Quarterly Results announcement form Name of listed company :DIGITEL GROUP LIMITED Stock code :8030 Year end date :31/12/2002 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 : 3,809 34,146 Profit/(Loss) from Operations : -43,773 -17,655 Finance cost : -4,823 -1,520 Share of Profit/(Loss) of Associates : 0 -478 Share of Profit/(Loss) of Jointly Controlled Entites : N/A N/A Profit/(Loss) after Taxation & MI : -48,596 -18,439 % Change Over the Last Period : N/A % EPS / (LPS) - Basic : -4.584 cents -1.840 cents - Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : -48,596 -18,439 2nd Q Dividend per Share : Nil Nil (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) For and on behalf of DIGITEL GROUP LIMITED Signature : Name : LEE CHUEN BIT 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 The financial statements have been prepared under the historical cost convention as modified by the revaluation of investment property, investment securities and financial asset in accordance with accounting principles generally accepted in Hong Kong and comply with accounting standards issued by the Hong Kong Society of Accountants. The financial statements are unaudited but have been reviewed by the Company's Audit Committee and have been prepared in accordance with Statement of Standard Accounting Practice No.25 "Interim Financial Reporting" issued by the Hong Kong Society of Accountants. The accounting policies and basis of preparation used in the preparation of these interim financial statements are the same as those used in the preparation of the Group's audited financial statements for the year ended 31 December 2001. 2. Turnover The Group's turnover by principal activities is analysed as follows: For the three months For the six months ended 30 June ended 30 June 2002 2001 2002 2001 HK$'000 HK$'000 HK$'000 HK$'000 System integration contracts revenue - 3,598 - 6,706 Customised solution services income 38 47 575 732 Sale of goods at invoiced value, net of returns and discounts 2,669 10,814 2,752 13,714 Web application services income - 677 8 3,998 ISP services income - 3,842 - 7,624 Maintenance services income - - - 859 Consultancy services income - - - 513 Rental income 285 - 474 - _______ _______ _______ _______ 2,992 18,978 3,809 34,146 ======= ======= ====== ======== 3.Taxation For the three months For the six months ended 30 June ended 30 June 2002 2001 2002 2001 HK$'000 HK$'000 HK$'000 HK$'000 Hong Kong profits tax - - - - ======= ======= ======= ======= No provision for Hong Kong profits tax has been made as the Group had no assessable profits during the periods. No provision for overseas taxation has been made as the subsidiaries operating in the PRC had no assessable income for PRC taxation purpose during the periods. 4. Dividend The Directors do not recommend the payment of an interim dividend for ordinary shares for the Interim Period (2001: Nil). 5. Loss per share The calculation of basic loss per share is based on the following data : For the three months For the six months ended 30 June ended 30 June 2002 2001 2002 2001 HK$'000 HK$'000 HK$'000 HK$'000 Net loss for the period 37,525 5,209 48,596 18,439 Number of shares Weighted average number of shares for the purpose of basic loss per share 1,079,192,330 1,004,022,571 1,060,067,809 1,002,002,398 Loss per share Basic (cents) 3.477 0.519 4.584 1.840 ========== ========== ========== ========== Diluted loss per share has not been presented as the effect of any dilution is anti-dilutive.