EVOC<08285> - Results Announcement (Q1, 2004, Summary) Shenzhen EVOC Intelligent Techonlogy Company Limited announced on 11/05/2004: (stock code: 08285 ) Year end date :31/12/2003 Currency :RMB Auditors' report :N/A 1st 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) (Audited) Current Last Corresponding Period Period from 01/01/2004 from 01/01/2003 to 31/3/2004 to 31/3/2003 RMB'000 RMB'000 Turnover : 42,267 33,414 Profit/(Loss) from Operations : 8,534 5,181 Finance cost : (335) (1,081) 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 : 7,461 3,560 % Change Over the Last Period : +109.58% EPS / (LPS) Basic (in dollar) : RMB 0.016 RMB 0.01 Diluted (in dollar) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit (Loss) after ETD Items : 7,461 3,560 1st Quarter Dividends per Share : NIL NIL (specify if with other options) : N/A N/A B/C Dates for 1st 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 Shenzhen EVOC Intelligent Techonlogy Company Limited Signature : Name : Tsui Chun Kuen Title : Company Secretary 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. 1. Basis of preparation The unaudited quarterly financial reports has been prepared in accordance with accounting principles generally accepted in Hong Kong and comply with accounting standards issued by the Hong Kong Society of Accountant (collectively "HKGAAP"). They have been prepared under the historical cost convention and in accordance with the disclosure requirements of the Hong Kong Companies Ordinance and the Rules Governing the Listing of Securities on the GEM of the Stock Exchange. 2. Turnover Turnover represents invoiced value of goods sold, net of value-added tax, and after allowances for goods returned and trade discounts. For the three months ended 31 March 2004 2003 RMB'000 RMB'000 Sales of products Board-type EIP 25,423 20,389 Chassis-type EIP 15,449 11,912 Remote data modules 1,395 1,113 ------- ------- Total turnover 42,267 33,414 ======= ======= 3. Dividend The Directors do not recommend the payment of any interim dividend for the three months ended 31st March 2004. 4. Earnings per share The calculation of basic earnings per share for the three months ended 31 March 2004 is based on the unaudited profit attributable to shareholders of approximately RMB7,461,000 (2003: RMB3,560,000) and the weighted average number of 467,100,000 (2003: 350,300,000) ordinary shares in issue during the period. Diluted earnings per share amount for the three months ended 31 March 2003 and 2004 had not been presented as no diluting events existed during the period. 5. Tax The Company is located in the Shenzhen Special Economic Zone and therefore is subject to a corporate income tax rate of 15%. In accordance with the relevant income tax laws and regulations in the PRC, the Company was exempt from corporate income tax for two years commencing from its first year with assessable profits after deducting the tax losses brought forward, and entitled to 50% tax exemption for the next three years (the ¡§Shenzhen Enterprise Preferential Tax Treatment¡¨). The year ended 31 December 2003 was the fifth year since the Company¡¦s first year of operations with assessable profits and accordingly, the Company was entitled to a 50% exemption from corporate income tax for the year ended 31 December 2003. The Company was first appraised as a New and High Technology Enterprise on 14 April, 2000 when it was still operating as Shenzhen EVOC Intelligent Technology Company Limited, the predecessor of the Company. Pursuant to an approval document issued by the Science and Technology Bureau of Shenzhen Municipal dated 28 April 2001, the Company was again appraised as a New and High Technology Enterprise in April 2002 and has been re-assessed as a New and High Technology Enterprise in May 2003. Pursuant to the Regulations to further support the development of New and High Technology (Amended), as a New and High Technology Enterprise, the Company may apply to the Shenzhen Administration of Taxation for a 50% reduction of the income tax rate for a further period of five years after the Shenzhen Enterprises Preferential Tax Treatment expires. The Company has applied for such 50% reduction of the income tax rate in April 2004. No provision for Hong Kong Profit Tax has been made in the financial statements, as the Company has no assessable profit in Hong Kong for the period.