ITE : Annual Results Announcement for the Year Ended 31 March 2019

ITE (HOLDINGS) LIMITED

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8092)

ANNUAL RESULTS ANNOUNCEMENT

FOR THE YEAR ENDED 31 MARCH 2019

CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE

OF HONG KONG LIMITED (THE "EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a high investment risk may be attached than other companies listed on the 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 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.

The Hong Kong Exchanges and Clearing Limited and the Exchange 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 this announcement.

This announcement, for which the directors (the "directors") of ITE (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 (the "GEM Listing Rules") of the Exchange 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 in this announcement misleading.

- 1 -

FINAL RESULTS

The board of directors (the "board") of the company is pleased to announce the audited consolidated results of the company and its subsidiaries ("ITE" or the "group") for the year ended 31 March 2019, together with the comparative audited figures for the previous year.

Consolidated Statement of Profit or Loss and Other Comprehensive Income

	Note	2019	2018
		HK$'000	HK$'000
Revenue	3, 4	24,791	25,436
Cost of services rendered		(17,120)	(14,635)
Cost of sales		(157)	(200)
Gross profit		7,514	10,601
Other revenue and other (losses)/gains, net		(38)	352
Administrative expenses		(10,422)	(9,650)
Finance costs		(510)	-
(Loss)/profit before taxation	5	(3,456)	1,303
Income tax credit	6	-	19
(Loss)/profit for the year attributable to
owners of the company		(3,456)	1,322
Other comprehensive (expense)/income for the year
Item that may be reclassified subsequently to profit or loss:
- Exchange differences on translation of foreign		-	-
operations, net of nil tax
Total comprehensive (expense)/income for the year		(3,456)	1,322
(Loss)/earning per share	8
Basic and diluted (HK cents)		(0.37)	0.14

- 2 -

Consolidated Statement of Financial Position
		Note	2019	2018
			HK$'000	HK$'000
	Non-current assets
	Property, plant and equipment		3,716	200
	Interest in an associate		-	-
	Goodwill		-	-
			3,716	200
	Current assets
	Inventories		1,348	1,254
	Trade and other receivables	9	10,292	8,939
	Loans to an associate		-	400
	Financial assets at fair value through profit or loss		85	2,092
	Income tax recoverable		49	-
	Pledged bank deposits		11,540	2,000
	Cash and cash equivalents		4,574	6,855
			27,888	21,540
	Current liabilities
	Trade and other payables	10	4,229	6,205
	Obligations under finance leases		750	-
	Loans from related parties		11,600	-
	Provisions		854	722
			17,433	6,927
	Net current assets		10,455	14,613
	Total assets less current liabilities		14,171	14,813
	Non-current liabilities
	Obligations under finance leases		2,247	-
	Net assets		11,924	14,813
	Capital and reserves
	Share capital		9,255	9,255
	Reserves		2,669	5,558
	Total equity		11,924	14,813

- 3 -

Consolidated Statement of Changes in Equity

			Attributable to owners of the company
					Share
	Share	Share	Merger	Exchange	option	Accumulated
	capital	premium	reserve	reserve	reserve	losses	Total
	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
At 1 April 2017	9,255	20,240	10,749	370	1,721	(29,192)	13,143
Changes in equity for the year:
Profit for the year	-	-	-	-	-	1,322	1,322
Exchange differences on translation of
foreign operations, net of nil tax	-	-	-	-	-	-	-
Total comprehensive income	-	-	-	-	-	1,322	1,322
for the year
Equity-settledshare-based payments	-	-	-	-	348	-	348
At 31 March 2018	9,255	20,240	10,749	370	2,069	(27,870)	14,813
and 1 April 2018
Changes in equity for the year:	-	-	-	-	-	(3,456)	(3,456)
Loss for the year
Exchange differences on translation of
foreign operations, net of nil tax	-	-	-	-	-	-	-
Total comprehensive expense	-	-	-		-	(3,456)	(3,456)
for the year
Equity-settledshare-based payments	-	-	-	-	567	-	567
Lapse of share options	-	-	-	-	(52)	52	-
At 31 March 2019	9,255	20,240	10,749	370	2,584	(31,274)	11,924

- 4 -

Notes:

1. Basis of preparation of consolidated financial statements
   These consolidated financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. These consolidated financial statements also comply with the applicable disclosure provisions of the GEM Listing Rules.
   The measurement basis used in the preparation of the consolidated financial statements is the historical cost basis except as otherwise stated in the significant accounting policies.
2. Changes in accounting policies
   The HKICPAhas issued a number of new HKFRSs and amendments to HKFRSs that are first effective for the current accounting period of the group. Of these, the following developments are relevant to the group's consolidated financial statements:
3. • HKFRS 9, Financial instruments
   • HKFRS 15, Revenue from contracts with customers
   • HK(IFRIC) 22, Foreign currency transactions and advance consideration

The directors of the company concluded that save as presentation of contract assets and liabilities, there is no significant impact on the group's financial position and financial result upon above initial application at 1 April 2018.

The group has not applied any new standard or interpretation that is not yet effective for the current accounting period.

3.	Revenue
		2019	2018
		HK$'000		HK$'000
	Provision of smartcard systems,
	radio frequency identification ("RFID") and
	information technology ("IT") services
	- Service revenue	14,044		13,705
	- Income from maintenance services	10,326		11,229
	- Sales of service related products	421		502
		24,791	25,436

- 5 -