Quarterly Results announcement form Name of listed company : Inworld Group Limited Stock code : 8100 Year end date : 30/6/2002 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$'000 (Unaudited) (Unaudited) Quarterly Results Announcement Current Last Corresponding Period Period from 01/07/2001 from 01/07/2000 to 31/03/2002 to 31/03/2001 HK$'000 HK$'000 Turnover : 3,713 5,248 Profit/(Loss) from Operations : 706 264 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 716 232 % Change Over the Last Period : 208.62 % EPS / (LPS) - Basic : 0.14cent 0.048cent - Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 716 232 3rd Q Dividend per Share : NIL NIL (specify if with other options) : N/A N/A B/C Dates for 3rd 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 unaudited consolidated results of the Group for the nine months and three months ended 31st March 2002 include the results of the Company and all of its subsidiaries for the nine months and three months ended 31st March 2002. The comparative unaudited combined results have been prepared using the merger basis of accounting. Under this basis, the Company has been treated as the holding company of its subsidiaries prior to the date of their acquisition pursuant to the Reorganisation on 24th September 2001. Accordingly, the unaudited combined results of the Group for the nine months and the three months ended 31st March 2001 include the results of the Company and its subsidiaries with effect from 1st July 2000 as if the current Group structure has been in existence throught the nine months ended 31st March 2001. All significant transactions and balances between companies now comprising the Group have been eliminated on consolidation. 2. Earnings/(loss) per share The calculation of the Group's basis earnings/(loss) per share for the nine months and three months ended 31st March 2002 is based on the Group's profits/(loss) attributable to shareholders of approximately HK$716,000 (profit) and HK$1,870,000 (loss) respectively (nine months and three months ended 31st march 2001: approximately HK$232,000 (profit) and HK$171,000 (profit) respectively) and the weighted average number of approximately 512,934,306 and 576,000,000 respectively for the nine months and three months ended 31st March 2002 (nine months and three months ended 31st March 2001: 480,000,000 shares) on the assumption that 480,000,000 shares had been in issue throughout the respective periods. There were no diluted potential ordinary shares in issue during the nine months and three months ended 31st March 2002 and the corresponding periods in 2001. 3. Profit from operation During the nine months ended 31st March 2002, the Group derived a profit of approximately HK$4,460,000 from sale of investment security. 4. Dividends The Directors do not recommend the payment of an interim dividend for the nine months ended 31st March 2002 (2001 - nil), in line with the statement in the Prospectus.