Yearly Results announcement form Name of listed company : FlexSystem Holdings Limited Stock code : 8050 Year end date : 31/03/2002 Auditors' report : Qualified Modified X Neither 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$'000 (Audited) (Audited) Final Results Announcement Current Last Corresponding Period Period from 01/04/2001 from 01/04/2000 to 31/03/2002 to 31/03/2001 HK$'000 HK$'000 Turnover : 56,198 61,898 Profit/(Loss) from Operations : -14,597 22,227 Finance cost : -17 -10 Share of Profit/(Loss) of Associates : -585 0 Share of Profit/(Loss) of Jointly Controlled Entites : -639 -127 Profit/(Loss) after Taxation & MI : -66,724 20,014 % Change Over the Last Period : N/A % EPS / (LPS) - Basic : -11.12 cents 3.57 cents - Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : -66,724 20,014 Final Dividend per Share : 1.0 cent 1.5 cents (specify if with other options) : N/A N/A B/C Dates for Final Dividend : 22/07/2002 to 24/07/2002 bdi. Payable Date : 25/07/2002 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 FlexSystem Holdings Limited Signature : Name : Gary Leung Title : Executive Director and C.F.O. 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 presentation FlexSystem Holdings Limited (the "Company") was incorporated in the Cayman Islands as an exempted company with limited liability on 8 May, 2000 under the Companies Law (2000 Revised) of the Cayman Islands. In preparation for the listing of the Company's shares on GEM, a group reorganization was effected whereby the Company became the holding company of the Group on 10 July, 2000. The shares of the Company (the "Shares") were listed on GEM on 24 July, 2000. The Reorganisation is accounted for using merger accounting as permitted by the Hong Kong Statement of Standard Accounting Practice ("SSAP") 2.127 "Accounting for group reconstructions". The consolidated accounts of the Group for the year ended 31 March, 2002, including the comparative figures, are prepared as if the Company had been the holding company of the Group from the beginning of the earliest period presented. The accounts have been prepared under the historical cost convention as modified by the revaluation of leasehold property and investment in securities, in accordance with generally accepted accounting principles in Hong Kong and comply with accounting standards issued by the Hong Kong Society of Accountants. (2) Taxation Hong Kong profits tax has been provided for at the rate of 16% (2001: 16%) on the estimated assessable profits for the year. PRC income tax has been calculated on the estimated assessable profits for the year at the rate of taxation prevailing to the enterprises in the PRC. (3) (Loss)/Earnings per share The calculation of the Group's basic (loss)/earnings is based on the Group's audited consolidated loss attributable to shareholders of HK$66,724,000 (2001: profit of HK$20,014,000) and the weighted average numberof 600,000,000 (2001: 561,287,671) ordinary shares in issue during the year. There were no dilutive potential shares in issue during the year ended 31 March, 2002.