Telecom Service One : Final Results Announcement for the year ended 31 March 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) FINAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 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 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.

FINAL RESULTS

The board of Directors (the "Board") of the Company announces the audited consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the year ended 31 March 2017, together with the comparative figures for the year ended 31 March 2016:

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 March 2017	2017	2016
Notes	HK$'000	HK$'000
Revenue	3	105,445	122,494
Cost of sales	(54,826)	(68,102)
Gross profit	50,619	54,392
Other income	5	2,101	2,747
Other operating expenses, net	6	(10,316)	(14,655)
Administrative expenses	(14,871)	(15,281)
Finance costs	7	(140)	(285)
Profit before tax	27,393	26,918
Income tax expense	8	(4,743)	(4,537)
Profit for the year	9	22,650	22,381
Other comprehensive (expense) income Items that will not be reclassified to profit or loss:
Remeasurement of long service payment obligations	44	32
Items that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of
foreign operations	(63)	(40)
Other comprehensive expense for the year	(19)	(8)
Total comprehensive income for the year	22,631	22,373
Earnings per share (HK$) Basic	11	0.1863	0.1865
Diluted	0.1824	0.1826

CONSOLIDATED STATEMENT FINANCIAL POSITION	OF
At 31 March 2017
Notes	2017 HK$'000	2016 HK$'000
Non-current assets
Plant and equipment	2,604	3,827
Deferred tax asset	765	514
3,369	4,341
Current assets
Inventories	4,789	6,381
Trade and other receivables	12	20,545	21,539
Amounts due from related companies	2,380	1,206
Tax recoverable	-	804
Pledged bank deposits	28,744	29,972
Bank balances and cash	32,391	16,908
88,849	76,810
Current liabilities Trade and other payables	13	6,872	6,151
Amounts due to related companies	104	2,273
Tax payables	42	-
Bank borrowings	1,340	18,600
8,358	27,024

Net current assets 80,491 49,786

2017	2016
Note	HK$'000	HK$'000

Total assets less current liabilities 83,860 54,127

Non-current liability

Long service payment obligations - - Net assets 83,860 54,127

Capital and reserves

Share capital	14	12,800	12,001
Reserves	71,060	42,126

Total equity 83,860 54,127