i-Control Holdings Limited i-Control i-Control Holdings Limited i-Control Holdings Limited 超智能控股有限公司 超智能控股有限公司 超智能控股有限公司 （於開曼群島註冊成立之有限公司） (Incorporated in the Cayman Islands with limited liability) 股份代號: 8355 Stock code: 8355 ANNUAL REPORT 2019 年報 Characteristics of GEM of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock 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 Stock Exchange take no responsibility for the contents of this report, 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 report. This report, for which the directors (the “Directors”) of i-Control 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 of the Stock Exchange (the “GEM Listing Rules”) for the purpose of giving information with regard to the Company and its subsidiaries (collectively referred to as the “Group”). The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report 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 report misleading. CONTENTS 3 Corporate Information 4 Chairman’s Statement 5 Management Discussion and Analysis 10 Directors and Senior Management 15 Corporate Governance Report 25 Environmental, Social and Governance Report 35 Report of the Directors 44 Independent Auditor’s Report on the Consolidated Financial Statements 48 Consolidated Statement of Profit or Loss and Other Comprehensive Income 49 Consolidated Statement of Financial Position 51 Consolidated Statement of Changes in Equity 52 Consolidated Statement of Cash Flows 54 Notes to the Consolidated Financial Statements 104 Particulars of Properties 106 Financial Summary CORPORATE INFORMATION i-Control Holdings Limited Annual Report 2019 3 CORPORATE INFORMATION BOARD OF DIRECTORS LEGAL ADVISER Executive Directors Sidley Austin Mr. Zhong Naixiong (Chairman) 39/F Mr. Yau Wing Keung Two International Finance Centre Mr. Tong Sai Wong Central Mr. Chan Wing Yiu Hong Kong Mr. Chan Wing Lun Non-Executive Directors REGISTERED OFFICE Dr. Wong King Keung Estera Trust (Cayman) Limited Clifton House, 75 Fort Street Independent Non-Executive Directors Grand Cayman KY1-1108 Mr. Fong Chi Cayman Islands Mr. Fung Chan Man Alex Mr. Lai Hing Kwong Joseph# HEADQUARTER AND PRINCIPAL PLACE Mr. Lum Pak Sum OF BUSINESS IN HONG KONG ^ Mr. Mong Cheuk Wai Units A&B, 12/F, MG Tower COMPANY SECRETARY 133 Hoi Bun Road Kwun Tong Ms. Ng Tsz Wai, CPA Kowloon COMPLIANCE OFFICER Hong Kong Mr. Chan Wing Yiu PRINCIPAL BANKER BOARD COMMITTEES The Hong Kong and Shanghai Banking Corporation Limited Audit Committee 1 Queen’s Road Central Mr. Lum Pak Sum (Chairman) Hong Kong Mr. Fong Chi Mr. Lai Hing Kwong Joseph# PRINCIPAL SHARE REGISTRAR AND ^ Mr. Mong Cheuk Wai TRANSFER OFFICE IN THE CAYMAN Nomination Committee ISLANDS Mr. Fung Chan Man Alex (Chairman) Estera Trust (Cayman) Limited Mr. Lai Hing Kwong Joseph# Clifton House, 75 Fort Street Mr. Lum Pak Sum Grand Cayman KY1-1108 Mr. Mong Cheuk Wai^ Cayman Islands Remuneration Committee HONG KONG BRANCH SHARE REGISTRAR Mr. Fung Chan Man Alex (Chairman) AND TRANSFER OFFICE Mr. Fong Chi Tricor Investor Services Limited Mr. Lum Pak Sum 22/F, Hopewell Centre ’ AUTHORISED REPRESENTATIVES 183 Queen s Road East Hong Kong Mr. Yau Wing Keung Ms. Ng Tsz Wai (with effect from 11 July 2019) AUDITOR Level 54, Hopewell Centre SHINEWING (HK) CPA Limited 183 Queen’s Road East 43/F, Lee Garden One Hong Kong 33 Hysan Avenue Causeway Bay COMPANY’S WEBSITE Hong Kong http://www.i-controlholdings.com STOCK CODE ^ Appointed on 13 November 2018 8355 # Resigned on 13 November 2018 CHAIRMAN’S STATEMENT i-Control Holdings Limited 4 Annual Report 2019 CHAIRMAN’S STATEMENT Dear Shareholders, On behalf of the board of directors (the “Board”) of i-Control Holdings Limited (the “Company”), I am pleased to present the audited annual results of the Company and its subsidiaries (collectively referred to as the “Group”) for the year ended 31 March 2019. RESULTS The Group’s revenue for the year ended 31 March 2019 was approximately HK$185.7 million (2018: HK$158.6 million) representing an increase of 17.1% over the previous year which was mainly attributable to the completion of several sizable projects. Profit for the year ended 31 March 2019 was approximately HK$23.5 million (2018: HK$16.9 million), representing an increase of 39.0% as compared to the previous year. BUSINESS OVERVIEW During the past years, the Group has achieved significant growth in providing our one-stop solutions to suit various requirements and specifications of our customers from a wide spectrum of industries. Our customers mainly include multinational and listed companies, financial services providers, educational institutions, hotel and shopping mall operators, etc. Our integrated and tailor-made video conferencing and multimedia audiovisual solutions services, from consultation and design, project management and installation; to maintenance, enabling us to source quality video conferencing and multimedia audiovisual equipment and provide high quality solution services to meet our customers’ need. By providing maintenance services, we are able to strengthen the business relationship with our existing customers and explore new business opportunities by understanding our customers’ need, leading to continuously business growth. PROSPECT As an established video conferencing and multimedia audiovisual solution provider in Hong Kong, we are committed to take the lead and equip ourselves with the latest technological knowledge to strengthen our competitiveness. Leveraging our position as one of the leading service providers of video conferencing and multimedia audiovisual solutions in Hong Kong, we are looking for business opportunities to further expand the Group’s market share in the video conferencing and multimedia audiovisual solutions industry in the People’s Republic of China (the “PRC”), especially the Greater Bay Area. After the opening of the Hong Kong-Zhuhai-Macao Bridge and Guangzhou-Shenzhen-Hong Kong Express Rail Link, economic activity in the Greater Bay Area is expected to rise. We will seize the opportunities to explore new business in the Greater Bay Area in order to support our long-term development. APPRECIATION Finally, on behalf of the Board, I would like to express our sincere thanks to our customers, business partners, suppliers and shareholders of the Company (the “Shareholders”) for their continuous support, and our appreciation for the efforts and endeavors made by our management and staff during the past year. Zhong Naixiong Chairman Hong Kong, 25 June 2019 MANAGEMENT DISCUSSION AND ANALYSIS i-Control Holdings Limited Annual Report 2019 5 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW During the year, the Group maintained its market position as one of the leading service providers of video conferencing and multimedia audiovisual solutions, mainly in Hong Kong, and other geographical locations such as the PRC and Macau. The Group’s services can be divided into two lines, namely the provision of (i) solutions for audiovisual, conferencing, presentation and multimedia control systems, including installation services; and (ii) audiovisual system maintenance services. The Group continued to maintain and strengthen its position as one of the leading service providers of video conferencing and multimedia audiovisual solutions in Hong Kong and continued to expand its market share in the video conferencing and multimedia audiovisual solutions industry in the PRC. FINANCIAL REVIEW Segment analysis Year ended 31 March 2019 Year ended 31 March 2018 HK$’000 % HK$’000 % Solutions for audiovisual, conferencing, presentation and multimedia control systems, including installation services 169,649 91.3 144,216 90.9 Audiovisual system maintenance services 16,065 8.7 14,393 9.1 Total 185,714 100.0 158,609 100.0 Revenue The Group’s revenue increased by 17.1% from approximately HK$158,609,000 for the year ended 31 March 2018 to approximately HK$185,714,000 for the year ended 31 March 2019. Revenue generated from solutions for audiovisual, conferencing, presentation and multimedia control systems, including installation services increased by approximately 17.6% from approximately HK$144,216,000 for the year ended 31 March 2018 to approximately HK$169,649,000 for the year ended 31 March 2019, which was mainly attributable to the completion of several sizable projects during the year ended 31 March 2019. Revenue generated from audiovisual system maintenance services increased by approximately 11.6% from approximately HK$14,393,000 for the year ended 31 March 2018 to approximately HK$16,065,000 for the year ended 31 March 2019, which was primarily attributable to the increase in total maintenance projects after the completion of related projects of solutions for audiovisual, conferencing, presentation and multimedia control systems, including installation services. i-Control Holdings Limited 6 Annual Report 2019 MANAGEMENT DISCUSSION AND ANALYSIS Gross operating margin and gross operating margin ratio Gross operating margin is calculated based on the revenue for the year minus the cost of inventories sold for the year.