Financial Performance - The company reported revenue of HKD 85,399,000 for the first quarter of 2023, a decrease of 3.45% compared to HKD 88,453,000 in the same period of 2022[4] - The operating loss for the period widened to HKD 12,315,000, compared to an operating loss of HKD 7,019,000 in the first quarter of 2022[8] - The net loss for the period was HKD 10,619,000, compared to a net loss of HKD 6,227,000 in the same quarter of the previous year[8] - The basic loss per share for the period was HKD 0.0172, compared to HKD 0.0089 in the same period last year[10] - The loss for the quarter expanded to HKD 10,619,000 due to a weak revenue base and increased sales, marketing, and administrative expenses[35] Contracts and Revenue Generation - The company secured contracts worth HKD 28,700,000 from the Macau government and other vertical market clients during the period[7] - The mainland China team obtained contracts valued at HKD 21,800,000, with 65% of the total value attributed to software-defined wide area network infrastructure[7] - The total contract value obtained in Macau, Hong Kong, and mainland China during the three-month period was HKD 83,300,000, a decrease of 19.47% compared to the first quarter of 2022[21] - The total contract value obtained in mainland China was HKD 21,800,000, down from HKD 23,100,000 in the first quarter of 2022[26] - The Macau team of Vodatel Holdings Limited secured new orders worth HKD 16,600,000 during the three-month period, focusing on upgrading and expanding existing monitoring systems[23] - The Hong Kong team successfully obtained new contracts valued at HKD 13,500,000, an increase of 17.95% compared to the same period last year[24] Cash and Financial Position - The company has a cash balance and financial instruments valued at HKD 102,838,000 as of March 31, 2023[7] - As of March 31, 2023, cash and cash equivalents totaled HKD 102,838,000, representing approximately 28.18% of the company's total assets[35] - The company's equity base remained stable at HKD 199,796,000 as of March 31, 2023[35] - The company continues to maintain a solid capital structure with no external borrowings[35] Shareholder Information - The company reported a total shareholding of 357,945,500 shares, representing approximately 58.10% of the issued share capital as of March 31, 2023[79] - José Manuel dos Santos holds full ownership of ERL, which is the entity holding the shares[79] - The company did not repurchase any shares during the three-month period ending March 31, 2023[61] - There were no purchases or sales of shares by the company or its subsidiaries during the same period[61] Strategic Developments - The company entered into a conditional sale agreement with the East Timor government to acquire a 57.06% stake in TTSA for HKD 42,702,000 in cash, along with assuming debts valued at over HKD 123,005,000[4] - The company is closely monitoring developments regarding the approval of the transaction by the East Timor Audit Office[33] - The company is focused on expanding its market presence in East Timor through Timor Telecom, S.A.[72] - The company is committed to developing new technologies and products to enhance its service offerings[72] Regulatory Compliance - The company is subject to the regulations set forth by the Hong Kong Stock Exchange and the GEM listing rules[72] - The company aims to maintain compliance with the Securities and Futures Ordinance as amended from time to time[72] Operational Challenges - The company has a backlog of over HKD 70,000,000 in the delivery of switches and high-end routers, with only slight improvement in delivery times[4] - The delivery period for over HKD 70,000,000 worth of switches and high-end routers has only slightly improved, impacting revenue generation[34] - Sales, marketing, and administrative expenses increased by over HKD 3,000,000 due to employee travel for various supplier events and client visits[30] - The company wrote off HKD 2,353,000 of additional tier 1 bonds following an announcement by the Swiss Financial Market Supervisory Authority[30] Gaming Revenue - The total revenue from gaming in the three-month period reached HKD 33,584,000,000, nearly doubling from HKD 17,231,000,000 in the first quarter of 2022[22] - The gross profit margin slightly increased by 1.47 percentage points to 18.80%, despite competitive pressures in the gaming operations and software-defined networking sectors[34]

香港交易及結算所有限公司（在香港註冊成立的有限公司）及聯交所對本文件之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本文件全部或任何部分內 容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 VODATEL NETWORKS HOLDINGS LIMITED 愛達利網絡控股有限公司* （在百慕大註冊成立的有限公司） 股份代號：八○三三 三 個 月 期 間 業 務 及 財 務 摘 要 (cid:129) 任 何 年 度 的 首 數 個 月 就 新 業 務 而 言 傳 統 上 會 有 所 放 緩，加 上 積 壓 逾 70,000,000港元的交換機及高端路由器的交付期僅略有改善，故本集團 錄得收益85,399,000港元，較二〇二二年第一季度的88,453,000港元下跌 3.45% (cid:129) 由於收益基礎薄弱、銷售、市場推廣及行政費用增加及全數撇減其持 有由CS Group發行的2,353,000港元額外一級債券，本期間的虧損擴大至 10,619,000港元 (cid:129) 萬訊自澳門政府及其他垂直市場客戶獲取價值28,700,000港元的合約 (cid:129) 中國 ...

Financial Performance - The total contract value achieved by the company reached HKD 574,700,000, marking an increase of over 33% from HKD 420,000,000 in 2021, the highest since 2015[43] - Revenue for the year grew to HKD 491,567,000, a year-on-year increase of 19.00% from HKD 413,079,000 in 2021[27] - The gross profit margin decreased significantly from 23.62% in 2021 to 18.31% in the current year, a drop of over five percentage points[27] - The company turned a profit with a pre-tax profit of HKD 3,441,000, recovering from a pre-tax loss of HKD 5,450,000 in the previous year[43] - The total contract value from the mainland China market grew by an impressive 95.84% year-on-year, with a total contract value of HKD 236,000,000[24] Contract and Market Performance - The Hong Kong team signed contracts worth HKD 46,900,000, a decrease of 20.53% compared to the total contract value obtained in 2021[23] - Over 90% of the contracts obtained are related to data networks and software-defined wide area network infrastructure, maintaining a consistent share of approximately 40%/60% in both 2021 and the current year[23] - The total value of contracts signed by the group reached a new low of HKD 44,700,000, a decrease of 6.27% compared to 2021, representing only 19% of the total contracts signed in 2019 from the gaming industry[49] - The group secured contracts worth HKD 221,000,000 from the Macau government and other key vertical markets, reflecting an annual growth of 8.59%[50] - Contracts for software-defined wide area network infrastructure increased by 41.08% to HKD 62,600,000, driven by successful marketing strategies with various communication service providers[52] Operational Changes and Employee Management - Employee costs decreased from HKD 71,093,000 in 2021 to HKD 64,273,000 in the current year, due to measures such as natural attrition and a voluntary redundancy plan[55] - The total number of employees decreased from 168 in 2020 to 155 in 2021, reflecting the company's efforts to streamline operations[55] - The company has established R&D facilities in Shanghai and a 24-hour service center in mainland China, indicating a focus on market expansion[42] Financial Management and Debt - The debt-to-equity ratio as of December 31, 2022, was 14.78%[88] - The group utilized HKD 30,792,000 in bank financing to manage cash flow during a peak funding demand period[88] - As of December 31, 2022, the group's cash and cash equivalents, along with financial instruments, totaled HKD 65,529,000[88] - The revaluation of TTSA increased the equity base to HKD 208,296,000[88] - All bank overdrafts were fully repaid by January 2023, restoring the balance sheet to a debt-free status[88] Governance and Compliance - The company confirmed compliance with the GEM Listing Rules regarding the independence of non-executive directors[139] - The audit committee reviewed financial reports for the year ending December 31, 2021, and the six months ending June 30, 2022[150] - The auditor's remuneration for the year was HKD 1,250,000[164] - The board approved interim and annual financial statements during the year[160] - The company has made several amendments to its articles of association to comply with the GEM Listing Rules[152] Environmental and Social Responsibility - The company emphasizes the importance of environmental management, supporting the "Three Rs" principle: Reduce, Reuse, and Recycle, to minimize waste[184] - The company has identified significant environmental, social, and governance (ESG) factors, including greenhouse gas emissions and resource usage, for prioritization and management[181] - The company aims to maintain its carbon dioxide emissions at current levels, focusing on energy consumption during office hours[190] - The company is committed to continuous compliance monitoring regarding regulatory developments to mitigate environmental impacts[187] Strategic Focus and Future Plans - The company is exploring partnerships with suitable suppliers to navigate the non-gaming sector in Macau, as the region recovers from COVID-19[44] - The group continues to focus on essential expenditures while avoiding major capital spending due to the cautious investment sentiment among gaming operators[49] - The group anticipates significant operational and financial consequences due to potential supply chain disruptions[88] Diversity and Inclusion - The company has implemented fair recruitment processes based on merit, without specific gender ratio targets, to ensure equal opportunity[178] - The company emphasizes the importance of board diversity to achieve strategic goals and sustainable development[198] - As of December 31, 2022, the workforce composition was approximately 75% male and 25% female, reflecting the nature of the business with a predominance of male frontline employees[178] - All senior management has been with the company for over 15 years, and there is a challenge in recruiting and retaining female employees in the IT and network sectors, particularly in Macau and mainland China[199]

香港交易及結算所有限公司（在香港註冊成立的有限公司）及聯交所對本文件之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本文件全部或任何部分內 容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 VODATEL NETWORKS HOLDINGS LIMITED 愛達利網絡控股有限公司* （在百慕大註冊成立的有限公司） 股份代號：八○三三 本年度業務及財務摘要 (cid:129) 以中國內地為主要增長引擎，本集團取得合約總值達574,700,000港元，不 僅按年增長33.44%，更回復至疫情前水平 (cid:129) 本年度的收益增長至491,567,000港元，較二〇二一年按年增長19.00% (cid:129) 由於來自博彩運營商的工作僧多粥少，導致競爭激烈，來自其他軟件定義 廣域網絡供應商的競爭加劇，以及管理服務及相關伺服器批量供應的利 潤率低，毛利率驟降至18.31% (cid:129) 由於工資及薪金進一步下降至64,273,000港元，加上通過環境、社會及管治 計劃節省的成本及出售虧損實體的收益，所錄得的除稅前利潤為3,441,000 港元，而上一年度為除稅前虧損5,45 ...

Financial Performance - Total contract value obtained during the nine-month period reached HKD 463,000,000, approximately 1.1 times the total contract value signed in the entire year of 2021[4] - Revenue for the three-month period was HKD 122,758,000, bringing total revenue for the nine-month period to HKD 289,846,000, an increase of 5.91% compared to the same period in 2021[4] - Net profit for the nine-month period recorded at HKD 8,395,000, supported by a reduction in sales, marketing, and administrative expenses by HKD 9,283,000[4] - The group recorded operating profit of HKD 5,969,000 for the nine-month period, compared to a loss of HKD 5,704,000 in the previous year[6] - The group reported total revenue of HKD 289,846,000 for the nine-month period, a 5.91% increase from HKD 273,679,000 in the same period last year[33] - Gross profit for the nine-month period was HKD 65,727,000, with a gross margin of 22.68%, down from the previous year's HKD 69,369,000[33] - The group achieved a net profit of HKD 8,395,000 for the nine-month period, compared to a net loss of HKD 6,639,000 in the same period last year[35] Contract Acquisition - The company secured contracts worth HKD 169,400,000 focused on the Macau government and other vertical market clients[4] - The Hong Kong team signed contracts valued at HKD 62,400,000, while the mainland China team secured contracts worth HKD 206,600,000, approximately 1.3 times and 1.7 times the total contract value signed in 2021 respectively[4] - The company obtained a series of data network infrastructure contracts worth HKD 115,700,000 for new data centers in Europe and North America[4] - The mainland China market remains the primary revenue source, with contracts valued at HKD 206,600,000 during the nine-month period, contributing approximately 45% to the total contracts signed[29] - The group secured contracts worth HKD 37,400,000 from various gaming operators in Macau during the nine-month period, reflecting a cautious capital expenditure approach[26] - Contracts obtained from the Macau government and other vertical markets amounted to HKD 169,400,000, covering areas such as network infrastructure, monitoring, and software development[26] Shareholder Information - The company does not recommend the payment of an interim dividend for the nine-month period[4] - The group does not recommend paying an interim dividend for the nine-month period to retain cash for business operations[36] - As of September 30, 2022, José Manuel dos Santos holds 357,945,500 shares, representing 58.10% of the company's issued share capital[38] - The total personal equity of the key individual is 22,952,500 shares, which is held beneficially[39] - The personal equity of another key individual, 罗嘉雯, includes 3,292,500 shares, also held beneficially[41] - The major shareholders holding 5% or more of the company's issued share capital were disclosed, excluding the interests of directors and executives[41] - The equity held by ERL and OHHL is 357,945,500 shares, which also represents 58.10% of the company's issued share capital[44] - The company has not disclosed any competitive business interests among its directors or major shareholders[41] Operational Challenges - The company experienced a significant drop in visitor numbers from mainland China, plummeting from 336,488 in June to 7,321 in July due to COVID-19 outbreaks[25] - Monthly total revenue for the gaming sector fell to HKD 386 million in July, the lowest since February 2020[25] - The company faced ongoing challenges in the gaming business environment due to the lingering effects of the COVID-19 pandemic and upcoming public bidding announcements for gaming licenses[25] Future Outlook and Strategy - The company provided a future outlook, projecting a revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion[52] - New product development includes the launch of a next-generation telecommunications service expected to generate an additional HKD 300 million in revenue[52] - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% market share within the next two years[52] - A strategic acquisition of a local telecom firm is in progress, which is anticipated to enhance the company's service offerings and customer base[52] - The company plans to invest HKD 150 million in research and development for innovative technologies over the next year[52] - The management highlighted a focus on improving operational efficiency, aiming for a 5% reduction in operational costs by the end of the fiscal year[52] - The company has set a performance guidance of achieving EBITDA margins of 30% for the upcoming quarter[52] - The board emphasized the importance of maintaining strong shareholder returns, with a proposed dividend increase of 10%[52] Equity and Share Repurchase - The company sold a 32.36% equity interest in a subsidiary, which was classified as a discontinued operation[11] - The company did not repurchase any shares during the nine-month period[46] - The company or its subsidiaries did not buy or sell any shares during the nine-month period[46] - The weighted average number of shares used for calculating diluted EPS was 620,754 thousand shares for the nine-month period[19]

Financial Performance - Total contract value for the six-month period reached HKD 279,500,000, a significant increase of 39.12% compared to the same period in 2021[5] - Revenue for the three-month period was HKD 78,635,000, and for the six-month period was HKD 167,088,000, representing declines of 8.31% and 15.51% respectively compared to the same periods in 2021[5] - The company recorded a net profit of HKD 1,823,000 for the three-month period, while the net loss for the six-month period decreased to HKD 4,404,000[5] - The total revenue from external customers for the six-month period was HKD 167,088,000, with contributions of HKD 60,037,000 from Mainland China and HKD 107,051,000 from Hong Kong and Macau[29] - The company reported a basic loss per share of HKD (0.51) for the six-month period, compared to HKD (0.60) in the previous period[72] - The company incurred a loss attributable to equity holders from continuing operations amounting to HKD (3,156,000) during the six-month period[79] - The gross profit margin decreased to 20.57% for the six-month period due to intense competition in Hong Kong, particularly in Macau[95] - The total comprehensive loss for the first half amounted to (11,911) thousand HKD, an increase from (8,386) thousand HKD in the prior year[13] Contract Acquisition - The total contract value obtained from the Macau government and other vertical market clients during the six-month period was HKD 89,500,000[5] - The mainland China team secured contracts worth HKD 100,700,000 in the three-month period, bringing the total for the six-month period to HKD 128,900,000, which is 107% of the total contracts obtained in 2021[5] - The company continues to focus on expanding its network technology services in Europe, securing contracts worth HKD 65,900,000 for building data network infrastructure[5] - The company secured contracts worth HKD 44,200,000 from the Macao government and other vertical markets during the three-month period[87] - The company obtained a total contract value of HKD 89,500,000 from non-gaming sectors during the six-month period, including a low-voltage contract valued at approximately HKD 18,000,000 for a new hospital under construction[87] - The company continues to focus on obtaining contracts from the Macao government and other vertical markets amid challenges in the gaming industry[87] Cash and Assets Management - The company maintained a strong capital structure with cash and cash equivalents totaling HKD 98,672,000 as of June 30, 2022, representing approximately 28% of total assets[5] - Cash and cash equivalents, excluding bank overdrafts, decreased to 45,316 thousand HKD from 26,965 thousand HKD year-over-year[16] - The company’s total assets increased to 352,667 thousand HKD from 339,381 thousand HKD year-over-year[16] - The total trade receivables as of June 30, 2022, amounted to HKD 118,446, a decrease from HKD 123,434 as of December 31, 2021[65] - The company reported trade payables of HKD 75,446 as of June 30, 2022, slightly down from HKD 76,126 as of December 31, 2021[67] - The company’s equity attributable to owners decreased to 170,647 thousand HKD from 187,471 thousand HKD year-over-year[20] Operational Efficiency - TTSA's operational performance has shown continuous improvement, recording net profit growth for the fifth consecutive quarter[5] - The company continues to focus on cost control, reducing sales, marketing, and administrative expenses from HKD 47,656,000 in 2021 to HKD 46,379,000[96] - The cash outflow from investing activities was HKD 2,077,000, a significant improvement from a cash outflow of HKD 12,294,000 in the previous period[24] - The financing activities resulted in a net cash outflow of HKD 4,172,000, compared to HKD 863,000 in the previous period[24] Dividend and Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the six-month period[5] - The company did not recommend the payment of an interim dividend for the six-month period ended June 30, 2021[37] - The major shareholder ERL holds 58.10% of the company's issued share capital, equivalent to 357,945,500 shares[118] Governance and Compliance - The company has adopted the principles of the Corporate Governance Code, with some exceptions regarding attendance at the annual general meeting and monthly updates to the board[124] - The company has complied with the GEM Listing Rules regarding the conduct of securities trading by directors, with no violations reported[125] - There were no competitive business interests held by any directors or individuals with significant voting rights as of June 30, 2022[122] Market Conditions - The number of visitors from mainland China dropped from 534,899 in April to 336,488 in June due to the impact of the Omicron variant[85] - The gaming revenue in Macao decreased from HKD 17,232,000,000 in the first quarter to HKD 8,236,000,000 in the subsequent three-month period[85] - The company will closely monitor any potential long-term impacts on its business due to the Macao government's dynamic zero-COVID policy[88]

Financial Performance - Revenue for the three-month period was HKD 88,453,000, a decrease of approximately 21.02% compared to HKD 111,990,000 in the first quarter of 2021[4] - Gross profit was HKD 15,325,000, with a gross margin of 17.33%, while the net loss for the period was HKD 6,227,000 compared to a profit of HKD 1,163,000 in the same period last year[4] - The company reported a basic loss per share of HKD 0.89 for the current period compared to a profit of HKD 0.50 in the same period last year[8] - The company’s financing income for the period was HKD 819,000, with financing costs of HKD 30,000[6] - The company reported a net loss of HKD 6,227,000 for the quarter, compared to a net profit of HKD 1,163,000 in the same period last year[39] - The gross profit recorded was HKD 15,325,000, resulting in a gross margin of only 17.33% due to intense competition in the gaming sector[39] - The basic loss per share from continuing operations was HKD (0.89) for the three months ended March 31, 2021, compared to HKD 0.50 in the previous year[15] - The diluted loss per share from continuing operations was HKD (0.88) for the three months ended March 31, 2021, compared to HKD 0.50 in the previous year[21] Contract and Revenue Sources - Total contract value obtained from the Macau government and other vertical market clients reached HKD 45,300,000, while contracts in the Hong Kong market were valued at HKD 11,600,000[4] - The total contract value obtained in the three-month period was approximately HKD 105,400,000, a decrease of 8.35% compared to the first quarter of 2021[30] - The company secured contracts worth HKD 45,300,000 from the Macau government and other vertical markets during the three-month period[32] - The company secured contracts worth HKD 11,600,000, with over 90% related to software-defined wide area networks and data network infrastructure for telecom service providers in Hong Kong[34] - In the mainland China market, the company obtained contracts totaling HKD 28,200,000 during the quarter, a decrease from HKD 45,000,000 in Q1 2021, with over 60% coming from a leading internet value-added service provider[36] Market Impact - The business growth momentum in mainland China was impacted by the Omicron variant, resulting in contracts valued at only HKD 28,200,000[4] - The number of inbound tourists in Macau dropped from 642,016 in January to 468,995 in March due to the impact of the Omicron variant[31] - The total revenue from the gaming sector decreased from HKD 22,920,000,000 in the first quarter of 2021 to HKD 17,231,000,000 in the same period[31] Corporate Actions and Structure - The company did not recommend the payment of an interim dividend for the three-month period[4] - The company did not recommend the payment of an interim dividend for the three-month period ended March 31, 2021[26] - Major shareholders hold 58.10% of the company's issued share capital, totaling 357,945,500 shares[48] - The company did not repurchase any shares during the three-month period ending March 31, 2022[52] - No shares were bought or sold by the company or its subsidiaries during the same period[52] - The company has not disclosed any competitive business interests among its directors or major shareholders[50] - The company is indirectly wholly owned by Vodatel Holdings Limited, registered in the British Virgin Islands[57] - José Manuel dos Santos is the chairman of the board and holds significant influence over the company[57] - The company has a stock option plan approved at the annual general meeting held on June 22, 2012[57] - The company operates under the regulations of the GEM market in Hong Kong[56] - The company has no reported interests in businesses that compete or may compete with its operations[50] Subsidiary Developments - The establishment of a new subsidiary, Meta-V, in Hong Kong, which signed its first management service contract with a leading mobile supplier[4] - The subsidiary Meta-V was established in December 2021 to assist enterprises in transitioning to a "pay-as-you-go" model for IT infrastructure investments[35] Cost Management - The company implemented cost control measures, reducing sales, marketing, and administrative expenses to HKD 22,427,000 from HKD 23,964,000 in Q1 2021[39] - The performance of TTSA has shown continuous improvement, with net profit increasing for four consecutive quarters[4] - TTSA's revenue increased slightly to HKD 47,764,000 from HKD 45,966,000 in Q1 2021, marking the fourth consecutive quarter of growth[38] Capital Structure - The net asset value of the group as of March 31, 2022, was HKD 174,562,000, with cash and cash equivalents amounting to HKD 115,943,000[4] - The company maintained a strong capital structure with no external borrowings, holding cash and cash equivalents totaling HKD 115,943,000, representing approximately 33.07% of total assets[40]

Financial Performance - Revenue increased by 3.9% to HKD 413,079,000 in 2021, despite challenges from the COVID-19 pandemic and rising freight costs[8] - The company incurred a loss of HKD 5,762,000 from continuing operations in 2021, compared to a profit of HKD 3,029,000 in 2020[8] - The total contract value achieved in the year was HKD 120,500,000, representing a year-on-year growth of 61.4% compared to 2020[25] - TTSA recorded a revenue increase of 4.35% to HKD 184,824,000, with a net profit of HKD 4,521,000, compared to a net loss of HKD 25,200,000 in the previous year[28] - The group achieved a total contract value of HKD 420,000,000, a 7.2% increase from 2020, with revenue rising by 3.91% to HKD 413,079,000[33] - Gross profit decreased by 2.98% to HKD 97,549,000, resulting in a gross margin of 23.62%, down 1.67 percentage points from the previous year[33] - The group recorded a loss of HKD 8,431,000 for the year, compared to a profit of HKD 3,728,000 in 2020, largely due to weak gross margins and increased shipping costs[35] Market Performance - Business in mainland China grew by over 60% in 2021, driven by customer demand for reliable high-performance software-defined WAN and data network infrastructure[10] - Revenue from mainland China grew by 64.61% year-on-year, contributing to a total contract value of HKD 420 million, an increase of 7.2% compared to 2020[19] - Total contract value in Macau decreased by 3.4% to approximately HKD 251 million due to the impact of the pandemic[20] - Contracts obtained from the Macau government and other key vertical markets amounted to HKD 204 million, representing a year-on-year growth of 7.4%[23] - Contracts in the gaming sector dropped over 30% year-on-year, totaling approximately HKD 48 million, which is only 20% of the value obtained in 2019[22] - In Hong Kong, the total contract value for data network and software-defined wide area network infrastructure decreased by 15.3% to approximately HKD 48 million[24] Strategic Initiatives - The company plans to reduce its stake in the Taisun Group due to its net debt situation and integrate the Zhuhai business into the subsidiary in Hengqin[9] - The company is focusing on enhancing operational efficiency and cost-effectiveness through business streamlining[9] - Investment in the subsidiary Wanxun was increased to take on more responsibilities, including support for establishing a subsidiary in Hengqin[9] - The company continues to seek the latest technologies for future IT applications, particularly those currently unfeasible due to infrastructure limitations[6] - The company is actively testing high-performance 400G Ethernet in collaboration with a network provider, aiming for the next major Ethernet speed for data center interconnectivity[10] Corporate Governance - The board proposed a final dividend of HKD 0.01 per share, marking the eighth consecutive year of dividend payments[8] - The company continues to focus on maintaining a prudent financial principle while providing innovative solutions and excellent service[18] - The company aims to be a trusted partner for customers and suppliers, emphasizing the importance of environmental, social, and governance factors[18] - The board emphasized the importance of corporate governance, noting compliance with the code of conduct throughout the year[70] - Management indicated that quarterly updates will be provided to the board to ensure timely decision-making and oversight[70] - The board of directors held five meetings during the year[74] - All independent non-executive directors confirmed their independence according to the GEM Listing Rules[108] - The remuneration committee held one meeting during the year to evaluate the performance of executive directors and recommend bonuses[116] - The nomination committee also held one meeting during the year to identify and recommend suitable candidates for the board[117] - The company has adopted the GEM Listing Rules regarding the conduct of securities transactions by directors[72] - The company approved interim and final dividends during the year[78] - The company confirmed no violations of trading standards by directors[73] - The company has established corporate governance policies and responsibilities for the board[111] Environmental and Social Responsibility - The company aims to integrate environmental, social, and governance elements into its business strategies for sustainable growth[143] - The company generated approximately 130 tons of CO2 emissions annually from its largest office in Macau, while the Hong Kong office produced about 50 tons[154] - The company aims to maintain its CO2 emissions at current levels, focusing on energy consumption during office hours[163] - The packaging material weight for each device ranges from 0.7 kg to 4 kg, with total waste generated annually being less than 30 tons[161] - The company has implemented a waste management strategy that includes the responsible disposal of solid waste and the donation of surplus materials to charities[153] - The company does not produce any hazardous waste, and therefore, related performance indicators are not applicable[159] - The company emphasizes the importance of resource usage, particularly in terms of electricity, water, and fuel consumption in its offices[166] - The company has a fleet of approximately ten vehicles, which are regularly inspected to ensure compliance with environmental regulations[150] - The company supports the "Three Rs" waste hierarchy: Reduce, Reuse, and Recycle, to minimize waste generation[149] - The company has not set specific targets for reducing packaging materials, as it relies on suppliers for packaging design[165] - The company continuously monitors regulatory developments to ensure compliance with environmental standards[154] Workforce and Employee Relations - The total workforce of the company as of December 31, 2021, is 155 employees, with 119 males and 36 females[182] - The employee turnover rate for the year is 14.63%, with a breakdown of 14.90% for males and 13.70% for females[182] - The company employs 154 full-time staff and 1 contract employee, with 14 employees under 30 years old, 90 between 30 and 50, and 51 over 50[182] - The company has implemented policies to mitigate risks associated with extreme weather, including close monitoring of weather forecasts and communication with suppliers and customers[173] - The company encourages employees to practice energy-saving measures, such as turning off lights and equipment when not in use[171] - The company provides competitive employment benefits, including discretionary bonuses, housing allowances, and medical insurance[179] - The company has a strong commitment to diversity and non-discrimination in its hiring practices[176] - The company has not experienced any climate-related incidents that could impact its operations[173] - The company emphasizes internal recruitment for new positions before considering external candidates[179] - The company has maintained a record of zero work-related fatalities over the past three years, including the current year[191] - There have been no lost workdays due to work-related injuries reported[191] - The company emphasizes the importance of employee training and development to adapt to emerging technologies and meet changing customer demands[192] - Internal and on-the-job training programs are implemented to enhance employee skills and knowledge across various support teams[193] - The company has established long-term training and development strategies to ensure workforce sustainability[194] - Gender distribution within the company shows 32.77% male employees and 5.56% female employees[199][200]

Contract Value and Revenue - Total contract value obtained during the nine-month period reached HKD 307,500,000, accounting for approximately 75% of the total contracts signed in 2020[4] - Revenue for the three-month period was HKD 78,248,000, marking the weakest quarter in 2021, while total revenue for the nine-month period was HKD 283,028,000, an increase of 5.57% compared to the same period in 2020[4] - The company secured contracts worth over HKD 30,000,000 from various vertical markets, achieving 107% of the total contract value obtained in 2020 from these markets[4] - The mainland China team contributed HKD 27,000,000 in data network infrastructure and software-defined networking contracts, bringing the total contract value for the nine-month period to approximately HKD 98,000,000, or 130% of the total contracts obtained in 2020[4] - The company secured contracts worth over HKD 87,000,000 from the Macau government, representing 28% of the total contracts obtained during the period[21] - The company achieved contracts valued at over HKD 30,000,000 from designated vertical markets, which is 107% of the total contract value obtained from these markets in 2020[22] - In Hong Kong, the company focused on providing data network infrastructure and software to telecom service providers, securing contracts worth HKD 39,300,000, which is about 69% of the total contracts obtained in 2020[23] - The company obtained contracts worth HKD 37,500,000 from various gaming operators, which accounted for only 12% of the total contract value obtained in 2021[20] - The group secured contracts worth approximately HKD 110,000,000 during the three-month period, accounting for about 36% of the total contracts obtained in the nine-month period[28] Financial Performance - The net loss for the three-month and nine-month periods was HKD 1,302,000 and HKD 6,639,000, respectively, due to a financial asset impairment loss of HKD 3,239,000[4] - The company recorded a net profit of HKD 3,712,000 for the nine-month period, marking the second quarterly profit since 2015[4] - Basic and diluted loss per share for the nine-month period was HKD (0.81)[7] - The company reported a gross profit of HKD 74,292,000 for the nine-month period, compared to HKD 70,167,000 for the same period in 2020[7] - The company recorded a revenue of HKD 138,313,000 and an EBITDA of HKD 48,301,000, representing growth rates of 3.4% and 10.7% respectively during the nine-month period[25] - The company reported a net profit of HKD 3,712,000, a significant recovery compared to a net loss of HKD 21,029,000 in the same period last year[25] - Gross profit for the three-month and nine-month periods reached HKD 27,287,000 and HKD 74,292,000, respectively, due to improved gross margins[28] - The group reported net losses of HKD 1,302,000 and HKD 6,639,000 for the three-month and nine-month periods, respectively, primarily due to impairment losses of HKD 3,239,000 related to financial assets[29] Capital Structure and Dividends - The group's capital structure remains stable with no external borrowings, and cash and financial assets totaled HKD 125,547,000, representing about 37% of total assets[4] - The board of directors does not recommend the payment of an interim dividend for the nine-month period[4] - Total equity as of September 30, 2021, was HKD 182,549,000, with cash and financial assets totaling approximately HKD 125,547,000, representing about 37% of total assets[30] - The board does not recommend the payment of an interim dividend for the nine-month period to ensure the group can navigate the current weak market conditions[30] - The company did not redeem any shares during the nine-month period[45] - There were no purchases or sales of any shares by the company or its subsidiaries during the nine-month period[45] - The company’s ordinary shares have a par value of HKD 0.10 each[69] Market Conditions - The company faced a decline in visitors to Macau, with the number dropping from 724,342 in July to 369,467 in August due to new travel restrictions[20] - The company secured contracts worth HKD 7,800,000 from telecom service providers in Guangdong, Jiangxi, and Jiangsu provinces, with an additional HKD 4,100,000 in new contracts added in October[24]

Revenue Performance - Revenue for the three-month period was HKD 87,583,000, a decrease of over 25% compared to HKD 117,197,000 in the first quarter of 2021[5] - For the six-month period, revenue was HKD 204,780,000, an increase of 18.17% compared to HKD 173,286,000 in the same period of 2020[5] - The group recorded a revenue of HKD 87,583,000 for the three-month period, a decline of over 25% compared to HKD 117,197,000 in Q1 2021[89] - For the six-month period, the group achieved a revenue of HKD 204,780,000, representing an increase of 18.17% compared to the same period in 2020[90] Profit and Loss - The net loss for the three-month period widened to HKD 6,500,000, while the net loss for the six-month period narrowed to HKD 5,337,000[5] - The company reported a total comprehensive loss of HKD 8,386 thousand for the six-month period[34] - The group reported a net loss of HKD 6,500,000 for the three-month period, an increase from HKD 2,768,000 in the same quarter of 2020[92] - For the six-month period, the net loss decreased to HKD 5,337,000 from HKD 7,937,000 in the same period of 2020[92] Gross Profit and Margins - The gross profit margin decreased, contributing to the overall loss, with gross profit for the six-month period reported at HKD 47,005,000[7] - The group’s gross profit margin decreased from 26.46% in Q2 2020 to 21.79% in the three-month period, resulting in a gross profit of HKD 19,087,000[89] - The group’s gross profit for the six-month period was HKD 47,005,000, an increase of 17.62% compared to the same period in 2020[90] Assets and Liabilities - Total assets decreased from HKD 345,623 thousand to HKD 332,011 thousand, a decline of approximately 3.6%[14] - Non-current assets increased significantly from HKD 42,089 thousand to HKD 60,897 thousand, representing a growth of about 44.5%[14] - Current assets decreased from HKD 303,534 thousand to HKD 271,114 thousand, a reduction of approximately 10.7%[14] - Total liabilities increased slightly from HKD 149,508 thousand to HKD 150,426 thousand, an increase of approximately 0.6%[27] - The net asset value decreased from HKD 196,115 thousand to HKD 181,585 thousand, a decline of about 7.4%[32] Cash Flow and Financial Position - Cash flow from operating activities showed a significant decrease from HKD 47,280 thousand to HKD 1,629 thousand[36] - As of June 30, 2021, the group maintained a strong capital structure with no external borrowings and cash and cash equivalents totaling HKD 119,698,000, representing 36.05% of total assets[5] - Cash and cash equivalents decreased from HKD 70,891 thousand to HKD 59,346 thousand, a decline of about 16.4%[36] Contracts and Business Development - The total value of contracts obtained by the mainland China team during the six-month period was HKD 68,500,000, approximately 92% of the contracts obtained in 2020[5] - The group secured contracts worth HKD 30,100,000 from various gaming operators, with HKD 20,200,000 recognized during the three-month period[81] - The group obtained contracts valued at HKD 77,300,000 from the Macau government, accounting for approximately 40% of the total contracts obtained in 2020[82] - The group received contracts worth HKD 3,700,000 for enhanced data analytics and cloud-based customer network management systems during the six-month period[86] Management and Governance - The board of directors did not recommend the payment of an interim dividend for the six-month period[5] - The company has adopted the GEM Listing Rules regarding the conduct of securities trading by directors[120] - The company has not reported any violations of trading standards during the period[121] - The company’s governance practices have been in compliance with the Code, except for certain independent non-executive directors not attending the annual general meeting[118] Future Outlook and Strategy - The company plans to focus on expanding its technology support services in mainland China and Hong Kong markets[38] - Future outlook indicates a projected revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion strategies[154] - The company is exploring potential acquisitions to strengthen its market position, with a focus on companies that complement its existing services[154] - Vodatel Networks plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[154] Employee and Management Costs - The total remuneration for key management personnel during the six-month period was HKD 4,689,000, slightly up from HKD 4,650,000 for the same period last year[51] - The group employed 203 employees as of June 30, 2021, with total employee costs amounting to HKD 34,354,000[96] Technology and Innovation - The company launched new products, including enhanced data analysis customer network management systems and the first cloud-based version of the customer network management system[5] - Investment in new technology development is prioritized, with an allocation of HKD 30 million for R&D initiatives aimed at enhancing service offerings[154] Customer and Market Insights - Customer satisfaction ratings improved to 85%, indicating a positive response to recent service enhancements[154] - The company faced adverse impacts on business momentum and negotiations due to various factors, including government regulations and supply chain disruptions in the electronics sector[78]