Quarterly Results announcement form Name of listed company :Eco-Tek Holdings Limited Stock code :8169 Year end date :31 October 2002 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$'000 (Unaudited) (Unaudited) Quarterly Results Announcement Last Current Corresponding Period Period from 01/11/2001 from 01/11/2000 to 31/01/2002 to 31/01/2001 HK$'000 HK$'000 Turnover : 4,912 8,007 Profit/(Loss) from Operations : 2,039 4,950 Finance cost : 0 0 Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entites : N/A N/A Profit/(Loss) after Taxation & MI : 1,682 4,113 % Change Over the Last Period : -59.11 % EPS / (LPS) - Basic : HK0.33 cent HK0.99 cent - Diluted : HK0.28 cent HK0.81 cent Extraordinary (ETD) Gain/(Loss) : 0 0 Profit (Loss) after ETD Items : 1,682 4,113 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: N/A B/C Dates for Other Distribution : N/A to N/A bdi. (bdi: both days inclusive) For and on behalf of Eco-Tek Holdings Limited Signature : Name : Tsui Siu Chuen Title : Company Secretary 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 AND BASIS OF PRESENTATION Group reorganisation Eco-Tek Holdings Limited (the "Company") was incorporated in the Cayman Islands as an exempted company with limited liability under the Companies Law of the Cayman Islands on 6 December 2000. Pursuant to a group reorganisation (the "Group Reorganisation") to rationalise the structure of the Company and its subsidiaries (collectively referred as the "Group") in preparation for the listing of its shares on The Growth Enterprise Market (the "GEM") of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") on 5 December 2001, the Company became the holding company of the companies now comprising the Group on 21 November 2001. Further details of the Group Reorganisation are set out in the Company's prospectus (the "Prospectus") dated 27 November 2001. Basis of presentation The Group Reorganisation has been accounted for by the Company using the merger accounting method in accordance with the Statement of Standard Accounting Practice ("SSAP") No. 2.127 "Accounting for Group Reconstructions". The unaudited combined results of the Group included the results of all companies now comprising the Group as if the current Group structure had been in existence throughout the periods covered by this report or since their respective dates of incorporation, where this is a shorter period. All significant transactions and balances among the companies comprising the Group have been eliminated on combination. 2. EARNINGS PER SHARE The basic earnings per share for the three months ended 31 January 2002 is calculated based on the unaudited combined net profit attributable to shareholders of the Company for the said period of HK$1,682,000 (2001: HK$4,113,000) and on a weighted average number of approximately 504,730,435 shares issued during the said period (2001: 414,600,000 shares, which were deemed to have been issued on the assumption that the Group Reorganisation and the subsequent capitalisation issue of 414,000,000 shares of the Company had been effective during the three months ended 31 January 2001). The calculation of the diluted earnings per share for the three months ended 31 January 2002 and 31 January 2001 are based on the unaudited combined net profit attributable to shareholders of the Company for the three months ended 31 January 2002 and 31 January 2001 and on approximately 598,787,729 shares (2001: 508,657,294 shares), being the 504,730,435 shares (2001: 414,600,000 shares) as used in the calculation of basic earnings per share, and the weighted average of approximately 94,057,294 shares assumed to have been issued at no consideration on the deemed exercise of the pre-IPO share options and the options granted to Advance New Technology Limited. For the purpose of calculating diluted earnings per share, the fair value of the shares assumed to have been issued upon the deemed exercise of these options was determined as the issue price of HK$0.238 per share in respect of the Company's placement of its shares. The difference between the number of shares issued and the number of shares that would have been issued at fair value is treated as an issue of ordinary shares for no consideration.