ITE (HOLDINGS) LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8092)

QUARTERLY RESULTS ANNOUNCEMENT

FOR THE THREE MONTHS ENDED 30 JUNE 2019

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE

"EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a high investment risk may be attached than other companies listed on the Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Exchange take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the content of this announcement.

This announcement, for which the directors (the "directors") of ITE (Holdings) Limited (the "company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM (the "GEM Listing Rules") of the Exchange for the purpose of giving information with regard to the company. The directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

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HIGHLIGHTS

Turnover of the group for the three months ended 30 June 2019 was approximately HK$10,506,000 representing an increase of approximately 104% over the turnover of approximately HK$5,160,000 for the same period in 2018.

Profit attributable to owners of the company for the three months ended 30 June 2019 amounted to approximately HK$327,000 compared to that of approximately HK$216,000 for the same period in 2018.

The directors do not recommend the payment of an interim dividend for the three months ended 30 June 2019 (three months ended 30 June 2018: Nil).

CHAIRMAN'S STATEMENT

Dear Shareholders,

On behalf of the board (the "board") of directors (the "directors"), I hereby present the unaudited quarterly consolidated results of ITE (Holdings) Limited (the "company") and its subsidiaries (together, "ITE" or the "group") for the three months ended 30 June 2019 (the "period").

Mission

The mission of the group is to become the leading provider of smartcard, radio frequency identification ("RFID"), biometrics product and solution and professional services in the world. ITE has been pioneering and has achieved outstanding performance in the areas of smartcard system solutions and integration services in the Hong Kong Special Administrative Region ("Hong Kong" or "HKSAR"), the Macao Special Administrative Region ("Macao") and the People's Republic of China ("PRC"). With profound expertise, strong research and development ("R&D") capability, proven track record and excellent reputation, the group has established a leading profile in our industry and has adopted a proactive approach to introduce innovative and customized smartcard, RFID and biometrics applications to our clients. Leveraging on our extensive industry experience and intellectual assets, ITE will continue to develop innovative products and multi-applications solutions for clients coming from different industries and to expand our businesses to more overseas countries.

Appreciation

I would like to take this opportunity to express my deepest thanks to my directors, management and staff for their dedication and hard work, and shareholders, financiers and business partners for their continued support.

By order of the Board

ITE (Holdings) Limited

Lau Hon Kwong, Vincent

Chairman

Hong Kong, 9 August 2019

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BUSINESS REVIEW

The management of the group has continued to utilize our professional and committed workforce and financial resources to achieve maximum return for our shareholders.

During the period, our subsidiary, ITE Smartcard Solutions Limited, has been awarded with a number of new contracts and orders from existing clients. The orders covered the supply of hardware and software and the provision of professional services to build up or enhance their application systems.

We are also pleased to advise that our energy technology and solution subsidiary, ITE Engineering Limited ("ITEE"), has sponsored a hydrogen-economy technological research and development project in Hong Kong under the Innovation and Technology Support Programme. ITEE shall collaborate with the Automotive Parts and Accessory Systems R&D Centre on the Project Title: "Development of on-board PEM fuel cell technology platform for EV mobile charging system". The R&D project period will last for eighteen months until end of 2020.

All of us know that the Hong Kong community is going through her most difficult times. ITE commit to continue our contributions and efforts in supporting local R&D and social activities. We hope that the HKSAR administration shall have the determination on commitment to enable us to move forward and towards a better situation.

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QUARTERLY RESULTS

Unaudited Consolidated Statement of Profit or Loss and Other Comprehensive Income

Three Months Ended

30 June

Note

2019

2018

HK$'000

HK$'000

Revenue

3

10,506

5,160

Cost of services rendered

(7,909)

(2,592)

Cost of sales

(29)

(54)

Gross profit

2,568

2,514

Other revenue and other gains, net

349

43

Administrative expenses

(2,290)

(2,341)

Finance costs

(300)

-

Profit before taxation

327

216

Income tax

4

-

-

Profit for the year attributable to

owners of the company

327

216

Other comprehensive income

Item that may be reclassified subsequently to profit or loss:

- Exchange differences on translation of foreign

-

-

operations, net of nil tax

Total comprehensive income

327

216

Earning per share

6

Basic and diluted (HK cents)

0.04

0.02

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Unaudited Consolidated Statement of Changes in Equity

Attributable to owners of the company

Share

Share

Share

Merger

Exchange

option

Accumulated

capital

premium

reserve

reserve

reserve

losses

Total

HK$'000

HK$'000 HK$'000

HK$'000 HK$'000

HK$'000

HK$'000

Balance at 1 April 2018

9,255

20,240

10,749

370

2,069

(27,870)

14,813

Changes in equity for the period:

Profit for the period

-

-

-

-

-

216

216

Total comprehensive income

for the period

-

-

-

-

-

216

216

Balance at 30 June 2018

9,255

20,240

10,749

370

2,069

(27,654)

15,029

Balance at 1 April 2019

9,255

20,240

10,749

370

2,584

(31,274)

11,924

Changes in equity for the period:

Profit for the period

-

-

-

-

327

327

Total comprehensive income

for the period

-

-

-

-

-

327

327

Lapse of share options

-

-

-

-

(194)

194

-

Balance at 30 June 2019

9,255

20,240

10,749

370

2,390

(30,753)

12,251

Notes:

  1. Basis of preparation
    The unaudited consolidated results have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. The unaudited consolidated results also comply with the applicable disclosure provisions of the GEM Listing Rules.
    The measurement basis used in the preparation of the unaudited consolidated results is the historical cost basis except as otherwise stated in the significant accounting policies.
    The principal accounting policies used in the preparation of the unaudited consolidated results are consistent with those adopted in the preparation of the annual consolidated financial statements of the group for the year ended 31 March 2019.
  2. Adoption of new and revised HKFRSs
    The HKICPA has issued certain new and revised HKFRSs that are first effective or available for early adoption for the current accounting period of the group. The adoption of these new and revised HKFRSs has no material effect on the consolidated financial statements in the current or prior accounting periods. The group has not applied any new or revised HKFRSs that is not yet effective for the current accounting period.

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ITE (Holdings) Limited published this content on 09 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2019 09:25:10 UTC