ETS : Annual Results Announcement For The Year Ended 31 December 2021

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.

ETS GROUP LIMITED

易 通 訊 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8031)

ANNUAL RESULTS ANNOUNCEMENT

FOR THE YEAR ENDED 31 DECEMBER 2021

CHARACTERISTICS OF THE 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.

This announcement for which the directors (the "Directors") of ETS Group Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on the GEM of the Stock Exchange (the "GEM Listing Rules") 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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FINANCIAL HIGHLIGHTS

The Group's revenue for the year ended 31 December 2021 was approximately HK$98,757,000 representing a decrease of approximately 5.2% as compared to that of approximately HK$104,211,000 in 2020.

Loss attributable to owners of the Company for the year ended 31 December 2021 was approximately HK$18,620,000 representing an increase of approximately 263% as compared to the loss attributable to owners of the Company for the year ended 31 December 2020 amounted approximately HK$5,137,000.

Loss per share for the year ended 31 December 2021 was HK6.7 cents (2020: Loss per

share: HK1.8 cents).

The board of Directors does not recommend a final dividend for the year ended 31 December 2021 (2020: nil).

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C O N S O L I D A T E D S T A T E M E N T O F P R O F I T O R L O S S A N D O T H E R COMPREHENSIVE INCOME

For the year ended 31 December 2021

		2021		2020
	Notes	HK$'000	HK$'000
Revenue	3	98,757		104,211
Other income		290		14,636
Other losses - net		(11,303)	(6,772)
Employee benefits expenses		(73,495)	(76,864)
Depreciation and amortization		(9,343)	(12,010)
Other operating expenses		(22,158)	(27,952)
Operating loss		(17,252)	(4,751)
Finance costs		(496)	(399)
Loss before tax	4	(17,748)	(5,150)
Income tax (expense)/credit	5	(872)	13
Loss for the year		(18,620)	(5,137)
Other comprehensive income for the year		-	-
Total comprehensive expense for the year		(18,620)	(5,137)
Loss attributable to owners of the
Company		(18,620)	(5,137)
Total comprehensive expense for the year
attributable to owners of the Company		(18,620)	(5,137)
Loss per share attributable to owners of the
Company
- Basic and diluted (HK cents)		(6.7)	(1.8)

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2021

		2021		2020
	Notes	HK$'000	HK$'000
Non-current assets
Property, plant and equipment		1,541		1,320
Right-of-use assets		1,004		5,246
Intangible assets		3,771	5,437
Financial assets at fair value through
profit or loss		2,200	-
Deferred income tax assets		818	1,171
Other assets		205	205
		9,539		13,379
Current assets
Contract assets		3,887		3,287
Trade and other receivables	7	58,472		46,727
Financial assets at fair value through
profit or loss		235	1,644
Tax recoverable		115	704
Pledged bank deposits		6,091	9,108
Bank trust account balances		16,593	11,738
Cash and cash equivalents		41,709	59,455
		127,102		132,663
Current liabilities
Contract liabilities		1,890		1,888
Trade and other payables	8	25,757		21,855
Amount due to a related company		-	9
Current income tax liabilities		700	282
Borrowings		-	3,000
Lease liabilities		773	2,929
		29,120		29,963
Net current assets		97,982		102,700
Total assets less current liabilities		107,521		116,079

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		2021		2020
	Notes	HK$'000	HK$'000
Non-current liabilities
Deferred income tax liabilities		18		46
Lease liabilities		251		-
Convertible bonds		8,105	-
		8,374		46
Net assets		99,147		116,033
Equity attributable to the owners of the
Company
Share capital	9	2,800		2,800
Share premium	9	25,238		25,238
Reserves		71,109		87,995
Total equity		99,147		116,033

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