C&T Announces 2013 Full-Year Results

March 24, 2014

Hong Kong, March 21, 2014 – Leading locally listed information technology ("IT") software and services company, Computer And Technologies Holdings Limited (C&T Holdings or the "Group", Stock Code: SEHK 00046) announced today its audited results for the year ended December 31, 2013.

During the reporting period, the Group's consolidated net profit attributable to shareholders increased by 2.4% to HK$48.1 million (2012: HK$47.0 million). The basic earnings per share, after taken into account of the repurchase of 1.1 million shares during the year, was 20.03 HK cents (2012: 19.50 HK cents) or an increase of 2.7% compared with last year.

The gross profit of the Group increased to HK$101.1 million (2012: HK$93.6 million) despite the turnover dropped by 9.5% to HK$187.1 million (2012: HK$206.7 million). The significant improvement in profit margin was resulted from the combination of increased contributions from the Group's software products and related services as well as decreased sales of low margin third parties hardware products. The Group’s effort engaged in the business transformation to software and solution services oriented businesses has achieved an initial success. Despite the absence of material revaluation gain on investment properties (HK$16.6 million in 2012 compared with HK$2.6 million in 2013), the Group still managed to improve its net profit for the year.

The Group generated HK$42.8 million cash inflow from its operating activities and continued to maintain robust liquidity position with more than HK$300 million cash on hand as at the end of 2013, having accounted for the payments of HK$2 million for shares repurchased and payments of HK$36.0 million in aggregate for 2012 final and special dividends as well as 2013 interim dividend. In view of the sustained healthy financial position, the Board recommended the distribution of a final dividend of 7 HK cents and special dividend of 2 HK cents (2012: final dividend of 6 HK cents and special dividend of 3 HK cents), the total dividends per share for 2013 amounted to 15 HK cents, which is same as previous year (2012: 15 HK cents).

Looking forward, Mr. Ng Cheung Shing, Chairman of C&T Holdings commented that "The global economy is now on track for a slow recovery. The economic outlook of Mainland China and Hong Kong is anticipated to grow at a steady rate in 2014. Nonetheless, the management takes an optimistic yet cautious view and the Group will continue to safeguard its financial strength, manage risks cautiously and set prudent yet flexible business strategies to cope with the future challenges. We believe that the enhanced customer base and enriched software products offering couple with the Group’s strong capability in IT technology application and solution implementation will continue to provide the Group with competitive advantage for long term sustainable growth. Leveraging on the solid financial position, the Group will be enabled to pursue new acquisition opportunities to enlarge its software product portfolio and market foothold."

Lastly, on behalf of the Board and the Management, Mr. Ng expressed sincere thanks to all employees, shareholders, customers and business partners for their supports to the Group during the reporting period.

---End---

More information is available at the 2013 results announcement published by the Group on March 21, 2014.

For enquiries, please contact:
Miss Emma Wong
Tel : (852) 2217 1511
Fax : (852) 2503 8400
Email : [email protected]