Vodatel : BUSINESS AND FINANCIAL HIGHLIGHTS FOR THE THREE-MONTH PERIOD AND NINE-MONTH PERIOD (in PDF)

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VODATEL NETWORKS HOLDINGS LIMITED

愛 達 利 網 絡 控 股 有 限 公 司 *

(Incorporated in Bermuda with limited liability)

Stock Code: 8033

BUSINESS AND FINANCIAL HIGHLIGHTS FOR THE THREE-MONTH PERIOD AND NINE-MONTH PERIOD

Supported by revenue generated from the surveillance project and data network infrastructure project from a local gaming operator at its new establishment in Cotai and various contracts from the Government of Macao, the Group registered revenue of HK$103,316,000 for the Three-Month Period, or an increase of 35.29% over the same corresponding period of 2016

With product mix skewed towards supply of equipment instead of installation services, gross profit margin stood at 21.34%, or gross profit for the Three-Month Period to almost levelled the same quarter of 2016 at approximately HK$22,000,000

Net loss of for the Three-Month Period stood at HK$1,554,000, with net loss for the Nine- Month Period narrowed from HK$20,837,000 to HK$13,105,000

Strong orders from the Government of Macao with an award letter from the Transport Bureau for the project in the amount of over HK$42,000,000 that involved the supply and installation of an integrated detection system at various road junctions

Solid recovery from its operations in Mainland China with total contracts secured during the Nine-Month Period amounted to HK$16,000,000, representing 2.5 times of total contracts secured during full year 2016

No further update over the proposed disposal of the equity participation in TTSA by Oi

Cash and cash equivalents and yield-enhanced financial instruments as at 30th September 2017 totalled approximately HK$108,709,000

The Directors do not recommend payment of an interim dividend for the Nine-Month Period

THIRD QUARTER RESULTS

The Board is pleased to present the unaudited consolidated results of the Group for the Three-Month Period and Nine-Month Period as follows:

Unaudited
Three months	Nine months
ended	ended
Three-Month	30th September	Nine-Month	30th September
Note	Period	2016	Period	2016
HK$'000	HK$'000	HK$'000	HK$'000
Revenue	103,316	76,366	252,620	202,286
Cost of sales	(81,273)	(54,438)	(195,901)	(156,390)
Gross profit	22,043	21,928	56,719	45,896
Other gains	298	26	714	473
Selling, marketing costs and
administrative expenses	(24,319)	(23,901)	(72,093)	(68,758)
Operating loss	(1,978)	(1,947)	(14,660)	(22,389)
Finance income	421	704	1,552	2,215
Finance costs	(1)	(28)	(1)	(33)
Finance income - net	420	676	1,551	2,182
Share of profit of an associate	4	-	4	-
Loss before income tax	(1,554)	(1,271)	(13,105)	(20,207)
Income tax expense	1	-	(5)	-	(630)
Loss for the period	(1,554)	(1,276)	(13,105)	(20,837)
Loss attributable to:
- Owners of the Company	(1,678)	(1,020)	(12,213)	(18,309)
- Non-controlling interests	124	(256)	(892)	(2,528)
(1,554)	(1,276)	(13,105)	(20,837)
Loss per Share
attributable to owners of
the Company (expressed
in HK cents per Share)
Basic and diluted loss
per Share	2	(0.27)	(0.17)	(1.99)	(2.98)
Dividends	3	-	-	-	-

Notes to the condensed consolidated income statement

1. Income tax expense

   Hong Kong profits tax was provided at the rate of 16.5% (nine months ended 30th September 2016: 16.5%) on the estimated assessable profit for the period. Taxation on non-Hong Kong profits was calculated on the estimated assessable profit for the period at the rates of taxation prevailing in the regions in which the Group operated.

2. Loss per Share
3. Basic

   Basic loss per Share was calculated by dividing the loss attributable to owners of the Company by the weighted average number of Shares in issue during the Nine-Month Period.

   Nine
   months ended
   Nine-Month	30th September
   Period	2016
   HK$'000	HK$'000
   Loss attributable to owners of the Company	(12,213)	(18,309)
   Weighted average number of Shares in issue (thousands)	614,385	613,819

4. Diluted

   Diluted loss per Share for the Nine-Month Period was the same as the basic loss per Share since the exercise of the Options would have an anti-dilutive effect on the loss per Share. No diluted loss per Share for the nine months ended 30th September 2016 was presented as there was no outstanding Options as at 30th September 2016.

5. Dividends

   The Directors do not recommend payment of an interim dividend for the Nine-Month Period (nine months ended 30th September 2016: nil).

6. Reserves

Retained
Share-based	Capital	earnings/
Contributed	payment	redemption	AFS	Merger	Statutory	(accumulated
surplus	reserve	reserve	investments	reserve	reserve	Translation	Total	losses)
HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
As at 1st January 2016	97,676	4,178	702	43,481	35,549	49	3,033	184,668	18,191
AFS financial assets - revaluation gain	-	-	-	756	-	-	-	756	-
Currency translation differences	-	-	-	-	-	-	(51)	(51)	-
Dividend relating to 2015	-	-	-	-	-	-	-	-	(6,138)
Loss for the nine months ended 30th September 2016	-	-	-	-	-	-	-	-	(18,309)
As at 30th September 2016	97,676	4,178	702	44,237	35,549	49	2,982	185,373	(6,256)
As at 1st January 2017	97,676	7,442	702	12,170	35,549	49	2,913	156,501	21,042
AFS financial assets - revaluation loss	-	-	-	(37)	-	-	-	(37)	-
Currency translation differences	-	-	-	-	-	-	(46)	(46)	-
Dividend relating to 2016	-	-	-	-	-	-	-	-	(6,144)
Loss for the Nine-Month Period	-	-	-	-	-	-	-	-	(12,213)
As at 30th September 2017	97,676	7,442	702	12,133	35,549	49	2,867	156,418	2,685