Maxnerva FY2016/17 Interim Profit Skyrockets to Approximately HK$48.6 million

Nov 29, 2016 23:00 JST

Source: Maxnerva Technology Services Limited

- New I.T. Integration & Solutions Service Business Brings in Meaningful Contributions;
- Committed to Develop Industry 4.0 Services to Drive Future Growth

HONG KONG, Nov 29, 2016 - (ACN Newswire) - Maxnerva Technology Services Limited ("Maxnerva" or the "Group"; stock code: 1037), an IT services and solutions provider, has today announced its unaudited condensed consolidated interim results for the six months ended 30 September 2016. Both revenue and profit grew significantly with the newly added Information Technology ("I.T.") Integration and Solutions Service Business which commenced during the year ended 31 March 2016.

Financial Highlights

- Turnover surged 401.0% to HK$242.2 million mainly contributed by the new I.T. Integration and Solutions Services business
- Gross profit soared from HK$12.5 million to HK$88.8 million
- Profit surged from approximately HK$1.5 million to 48.6 million
- Basic earnings per share attributable to owners of the Company were HK7.34 cents
- Cash and cash equivalents amounted to approximately HK$208.7 million

For the six months ended 30 September 2016, turnover from the Group was approximately HK$242.2 million, representing an increase of 401.0% (2015: approximately HK$48.3 million). The increase in turnover was mainly contributed by the new I.T. Integration and Solutions Services business which, with its higher gross profit margin, also helped to improve the Group's gross profit which surged to approximately HK$88.8 million (2015: approximately HK$12.5 million). Net profit for the Group increased by HK$47.1 million to HK$48.6 million (2015: approximately HK$1.5 million). Total cash and cash equivalents as at 30 September 2016 were approximately HK$208.7 million (31 March 2016: HK$216.2 million).

The Board of Directors does not recommend any payment of an interim dividend.

Mr. Hui Lap Shun, John, Chairman of Maxnerva Technology Services Limited, said, "Last financial year, the Group has undertaken a significant change in its business focus, creating a new I.T. Integration and Solutions Services segment to serve the rapidly growing Industry 4.0 market. The new business segment has generated fruitful returns for the Group, showing that our transformation strategy is heading in the right direction. Apart from fostering a strategic business relationship with Hon Hai, the world's largest electronics manufacturing services provider, the Group also entered a collaboration agreement with Siemens Industry Software (Shanghai) Company Limited in the development of Industry 4.0 solutions during the review period. By cooperating with a leading global technology partner, the Group aims at delivering a clearly differentiated market position as a strong new entrant in the technology integration and solutions market."

During the review period, the I.T. Integration and Solutions Services business has become the Group's main revenue driver. It encompasses providing project-based system integration services in the area of smart factory and smart office initiatives and the sale of I.T. products. The revenue generated from the I.T. Integration and Solutions Services amounting to approximately HK$186.5 million accounted for approximately 77.0% of the Group's total revenue during the six months ended 30 September 2016.

Revenue from the Electronic Products Manufacturing business was approximately HK$55.6 million, representing an increase of 15.1% or approximately HK$7.3 million compared with the same period last financial year. This segment recorded a loss of HK$4.8 million during the six months ended 30 September 2016 compared to a segment profit of HK$3.4 million for the six months ended 30 September 2015.

"Looking ahead, the management believes that the commercial opportunity in providing Industry 4.0 services is enormous as evidenced by the growth of the I.T. Integration and Solutions Services business which has become the major revenue driver of the Group. In light of this, the Company is allocating more resources to expand this business segment and broaden our customer base.

On the other hand, the performance of the Electronic Products Manufacturing business started to deteriorate in the previous financial year and the disappointing performance has continued in the first half of this year as a result of increased labour costs, more keen competition and decline in the number of customers. We will closely monitor the situation and if it remains sluggish, the Directors will take all possible measures to manage the situation in response to the changing business environment and protect the interest of the shareholders." Mr. Hui concluded.

Contact:

Strategic Financial Relations Limited
Mandy Go     +852 2864 4812  mandy.go@sprg.com.hk
Rachel Wong  +852 2864 4873  rachel.wong@sprg.com.hk
Fax: +852 2527 1196 / 2804 2789 
Website: www.sprg.com.hk

Source: Maxnerva Technology Services Limited
Sectors: Cloud & Enterprise, Daily News, Digitalization