C&T Announces 2013 Interim Results

August 13, 2013

Hong Kong, August 12, 2013 - Leading locally listed information technology ("IT") services company, Computer And Technologies Holdings Limited (C&T Holdings or the "Group", Stock Code: SEHK 00046), announced today its unaudited interim results for the 6-month period ended June 30, 2013.

The Group’s consolidated net profit attributable to shareholders for the reporting period increased by 2.8% to HK$21.9 million (2012: HK$21.3 million). The basic earnings per share, after taken into account of the repurchase of 1.1 million shares during the period, was 9.10 HK cents (2012: 8.83 HK cents) or an increase of 3.1% compared with the same period last year.

During the period under review, the gross profit of the Group rose by HK$5.6 million or 12.4% to HK$51.1 million despite the turnover dropped by 18.3% to HK$90.2 million. As mentioned in 2012 results announcement, the decrease in turnover is one of the foreseen short-term outcomes of the business transformation as the Group in gradually reducing the sales of low profit margin third parties hardware products. As a result of this transformation, the Group’s gross profit margin was significantly improved to 56.6% and in the absence of significant revaluation gain on investment properties reported last year, the profit attributable to the shareholder for the period increased moderately by 2.8%.

During the period, the Group generated HK$11.0 million cash inflow from its operating activities and has been maintaining robust liquidity position with more than HK$257 million cash on hand as at the end of June 2013, irrespective of the payments of HK$21.6 and HK$2 million for the 2012 final and special dividends as well as repurchase of shares respectively. In view of the sustained healthy financial position, the Board recommended the distribution of an interim dividend of 6 HK cents (2012: 6 HK cents).

Mr. Ng Cheung Shing, Chairman of the Group commented on the outlook that "The economic outlook of Mainland China and Hong Kong is anticipated to remain challenging with uncertainties on the global fiscal and monetary policies. The timing of the exit of the United States from quantitative easing monetary policies and the persisting European debts issues continued to cast volatilities on the global economic conditions. In view of the foregoing, the Group will continue to adopt prudent risk and capital management to face the challenges ahead. In addition, the Group's Application Services and Solutions Services business will continue to be the key business drivers in the foreseeable future. The well established customer base and enriched products and services offerings will continue to provide the Group with stable income stream. Together with its strong cash position, the Group will continue to pursue new acquisition opportunities to enlarge its software product portfolio and market coverage."

Lastly, on behalf of the Group and the Board, Mr. Ng extended sincere thanks and appreciations to our shareholders, customers, suppliers, business partners and all the employees for their continuous supports and trusts to the Group during the period.

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More information is available at the 2013 interim results announcement published by the Group on August 12, 2013.

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