C&T Announces 2015 Full-Year Results

March 18, 2016

Hong Kong, March 17, 2016 - 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, 2015.

The Group’s overall revenue grew by HK$8.3 million or 3.9% to HK$219.1 million (2014: HK$210.8 million). The gross profit margin reached its record high at 54.2% (2014: 52.1%) and the overall gross profit rose by HK$8.9 million, or 8.1% to HK$118.7 million (2014: HK$109.9 million). The Board is delighted to see that the Group’s business transformation toward a proprietary software and high value added solution services oriented provider is on the right track with improving result.

On the other hand, the Group’s profit was significantly impacted by the high volatilities in Renminbi (“RMB”) currency and decrease in other non-operation income and gain during the reporting year. In particular, the Group’s foreign exchange loss increased by HK$4.6 million, or 102.5% to HK$9.1 million (2014: HK$4.5 million) while the investment properties valuation gain dropped by HK$4.9 million, or 60.6% to HK$3.2 million (2014: HK$8.1 million). Further, the group also incurred additional investment of approximately HK$4.6 million in research and development (“R&D”) of software products during the reporting period. As a combined result of the above factors, the Group encountered a setback in consolidated net profit attributable to shareholders of 9.6% to HK$44.1 million (2014: HK$48.8 million). The basic earnings per share was 18.27 HK cents (2014: 20.26 HK cents) or a decrease of 9.8% compared with last year.

During 2015, the Group had generated net cash inflows of HK$33 million from its operating activities. Subsequent to the end of the reporting year, the Group had invested over HK$137 million from internal resources to acquire a leading Human Resource Management (“HRM”) software provider in the Mainland China. The Group continues to maintain a robust liquidity position after such acquisition.

In view of the healthy financial position, the Board recommended the distribution of a final dividend of 7 HK cents (2014: final dividend of 7 HK cents and special dividend of 2 HK cents) per ordinary share. Combined with the interim dividend of 7 HK cents (2014: 7 HK cents) paid, the full year dividend payout amounts to 14 HK cents.

Looking forward, Mr. Ng Cheung Shing, Chairman of C&T Holdings commented, "The global economy is forecasted to be complex and full of uncertainties with risks of downturn. The growth of China’s economy is also projected to be slowing down. Taking account of the uncertainties, the Group will be alerted to the risk management and be prepared to response to the rapid changes in the economic environment. Leveraging the strong recurring revenue streams generating from its core businesses and the robust financial position, the Group will devote more resources in its software and solutions business, enlarge its business coverage and continues to pursue for suitable acquisition opportunities in the region in order to accelerate its business growth."

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.

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More information is available at the 2015 results announcement published by the Group on March 17, 2016.

About C&T Holdings
As a pioneer in the IT industry, Computer And Technologies (“C&T”) Group operates its business on a vision to build a better world with Information Technology. Since our establishment in 1991 and listing in the main board of Hong Kong Stock Exchange (Stock Code: SEHK00046) in 1998, C&T Group has committed to providing best-of-breed software products from human resources management to enterprise-level information management, procurement management and retail management to enable organizations to run their businesses and operations better. Apart from software products, the Group also has a long-standing track record in delivering effective IT solutions and quality services, including IT solutions design and implementation, software development, online e-Services as well as business processing outsourcing services, to enhance the competitive advantages of our clients. For more information, please visit our website at www.ctil.com.