Quarterly Results announcement form Name of listed company : Inworld Group Limited Stock code : 8100 Year end date : 30-June-2002 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$'000 (Unaudited) (Unaudited) Quarterly Results Announcement Current Last Corresponding Period Period from 01/07/2001 from 01/07/2000 to 31/12/2001 to 31/12/2000 HK$'000 HK$'000 Turnover : 2,657 3,275 Profit/(Loss) from Operations : 2,586 93 Finance cost : 0 -32 Share of Profit/(Loss) of Associates : 0 0 Share of Profit/(Loss) of Jointly Controlled Entites : 0 0 Profit/(Loss) after Taxation & MI : 2,586 61 % Change Over the Last Period : 4,139.34 % EPS / (LPS) - Basic : 0.54cent 0.013cent - Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 2,586 61 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 Inworld Group Limited Signature : Name : Ngai Kwok Kin, Kevin 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. Remark: 1. Basis of presentation The Company was incorporated in the Cayman Island under the Companies Law as an exempted company with limited liability on 30th July, 2001. Pursuant to a group reorganisation (the `Reorganisation') for the listing of the Company's shares on GEM, the Company became the holding company of the Group on 24th September, 2001. The shares of the Company were listed on GEM on 31st December, 2001. The Reorganisation involved companies under common control, and the Group resulting from the Reorganisation regarded as a continuing group. Accordingly, the Reorganisation has been accounted for on the basis of merger accounting, under which the consolidated financial statements of the Group have been prepared as if the Group for the six months ended 31st December, 2001 and 31st December, 2000 had been in existence throughout the periods covered by this report or since their respective dates of incorporation, where this is a shorter period. All significant transactions and balances between companies now comprising the Group have been eliminated on consolidation. The interim financial statements are prepared in accordance with the requirements as set out in the GEM Listing Rules and the Statement of Standard of Accounting Practice 2.125 `Interim Financial Reporting' as issued by the Hong Kong Society of Accountant except that the company has taken advantage of the transitional provisions set out in the GEM Listing Rules 18.55 Note 4 in relation to comparative cash flow statement for the six months ended 31st December, 2000. The accounting policies and basis for the preparation of the unaudited consolidated interim financial statements of the Group are consistent with those used in the Accountants' Report as set out in the prospectus of the Company dated 18th December, 2001 (the `Prospectus'). 2. Earnings per share The calculation of the Group's basic earnings per share for the six months ended 31st December, 2001 is based on the Group's unaudited consolidated profit attributable to shareholders of approximately HK$2,586,000 (six months ended 31st December, 2000: approximately HK$61,000) respectively for the respective periods and the weighted average number of approximately 480,000,000 shares (six months ended 31st December, 2000: 480,000,000 shares) on the assumption that 480,000,000 shares had been in issue throughout the respectively periods. There were no diluted potential ordinary shares in issue during the six months ended 31st December, 2001 and the corresponding period in 2000. 3. Profit from operation During the six months ended 31st December, 2001, the Group derived a profit of approximately HKD4,460,000 from sale of investment security. 4. Dividends The Directors do not recommend the payment of an interim dividend for the six months ended 31st December, 2001 (2000 - nil), in line with the statement in the Prospectus.