Telecom Service One : Announcement of Interim Results for the six months ended 30 September 2016

Telecom Service One Holdings Limited

電訊首科控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8145)

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016 CHARACTERISTICS OF THE GROWTH ENTERPRISE MARKET ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate 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. The greater risk profile and other characteristics of GEM mean that it is a market more suited to professional and other sophisticated investors. Given the emerging nature of companies listed on GEM, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange 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 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.

This announcement, for which the directors of Telecom Service One Holdings 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 of 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.

THE FINANCIAL STATEMENTS

INTERIM RESULTS

The board of Directors (the "Board") of the Company announces the condensed consolidated financial results of the Company and its subsidiaries (collectively referred to as the "Group") for the six months ended 30 September 2016 (the "Period"), together with the corresponding comparative figures as follows:

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 September 2016

Three months ended 30 September Six months ended 30 September 2016 2015 2016 2015 HK$'000 HK$'000 HK$'000 HK$'000

Notes	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Revenue	3	26,161	29,537	47,759	62,313
Cost of sales	(14,102)	(17,269)	(27,171)	(35,696)
Gross profit	12,059	12,268	20,588	26,617
Other income	5	491	882	1,113	1,335
Other operating expenses, net	6	(3,082)	(3,892)	(5,531)	(8,322)
Administrative expenses	(3,441)	(4,277)	(6,367)	(7,477)
Finance costs	7	(46)	(51)	(116)	(118)
Profit before tax	5,981	4,930	9,687	12,035
Income tax expense	8	(908)	(177)	(1,505)	(1,734)
Profit for the period	9	5,073	4,753	8,182	10,301
Other comprehensive expense

Item that may be reclassified subsequently to profit or loss:

Exchange differences arising on translation of

foreign operations (4) (10) (27) (18)

Total comprehensive income for

the period 5,069 4,743 8,155 10,283

Earnings per share (HK$)	11
Basic	0.04	0.04	0.07	0.09

Diluted 0.04 0.04 0.07 0.08

CONDENSED CONSOLIDATED FINANCIAL POSITION	STATEMENT OF
As at 30 September 2016
Notes	30 September 31 March 2016 2016 HK$'000 HK$'000 (unaudited) (audited)
Non-current assets Plant and equipment 12	2,806 3,827
Deferred tax asset	639 514
3,445 4,341
Current assets Inventories	7,833 6,381
Trade and other receivables 13	17,773 21,539
Amounts due from related companies 18 Tax recoverable Pledged bank deposits	1,810 1,206 - 804 30,481 29,972
Bank balances and cash	8,964 16,908
66,861 76,810
Current liabilities Trade and other payables 14	7,777 6,151
Amounts due to related companies 18 Tax payables Bank overdrafts Bank borrowings 15	144 2,273 826 - 38 - 5,240 18,600
14,025 27,024
Net current assets	52,836 49,786
Net assets	56,281 54,127
Capital and reserves Share capital 16	12,001 12,001
Reserves	44,280 42,126
Total equity	56,281 54,127

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 September 2016

Share capital Share premium Other reserve Translation reserve Share options reserve Statutory reserve Warrant reserve Retained profits Total

HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000

Note (i) Note (ii)

- - - -	- - - 10,301	10,301
- - - (18)	- - - -	(18)

At 1 April 2015 (audited) 12,000 23,907 70 (60) - 137 100 18,986 55,140

Profit for the period Exchange differences arising

on translation of a foreign operation

Total comprehensive (expense) income

for the period - - - (18) - - - 10,301 10,283

-	-	- - 583	- - -	583
1 - -	37 - -	- - (7) - - (6) - - -	- - - - - 6 - - (18,002)	31 - (18,002)

Recognition of equity-settled share-based payment expenses Note19

Issue of shares upon exercise of share options

Lapse of share options Payment of dividend Note10

At 30 September 2015

(unaudited) 12,001 23,944 70 (78) 570 137 100 11,291 48,035

At 1 April 2016 (audited) 12,001 23,944 70 (100) 522 137 100 17,453 54,127

Profit for the period Exchange differences arising	- - - -	- - - 8,182	8,182
on translation of foreign operations	- - - (27)	- - - -	(27)
Total comprehensive (expense) income for the period	- - - (27)	- - - 8,182	8,155
Payment of dividend Note10 Lapse of share options	- - - - - - - - - (56)		- - (6,001) - - 56	(6,001) -

At 30 September 2016

(unaudited) 12,001 23,944 70 (127) 466 137 100 19,690 56,281