Quarterly Results announcement form Name of listed company :AKuP International Holding Limited Stock code :8179 Year end date :31 December 2002 Auditors' report : Modified Qualified Unqualified X N/A 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$'000 (Unaudited) (Unaudited) Quarterly Results Announcement Current Last Corresponding Period Period from 01/01/2002 from 01/01/2001 to 30/06/2002 to 30/06/2001 HK$'000 HK$'000 Turnover : 13,030 11,469 Profit/(Loss) from Operations : 4,053 -4,520 Finance cost : 2 6 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 : 4,085 -2,425 % Change Over the Last Period : N/A % EPS / (LPS) - Basic : 0.65 cents - 0.47 cents - Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 4,085 -2,425 2nd Q Dividend per Share : 0 0 (specify if with other options) : N/A N/A B/C Dates for 2nd Q Dividend : N/A to N/A bdi. Payable Date : N/A B/C Dates for AGM/SGM : N/A to N/A bdi. Other Distribution for Current Period: Nil B/C Dates for Other Distribution : N/A to N/A bdi. (bdi: both days inclusive) Remarks: 1 Group reorganisation and listing date AKuP International Holding Limited (the "Company") was incorporated in the Cayman Islands on 14 June 2000 as an exempted company with limited liability under the Companies Law (Revised) of the Cayman Islands. The Company became the holding company of the Group on 29 October 2001 through a reorganisation (the "Reorganisation"). The Company's shares were listed on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited on 5 November 2001. 2 Basis of presentation The Company and its subsidiaries (the "Group") resulting from the Reorganisation have been regarded as a continuing group. Accordingly the consolidated results have been prepared on the basis of merger accounting in accordance with the Statement of Standard Accounting Practice ("SSAP") 27 "Accounting for Group Reconstructions". On this basis, the Company was the holding company of the Group for both periods presented, rather than from 29 October 2001. In the circumstances, the results of the Group for the six months ended 30 June 2001 and 2002 include the results of the Company and its subsidiaries with effect from 1 January 2001 or since their respective dates of incorporation whichever is a shorter period. In the opinion of the Directors, the resulting consolidated results give a more meaningful view of the results of the Group as a whole. The financial information presented is unaudited but has been reviewed by the Company's audit committee. This interim results announcement has been prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited, including compliance with SSAP 25 "Interim financial reporting" issued by the Hong Kong Society of Accountants (the "HKSA"). The accounting policies and basis of preparation used in the preparation of the interim results announcement are the same as those used in the 2001 annual accounts, except for the following new or revised SSAPs issued by the HKSA which have been adopted for the first time in the preparation of the interim results announcement and are effective for accounting periods beginning on or after 1 January 2002: SSAP 11 (revised) "Foreign currency translation" SSAP 15 (revised) "Cash flow statements" SSAP 25 (revised) "Interim financial reporting" SSAP 26 (revised) "Segment reporting" SSAP 33 "Discontinuing operations" SSAP 34 "Employee benefits" 3 Revenue Revenue represents income arising from the provision of custom-made solutions and maintenance services and the sale of hardware and software products. Revenue excludes value added or other sales taxes and is after deduction of any trade discounts. 4 Earnings/(loss) per share (a) Basic earnings/(loss) per share The calculation of basic earnings per share for the six months and three months ended 30 June 2002 is based on the profit attributable to shareholders of HK$4,085,000 and HK$2,517,000 respectively divided by 630,000,000 shares in issue during the relevant period. The calculation of basic loss per share for the six months and three months ended 30 June 2001 is based on the loss attributable to shareholders of HK$2,425,000 and HK$2,716,000 respectively divided by 513,000,000 shares after adjusting for the capitalisation issue in 2001 during the respective period. (b) Diluted earnings/(loss) per share Diluted earnings/(loss) per share have not been presented as there were no potential dilutive ordinary shares in issue as at 30 June 2002 and 2001.