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| - I.T. Integration & Solutions Service Segment Makes Outstanding Contribution |
HONG KONG, June 22, 2017 - (ACN Newswire) - Maxnerva Technology Services Limited ("Maxnerva" or the "Group"; stock code: 1037), an IT services and solutions provider, has today announced its audited consolidated annual results for the year ended 31 March 2017. Driven by the new I.T. Integration and Solutions Services segment commencing business since the second half of the year ended 31 March 2016, the Group has successfully turned around its business to report a net profit of approximately HK$75.5 million.
Financial Highlights for the full year ended 31 March:
- Revenue skyrocketed 349.6% to approximately HK$500.4 million due to the growth of I.T. Integration and Solutions Services segment
- Gross profit recorded at approximately HK$172.5 million, as compared to a gross loss of HK$28.0 million last financial year
- Net profit was approximately HK$75.5 million, as compared to a loss from continuing operations of approximately HK$72.8 million last financial year
- Basic earnings per share attributable to owners of the Company were HK11.4 cents
- Cash and cash equivalents amounted to approximately HK$219.4 million
During the year ended 31 March 2017 (the "Financial Year"), revenue of the Group surged approximately 349.6% to approximately HK$500.4 million (2016: HK$111.3 million). The Group recorded a consolidated gross profit of approximately HK$172.5 million (2016: gross loss of HK$28.0 million). The increase in revenue and gross profit was mainly contributed by the growth of I.T. Integration and Solutions Services segement which successfully obtained a number of sizeable solutions orders from Hon Hai Precision Industry Company Limited ("Hon Hai") and its group companies ("Hon Hai Group").
After provision for impairment of inventories, impairment of property, plant and equipment and fair value loss on financial assets at fair value through profit or loss, profit from continuing operations was approximately HK$75.5 million, compared with a loss of approximately HK$72.8 million last financial year. Cash and cash equivalents as at 31 March 2017 were approximately HK$219.4 million (2016: HK$216.2 million).
The Board does not recommend any payment of a final dividend.
Mr. Hui Lap Shun, John, Chairman of Maxnerva Technology Services Limited, said, "During the Financial Year, the shift of our business focus started to pay off, generating fruitful results for the Group, demonstrating that our new strategy is on the right track. The I.T. Integration and Solutions Services segment has commenced operation since the second half of the year ended 31 March 2016 to serve the fast growing 'Industry 4.0' market for businesses striving to drive efficiency through digitalisation."
The Group successfully obtained a number of sizeable solutions orders from Hon Hai Group. Seven major smart manufacturing projects, two major smart living projects and three smart office projects with Hon Hai Group were completed. Approximately 63.7% of the total revenue of the Group was attributable to Hon Hai Group during the Financial Year. Moreover, the Group has also built business relationships with global strategic partners such as Siemens and Intel, since 2016, sharing core technology to enhance Industry 4.0 offerings and collaborating in maximizing efficiency, reliability and flexibility for its customers. By cooperating with a number of leading global technology partners, the Group aims at delivering a clearly differentiated market position as a strong new entrant in the technology integration and solutions market.
During the Financial Year, the I.T. Integration and Solutions Services segment has become the main revenue driver of the Group, contributing approximately HK$396.8 million of revenue for the same period, representing approximately 79.3% of the Group's total revenue during the Financial Year.
Revenue from the Electronic Products Manufacturing segment was approximately HK$103.6 million, an increase of 10.1% (2016: HK$94.1 million). This segment continued to recorded a loss of approximately HK$29.7 million (2016: loss of HK$54.0 million) which was mainly attributable to its operating loss and provision for impairment of inventories.
"Looking ahead, with the support of Chinese government in promulgating the strategic directive 'Made in China 2025', the Directors are optimistic about the I.T. Integration and Solutions Services business segment of the Group. The Group continues to work closely with global strategic partners to elevate solutions quality and technical competency and to seek cooperative business opportunities. As for its Industry 4.0-related business strategy, the Group is currently focusing on the provision of Enterprise Applications (i.e. SAP), Manufacturing Execution System, Business Intelligence and equipment automation services and targeting the food and beverage, consumer electronics and automotive industries.
"As for the food and beverage industry, the Group is currently working on a proof-of-concept project with a well-known Chinese liquor company for one of their 30+ bottle inspection lines. The Group thereby aims to establish its solutions as the standard in the Chinese liquor industry. This project presents a huge business opportunity to the Group since other Chinese liquor companies will follow suit to establish such automated lines. For consumer electronics and automotive industries, the Group is currently working with a home appliance and a motorcycle manufacturer respectively on implementation of a SAP system.
"To diversify our client portofolio, we are in talks with a number of potential clients other than Hoi Hai Group within these industries for the provision of our Industry 4.0 solutions and we expect to enter into service agreements with some of them soon," Mr. Hui concluded.
About Maxnerva Technology Services Limited
Maxnerva Technology Services Limited (HKS: 1037) is a system integration specialist, mainly engaged in the provision of system and network integration, I.T. solutions development and implementation, and related maintenance services. Maxnerva's solutions enable businesses to scale rapidly and efficiently, capturing and turning physical data into smart decisions.
Media Enquiries:
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
Topic: Press release summary
Source: Maxnerva Technology Services Limited
Sectors: Daily Finance, Cloud & Enterprise
https://www.acnnewswire.com
From the Asia Corporate News Network
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