In 1H2002, goodwill amortization rose 198% to HK$3,794,000, mainly due to the amortization of goodwill through the increase in payment for acquisition consideration of DMX Technologies. As a result, the Group recorded a net profit attributable to shareholders of HK$530,000 in 1H2002. As at June 30, 2002, the Group had total cash and bank balances of HK$132,187,000. The Group did not declare an interim dividend.

Mr Ron Chan Tze-ngon, Chairman of TVH, noted: "In summary, we managed to achieve this positive turnaround through a series of cost cutting measures, efficient improvement steps, and a slight improvement in the IT market, after the sharp downturn caused by the Internet bubble burst aggregated by the 911 event."

Sequent China, the Group's mainframe systems-integration arm, has re-positioned from selling products to provisioning of solutions and services, and such efforts are beginning to reflect in improved business performance. With its niche in mainframe related equipment, the division achieved a 100% success rate in clinching maintenance service contracts in this area in 1H2002.

The Group's peripherals systems integrator TopAsia continued to be a profit contributor in 1H2002. It achieved remarkable accomplishments in the development of lucrative ATM maintenance and service operations, and has won much-coveted tenders from Bank of Communications and China Merchants Bank. It also stepped up the provision of value-added systems-integration services by entering into a collaboration with EMC. Through this partnership, TopAsia has won a number of service contracts such as those from Jiangsu Mobile Communications and Jiangxi Mobile Communications.

TopSoft continued to provide enterprise e-business solutions and information enabling services in 1H2002. The strategy was to focus on securing repeated business through both value-added solutions and new product offerings. Through a collaboration with TVH's networking arm DMX Technologies, TopSoft has developed a number of new solutions which were adopted and incorporated in DMX's D-soft offerings.

Advanced Digital Technology (ADT), TVH's 55%-owned banking and finance solutions provider, has won major contracts with the Construction Bank of China in 1H2002. It has also developed and registered 12 new software products during the period. In addition to new software offerings for the banking sector, ADT is also actively cultivating new businesses in the provision of network facilities maintenance services.

DMX Technologies has won upgrade contracts from existing customers in China and Malaysia during 1H2002, and those add-on orders represent a favorable revenue source for the division. Major customers in China include China Telecom, China Customs and CATV in seven provinces. In addition to China, DMX also provides infrastructure systems to a major service provider in Malaysia through strategic alliance with a domestic partner. More orders are expected from Malaysia, and DMX is also actively exploring opportunities in Korea and Thailand.

In June 2002, the Group increased its equity interest in DMX from 51% to 61%. At the end of July 2002, DMX lodged an application to the Singapore Stock Exchange for a public listing on its Main Board.

ChinaCast Technology, in which the Group holds a 19.9% interest, sustained its leadership in the provision of satellite-based distance learning services in China. In tertiary education, ChinaCast has signed up a total of 12 universities, doubling the 2001 level. More than 10,000 students are already enrolled in distance learning courses empowered by ChinaCast's tertiary distance learning platform. The company's new co-operation pact with Sina.com is expected to accelerate continued roll out of IT certification services.

"While encouraged by signs of a more conducive business environment, we remain cautiously optimistic as to the sustainability of such an indicative rebound, and will continue to improve our revenue generating mechanism through closer synergistic integration of all business units, especially ADT and DMX," concluded Mr Chan.

About TVH
Technology Venture Holdings Limited (TVH, SEHK: 61) is an information technology enabler focusing its systems-integration and software competencies on the banking, finance and telecoms sectors. It aspires to be a catalyst to facilitate the development of digital Asia by serving as a value-added bridge of advanced technology from developed economies and e-solutions demands in Asia. Through continued expansion, acquisition and investments, TVH now operates one of the largest banking and finance systems-integration teams in China, and participates in Internet networking and satellite communications operations in Asia. It has four flagship business units, including Sequent China, Topasia, ADT and DMX Technologies.

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