Yearly Results announcement form Name of listed company : Fortune Telecom Holdings Limited Stock code : 8040 Year end date : 31/03/2002 Auditors' report : Qualified Modified X Neither 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 Currency: HK$'000 (Audited) (Audited) Final Results Announcement Current Last Corresponding Period Period from 01/04/2001 from 01/04/2000 to 31/03/2002 to 31/03/2001 HK$'000 HK$'000 Turnover : 3,461,182 1,544,856 Profit/(Loss) from Operations : 81,074 33,563 Finance cost : (10,893) (4,721) Share of Profit/(Loss) of Associates : (211) (261) Share of Profit/(Loss) of Jointly Controlled Entites : 0 0 Profit/(Loss) after Taxation & MI : 50,315 17,982 % Change Over the Last Period : 179.81 % EPS / (LPS) - Basic : 16.7 cents 6.0 cents - Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 50,315 17,982 Final Dividend per Share : 5.0 cents 1.0 cent (specify if with other options) : N/A N/A B/C Dates for Final Dividend : 23/08/2002 to 27/08/2002 bdi. Payable Date : 17/09/2002 B/C Dates for AGM/SGM : 23/08/2002 to 27/08/2002 bdi. Other Distribution for Current Period: Nil B/C Dates for Other Distribution : N/A to N/A bdi. (bdi: both days inclusive) For and on behalf of Fortune Telecom Holdings Limited Signature : Name : Lau Siu Ying, Steve Title : Chairman 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. Basis of preparation and accounting policies The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries for the year ended 31st March, 2002. All significant inter-company transactions and balances amongst members of the Group are eliminated on consolidation. The accounting policies and methods of computation used in the preparation of the financial statements are consistent with those used in the annual financial statements for the year ended 31st March 2001 except that in the current year, the Group has adopted for the first time the following new or revised Statements of Standard Accounting Practice ("SSAP"s) issued by the Hong Kong Society of Accountants: Dividends proposed or declared after the balance sheet date In accordance with SSAP 9 (Revised) Events after the Balance Sheet Date, dividends proposed or declared after the balance sheet date are not recognised as a liability at the balance sheet date, but are disclosed in the notes to the financial statements. This change in accounting policy has been applied retrospectively, resulting in a prior period adjustment which increases the accumulated profits as at 1st April, 2000 by HK$15,000,000 and as at 1st April, 2001 by HK$3,021,000. As a result of the revision of SSAP 9 (Revised) Events after the Balance Sheet Date, SSAP 18 Revenue has also been revised. Accordingly, the dividends proposed or declared after balance sheet date by the subsidiaries are not recognised by the Company at the balance sheet date. This change in accounting policy has also been applied retrospectively, resulting in a prior period adjustment which has decreased the accumulated profits of the Company as at 1st April, 2000 by HK$16,000,000 and as at 1st April, 2001 by HK$10,000,000. Goodwill In the current year, the Group has adopted SSAP 30 Business Combinations and has elected not to restate goodwill previously eliminated against reserves. Accordingly, goodwill arising on acquisition prior to 1st April, 2001 is held in reserves and will be charged to the income statement at the time of disposal of the relevant subsidiary or associate, or at such time as the goodwill is determined to be impaired. Goodwill arising on acquisition after 1st April, 2001 is capitalised and amortised over its estimated useful life. 2. Earnings per share The calculation of the basic earnings per share is based on the profit for the year of HK$50,315,000 (2001: HK$17,982,000) and on the weighted average number of 301,410,000 shares (2001: 300,000,000 shares ) in issue during the year.