Comtec Solar Systems Group Limited - Interim / Quarterly Report 2015

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Sun East Technology (Holdings) Limited 日東科技（控股）有限公司 *

(incorporated in Bermuda with limited liability)

(Stock code: 365)

ANNOUNCEMENT OF INTERIM RESULTS

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2014

The Board of Directors (“the Board”) of Sun East Technology (Holdings) Limited (“the Company”) is pleased to announce the unaudited consolidated results (“the Results”) of the Company and its subsidiaries (collectively, “the Group”) for the six months ended 30 September 2014 (“the Period”). The Results have not been audited but they have been reviewed by the Company’s Audit Committee on 21 November 2014.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

COMPREHENSIVE INCOME
		Six months ended
		30 September
		2014	2013
		(Unaudited)	(Unaudited)
	Notes	*HK$’000*	HK$’000
Revenue	4, 5	481,706	441,394
Cost of sales		(414,167)	(378,237)
Gross profit		67,539	63,157
Other income and gains	4	12,088	8,282
Selling and distribution expenses		(35,486)	(32,386)
General and administrative expenses		(28,810)	(22,228)
Other expenses		(3,746)	(11,372)
Finance costs	6	(1,476)	(693)
Profit before income tax	7	10,109	4,760
Income tax expense	8	(1,126)	(575)
Profit for the Period attributable to
owners of the Company		8,983	4,185
Other comprehensive income, including
reclassification adjustments and net of tax
Item that may be reclassified subsequently to profit or loss:
Exchange differences on translation of financial
statements of foreign operations		(156)	2,459
Total comprehensive income for the Period
attributable to owners of the Company		8,827	6,644
Earnings per share for profit attributable
to owners of the Company	10
– Basic		1.71 cents	0.80 cents

– Diluted		N/A	N/A

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at
30 September
2014
(Unaudited)
Notes
HK$’000
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment
161,877
Prepaid land lease payments
9,695
Available-for-sale financial assets
2,522
174,094
Current assets
Inventories
129,021
Trade and bills receivables
11
342,821
Prepayments, deposits and other receivables
40,340
Derivative financial instruments
451
Tax reserve certificates
3,600
Taxes recoverable
191
Pledged deposits
70,940
Cash and bank balances
48,810
636,174
Current liabilities
Trade and bills payables
12
167,623
Other payables and accruals
157,288
Bank borrowings
92,500
Derivative financial instruments
460
Taxes payable
34,745
452,616
Net current assets
183,558
Total assets less current liabilities
357,652
Non-current liabilities
Deferred tax liabilities
16,920
Net assets
340,732
EQUITY
Equity attributable to owners of the Company
Share capital
13
52,500
Reserves
288,232
Total equity
340,732

As at
31 March
2014
(Audited)
HK$’000
165,129
9,705
1,262
176,096
119,301
266,671
21,909
451
3,600
191
68,044
88,525
568,692
156,382
144,273
60,967
460
33,881
395,963
172,729
348,825
16,920
331,905
52,500
279,405
331,905

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

1. GENERAL INFORMATION

Sun East Technology (Holdings) Limited (the “Company”) is a limited liability company incorporated and domiciled in Bermuda. Its registered office is located at Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda and its principal place of business is located at Unit H, 1st Floor, Phase 4, Kwun Tong Industrial Centre, 436-446 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong. The Company’s shares are listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).

2. BASIS OF PREPARATION

The unaudited condensed consolidated interim financial statements of the Group for the six months ended 30 September 2014 have been prepared in accordance with the applicable disclosure requirements set out in Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and with Hong Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants (HKICPA).

3. PRINCIPAL ACCOUNTING POLICIES

The condensed consolidated interim financial statements have been prepared on the historical cost basis, except for leasehold land and buildings and derivative financial instruments, which are stated at revalued amounts and fair value, as appropriate.

The Interim Financial Information does not include all of the information and disclosures required in annual financial statements in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”), which comprises all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards and Interpretations issued by the HKICPA, and should be read in conjunction with the Group’s annual financial statements for the year ended 31 March 2014.

Except as for the adoption of new and revised HKFRSs issued by the HKICPA, which are effective for the Company’s financial year beginning on 1 April 2014, the accounting policies applied in preparing this Interim Financial Information are consistent with those of the annual financial statements for the year ended 31 March 2014, as described in the annual financial statements. The application of these new and revised HKFRSs has had no material impact on the Interim Financial Information of the Group.

The Group has not early applied the new and revised HKFRSs that have been issued by the HKICPA but are not yet effective. The Directors anticipate that the application of these new and revised HKFRSs will not have material impact on the Interim Financial Information of the Group.

The preparation of Interim Financial Information requires the Company’s management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing the Interim Financial Information, the significant judgements made by the Company’s management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual financial statements for the year ended 31 March 2014.

4. REVENUE, OTHER INCOME AND GAINS

Revenue – sale of goods Other income: Rental income Bank interest income Recovery of trade receivables previously written off Government grant Others Gain Exchange gains, net SEGMENT INFORMATION Production lines and production equipment Six months ended 30 September (Unaudited) 2014 2013 *HK$’000* HK$’000 Segment revenue: Sales to external customers 232,655 228,782 Other revenue – external 1,605 4,149 Reportable segment revenue 234,260 232,931 Reportable segment Results 2,867 1,823 Depreciation and amortisation 5,165 5,153 Provision for impairment of trade and bills receivables 3,746 11,372 Write-off of property, plant and equipment 300 –	Six months ended 30 September 2014 2013 (Unaudited) (Unaudited) *HK$’000* HK$’000 481,706 441,394 – 14 1,621 1,637 252 449 7,004 205 1,893 2,333 10,770 4,638 1,318 3,644 12,088 8,282 Brand name production equipment Six months ended Six months ended 30 September 30 September (Unaudited) (Unaudited) 2014 2013 2014 2013 *HK$’000* HK$’000 *HK$’000* HK$’000 249,051 212,612 481,706 441,394 8,862 2,497 10,467 6,646 257,913 215,109 492,173 448,040 7,097 1,994 9,964 3,817 – – 5,165 5,153 – – 3,746 11,372 – – 300 –	Six months ended 30 September 2014 2013 (Unaudited) (Unaudited) *HK$’000* HK$’000 481,706 441,394 – 14 1,621 1,637 252 449 7,004 205 1,893 2,333 10,770 4,638 1,318 3,644 12,088 8,282 Brand name production equipment Six months ended Six months ended 30 September 30 September (Unaudited) (Unaudited) 2014 2013 2014 2013 *HK$’000* HK$’000 *HK$’000* HK$’000 249,051 212,612 481,706 441,394 8,862 2,497 10,467 6,646 257,913 215,109 492,173 448,040 7,097 1,994 9,964 3,817 – – 5,165 5,153 – – 3,746 11,372 – – 300 –
		448,040
		3,817

		5,153 11,372 –

5. SEGMENT INFORMATION

The totals presented for the Group’s segment Result reconcile to the Group’s key financial figures as presented in the condensed interim financial statements as follows:

		Six months ended	Six months ended
		30	September
		2014		2013
		(Unaudited)	(Unaudited)
		*HK$’000*	HK$’000
	Reportable segment Results	9,964		3,817
	Interest and other income	1,621		1,636
	Finance costs	(1,476)		(693)
	Profit before income tax	10,109		4,760

6.	FINANCE COSTS
		Six months ended
		30	September
		2014		2013
		(Unaudited)	(Unaudited)
		*HK$’000*	HK$’000
	Interest on bank borrowings wholly repayable within five years	1,476		693

7.	PROFIT BEFORE INCOME TAX
		Six months ended
		30	September
		2014		2013
		(Unaudited)	(Unaudited)
		*HK$’000*	HK$’000
	Profit before income tax has been arrived at after charging (credit):
	Cost of inventories sold	414,167	378,237
	Depreciation	5,034		5,002
	Staff costs (including directors’ remunerations)
	– wages and salaries	68,954	61,462
	– defined contribution scheme	4,847		3,934
	Amortisation of prepaid land lease payments	134		151
	Research and development costs	3,378		2,871
	Loss on disposal of property, plant and equipment	22		31
	Minimum lease payments under operation lease in
	respect of leasehold land and buildings	1,248		877
	Fair value gain on derivative financial instruments	–	(1,343)
	Provision for impairment of trade and bills receivables	3,746	11,372
	Write-off of property, plant and equipment	300		–

8. INCOME TAX EXPENSE

	Six months ended	Six months ended
	30 September
	2014	2013
	(Unaudited)	(Unaudited)
	*HK$’000*	HK$’000
Hong Kong	–	–
Elsewhere	1,126	575
Total income tax expense	1,126	575

No Hong Kong profits tax was provided as the Group did not generate any assessable profits arising from its operation in Hong Kong during the Period (2013: Nil). Taxes assessable in elsewhere have been calculated at the prevailing rates of tax based on existing legislation, interpretations and practices.

9. INTERIM DIVIDEND

The Directors do not recommend the payment of an interim dividend for the Period (2013: Nil).

10. EARNINGS PER SHARE

The calculation of basic earnings per share is based on the profit for the Period of approximately HK$8,983,000 (2013: HK$4,185,000) attributable to owners of the Company and 525,000,000 (2013: 525,000,000) ordinary shares in issue during the Period. Diluted earnings per share has not been presented as there were no potential ordinary shares in issue during the Period.

11. TRADE AND BILLS RECEIVABLES

The Group’s trading terms with its customers are mainly on credit, except for new customers, where payment in advance is normally required. The normal credit period granted by the Group to its customers ranges from 30 to 180 days.

Ageing analysis of the trade and bills receivables as at the reporting dates, based on the date of revenue recognition and net of provision, is as follows:

As at 30 September 2014 (Unaudited) *HK$’000* Within 90 days 205,584 91 to 120 days 23,118 121 to 180 days 33,368 181 to 360 days 44,018 Over 360 days 36,733 342,821	As at 31 March 2014 (Audited) HK$’000 105,868 22,864 26,829 71,006 40,104
	266,671

12. TRADE AND BILLS PAYABLES

Ageing analysis of the trade and bills payables as at the reporting dates, based on invoice date, is as follows:

As at
30 September
2014
(Unaudited)
HK$’000
Within 90 days
151,255
91 to 120 days
7,233
Over 120 days
9,135
167,623
13. SHARE CAPITAL
As at
30 September
2014
(Unaudited)
HK$’000
Authorised:
2,000,000,000 ordinary shares of HK$0.10 each
200,000
Issued and fully paid:
525,000,000 (31 March 2014: 525,000,000) ordinary shares of HK$0.10 each
52,500

As at
31 March
2014
(Audited)
HK$’000
147,663
1,682
7,037
156,382
As at
31 March
2014
(Audited)
HK$’000
200,000
52,500

14. COMMITMENTS

At the reporting date, the Group had the following outstanding commitments

Operating lease commitments – as lessee

The Group had total future minimum lease payment under non cancellable operating lease falling due as follows:

As at 30 September 2014 (Unaudited) *HK$’000* Within one year 1,508 In the second to fifth years, inclusive 86 1,594	As at 31 March 2014 (Audited) HK$’000 1,604 384 1,988

Capital Commitments

	As at	As at
	30 September	31 March
	2014	2014
	(Unaudited)	(Audited)
	*HK$’000*	HK$’000
Contracted but not accounted for in respect of
acquisition of property, plant and equipment	265	169

15. CONTINGENT LIABILITIES

There were no material contingent liabilities as at 30 September 2014 and 31 March 2014.

CHAIRMAN’S STATEMENT

Though this year the Chinese economy is overshadowed by growth seen in previous years, nevertheless, the increase in demand for automatic intelligent equipment from enterprises has provided many opportunities for the Group. The transformation of the Chinese economy is still underway while the European and U.S. economies have not fully recovered, which negatively affected the Group’s operation. However, with Sun East’s 30 years brand history and solid foundation, the Group recorded increases in the profit and sales for the first half of the year.

In the past six months, other than the growth in business development and performance, the Group also achieved defining interim breakthroughs for the introduction and research and development of new products, particularly for selective soldering and screen printing machine products, where their performance gives them leading position in the world with comprehensive competitiveness. At the same time, the Group has established a wholly-owned financial leasing company in Qianhai Shenzhen. It can enhance sales and brand promotion for the Group by providing financial solutions and advises to customers, and laying the foundation for the Group’s upstream and downstream business integration in the future.

Enterprise development is inseparable from investment in the training of personnel as well as in research and development. In attracting talents, the Group will provide a platform for growth and opportunity for the loyal employees to spread their wings by way of partnership. In enhancing operating effectiveness, the Group will implement independent project accounting, operational management in segments and groups, and fair and reasonable allocation for the existing operations and products in terms of product research and development, management and operation.

On the management level, there were adjustments made to align the current situation with the Group’s future goals and prospects, such as applying quantitative decision making, and optimising internal risk control and financial budget system in order to strengthen the Group’s future development.

Finally, I would like to thank shareholders for their continued support for the Group.

BUSINESS REVIEW

Brand Production Equipment Business

Due to the promulgation of the Implementation Measures for the Promotion of LED Lighting Products in Guangdong Province by the Guangdong Province Government in May 2012, the market demand for SMT machines and semi-conductor surged and this momentum has extended to the first half of this year. Therefore, the sales of SMT machines and surface mounting equipment for semi-conductor etc. continued to increase in the past half year comparing to the same period of last year. In addition, during the past half year, the Group has achieved breakthroughs in the research and development of new products, particularly for the function improvement and launching of new models of selective soldering and screen printing machine products, which we believe will bring remarkable revenue to the Group over time.

The sales of SMT and welding related equipment amounted to approximately HK$337.5 million, representing an increase of approximately 12.7% when compared to approximately HK$299.5 million in same period of last year. However, the selling price did not increase with the rise in demand because the Group has maintained the strategy of implementing a small profit margin in the pursuit of large sale quantity so as to keep the market share. The gross profit margin was also maintained at the same level of approximately 14.8%.

OEM Industry

With the increase of China’s production costs such as wages and raw materials, the profit of OEM business is slimmed. Compared with the corresponding period last year, sales increased from approximately HK$33.5 million to HK$33.8 million, which basically remained at the same level. However, gross profit margin decreased from approximately 11% to 5% due to sustained increases in labour costs etc.

Because of the market conditions, the increased costs could not be passed directly onto the customers. To sustain the Group’s competitiveness in the OEM market, the group strategizes to achieve economies of scale, cost reduction, quality control, rework rate reduction and improved operational efficiency with limited wastage. In addition, orders from a major OEM customer in Spain decreased. To reduce the dependence of OEM operation on overseas customers in the future, the Group hired additional OEM salespersons this year to develop the domestic market with full effort while actively pursuing new elements and products.

Automated and Logistic Business

Continuing the good momentum of last year, the sales of automated and logistic business remain hot in the past six months. Compared with the corresponding period last year, sale amount increased from approximately HK$108.4 million to approximately HK$110.4 million, basically remained at the same level. The gross profit ratio remained at around 14.4%. As previously expected, domestic enterprises increased investment in automation and intelligent to reduce their reliance on labour, and as a result, the automated and logistic business achieved good development.

FINANCIAL REVIEW

Turnover and Gross Profit

During the period under review, the turnover of the Group reached approximately HK$481.7 million and represented an increase of 9.13% when compared with approximately HK$441.4 million in last period. Other than the marketing strategy – to keep the market share by implementation of small profit margin in pursuit of large sale quantity, the upturn of sale amount was mainly due to the increase of investment in fixed assets of PRC companies. Entrepreneur in PRC were aware of that the increasing of labour cost in PRC would be an irreversible trend and it also is the national policy. Companies employed more resource to intelligent manufacturing systems and equipment in order to seek effectiveness and profitability. The increase of the sale amount mainly came from Brand Name Production Equipment business which recorded an increase of 12.7%.

During the period under review, the gross profit ratio was approximately 14.0%, representing a slightly drop of approximately 0.3%, as compared with the corresponding period approximately 14.3%. The decrease of the GP ratio was driven predominantly by the increasing in product cost due to the minimum wage continued increase in PRC.

Other Income and Gains

During the period under review, the Group recorded other income and gains of approximately HK$12.1 million. It mainly represents approximately HK$7.0 million government grant under import discount interest refund scheme, approximately HK$1.6 million interest income and approximately HK$1.3 million exchange gains.

Selling and Distribution Expenses

During the year, the Group recorded a selling and distribution cost at approximately HK$35.5 million and it represents 7.4% of the turnover which is almost the same as the last period under review.

General and Administrative Expenses

The management of the Group implemented various methods to control its general and administrative expenses including departmental cost budgeting and enhancement of the efficiency by review manpower. During the period under review, the administrative expenses were approximately HK$28.8 million and it increased approximately HK$6.6 million compared to last period under review approximately HK$22.2 million. Such increase was mainly due to the increase in the labour cost and the new establishment of R&D centre in Suzhou.

Finance Costs

Finance costs for the period under review amounted to approximately HK$1.5 million, representing an increase of approximately HK$0.8 million, as compare with approximately HK$0.7 million in last period under review. The current period interest expenses represent the interest expenses under the bank borrowing under the hedging arrangement approximately HK$0.8 million and bank borrowing under normal term HK$0.7 million.

Profit for the Period

As result of the foregoing, the profit attributable to the owners of the Company for the Period under review was approximately HK$9.0 million, representing an increase of approximately HK$4.8 million, as compared with approximately HK$4.2 million in corresponding period. The net profit margin was approximately 1.9% for the period under review as compared with approximately 1% in corresponding period.

EBITDA

The following table illustrates the Group’s EBITDA for the respective Periods. The Group’s EBITDA margin was 3.5% for the period under review as compared with 2.4% in corresponding Period.

Profit for Period attributable to owners of the Company Finance cost Income tax expenses Depreciation and amortization EBITDA	Six months ended 30 September 2014 2013 (Unaudited) (Unaudited) *HK’000* HK’000 8,983 4,185 1,476 693 1,126 575 5,168 5,153 16,753 10,606	Six months ended 30 September 2014 2013 (Unaudited) (Unaudited) *HK’000* HK’000 8,983 4,185 1,476 693 1,126 575 5,168 5,153 16,753 10,606
		10,606

Financial Resource, Liquidity and Gearing Ratio

During the Period, there was no material change in the Group’s treasury policy but the increase of number of single-large contracts and extension of construction period created pressure on Group’s capital. As at 30 September 2014, the Group had sufficient cash and banking facilities from its main bankers to finance ongoing working capital requirements. The Group maintained high value of net current assets at approximately HK$173.6 million and healthy current ratio at 1.4 times (both are adjusted by excluding of pledged deposits of HK$70.9 million and bank borrowings of HK$61.0 million for hedging purpose). The gearing ratio of the Group (excluded bank borrowings of HK$61.0 million for hedging purpose) was 9.3%. (31 March 2014: nil).

Working Capital Management

The Group continued to maintain a healthy financial position. As at 30 September 2014, the Group held approximately HK$48.8 million cash and bank balances, which declined HK$39.7 million from HK$88.5 million at the beginning of the Period. The group’s average inventory turnover days was approximately 55 days (31 March 2014 approximately 55 days). The Group’s average debtors turnover days was approximately 115 days (31 March 2014 approximately 100 days). The Group’s average creditors turnover days was approximately 71 days (31 March 2014 approximately 71 days). The Group remains confident that the net cash position will improve further given continuing profitability and management’s continued focus on close working control.

Capital Expenditure on Property, Plant and Equipment

Total capital expenditure for the year was approximately HK$2.3 million, out of which approximately HK$0.7 million was spent on the acquisition of machinery and equipment, HK$0.8 million on acquisition of furniture, fixture and leasehold improvement and HK$0.8 million on acquisition of motor vehicles.

Charges on Group Assets

As at 30 September 2014, the Group’s banking facilities including its import/export, letter of credit documentary credits, and trust receipt and bank borrowings are secured by:

(i) a first legal charge on certain of the Group’s leasehold land and buildings, which had an aggregate net carrying amount at the reporting date of HK$11.1 million;
(ii) bank deposits approximately HK$70.9 million;
(iii) cross guarantee provided by subsidiaries in the Group; and
(iv) corporate guarantees provided by the Company.

EMPLOYEES

At 30 September 2014, the Group employed approximately 1,412 staff and workers in the PRC and approximately 13 staff were employed from Hong Kong. The Group remunerates its employees based on industry’s practice. In the PRC, the Group provides staff welfare and bonuses to its employees in accordance with the prevailing labour law. In Hong Kong, the Group provides staff benefits including defined contribution scheme and performance related bonuses.

PURCHASE, REDEMPTION OR SALE OF LISTED SECURITIES OF THE COMPANY

There was no purchase, sale or redemption of the Company’s listed securities by the Company or any of its subsidiaries during the Period.

MODEL CODE FOR SECURITIES TRANSACTIONS

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix 10 to the Listing Rules as a code of conduct regarding directors’ securities transactions. All the members of the Board have confirmed, following specific enquiry by the Company, that they have complied, with the required standards set out in the Model Code throughout the six months ended 30 September 2014.

CORPORATE GOVERNANCE PRACTICES

The Company acknowledges the importance of good corporate governance practices and procedures and regards a pre-eminent board of directors, sound internal controls and accountability to all shareholders as the core elements of its corporate governance principles. The Company endeavors to ensure that its businesses are conducted in accordance with rules and regulations, and applicable codes and standards. The Company has adopted the Code Provisions of the Corporate Governance Code (the “Code”) as set out in Appendix 14 to the Listing Rules.

The Board periodically reviews the corporate governance practices of the Company to ensure its continuous compliance with the Code. Save and except as hereinafter mentioned, the Company was in compliance with the Code for the six months ended 30 September 2014 except for the derivations from the Code Provision A.4.1 and A.6.7 as set out below.

Code Provision A.4.1

Code Provision A.4.1 stipulates that non-executive directors should be appointed for a specific term and subject to re-election. The Company’s non-executive directors are not appointed for a specific term but are subject to retirement by rotation in accordance with the Company’s Bye-Laws. As such, the Board considers that sufficient measures have been taken to ensure that the Company’s corporate governance practices are comparable with those in the Code 14.

Code Provision A.6.7

Pursuant to the Code Provision A.6.7, all Directors of the Company should attend general meetings. However, two Independent Non-Executive Directors were absent from the annual general meeting held on 18 August 2014 due to other business commitments. To ensure compliance with the Code in the future, the Company has arranged and will continue to arrange to furnish all Directors with appropriate information on all general meetings and take all reasonable measures to arrange the schedule in such a cautious way that all Directors can attend the general meetings.

Audit Committee

The Company has an Audit Committee (the “Committee”) which was established in accordance with the requirements of the CG Code, for the purpose of reviewing and providing supervision over the Group’s financial reporting process and internal controls. The Committee comprises three independent nonexecutive directors of the Company. The Group’s interim Results for the six months ended 30 September 2014 has been reviewed by the Committee. The Committee is of the opinion that these statements comply with the applicable accounting standards, and the Stock Exchange and legal requirements, and that adequate disclosures have been made.

PUBLICATION OF INTERIM REPORT ON THE STOCK EXCHANGE’S WEBSITE

The Company’s interim report containing all the information required by the Listing Rules will be published on the website of the Stock Exchange of Hong Kong Limited (www.hkex.com.hk) and the website of the Company (www.suneasthk.com) and be despatched to Shareholders in due course.

CAUTION STATEMENT

The Board wishes to remind investors that the above unaudited interim financial results and operational statistics for the six months ended 30 September 2014 and the corresponding period in 2013 are based on the Group’s internal information. Investors should note that undue reliance on or use of such information may cause investment risks. Investors are advised to exercise caution when dealing in the securities of the Company.

This announcement contains forward-looking statements regarding the objectives and expectations of the Group with respect to its opportunities and business prospects. Such forward-looking statements do not constitute guarantees of future performance of the Group and are subject to factors that could cause the Company’s actual results, plans and objectives to differ materially from those expressed in the forwardlooking statements. These factors include, but not limited to, general industry and economic conditions, shifts in customer demands, and changes in government policies. The Group undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances.

List of all Directors of the Company as at the date of this announcement:

Executive Directors: Mr. But Tin Fu (Chairman) Mr. But Tin Hing Mr. Leung Cheong

Independent Non-Executive Directors: Mr. See Tak Wah Prof. Xu Yang Sheng Mr. Li Wanshou

Mr. Leung Kuen, Ivan

By Order of the Board of Directors Sun East Technology (Holdings) Limited But Tin Fu Chairman

Hong Kong, 21 November 2014

For identification purpose only