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. i-CONTROL HOLDINGS LIMITED 超智能控股有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock code: 1402) INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020 The board (the “Board”) of directors (the “Directors”) of i-Control Holdings Limited (the “Company”) is pleased to present the unaudited condensed consolidated results of the Company and its subsidiaries (collectively referred to as the “Group”) for the six months ended 30 September 2020, together with the comparative unaudited figures for the corresponding period in 2019 as follows: CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended 30 September 2020 Six months ended 30 September 2020 2019 Notes HK$’000 HK$’000 (Unaudited) (Unaudited) Revenue 3 75,270 85,586 Cost of inventories sold including installation cost (44,767) (48,539) Staff cost (16,805) (16,940) Depreciation (1,715) (1,681) Other income and net gain 3 2,457 93 Other operating expenses (3,424) (3,455) Finance costs 5 (354) (599) Transfer listing expenses – (10,987) Profit before taxation 10,662 3,478 Income tax expenses 6 (1,167) (2,348) Profit for the period 9,495 1,130 Other comprehensive income Item that may be reclassified subsequently to profit or loss: Exchange differences arising on translating foreign operations (2) (81) Total comprehensive income for the period 9,493 1,049 Earnings per share Basic and diluted 8 HK0.95 cents HK0.11 cents 1 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 September 2020 30 September 31 March 2020 2020 Notes HK$’000 HK$’000 (Unaudited) (Audited) Non-current assets Property and equipment 9 86,297 86,471 Investment property 9 – 1,529 Deferred tax assets 419 622 86,716 88,622 Current assets Inventories 9,155 11,343 Trade receivables and contract assets 10 41,786 37,681 Prepayments, deposits and other receivables 1,654 1,461 Tax recoverables 262 144 Bank balances and cash 56,332 70,936 109,189 121,565 Current liabilities Trade payables 11 13,034 18,555 Other payables and accruals 11,548 18,614 Lease liability 12 32 97 Bank borrowings 13 28,627 30,838 Tax payables 251 – 53,492 68,104 Net current assets 55,697 53,461 Total assets less current liabilities 142,413 142,083 Non-current liability Deferred tax liabilities 860 1,023 Net assets 141,553 141,060 Capital and reserves Share capital 14 10,000 10,000 Reserves 131,553 131,060 Total equity 141,553 141,060 2 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 September 2020 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 2019 (audited) 10,000 47,344 10,817 (110) 82,524 150,575 Profit for the period – – – – 1,130 1,130 Other comprehensive income for the period: Exchange differences arising on translating foreign operations – – – (81) – (81) Total comprehensive income for the period – – – (81) 1,130 1,049 2019 final dividend paid (note 7) – (12,000) – – – (12,000) At 30 September 2019 (unaudited) 10,000 35,344 10,817 (191) 83,654 139,624 At 1 April 2020 (audited) 10,000 35,344 10,817 (246) 85,145 141,060 Profit for the period – – – – 9,495 9,495 Other comprehensive income for the period: Exchange differences arising on translating foreign operations – – – (2) – (2) Total comprehensive income for the period – – – (2) 9,495 9,493 2020 final dividend paid (note 7) – (9,000) – – – (9,000) At 30 September 2020 (unaudited) 10,000 26,344 10,817 (248) 94,640 141,553 3 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 September 2020 Six months ended 30 September 2020 2019 HK$’000 HK$’000 (Unaudited) (Unaudited) Net cash used in operating activities (2,985) (2,367) Investing activities Acquisition of property and equipment (12) (39) Bank interest received 25 63 Net cash from investing activities 13 24 Financing activities Dividend paid (9,000) (12,000) Repayment of bank borrowings (2,211) (2,211) Interest paid (353) (596) Capital element of repayment of lease liability (65) (62) Interest element of repayment of lease liability (1) (3) Net cash used in financing activities (11,630) (14,872) Net decrease in cash and cash equivalents (14,602) (17,215) Cash and cash equivalents at the beginning of the period 70,936 76,636 Effect of foreign exchange rate changes (2) (81) Cash and cash equivalents at the end of the period, represented by bank balances and cash 56,332 59,340 4 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months ended 30 September 2020 1. CORPORATE INFORMATION AND BASIS OF PREPARATION OF FINANCIAL INFORMATION The Company was incorporated in the Cayman Islands on 21 August 2014 as an exempted company with limited liability under the Companies Law (as revised) of the Cayman Islands. The registered office of the Company is PO Box 1350, 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 Company’s shares (“Shares”) have been listed on GEM of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) since 27 May 2015 (the “Listing”). On 18 December 2019, the listing of shares was transferred from GEM to the Main Board of the Stock Exchange. 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”). Its ultimate controlling party is Mr. Zhong Naixiong. 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 condensed consolidated financial statements have been prepared on the historical cost basis. The accounting policies used in the condensed consolidated financial statements are consistent with those followed in the preparation of the annual consolidated financial statements of the Group for the year ended 31 March 2020, except as described below. In the current interim period, the Group has applied, for the first time, the Amendments to References to the Conceptual Framework in Hong Kong Financial Reporting Standards (“HKFRSs”), the amendments to Hong Kong Accounting Standards (“HKASs”) and the following amendments to HKFRSs issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) which are effective for the Group’s financial year beginning 1 April 2020: Amendments to HKFRS 3 Definition of a Business Amendments to HKAS 1 and HKAS 8 Definition of Material Amendments to HKFRS 9, HKAS 39 and HKFRS 7 Interest Rate Benchmark Reform The application of the Amendments to References to the Conceptual Framework in HKFRS and the amendments to HKFRSs in the current interim period has had no material effect on the Group’s financial performance and positions for the current and prior periods or on the disclosures set out in these condensed consolidated financial statements. 5 3. REVENUE AND OTHER INCOME AND NET GAIN Revenue represents the amounts received and receivable from provision of video conferencing and multimedia audiovisual (“VCMA”) solution services and VCMA maintenance services, net of discounts and sales related taxes. Analysis of the Group’s revenue and other income and net gain is as follows: Six months ended 30 September 2020 2019 HK$’000 HK$’000 (Unaudited) (Unaudited) Disaggregated by major products or service line: – VCMA solution services 65,734 76,852 – VCMA maintenance services 9,536 8,734 75,270 85,586 Disaggregation of revenue by timing of recognition Six months ended 30 September 2020 2019 HK$’000 HK$’000 (Unaudited) (Unaudited) Timing of revenue recognition At a point in time 65,734 76,852 Over time 9,536 8,734 Total revenue from contracts with customers 75,270 85,586 Six months ended 30 September 2020 2019 HK$’000 HK$’000 (Unaudited) (Unaudited) Other income and net gain Government subsidy (note a) 2,312 – Bank interest income 25 63 Exchange gain 120 27 Gross rental income from investment properties (note b) – 6 Write-off of property and equipment – (3) 2,457 93 Notes : (a) The amount primarily represents a cash subsidy of Employment Support Scheme of approximately HK$2,312,000 (2019: nil) granted by The Government of the Hong Kong Special Administrative Region under the Anti-Epidemic Fund for relieving financial burdens of the businesses. There are no unfulfilled conditions and other contingencies attached to the receipts of those subsidies. (b) No direct operating expenses incurred for investment properties that generated rental income. 6 4. SEGMENT INFORMATION The Directors consider that there is only one operating and reportable business segment for the Group, being the provision of VCMA solution services, and VCMA maintenance services.