Tradelink Electronic Commerce : 2020 Annual Results Announcement

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited 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.

Tradelink Electronic Commerce Limited ൱׸ஷཥɿ൱׸Ϟࠢʮ̡

(Incorporated in Hong Kong with limited liability)

(Stock Code: 536)

ANNOUNCEMENT OF FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2020

The board of directors (the "Board") of Tradelink Electronic Commerce Limited ("Tradelink" or the "Company") is pleased to announce the consolidated results of the Company and its subsidiaries (the "Group") for the year ended 31 December 2020.

FINANCIAL HIGHLIGHTS

Year ended	Year ended
31 December	31 December
2020	2019
Note	(HK$'000)	(HK$'000)
Revenue	3	261,213	337,175
Profit from operations	92,687	101,219
Profit attributable to equity shareholders of the Company	72,800	82,201
Total assets	586,245	592,293
Net assets	384,327	370,927
Dividend per share (HK cents)	8
Interim	1.95	3.3
Proposed final	7.25	6.5
Earnings per share (HK cents)
Basic	9	9.2	10.3
Diluted	9.2	10.3
Issued and fully paid ordinary shares (in '000)
As at 31 December	794,634	794,634
Weighted average number of ordinary shares (basic)
outstanding as at 31 December	794,634	794,634

CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the year ended 31 December 2020

2020	2019
Note	(HK$'000)	(HK$'000)
Revenue	3	261,213	337,175
Interest income	10,450	14,985
Other net income	5	6,137	1,611
Cost of purchases	(23,788)	(87,916)
Staff costs	6(a)	(120,824)	(119,143)
Depreciation	6(b)	(9,088)	(8,022)
Other operating expenses	6(c)	(31,413)	(37,471)
Profit from operations	92,687	101,219
Reversal/(recognition) of impairment loss
on other financial assets	12	99	(1,303)
Impairment loss on interest in an associate	10	(9,000)	(4,500)
Share of results of associates	(1,395)	798
Profit before taxation	6	82,391	96,214
Taxation	7	(9,591)	(14,013)
Profit for the year	72,800	82,201
Earnings per share (HK cents)	9
Basic	9.2	10.3
Diluted	9.2	10.3

Details of dividends payable to equity shareholders of the Company are set out in Note 8.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 December 2020

2020 (HK$'000)

2019 (HK$'000)

Profit for the year

Other comprehensive income for the year

(after tax and reclassification adjustments):

Items that may be reclassified subsequently to profit or loss:

Exchange differences on translation of financial statements of the operations outside Hong Kong

72,800 82,201

944 (477)

Debt securities measured at fair value through other comprehensive income ("FVOCI") - net movement in fair value reserve

6,015 11,511

Total comprehensive income for the year

79,759 93,235

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2020

2020	2019
Note	(HK$'000)	(HK$'000)
Non-current assets
Property, plant and equipment	24,064	23,710
Goodwill	9,976	9,976
Interest in associates	10	4,542	13,977
Other financial assets	12	69,914	279,118
Deferred tax assets	13	652	1,230
109,148	328,011
Current assets
Trade receivables and contract assets	14	64,711	63,587
Other receivables, prepayments and other contract costs	15	16,503	18,749
Other financial assets	12	222,215	38,524
Deposits with banks	69,073	12,238
Cash and cash equivalents	102,956	131,184
Taxation recoverable	1,639	-
477,097	264,282
Current liabilities
Trade creditors, contract liabilities and other payables	16	196,313	204,893
Taxation payable	226	11,859
196,539	216,752
Net current assets	280,558	47,530
Total assets less current liabilities	389,706	375,541
Non-current liabilities
Provision for long service payments	3,012	3,120
Deferred tax liabilities	13	1,167	1,030
Other payables	16(d)	1,200	464
5,379	4,614
NET ASSETS	384,327	370,927
Capital and Reserves
Share capital	17	296,093	296,093
Reserves	88,234	74,834
TOTAL EQUITY	384,327	370,927