Telecom Service One : Announcement of Interim Results for the six months ended 30 September 2017

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 2017

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 2017 (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 2017

Three months ended 30 September

Six months ended 30 September

2017 2016 2017 2016

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

Revenue	Notes 3	(unaudited) 25,284	(unaudited) 26,161	(unaudited) 52,950	(unaudited) 47,759
Cost of sales	(11,844)	(14,102)	(25,343)	(27,171)
Gross profit	13,440	12,059	27,607	20,588
Other income	5	474	491	1,237	1,113
Other operating expenses, net	6	(2,432)	(3,082)	(4,988)	(5,531)
Administrative expenses	(3,512)	(3,441)	(7,433)	(6,367)
Finance costs	7	-	(46)	(1)	(116)
Profit before tax	7,970	5,981	16,422	9,687
Income tax expense	8	(1,179)	(908)	(2,855)	(1,505)
Profit for the period	9	6,791	5,073	13,567	8,182
Other comprehensive (expense)

income

Item that may be reclassified

subsequently to profit or loss:

Exchange differences arising on translation of foreign

operations (9) (4) 7 (27)

Total comprehensive income for

the period 6,782 5,069 13,574 8,155

Earnings per share (HK$)	11
Basic	0.0530	0.0423	0.1059	0.0676
Diluted	0.0529	0.0412	0.1058	0.0664

Condensed Consolidated Statement of Financial Position

As at 30 September 2017

30 September

2017

31 March

2017

HK$'000 HK$'000

Notes (unaudited) (audited)

Non-current assets

Plant and equipment 12 2,106 2,604 Deferred tax asset 824 765

2,930 3,369

Current assets

Inventories 2,757 4,789

Trade and other receivables 13 16,150 20,545

Amounts due from related companies 18(a) 389 2,380 Pledged bank deposits 62,317 28,744

Bank balances and cash 21,882 32,391

103,495 88,849

Current liabilities

Trade and other payables 14 6,868 6,872

Amounts due to related companies 18(a) 59 104

Tax payables 2,956 42

Bank borrowings 15 - 1,340

9,883 8,358

Net current assets 93,612 80,491

Net assets 96,542 83,860

Capital and reserves

Share capital 16 12,818 12,800 Reserves 83,724 71,060

Total equity 96,542 83,860

Condensed Consolidated Statement of Changes in Equity

For the six months ended 30 September 2017

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)

At 1 April 2016 (audited) 1 2 ,0 01 23, 944 7 0 ( 100) 5 2 2 1 3 7 1 0 0 17, 453 5 4 ,1 27

Profit for the period - - - - - - - 8,182 8,182 Exchange differences arising on

translation of a foreign operation - - - (27) - - - - (27)

Total comprehensive (expense)

income for the period - - - (27) - - - 8, 182 8,1 5 5

Dividends Note10 - - - - - - - (6,001) (6,001) Lapse of share options - - - - (5 6) - - 56 -

At 30 September 2016 (unaudited) 1 2 ,0 01 23, 944 7 0 ( 127) 4 6 6 1 3 7 1 0 0 19, 690 5 6 ,2 81

At 1 April 2017 (audited)	12,800	36,315	70	(163)	456	- - 34,382	83,860
Profit for the period Exchange differences arising on	-	-	-	-	-	- - 13,567	13,567

translation of foreign operations - - - 7 - - - - 7

Total comprehensive income

for the period - - - 7 - - - 13, 567 1 3 ,5 74

Recognition of equity-settled share-

based payment expenses Note 19 - - - - 69 - - - 69

Effect of share option

- Issue of shares upon

exercise 18 310 - - (7) - - - 321

- Lapse - - - - (30) - - 30 -

Dividends Note10 - - - - - - - ( 1 , 282) ( 1,2 8 2)

At 30 September 2017 (unaudited) 1 2 ,8 18 36, 625 7 0 ( 156) 4 8 8 - - 46, 697 9 6 ,5 42