Tradelink 2020 Interim Report

04 Tradelink Electronic Commerce Limited  Interim Report 2020 CHAIRMAN’S STATEMENT 主席報告書 Dear Shareholders, As the Coronavirus Disease 2019 (“COVID-19”) pandemic continued to spread across the world and brought about unprecedented challenges to all walks of life, the Group inevitably encountered one of the toughest operating periods in the first half of 2020. The Group’s turnover of HK$119.7 million for the first half of 2020 dropped 4.0% compared to the revenue at HK$124.7 million for the same period last year. During the reporting period, though the Group’s total operating costs at HK$93.4 million were almost the same as last year, taking into account a drop of the interest income to HK$6.9 million compared to HK$7.6 million last year and other net loss of HK$1.6 million this year vis-à-vis a slight net gain of HK$92,000 last year, the Group’s operating profit at HK$31.6 million was down 18.5% compared to the $38.8 million for the same period last year. Regarding the performance of our PRC associate Guangdong Nanfang Haian Science & Technology Service Company Limited (“Nanfang”), their business faced an even harder blow. During the reporting period, the Group recorded a share loss of HK$2.2 million from Nanfang compared to a share gain of HK$1.4 million last year, a swing of HK$3.6 million. Also in view of the gloomy outlook of Nanfang’s business, the Group decided to make a provision of HK$4.4 million to write down part of our investment in Nanfang. Given these unfavourable factors, the Group’s profit before tax was HK$24.5 million, down from HK$40.3 million for the same period last year, a drop of 39.3%. Taking into account the recognition of the deferred tax charge arising from the utilisation of the unused tax losses of Digital Trade and Transportation Network Limited (“DTTNCo”), the Group’s profit for the period was HK$20.2 million, down 41.0% from HK$34.2 million for last year. As for our three business segments, except for Identity Management (“IDM”) business which recorded growth, business of the other two business segments declined by different extent. As the COVID-19 pandemic disrupted the global supply chain and international trade, the overall Government Electronic Trading Services (“GETS”) market plummeted 9.2% year-on-year for the first six months of 2020, leading to a shrinkage of our GETS business in the E-Commerce segment. Our Supply Chain Solutions sub-segment, on the other hand, achieved handsome growth which helped narrow the revenue shortfall of our GETS business. Nevertheless, turnover of our combined E-Commerce business segment for the first half of this year at HK$81.6 million was still 4.0%, or HK$3.4 million, less than the revenue of HK$85.0 million for the same period last year. Segment profit of our E-Commerce business for the reporting period also dropped 3.7% year-on-year from HK$26.8 million last year to HK$25.8 million this year. For the first half of the year, our IDM business recorded rather satisfactory results as its turnover increased by 13.7% from HK$23.5 million last year to HK$26.7 million this year. Despite a relatively low base for comparison, segment profit for the first half of this year at HK$2.2 million was actually up 7.6% compared to the profit last year at HK$2.0 million. The growth of our IDM business was mainly attributable to an increase in the revenue of maintenance and support services from our previously delivered projects, electronic Know-Your-Customer (“eKYC”) projects on a work-in-progress basis and security hardware sold to a local bank. As for our Other Services business, its performance was also hard hit. As the Hong Kong economy contracted at the sharpest pace on record in the first half of the year due to the COVID-19 pandemic, retail business came to a halt due to the poor market sentiment as further aggravated by the Government restrictions on certain retail sectors to prevent the further spreading of virus. As a result, our Smart Point-of- Sales (“PoS”) business came almost to a standstill as no new Smart PoS orders were received from our bank customers for several months during the first half of the year. Its turnover plunged 66.1%, down from HK$6.2 million for the first half of last year to HK$2.1 million this year. Revenue recorded for our Smart PoS business was all from the maintenance and support services provided for existing PoS deployment. As expected, our other GETS-related business fell almost in tandem with the contraction of our GETS business. During the reporting period, total revenue of our Other Services business comprising mainly our Smart PoS and other GETS related services was HK$11.4 million, down almost 30% year-on-year from HK$16.2 million last year. Segmental profit also fell significantly by 32.0% to HK$4.9 million compared to the profits of HK$7.1 million recorded last year. 致各位股東： 2019 冠狀病毒病（「 COVID-19 」）大流行繼續在全球擴散， 並為各行各業帶來前所未見的挑戰，本集團亦不能倖免， 於二零二零年上半年面對歷來營運上最為困難時期之 一。本 集 團 於 二 零 二 零 年 上 半 年 的 營 業 額 為 港 幣 119,700,000 元，較去年同期的收益港幣 124,700,000 元下 跌 4.0% 。於報告期，儘管本集團的經營成本總額為港幣 93,400,000 元，與去年差不多相若，惟利息收入由去年的 港幣 7,600,000 元下跌至今年的港幣 6,900,000 元，同時今 年錄得其他虧損淨額港幣 1,600,000 元，對比去年的輕微 收益淨額港幣 92,000 元，本集團經營溢利由去年同期的 港幣 38,800,000 元下跌 18.5% 至港幣 31,600,000 元。 就中國聯營公司廣東南方海岸科技服務有限公司（「南方」） 表現而言，其業務面對更大衝擊。於報告期，本集團錄 得分佔南方虧損為港幣 2,200,000 元，而去年則為分佔收 益港幣 1,400,000 元，跌幅為港幣 3,600,000 元。此外，因 應南方業務前景黯淡，本集團已決定作出港幣 4,400,000 元的撥備，以撇減於南方的部份投資。此等不利因素令 本集團除稅前溢利為港幣 24,500,000 元，較去年同期的港 幣 40,300,000 元下跌 39.3% ，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，本集團本期間溢利為港幣 20,200,000 元，較去年的港幣 34,200,000 元下跌 41.0% 。 在我們三個業務分部中，除身份管理（「身份管理」）業務 錄得增長外，其餘兩個業務分部的業務均出現不同程度 的下跌。 COVID-19 大流行令全球供應鏈及國際貿易受到 干擾，整體政府電子貿易服務（「 GETS 」）市場於二零二零 年首六個月按年下跌 9.2% ，導致電子商貿分部的 GETS 業 務收縮。另一方面，供應鏈應用方案子分部錄得不俗的 增長，有助減少 GETS 業務收益的下跌。儘管如此，合併 電子商貿業務分部營業額於今年上半年的營業額為港幣 81,600,000 元，較去年同期的收益港幣 85,000,000 元下跌 4.0% 或港幣 3,400,000 元。電子商貿業務於報告期內的分 部溢利亦按年下跌 3.7% ，由去年的港幣 26,800,000 元下 跌至今年的港幣 25,800,000 元。我們的身份管理業務於今 年上半年取得滿意的業績，營業額增加 13.7% ，由去年 的港幣 23,500,000 元增至今年的港幣 26,700,000 元。儘管 比 較 基 準 相 對 較 低，今 年 上 半 年 分 部 溢 利 為 港 幣 2,200,000 元，實則較去年的溢利港幣 2,000,000 元上升 7.6% 。我們的身份管理業務有所增長，主要由於來自我 們過往已交付項目的保養及支援服務、正在進行的電子 化認識你的客戶（「電子化認識你的客戶」）項目，以及售 予一間本地銀行的保安硬件收益增加所致。我們的其他 服務業務表現亦大受打擊。 COVID-19 大流行令香港經濟 於今年上半年出現收縮，幅度為有紀錄以來最急劇，零 售業務因市場氣氛不佳而差不多停頓，而政府對若干零 售業實施限制以免病毒進一步傳播，令情況雪上加霜。 因此，我們的智能銷售點業務於今年上半年曾有數月近 乎陷於停頓，由於並無收到銀行客戶新智能銷售點訂單， 該業務營業額由去年上半年的港幣 6,200,000 元下跌 66.1% ，至今年的港幣 2,100,000 元。智能銷售點業務所 錄得的收益全部來自設置現有銷售點所提供的保養及支 援業務。其他 GETS 相關業務亦如預期因 GETS 業務收縮而 錄得近乎相同的跌幅。於報告期，主要由智能銷售點及 其他 GETS 相關服務組成的其他服務業務，其總收益為港 幣 11,400,000 元，較去年的港幣 16,200,000 元按年下跌近 30% 。分部溢利亦由去年錄得的港幣 7,100,000 元大跌 32.0% 至港幣 4,900,000 元。