CHINASOFT<08216> - Results Announcement (Q1, 2006, Summary)

Chinasoft International Limited announced on 15/5/2006:
(stock code: 08216 )

Year end date :31/12/2006
Currency :RMB
Auditors' report :N/A
1st 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 1/1/2006 from 1/1/2005
to 31/3/2006 to 31/3/2005
RMB'000 RMB'000

Turnover : 63,068 89,075
Profit/(Loss) from Operations : 12,141 8,362
Finance cost : (1) 117
Share of Profit/(Loss) of Associates : 314 365
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : 10,392 8,045
% Change Over the Last Period : +29.17%
EPS / (LPS)
Basic (in dollar) : RMB 0.014 RMB 0.012
Diluted (in dollar) : RMB 0.013 RMB 0.011
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 10,392 8,045
1st Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 1st 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 Hong Kong Financial Reporting Standards (which
also include statements of Standard Accounting Practice and
Interpretations)issued by the Hong Kong Institute of Certified
Public Accountants, accounting principles generally accepted
in Hong Kong, the disclosure requirements of the Hong Kong
Companies Ordinance (Chapter 32 of the Laws of Hong Kong) and
the Rules Governing the Listing of Securities on GEM (the
"GEM Listing Rules"). They have been prepared under the
historical cost convention.

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 Tax Bureau of
Beijing Haidian District dated 21 November 2000, Beijing
Chinasoft International Information Tech. Ltd. ("Beijing
Chinasoft"), a wholly-owned operating subsidiary of the Group,
has been designated as an advanced technology enterprise and
is entitled to the three years of exemption from income tax
followed by three years of 50% tax reduction commencing from
the first-profit-making year with effect from 2000. As a
result, Beijing Chinasoft is subject to the income tax
computed at the rate of 7.5% for the three years ending
31 December, 2005 and at the rate of 15% on its taxable
profit thereafter.

Pursuant to an approval document issued by the Guangzhou Science
and Technology Bureau dated 31 March 2004,¡@("Chinasoft
Guangzhou"),a subsidiary of the Group, had been designated
¡@ as an advanced technology enterprise and its income tax rate
was reduced from 33% to 15%. Moreover, pursuant to another
approval document issued by the Guangzhou National Tax Bureau
dated 2 June, 2004, Chinasoft Guangzhou was entitled to the
two year's exemption from income tax followed by three years
of 50% tax reduction commencing from the first profit-making
year with effect from 2003.

Pursuant to an approval document issued by the Beijing Sciene
and Technology Commission dated 25 June 2004,("Chinasoft
Resources Beijing") a subsidiary of the Company, had been
designated as an advanced technology enterprise and its income
tax rate was reduced from 33% to 15%. Moreover, Chinasoft
Resources Beijing was entitled to the three years' exemption
from income tax followed by three years of 50% tax reduction
commencing from the first profit-making year with effect from
2004.

Pursant to an approval document issued by the State Bureau of
Shenzhen Nanshan District dated 1 March 2005, ("Chinasoft Resources
Shenzhen"), a subsidiary of the Company, had been designated as
a newly established software enterprise. As a result, Chinasoft
Resources Shenzhen was entitled to the two year's exemption from
income tax followed by three years of 50% tax reduction commencing
from the first profit-making year with effect from 2004.

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

There were no significant unprovided deferred taxation during the
relevant periods and as at the respective balance sheet dates.

4. DIVIDEND

The directors do not recommend the payment of an interim dividend
for the three months ended 31 March, 2006 (2005: Nil).

5. EARNINGS PER SHARE

The calculation of the basic earnings per share for the three
months ended 31 March, 2006 was based on the net profit of
attributable to shareholders of the Company (the "Shareholders")
of approximately RMB10,392,000 during the three months ended
31 March,2006 (2005:RMB8,045,000) dividend by the weighted
average number of ordinary shares then issued of 732,372,453
shares)(2005:697,500,000 shares)during the three months ended
31 March, 2006.

The calculation of diluted earnings per share for the three
months ended 31 March, 2006 was based on the net profit of
RMB10,392,000 for the three months ended 31 March, 2006
(2005:RMB8,405,000) divided by the weighted average number
of shares used in calculation of diluted earnings per share
for the three months ended 31st March, 2006 of 795,182,453
(2005:761,240,000).