THINSOFT<08096> - Results Announcement (Q1, 2003, Summary) ThinSoft (Holdings) Inc announced on 14/05/2003: (stock code: 08096) Year end date :31/12/2003 Currency :HKD Auditors' report :N/A Review of 1st Quarterly Report by :Audit Committee & Auditors 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 (Unaudited) (Unaudited) Current Last Corresponding Period Period from 01/01/2003 from 01/01/2002 to 31/03/2003 to 31/03/2002 $'000 $'000 Turnover : 3,112 6,488 Profit/(Loss) from Operations : (4,479) 992 Finance cost : 0 0 Share of Profit/(Loss) of Associates : 0 0 Share of Profit/(Loss) of Jointly Controlled Entites : 0 0 Profit/(Loss) after Taxation & MI : (4,479) 992 % Change Over the Last Period : N/A EPS / (LPS) Basic (in dollar) : (HKD 0.0089) HKD 0.0016 Diluted (in dollar) : N/A HKD 0.0014 Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : (4,479) 992 1st Quarterly Dividends per Share : NIL NIL (specify if with other options) : N/A N/A B/C Dates for 1st Quarterly Dividends : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : NIL B/C Dates for Other Distribution : N/A For and on behalf of ThinSoft (Holdings) Inc Signature : Name : Ngiam Mia Hai Bernard Title : Executive Director 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 PREPARATION These financial statements have been prepared in accordance with Hong Kong Statements of Standard Accounting Practice, accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention. The consolidated financial statements have been prepared using the merger basis of accounting. 2. TURNOVER Turnover represents the net invoiced sales and services rendered, less discounts, returns, and applicable goods and services taxes. 3. TAX Hong Kong profits tax has not been provided as the Group did not generate any assessable profits in Hong Kong during the period (2002: Nil). ThinSoft Pte Ltd, a company incorporated in Singapore, is subject to Singapore income tax. Singapore income tax has been provided at the rate of 22% (2002: 22%) on the estimated assessable profits arising in Singapore for the period ended 31 March 2003. ThinSoft (USA) Inc, a company incorporated in the State of Delaware in the United States of America and operating in the State of California in the United States of America, is subject to the United States federal income tax at progressive rates ranging from 15% to 39%, and California state corporate tax at a rate of 8.84% (2002: 8.84%) for the period ended 31 March 2003, on its estimated assessable profits arising on a world wide basis. There was no unprovided deferred tax in respect of the period (2002: Nil). 4. (LOSS)/EARNINGS PER SHARE The loss per share for the three months ended 31 March 2003 is calculated based on the unaudited loss from ordinary activities attributable to shareholders for the three months ended 31 March 2003 of approximately HK$4,479,000 and the weighted average of 500,800,000 shares in issue during the period. No diluted loss per share for the three months ended 31 March 2003 is presented because the share options outstanding had an anti-dilutive effect on the basic loss per share for the period. The calculation of the diluted earnings per share for the three months ended 31 March 2002 is based on the unaudited combined net profit attributable to shareholders of the Company for the three months ended 31 March 2002 and 468,620,271 shares, being 423,611,111 shares as used in the calculation of basic earnings per share, and the weighted average of 45,009,160 shares assumed to have been issued at no consideration on the deemed exercise of the pre-IPO share options. 5. DIVIDENDS The directors do not recommend the payment of any dividend for the three months ended 31 March 2003 (2002: Nil).