Profit Before Tax up 39.7% to HK$10.8 Million Revenue up 15.4% to HK$331.4 Million with Net Profit up 9.4% to HK$8.7 Million Continues to Expand Cross-territories Business in Greater China
News Release – August 30, 2010
(Hong Kong, 30 August 2010) – Automated Systems Holdings Limited (“ASL” or “the Group”) (SEHK stock code: 771), a leading IT service provider in Hong Kong, announced its quarterly results for the three months period ended 30 June 2010 with revenue from the continuing operations amounting to HK$331.4 million, higher by HK$44.3 million or 15.4% compared to the corresponding period in 2009. Net profit for the three months period ended 30 June 2010 was HK$8.7 million, increased by 9.4% compared with the corresponding period last year that included the discontinued operations. Basic earnings per share for the period under review were HK 2.80 cents (For the 3 months period ended 30 June 2009: HK 2.14 cents).
The increase in revenue was mainly attributed by the increase in both product sales and service revenue in the commercial and public sectors. The discontinued operations of the Global Managed Service Business (“GMS business”) were disposed by the Group in August 2009. During the three months period ended 30 June 2010, profit before income tax from the continuing operations was HK$10.8 million, higher by 39.7% compared to the corresponding period in 2009.
The Group continues to maintain a healthy balance sheet with cash of approximately HK$204.0 million as at 30 June 2010. No debt was recorded during the period under review and the working capital ratio was 1.84:1. The Group’s order book balance carried a total value of approximately HK$550.0 million.
Mr. Lai Yam Ting, CEO of Automated Systems Holdings Limited, said, “As the global economy undergoes a gradual recovery, we are pleased to deliver a steady performance for the 3 months period ended 30 June 2010. We are gratified that the Group has made significant and consistent achievements within the IT infrastructure, solution and services businesses. Notably, we received continuing demands from the financial services and insurance sector. By virtue of our presence and the signs of recovery in this sector, we have started to gain the benefits from more activities and increasing IT spending.”
Product sales and service revenue from continuing operations for the 3 months period ended 30 June 2010 was HK$196.1 million and HK$135.3 million, increased by 12.5% and 19.9% respectively compared with 2009, contributing 59.2% and 40.8% to the total revenue from continuing operations respectively. Commercial and public sector sales from the continuing operations for the 3 months period ended 30 June 2010 was HK$172.8 million and HK$158.6 million, accounted for 52.1% and 47.9% of the revenue from continuing operations respectively, against 47.6% and 52.4% in the same period last year.
The Group’s continued strategy to promote cross-territories business in Greater China was rewarded with satisfactory results. In addition to winning more bids within the PRC’s public sector, the Group was also able to secure contracts in wider service offerings from customers who were making investments in the PRC. One notable deal was the deployment of two multi-million dollar storage projects (totaling over HK$5 million) for one of the largest regional shipping companies for its Hong Kong and Shenzhen offices to facilitate its expansion.
Efforts to further explore regional business opportunities in Asia Pacific after the termination of the territorial agreement with Computer Sciences Corporation, the Group’s former controlling shareholder, have also yielded encouraging results. Of note was a regional application virtualisation project worth million-plus dollars from one of the key carriers on the North-South trade route. This project involved a wide territorial deployment across 10 cities in Asia Pacific including the Group’s existing presence in Hong Kong, Taiwan, Guangzhou, Shanghai and Shenzhen and new coverage in Singapore, Tianjin, Qingdao, Ningbo and Xiamen. The project aptly demonstrates the edge of the Group’s strategic footprint in the region and its strength in providing total solution deployment services on a regional basis.
Looking ahead, it is expected that business from the commercial sector will continue to improve as compared to last year. Besides, the Group will retain its core strategy of promoting cross-territories business with an aim to become one of the leading IT service providers in Greater China. Under the ‘renminbi cross-border trade settlement scheme’, the Group sees ample business opportunities from the commercial sector in the Pearl River Delta region and other parts of the PRC. In August 2010, the Group secured another multi-million dollar IT infrastructure contract to enhance the stock trading system for a leading global investment bank.
With the Economic Cooperation Framework Agreement and the cross-strait financial supervisory cooperation Memorandum of Understanding (MOU) (兩岸金融監理合作瞭解備忘錄) allowing Taiwanese corporations and financial institutions to enter PRC and vice versa, the Group expects a closer relationship across the strait which will offer greater business opportunities. A framework agreement for Guangdong-Macau co-operation has also been proposed. One of the major items of the framework agreement is the development of Hengqin Island as a cultural and industrial base which will likely stimulate closer co-operation between Guangdong, Hong Kong and Macau, thus providing more business opportunities.
Mr. Lai concluded, “We expect that there will be closer collaboration between regions under the favourable policies proposed, thus providing more business opportunities. With greater synergies between us and the group of Beijing Teamsun Technology Co., Ltd, our ultimate controlling shareholder, together with our competitive advantages including our solid financial fundamentals, strong customer relationships, solid IT expertise and tightened relationships with leading vendors, we are able to grow sustainably within existing operations by providing higher quality services to customers and we will take an active approach to seize regional growth opportunities.”
Appendix: Major Contracts & Tenders Secured by ASL for the 3 months ended 30 June 2010
Hong Kong Customers
Scope of Work
|A leading international bank||Implementation of over HK$5 million dollars IT infrastructure project for stock trading system upgrade|
|An education, training and professional development group||Provision of supply, installation, commissioning and maintenance of servers and storage systems replacement for an e-learning, staff email and smartcard database system|
|A government department||A multi-million dollar contract for the system analysis and design, system implementation and integration and system maintenance and support of the Contract Staff Payroll System|
|A government department||Provision of system maintenance and support for a core record information system|
|A leading independent brokerage and investment group in Asia||Provision of help desk and maintenance services|
|An independent non-governmental statutory body||A multi-million dollar project for the provision of helpdesk and data center operation support services|
Scope of Work
|Guangzhou Administration for Industry and Commerce Bureau Panyu Substation
|A virtualization upgrade project|
|One of the world’s leading hospitality companies||Provision of high-end storage and backup system for mission critical applications|
|Bank for Agriculture And Agricultural Cooperatives||Implementation of an IT infrastructure upgrade project for the provision of desktop computers and printers|
|Team Precision Public Co. Ltd.||Enhancement of a server-based computing system|
|A leading international bank||Implementation of a security system upgrade project with 3-year maintenance and onsite support services|
|A leading global investment bank||Provision of enterprise servers|
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