Inworld Group Limited<08100> - Yearly Results Announcement Inworld Group Limited announced on 20/09/2002: (stock code: 8100) Year end date :30/06/2002 Currency :HKD Auditors' report :Unqualified Review of Quarterly Report by :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: $'000 (Audited) (Audited) Current Last Corresponding Period Period from 01/07/2001 from 01/07/2000 to 30/06/2002 to 30/06/2001 $'000 $'000 Turnover : 6,746 6,498 Profit/(Loss) from Operations : (4,584) 83 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 : (4,442) 51 % Change Over the Last Period : N/A EPS / (LPS) Basic (in dollar) : (HKD 0.00842) HKD 0.00011 Diluted (in dollar) : (HKD 0.00842) HKD 0.000089 Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : (4,442) 51 Final Dividend per Share : NIL NIL (specify if with other options) : N/A N/A B/C Dates for Final Dividend : N/A to N/A bdi. Payable Date : N/A B/C Dates for Annual General Meeting : 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. Remarks: 1. Group reorganisation The Company was incorporated in the Cayman Islands on 30 July 2001 under the Companies Law (2001 Revision) of the Cayman Islands as an exempted company with limited liability. In preparation for the listing of the shares on the Growth Enterprise (the `GEM') of the Stock Exchange of Hong Kong Limited (the `Stock Exchange'), the companies comprising the Group underwent a reorganisation (the `Reorganisation') to rationalise the corporate structure of the Group. The Company acquired the entire issued capital of Inworld International Limited, the Group's former ultimate parent enterprise through a share swap arrangement and became the ultimate parent enterprise of Inworld International Limited and its subsidiares. Details of the Reorganisation have been set out in the Company's prospectus dated 18 December 2001. The Company's shares were listed on the GEM of the Stock Exchange on 31 December 2001. 2. Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries made to 30 June. The Reorganisation referred to in note 1 above has been accounted for by using the merger accounting. Apart from the Reorganisation, the results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. All significant intercompany transactions and balances between group enterprises are eliminated on consolidation. 3. Taxation No provision for Hong Kong profits tax has been made in the financial statements as the Group and its subsidiaries operating in Hong Kong have no assessable profits for the year. Taxation on overseas profits is charged at the rates of taxation prevailing in the countries in which the companies operate. No provision for overseas taxation has been made in the financial statements as the subsidiaries outside Hong Kong have no assessable profits for the year. 4. (Loss) / earnings per share Loss per share is based on the loss attributable to shareholders of HK$4,442,000 and on the weighted average number of 527,868,493 shares in issue during the year. The calculation of the comparative earnings per share is based on the profit attributable to shareholders of HK$51,000 and the 480,000,000 shares deemed to be in issue throughout the year ended 30 June 2001. Since all share options granted can only be exercised after 30 June 2002, the computation of dilution loss per share is based on the same weighted average number of ordinary shares for the purposes of basic loss per share. The calculation of the comparative diluted earnings per share is based on the profit attributable to shareholders of HK$51,000 and the 576,000,000 shares comprising 480,000,000 shares in issue and 96,000,000 shares to be issued under the placing and public offer deemded to be in issue throughout the year ended 30 June 2001 on the assumption that the Reorganisation of the Group had been completed on 30 August 1999, taking no account of any shares which may be issued under the over-allotment option or upon any exercise of options which had conditionally been approved and adopted by the Company on 14 December 2001 under the share option scheme. 5. Loss for the year A goodwill of HK$ 4,449,000 arising from acquisition of a subsidiary was written off during the year and this is the main reason for the loss for the year.