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C&T announces 2017 Full-Year Results
Hong Kong, March 13, 2018 - Leading Hong Kong listed information technology (IT) software and service company, Computer And Technologies Holdings Limited (the Group, SEHK 00046) announced today its audited results for the year ended December 31, 2017.
The Group’s overall revenue slightly dropped by HK$4.8 million, or 1.8% to HK$253.9 million (2016: HK$258.7 million). The gross profit of the Group also reduced by HK$2.6 million, or 1.8% to HK$143.5 million (2016: HK$146.1 million) while the gross profit margin was maintained at around 56.5% (2016: 56.5%). The drop was primarily due to delay in project completions of the Group’s Solutions Services business in early 2017. The respective delivery progress had gradually been resumed in second half of the year and the result of the related business was improved in the corresponding period. On the other hand, the Group’s Application Software business recorded sustained growth during the year under review.
The Group recorded an increment in other non-operating incomes during the reporting year. In particular, the Group’s Application Software business in PRC successfully received tax rebates of HK$4.4 million (2016: HK$0.2 million) for some of value added tax (VAT) previously paid. The Group also recorded valuation gains on financial assets and investment properties of HK$5.0 million (2016: HK$1.2 million) in view of continual appreciation of related assets.
Apart from increasing resources in research and development (R&D) of its existing application software products, during the year under review, the Group had also incurred additional development costs of HK$4.1 million in building a software to replace an existing system under a long term services contract (Contract) with a department of the HKSAR Government (the Government). Considering that such software replacement will generate cost savings under the Contract in the future, related costs had been capitalised as deferred development costs and would amortise over the remaining contract periods.
With the abovementioned, the Group’s consolidated net profit attributable to shareholders recorded an increase of 7.9% to HK54.3 million (2016: HK$50.3 million). The basic earnings per share increased to 22.43 HK cents (2016: 20.81 HK cents) or improved by 7.8% compared with last year.
In view of sustained healthy financial position and as celebrating the 20th anniversary of the Company being publicly listed, the Board recommended the distributions of a final dividend of 7 HK cents and a special dividend of 5 HK cents (2016: a final dividend of 7 HK cents and a special dividend of 3 HK cents) per ordinary share with a scrip dividend alternative. Counting the interim and special dividends of 10 HK cents being paid (2016: an interim dividend of 7 HK cents) together with these proposed dividends, the Group’s full year dividend payout had reached a record high of 22 HK cents.
Moving forward to 2018, Mr. Ng Cheung Shing, Chairman of C&T Holdings stated, “The uncertainties or even threats over Sino-US relations, the impact of US interest rate hikes and the consequences of curbs on capital outflows in Mainland China would continue to impact the global economy in 2018.” Mr. Ng added, “Despite these uncertainties, the Group will keep monitoring the business environment cautiously and remain committed to devoting more resources in the software and solutions businesses and look for regional acquisition opportunities to accelerate its business growth.”
For details of the Group’s 2017 Full-Year Results, please refer to the announcement published on March 13, 2017.
About C&T Holdings
Computer And Technologies Holdings Limited ("C&T Holdings" or the "Group", Stock Code: SEHK 00046) is a leading IT software and service provider in Asia involved in the design, delivery and operation of total IT solutions for the Government departments and corporate enterprises. Building on its successful track records, the Group provides comprehensive IT services from system and network integration, IT solutions implementation and software development, enterprise application software, on-line e-Government and e-Business platforms, as well as business process outsourcing services. For more information, please visit our website at www.ctil.com.
Ms. Emma Wong
Tel: (852) 2217 1511
Fax: (852) 2503 8400