EVOC<08285> - Results Announcement (Final, 2004, Summary) Shenzhen EVOC Intelligent Technology Company Limited announced on 18/03/2005: (stock code: 08285 ) Year end date :31/12/2004 Currency :RMB Auditors' report :Unqualified 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 (Audited) (Audited) Current Last Corresponding Period Period from 01/01/2004 from 01/01/2003 to 31/12/2004 to 31/12/2003 RMB'000 RMB'000 Turnover : 234,061 202,628 Profit/(Loss) from Operations : 47,674 57,902 Finance cost : (668) (2,502) 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 : 43,504 51,589 % Change Over the Last Period : (15.67)% EPS / (LPS) Basic (in dollar) : RMB 0.093 RMB 0.137 Diluted (in dollar) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit (Loss) after ETD Items : 43,504 51,589 Final Dividends per Share : RMB 0.025 RMB 0.03 (specify if with other options) : N/A N/A B/C Dates for Final Dividends :16/04/2005 to 17/05/2005 bdi. Payable Date : 30/06/2005 B/C Dates for Annual General Meeting :16/04/2005 to 17/05/2005 bdi. 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 Technology Company Limited Signature : Name : Lee Sing Yeung Simon 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. Remarks: 1. Listing Date The Company's shares were listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited (the "GEM") on 10 October 2003. 2. Impact of recently issued Hong Kong Financial Reporting Standards The Hong Kong Institute of Certified Public Accountants has issued a number of new Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards, herein collectively referred to as the new HKFRSs, which are generally effective for accounting periods beginning on or after 1 January 2005. The Company has not early adopted these new HKFRSs in the financial statements for the year ended 31 December 2004. The Company has already commenced an assessment of the impact of these new HKFRSs but is not yet in a position to state whether these new HKFRSs would have a significant impact on its results of operations and financial position. 3. Principal accounting policies and the basis of preparation of the accounts The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (which also include Statements of Standard Accounting Practice and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants, accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance and the Rules Governing the Listing of Securities on the GEM of the Stock Exchange (the "GEM Listing Rules"). They have been prepared under the historical cost convention. 4. Turnover and revenue 2004 2003 Turnover RMB'000 RMB'000 Sales of Products Board-type EIP 119,619 121,803 Chassis-type EIP 107,209 74,338 Remote data modules 7,233 6,487 --------- --------- Total turnover 234,061 202,628 --------- --------- Other revenue Value-added tax (VAT) concession 8,157 7,815 Government subsidies 2,751 3,964 Interest income 2,439 388 Others 1,471 716 --------- --------- Total other revenue 14,818 12,883 --------- --------- Total revenue 248,879 215,511 ========= ========= 5. Tax The Company is located in the Shenzhen Special Economic Zone and is therefore 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 was entitled to a 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. Pursuant to the Regulations to further support the development of New and High Technology (Amended), as a New and High Technology Enterprise, the Company had applied to the Shenzhen Administration of Taxation for a 50% exemption from income tax for a further period of five years after the Shenzhen Enterprises Preferential Tax Treatment expires. On 20 July 2004, the Company had already been approved for such 50% reduction of income tax rate for three more years until 2006. The branches of the Company are located in various cities within the PRC and are subject to a corporate income tax rate of 33% on their assessable profits during the year. 2004 2003 RMB'000 RMB'000 PRC income tax - Current year's provision 3,502 3,811 ========= ========= Note: No provision for Hong Kong profit tax has been made as the Company had no assessable profit derived in Hong Kong. 6. Earning per share The calculation of basic earnings per share is based on the profit attributable to shareholders for the year of approximately RMB43,504,000 (2003:RMB51,589,000) and the 467,100,000 (2003: weighted average number of 377,500,000) ordinary shares in issue during the year. Diluted earnings per share amount for the two years ended 31 December 2003 and 2004 have not been disclosed as no diluting events existed during these years. 7. Dividend The Directors recommend the payment of a final dividend of RMB0.025 per ordinary share in respect of the year to shareholders on the register of members on 17 May 2005. The proposed final dividend for the year is subject to the approval of the Company's shareholders at the forthcoming annual general meeting. This recommendation has been incorporated in the financial statements as an allocation of retained earnings within the capital and reserves section of the balance sheets.