Third Quarterly Report 2021

T h i rd Qu a r t e r l y Re p o r t 2 0 2 1

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.

This report, 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 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.

THIRD QUARTERLY REPORT 2021 | ETS GROUP LIMITED

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FINANCIAL SUMMARY

The Group's total revenue for the nine months ended 30 September 2021 was approximately HK$75,994,000 representing an increase of approximately 0.2% as compared with the total revenue of approximately HK$75,870,000 for the corresponding period in 2020.

Loss attributable to owners of the Company for the nine months ended 30 September 2021 was approximately HK$4,196,000, representing a decrease of approximately 372.8% as compared with the profit attributable to owners of the Company of approximately HK$1,538,000 for the corresponding period in 2020.

Loss per share for the nine months ended 30 September 2021 was approximately HK1.5 cents (Earnings per share for nine months ended 30 September 2020: approximately HK0.5 cents).

2 THIRD QUARTERLY REPORT 2021 | ETS GROUP LIMITED

UNAUDITED RESULTS

The board of Directors (the "Board") of the Company is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the three months and nine months ended 30 September 2021 together with the comparative figures for the corresponding periods ended 30 September 2020, as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)

For the three months and nine months ended 30 September 2021

		Three months ended	Nine months ended
		30 September	30 September
		2021	2020	2021	2020
	Notes	HK$'000	HK$'000	HK$'000	HK$'000
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
Revenue	3	24,808	21,364	75,994	75,870
Other income		64	7,117	217	8,302
Other losses - net		(161)	(2,436)	(38)	(2,394)
Employee benefits expenses		(18,698)	(18,494)	(55,236)	(58,704)
Depreciation and amortization		(2,498)	(2,898)	(7,726)	(9,233)
Other operating expenses		(6,047)	(4,062)	(16,184)	(11,265)
Operating (loss)/profit		(2,532)	591	(2,973)	2,576
Finance costs		(8)	(85)	(120)	(306)
(Loss)/Profit before tax		(2,540)	506	(3,093)	2,270
Income tax expense	4	(343)	(344)	(1,103)	(732)
(Loss)/Profit for the period		(2,883)	162	(4,196)	1,538
Total comprehensive (expense)/income
for the period		(2,883)	162	(4,196)	1,538
(Loss)/Profit attributable to owners of the
	(2,883)		(4,196)
Company		162	1,538
Total comprehensive (expense)/income
	(2,883)		(4,196)
attributable to owners of the Company		162	1,538
(Loss)/Earnings per share attributable to
owners of the Company		(1.0)		(1.5)
- Basic and diluted (HK cents)	6	0.1	0.5

THIRD QUARTERLY REPORT 2021 | ETS GROUP LIMITED

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NOTES TO THE FINANCIAL INFORMATION

For the nine months ended 30 September 2021

1. GENERAL INFORMATION
   The Company was incorporated in the Cayman Islands on 29 June 2011 as an exempted company with limited liability under the Companies Law of the Cayman Islands. The shares of the Company have been listed on the GEM of the Stock Exchange with effect from 9 January 2012 (the "Listing Date").
2. BASIS OF PREPARATION AND PRINCIPAL ACCOUNTING POLICIES
   The Group's unaudited condensed consolidated third quarterly financial information has been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and the applicable disclosure requirements of the GEM Listing Rules.
   The accounting policies and basis adopted in preparing the unaudited condensed consolidated third quarterly financial information were consistent with those applied for the consolidated financial statements of the Group for the year ended 31 December 2020.
   The HKICPA has issued certain new and revised Hong Kong Financial Reporting Standards ("HKFRSs"). For those which are effective for accounting periods beginning on or after 1 January 2021, the adoption has no material impact on how the results and financial positions of the Group for the current and prior periods have been prepared and presented. For those which are not yet effective and have not been early adopted in prior accounting periods, the Group is in the process of assessing their impact on the Group's results and financial position.

4 THIRD QUARTERLY REPORT 2021 | ETS GROUP LIMITED