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ZTC Telecoms plc (ZTC)

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Thursday 22 March, 2007

ZTC Telecoms plc

Interim Results

ZTC Telecommunications plc
22 March 2007



                           ZTC TELECOMMUNICATIONS PLC
                      (Formerly 'Cassian Investments plc')

                                INTERIM RESULTS


          Chairman's statement for the 6 months ended 31 December 2006


These interim accounts for ZTC Telecommunications plc ('ZTC'' or the 'Company')
relate to the business activities of Cassian Investments plc for the 6 months
ended 31 December 2006. The Company made an operating loss of £199,353 and had
net assets of £956,749 at the period end.


On 13 February 2007, ZTC entered into a conditional agreement to acquire the
entire issued capital of Praise Ease Ltd ('Praise Ease'). Praise Ease is the
Hong Kong based holding company for Shenzhen Zhong Tian Communication Equipments
Co Ltd ('Zhong Tian'), a licensed mobile phone manufacturer based in Shenzhen,
PRC, which markets its own handsets under the 'ZTC' brand. The Company agreed to
issue 70 million new ordinary shares, at 20p, as initial consideration for the
purchase of Praise Ease. A deferred consideration of up to 15 million new
ordinary shares will be issued subject to the profits made during the twelve
months to 30 June 2007.


The acquisition, amongst other resolutions, was approved as set out in the
document sent to shareholders on 13 February 2007, and successfully completed
upon admission to AIM on 21 March 2007 ('Admission'). At Admission, the Company
had 93,682,516 ordinary shares of 10p each and approximately £4m in cash before
expenses related to the Admission.


Upon Admission, the business of the Company effectively became that of Praise
Ease and at which time I was appointed as Non-Executive Chairman. In the year
ended 30 June 2006, Praise Ease, under its ZTC brand, assembled and sold 748,930
handsets in the PRC. In the same period, revenue grew to RMB194.7 million (2005:
RMB13.5 million), whilst profit after tax increased to RMB26 million (2005: loss
RMB0.8 million).



We look forward to reporting on the Company and its promising new business
opportunity in the months ahead.



Frank Lewis
Non-Executive Chairman


For further information, please contact:


ZTC                                                  +61 406 181 975
Mark Syropoulo, Finance Director

Corporate Synergy                                    +44 20 7448 4400
Romil Patel / Shane Gallwey

Conduit PR                                          +44 20 7429 6609
Christian Taylor-Wilkinson or Jos Simson



PROFIT AND LOSS ACCOUNT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006


                                                                        Six months ended  Year ended
                                                                        31 December 2006 30 June 2006
                                                                 Note           £                 £
Administrative expenses                                                     (226,743)         (91,570)

Other operating income                                                          -              50,000

OPERATING LOSS                                                              (226,743)         (41,570)

Interest receivable                                                           27,390           50,663
(LOSS) / PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                      (199,353)           9,093
                                                                                  

Taxation on (loss) / profit from ordinary activities                               -              -
(LOSS) / PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                       (199,353)           9,093

(Loss) / earnings per ordinary share (pence)                     2
Basic                                                                         (0.088)           0.004
                                                                              
Diluted                                                                       (0.053)           0.002



BALANCE SHEET
AT 31 DECEMBER 2006


                                                                        Six months ended   Year ended
                                                                        31 December 2006  30 June 2006
                                                                                 £                  £
CURRENT ASSETS
Debtors                                                                       3,250            53,250
                                                                            1,104,890        1,137,315
Cash at bank and in hand
                                                                            1,108,140        1,190,565
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR                              (151,391)         (34,463)

NET ASSETS                                                                   956,749         1,156,102

CAPITAL AND RESERVES
Share capital                                                               1,264,575        1,264,575
Share premium                                                                150,969           150,969
                                                                            
Profit and loss account                                                     (458,795)         (259,442) 


SHAREHOLDERS' FUNDS                                                          956,749          1,156,102



CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006

                                                                            Six months    Year ended
                                                                            ended 31         30 June
                                                                            December 2006      2006
RECONCILIATION OF OPERATING PROFIT TO NET CASH OUTFLOW                                  £         £
Operating loss                                                                (226,743)       (41,570)
Decrease / (Increase) in debtors                                                50,000        (51,481)
Increase / (decrease) in creditors                                             116,928        (62,437)
NET CASH OUTFLOW FROM OPERATING ACTIVITIES                                     (59,815)      (155,488)


CASH FLOW STATEMENT                               Six months   Six months   Year ended    Year ended
                                                  ended 31     ended 31
                                                  December     December     30 June       30 June
                                                  2006         2006            2006          2006
                                                  £            £            £             £
NET CASH OUTFLOW FROM OPERATING ACTIVITIES                     (59,815)                   (155,488)
Returns on investments and servicing of finance
Interest received                                 27,390                    50,663

NET CASH INFLOW FROM RETURNS ON INVESTMENTS AND                27,390                       50,663
SERVICING OF FINANCE

CASH OUTFLOW BEFORE MANAGEMENT OF LIQUID                       (32,425)                   (104,825)
RESOURCES AND FINANCING

MANAGEMENT OF LIQUID RESOURCES
Decrease in short term deposits                        -                   991,754

Cash inflow from management of liquid resources                      -                     991,754

FINANCING
Issue of shares                                                      -                     250,000

(DECREASE) / INCREASE IN CASH IN THE YEAR                      (32,425)                   1,136,929


                                                                              Six months ended Year ended
                                                                              31 December 2006    30 June
                                                                                                     2006
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS                               £                £
(Decrease) / increase in cash in the year                                         (32,425)        1,136,929
Cash inflow from movement in liquid resources                                        -            (991,754)
Movement in net funds in the year                                                 (32,425)         145,175
                                                                                 

Net funds at start of year                                                       1,137,315         992,140
                                                                              
Net funds at end of year                                                         1,104,890        1,137,315




NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 2006


1.         BASIS OF PREPARATION

The interim financial information for the six months ended 31 December 2006 does
not constitute statutory accounts, and has been neither audited nor reviewed by
the Company's auditors.



The interim financial information for the six months ended 31 December 2006 has
been prepared on a basis consistent with the statutory accounts for the year
ended 30 June 2006.

Results for the year ended 30 June 2006 have been extracted from the statutory
accounts which were reported on by the auditors, without qualification or
statement under Section 237(2) or (3) of the Companies Act 1985 and have been
delivered to the Registrar of Companies.



2.         EARNINGS PER SHARE

The calculation of the basic (loss) / earnings per ordinary share is based on
the (loss) / profit on ordinary activities after tax and on the weighted average
number of ordinary shares in issue during the period. The calculation of diluted
(loss) / earnings per ordinary share is based on the basic (loss) / earnings per
ordinary share adjusted to allow for the issue of shares on the assumed
conversion of all dilutive options and warrants.



Reconciliation of the (loss) / profit and weighted average number of shares used
in the calculations are set out in the table below.


                             Six months ended 31 December 2006           Year ended 30 June 2006
                                   Weighted average                           Weighted average      
                                   number of shares        Loss               number of shares     Earnings
                              Loss                    per share      Earnings                      per share
                                 £                      (pence)             £                        (pence)

Basic earnings per       (199,353)      227,415,000     (0.088)         9,093      226,832,808         0.004
ordinary share

Dilutive effect of               -      146,693,750                         -      146,693,750
securities -
warrants and further
subscription rights

Dilutive earnings per    (199,353)      374,108,750     (0.053)         9,093      373,526,558         0.002
ordinary share





3.         Copies of this interim statement will be available on request from
the Company's registered office at 56 Queen Street, London W1G 8LA.




                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                             

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