09:12 VC HOLDINGS<08101> - Quarterly Results Announcement (2) The HKICPA has issued a number of new Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards ("new HKFRSs") which are effective for accounting periods beginning on or after 1st January 2005. The Group has early adopted the Hong Kong Financial Reporting Standard No.3 "Business Combination" ("HKFRS 3"), Hong Kong Accounting Standard No. 36 "Impairment of Assets" ("HKAS 36") and Hong Hong Accounting Standard No. 38 "Intangible Assets" ("HKAS 38") in the accounts for the year ended 31st December 2004. Following the early adoption of HKFRS 3 determined in the third quarter of 2004, certain figures previously reported in the first quarter of 2004 have been restated to conform to the change. The early adoption of HKAS 36 and HKAS 38 have no material impact to the accounts of the Group. From 1st January 2005, the Group has adopted all applicable new HKFRSs. The adoption of the new HKFRSs have no material impact to the acocunts of the Group. 2. Turnover Turnover principally arises from the (i) investment banking and financial services business (comprising, among others, provision of initial public offerings, mergers, acquisitions and other corporate finance related advisory services; and securities, futures and options broking and dealing); and (ii) technology business (comprising sales of technology solution systems and provision of related services to customers in Asia). The technology business has been disposed of on 31st May 2004 to its ultimate holding company and therefore the turnover for the three months ended 31st March 2005 reflects turnover for the investment banking and financial services buisness only. Three months ended 31st March 2005 2004 HK$'000 HK$'000 Investment banking & financial services 26,239 41,140 Sales of technology solution systems and related services - 14,605 ________ ________ 26,239 55,745 ________ ________ 3. Taxation No provision for Hong Kong or overseas profits tax has been made in the accounts as the assessable profits of individual company within the Group for the three months ended 31st March 2005 were offset by the previously unrecognised tax losses (three months ended 31st March 2004: nil). Deferred income tax assets are recognised for tax losses carry forwards to the extent that realisation of the related tax benefit through the future taxable profits is probable. The Group has estimated unrecognised tax losses of HK$168,254,000 as at 31st March 2005 (31st March 2004: HK$251,453,000) to carry forward against future taxable income. These estimated tax losses have no expiry date but subject to the approval of the Hong Kong Inland Revenue Department. 4. Earnings per share The calculation of the basic earnings per share is based on the Group's unaudited profit attributable to shareholders of approximately HK$1,378,000 for the three months ended 31st March 2005 (three months ended 31st March 2004: a profit of approximately HK$9,020,000, restated) and the weighted average number of 238,154,999 ordinary shares (31st March 2004: 238,154,999 ordinary shares) in issue during the period. The calculation of the diluted earnings per share is based on the Group's unaudited profit attributable to shareholders of approximately HK$1,378,000 for the three months ended 31st March 2005 (three months ended 31st March 2004: a profit of approximately HK$9,020,000, restated) and the weighted average number of 239,844,244 ordinary shares (31st March 2004: 238,213,412 ordinary shares) in issue during the period. 5. Dividends No dividends have been paid or declared by the Company during the three months ended 31st March 2005 (three months ended 31st March 2004: nil).