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(Stock Code: 068)
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2007

The board of directors (the “Board”) of EC-Founder (Holdings) Company Limited (the “Company”) is
pleased to announce the unaudited condensed consolidated interim financial results and financial position of
the Company and its subsidiaries (collectively the “Group”) for the six months ended 30 June 2007, together
with the comparative figures for the corresponding period in 2006. The condensed consolidated interim
financial statements have not been audited, but have been reviewed by the Company’s audit committee.
CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months
ended 30 June
2007 2006

(Unaudited) (Unaudited)
Notes HK$’000 HK$’000
REVENUE 2 1,237,417 ,57,94

Cost of sales (1,172,438 ) (,00,979 )

Gross profit 64,979 56,25
Other income 3 2,531 ,284
Selling and distribution costs (27,044 ) (26,694 )
Administrative expenses (28,143 ) (8,302 )
Other expenses, net (1,537 ) (5,28 )
Finance costs 4 (2,018 ) (,075 )
Share of profits and losses of associates 2,529 5,739

PROFIT BEFORE TAX 5 11,297 ,949

Tax 6 (911 ) (978 )

PROFIT FOR THE PERIOD ATTRIBUTABLE
TO EQUITY HOLDERS OF THE PARENT 10,386 0,97

EARNINGS PER SHARE ATTRIBUTABLE
TO ORDINARY EQUITY HOLDERS
OF THE PARENT

– Basic 7 0.94 cents .00 cents

– Diluted 7 0.94 cents N/A

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CONDENSED CONSOLIDATED BALANCE SHEET

30 June 3 December
2007 2006

(Unaudited) (Audited)
Notes HK$’000 HK$’000
NON-CURRENT ASSETS

Property, plant and equipment 7,069 7,640
Goodwill 2,892 2,892
Interests in associates 33,219 30,690

Total non-current assets 43,180 4,222

CURRENT ASSETS

Inventories 130,781 20,929
Trade and bills receivables 8 352,993 276,747
Prepayments, deposits and other receivables 103,824 04,28
Pledged deposits 107,724 88,523
Cash and cash equivalents 180,418 268,40

Total current assets 875,740 858,737

CURRENT LIABILITIES

Trade and bills payables 9 485,322 506,323
Other payables and accruals 89,756 6,98
Interest-bearing bank and other borrowings 89,491 40,004
Tax payable 776 268

Total current liabilities 665,345 662,793

NET CURRENT ASSETS 210,395 95,944
TOTAL ASSETS LESS CURRENT LIABILITIES 253,575 237,66
NON-CURRENT LIABILITIES

Finance lease payables 309 386

Net assets 253,266 236,780

EQUITY

Issued capital 110,056 0,056
Reserves 143,210 26,724

Total equity 253,266 236,780

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Notes:
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES

The unaudited condensed consolidated interim financial statements are prepared in accordance with Hong
Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting”. The accounting policies and basis
of preparation adopted in the preparation of the interim financial statements are the same as those used in the
annual financial statements for the year ended 3 December 2006, except in relation to the following new and
revised Hong Kong Financial Reporting Standards (“HKFRSs”, which also include HKASs and Interpretations)
that affect the Group and are adopted for the first time for the current period’s financial statements:
HKAS Amendment Capital Disclosures
HKFRS 7 Financial Instruments: Disclosures
HK(IFRIC)-Int 7 Applying the Restatement Approach under HKAS 29
FinancialReportinginHyperinflationaryEconomies
HK(IFRIC)-Int 8 Scope of HKFRS 2
HK(IFRIC)-Int 9 Reassessment of Embedded Derivatives
HK(IFRIC)-Int 0 Interim Financial Reporting and Impairment
The adoption of the new and revised HKFRSs has had no material impact on the accounting policies of the
Group and the method of computation in the Group’s condensed consolidated interim financial statements.
2. SEGMENT INFORMATION

The Group’s operating businesses are structured and managed separately according to the nature of their
operations and the products and services they provide. Each of the Group’s business segments represents a
strategic business unit that offers products and services which are subject to risks and returns that are different
from those of the other business segments.
The following table presents revenue and results for the Group’s primary segments for the six months ended
30 June 2007 and 2006.
Distribution of
information products Corporate and others Consolidated
2007 2006 2007 2006 2007 2006

(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
Segment revenue:
Sales to customers 1,237,417 ,57,94 – – 1,237,417 ,57,94

Segment results 12,035 8,788 (2,976 ) (2,50 ) 9,059 6,287

Interest income 1,727 998
Finance costs (2,018 ) (,075 )
Share of profits and losses
of associates 2,529 5,739

Profit before tax 11,297 ,949
Tax (911 ) (978 )

Profit for the period 10,386 0,97

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3. OTHER INCOME

For the six months
ended 30 June
2007 2006

(Unaudited) (Unaudited)
HK$’000 HK$’000
Bank interest income 1,727 998
Government grants 523 65
Others 281 22

2,531 ,284

4. FINANCE COSTS

For the six months
ended 30 June
2007 2006

(Unaudited) (Unaudited)
HK$’000 HK$’000
Interest on bank loans 1,990 ,039
Interest on finance lease 28 36

2,018 ,075

5. PROFIT BEFORE TAX

The Group’s profit before tax is arrived at after charging/(crediting):
For the six months
ended 30 June
2007 2006

(Unaudited) (Unaudited)
HK$’000 HK$’000
Depreciation 1,236 ,022
Impairment of trade receivables 1,537 5,28
Reversal of provision and write-back
of obsolete inventories (25 ) (38 )

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6. TAX

For the six months
ended 30 June
2007 2006

(Unaudited) (Unaudited)
HK$’000 HK$’000
Current – Hong Kong – 8
Current – Elsewhere 911 970

Total tax charge for the period 911 978

No provision for Hong Kong profits tax has been made as the relevant Hong Kong subsidiaries did not generate
any assessable profits arising in Hong Kong during the period. Hong Kong profits tax had been provided at a
rate of 7.5% on the estimated assessable profits arising in Hong Kong during prior period.
The corporate income tax provision in the People’s Republic of China (the “PRC”) in respect of operations
in the PRC is calculated at the applicable tax rates on the estimated assessable profits for the period based on
existing legislation, interpretations and practices in respect thereof.
Beijing Founder Century Information System Co., Ltd. (“PRC Century”), a wholly-owned PRC subsidiary of
the Group, is exempted from PRC corporate income tax for the three fiscal years which commenced in 2002
and ended on 3 December 2004 and, thereafter, is taxed at 50% of its standard tax rate in the fourth to sixth
years, inclusive. At present, the standard tax rate applicable to PRC Century is 5%.
On 6 March 2007, the National People’s Congress approved the PRC Corporate Income Tax Law (the “New
Corporate Income Tax Law”), which will become effective on January 2008. The New Corporate Income
Tax Law introduces a wide range of changes which include, but are not limited to, the unification of the
income tax rate for domestic-invested and foreign-invested enterprises at 25%. Detailed implementation and
administrative requirements relating to the New Corporate Income Tax Law have not yet been announced.
These detailed requirements include regulations concerning the computation of taxable income, as well as
specific preferential tax treatments and their transitional provisions. The Group will further evaluate the impact
of the New Corporate Income Tax Law on its operating results and financial position of future periods as more
detailed requirements are issued.
The share of tax attributable to associates amounting to approximately HK$975,000 (2006: HK$683,000)
is included in “Share of profits and losses of associates” on the face of the condensed consolidated income
statement.

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7. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE
PARENT

The calculation of basic earnings per share amounts is based on the unaudited profit for the period attributable
to ordinary equity holders of the parent of approximately HK$0,386,000 (2006: HK$0,97,000), and the
weighted average number of ,00,562,040 (2006: ,00,562,040) ordinary shares in issue during the period.
The calculation of diluted earnings per share amounts for the six months ended 30 June 2007 is based on
the unaudited profit for the period attributable to ordinary equity holders of the parent of approximately
HK$0,386,000 and ,08,35,580 ordinary shares, which was the weighted average of ,00,562,040 ordinary
shares in issue during the period and the weighted average of 7,753,540 ordinary shares deemed to have been
issued at no consideration on the deemed exercise of all the outstanding share options during the period.
Diluted earnings per share amounts for the six months ended 30 June 2006 have not been disclosed as the
impact of the outstanding share options did not have a dilutive effect.
8. TRADE AND BILLS RECEIVABLES

The Group’s trading terms with its customers are mainly on credit, except for new customers, where payment
in advance is normally required. Trade and bills receivables are settled in accordance with the terms of the
respective contracts. Each customer has a maximum credit limit. The Group seeks to maintain strict control
over its outstanding receivables. Overdue balances are reviewed regularly by senior management. In view
of the aforementioned and the fact that the Group’s trade receivables relate to a large number of diversified
customers, there is no significant concentration of credit risk. Trade receivables are non-interest-bearing.
An aged analysis of the trade and bills receivables, net of provisions, as at the balance sheet date is as
follows:
30 June 3 December
2007 2006

(Unaudited) (Audited)
HK$’000 HK$’000
Within 6 months 335,028 259,939
7-2 months 13,991 9,862
3-24 months 3,974 3,838
Over 24 months – 3,08

352,993 276,747

Included in the Group’s trade and bills receivables are amounts due from subsidiaries and associate of the
substantial shareholders of approximately HK$7,507,000 (2006: HK$4,37,000), which are repayable on
similar credit terms to those offered to the major customers of the Group.

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9. TRADE AND BILLS PAYABLES

An aged analysis of trade and bills payables as at the balance sheet date is as follows:
30 June 3 December
2007 2006

(Unaudited) (Audited)
HK$’000 HK$’000
Within 6 months 482,044 496,067
Over 6 months 3,278 0,256

485,322 506,323

INTERIM DIVIDEND

The Board does not recommend the payment of any interim dividend for the six months ended 30 June
2007 (2006: Nil).
MANAGEMENT DISCUSSION AND ANALYSIS

Overall Performance
The Group achieved satisfactory results for the six months ended 30 June 2007. Turnover has increased
by 6.9% to approximately HK$,237.4 million (Six months ended 30 June 2006: HK$,57.2 million)
and gross profit has increased by 5.6% to HK$65.0 million (Six months ended 30 June 2006: HK$56.2
million). Gross profit ratio has increased to 5.25% compared with 4.86% for the six months ended 30
June 2006.
Despite having recorded a moderate growth in turnover, total administrative expenses and selling and
distribution costs have recorded a 22.6% increase compared with the six months ended 30 June 2006.
The Group’s unaudited consolidated profit attributable to equity holders for the period was HK$0.4
million (Six months ended 30 June 2006: HK$.0 million).
The Group’s unaudited consolidated profit attributable to equity holders for the period was mainly the net
result of:
a. an improvement in segment results of the distribution of information products business by 36.9% to
HK$2.0 million (Six months ended 30 June 2006: HK$8.8 million);
b. an increase in net corporate expenses by 9.0% to HK$3.0 million (Six months ended 30 June 2006:
HK$2.5 million); and

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c. a decrease in the share of profit of an associate by 55.9% to HK$2.5 million (Six months ended 30
June 2006: HK$5.7 million).
Basic earnings per share attributable to equity holders for the period was HK0.94 cents (Six months ended
30 June 2006: HK.00 cents).
Operating Review and Prospects
The Group’s principal operating activity during the period is the distribution of information products
business (“Distribution Business”). The Distribution Business recorded a turnover of HK$,237.4 million
for the period which was 6.9% higher than that for the six months ended 30 June 2006 and segment results
also increased by 36.9% to HK$2.0 million for the current period (Six months ended 30 June 2006:
HK$8.8 million). Gross profit for the Distribution Business has recorded an increase of 5.6% to HK$65.0
million (Six months ended 30 June 2006: HK$56.2 million) while gross profit ratio has improved to 5.25%
comparing to 4.86% for the six months ended 30 June 2006.
The Distribution Business is mainly focused on the distribution of information products such as software,
printers, networking products, servers, storage devices, workstations, notebook computers and screen
projectors of a number of internationally famed and branded information products manufacturers such as
HP, H3C, Apple, Netgear, CommScope, Barco, Epson and Miscrosoft.
The significant improvement in segment results was due to:
a. improvement in gross profit ratio for a wide range of products as a result of the Group’s more
stringent policy in selecting customers;
b. continued effort to control the operating costs for the Distribution Business;
c. development of closer working relationship with the vendors and the introduction of more high
margin products.
In 2007, the Distribution Business was awarded by HP for its excellent sales performance in 2006 in
the PRC. In June 2007, the Distribution Business was ranked the 4th place (2006: 4th) by Computer
Partner World (e ) among the top 50 information products distributors in the PRC’s information
products distribution business for its outstanding profitability, distribution channel efficiency, service level,
credibility and growth potential.
With the continuous improvement in operating efficiency, the segment result to turnover ratio has improved
to .0% for the current interim period from 0.8% for the six months ended 30 June 2006. In light of
the rapidly booming PRC economy, the Group believes that an effective risk control system is required
in order to maintain its profitability and operating efficiency. In light of the business expansion for the
Distribution Business, the strict financial control system has protected the Distribution Business from any
material doubtful trade debts. The amount of impairment of trade receivables for the current interim period
is merely HK$.5 million (Six months ended 30 June 2006: HK$5.2 million). The Group’s trade and bills

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receivable and inventory turnover periods have improved from the six months ended 30 June 2006’s 47.3
days and 22.9 days to the current interim period’s 46.4 days and 9.6 days respectively. The working capital
ratio for the Group stood at .32 as at 30 June 2007 (3 December 2006: .30) while the total liabilities
to equity ratio also decreased to 2.63 as at 30 June 2007 (3 December 2006: 2.80).
The Distribution Business has been able to maintain its growth and outperformed the general business
activities and economic situations in the PRC during the period under review by leveraging on its extensive
distribution channel and long-developed partnership with the major information products manufacturers.
To fuel for future growth, the Distribution Business is dedicated to broaden its products range and improve
its product mix in order to bring in more value to its shareholders. It is expected that the Group will
benefit from the opportunities offered by the thriving PRC economy and strong demand for information
products.
With the Group’s determination to further strengthen its position in the PRC’s information products
distribution business, the Group will continue to look for alliance with other international information
products suppliers and investment opportunities. The Board and the management team are dedicated
towards the aims to reward shareholders with strong financial results and promising outlook.
Financial Review
Liquidity,financialresourcesandcapitalcommitments
At 30 June 2007, the Group recorded total assets of approximately HK$98.9 million (3 December
2006: HK$900.0 million) which were financed by liabilities of approximately HK$665.7 million (3
December 2006: HK$663.2 million) and equity of approximately HK$253.2 million (3 December 2006:
HK$236.8 million). The Group’s net asset value as at 30 June 2007 was approximately HK$253.2 million
(3 December 2006: HK$236.8 million).
The Group had total cash and bank balance of approximately HK$288. million as at 30 June 2007
(3 December 2006: HK$356.9 million). The Group had bank and other borrowings as at 30 June 2007
of HK$89.8 million (3 December 2006: HK$40.4 million), of which approximately HK$89.5 million (3
December 2006: HK$40.0 million) was repayable within one year and approximately HK$0.3 million (3
December 2006: HK$0.4 million) was repayable within two to five years. Hence the Group recorded a
net cash balance of approximately HK$98.3 million as at 30 June 2007 (3 December 2006: HK$36.5
million). As at 30 June 2007, the Group’s current ratio was .32 (3 December 2006: .30).
At 30 June 2007 and 3 December 2006, the Group did not have any material capital expenditure
commitments.
Treasurypolicies
The Group adopts conservative treasury policies and controls tightly over its cash and risk management.
The Group’s cash and cash equivalents are held mainly in Hong Kong dollars, Renminbi and United
States dollars. Surplus cash is generally placed in short-term deposits denominated in Hong Kong dollars,
Renminbi and United States dollars.

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Exposuretofluctuationsinexchangeratesandrelatedhedges
Most of the Group’s payables are denominated in Hong Kong dollars, Renminbi and United States dollars
and the turnover of the Group are mainly denominated in Renminbi and United States dollars. As the
exchange rates of Renminbi and United States dollars against Hong Kong dollars were relatively stable
during the period under review, the Group’s exposure to fluctuations in exchange rates is considered
minimal and no financial instruments have been used for hedging purposes.
Chargesonassets
As at 30 June 2007, bank deposits of approximately HK$07.7 million were pledged to banks to secure
general banking facilities granted.
Contingentliabilities
The Group did not have any significant contingent liabilities as at 30 June 2007 (3 December 2006:
Nil).
Employee and remuneration policies
As at 30 June 2007, the Group had 538 employees (3 December 2006: 526). These employees almost all
work in the Mainland China. The Company has also established share option schemes and share options
are granted at the directors’ discretion to motivate and reward the employees with outstanding performance.
The Company had not granted any share options during the current period.
PURCHASE, REDEMPTION AND SALE OF LISTED SECURITIES OF THE COMPANY

Neither the Company, nor any of its subsidiaries purchased, redeemed or sold any of the Company’s listed
securities during the period.
COMPLIANCE WITH THE CODE ON CORPORATE GOVERNANCE PRACTICES

The Company has complied with all the code provisions of the Code on Corporate Governance Practices
as set out in Appendix 4 to the Rules Governing the Listing of Securities (the “Listing Rules”) on The
Stock Exchange of Hong Kong Limited (the “Stock Exchange”) throughout the six months ended 30 June
2007.
MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers
(the “Model Code”) as set out in Appendix 0 to the Listing Rules. Having made specific enquiry of the
Company’s directors, all the directors confirmed that they have complied with the required standard as set
out in the Model Code throughout the six months ended 30 June 2007.

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AUDIT COMMITTEE

The Company has an audit committee which was established in compliance with Rule 3.2 of the Listing
Rules for the purpose of reviewing and providing supervision over the Group’s financial reporting process
and internal controls. The audit committee comprises the three independent non-executive directors of the
Company. These unaudited condensed consolidated interim financial statements for the six months ended
30 June 2007 of the Group now reported have been reviewed by the audit committee.
DISCLOSURE OF INFORMATION ON WEBSITE OF THE STOCK EXCHANGE

The 2007 interim report of the Company containing all the information required by Appendix 6 of
the Listing Rules will be dispatched to the shareholders of the Company and published on the Stock
Exchange’s website (http://www.hkex.com.hk) and the Company’s website (http://www.irasia.com/listco/
hk/ecfounder/index.htm) in due course.
By Order of the Board
EC-FOUNDER (HOLDINGS) COMPANY LIMITED
Zhang Zhao Dong
Chairman
Hong Kong
2 September 2007
Asatthedateofthisannouncement,theBoardoftheCompanycomprisestheexecutivedirectorsofMr
Zhang Zhao Dong (Chairman), Mr Chen Geng (President), Mr Xia Yang Jun, Mr Xie Ke Hai and Mr
ZhengFuShuang,andtheindependentnon-executivedirectorsofMrLiFatChung,MsWongLamKit
YeeandMsCaoQian.
Foridentificationpurposeonly