TECHWAYSON HOLD<02330> - Results AnnouncementTechwayson Holdings Limited announced on 29/09/2005:(stock code: 02330 )Year end date: 30/06/2005Currency: RMBAuditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/07/2004 from 01/07/2003 to 30/06/2005 to 30/06/2004 Note ('000 ) ('000 )Turnover : 187,965 359,172 Profit/(Loss) from Operations : (4,367) 17,828 Finance cost : (7,940) (3,024) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (19,105) 10,921 % Change over Last Period : N/A %EPS/(LPS)-Basic (in dollars) : (0.055) 0.0312 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (19,105) 10,921 Final Dividend : NIL NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : N/A Payable Date : N/AB/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1) Basis of Presentation:The consolidated financial statements have been prepared in accordance with Statements of Standard Accounting Practice issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The consolidated financial statements have been prepared under the historical cost convention.2) Turnover:The Group's turnover represented revenue generated from two main categories: Automation Products, and Project and Technical Services. The Group's revenue is stated after deducting Mainland China value-added tax and city and county maintenance tax. Turnover 2005 2004 RMB'000 RMB'000 Sales of automation products 185,670 354,573Fees for project and technical services 2,295 4,599 -------- -------- 187,965 359,172 ======== ======== 3) Profit before taxationProfit before taxation is stated after changing the following: 2005 2004 RMB'000 RMB'000Staff costsSalaries and allowances (including directors' 8,093 8,988 emoluments)Contributions to defined contribution plan 396 544 -------- ------- 8,489 9,532Less: Amount included in research and (1,037) (807) development expenditures -------- ------- 7,452 8,725Operating lease rentals of premises 1,054 2,357Research and development expenditures 1,794 1,234Advertising and promotion costs 64 190Depreciation of fixed assets 1,365 1,276Amortisation of software development costs 6,600 9,546 --------- ------- 7,965 10,822Less: Amount included in research and (183) (317)development expenditures --------- ------- 7,782 10,505Impairment loss on investment securities 3,700 -Bad debts 557 -Provision for doubtful debts 3,006 -Loss on disposal of fixed assets 378 335 Auditors' remuneration 320 360Impairment loss on software development costs 2,600 -Provision for obsolete and slowmoving inventories 1,210 - --------- -------- 11,771 695 4) (Loss) / Earnings per share:The calculation of basic loss per share for the year ended 30 June 2005 was based on the consolidated loss attributable to shareholders of approximately RMB19,105,000 (2004: earnings of RMB10,921,000) and the weighted averaged number of 350,000,000 shares (2004: 350,000,000 shares) in issue during the year. Diluted earning per share was not presented because there was no dilutive potential ordinary shares in issue during the year ended 30 June 2004 and 2005.5) DividendThe Directors do not recommend the payment of dividend for the year ended 30 June 2005. (2004: Nil).