H A N T E C I N V E S T M E N T H O L D I N G S L I M I T E D

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HANTEC INVESTMENT HOLDINGS LIMITED
亨達國際控股有限公司亨達國際控股有限公司亨達國際控股有限公司亨達國際控股有限公司
(Incorporated in Bermuda with limited liability)
(stock code: 111)

INTERIM RESULTS 2007

The Board of Directors (the “Board”) of Hantec Investment Holdings Limited (the “Company”)
and its subsidiaries (collectively, the “Group”) are pleased to announce the unaudited consolidated
result of the Group for the six months ended 30th June 2007 as follow:

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 30th June 2007
Unaudited
Six months ended 30th June
2007 2006

Note HK$’000 HK$’000

Turnover 3 206,167 173,541
Other revenue 3 930 631
Other net income 3 2,144 1,996
────────── ──────────
209,241 176,168
------------------ ------------------

Staff costs 4(a) (39,321) (32,126)
Commission expenses (105,692) (56,684)
Operating leases for land and buildings (6,560) (5,969)
Other operating expenses (32,585) (28,108)
────────── ──────────
Total operating expenses (184,158) (122,887)
------------------ ------------------

Operating profit 25,083 53,281
Finance costs 4(c) (3,968) (2,011)
────────── ──────────
21,115 51,270

Share of profit of associates 1,233 1,662
────────── ──────────
Profit before taxation 4 22,348 52,932
Income tax 5 (5,178) (9,576)
────────── ──────────
Profit for the period 17,170 43,356
══════════ ══════════
Attributable to:

Equity holders of the Company 17,170 43,356
══════════ ══════════
Proposed interim dividend 6 6,213 5,867
══════════ ══════════
Earnings per share
Basic 7(a) HK4.15 cents HK11.08 cents
Diluted 7(b) N/A HK11.08 cents
══════════ ═════════

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CONDENSED CONSOLIDATED BALANCE SHEET

As at 30th June 2007 and 31st December 2006

Unaudited Audited
30th June 31st December
2007 2006

Note HK$’000 HK$’000

Non-current assets
Intangible assets 6,472 6,472
Fixed assets 20,049 20,015
Interests in associates 8,144 8,949
Other assets 4,728 5,202
Available-for-sale financial assets 11,172 10,236
Deferred tax assets 4,331 4,853
─────── ───────
54,896 55,727
------------ ------------

Current assets
Financial assets at fair value through profit or loss 17,060 16,264
Taxation recoverable 223 498
Trade and other receivables 8 456,722 426,295
Bank balances and cash 9 286,409 280,617
─────── ───────
760,414 723,674
------------ ------------

Current liabilities
Trade and other payables 10 339,450 392,330
Short-term loan and bank overdrafts 45,618 21,049
Current portion of obligations under finance lease 580 154
Taxation payable 11,316 9,343
─────── ───────
396,964 422,876
------------ ------------

Net current assets 363,450 300,798
─────── ───────
Total assets less current liabilities 418,346 356,525
------------ ------------

Non-current liabilities
Loan notes 11 44,865 -
Deferred tax liabilities 606 653
Obligations under finance lease 758 105
─────── ───────
46,229 758
------------ ------------
NET ASSETS 372,117 355,767

═══════ ═══════
Capital and reserves attributable to the
equity holders of the Company
Share capital 41,413 41,413
Other reserves 213,654 208,262
Retained earnings 117,050 106,092
─────── ───────
TOTAL EQUITY 372,117 355,767

═══════ ═══════

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Notes:

1. Basis of preparation

This unaudited condensed consolidated financial information has been prepared in accordance
with the applicable disclosure provisions of the Rules Governing the Listing of Securities on
the Stock Exchange of Hong Kong Limited, including compliance with Hong Kong
Accounting Standard (“HKAS”) 34, “Interim Financial Reporting”, issued by the Hong Kong
Institute of Certified Public Accountants (“HKICPA”).

The condensed consolidated financial information is unaudited, but has been reviewed by
KPMG in accordance with Hong Kong Standard on Review Engagements 2410, “Review of
Interim Financial Information Performed by the Independent Auditor of the Entity” issued by
the HKICPA.

2. Accounting policies

The accounting policies and methods of computation used in the preparation of this condensed
consolidated financial information are consistent with those used in the annual financial
statements for the year ended 31st December 2006.

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3. Turnover, other revenue, other net income and segment information

Six months ended 30th June
2007 2006

HK$’000 HK$’000
Turnover
Fees and commission 86,262 53,678
Net revenue from
- foreign currency option trading 7,487 3,054
- foreign currency option broking (70) 698
- bullion trading 40,075 54,056
Net premium income from insurance broking 303 141
Swap interest and foreign exchange trading revenue 38,127 44,569
Interest income 32,268 12,283
Underwriting commission 478 362
Management, subscription and advisory fee income 1,237 4,700
─────── ───────
206,167 173,541
------------ ------------

Other revenue
Dividend income from listed securities 341 22
Dividend income from available-for-sales financial
assets 138 150
Other income 451 459
─────── ───────
930 631
------------ ------------

Other net income
Net exchange gains 1,273 1,251
Net realised gains on financial assets at fair value
through profit or loss 469 664
Net unrealised gains on financial assets at fair value
through profit or loss 402

81
─────── ───────
2,144 1,996
------------ ------------
209,241 176,168

═══════ ═══════

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Primary reporting format – Business segments

Six months ended 30th June 2007
HK$’000
Leveraged
foreign
exchange
trading/
broking
Securities
broking

Com-
modities
and futures
broking

Corporate
finance

Asset
Manage-
ment

Financial
planning/
insurance
broking
Precious
metal
contracts
trading/
broking

Unallocated

Total

Turnover 67,884 33,435 5,691 1,912 317 13,818 82,701 409 206,167
══════ ═════ ══════ ═════ ══════ ══════ ═════ ══════ ══════

Segment results 5,756 8,557 100 (430) (273) (2,788) 16,768 (2,607) 25,083
══════ ═════ ══════ ═════ ══════ ══════ ═════ ══════ ══════

Operating profit 25,083
Finance costs (3,968)
──────
21,115

Share of profit of
associates 1,233
──────
Profit before taxation 22,348
Income tax (5,178)
──────
Profit for the period 17,170
══════

Six months ended 30th June 2006
HK$’000
Leveraged
foreign
exchange
trading/
broking
Securities
broking

Com-
modities
and futures
broking

Corporate
finance

Asset
Manage-
ment

Financial
planning/
insurance
broking
Precious
metal
contracts
trading/
broking

Unallocated

Total

Turnover 61,405 18,994 8,671 2,388 1,005 13,620 65,622 1,836 173,541
══════ ═════ ══════ ═════ ══════ ══════ ═════ ══════ ══════

Segment results 22,362 6,200 1,158 594 135 (2,138) 25,437 (467) 53,281
══════ ═════ ══════ ═════ ══════ ══════ ═════ ══════ ══════

Operating profit 53,281
Finance costs (2,011)
──────
51,270

Share of profit of
associates 1,662
──────
Profit before taxation 52,932
Income tax (9,576)
──────
Profit for the period 43,356
══════

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Secondary reporting format - Geographical segments

Turnover
Six months ended 30th June
2007 2006

HK$’000 HK$’000

Hong Kong 107,937 86,982
Greater China (excluding Hong Kong) 85,447 34,719
Oceania 204 46,789
Switzerland 4,338 923
Other countries 8,241 4,128
──────── ────────
206,167 173,541

════════ ════════

4. Profit before taxation

Profit before taxation is arrived after charging:

(a) Staff costs

Six months ended 30th June
2007 2006

HK$’000 HK$’000

Salaries and allowances 37,034 31,223
Equity-settled share-based payment 1,354 -
Defined contribution plans 933 903
──────── ────────
39,321 32,126

════════ ════════

(b) Other operating expenses

Six months ended 30th June
2007 2006

HK$’000 HK$’000

Auditors’ remuneration 1,913 1,061
Bad debts written off 537 48
Depreciation of fixed assets 3,176 2,021
Legal and professional fee 1,417 1,340
Loss on disposal of fixed assets 102 32
════════ ════════

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(c) Finance cost

Six months ended 30th June
2007 2006

HK$’000 HK$’000

Interest on bank overdrafts 367 431
Interest on bank loans 1,923 1,572
Interest on loan notes 1,630 -
Interest on obligation under finance lease 48 8
──────── ────────
3,968 2,011

════════ ════════

5. Income tax

Hong Kong profits tax has been provided at the rate of 17.5% (2006: 17.5%) on the estimated
assessable profit for the six months ended 30th June 2007. Taxation on overseas profits has
been calculated on the estimated assessable profit for the period at the rates of taxation
prevailing in the countries in which the Group operates.

The amount of taxation charged to the consolidated income statement represents:

Six months ended 30th June
2007 2006

HK$’000 HK$’000
Current taxation:
- Hong Kong profits tax 3,382 6,764
- Overseas taxation 1,321 1,792

Deferred taxation relating to the origination and
reversal of temporary differences

475

1,020

──────── ────────
Taxation expenses 5,178 9,576
════════ ════════

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6. Dividends

Six months ended 30th June
2007 2006

HK$’000 HK$’000

Interim dividend declared and paid after the
interim period of HK$0.015 (2006:
HK$0.015) per ordinary share 6,213 5,867
════════ ════════

The interim dividend proposed has not been recognised as a liability at the balance sheet
date.

Six months ended 30th June
2007 2006

HK$’000 HK$’000

Final dividend in respect of the previous
financial year, approved and paid during the
period, of HK$0.015 (2006: HK$nil) per
ordinary share 6,212 -
════════ ════════

At a meeting of the directors held on 10th September 2007, the directors resolved to declare an
interim dividend of HK$0.015 (2006: HK$0.015) per ordinary share to the shareholders whose
names appear on the register of members of the Company on Friday, 5th October 2007. Such
dividend will be paid on 10th October 2007.

7. Earnings per share

(a) Basic earnings per share

The calculation of basic earnings per share is based on the Group’s profit attributable to
equity holders of HK$17,170,480 (2006: HK$43,356,314) and the weighted average
number of 414,130,000 (2006: 391,130,000) ordinary shares in issue during the six
months ended 30th June 2007.

(b) Diluted earnings per share

Diluted earnings per share for the current period has not been disclosed as the
outstanding share options have no dilutive effects on the basic earnings per share, and
their exercise prices were above the average market price of the shares during the period.

The diluted earnings per share for the six months ended 30th June 2006 is based on
391,370,357 ordinary shares which is the weighted average number of ordinary shares in
issue during the period plus the weighted average number of 240,357 ordinary shares
deemed to be issued at no consideration if all outstanding options had been exercised.

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8. Trade and other receivables

Unaudited Audited
30th June 31st December
2007 2006

HK$’000 HK$’000

Trade receivables 421,024 404,615
Other receivables 35,698 21,680
──────── ────────
456,722 426,295

════════ ════════

The carrying amounts of trade and other receivables approximate their fair value.

As at 30th June 2007, the aging analysis of the trade receivables was as follows:

Unaudited Audited
30th June 31st December
2007 2006

HK$’000 HK$’000

Current 417,486 400,447
30-60 days 20 193
Over 60 days 3,518 3,975
──────── ────────
421,024 404,615

════════ ════════

9. Bank balances and cash

Unaudited Audited
30th June 31st December
2007 2006

HK$’000 HK$’000

Cash in hand 812 554
--------------- ---------------

Bank balances
- pledged 12,967 12,689
- general accounts 272,630 267,374
──────── ────────
285,597 280,063
--------------- --------------
286,409 280,617

════════ ════════
By maturity

Bank balances
- Current and savings accounts 242,792 245,752
- Fixed deposits (maturing within three months) 35,642 34,311
- Fixed deposits (maturing over three months) 7,163 -
──────── ────────
285,597 280,063

════════ ════════

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10. Trade and other payables

Unaudited Audited
30th June 31st December
2007 2006

HK$’000 HK$’000

Trade payables 305,636 356,295
Other payables 33,814 36,035
──────── ────────
339,450 392,330

═══════ ═══════

The carrying amounts of trade and other payables approximate their fair value.

The settlement terms of payable to clearing houses and securities trading clients from the
ordinary course of business of broking in securities range from two to three days after the trade
date of those transactions. Margin deposits received from clients for their trading of
leveraged foreign exchange, precious metal contracts, commodities and futures contracts, and
the balances were payable within one month.

11. Loan notes

During the period, the Company issued loan notes to certain overseas investors and
professional investors. The loan notes are unsecured, mature on the day falling three years
after the issue date of the relevant notes and bear interest of 8.5% per annum on the principal
amount. As at 30th June 2007, loan notes bearing an aggregate principal of approximately
US$5.8 million had been issued.

MANAGEMENT DISCUSSION AND ANALYSIS

General Market Condition and Segmental Results

Not only the Group but also investors and participants in the market experienced drastic changes in
the investment market condition in the first half of 2007. Equity markets in the United States and
Asia both recorded historic highs in the first half of the year, and the Hang Seng Index was no
exception. Daily turnover volume of the Hong Kong stock exchange market broke HK$100
billion mark. Average daily turnover was approximately HK$58.7 billion (2006: HK$32.6
billion) which represented a 80% growth as compared to the corresponding period last year.
Investors were keen on investing in equities and derivatives. Turnover from foreign exchange
trading and bullion trading remained to be the main contributors to the Group, the contribution
from securities trading increased significantly. The securities broking segment reported a record
half-year result. The volatility in the foreign exchange and bullion markets during the first half
year remained low which explained the set back in the performance of the two segments. In
addition, there is pressure on the operating costs of the Group as office rental and staff costs in the
market increased substantially.

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Leveraged Foreign Exchange Trading

The US Dollar remained weak, and volatility in currencies, being a main driver for investors to
trade, was low throughout the first half of 2007. Investors traded less frequently. However,
competition from other foreign exchange trading services providers was severe. In order to stay
competitive, the spread offered to investors was unavoidably narrowed. Coupled with higher
marketing costs, all three entities in the Group conducting leveraged foreign exchange trading did
not perform as well as the corresponding period last year. Despite the fact that the turnover of
this segment increased to HK$67.9 million (2006: HK$61.4 million) as a result of including the
turnover of the new subsidiary in New Zealand, profit in this segment recorded a significant
decrease from HK$22.4 million in the first half of 2006 to HK$5.8 million.

Securities Broking

Dominated by trades in H-shares and red chips, the activities in the stock market in Hong Kong
were astonishing in the first half of 2007. New heights in the market turnover, the Hang Seng
Index and the H-shares Index were recorded. Following the high level of initial public offerings
(“IPO”) activity since last year, the secondary market activities were booming. Daily market
turnover broke through HK$100 billion in June 2007 and such a high level turnover was
maintained thereafter. For the Group, commission income generated in this segment increased by
94% to HK$27 million (2006: HK$13.9 million) though interest income on margin loans increased
at a slower pace by 24% to HK$5.2 million (2006: HK$4.2 million). The significant growth in
commission income reflected investors’ behavior on frequent trading. Turnover in the segment
increased by 76% to HK$33.4 million (2006: HK$19 million) whereas profit contribution
increased to HK$8.6 million (2006: HK$6.2 million).

Commodities and Futures Broking

Prices for commodities were already at high levels throughout the first half of 2007 with price
movements within a narrow range. Although the global demand for natural resources remains
strong, further surge in prices is not expected. Low price volatility resulted in low turnover
volume. As such, commission income from this segment decreased to HK$4.9 million (2006:
HK$8.4 million) mainly due to a decline in commission on commodities contracts in oversea
markets to HK$2.8 million (2006: HK$5.6 million). Consequently, only a slight profit of
HK$0.1 million was recorded (2006: HK$1.2 million).

Corporate Finance

As the IPO market has still been dominated by established entities, it is difficult for small to
medium sized corporate finance houses to obtain a fair share. Hence, providing corporate
advisory services to, and acting as compliance advisors for, listed companies remained our
business focus. Turnover for the period decreased to HK$1.9 million (2006: HK$2.4 million),
resulting in a small loss of HK$0.4 million (2006: profit of HK$0.6 million). Competing for
experienced staff in the market has driven up costs in this segment and the Group was similarly
affected. However, an improved result is expected as an IPO sponsored by our team has
successfully listed on the Stock Exchange in September 2007, and another IPO is expected to be
launched in the last quarter of 2007.

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Asset Management

Turnover in this segment dropped to HK$0.3 million (2006: HK$1 million) and a loss of HK$0.3
million (2006: profit of HK$0.1 million) was incurred. The equity fund continues to employ a
conservative strategy to avoid unexpected loss in the volatile equity market and the return in the
first half of 2007 reflects this conservatism. As the return of the foreign exchange fund might not
have met the expectation of certain investors, significant redemption was recorded. As a result,
the fund size dropped below a level for the fund to operate economically and the Group thus
decided to liquidate it in order to safeguard the interest of remaining investors.

Financial Planning

The performance of the financial planning business in Hong Kong has been growing steadily amid
keen competition in the market. Overall turnover recorded a slight increase to HK$13.8 million
(2006: HK$13.6 million), yet the overall loss was widened to HK$2.8 million (2006: loss of
HK$2.1 million). The result of Hong Kong’s operation was satisfactory and recorded a turnover
of HK$12.9 million (2006: HK$9.8 million) and a profit of HK$1.3 million (2006: HK$1 million).
The business in Taiwan has yet to pick up. The Group has recently re-assessed the business
model of its Taiwan operation and has implemented certain measures in order to boost its business.
The result of such change will be reflected in the Group’s second half year.

Bullion Trading

Prices of gold for the first half of 2007 moved between US$608.4 and US$691.4 per ounce
whereas the price range for the corresponding period in 2006 was between US$524.8 and US$725
per ounce. The daily movement in gold prices was at a lower magnitude and hence business
volume on intra-day trades decreased. In addition, same as foreign exchange trading, the Group
faced keen competition from other service providers in the market. Unavoidably the cost of
operation, especially commission payable to the business introducers, surged remarkably.
Turnover increased to HK$82.7 million (2006: HK$65.6 million) subsequent to the consolidation
of the Group’s subsidiary in New Zealand. However, profit from this segment slipped to
HK$16.8 million (2006: HK$25.4 million).

Looking Forward

The issues on sub-prime mortgages and collateralised debt obligations, which originated in the
United States, have widely spread to Europe and have become the major hurdles for growth in the
investment market. However, sustained economic growth in the Mainland creates genuine
demand for properties, consumer goods and investment products. The interaction of the two
factors implies a volatile market, as already demonstrated in an intra-day index volatility of
exceeding 1,000 points. The unwinding of carry-trade positions has caused sharp movements in
currencies within a short period of time. Prices of bullion and commodities are expected to be
volatile. While volatility in the market stimulates investors’ interest to trade, the Group would
uphold its risk management policy. The Group plans to consolidate and strengthen its existing
foothold in different regions. The negotiation on a joint venture involving subscription of shares
by a financial institution in Kazakhstan is progressing well. It is expected that the cooperation
would create synergies to the existing business of the Group. All in all, the Group is optimistic in
the business in the future.

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Financial Resources

The Group continues to maintain sound financial status throughout the period. In order to
provide stable medium term financing to the Group, loan notes amounting to HK$44.9 million for
a tenure of three years have been issued to overseas professional investors. It has been the policy
of the Group to maintain high liquidity to defend against sudden unexpected adverse changes in
the market.

Contingent liabilities

Apart from corporate guarantees rendered to the Group’s wholly owned subsidiaries to secure
banking facilities and the litigation cases already mentioned in the annual report of 2006, there
have been no new significant contingent liabilities.

Exposure to fluctuation in foreign exchange rates

The business of the Group is mainly conducted in HK Dollars and US Dollars. Major assets of
the Group are also denominated in these two currencies. Only non-current assets of our overseas
subsidiaries and representative offices are denominated in the local currencies of their respective
places of domicile. As the HK Dollar is pegged with the US Dollar, and as exposures in other
currencies have been properly hedged, the Group’s exposure to fluctuation in foreign exchange
rates is not significant.

INTERIM DIVIDEND

The directors are pleased to declare an interim dividend of HK1.5 cents per ordinary share for the
six months ended 30th June 2007 (2006: HK1.5 cents).

CLOSURE OF REGISTER OF MEMBERS

The Register of Members of the Company will be closed from Wednesday, 3rd October 2007 to
Friday, 5th October 2007, both days inclusive, during which period no transfer of shares can be
registered. In order to qualify for the interim dividend, all transfers accompanied by the relevant
share certificates must be lodged with the Company’s Hong Kong branch share registrar and
transfer office, Secretaries Limited, 26th Floor, Tesbury Centre, 28 Queen’s Road East, Hong
Kong for registration not later than 4:00 p.m. Tuesday, 2nd October 2007.

PURCHASE, SALE OR REDEMPTION OF SHARES

The Company has not redeemed any of its shares during the six months ended 30th June 2007.
Neither the Company nor any of its subsidiaries has purchased or sold any of the Company’s
shares during the six months ended 30th June 2007.

COMPLIANCE WITH THE CODE ON CORPORATE GOVERNANCE
PRACTICES

The Group has always strive to enhance our corporate governance and transparency by adopting
and implementing appropriate corporate governance practices; and the Group has complied with
all the code provisions as set out in the Code on Corporate Governance Practices, Appendix 14 of
the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (the
“Listing Rules”) with the following exception:

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Code Provision A.2.1

This provision states that the roles of chairman and chief executive officer should be separated
and should not be performed by the same individual. The division of responsibilities between
the chairman and chief executive officer should be clearly established and set out in writing.

Mr. Tang Yu Lap assumes the role of chairman, and there is no other person designated as chief
executive officer. The Board believes that this structure helps maintain strong and effective
leadership and leads to a highly efficient decision making process. To help achieve a balance of
power and authority, an Executive Management Committee comprising senior executives and
chaired by the deputy chairman meets every week to discuss and make decision on issues relating
to day-to-day management of the Group’s businesses. In addition, the Board comprises reputable
professionals who meets regularly to discuss major issues affecting operations of the Group which
also helps maintain high level of balance of power without compromising consistent leadership of
the Group.

COMPLIANCE WITH MODEL CODE FOR SECURITIES TRANSACTIONS BY
DIRECTORS

The Company has adopted for compliance by the directors the code of conduct for dealings in
securities of the Company as set out in Appendix 10 – Model Code for Securities Transactions by
Directors of Listed Issuers (“Model Code”), of the Listing Rules, and that the directors have
complied with the required standards set out in the Model Code throughout the six months ended
30th June 2007.

AUDIT COMMITTEE

The Audit Committee has reviewed with the management the accounting principles and practices
adopted by the Group and discussed internal controls and financial reporting matters including a
review of the unaudited interim financial statements for the six months ended 30th June 2007 with
the directors. The Group’s external auditors have carried out a review of the unaudited interim
financial statements in accordance with Hong Kong Standard on Review Engagements 2410,
“Review of Interim Financial Information Performed by the Independent Auditor of the Entity”,
issued by the Hong Kong Institute of Certified Public Accountants.

PUBLICATION OF INFORMATION ON THE STOCK EXCHANGE’S WEBSITE

This announcement and the Company’s 2007 interim report of the six months ended 30th June
2007 which sets out all applicable information required by Appendix 16 of the Listing Rules will
be published on the website of the Stock Exchange of Hong Kong Limited in due course.

By Order of the Board
Hantec Investment Holdings Limited
Tang Yu Lap
Chairman

Hong Kong
10th September 2007

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As at the date hereof, the Board of Hantec Investment Holdings Limited comprises:

Executive Directors: Mr. Tang Yu Lap (Chairman)
Mr. Lam Ngok Fung (Deputy Chairman)
Ms. Ng Chiu Mui
Mr. Law Kai Yee
Ms. Hwang Wei Ming, Ellen
Mr. Lau Mun Chung

Non-executive Director: Mr. Fong Wo, Felix

Independent Non-executive Directors: Mr. Yu Man Woon
Mr. Cheng Wing Chi
Professor Nyaw Mee Kau
Mr. Yu Hon To, David

Website: http://www.hantec.com

For identification purposes only