FINANCIAL REVIEW (FOR THE YEAR ENDED 31 MARCH 2011)

Results
The Group recorded a decrease of approximately 45.2% in its turnover for the year ended 31 March 2011 to approximately HK$23.8 million as compared to approximately HK$43.4 million in the previous year. The decrease in turnover was due to the adverse change in the payment industry in the PRC.

The Group recorded a decrease in gross profit of approximately 56.9% to HK$17.0 million in the current year as compared to approximately HK$39.4 million in the previous year mainly due to the decrease in turnover of the payment gateway services.

Net loss attributable to equity holders of the Company for the year amounted to approximately HK$328.6 million (2010 net profit of approximately: HK$13.8 million). Loss during the year was mainly due to the impairment loss of goodwill and allowance for bad and doubtful debts amounted HK$251.6 million and HK$48.3 million respectively.

Liquidity, financial resources and capital structure
As at 31 March 2011, the Group had total assets of approximately HK$167.5 million (2010: HK$392.7 million), including net cash and bank balances of approximately HK$59.6 million (2010: HK$19.1 million).

For the year ended 31 March 2011, the Group financed its operations mainly with its own working capital and there was no general banking facilities (2010: Nil). There was no charge on the Group's assets as at 31 March 2011 (2010: Nil).

As at 31 March 2011, the gearing ratio (defined as the ratio between total bank borrowings and total assets) was zero (2010: Nil). The Group had no bank borrowings as at 31 March 2011 (2010: Nil).

Segment information
The revenue of the Group comprises the provision of payment gateway services and manufacturing and trading of products related to optimal optical fibers, telecommunications, electric power network systems and equipment.

As to the geographical segments, sale of the Group generated in the PRC market was approximately HK$23.8 million during the year ended 31 March 2011. (2010: HK$43.4 million in the PRC)

Please also refer to note 4 to the consolidated financial statements in this annual report for details of segment information.

FINANCIAL REVIEW (FOR THE PERIOD ENDED 30 JUNE 2011)

For the period ended 30 June 2011, the Group recorded a turnover of approximately HK$8,659,000 (2010: approximately HK$9,624,000) from its telecommunications optic fiber business. There was no income recorded from the payment gateway services.

During the period, the Group's net profit decreased from approximately HK$3,973,000 of previous corresponding period to approximately HK$613,000. Net loss attributable to equity holders of the Company for the period amounted to approximately HK$1,565,000 (2010: net profit of approximately HK$3,973,000). The administrative expenses increased by approximately 91% as compared to the previous corresponding period mainly to the acquisition of the China Optic business in February 2011.

FINANCIAL REVIEW (FOR THE PERIOD ENDED 30 SEPTEMBER 2011)

For the six months ended 30 September 2011, the Group recorded a turnover of approximately HK$12,178,000 from telecommunications optic fiber business. There was no income recorded from the payment gateway services.

During the period, the Group's net loss amounted to approximately HK$2,371,000 (2010: profit of approximately HK$7,015,000). Loss attributable to equity holders of the Company was HK$5,101,000 (2010: profit of approximately HK$7,015,000).