Vodatel : BUSINESS AND FINANCIAL HIGHLIGHTS FOR THE THREE-MONTH PERIOD AND SIX-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 SIX-MONTH PERIOD

• Supported by a stronger operating performance during the Three-Month Period, the Group registered revenue of HK$111,470,000, representing an increase of HK$15,806,000 or 16.52% over the corresponding three months of 2018. Total revenue for the Six-Month Period reached HK$188,994,000
• With a more balanced product mix comprising of sale of equipment and provision of installation and maintenance support services, the latter of which carries higher gross margin, the Group generated gross profit of HK$31,298,000, which translated to gross profit margin of 28.08%. Overall gross profit margin for the Six-Month Period improved to 22.87% as a result
• The Group reported net profit of HK$4,968,000 for the Three-Month Period with net loss for the Six-Month Period narrowed to HK$7,045,000 from the initial first quarter of HK$12,013,000
• With key wins, order book reached over HK$350,000,000 as at 30th June 2019, or over 70% if referencing to the average annual worth of contracts signed by the Group during the past four years
• No update over the proposed disposal of the equity participation in TTSA by Oi
• Total net cash balances and yield-enhanced financial instruments increased from HK$133,562,000 as at 31st December 2018 to HK$160,919,000 as at 30th June 2019, representing approximately 41.52% of total assets
• The Directors do not recommend payment of interim dividend for the Six-Month Period

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INTERIM RESULTS

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

Condensed consolidated income statement

					Unaudited
					Three months				Six months
			Three-Month	ended	Six-Month	ended
			30th June	30th June
			Period	2018		Period	2018
	Notes		HK$'000	HK$'000	HK$'000	HK$'000
Revenue	1	111,470	95,664		188,994	179,512
Cost of sales of goods		(66,244)	(57,677)		(118,757)	(107,691)
Cost of providing services		(13,928)	(13,841)		(27,019)	(27,616)
Gross profit		31,298		24,146				43,218	44,205
Selling, marketing costs and		(28,036)					(53,318)
administrative expenses		(25,571)		(51,254)
Other gains		569		354				806	788
Operating profit/(loss)	2(a)	3,831		(1,071)		(9,294)	(6,261)
Finance income		1,170		631				2,309	1,205
Finance costs		(28)	(25)		(55)	(25)
Finance income - net		1,142		606				2,254	1,180
Profit/(loss) before income tax		4,973		(465)		(7,040)	(5,081)
Income tax expense	2(b)	(5)	(106)		(5)	(106)
Profit/(loss) for the quarter/half-year		4,968		(571)		(7,045)	(5,187)
Profit/(loss) is attributable to:
	5,334						(5,982)
Owners of the Company			(81)		(4,522)
Non-controlling interests		(366)	(490)		(1,063)	(665)
		4,968		(571)		(7,045)	(5,187)

Earnings/(loss) per Share for profit/(loss) attributable to the ordinary equity holders of the Company (expressed in HK cent per Share)

Basic and diluted earnings/(loss) per Share	11	0.87	(0.01)	(0.97)	(0.74)

The above condensed consolidated income statement should be read in conjunction with the accompanying notes.

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Condensed consolidated statement of comprehensive income
		Unaudited
					Six months
		Six-Month	ended 30th
		Period	June 2018
		HK$' 000	HK$' 000
Loss for the half-year	(7,045)	(5,187)
OCI/(other comprehensive expense):
Items that may be reclassified to profit or loss
Changes in the fair value of debt instruments at FVOCI	3,091		(1,661)
Exchange differences on translation of operations in Mainland China	(105)	44
OCI/(other comprehensive expense) for the half-year, net of tax	2,986		(1,617)
Total comprehensive expense for the half-year	(4,059)	(6,804)
Total comprehensive expense for the half-year is attributable to:
Owners of the Company	(2,996)	(6,139)
Non-controlling interests	(1,063)	(665)
	(4,059)	(6,804)

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Condensed consolidated balance sheet
		Unaudited		Audited
		30th June		31st December
		2019	2018
	Notes	HK$' 000		HK$' 000
ASSETS
Non-current assets		4,527
Property, plant and equipment	4	3,369
Right-of-use assets		1,936		-
Interest in an associate		818	818
Financial assets at FVOCI	7(a)	69,703	43,813
Total non-current assets		76,984	48,000
Current assets
	52,906
Inventories		18,120
Contract assets		30,292	21,897
Trade receivables	7(d)	61,562	107,120
Other receivables, deposits and prepayments		73,178	54,517
Financial assets at FVOCI	7(a)	-	3,917
Financial assets at amortised cost		10,237	7,400
Cash and cash equivalents (excluding bank overdrafts)		48,864	79,888
Restricted cash		33,569		-
Total current assets		310,608	292,859
Total assets		387,592	340,859
LIABILITIES
Non-current liabilities		516		-
Lease liabilities
Current liabilities
	84,226
Trade and bills payables	7(e)	59,608
Other payables and accruals		30,801	22,923
Contract liabilities		59,433	43,022
Dividend payable		3,072		-
Current tax liabilities		9,693	9,704
Bank overdrafts		22		-
Lease liabilities		1,358		-
Total current liabilities		188,605	135,257
Total liabilities		189,121	135,257
Net assets		198,471	205,602

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	Unaudited	Audited
	30th June	31st December
	2019		2018
	HK$' 000	HK$' 000
EQUITY
Share capital and share premium	61,570		61,570
Other reserves	145,327		142,341
(Accumulated losses)/retained earnings	-
- Proposed final dividend	3,072
- Others	(5,525)	457
Capital and reserves attributable to the
owners of the Company	201,372		207,440
Non-controlling interests	(2,901)	(1,838)
Total equity	198,471		205,602

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