Tradelink 2019 Interim Report

CHAIRMAN’S STATEMENT 主席報告書 04 Tradelink Electronic Commerce Limited  Interim Report 2019 Dear Shareholders, Despite the unsettled operating environment arising from the continuous US- Mainland trade tension causing a slowdown of the Hong Kong economy in the year, the Group’s turnover of HK$124.7 million in the first half of 2019, was down only by 0.3% relative to the HK$125.1 million in the same period last year. During the reporting period, our total costs, which included cost of purchases, staff costs, depreciation and other operating expenses, increased by 6.7% from HK$87.7 million last year to HK$93.6 million. The increase was partly due to the increase in staff costs in line with inflation and partly due to the US dollar dip during the first half year causing an exchange loss of about HK$0.9 million to our USD- denominated assets as compared to the exchange gain of about HK$1.8 million last year, a swing of HK$2.7 million. With turnover slightly down and total costs up, the Group’s profit from operations for the first half of 2019 amounted to HK$38.8 million, down by 13.5% compared to the HK$44.9 million for the same period last year. Regarding the share of result of our PRC associate Guangdong Nanfang Haian Science & Technology Service Company Limited (“Nanfang”), with its receipt of a lump sum payment from the relevant government authority for their core river manifest declaration services between September 2018 and June 2019, the Group recorded a share of profit from Nanfang in the amount of HK$1.4 million for the period, an almost 3 times increase from the HK$0.4 million share profit last year. Taking into account the recognition of the deferred tax charge arising from the utilization of the unused tax losses of Digital Trade and Transportation Network Limited (“DTTNCo”), the Group’s after tax profit was HK$34.2 million, down by 10.7% compared to HK$38.3 million for the same period last year. Regarding our three business segments, their performances in the reporting period were mixed. Affected by the Government Electronic Trading Services (“GETS”) market, the weakest in 10 years, declining overall by 6.1% year-on-year, our GETS business in the E-Commerce segment also shrank. Though our Supply Chain Solutions sub-segment recorded a slight increase, turnover of our combined E-Commerce business segment for the first half of 2019 at HK$85.0 million was still 3.7%, or HK$3.3 million, less compared to the revenue of HK$88.3 million for the same period last year. Credit to our effective cost control, the reportable segmental profit for our combined E-Commerce business for the period was HK$26.8 million, down slightly by 3.9%, or HK$1.1 million, compared to the HK$27.9 million last year. As for our Identity Management (“IDM”) business, its performance in the first half of 2019 was affected by the serious slump of one of its services, namely the security token delivery business. The quantity of token delivered dropped steeply by 60%, resulting in a drop in revenue of HK$5.3 million. Although several completed or work-in-progress projects contributed recognisable revenues, the overall turnover of our IDM business for the reporting period still dropped by 13.1%, from HK$27.0 million last year to HK$23.5 million this year. Reportable profit of the segment was down 59.4% to HK$2.0 million. As for our Other Services business segment, it achieved rather pleasing results in the reporting period with revenue up by 65.9% from HK$9.8 million last year to HK$16.2 million this year. The segmental profit also grew to HK$7.1 million, representing an increase of 15.4% year-on-year. While our other GETS related business remained stable, the revenue of Other Services increased because, our Smart Point-of-Sales (“PoS”) business, after years of cultivation, has started to bear fruit, bringing in a handsome revenue of HK$6.2 million in the reporting period, relative to the negligible amount for the same period last year. 致各位股東： 中美貿易持續緊張，使營商環境不穩，本年度的香港經 濟放緩，惟本集團的二零一九年上半年營業額為港幣 124,700,000 元，僅較去年同期的港幣 125,100,000 元下跌 0.3% 。於報告期內，我們的成本總額（包括採購成本、 僱 員 成 本、折 舊 及 其 他 經 營 開 支）較 去 年 的 港 幣 87,700,000 元增加 6.7% 至港幣 93,600,000 元。增幅部分歸 因於僱員成本隨通脹增加，而部分則因美元於上半年下 挫，對美元計值資產造成約港幣 900,000 元的匯兌虧損， 與去年的匯兌收益約港幣 1,800,000 元相比，倒虧港幣 2,700,000 元。營業額微跌及成本總額上漲，本集團二零 一九年上半年的經營溢利達港幣 38,800,000 元，較去年同 期的港幣 44,900,000 元減少 13.5% 。 在分佔中國聯營公司廣東南方海岸科技服務有限公司 （「南方」）的業績方面，就其核心小船艙單報關服務自相 關政府機關收取一筆從二零一八年九月至二零一九年六 月的一次性付款，本集團期內錄得分佔南方溢利港幣 1,400,000 元，較去年分佔溢利港幣 400,000 元增近 3 倍。 計 及 使 用 來 自 確 認 數 碼 貿 易 運 輸 網 絡 有 限 公 司 （「 DTTNCo 」）未動用稅項虧損所產生的遞延稅項支出，本 集團的除稅後溢利為港幣 34,200,000 元，較去年同期的港 幣 38,300,000 元減少 10.7% 。 於報告期間，我們三個業務分部的表現好壞參半。政府 電子貿易服務（「 GETS 」）市場整體按年下跌 6.1% ，為 10 年 以來最疲弱，在此影響下，電子商貿分部下的 GETS 業務 亦縮減。儘管我們的供應鏈應用方案子分部錄得輕微增 長，二零一九年上半年的合併電子商貿業務分部營業額 為 港 幣 85,000,000 元，仍 較 去 年 同 期 的 收 益 港 幣 88,300,000 元減少 3.7% 或港幣 3,300,000 元。全賴成效益 彰的成本控制，合併電子商貿業務的期內可呈報分部溢 利為港幣 26,800,000 元，比去年的港幣 27,900,000 元稍跌 3.9% 或港幣 1,100,000 元。身份管理（「身份管理」）業務方 面，其二零一九年上半年的業績受其中一項服務保安編 碼器交付業務嚴重下滑影響。交付的編碼器數量急跌 60% ，導致該業務收益減少港幣 5,300,000 元。雖然多項 已完成或正在進行項目帶來可觀收益，於報告期間，身 份管理業務的整體營業額仍自去年的港幣 27,000,000 元 減少 13.1% 至本年度的港幣 23,500,000 元。分部的可報告 溢利下跌 59.4% 至港幣 2,000,000 元。於報告期間，其他服 務業務分部的業績頗令人欣喜，收益由去年的港幣 9,800,000 元上升 65.9% 至本年度的港幣 16,200,000 元。分 部溢利增至港幣 7,100,000 元，按年上升 15.4% 。在我們 其他 GETS 相關業務維持穩定之際，經長年耕耘後，智能 銷售點（「銷售點」）業務漸有成果，與去年同期只有微不 足道的營業額相比，於報告期間帶來港幣 6,200,000 元的 龐大收益，使其他服務的收益增加。