30 December 2002

Half Year Financial Statement And Dividend Announcement

Financial statements on combined results of the Group for the first half year of FY2003 ended 30 September 2002.
These figures have not been audited.

-	-	Group			Company
-	-	HK$'000		%	HK$'000		%
-	-
-	-	1st half year FY2003	1st half year FY2002	Increase/ (Decrease)	1st half year FY2003	1st half year FY2002	Increase/ (Decrease)
1.(a)	Turnover	39,213	5,488	615	0	0	0
1.(b)	Cost of sales or classification as followed in the most recent audited annual financial statements	(19,615)	(3,782)	419	0	0	0
1.(c)	Gross profit/loss	19,598	1,706	1,049	0	0	0
1.(d)	Investment income	0	0	0	0	0	0
1.(e)	Other income including interest income	417	39	969	0	0	0
2.(a)	Operating profit before income tax, minority interests, extraordinary items, interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	14,688	(1,333)	NM	0	0	0
2.(b)(i)	Interest on borrowings	(8)	(5)	60	0	0	0
2.(b)(ii)	Depreciation and amortisation	(2,166)	(1,556)	39	0	0	0
2.(b)(iii)	Foreign exchange gain/(loss)	(3)	(58)	(95)	0	0	0
2.(c)	Exceptional items (provide separate disclosure of items)	0	0	0	0	0	0
-	-
-	-	HK$'000		%	HK$'000		%
-	-
-	-	1st half year FY2003	1st half year FY2002	Increase/ (Decrease)	1st half year FY2003	1st half year FY2002	Increase/ (Decrease)
2.(d)	Operating profit before income tax, minority interests and extraordinary items but after interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	12,511	(2,952)	NM	0	0	0
2.(e)	Income derived from associated companies (With separate disclosure of any items included therein which are exceptional because of size & incidence)	0	0	0	0	0	0
2.(f)	Operating profit before income tax	12,511	(2,952)	NM	0	0	0
2.(g)	Less income tax (Indicate basis of computation)	(2,002)	472	NM	0	0	0
2.(g)(i)	Operating profit after tax before deducting minority interests	10,509	(2,480)	NM	0	0	0
2.(g)(ii)	Less minority interests	0	0	0	0	0	0
2.(h)	Operating profit after tax attributable to members of the company	10,509	(2,480)	NM	0	0	0
2.(i)(i)	Extraordinary items (provide separate disclosure of items)	0	0	0	0	0	0
2.(i)(ii)	Less minority interests	0	0	0	0	0	0
2.(i)(iii)	Extraordinary items attributable to members of the company	0	0	0	0	0	0

-	-	Group			Company
-	-	HK$'000		%	HK$'000		%
-	-
-	-	1st half year FY2003	1st half year FY2002	Increase/ (Decrease)	1st half year FY2003	1st half year FY2002	Increase/ (Decrease)
2.(i)(iv)	Transfer to/from Exchange Reserve	0	0	0	0	0	0
2.(i)(v)	Transfer to Capital Reserve	0	0	0	0	0	0
2.(i)(vi)	Transfer to Reserve Fund	0	0	0	0	0	0
2.(j)	Operating profit after tax and extraordinary items attributable to members of the company	10,509	(2,480)	NM	0	0	0

NM: Not Meaningful

Group Figures
-	-	Latest period	Previous corresponding period
3.(a)	Operating profit/(loss) [2(g)(i) above] as a percentage of turnover [1(a) above]	26.80%	(45.19)%
3.(b)	Operating profit [2(h) above] as a percentage of issued capital and reserves at end of the period	23.75%	(142.20)%
3.(c)	Earnings per ordinary share for the period based on 2(h) above after deducting any provision for preference dividends:-
	(i) Based on weighted average number of ordinary shares in issue	3.78 HK cents	(0.89) HK cents
	(ii) On a fully diluted basis (To disclose the basis used in arriving at the weighted average number of shares for the purposes of (c)(i) above and to provide details of any adjustments made for the purpose of (c)(ii) above)	3.02 HK cents	(0.71) HK cents
3.(d)	Net tangible asset backing per ordinary share based on existing issued share capital as at the end of the period reported on	HK$0.0922 per share	HK$0.0015 per share

3.(e) To provide an analysis of expenses based on their function within the group for
the current and previous corresponding period

Analysis of Expenses

	The Group
	HK$'000		Increase/(Decrease)
	1st half year FY2003	1st half year FY2002	%
Distribution Expenses	2,968	1,789	66
Administrative Expenses	2,593	1,353	92
Amortisation of Research and Development Costs	1,935	1,550	25
	7,496	4,692	60

Notes:

The basic earnings per share in item 3(c) (i) above is calculated based on the assumption that 278,026,100
pre-invitation shares of HK$0.07 each of the Company are in issue during both periods.

The fully diluted earnings per share in item 3(c)(ii) above is calculated based on the assumption that 348,126,100
post-invitation shares of HK$0.07 each of the Company are in issue during both periods.

-	-	Group			Company
Item 4 is not applicable to interim results		HK$'000		%	HK$'000		%
-	-
-	-	1st half year FY2003	1st half year FY2002	Increase/ (Decrease)	1st half year FY2003	1st half year FY2002	Increase/ (Decrease)
4.(a)	Sales reported for first half year
4.(b)	Operating profit [2(g)(i) above] reported for first half year
4.(c)	Sales reported for second half year
4.(d)	Operating profit [2(g)(i) above] reported for second half year

5.(a) Amount of any adjustment for under or overprovision of tax in respect of prior years

There was no material under or overprovision of tax in respect of prior years.

5.(b) Amount of any pre-acquisition profits

N/A

5.(c) Amount of profits on any sale of investments and/or properties

Item 5c Table

Sale of investments/properties	$Profit/(Loss)
NIL

5.(d) Any other comments relating to Paragraph 5

None

6. Segmental Results

		The Group
		Turnover		Profit/(Loss) before taxation and interest
		HK$'000		HK$'000
		1st half year FY2003	1st half year FY2002	1st half year FY2003	1st half year FY2002
By geographical location
Hong Kong		2,934	2,046	372	(1,006)
PRC		24,695	1,173	7,893	(510)
Taiwan		657	173	308	(75)
North America		8,833	8	3,023	0
Australia		960	782	413	(485)
Europe		329	298	149	(174)
Others		805	1,008	361	(697)
		39,213	5,488	12,519	(2,947)

By industry segment
NetCorder DIY		986	1,045	288	(308)
Netserver		35,255	4,295	9,891	(2,652)
Unet Client Workstation		2,972	148	2,340	13
		39,213	5,488	12,519	(2,947)

7.(a) Review of the performance of the company and its principal subsidiaries

Our turnover amounted to approximately HK$39.21 million for the first half year of FY2003 ended 30 September 2002, a growth rate of over six times from that of approximately HK$5.49 million in the same period of FY2002. The growth in turnover was mainly due to the improved sales for our products, NetServer and UCW.

The sales of our NetServer product increased by approximately HK$30.96 million or 720.8% to approximately HK$35.26 million for the first half year of FY2003 ended 30 September 2002 from approximately HK$4.30 million for the same period of FY2002. The increase was mainly due to general market acceptance of our products through extensive marketing and promotional activities as well as through successful completion of promising user reference sites. This product is mainly sold in Hong Kong, the PRC and North America.

The sales of our UCW product increased by approximately HK$2.82 million or 1,908.1% to approximately HK$2.97 million for the first half year of FY2003 ended 30 September 2002 from approximately HK$0.14 million for the same period of FY2002. The increase was mainly due to the same reasons as in the case of our NetServer product as they are complementary products to our UCW product. This product is also mainly sold in Hong Kong, the PRC and North America as our NetServer product.

For the first half year of FY2003 ended 30 September 2002, we experienced growth in our sales to all the major regions we sell to. In the Greater China region which consists of Hong Kong, the PRC and Taiwan, we registered a combined growth of approximately HK$24.89 million or 733.9% to HK$28.29 million for the first half year of FY2003 ended 30 September 2002 from approximately HK$3.39 million for the same period of FY2002. The growth was mainly due to the significant increase in the sale of our NetServer and UCW products which were used in general surveillance and security projects.

Sales to North America experienced tremendous growth as we penetrated the North America market only in late year 2001 which has resulted in sales being mainly recorded in the first half year of FY2003 ended 30 September 2002 as compared to the same period of FY2002. Sales to North America were mainly to distributors of our NetServer and UCW products which were used in general surveillance and security projects.

Our cost of sales increased by approximately HK$15.83 million or 418.6% to HK$19.61 million for the first half year of FY2003 ended 30 September 2002 from approximately HK$3.78 million for the same period of FY2002. The rate of increase in our cost of sales was slower than our growth in our turnover for the respectively periods under review mainly due to (i) an increase in sales of higher margin products such as the solution-based NetServer as a result of our aggressive marketing strategies; (ii) economies of scale as we increased our production volume and decreased the average purchase cost of our materials; and (iii) an overall decrease in the market prices of major computer hardware components which accounted for a significant portion of our hardware costs.

Our operating expenses increased by approximately HK$2.80 million or 59.8% to approximately HK$7.49 million for the first half year of FY2003 ended 30 September 2002 from approximately HK$4.69 million for the same period of FY2002.

Our distribution expenses amounted to approximately HK$2.97 million for the first half year of FY2003 ended 30 September 2002, an increase of approximately 65.9% from that of approximately HK$1.79 million for the same period of FY2002. This increase was primarily due to a rapid expansion in our sales force and an increase in our general marketing and promotional activities.

Our administrative expenses amounted to approximately HK$2.59 million for the first half year of FY2003 ended 30 September 2002, an increase of approximately 91.6% from that of approximately HK$1.35 million in the same period of FY2002. This increase was primarily due to an almost 100% increase in the number of our senior executive and administrative staff being employed in order to cope with our aggressive business expansion plan.

Our amortisation of research and development costs amounted to approximately HK$1.94 million for the first half year of FY2003 ended 30 September 2002, an increase of approximately 24.8% from that of approximately HK$1.55 million in the same period of FY2002. This increase in amortisation of research and development costs represented primarily the increase in our deferred product development costs which we incurred and capitalised on new product deveopment projects as a result of our determination in continuously launching technologically advanced new products in order to maintain our competitive edge in the marketplace.

Our gross profit amounted to HK$19.60 million for the first half year of FY2003 ended 30 September 2002, a growth rate of over 10 times from that of approximately HK$1.71 million in the same period of FY2002. Our gross profit margin was approximately 50.0% for the first half year of FY2003 ended 30 September 2002 as compared with that of approximately 31.1% in the same period of FY2002.

For the first half year of FY2003 ended 30 September 2002 we reported an operating profit before taxation of approximately HK$12.51 million against an operating loss before taxation of approximately HK$2.95 million for the same period of FY2002. The main reason for this significant operating profit growth over the respectively periods under review was that our digital businesses were in the kick-off period during the first half year of FY2002 ended 30 September 2001, while our digital businesses had a strong developed customer base during the same period of FY2003. In addition, with the economies of scale for the first half year of FY2003 ended 30 September 2002, our fixed cost per unit of our products also decreased.


7.(b) Where a forecast, or a prospect statement, has been previously disclosed to shareholders,

the issuer must explain any variance between the forecast or prospect statement and the
actual results

None

7.(c) A statement by the Directors of the Company whether any item or event of a material or

unusual nature, which would have affected materially the results of operations of the Group
and Company, has occurred between the date to which the report refers and the date on
which the report is issued. If none, to give a negative statement.

The Company implemented a restructuring exercise (the "Restructuring Exercise") in preparation for the listing of the Company's shares on the SGX-ST.

The following steps were taken in the Restructuring Exercise:

(a) On 15 May 2001, MultiVision Holdings Limited ("MultiVision Holdings") was incorporated in the British Virgin Islands as an intermediate holding company for the companies which would form the Group. MultiVision Holdings was incorporated with an authorised share capital of US$50,000 dividend into 50,000 ordinary shares of US$1.00 each.

On 11 June 2001, MultiVision IP Management Limited was incorporated in Hong Kong to hold the intellectual property rights of the Group. MultiVision IP Management Limited was incorporated as a wholly-owned subsidiary of MultiVision Holdings, with an authorised share capital of HK$10,000 divided into 10,000 ordinary shares of HK$1.00 each.

(b) On 30 September 2001, Compelling Vision Management Limited ("Compelling Vision") subscribed for 3,000 ordinary shares of US$1.00 each in the capital of MultiVision Holdings for a consideration of HK$10 million.

(c) On 15 November 2001, GC&C Holdings Limited ("GC&C") subscribed for 1,500 ordinary shares of US$1.00 each in the capital of MultiVision Holdings for a consideration of HK$10 million.

(d) On 26 November 2001, MultiVision Holdings acquired the entire issued share capital of MultiVision Systems and Network Limited ("MultiVision Systems") from UniVision Holdings Limited for a consideration of HK$4,532,000 based on the net asset value of MultiVision Systems as at 31 March 20021. The consideration was satisfied by the allotment and issue of an aggregate of 5,850 new ordinary shares of US$1.00 each in the capital of MultiVision Holdings, credited as fully paid, at the direction of UniVision Holdings Limited, to Mayne Management Limited ("Mayne") and TriVision Limited ("TriVision").

(e) On 15 October 2002, the Company acquired all the issued and paid-up capital in MultiVision Holdings for a total consideration of HK$19,461,827, based on the audited NTA of MultiVision Holdings, as at 31 March 2002. The consideration was satisfied by the allotment and issue of an aggregate of 19,368,227 new ordinary shares of HK$1.00 each in the capital of the Company credited as fully paid, to Mayne, TriVision, Compelling Vision and GC&C and the crediting as fully paid, at par, of the 93,600 nil-paid ordinary shares of HK$1.00 each in the capital of the Company then held by Compelling Vision.

(f) Pursuant to written resolutions dated 22 October 2002 in lieu of a Special General Meeting , the shareholders of the Company approved, inter alia, the following:-

(i) the consolidation of 7 existing ordinary shares of HK$1.00 each in the authorised and issued share capital of the Company into one ordinary share of HK$7.00; and

(ii) the subdivision of every one ordinary share of HK$7.00 each in the authorized and issued share capital of the Company into 100 ordinary shares of HK$0.07 each.

Subsequently, the Company issued 70,100,000 new ordinary shares of HK$0.07 each at an issue price of S$0.23 each to the public and on 18 December 2002, dealing of the Company's shares commenced on the SGX-ST.


8. A commentary at the date of this announcement of the competitive conditions of the

industry in which the group operates and any known factors or events that may affect
the group in the next reporting period

The competitive environment will be intense as more low end products appear in the market. Our Company will focus on high end enterprise and customised solutions for customers and the continuous products research and development efforts and investment to ensure the roll out of technologically advanced new products in order to maintain our competitve edge in the marketplace.

Based on current business trends, the second half year operating results of the Group are likely to improve over the first half year of FY2003. And for FY2003 full year operating results, the Group will perform better than the same full year period of FY2002.


9. Dividend

(a) Any dividend declared for the present financial period? -		None	-
(b) Any dividend declared for the previous corresponding period?		None
(c) Total Annual Dividend
-
-	Latest Year ()	Previous Year ()
Ordinary	0	0
Preference	0	0
Total:	0	0

(d) Date payable

N/A

(e) Books closure date

N/A

(f) Any other comments relating to Paragraph 9

N/A

10.(a) Balance sheet

				The Group HK$'000		The Company HK$'000
				As at 30.09.02	As at 31.3.02	As at 30.09.02	As at 31.3.02
Non-current assets
Fixed Assets				1,118	1,045	-	-
Intangible Assets				18,630	14,296	-	-
Deferred tax assets				-	80
				19,748	15,421	0	0
Current Assets
Inventories				2,376	3,603	-	-
Trade Receivables				13,957	13,656	-	-
Prepayment, deposits and other receivables				2,025	1,205	-	-
Cash and cash equivalents				12,482	10,908	-	-
				30,840	29,372	0	0
Less:
Current liabilities
Obligations under hire purchase contract				133	133	-	-
Trade and other payables				4,191	10,760	-	-
				4,324	10,893	-	-
Net current assets				26,516	18,479	-	-
Total assets less current liabilities				46,264	33,900	0	0
Less:
Non-current liabilities
Obligations under hire purchase contract				89	156	-	-
Deferred tax liabilities				1,922	-	-	-
				2,011	156	-	-
Net assets				44,253	33,744	0	0
Capital and reserves
Paid-in capital				28,672	28,672	-	-
Retained profits				15,581	5,072	-	-
				44,253	33,744	0	0

10.(b) Cash flow statement

						1st half year FY2003	1st half year FY2002
						HK$'000	HK$'000
Cash flow from operating activities Operating activities
Profit/(Loss) from ordinary activities before taxation						12,511	(2,952)
Interest expense						8	5
Interest income						(4)	(39)
Depreciation of fixed assets						231	11
Amortisation of intangible assets						1,935	1,545
Gain on disposal of fixed assets						(5)	-
Decrease/(increase) in inventories						1,227	(599)
Decrease/(increase) in trade receivables						(301)	(643)
Increase in prepayments, deposits and other receivables						(820)	(683)
(Decrease)/increase in trade and other payables						(6,569)	7,346
Cash generated from operations						8,213	3,991
Interest received						4	39
Interest paid						(8)	(5)
Net cash inflow from operating activities						8,209	4,025
Investing activities
Additions of fixed assets						(316)	(612)
Additions of development costs						(6,269)	(683)
Proceeds from disposal of fixed assets						17	-
Net cash outflow from investing activities						(6,568)	(1,295)
Financing activities
Repayment of principal under hire purchase contract						(67)	-
Net cash outflow from financing activities						(67)	-
Net increase in cash and cash equivalents						1,574	2,730
Cash and cash equivalents at beginning of the period						10,908	(2,414)
Cash and cash equivalents at end of the period						12,482	316

10.(c) Statement of changes in equity

The paid-in capital at 30 September 2002 of HK$28,672,000 represented mainly the capital of Multivision Systems and Networks Limited, the principal opening subsidiary of the Company. Please also refer to the Restructuring Exercise undertaken by the Group mentioned in Paragraph 7(c).

10.(d) Explanatory notes that are material to an understanding of the information provided in

10.(a), (b) and (c) above

Our intangible assets amounted to HK$18.63 million at 30 September 2002, an increase of HK$4.33 million from HK$14.30 million at 31 March 2002. Such increase reflected primarily the additional amount spent by the Group in financing its new product development projects during the first half year of FY2003.

Our inventories amounted to HK$2.38 million at 30 September 2002 as compared to HK$3.60 million at 31 March 2002 while the average turnover days of our inventories was 28 days at 30 September 2002 as compared to 73 days at 31 March 2002. The improvement achieved in both figures were partly due to our success in maintianing a relatively stable and accurate order forecasting mechanism with our major distributors through experience and long term cooperation, and partly due to our ability to work with our PRC manufacturing partner in stabilizing a relatively reliable manufacturing leadtime, both of which allowed us to keep the minimum level of inventories in terms of both finished products as well as major parts and components. We will continue our effort to maintain such relatively low level of inventories and its averaged turnover days.

Our trade receivables amounted to HK$13.96 million at 30 September 2002 as compared to HK$13.66 million at 31 March 2002 while the average turnover days of our trade receivables was 64 days at 30 September 2002 as compared to 130 days at 31 March 2002. Due to the success of our sales and collection efforts, our trade receivables recorded in the first half year of FY2003 increased in a much lesser extent than our turnover did as contrast with the same period of FY2002. We have been closely and carefully monitoring the settlement status of our major accounts and we have not encountered any material irrecoverable debts during the first half year of FY2003 ended 30 September 2002.

Our trade and other payables amounted to HK$4.19 million at 30 September 2002, a decrease of HK$6.57 million from HK$10.76 million at 31 March 2002. Such decrease was partly due to the fact that there were relatively more purchase liabilities not yet settled at 31 march 2002 and partly due to the reason that the Group sought shorter credit term from suppliers in exchange for lower purchase costs as the Group's liquidity position could well justify.

The Group's deferred tax liabilities amounted to HK$1.92 million at 30 Septmeber2002 as compared to deferred tax assets of HK$0.08 million at 31 March 2002. The deferred tax liabilities were primarily related to temporary differences of deferred product research and development costs arising under Hong Kong taxation.

Our operating activities recorded net cash inflow of HK$8.21 million for the first half year of FY2003 ended 30 September 2002, an increase of HK$4.18 million from HK$4.03 million for the same period of FY2002. This increase was lesser than the increase in our profit after tax of HK$12.99 million for the same first half year of FY2003 as there was an operating cash outflow for settlement of trade and other payables of HK$6.57 million during this period while there was an operating cash inflow from trade and other payables of HK$7.35 million in the same period of FY2002.

Our investing activities recorded net cash outflow of HK$6.57 million for the first half year of FY2003 ended 30 September 2002 as compared to HK$1.30 million for the same period of FY2002, primarily due to payment of product research and development costs as well as acquisition of fixed assets.

Our financing activities recorded cash outflow of HK$0.07 million for the first half year of FY2003 ended 30 September 2002, primarily due to the repayment of hire purchase obligations.

Overall, we recorded an increase in cash and cash equivalents of HK$1.57 million for the first half year of FY2003 ended 30 September 2002.


11. Details of any changes in the company's issued share capital

Please refer to the Restructuring Exercise undertaken by the Group mentioned in Paragraph 7(c).

12. The group's borrowings and debt securities as at the end of the financial period reported

on, and comparative figures as at the end of the most recently announced financial
statements





(a) Amount repayable in one year or less, or on demand
As at		As at
Secured	Unsecured	Secured	Unsecured
0	0	0	0

 

(b) Amount repayable after one year
As at		As at
Secured	Unsecured	Secured	Unsecured
0	0	0	0

(c) Any other comments relating to Paragraph 12

None

NOTE:

The Group's borrowings at 30 September 2002 were as follows:





			As at 30.09.02	As at 31.3.02
			HK$'000	HK$'000
Obligations under hire purchase contract
- amount repayable in one year			133	133
- amount repayable after one year			89	156
			222	289

The Group did not have any debt securities outstanding as at 30 September 2002 (31 March 2002: none).

13. A statement that the same accounting polices and methods of computation are followed

in the financial statements as compared with the most recent audited annual financial
statements. Where there have been any changes or departure from the accounting policies
and methods of computation, including those required by an accounting standard, this
should be disclosed together with the reasons for the change and the effect of the change

The Group has adopted the same accounting policies and methods of computation in the financial statements for the current reporting period compared with the audited financial

BY ORDER OF THE BOARD

Louis Mak
Executive Director
30 December 2002

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