Tradelink 2018 Interim Report

Management Discussion and Analysis 管理層討論及分析 08 Tradelink Electronic Commerce Limited  Interim Report 2018 Business Review E-Commerce Review To better organize our operations to face the identified challenges and take advantage of the market trends, we have combined the reporting of the two sub- segments, GETS and Commercial Services, under E-Commerce into one set of segment numbers in line with the strategic development of our overall E-Commerce business in the light of the changing operating environment with the implementation of the SW in the coming 7–9 years and the demand for our e-solutions for the trade and logistics industry. For the first half of 2018, our total E-Commerce revenue from GETS and Commercial Services was HK$88.3 million, same as the total for the same period last year. Though benefited from an overall growth of the market for the period, our GETS revenue increased slightly from HK$83.1 million last year to HK$83.6 million this year, a more or less same amount of revenue drop of our Commercial Services cancelled out the GETS revenue increase. Due to tighter cost control during the reporting period, the E-Commerce segment profit at HK$27.9 million was 7.0% higher than the profit last year at HK$26.0 million. The GETS competitive landscape was, as expected, stable given that the three existing service providers were awarded the new licenses by the Government to continue to offer GETS. During the reporting period, same as the other two service providers, we have been focusing on the development of the system enhancements required by the Government under the new license commencing 2019. Meanwhile we are closely monitoring Government’s development of SW which is progressing largely according to their plan. We will continue to keep a close watch on its progress and get ourselves involved as and when appropriate in their consultation with potential value-added service providers (“VASPs”) on business issues affecting the operating environment of VASPs under the future SW. Regarding the outlook of our GETS business in the second half of the year, we believe it would very much depend on how the trade war between US and China would go in the coming months and how it would affect the Hong Kong trading activities towards the later part of the year as most analysts and Government officials have foreshadowed. Barring this wider issue which is beyond our control, we are reasonably confident of a stable GETS competitive market situation and hence our GETS business for the remainder of the year. For the first half of 2018, our Commercial Services’ revenue, which comprised only regular recurrent revenue as there was no completed project, was at HK$4.7 million, representing an almost 10% drop from revenue at HK$5.2 million recorded for the same period last year. The delay in the Commercial Services projects during the reporting period was the key contributing factor causing the revenue drop. While this is only a timing issue in recognizing those projects income, with revenue from new orders that have been or can be confirmed and completed before the year end, we expect a significant catch up of the revenue in the second half of the year. The team is particularly excited about one recent order confirmed by a local subsidiary of a major non-commodity marketing and distribution services company based in the United States. We will provide to them not only our Warehouse Management System (“WMS”) but also consultancy services to plan and design their new warehouse operations to support their business networks and portfolios in both consumer goods and industrial products markets. This is of strategic importance to us as we are building up our expertise as well as credentials in offering a comprehensive solution for warehouse setups and operations including all equipment, system and ancillary devices implementation for guiding and managing human and/or Automated Guided Vehicles operations on warehouse floors. Leveraging our experience from this case, the team is actively pursuing 業務回顧 電子商貿回顧 為優化我們的營運架構以面對已知的挑戰及順應市場趨 勢，我們已將電子商貿下的 GETS 及商業服務兩個子分部 合併為同一分部進行財務匯報，以迎合我們整體電子商 貿業務的策略發展，這是因應七至九年後實施貿易單一 窗口致使經營環境的轉變，以及貿易及物流業對我們電 子方案的需求。於二零一八年上半年，我們來自 GETS 及 商業服務的總電子商貿收益為港幣 88,300,000 元，與去年 同期總數相同。雖然期內受惠於市場的整體增長，我們 的 GETS 收益由去年港幣 83,100,000 元微升至今年的港幣 83,600,000 元，但我們的商業服務收益錄得差不多相若 的跌幅，抵銷了 GETS 收益的升幅。由於報告期內加強成 本控制，電子商貿分部溢利為港幣 27,900,000 元，較去年 溢利港幣 26,000,000 元增加 7.0% 。 一如預期，鑒於三家現有服務供應商獲政府簽發新牌照 以繼續提供 GETS, GETS 的競爭環境維持穩定。於報告期 內，與另外兩家服務供應商一樣，我們專注於開發政府 在二零一九年新牌照下所要求的系統提升措施。與此同 時，我們正密切注視政府就單一窗口的發展情況，目前 大致按計劃進行。我們將繼續密切留意其進展，並於適 當時候參與政府與潛在增值服務供應商（「增值服務供應 商」）開展的諮詢，於未來單一窗口下，就影響其經營環 境的業務事宜發表意見。 對於 GETS 業務下半年的前景，我們認為很大程度上要視 乎中美貿易戰於未來數月的發展，以及如大多數分析員 及政府官員預示，其於本年度稍後時間對本港貿易活動 的影響。除了這個非我們所能控制的宏觀因素外，我們 合理地相信 GETS 的市場競爭環境以致我們 GETS 業務將於 下半年保持平穩。 於二零一八年上半年，我們的商業服務只有常規的經常 性 收 益，暫 未 有 完 成 項 目 收 入，因 而 收 益 為 港 幣 4,700,000 元，較去年同期所錄得收益港幣 5,200,000 元下 跌接近 10% 。於報告期內，商業服務項目的延誤為導致 收益下降的主要原因。確認該等項目收入只是時間問題， 考慮到已經或可於年底前確認及完成的新訂單收益，我 們預期下半年的收益將迎頭趕上。 團隊對一家美國大型非商品營銷及分銷服務公司的本地 附屬公司所確認的訂單尤其雀躍。我們不僅向其提供倉 庫管理系統（「倉庫管理系統」），亦會就其新倉庫的規劃 及設計提供顧問服務，以支援其於消費品及工業產品市 場的商業網絡及業務組合。這對我們具有策略性意義， 因為我們正在積累為倉庫設置及營運提供全面解決方案 的專業知識及經驗，包括所有用於指引及管理倉庫中的 人手操作及╱或自動導航車輛的設備、系統及輔助裝置 的設置。憑藉我們從中獲得的經驗，團隊現積極尋求向 潛在客戶提供全面倉庫解決方案的機會。團隊於期內確 認的另一個主要項目是以我們的倉庫管理系統作模組，