CHINASOFT<08216> - Results Announcement (Q2, 2004, Summary)

Chinasoft International Limited announced on 30/07/2004:
(stock code: 08216 )

Year end date :31/12/2004
Currency :RMB
Auditors' report :N/A
2nd Quarterly Report Reviewed by :Audit Committee

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 1/1/2004 from 1/1/2003
to 30/6/2004 to 30/6/2003
RMB'000 RMB'000

Turnover : 116,355 59,080
Profit/(Loss) from Operations : 16,438 9,896
Finance cost : (122) 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 : 12,653 7,915
% Change Over the Last Period : +59.86%
EPS / (LPS)
Basic (in dollar) : RMB 0.0198 RMB 0.0161
Diluted (in dollar) : RMB 0.0196 N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 12,653 7,915
2nd Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 2nd Quarter 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
(bdi: both days inclusive)

For and on behalf of
Chinasoft International Limited

Signature :
Name : Fok Ming Fuk
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. BASIS OF PRESENTATION

The financial statements of the Group have been prepared in
accordance with Statements of Standard Accounting Practice issued
by the Hong Kong Society of Accountants, accounting principles
generally accepted in Hong Kong and the Rules Governing the
Listing of Securities on GEM.

2. TURNOVER

Turnover, which is stated net of valued-added tax and other sales
tax and returns, represents amounts invoiced to customers, except
in respect of provision of solutions services and IT outsourcing
services where turnover represents the value of work done during
the year, including amounts not yet invoiced.

3. TAXATION

Pursuant to an approval document issued by the State Bureau of
Beijing Haidian District dated 21st November 2000, Beijing
Chinasoft FE International Information Technology Limited
("Chinasoft FE"), a major operating subsidiary of the Group,
has been designated as advanced technology enterprise and is
entitled to the three year's exemption from income tax followed
by three years of 50% tax reduction commencing the first-profit
-making year with effect from 2000.

Chinasoft FE is subject to the income tax computed at the rate of
7.5% for the three years ending 31st December 2005 and at the rate
of 15% on its taxable profit thereafter.

No provision for Hong Kong Profits Tax has been made for the
relevant periods as the Group did not have any assessable profit
during the Relevant Periods.

Deferred tax have been provided for the relevant periods
which was mainly related to the temporary differences arising from
development costs.

There were no significant unprovided deferred taxation for the
relevant periods.

4. EARNINGS PER SHARE

The calculation of the basic earnings per share for the
six months ended 30th June 2004 was based on the net
profit of approximately RMB12,653,000 (2003: RMB7,915,000)
divided by the weighted average number of shares issued
during the six months ended 30th June 2004 of 640,000,000
shares (2003: 489,724,000 shares) as if the sub-division
of the Company's shares as described in Appendix VI
of the Prospectus had taken place at the beginning of
the relevant periods.

Diluted earnings per share for the six months ended 30th June 2004
was based on the net profit of approximately RMB12,653,000
divided by the weighted average number
of shares issued adjusted for the effect of dilutive potential
securities issuable under the Company's shares option scheme
during the six months ended 30th June 2004 of 643,769,067 shares.

Diluted earnings per share is not presented for the
six months ended 30th June 2003 as there were no potential dilutive
securities in existence during that period.