholders for the year of HK$82,779,000 (period ended 31 December 2003: HK$81,122,000) and the weighted average of 19,917 ,363,766 (period ended 31 December 2003: 17,921,804,147) ordinary shares outstanding during the year/period, adjusted for the effects of all dilutive potential shares. The adjusted net profit attributable to shareholders is calculated based on the net profit attributable to shareholders for the year of HK$82,579, 000 (period ended 31 December 2003: HK$80,971,000) plus the dilution in the results of interests payable of HK$200,000 (period ended 31 December 2003: HK$151,000) on the convertibles notes.