Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited 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 contents of this announcement. 京投軌道交通科技控股有限公司 BII Railway Transportation Technology Holdings Company Limited (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1522) ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 The board (the “Board”) of directors (the “Directors”) of BII Railway Transportation Technology Holdings Company Limited (the “Company”) is pleased to announce the consolidated financial results of the Company and its subsidiaries (collectively, the “Group”) for the year ended 31 December 2020. The consolidated financial results set out in this announcement are extracted from the Group’s audited consolidated financial statements for the year ended 31 December 2020 (“2020 financial year” or “FY 2020”). – 1 – CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the year ended 31 December 2020 (Expressed in Hong Kong dollars (“HK$”)) 2020 2019 Note HK$’000 HK$’000 Revenue 3 1,549,976 1,193,937 Cost of sales (934,717) (769,158) Gross profit 3(b) 615,259 424,779 Other income 49,962 70,758 Selling, general and administrative expenses (257,867) (227,184) Impairment loss on trade receivables and contract assets (28,842) (22,541) Research expenses (135,261) (117,928) Profit from operations 243,251 127,884 Finance costs 4(a) (29,019) (27,414) Share of results of joint ventures and associates (108,168) 25,182 Fair value change in contingent considerations 106,840 (6,304) Profit before taxation 4 212,904 119,348 Income tax 5 (29,112) (8,865) Profit for the year 183,792 110,483 Attributable to: Equity shareholders of the Company 168,407 96,870 Non-controlling interests 15,385 13,613 Profit for the year 183,792 110,483 Earnings per share – Basic (HK$) 6 0.080 0.046 – Diluted (HK$) 6 0.080 0.046 – 2 – CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 December 2020 (Expressed in HK$) 2020 2019 HK$’000 HK$’000 Profit for the year 183,792 110,483 Other comprehensive income for the year (after tax): Item that may be reclassified subsequently to profit or loss: – Ex change differences on translation of financial statements into presentation currency 141,983 (51,058) Total comprehensive income for the year 325,775 59,425 Attributable to: Equity shareholders of the Company 307,161 44,015 Non-controlling interests 18,614 15,410 Total comprehensive income for the year 325,775 59,425 – 3 – CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2020 (Expressed in HK$) 2020 2019 Note HK$’000 HK$’000 Non-current assets Property, plant and equipment 170,171 175,604 Intangible assets 237,010 228,771 Goodwill 662,320 622,239 Interests in joint ventures and associates 356,256 462,687 Income tax recoverable – 3,934 Contingent considerations 52 181 Deferred tax assets 42,316 35,055 1,468,125 1,528,471 Current assets Other financial assets 219,819 169,680 Inventories and other contract costs 410,731 502,489 Contract assets 7(a) 520,322 424,721 Trade and other receivables 8 687,074 557,594 Loans to an associate 7,130 – Cash on hand and in bank 983,829 850,891 2,828,905 2,505,375 Current liabilities Trade and other payables 9 893,658 784,340 Contract liabilities 7(b) 59,722 31,568 Bank and other borrowings 571,412 59,876 Lease liabilities 7,618 5,634 Current taxation 24,670 23,501 Contingent considerations 88,830 73,309 Provision for warranties 8,564 8,628 1,654,474 986,856 Net current assets 1,174,431 1,518,519 Total assets less current liabilities 2,642,556 3,046,990 – 4 – CONSOLIDATED STATEMENT OF FINANCIAL POSITION (Continued) At 31 December 2020 (Expressed in HK$) 2020 2019 Note HK$’000 HK$’000 Non-current liabilities Bank and other borrowings – 500,000 Lease liabilities 14,860 11,537 Contingent considerations 18,329 207,076 Deferred tax liabilities 52,998 52,497 Deferred income 1,504 1,077 Provision for warranties 1,861 2,263 89,552 774,450 NET ASSETS 2,553,004 2,272,540 CAPITAL AND RESERVES 10 Share capital 20,971 21,001 Reserves 2,431,646 2,168,215 Total equity attributable to equity shareholders of the Company 2,452,617 2,189,216 Non-controlling interests 100,387 83,324 TOTAL EQUITY 2,553,004 2,272,540 – 5 – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Expressed in HK$ unless otherwise indicated) 1 CORPORATE INFORMATION BII Railway Transportation Technology Holdings Company Limited was incorporated in the Cayman Islands on 7 January 2011 as an exempted company with limited liability under the Companies Law (2011 Revision), Chapter 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The shares of the Company were listed on the Growth Enterprise Market (the “GEM”) of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) on 16 May 2012. The listing of the Company’s shares was transferred from the GEM to the Main Board of the Stock Exchange on 6 December 2013. The consolidated financial statements of the Company as at and for the year ended 31 December 2020 comprise the Group and the Group’s interests in joint ventures and associates. The principal activities of the Group are the design, production, implementation and sale, and maintenance of application solutions for the networking and controlling systems of public transport and other companies, the provision of civil communication transmission services, as well as design, implementation and sale of related software, hardware and spare part in utility tunnel areas, and the investment in the railway transportation areas and infrastructure areas through investing in equity. 2 SIGNIFICANT ACCOUNTING POLICIES (a) Statement of compliance These financial statements have been prepared in accordance with all applicable International Financial Reporting Standards (“IFRSs”), which collective term includes all applicable individual International Financial Reporting Standards, International Accounting Standards (“IASs”) and Interpretations issued by the International Accounting Standards Board (the “IASB”) and the applicable disclosure requirements of the Hong Kong Companies Ordinance. These financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”). Significant accounting policies adopted by the Group are disclosed below. The IASB has issued certain new and revised IFRSs that are first effective or available for early adoption for the current accounting period of the Group. Note 2(c) provides information on any changes in accounting policies resulting from initial application of these developments to the extent that they are relevant to the Group for the current accounting period reflected in these financial statements. (b) Basis of preparation of the financial statements The consolidated financial statements for the year ended 31 December 2020 comprise the Group and the Group’s interests in joint ventures and associates. The measurement basis used in the preparation of the financial statements is the historical cost basis except that the following assets are stated at their fair value as explained in the accounting policies set out below: – investments in debt investments; – contingent considerations, and – options – 6 – The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. (c) Changes in accounting policies The Group has applied the following amendments to IFRSs issued by the IASB to these financial statements for the current accounting period: – Amendments to IFRS 3, Definition of a Business – Amendments to IFRS 9, IAS 39 and IFRS 7, Interest Rate Benchmark Reform – Amendments to IAS 1 and IAS 8, Definition of material – Amendment to IFRS 16, Covid-19-Related Rent Concessions Other than the amendment to IFRS 16, the Group has not applied any new standard or interpretation that is not yet effective for the current accounting period. None of these developments have had a material effect on how to the Group’s results and financial position for the current or prior periods have been prepared or presented. 3 REVENUE AND SEGMENT REPORTING (a) Revenue The principal activities of the Group are the design, production, implementation and sale, and maintenance, of application solutions for the networking and controlling systems of public transport and other companies, the provision of civil communication transmission services, as well as design, implementation and sale of related software, hardware and spare