Quarterly Results announcement form Name of listed company :FlexSystem Holdings Limited Stock code :8050 Year end date :31/03/2003 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$'000 (Unaudited) (Unaudited) Quarterly Results Announcement Current Last Corresponding Period Period from 01/04/2002 from 01/04/2001 to 30/06/2002 to 30/06/2001 HK$'000 HK$'000 Turnover : 14,156 16,089 Profit/(Loss) from Operations : -659 3,739 Finance cost : 0 -9 Share of Profit/(Loss) of Associates : -205 0 Share of Profit/(Loss) of Jointly Controlled Entites : -172 -26 Profit/(Loss) after Taxation & MI : -1,099 3,018 % Change Over the Last Period : N/A % EPS / (LPS) - Basic : -0.18 cents 0.50 cents - Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : -1,099 3,018 1st Q Dividend per Share : 0 0 (specify if with other options) : N/A N/A B/C Dates for 1st 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 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. Remark: (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 results of the Group have been prepared on a merger basis as if the current group structure had been in existence throughout the periods under review or since the respective dates of incorporation or establishment of the respective subsidiaries now comprising the Group, whichever is a shorter period. All significant intra-group transactions and balances have been eliminated on combination. (2) Taxation Hong Kong profits tax has been provided for at the rate of 16% (2001: 16%) on the estimated assessable profit for the period. PRC income tax has been calculated on the estimated assessable profit for the period at the rates of taxation prevailing to the enterprises in the PRC. (3) (Loss)/Earnings per share The calculation of the Group's basic (loss)/earnings per share for the three months ended 30th June, 2002 is based on the Group's unaudited consolidated loss attributable to shareholders of HK$1,099,000 (2001: profit of HK$3,018,000) and the weighted average number of 600,000,000 (2001: 600,000,000) ordinary shares in issue during the period. There were no dilutive potential shares in issue during the periods ended 30 June, 2001 and 2002.