(Stock code: 2383)

INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2007



For the six months ended 30 June 2007:

null Group Revenues were HK$1,347 million
null Segment profit was HK$129 million
null EBITDA was HK$97 million
null Loss attributable to shareholders was HK$72 million
null Loss per share from continuing operations was HK 1.81 cents

CHAIRMAN’S STATEMENT

e “Company”) and
Group”) for the six
various
p was
d improvements in

I am pleased to announce the results of TOM Group Limited (“TOM” or th
its subsidiaries (collectively referred to as the “TOM Group” or the “
months ended 30 June 2007.

The first half of 2007 was challenging for TOM Group but the performance of
business groups were encouraging. While the overall performance of the Grou
impacted by the online business; all the offline business groups showe
both revenues and segment profit.

- 1 -

Financial Highlights

For the six months ended
30 June 2007
HK$’000
30 June 2006
HK$’000
Revenues
Offline business 782,151 691,259
Online business 564,859 781,881
1,347,010 1,473,140

Segment profit
Offline business 72,416 52,803
Online business 56,500 207,602
128,916 260,405

(Loss)/ profit attributable to shareholders (72,346) 91,262
Basic (Loss)/earnings per share (HK cents) (1.81) 2.69
Restated to reflect the discontinued operations of the Sports Group
Included TOM Online’s goodwill impairment of HK$53 million and share of TOM
Eachnet’s loss of HK$54 million
Included a deemed disposal net gain of HK$25 million

- 2 -

For the six months ended 30 June 2007:

null Group Revenues were HK$1,347 million
null Segment profit was HK$129 million
null EBITDA was HK$97 million
null Loss attributable to shareholders was HK$72 million
null Loss per share from continuing operations was HK1.81 cents

Financial Performance

For the six months ended 30 June 2007, the TOM Group reported revenues of HK$1,347
million, a drop of 8.6% compared to the same period last year’s HK$1,473 million. Segment
profit was HK$129 million versus last year’s HK$260 million. Segment profit margin was
9.6% compared to last year’s 17.7%. Loss attributable to shareholders was HK$72 million
(included TOM Online’s goodwill impairment of HK$53 million and share of TOM Eachnet’s
loss of HK$54 million) versus profit attributable to shareholders of HK$91 million reported in
the same period last year (included a deemed disposal net gain of HK$25 million). Loss per
share from continuing operations for the six months was HK1.81 cents.

The Internet Group reported revenues of HK$565 million, a drop of 27.8% compared to last
year’s HK$782 million. Segment profit for the period dropped by 72.8% to HK$57 million.
Revenues of the Publishing Group increased by 3.4% to HK$482 million for the six months,
compared to last year’s HK$466 million; segment profit grew by 9.6% to HK$72 million,
versus last year’s HK$66 million. Revenues of the Outdoor Media Group grew by 15.3% to
HK$213 million, compared to last year’s HK$185 million; segment profit was HK$14 million
versus last year’s HK$12 million. The Television and Entertainment Group reported
revenues of HK$87 million for the period, which included HK$41 million of revenues
generated by Yangcheng (“YC”). Excluding the revenues of YC, the Television and
Entertainment Group posted a growth of 14.1% to HK$46 million in revenues compared to
last year’s HK$40 million. Segment loss for the Television and Entertainment group was
HK$14 million; excluding YC’s segment profit of HK$1.2 million, segment loss of the
Television and Entertainment Group reduced by 39.3% to HK$15 million, versus last year’s
HK$25 million.

Business Review
INTERNET GROUP

Revenues of the Internet Group for the period were HK$565 million, a drop of 27.8% versus
last year’s HK$782 million. Operations of TOM Online made up about 97.9% of Internet
Group’s total revenues. Segment profit dropped by 72.8% to HK$57 million compared to
last year’s HK$208 million. Segment profit margin for the period was 10.0% versus last
year’s 26.6%.

For the first six months of 2007, total wireless Internet revenues dropped by 31.9% to
HK$484 million versus last year’s HK$711 million and accounted for 89.3% of TOM Online’s
total revenues. Online advertising revenues dropped by 8.3% to HK$47 million compared to
last year’s HK$51 million, and made up about 8.7% of TOM Online’s total revenues.

In May 2007, China Mobile introduced a new practice of sending fee reminders to its WAP
service users when they request downloads of WAP pages onto their mobile handsets and
seeking their confirmation before such download requests are processed. Furthermore, in
the past, China Mobile entered into its own strategic alliances with selected mobile phone
producers pursuant to which it embedded menus in their handsets for all the best-selling
products on China Mobile’s Monternet wireless portal, including certain of our products.
However, beginning in May 2007, China Mobile has started to promote only its own wireless
value-added service products in such menus and does not include ours or those of any
other third-party value-added service providers. These policies had a significant adverse
impact on TOMO’s wireless Internet business in 2Q07. A goodwill impairment of

- 3 -

approximately HK$53 million on the Wireless Internet business was made for the six
months.

Although these new measures adversely impacted TOM Online in the period and the last
half of 2006 in the short run, we believe that in the longer term there remains good
opportunities for the continued development of our wireless Internet businesses.
Throughout this difficult period, TOM Online has maintained a healthy working relationship
with China Mobile. In addition, certain products, such as SMS (“Short Messaging Service”)
and CRBT (“Color Ring Back Tone”) continued to post growth (14% and 3% respectively in
the second quarter of 2007 compared with the first quarter of the year). For the first six
months of 2007, revenues CRBT grew 19% over last year.

Online advertising reported revenues of HK$47 million, representing a drop of 8.3%
compared to last year’s HK$51 million.

Beginning on February 1, 2007, TOMO recognized its share of losses from the TOM
Eachnet JV based on the equity method of accounting. For the six months ended June 30,
2007, its 51% share of losses from the TOM Eachnet JV was approximately HK$54 million
and has been included in share of loss on equity investment in a joint venture in the
unaudited consolidated profit and loss account.

Before its share of start-up losses of TOM Eachnet JV and the goodwill impairment, TOM
Online achieved positive cashflow from operations of HK$55 million for the first half of the
year.

The new platform of TOM Eachnet was formally launched on 12 July 2007 with a more
simplified and user-friendly interface for Chinese users. The independent platform in China
is much more responsive to users’ requests and functionality updates. Daily page views
reached 17 million in early August. The TOM Eachnet platform is now a standalone platform.
More new functions will be launched and marketing efforts which has been put on hold
during the development of the new platform will be stepped up in the coming months to
enhance traffic and transaction volume of the website.

At the end of July 2007, TOM-Skype registered users were 51.0 million, up from over 35.5
million at the end of March 2007. Value added services will be launched in the near future to
leverage on the user base.

PUBLISHING GROUP

The Publishing Group reported revenues of HK$482 million for the first six months of 2007,
a moderate growth of 3.4% over last year’s HK$466 million. Segment profit of the group
grew by 9.6% to HK$72 million, compared to last year’s HK$66 million. Segment profit
margin for the six months improved from last year’s 14.1% to 14.9%. Excluding the disposal
gain of HK$14 million from the disposal of Yazhou Zhoukan in the first half of 2006,
segment profit increased by 41.2% and segment profit margin improved from last year’s
10.9% to 14.9% for the six months.

In the first half of 2007, advertising revenues made up 31% of the group’s total, magazine
sales made up 24%, while book sales accounted for 41%. Revenue from Taiwan accounted
for 98% of the total revenues, with the rest generated from Mainland China and Hong Kong.

The performance of Taiwan Publishing in the first half was encouraging given the
competitive operating environment in which it operates. The Taiwan magazine business
continued to perform well in the first half of the year. Advertising revenues of the Taiwan
magazines maintained steady growth in the first half of the year. Magazine circulation
volume increased about 20% over the same period last year. Mom Baby, a magazine
published by Nong Nong, received an award as the most popular magazine for female in
the age group of 25 to 34 from AC Nielsen, while Citta Bella became one of the top two
fashion magazines in Taiwan. Two news stories reported by Business Weekly received the

- 4 -

SCOOP Award and Excellence in Reporting Breaking News award from The Society of
Publishers in Asia.

With the emphasis on profitability, the number of new book titles published by the Taiwan
operations reduced by 13.4% for the first six months of the year as planned, and the total
number of new books printed reduced by similar percentage compared to last year.
Revenues of Cite, grew by 14.3% to HK$119.7 million, gross profit grew by 37.4% to HK$50
million and gross profit margin improved from last year’s 35.0% to 42.1%.

Performance of the five magazines developed and launched in Mainland China by Taiwan
operations were encouraging albeit they were still in investment stage. The number of
subscribers increased more than 4 fold versus the same period last year; circulation
revenues increased by 45.2% to HK$1.5 million. Advertising revenues increased 24.4%
over the same period last year, total number of pages for advertisement increased 46.2%
over the past year. The February 2007 issue of “DG Best” awarded as one of the top 10
popular magazines in a survey conducted by ZCOM, a leading Internet magazine
distributors in Mainland China.

Pixnet, (www.pixnet.net) a leading social networking website in Taiwan, acquired in
February 2007, has been performing well. During the past six months since its acquisition,
Pixnet’s ranking in terms of traffic in Taiwan went up from 59
th
to 24
th
according to Alexa, an
information company. In addition to increasing traffic, Pixnet has begun to generate
advertising revenue. Pixnet acts as pre-marketing and pre-research platform for new books
launched by the group and also produces online social networking channels for magazines
within the group.

OUTDOOR MEDIA GROUP

Revenues of the Outdoor Media Group (“OMG”) were HK$213 million for the first six
months of 2007, a growth of 15.3% compared to the same period last year’s HK$185 million.
Segment profit of the group grew by 19.1% to HK$14 million versus last year’s HK$12
million. Segment profit margin was 6.7% compared to last year’s 6.5%.

In the first six months of 2007, revenues from self-owned/leased media made up 61% of the
total, media buying made up 27%, with the remainder generated from professional services.
Average selling price of self-built/leased assets for the period increased 24.7% over the
same period last year. Average selling price of billboard and unipole increased 38.4%
versus last year.

Total media asset space of OMG maintained at about 340,000 square meters; self-
owned/leased assets made up about 87% of total assets, and the remainder was media
buying. Billboard and unipole made up 77% of the total media assets, street furniture and
transportation advertisings made up 22% and remaining 1% were other media. Occupancy
rate of self-owned/leased assets were about 71% compared to 73% at the end of 2006.

OMG has been stepping up its development in the first tier cities including Beijing, Shanghai,
Guangzhou and Shenzhen in the first six months of the year; apart from the development of
digital light boxes in Puxi of Shanghai and various projects in negotiations in Shanghai, it
has just secured several spectacular billboards located in a prime location of Beijing city in
July 2007. OMG believes that the newly secured billboards will enable the group to capture
good business opportunities resulting from the 2008 Beijing Olympics.

In the first half of the year, OMG continued to expand its media assets portfolio in different
higher margin categories in the first tier cities as well as leading second tier cities, though
the focus of the group remains on billboard and unipole. Initiatives were also undertaken to
strengthen the group’s network sales by enhanced integration within subsidiaries. As at 30
June 2007, OMG operated 16 subsidiaries with advertising presence in over 60 cities
throughout Mainland China.

- 5 -

TELEVISION AND ENTERTAINMENT GROUP

Revenues of the Television and Entertainment Group grew by 116.1% to HK$87 million,
compared to last year’s HK$40 million. Starting from the fiscal year of 2007, results of YC,
previously a sports marketing company, are grouped under the Television and
Entertainment Group. In the first half of the year, YC reported revenues of HK$41 million
which were mainly advertising revenues. Excluding the revenues of YC, the Television and
Entertainment Group posted a growth of 14.1% to HK$46 million in revenues compared to
last year’s HK$40 million. Segment loss for the Television and Entertainment group was
HK$14 million; excluding YC’s segment profit of HK$1.2 million, segment loss of the
Television and Entertainment Group reduced by 39.3% to HK$15 million versus last year’s
HK$25 million.

Advertising revenues made up 80% of the total revenues of CETV for the six months ended
2007, compared to last year’s 86%; with the rest contributed by new media, events and
program syndication. Revenues from event management of CETV increased substantially
at over 50% versus last year; contracts secured and to be recognized in the second half of
the year amounted to over HK$17 million. Leveraging on its broadcasting platform, CETV
organized events for certain large local clients such as Shenzhen Telecom as well as
various international brands. Program syndication of CETV maintained a moderate growth
in the first half of 2007 and it is expected that with more in-house productions in pipeline,
revenues from program syndication will continue to grow.

A new company was set up under the Television and Entertainment Group to further pursue
new media initiatives. The new TV Interactive company will work closely with TOMO and
CETV in producing interactive programs leveraging the multi-media platform of TOM Group.
The new company will also work with other wireless services providers and television
networks.

The restructuring of YC held in the first half of 2006 has successfully repositioned the
Company as an integrated marketing communication expert. In the first half of the year,
revenues of YC were mainly generated from event, PR promotion production services and
media buying business. YC has organized events for various international brands, including
a countrywide campaign for Nokia covering 42 cities throughout Mainland China. The
Company has also played a significant role in cross-selling relevant products from all of
TOM Group’s business groups, especially OMG and CETV.

BUSINESS OUTLOOK

The privatization of TOM Online was approved by a majority of votes by shareholders in the
Court meeting and EGM held on 10 August 2007 respectively. This will result in an
estimated annual operating saving of HK$40 million, TOM Online’s joint ventures with
Skype and Ebay will diversify and broaden the revenues streams of the Group’s online
businesses. The TV Interactive company will expand both the content production and
distribution capabilities of the Group. These initiatives, together with continued focus on
operating and financial disciplines in the Publishing, Outdoor Media and Television and
Entertainment Groups should lay the foundation for improved performance going forward.

I would like to take this opportunity to thank the management and staff for their continuing
hard work and dedication.

Frank Sixt
Chairman

Hong Kong, 21 August 2007

- 6 -

MANAGEMENT’S DISCUSSION AND ANALYSIS

Liquidity and Financial Resources

As at 30 June 2007, TOM Group had bank and cash balance, including pledged deposits, of
approximately HK$1,686 million and listed debt securities of approximately HK$1,692
million, of which bank balance and listed debt securities of approximately HK$36 million and
HK$1,614 million, respectively were pledged to secure bank loan facilities of the Group. A
total of HK$4,740 million financing facilities from banks were available, of which HK$2,485
million had been drawn down to finance the Group’s acquisitions, capital expenditures and
for working capital purposes as at 30 June 2007. This total available financing facilities
included a total of US$230 million (approximately HK$1,794 million) which was secured by
the Group for the purpose of financing the privatization of TOM Online as disclosed in the
scheme document dated 30 April 2007 jointly issued by TOM Online and the Group.

Total borrowings of TOM Group amounted to approximately HK$2,681 million as at 30 June
2007. This included liability portion of convertible bonds of approximately HK$196 million,
long-term bank and other loans of approximately HK$2,133 million and short-term bank and
other loans of approximately HK$352 million. The gearing ratio of TOM Group was 38.1%
as at 30 June 2007, as compared to 40.3% as at 31 December 2006.

As at 30 June 2007, the Group had net current assets of approximately HK$990 million, as
compared with HK$864 million as at 31 December 2006.

As at 30 June 2007, the current ratio of TOM Group was 1.47 compared to 1.43 as at 31
December 2006.

For the six months of 2007, the Group generated net cash of HK$9 million from its operating
activities, as compared to net cash inflow of approximately HK$274 million in the same
period of 2006.

Charges on Group Assets

As at 30 June 2007, the Group had listed debt securities with a market value of
approximately HK$1,614 million pledged to banks for securing bank loans and the amount
drawn down by the Group was HK$1,489 million. In addition, bank deposits, cash and other
assets at total net book value of approximately HK$42 million were pledged to banks for
securing banking and other facilities granted to certain subsidiaries and an associate
company of the Group.

Foreign Exchange Exposure

In general, it is the Group’s policy for each operating entity to borrow in local currencies,
where necessary, to minimize currency risk.

Contingent Liabilities

As at 30 June 2007, TOM Group had no material contingent liabilities.

Employee Information

As at 30 June 2007, TOM Group had 3,991 full-time employees. During the first six months
of the year, employee and stock option costs, including Directors’ emoluments, totaled at
HK$300 million. The Group’s employment and remuneration policies remained the same as
detailed in the Annual Report for the year ended 31 December 2006.

- 7 -

CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 30 JUNE 2007

Unaudited
Six months ended 30 June
Note 2007 2006
HK$’000 HK$’000
(As restated)
Continuing operations
Turnover 2 1,347,010 1,473,140
════════ ════════
Cost of sales (877,495) (876,220)
Interest income 50,204 49,544
Selling and marketing expenses (160,728) (151,610)
Administrative expenses (118,177) (128,534)
Other operating expenses (135,062 (132,262
Provision for goodwill impairment 3 (53,283) -
Share of losses of jointly controlled entities (54,030) (327)
Share of profits of associated companies 8,435 5,014
──────── ────────
Operating profit before net gain on deemed disposals
of interests in subsidiaries 6,874 238,745
Net gain on deemed disposals of interests in
subsidiaries 4 - 24,601
──────── ────────
Operating profit 5 6,874 263,346
Finance costs 6 (68,792) (66,818)
──────── ────────
(Loss) / profit before taxation (61,918) 196,528
Taxation 7 (24,412) (20,542)
──────── ────────
(Loss) / profit for the period from continuing operations (86,330) 175,986
Discontinued operations
Loss for the period from discontinued operations 8 (1,780) (13,938)
──────── ────────
(Loss) / profit for the period (88,110) 162,048
════════ ════════
Attributable to:
Minority interests (15,764) 70,786
════════ ════════
Equity holders of the Company (72,346) 91,262
════════ ════════
(Loss)/earnings per share for (loss)/profit attributable to
the equity holders of the Company during the period 10

From continuing operations
Basic HK(1.81)cents HK2.69cents
══════════ ══════════
Diluted N/A N/A
══════════ ══════════
From discontinued operations
Basic HK(0.05)cents HK(0.34)cents
══════════ ══════════
Diluted N/A N/A
══════════ ══════════

- 8 -
CONDENSED CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2007

Note

30 June
2007

Unaudited

31 December
2006

Audited
HK$’000 HK$’000
ASSETS AND LIABILITIES

Non-current assets
Fixed assets 275,119 302,314
Goodwill 2,637,585 2,719,455
Other intangible assets 70,843 104,316
Interests in jointly controlled entities (36,454) 14,171
Interests in associated companies 231,146 231,093
Available-for-sale financial assets 1,745,743 1,986,388
Loans and receivables 2,112 2,091
Deferred tax assets 45,521 42,896
Other non-current assets 21,823 19,501
──────── ────────
4,993,438 5,422,225
-------------- --------------

Current assets
Assets classified as held for sale 210,384 93,973
Inventories 128,145 130,068
Trade and other receivables 11 1,056,579 988,133
Restricted cash 35,575 37,546
Bank balances and cash 1,650,696 1,618,778
──────── ────────
3,081,37 2,868,498
-------------- --------------

Current liabilities
Liabilities classified as held for sale 11,011 7,920
Consideration payables 134,330 129,220
Trade and other payables 12 803,983 816,689
Taxation payable 45,165 56,858
Long-term bank loans - current portion 745,060 265,786
Short-term bank and other loans 351,810 727,569
──────── ────────
2,091,359 2,004,042
--------------- ---------------

Net current assets 990,020 864,456
--------------- ---------------

Total assets less current liabilities 5,983,458 6,286,681
--------------- ---------------

Non-current liabilities
Deferred tax liabilities 14,650 11,617
Other non-current liabilities 13 1,612,467 1,953,286
──────── ────────
1,627,11 1,964,903
--------------- ---------------

Net assets 4,356,341 4,321,778
════════ ════════
EQUITY

Capital and reserves attributable to
equity holders of the Company
Share capital 389,328 389,328
Reserves 14 2,547,430 2,544,673
Own shares held (6,244) (6,244)
──────── ────────
Shareholders’ funds 2,930,514 2,927,757
Minority interests 1,425,827 1,394,021
──────── ────────
Total equity 4,356,341 4,321,778
════════ ════════

- 9 -
NOTES

1 Basis of preparation and accounting policies

These unaudited condensed consolidated financial statements have been prepared in
accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial
Reporting" issued by the Hong Kong Institute of Certified Public Accountants and
applicable disclosure requirements of the Rules Governing the Listing of Securities on


These condensed consolidated financial statements should be read in conjunction with
the 2006 annual financial statements of the Group.

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

The following new standards, amendments to standards and interpretations are
mandatory for financial year ending 31 December 2007:

Amendment to HKAS 1 “Presentation of Financial Statements: Capital
Disclosures”
HKFRS 7 “Financial Instruments: Disclosures”
HK(IFRIC)-Int 7 “Applying the Restatement Approach under HKAS 29,
Financial Reporting in Hyperinflationary Economies”
HK(IFRIC)-Int 8 “Scope of HKFRS 2”
HK(IFRIC)-Int 9 “Reassessment of Embedded Derivatives”
HK(IFRIC)-Int 10 “Interim Financial Reporting and Impairment”

All the new standards, amendments to standards and interpretations above are either
not relevant or do not have material impacts to the Group.

- 10 -

2 Segment reporting

Primary reporting format - business segments

The Group is organised into the following business segments:

Continuing operations

• Internet Group - provision of wireless internet services, online advertising,
commercial enterprise solutions, and internet access.
• Publishing Group - magazine and book circulation, sales of publication
advertising and other related products.
• Outdoor Media Group - advertising sales of outdoor media assets and provision
of outdoor media services.
• Television and Entertainment Group - advertising sales, provision of broadcasting
post production services, event organisation and sponsorship sales.

Discontinued operations

• Sports Group - event organisation, advertising and sponsorship sales in relation
to sports events and programmes.

Since 1 January 2007, Sports Group has ceased to participate in or organise any
sports events. Further details of the discontinuation of the Sports Group segment
are set out in note 8.

- 11 -
2 Segment reporting

Primary reporting format - business segments
Unaudited
Six months ended 30 June 2007

Continuing Operations
Discontinued
Operations

Internet
Group
Publishing
Group
Outdoor
Media
Group
Television and
Entertainment
Group Sub-total

Sports
Group Total
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Total gross segment turnover 564,859 482,298 212,987 87,942 1,348,086 - 1,348,086
Inter-segment turnover - (116) - (960) (1,076) - (1,076)
─────── ─────── ─────── ─────── ─────── ─────── ────────
Turnover 564,859 482,182 212,987 86,982 1,347,010 - 1,347,010
═══════ ═══════ ═══════ ═══════ ═══════ ═══════ ════════
Segment profit/(loss) before
amortisation and depreciation 98,593 80,857 31,463 1,090 212,003 (1,808) 210,195
Amortisation and depreciation (42,093) (8,854) (17,162) (14,978) (83,087) (48) (83,135)
─────── ─────── ─────── ─────── ─────── ─────── ────────
Segment profit/(loss) 56,500 72,003 14,301 (13,888) 128,916 (1,856) 127,060
═══════ ═══════ ═══════ ═══════ ═══════ ═══════
Provision for goodwill
impairment (53,283) - - - (53,283) - (53,283)
Share of losses of jointly
controlled entities (54,030) - - - (54,030) - (54,030)
Share of profits of associated
companies 229 8,206 - - 8,435 - 8,435
Unallocated (costs)/income (23,164) 76 (23,088)
────────-- ──────── ───────-
Operating profit/(loss) 6,874 (1,780) 5,094
Finance costs (68,792) - (68,792)
──────── ──────── ───────-
Loss before taxation (61,918) (1,780) (63,698)
Taxation (24,412) - (24,412)
──────── ──────── ───────-
Loss for the period (86,330) (1,780) (88,110)
════════ ════════ ════════
Attributable to:
Minority interests (15,764) - (15,764)
════════ ════════ ════════
Equity holders of the Company (70,566) (1,780) (72,346)
════════ ════════ ════════

Segment capital expenditure 10,978 3,878 12,292 18,693 45,841 - 45,841
Unallocated capital expenditure 467
───────
Total capital expenditure 46,308
═══════

- 12 -
2 Segment reporting

Primary reporting format - business segments
Unaudited
Six months ended 30 June 2006 (restated)

Continuing Operations
Discontinued
Operations

Internet
Group
Publishing
Group
Outdoor
Media
Group
Television
and
Entertain-
ment Group Sub-total

Sports
Group Total
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Total gross segment turnover 781,881 467,739 184,728 44,198 1,478,546 49,482 1,528,028
Inter-segment turnover - (1,452) - (3,954) (5,406) (625) (6,031)
─────── ─────── ────── ─────── ─────── ────── ───────
Turnover 781,881 466,287 184,728 40,244 1,473,140 48,857 1,521,997
═══════ ═══════ ══════ ═══════ ═══════ ══════ ═══════

Segment profit/(loss) before
amortisation and depreciation
244,581 75,511 27,583 (3,950) 343,725 (14,012) 329,713
Amortisation and depreciation (36,979) (9,823) (15,575) (20,943) (83,320) (291) (83,611)
─────── ─────── ────── ─────── ─────── ─────── ───────
Segment profit/(loss) 207,602 65,688 12,008 (24,893) 260,405 (14,303) 246,102
═══════ ═══════ ══════ ═══════ ═══════ ═══════
Share of losses of jointly
controlled entities (327) - - - (327) - (327)
Share of (losses)/profits of
associated companies (108) 5,122 - - 5,014 - 5,014
Unallocated (costs)/income (26,347) 233 (26,114)
─────── ─────── ───────
Operating profit/(loss) before
net gain on deemed disposals 238,745 (14,070) 224,675
Net gain on deemed disposals
of interests in subsidiaries - - 24,601 - 24,601 - 24,601
─────── ─────── ───────
Operating profit/(loss) 263,346 (14,070) 249,276
Finance costs (66,818) - (66,818)
─────── ─────── ───────
Profit/(loss) before taxation 196,528 (14, 070) 182,458
Taxation (20,542) 132 (20,410)
─────── ─────── ───────
Profit/(loss) for the period 175,986 (13,938) 162,048
═══════ ═══════ ═══════

Profit/(loss) attributable to
Minority interests 71,331 (545) 70,786
═══════ ═══════ ═══════
Profit/(loss) attributable to
Equity holders of the Company 104,655 (13,393) 91,262
═══════ ═══════ ═══════
Segment capital expenditure 34,917 7,745 11,921 18,923 73,506 64 73,570
Unallocated capital expenditure 777
───────
Total capital expenditure 74,347
═══════

- 13 -

2 Segment reporting

Secondary reporting format - geographical segments

Unaudited
Turnover
Six months ended 30 June 2007 Six months ended 30 June 2006
Continuing
Operations
Discontinued
Operations
Consolidated
Total .
Continuing
Operations
Discontinued
Operations
Consolidated
Total .
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Hong Kong 7,704 - 7,704 8,152 - 8,152
Mainland China 866,819 - 866,819 994,779 48,857 1,043,636
Taiwan and other
Asian countries 472,487 - 472,487 470,209

- 470,209

───────── ───────── ───────── ───────── ───────── ─────────
1,347,010 - 1,347,010 1,473,140 48,857 1,521,997

═════════ ═════════ ═════════ ═════════ ═════════ ═════════

Unaudited
Operating profit / (loss)
Six months ended 30 June 2007 Six months ended 30 June 2006
Continuing
Operations
Discontinued
Operations
Consolidated
Total .
Continuing
Operations
Discontinued
Operations
Consolidated
Total .
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000

Hong Kong (5,547) - (5,547) (399) - (399)
Mainland China 130,349 (1,808) 128,541 269,814 (14,012) 255,802
Taiwan and other
Asian countries 87,201 - 87,201 74,310 - 74,310
───────── ───────── ───────── ───────── ───────── ─────────
212,003 (1,808) 210,195 343,725 (14,012) 329,713

Amortisation and
depreciation (83,087) (48) (83,135)

(83,320) (291) (83,611)
Provision for goodwill
impairment (53,283) - (53,283) - - -
Share of losses of
jointly controlled
entities (54,030) - (54,030) (327) - (327)
Share of profits of
associated
companies 8,435 - 8,435 5,014 - 5,014
Net gain on deemed
disposals of
interests in
subsidiaries - - - 24,601 - 24,601
Unallocated
(costs)/income (23,164) 76 (23,088)

(26,347) 233 (26,114)
───────── ───────── ───────── ───────── ───────── ─────────
Operating
profit/(loss) 6,874 (1,780) 5,094 263,346 (14,070) 249,276
═════════ ═════════ ═════════ ═════════ ═════════ ═════════

- 14 -

3 Provision for goodwill impairment

In May 2007, China Mobile Communications Corporation (“China Mobile”) began the
operational practice of displaying a service fee reminder to Wireless Application Protocol
(WAP) service users when they requested for the download of a WAP page onto their
mobile handsets and seeking their confirmation before processing the download request.
In addition, China Mobile started to place links to only its own Wireless Value-added
Services (WVAS) offerings on the embedded menus of mobile handsets with customized
software for China Mobile users. In the past, such embedded menus on handsets
featured links to all popular products on China Mobile’s networks, including the products
of the Group. The Group believes the above changes by China Mobile could have an
adverse impact on the Group’s WVAS business, in particular the WAP business.

In view of the adverse impact and the uncertainties in future operating environment, the
Group tested the carrying value of goodwill in relation to the wireless internet business
for impairment as at 30 June 2007 and recorded an impairment charge of
HK$53,283,000 for the six-month period ended 30 June 2007. The valuation was arrived
at after using a combination of a market value approach (with comparisons to selected
publicly traded companies operating in the same industry) and an income approach
(discounted cash flows). Any continued adverse changes in mobile operators’ policies or
in the competitive environment could lead to additional impairment charges and the
Group is continually monitoring such changes to assess their impact on the Group.

4 Net gain on deemed disposals of interests in subsidiaries

On 28 March 2006, TOM Outdoor Media Group Limited (“TOM OMG”), a then wholly-
owned subsidiary of the Company, issued a total of 35 new shares to an independent
third party at a total consideration of US$26 million (approximately HK$202.8 million). As
a result of this share issuance, the Group’s shareholding in TOM OMG has been diluted
to 65%, and resulted in a gain on deemed disposal of HK$24,601,000.

- 15 -
5 Operating profit

Operating profit is stated after charging / crediting the following:

Unaudited
Six months ended 30 June
2007 2006

HK$'000 HK$'000
Charging:

Continuing operations

Depreciation of fixed assets

60,012

57,818

Amortisation of other non-current assets 24,317 27,729
Amortisation of other non-current assets included in
interests in associated companies

2,448

2,449

══════ ══════
Discontinued operations

Depreciation of fixed assets

48

═════

291

══════
Crediting:

Continuing operations

Gain on disposal of a subsidiary (Note)

-


14,698

Gain on disposal of available-for-sale financial assets
(Note)

5,193

-
Dividend income from available-for-sales financial
assets

-

543

══════ ══════
Discontinued operations

Dividend income from available-for-sales financial
assets

-

═════

377

══════

Note: On 20 March 2006, the Group disposed of its 50% equity interests in Yazhou
Zhoukan Holdings Limited, a then subsidiary of the Company, to Ming Pao
Enterprise Corporation Limited (“Ming Pao”), a listed company on the Main Board
of The Stock Exchange of Hong Kong Limited, for a consideration of 12,000,000
ordinary shares of Ming Pao (“Ming Pao Shares”) which was valued at a total of
approximately HK$16 million. A gain on this disposal of HK$14,698,000 was
recorded by the Group. During the period ended June 2007, all Ming Pao Shares
were sold which resulted in a profit of approximately HK$5,193,000.

- 16 -
6 Finance costs

All finance costs were incurred in continuing operations and are shown as follows:-

Unaudited
Six months ended 30 June
2007 2006

HK$’000 HK$’000

Interest and borrowing costs on bank loans 63,489 39,368
Interest and borrowing costs on convertible bonds 5,001 27,041
Interest on other loans, wholly repayable within five
years 302 409
────── ──────
68,792 66,818

══════ ══════

7 Taxation

Hong Kong profits tax has been provided at the rate of 17.5% (2006: 17.5%) on the
estimated assessable profits for the period. Taxation outside Hong Kong has been
provided for at the applicable rates on the estimated assessable profits less available tax
losses.

The amount of taxation charged in the consolidated profit and loss account represents:

Unaudited
Six months ended 30 June
2007 2006

HK$'000 HK$'000
Continuing operations

Overseas taxation 25,660 20,816
Over-provision in prior years (2,139) -
Deferred taxation 891 (274)
────── ──────
24,412 20,542

══════ ══════
Discontinued operations

Over-provision in prior years - (132)
══════ ══════

For the periods ended 30 June 2007 and 2006, no taxation has been included in the
consolidated profit and loss account as share of profits of associated companies.

- 17 -

8 Discontinued operations

Since 1 January 2007, the Group has ceased to participate in any sports related events
and is in the process of selling the core assets in relation to the China Open tennis
tournament event in Beijing (“China Open”). On 18 March 2007, pursuant to a series of
agreements with an independent third party, the Group agreed to dispose of its 49%
equity interest in the Beijing China Open Promotion Company Limited (“COL”), and
100% equity interests in Champion Will International Limited (“Champion Will”) and
Swidon Enterprises Limited (“Swidon”) for a total consideration of US$15.5 million
(approximately HK$121 million). COL is mainly engaged in the organisation of the China
Open, while Champion Will and Swidon are the holders of the ATP and WTA licences,
respectively. The completion of the disposal is subject to, among others, the approval of
the relevant authorities.

In addition, 廣東羊城廣告有限公司 and 廣東羊城報業體育發展有限公司 (collectively
“Yangcheng”) which were mainly involved in sports events organisation in prior years,
also commenced to focus their operations in non sports-related activities since 1 January
2007. As a result, the results and assets and liabilities of Yangcheng have been included
in the Television and Entertainment Group in the current period.

Loss for the period from discontinued operations is analysed as follows:

Unaudited
Six months ended 30 June
2007 2006

HK$'000 HK$'000

Turnover - 48,857
Interest income 76 233
Operating expenses (1,856) (63,160)
────── ──────
Operating loss
Taxation

Loss for the period
(1,780)
-
──────
(1,780)
(14,070)
132
──────
(13,938)
══════ ══════

Attributable to :

Minority interest - (545)
══════ ══════
Equity holders of the Company (1,780)
══════
(13,393)
══════

- 18 -

9 Dividend

No dividend has been paid or declared by the Company for the periods ended 30 June
2007 and 2006.

10 (Loss)/Earnings per share

Basic

Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to
equity holders of the Company by the weighted average number of ordinary shares in
issue during the period, excluding own shares held.
Unaudited
Six months ended 30 June
2007 2006

(Loss)/ Earnings from continuing operations
(Loss) / profit attributable to equity holders of the Company
(HK$'000) (70,566) 104,655
═══════════ ═══════════
Weighted average number of ordinary shares in issue 3,893,270,558 3,893,270,558
═══════════ ═══════════
Loss from discontinued operations
Net loss attributable to equity holders of the Company
(HK$'000) (1,780) (13,393)
═══════════ ═══════════
Continuing operations
Basic (loss)/earnings per share (HK cents per share) (1.81) 2.69
═══════════ ═══════════
Discontinued operations
Basic loss per share (HK cents per share) (0.05) (0.34)
═══════════ ═══════════
Diluted

No diluted (loss)/earnings per share is presented for the six months ended 30 June 2007
and 2006 as the exercise prices of the outstanding share options granted by the
Company were higher than the average market price of the shares of the Company
during the respective periods, and the conversion of the convertible bonds would have
an anti-dilutive effect during these periods.

- 19 -

11 Trade and other receivables

Unaudited
30 June
2007

Audited
31 December
2006

HK$'000 HK$'000

Trade receivables, net of provision 567,480 555,227
Prepayments, deposits and other receivables 489,099 432,906
──────── ────────
1,056,579 988,133

════════ ════════
The ageing analysis of the Group’s trade receivables is as follows:

Unaudited
30 June
2007

Audited
31 December
2006

HK$'000 HK$'000

1-30 days 206,643 204,232
31-60 days 133,916 133,722
61-90 days 86,037 74,707
Over 90 days 220,264 222,204
──────── ────────
646,860 634,865

Less: Provision for impairment (79,380) (79,638)
──────── ────────
567,480 555,227

════════ ════════

(a) The carrying values of trade and other receivables approximate their fair values.

(b) Majority of the Group’s turnover is on open account terms and in accordance with terms
specified in the contracts governing the relevant transactions.

12 Trade and other payables

Unaudited
30 June
2007

Audited
31 December
2006

HK$'000 HK$'000

Trade payables 222,662 271,402
Other payables and accruals 581,321 545,287
──────── ────────
803,983 816,689

════════ ════════

- 20 -
The ageing analysis of the Group’s trade payables at end of the period is as follows:

Unaudited
30 June
2007

Audited
31 December
2006

HK$'000 HK$'000

1-30 days 85,831 123,629
31-60 days 38,042 47,324
61-90 days 20,461 27,737
Over 90 days 78,328 72,712
──────── ────────
222,662 271,402

════════ ════════

The carrying values of trade and other payables approximate their fair values.

13 Other non-current liabilities

Unaudited
30 June
2007

Audited
31 December
2006

HK$'000 HK$'000

Non-current portion of long-term bank loans 1,388,310 1,733,436
Convertible bonds 195,522 191,023
Pension obligations 28,635 28,827
──────── ────────
1,612,467 1,953,286

════════ ════════

14 Reserves





Share
premium
account
Capital
reserve
Capital
redemption
reserve
General
reserve
Available-
for-sale
financial
assets
reserve
Exchange
difference
Convertible
bonds
reserve
Accumulated
losses Total
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
At 1 January 2006 3,625,981 96,567 776 99,839 (50,195) 4,462 174,327 (1,445,055) 2,506,702
Investment revaluation deficit

- - - - (16,097) - - - (16,097)
Exchange difference - - - 182 (16) 42,105 - - 42,271
Profit for the period - - - - - - - 91,262 91,262
Employee share option
schemes - value of employee
services

- 8,972 - - - - - - 8,972

──────── ─────── ─────── ─────── ────── ────── ─────── ───────── ────────
At 30 June 2006

3,625,981 105,539 776 100,021 (66,308) 46,567 174,327 (1,353,793) 2,633,110
════════ ═══════ ═══════ ═══════ ══════ ══════ ═══════ ═════════ ════════

At 1 January 2007 3,625,981 114,508 776 111,285 (43,823) 84,077 30,879 (1,379,010) 2,544,673
Investment revaluation surplus - - - - 8,485 - - - 8,485
Reserve realised upon disposal

- - - - (756) - - - (756)
Exchange difference - - - (32) - 62,197 - - 62,165
Loss for the period - - - - - - - (72,346) (72,346)
Employee share option
schemes - value of employee
services

- 5,209 - - - - - - 5,209

──────── ─────── ─────── ─────── ────── ────── ─────── ───────── ────────
At 30 June 2007

3,625,981 119,717 776 111,253 (36,094) 146,274 30,879 (1,451,356) 2,547,430
════════ ═══════ ═══════ ═══════ ══════ ══════ ═══════ ═════════ ════════
- 21 -

- 22 -
CODE ON CORPORATE GOVERNANCE PRACTICES

The Company has complied with the code provisions set out in the Code on Corporate
Governance Practices contained in Appendix 14 to the Listing Rules during 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 (“Model Code”) contained in Appendix 10 to the Listing Rules. Having made specific
enquiry of the Directors, all the Directors confirmed that they have complied with the required
standard as set out in the Model Code during the six months ended 30 June 2007.

PURCHASE, SALE OR REDEMPTION OF SECURITIES

During the six months ended 30 June 2007, neither the Company nor any of its subsidiaries
purchased, sold or redeemed any of the Company’s listed shares.

GENERAL INFORMATION

The consolidated financial statements of the Group for the six months ended 30 June 2007 have
been reviewed by the audit committee of the Company and, 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, by the Company’s auditors, PricewaterhouseCoopers. The auditors’ review report
will be included in the Interim Report to the shareholders of the Company.

As at the date hereof, the directors of the Company are:

Executive Directors: Non-executive Directors:
Ms. Tommei Tong Mr. Frank Sixt (Chairman)
Ms. Angela Mak Ms. Debbie Chang
Mrs. Susan Chow
Independent non-executive Directors: Mr. Edmond Ip
Mr. Henry Cheong Mrs. Angelina Lee
Ms. Anna Wu Mr. Wang Lei Lei
Mr. James Sha

for identification purpose