Sino I Technology : ANNOUNCEMENT OF FINAL RESULTS ...

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ANNOUNCEMENT OF FINAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2018

RESULTS

The board of directors (the "Board") of Sino-i Technology Limited (the "Company") hereby announces the audited consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2018, together with the comparative figures for the year ended 31 December 2017 as follows:

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2018

			2018		2017
	Notes		HK$'000		HK$'000
Revenue	4(a)		1,012,450		833,245
Cost of sales and services provided			(158,095)		(154,847)
Gross profit			854,355		678,398
Other operating income	4(b)		157,866		167,707
Selling and marketing expenses			(729,390)		(564,744)
Administrative expenses			(109,124)		(95,292)
Other operating expenses			(176,484)		(151,884)
Finance costs	6		(2,127)		(8,150)
Share of results of associates			(6,815)		(1,040)
Loss on deemed disposal of an associate			-		(162)
Gain on disposal of subsidiaries	15		405,865		-
Profit before income tax	7		394,146		24,833
Income tax expense	8		(18,334)		(14,811)
Profit for the year			375,812		10,022
Profit for the year attributable to:
			377,452
Owners of the Company					11,385
Non-controlling interests			(1,640)		(1,363)
			375,812		10,022
Earnings per share attributable to owners			HK Cent		HK Cent
of the Company for the year			1.90
- Basic	10				0.06
- Diluted			1.89		0.06
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2018

			2018		2017
		Note	HK$'000		HK$'000
Profit for the year			375,812		10,022
Other comprehensive income
Item that will not be reclassified to profit or loss:
Fair value change on financial assets at fair value
through other comprehensive income			(114)		-
Items that may be reclassified subsequently to
	profit or loss:
Exchange differences on translation of
financial statements of foreign operations			(5,954)		8,430
Exchange differences on translation of investment
	in associates		(689)		28
Exchange differences reclassified on deemed disposal
of an associate, net of tax			-		359
Release of reserves upon disposal of subsidiaries		15	(72,909)		-
			(79,666)		8,817
Total comprehensive income for the year			296,146		18,839
Total comprehensive income attributable to:
Owners of the Company			297,926		19,517
Non-controlling interests			(1,780)		(678)
			296,146		18,839

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2018

		2018	2017
	Notes	HK$'000			HK$'000
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment		52,139	612,496
Prepaid land lease payments under operating leases		11,148	23,903
Available-for-sale financial assets		-	444
Financial assets at fair value through
other comprehensive income		324			-
Interests in associates		35,002	41,128
Goodwill		76,883	83,320
Other intangible assets		92,189	97,895
Deposits and other receivables		-	709
Loan to immediate holding company		356,995	1,046,644
		624,680	1,906,539
Current assets
Trade receivables	11	24,197	9,585
Deposits, prepayments and other receivables		98,689	182,204
Financial assets at fair value through profit or loss		47,765	103,500
Loan to immediate holding company		1,127,112			-
Cash and cash equivalents		170,417	304,874
		1,468,180	600,163
Current liabilities
Trade payables	12	54,350	29,354
Other payables and accruals		48,753	93,987
Receipt in advance and deferred revenue		-	220,067
Contract liabilities		211,128			-
Provision for tax		158,591	145,957
Amount due to a director		532			-
Amount due to immediate holding company		33,544	17,298
Amounts due to associates		5,534	5,492
Bank borrowings, secured		-	163,344
Other employee benefits		16,923			-
Finance lease liabilities		2	57
		529,357	675,556
Net current assets/(liabilities)		938,823	(75,393)
Total assets less current liabilities		1,563,503	1,831,146

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued)

As at 31 December 2018

		2018		2017
	Note	HK$'000		HK$'000
Non-current liabilities
Other employee benefits		27,260		2,064
Finance lease liabilities		-		14
Deferred tax liabilities		4,475		5,680
		31,735		7,758
Net assets		1,531,768		1,823,388
EQUITY
Share capital	13	240,597		240,597
Reserves		1,298,511		1,565,385
Equity attributable to the Company's owners		1,539,108		1,805,982
Non-controlling interests		(7,340)		17,406
Total equity		1,531,768		1,823,388

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NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2018

1.GENERAL INFORMATION

The Company is a limited liability company incorporated and domiciled in Hong Kong. The address of its registered office and its principal place of business is located at 12/F., The Octagon, No. 6 Sha Tsui Road, Tsuen Wan, New Territories, Hong Kong. The Company's shares are listed on The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange").

The immediate holding company of the Company is Nan Hai Corporation Limited, a company incorporated and domiciled in Bermuda and its shares are listed on the Hong Kong Stock Exchange. The directors consider the ultimate holding company of the Company is Dadi Holdings Limited, a limited liability company incorporated in Hong Kong.

The Group is principally engaged in the provision of enterprise cloud services.

2.BASIS OF PREPARATION

The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") which collective term includes all applicable individual HKFRSs, Hong Kong Accounting Standards ("HKASs") and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and the Hong Kong Companies Ordinance (the "Companies Ordinance"). In addition, the financial statements include the applicable disclosures required by the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange (the "Listing Rules").

The financial information relating to the year ended 31 December 2018 included in this preliminary announcement of annual results does not constitute the Company's statutory annual consolidated financial statements for that year but is derived from those financial statements. Further information relating to these statutory financial statements required to be disclosed in accordance with section 436 of the Companies Ordinance is as follows:

The Company will deliver the financial statements for the year ended 31 December 2018 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Companies Ordinance.

The Company's auditor has reported on those financial statements. The auditor's report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under sections 406(2), 407(2) or (3) of the Companies Ordinance.

The financial statements have been prepared on the historical cost basis except for certain financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income which are measured at fair values.

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