i-Control Holdings Limited 超智能控股有限公司 (Incorporated in the Cayman Islands with limited liability) Stock code: 8355 2018 2018 第一季度 FIRST Q UARTERLY 業績報告 REPORT 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. 02 i-Control Holdings Limited First Quarterly Report 2018 CONTENTS Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 3 Condensed Consolidated Statement of Changes in Equity 4 Notes to the Condensed Consolidated Financial Statements 5 Management Discussion and Analysis 10 Other Information 12 i-Control Holdings Limited First Quarterly Report 2018 03 The board of Directors (the “Board”) of the Company is pleased to present the unaudited condensed consolidated results of the Group for the three months ended 30 June 2018 (the “Period”), together with the comparative unaudited figures for the corresponding period in 2017 as follows: CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the three months ended 30 June 2018 Three months ended 30 June 2018 2017 Notes HK$’000 HK$’000 (Unaudited) (Unaudited) Revenue 3 29,690 26,473 Cost of inventories sold (18,050) (16,146) Staff cost (7,016) (6,584) Depreciation (815) (814) Other income and gain, net 3 97 145 Other operating expenses (1,787) (1,635) Finance costs (240) (235) Profit before taxation 1,879 1,204 Income tax expenses 5 (516) (342) Profit for the period 1,363 862 Other comprehensive income Item that may be reclassified subsequently to profit or loss: Exchange differences arising on translating foreign operations (17) (10) Total comprehensive income for the period 1,346 852 Earnings per share Basic and diluted 8 HK0.14 cents HK0.09 cents Condensed Consolidated Statement of Changes in Equity For the three months ended 30 June 2018 04 i-Control Holdings Limited First Quarterly Report 2018 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the three months ended 30 June 2018 Attributable to the owners of the Company Share Share Merger Translation Retained capital premium reserve reserve profits Total HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 At 1 April 2017 (audited) 10,000 65,344 10,817 (122) 42,112 128,151 Profit and total comprehensive income for the period – – – (10) 862 852 At 30 June 2017 (unaudited) 10,000 65,344 10,817 (132) 42,974 129,003 At 1 April 2018 (audited) 10,000 55,344 10,817 148 59,021 135,330 Profit and total comprehensive income for the period – – – (17) 1,363 1,346 At 30 June 2018 (unaudited) 10,000 55,344 10,817 131 60,384 136,676 Notes to the Condensed Consolidated Financial Statements For the three months ended 30 June 2018 i-Control Holdings Limited First Quarterly Report 2018 05 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the three months ended 30 June 2018 1. CORPORATE INFORMATION AND BASIS OF PREPARATION OF FINANCIAL STATEMENTS The Company was incorporated in the Cayman Islands on 21 August 2014 as an exempted company with limited liability under the Companies Law, Chapter 22 (Law 3 of 1961, as combined and revised) of the Cayman Islands. The registered office of the Company is Estera Trust (Cayman) Limited, Clifton House, 75 Fort Street, Grand Cayman KY1-1108, Cayman Islands and its principal place of business is Units A&B, 12/F, MG Tower, 133 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong. The Company is engaged in investment holding while its principal subsidiaries are principally engaged in provision of multimedia audio-visual solutions and related system integration services. The Directors consider that the Company’s immediate and ultimate holding company is Phoenix Time Holdings Limited, which is incorporated in the British Virgin Islands (the “BVI”). The Company’s financial statements are presented in Hong Kong dollars (“HK$”), which is the Company’s functional and presentation currency. Other than the subsidiaries established in the People’s Republic of China (the “PRC”) and Singapore whose functional currency is Renminbi and Singapore dollar respectively, the functional currency of the Company and other subsidiaries is HK$. 2. SIGNIFICANT ACCOUNTING POLICIES The Company’s condensed consolidated financial statements for the three months ended 30 June 2018 have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosures required by the GEM Listing Rules and by the Hong Kong Companies Ordinance. The accounting policies and method of computation used in the preparation of these results are consistent with those used in the annual financial statements for the year ended 31 March 2018, except for the adoption of the new or revised standards, amendments to standards and interpretations of HKFRSs which are effective for annual period beginning on 1 April 2018. The adoption of such new or revised standards, amendments to standards and interpretations does not have material impacts on the consolidated financial statements and does not result in substantial changes to the Group’s accounting policies. 06 i-Control Holdings Limited First Quarterly Report 2018 Notes to the Condensed Consolidated Financial Statements For the three months ended 30 June 2018 3. REVENUE AND OTHER INCOME AND GAIN, NET Revenue represents the amounts received and receivable for services rendered in the normal course of business, net of discounts and sales related taxes and maintenance service income. Analysis of the Group’s revenue and other income and gain, net is as follows: Three months ended 30 June 2018 2017 HK$’000 HK$’000 (Unaudited) (Unaudited) Revenue Service income Solutions for audiovisual, conferencing, presentation and multimedia control systems, including installation services 26,900 23,281 Audiovisual system maintenance services 2,790 3,192 29,690 26,473 Other income and gain, net Bank interest income 2 5 Exchange loss (37) – Gross rental income from investment properties 132 139 Sundry income – 1 97 145 i-Control Holdings Limited First Quarterly Report 2018 07 Notes to the Condensed Consolidated Financial Statements For the three months ended 30 June 2018 4. SEGMENT INFORMATION The Directors consider that there is only one operating and reportable business segment for the Group, the provision of video conferencing and multimedia audiovisual solutions and maintenance services. Operating segments are reported in a manner consistent with the information reported to the Board, being the chief operating decision maker, for the purpose of resources allocation and performance assessment. Geographical information The Group’s operations are located in Hong Kong (place of domicile), the PRC and Singapore. The Group’s customers are mainly located in Hong Kong, the PRC, Macau and Singapore. An analysis of the Group’s revenue from external customers is presented based on the location of customers as below: Revenue from external customers Three months ended 30 June 2018 2017 HK$’000 HK$’000 (Unaudited) (Unaudited) Hong Kong (place of domicile) 28,452 22,282 The PRC (other than Hong Kong and Macau) 1,072 3,925 Macau 91 266 Singapore 75 – 29,690 26,473 08 i-Control Holdings Limited First Quarterly Report 2018 Notes to the Condensed Consolidated Financial Statements For the three months ended 30 June 2018 5. INCOME TAX EXPENSES Three months ended 30 June 2018 2017 HK$’000 HK$’000 (Unaudited) (Unaudited) Current tax: – Hong Kong Profits Tax 376 312 – PRC Enterprise Income Tax 108 – Deferred taxation 32 30 Total income tax expenses for the period 516 342 Hong Kong Profits Tax is calculated at 16.5% (2017: 16.5%) of the estimated assessable profits for the three months ended 30 June 2018. Under the Law of the PRC on Enterprise Income Tax (the “EIT Law”) and Implementation Regulation of the EIT Law, PRC Enterprise Income Tax is calculated at 25% (2017: 25%) of the estimated assessable profits for the three months ended 30 June 2018. Singapore Corporate Tax is calculated at the rate of 17% (2017: 17%) on the estimated assessable profits for the three months ended 30 June 2018.