EVOC<08285> - Results Announcement (Final, 2005, Summary) Shenzhen EVOC Intelligent Technology Company Limited announced on 21/03/2006: (stock code: 08285 ) Year end date :31/12/2005 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 01/01/2005 from 01/01/2004 to 31/12/2005 to 31/12/2004 RMB'000 RMB'000 Turnover : 233,445 234,061 Profit/(Loss) from Operations : 48,661 47,674 Finance cost : (138) (668) 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 : 45,126 43,504 % Change Over the Last Period : +3.73% EPS / (LPS) Basic (in dollar) : RMB 0.097 RMB 0.093 Diluted (in dollar) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit (Loss) after ETD Items : 45,126 43,504 Final Dividends per Share : NIL RMB 0.025 (specify if with other options) : N/A N/A B/C Dates for Final Dividends : N/A Payable Date : N/A B/C Dates for Annual General Meeting : To be announced Other Distribution for Current Period : Convert part of the share premium into share capital by issuing new shares on the basis of 12 new shares for every 10 existing ordinary shares . B/C Dates for Other Distribution : To be announced 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.Basis of preparation These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") (which also include Hong Kong Accounting Standards ("HKASs") 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. They have been prepared under the historical cost convention. These financial statements are presented in Renminbi ("RMB") and all values are rounded to the nearest thousand except when otherwise indicated. The consolidated financial statements include the financial statements of the Company and its subsidiary for the year ended 31 December 2005. The results of the subsidiary are consolidated from the date of its establishment, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. All significant intercompany transactions and balances within the Group are eliminated on consolidation. Minority interests represent the interests of outside shareholders in the results and net assets of the Company's subsidiary. 3. Impact of recently issued Hong Kong Financial Reporting Standards In the current year, the Group has applied, for the first time, a number of new and revised Hong Kong Financial Reporting Standards ("HKFRSs"), (which also include Hong Kong Accounting Standards ("HKASs") and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants. The adoption of those new and revised HKFRSs has had no material impact on the accounting policies of the Group and the Company and the methods of computation in the Group's and the Company's financial statements. 4. Turnover 2005 2004 Revenue RMB'000 RMB'000 Sales of Products Board-type EIP 117,739 119,619 Chassis-type EIP 108,898 107,209 Remote data modules 6,808 7,233 ---------- --------- Total revenue 233,445 234,061 ---------- --------- Other income Value-added tax ("VAT") concession 6,973 8,157 Government subsidies 2,118 2,751 Bank interest income 3,538 2,439 Others 2,211 1,471 --------- --------- 14,840 14,818 --------- --------- 248,285 248,879 ========= ========= 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. As a new and high technology enterprise, the Company had applied to the Shenzhen Administration of Taxation in 2004 for a 50% exemption from income tax for a further period of five years and obtained the approval in 2004 for a 50% exemption from income tax for three more years until the year ending 31 December 2006. Accordingly, the Company was entitled to a 50% exemption from corporate income tax for the years ended 31 December 2004 and 2005. The branches of the Company are located in various cities of Mainland China and are subject to a corporate income tax rate of 33% on their assessable profits for the year. The subsidiary of the Group is located in the Shenzhen Special Economic Zone and is therefore subject to a corporate income tax rate of 15%. No provision for corporate income tax has been made as its subsidiary did not have any assessable profit for the year. 2005 2004 RMB'000 RMB'000 Group: PRC income tax - current year's provision 3,397 3,502 --------- --------- Total tax charge for the year 3,397 3,502 ========= ========= 6. Earnings per share attributable to ordinary equity holders of the parent The calculation of basic earnings per share amounts is based on the net profit attributable to ordinary equity holders of the parent for the year of RMB45,126,000 (2004: RMB43,504,000) and the 467,100,000 (2004: 467,100,000) ordinary shares in issue during the year. Diluted earnings per share amounts for the two years ended 31 December 2004 and 2005 have not been disclosed as no diluting events existed during these years. 7. Dividend The Directors do not recommend the payment of final dividend for the year. 8. Conversion of share premium into share capital The Directors proposed to convert part of the share premium in the amount of RMB56,052,000 in the reserves of the Company into 560,520,000 ordinary shares of RMB0.10 each in the share capital of the Company and to issue these new shares to its shareholders on the basis of 12 new shares for every 10 existing ordinary shares. The above proposal is subject to the approval of the shareholders at the forthcoming annual general meeting.