2019 ANNUAL REPORT - InvesTech Holdings Limited

8InvesTech Holdings Limited 威訊控股有限公司CHAIRMAN’S STATEMENT主席報告In addition, the Group will continue to explore proactively �具有商機的make investments in overseas market with business 一帶一路倡議」及「粵including but not limited to the opportunities from “One Belt and �從而降低市Road Initiative” and “Guangdong-Hong Kong-Macao Greater Bay ��帶來更好的回報。Development” policies, so as to reduce market risks and providea better return to the shareholders (the “Shareholders”) of theCompany.APPRECIATION致謝On behalf of the Board of directors of the Company, I express 支持本集團gratitude to our Shareholders for your continuous support to �貢獻表示感Group, and to express our appreciation to our dedicated staff for 伴、股東及董contributions as well as hard work, and to our customers, business事一直以來給予支持。partners, shareholders and directors for their continuing support.Yours faithfully,此致Chan Sek Keung, Ringo陳錫強Chairman and CEO主席兼總裁27 March 2020二零二零年三月二十七日

ANNUAL REPORT 2019 二零一九年年報FINANCIAL SUMMARY財務摘要A highlight of results, selected financial ratios, assets and 與負債及現金流量and cash flows is as follows:的概要如下：RESULTS INFORMATION業績資料Year ended 31 414,864Gross profit毛利65,04235,606Loss before tax除稅前虧損(22,638)(58,416)Loss for the year年度虧損(24,665)(54,657)Loss attributable to:– Owners of the parent– Non-controlling ,486)(24,665)(54,657)(1.51)(3.95)Loss per share– Basic and diluted (RMB �）9

10InvesTech Holdings Limited 威訊控股有限公司FINANCIAL ofit/(Loss) Attributable to the Owners of the Parent母公司擁有人應佔溢利 al 1,000,000500,00002015##For continuing operations only201620172018#僅就持續經營而言2019

ANNUAL REPORT 2019 二零一九年年報FINANCIAL CTED FINANCIAL RATIOS ��）Gross profit marginNet (loss)/profit marginCurrent ratio (times)Gearing ratio(1)Return on total assets(2)Return on total equity(2)毛利率（淨虧損） 純利率流動比率（倍）資本負債比率 (1)總資產回報 (2)總權益回報 (2)Year ended 31 �(approximate) (approximate) lculated by using the total of short-term and long-term borrowingsand coupon notes divided by total ��票據除以總資產計算。(2)Calculated by using average balances of total assets and total ��計算。*The ratios were calculated using data from continuing �。11

12InvesTech Holdings Limited 威訊控股有限公司FINANCIAL SUMMARY財務摘要資產與負債資料ASSETS AND LIABILITIES INFORMATIONCash and cash equivalents現金及現金等價物(excluding pledged deposits) （不包括已抵押存款）Current assets流動資產Non-current assets非流動資產Current liabilities流動負債Non-current liabilities非流動負債Equity attributable to母公司擁有人owners of the parent應佔權益Non-controlling �活動所得 （所用）現金淨額投資活動（所用） 所得現金淨額融資活動（所用） Year ended 31 0人民幣千元現金流量資料CASH FLOWS INFORMATIONNet cash from/(used in)operating activitiesNet cash (used in)/frominvesting activitiesNet cash (used in)/fromfinancing activitiesAs at 31 ,486)(2,902)47,405213,382(170,653)

ANNUAL REPORT 2019 二零一九年年報FINANCIAL SUMMARY財務摘要A summary of consolidated financial results for the five years 五個年度的綜31 December 2019 is as �一九年RMB’000人民幣千元Year ended 31 )(39,018)(33,569)(8,025)(Loss)/profit before tax fromcontinuing operationsIncome tax (expense)/creditLoss for the year from adiscontinued operation持續經營除稅前（虧損） 溢利所得稅（開支） 3,780)––––(12,537)(Loss)/profit for the year年度（虧損） 溢利(24,665)(54,657)(96,707)(68,873)25,193Other comprehensive (loss)/incomethat may be reclassified to profitor loss in subsequent periods:Exchange differences ontranslation of foreign ��其他全面（虧損） 602(18,736)5,3852,988Other comprehensive income thatwill not be reclassified to profitor loss in subsequent periods:Exchange differences ontranslation of the Company’sfinancial statements intopresentation currencyFinancial asset at fair valuethrough other comprehensiveincome:Change in fair valueIncome tax 4,757RevenueCost of sales收入銷售成本Gross profitOther income and gainsSelling and distribution expensesAdministrative expensesOther expenses, netFinance 融資產：公允價值變動所得稅影響Other comprehensive (loss)/incomefor the year, net of tax年度其他全面（虧損） 收益，扣除稅項Total comprehensive (loss)/incomefor the year年度全面（虧損） 收益總額13

14InvesTech Holdings Limited 威訊控股有限公司FINANCIAL 民幣千元(Loss)/profit attributable to:– Owners of the parent– Non-controlling interestsTotal comprehensive (loss)/incomeattributable to:– Owners of the parent– Non-controlling interests(Loss)/earnings per share –Basic and diluted (RMB cents)以下各方應佔（虧損） �下各方應佔全面（虧損） �益每股（虧損） 盈利－基本及攤薄（人民幣分）Year ended 31 7(1.51)(3.95)(10.38)(8.73)3.48

ANNUAL REPORT 2019 二零一九年年報MANAGEMENT DISCUSSION AND ANALYSIS管理層討論及分析BUSINESS REVIEW業務回顧Revenue收入The Group recorded a total revenue of approximately RMB488.7截 至 二 零 一 九 年 十 二 月 三 十 一 日 止 年 度，本 集million for the year ended 31 December 2019, representing an團錄得總收入約人民幣 488.7 百萬元，與截至二increase of approximately RMB73.8 million, or approximately 人民幣 414.9as compared with that of approximately RMB414.9 million for百 萬 元 相 比，增 加 約 人 民 幣 73.8 百 萬 元 或 約the year ended 31 December 2018. The increase of revenue 務發展提primarily attributable to improvement of competitive strength by升競爭實力所致。continued investment in business development.Cost of Sales銷售成本The cost of sales increased by approximately RMB44.3 million, 十一日止年approximately 11.7%, from approximately RMB379.3 million for the度約人民幣 379.3 百萬元增加約人民幣 44.3 百萬year ended 31 December 2018, to approximately RMB423.6 million元或約 11.7% 至截至二零一九年十二月三十一日for the year ended 31 December 2019. The increase was primarily止年度約人民幣 423.6 百萬元。增加主要歸因於attributable to the increase in sales volume.銷售量增加。FINANCIAL REVIEW財務回顧Gross Profit and Margin毛利及毛利率The Group’s gross profit for the year ended 31 December ��度，本集團amounted to approximately RMB65.0 million, representing an的毛利約為人民幣 65.0 百萬元，較截至二零一八increase of approximately RMB29.4 million, or approximately 82.6%年十二月三十一日止年度約人民幣 35.6 百萬元增as compared with that of approximately RMB35.6 million for the year加約人民幣 29.4 百萬元或約 82.6%。增加主要由ended 31 December 2018. The increase was primarily �的網絡設備及軟件to an increase of revenue contribution from network equipment產品的收入貢獻增加所致。and software product with higher gross profit margin in the salesportfolio of the Group.The gross profit margin increased to approximately 13.3% for �一日止年度year ended 31 December 2019 from approximately 8.6% for the約 8.6% 升 至 截 至 二 零 一 九 年 十 二 月 三 十 一 日 止year ended 31 December 2018. The increase in gross profit margin年度約 was primarily attributable to an increase of revenue �利率較高的銷售帶from sales with higher gross profit margin for the year ended 31來的收入貢獻增加所致。December 2019.15

16InvesTech Holdings Limited 威訊控股有限公司MANAGEMENT DISCUSSION AND ANALYSIS管理層討論及分析FINANCIAL REVIEW (continued)財務回顧（續）Other Income and Gains其他收入及收益The Group recorded other income and gains of approximately �年度，本集團million for the year ended 31 December 2019, mainly including (i)錄得其他收入及收益約人民幣 3.9 百萬元，主要government grants released of approximately RMB1.6 million; (ii) a包 括 (i) 已 發 放 政 府 補 貼 約 人 民 幣 1.6 百 萬 元；(ii)fair value gain on debt investment at fair value through profit or ��允價值收益of approximately RMB1.2 million; and (iii) finance income on the net約人民幣 1.2 百萬元；及 (iii) 租賃投資的融資收入investment in a lease of approximately RMB0.5 million.淨額約人民幣 0.5 百萬元。Selling and Distribution Expenses銷售及分銷開支The selling and distribution expenses increased by ��日止年度，銷售及RMB2.5 million for the year ended 31 December 2019, 十一日止年approximately 11.3%, as compared with that of approximately度約人民幣 22.2 百萬元增加約人民幣 2.5 百萬元RMB22.2 million for the year ended 31 December 2018. The increase或約 二was primarily due to an increase in the salary and commission �門員工薪金the staff in sales and marketing department which was in line he increase in revenue for the year ended 31 December 2019.Administrative Expenses行政開支The administrative expenses increased by approximately RMB8.1截 至 二 零 一 九 年 十 二 月 三 十 一 日 止 年 度，行 政million for the year ended 31 December 2019, or ��三十一日止年度16.9%, as compared with that of approximately RMB47.9 million for約人民幣 47.9 百萬元增加約人民幣 8.1 百萬元或the year ended 31 December 2018. The increase was primarily due to約 二月an increase in staff cost for business development for the year 員工成本所致。31 December 2019.

ANNUAL REPORT 2019 二零一九年年報MANAGEMENT DISCUSSION AND ANALYSIS管理層討論及分析FINANCIAL REVIEW (continued)財務回顧（續）Other Expenses其他開支Other expenses amounted to approximately RMB6.8 million for �度，其他開year ended 31 December 2019, which was primarily resulted from (i)支 約 為 人 民 幣 6.8 百 萬 元，主 要 由 (i) 貿 易 應 收 款impairment of trade receivables of approximately RMB3.6 million and項減值約人民幣 3.6 百萬元；及 (ii) 按公允價值計(ii) fair value loss on equity investment at fair value through profit 人民幣 2.8loss of approximately RMB2.8 million.百萬元所致。Finance Costs融資成本The finance costs decreased by approximately RMB5.6 million 度，本集團approximately RMB4.1 million for the year ended 31 December 月三十一日止as compared with that of approximately RMB9.7 million for the year年度約人民幣 9.7 百萬元減少約人民幣 5.6 百萬元ended 31 December 2018. The significant decrease was mainly至約人民幣 4.1 able to early redemption of coupon notes with an �金總額為約人民principal amount of approximately RMB48.9 million in January and幣 48.9 百萬元的利息票據所致。February 2019.Income Tax所得稅The Group incurred income tax expense of approximately �年度，本集團million for the year ended 31 December 2019 primarily due to產生所得稅開支約人民幣 2.0 百萬元，主要來自the current income tax expense of approximately RMB5.5 million,於即期所得稅開支約人民幣 5.5 百萬元，被於二which was offset by deferred income tax credit from amortisation零一五年十一月收購 Fortune Grace Managementof intangible assets acquired by the acquisition of Fortune GraceLimited 所 收 購 之 無 形 資 產 攤 銷 所 產 生 遞 延 所 得Management Limited in November 2015 of approximately RMB3.5稅 抵 免 約 人 民 幣 3.5 百 萬 元 所 抵 銷。整 體 而 言，million. Overall, the Group’s effective tax rate for the year ended 日止年度December 2019 was -9.0%, compared with 6.4% for the year ended的實際稅率為 -9.0%，而截至二零一八年十二月31 December 2018, as certain subsidiaries of the Group recorded三十一日止年度則為 6.4%，此乃由於本集團若干taxable profits during the current 。Loss for the Year本年度虧損The net loss decreased by approximately RMB30.0 million for the截 至 二 零 一 九 年 十 二 月 三 十 一 日 止 年 度，本 集year ended 31 December 2019, or approximately 54.8%, as compared團 的 虧 損 淨 額 減 少 約 人 民 幣 30.0 百 萬 元 或 約with that of approximately RMB54.7 million for the year ended ��一日止December 2018. The decrease was mainly attributable to (i) the年度的虧損淨額則約為人民幣 54.7 百萬元。減少increase in gross profit of approximately RMB29.4 million; (ii) the主要由於 (i) 毛利增加約人民幣 29.4 百萬元；(ii) 其decrease in other expenses of approximately RMB13.1 million; and他 開 支 減 少 約 人 民 幣 13.1 百 萬 元；及 (iii) 融 資 成(iii) the decrease in finance costs of approximately RMB5.6 million.本減少約人民幣 5.6 百萬元。虧損淨額減少部分The decrease of net loss was partially offset by (i) the increase in被 (i) 行政開支增加約人民幣 8.1 百萬元；及 (ii) 銷administrative expenses of approximately RMB8.1 million; and (ii)售及分銷開支增加約人民幣 2.5 百萬元所抵銷。the increase in selling and distribution expenses of approximatelyRMB2.5 million.17

18InvesTech Holdings Limited 威訊控股有限公司MANAGEMENT DISCUSSION AND ANALYSIS管理層討論及分析FINANCIAL REVIEW (continued)財務回顧（續）Liquidity and Financial Resources流動資金及財務資源The Group continues to implement prudent financial ��慎的財務管理policies and maintains a relatively low gearing ratio during �率。於二零operations. As at 31 December 2019, the Group’s gearing 資本負債比率(measured by total of short-term and long-term borrowings �除以總資產coupon notes divided by total assets) was approximately 5.8% (31計 算）約 為 5.8%（二 零 一 八 年 十 二 月 三 十 一 日：December 2018: approximately 6.7%). The decrease in gearing約 ��一九ratio was mainly due to the early redemption of coupon notes with年一月及二月提早贖回本金總額為 56.1 百萬港元an aggregated principal amount of HK 56.1 million in January and的利息票據。February 2019.As at 31 December 2019, the total interest-bearing bank and 集團的計息銀borrowings of the Group amounted to approximately RMB64.6 million行及其他借款總額約為人民幣 64.6 百萬元（二零(31 December 2018: approximately RMB42.7 million), among which一八年十二月三十一日：約人民幣 42.7 百萬元），approximately RMB38.9 million was unsecured and guaranteed by其中約人民幣 38.9 百萬元為無抵押及由本公司一a director of the Company. As at 31 December 2019, the �月三十一日，計bearing bank and other borrowings of approximately RMB42.3 million息銀行及其他借款其中約人民幣 42.3 百萬元按固carried at fixed interest rates and approximately RMB22.3 million定利率計息，而其中約人民幣 22.3 百萬元則按浮carried at floating interest rates.動利率計息。As at 31 December 2019, there were no outstanding coupon notes 團並無未償the Group (31 December 2018: approximately RMB48.9 million). �十一日：約coupon notes were unsecured.人民幣 48.9 百萬元）。利息票據為無抵押。Save as aforesaid or as otherwise disclosed in this report, and 以及集團內公from intragroup liabilities, the Company did not have any 十二月三十一日營loan capital issued and outstanding or agreed to be issued, ��行及未清償overdrafts, loans or other similar indebtednesses, 透支、貸款或其他under acceptances or acceptable credits, debentures, ��、債券、按揭、charges, hire purchases commitments, guarantees or other 大或然負債。contingent liabilities as at the close of business on 31 December2019.Save as disclosed in this report, the Directors have �，自二零一九年that there has been no material change in the indebtednesses �團的債務及contingent liabilities of the Group since 31 December 2019 to the date或然負債概無重大變動。of this report.

ANNUAL REPORT 2019 二零一九年年報MANAGEMENT DISCUSSION AND ANALYSIS管理層討論及分析FINANCIAL REVIEW (continued)財務回顧（續）Working Capital營運資本Inventories balance as at 31 December 2019 was approximately於 二 零 一 九 年 十 二 月 三 十 一 日，存 貨 結 餘 約 為RMB12.9 million (31 December 2018: approximately RMB13.4人 民 幣 12.9 百 萬 元（二 零 一 八 年 十 二 月 三 十 一million). The average turnover days for inventories was 11 days as at日：約 人 民 幣 13.4 百 萬 元）。於 二 零 一 九 年 十 二31 December 2019 (31 December 2018: 11 �為 11 日（二零一八年十二月三十一日：11 日）。Trade and bills receivables balance as at 31 December 2019 was於 二 零 一 九 年 十 二 月 三 十 一 日，貿 易 及 票 據 應approximately RMB210.3 million (31 December 2018: approximately收 款 結 餘 約 為 人 民 幣 210.3 百 萬 元（二 零 一 八 年RMB209.7 million). The average turnover days for trade and bills十二月三十一日：約人民幣 209.7 百萬元）。於二receivables decreased to 157 days as at 31 December 2019 �據應收款的December 2018: 193 days) which was mainly due to effective平均周轉日數減至約 157 日（二零一八年十二月collection of payments from customers.三十一日：193 ade payables balance as at 31 December 2019 was approximately於 二 零 一 九 年 十 二 月 三 十 一 日，貿 易 應 付 款 結RMB170.9 million (31 December 2018: approximately RMB159.6餘 約 為 人 民 幣 170.9 百 萬 元（二 零 一 八 年 十 二 月million). The average turnover days for trade payables decreased to三十一日：約人民幣 159.6 百萬元）。於二零一九142 days as at 31 December 2019 (31 December 2018: 150 days). The年 十 二 月 三 十 一 日，貿 易 應 付 款 的 平 均 周 轉 日decrease in turnover days was mainly due to the rising proportion of數減至 142 rchase with relatively shorter payment The Group’s cash conversion cycle for the year ended 31 December截 至 二 零 一 九 年 十 二 月 三 十 一 日 止 年 度，本 集2019 was 26 days as compared with 54 days for the year ended 31團 的 現 金 周 轉 周 期 為 26 日，而 截 至 二 零 一 八 年December 2018.十二月三十一日止年度則為 54 日。19

20InvesTech Holdings Limited 威訊控股有限公司MANAGEMENT DISCUSSION AND ANALYSIS管理層討論及分析FINANCIAL REVIEW (continued)財務回顧（續）Cash Flows現金流量The net cash flows from operating activities for the year ended 度，經營活December 2019 amounted to approximately RMB39.3 million.動所得現金流量淨額約為人民幣 39.3 百萬元。The net cash flows used in investing activities for the year 年度，投資活31 December 2019 of approximately RMB40.3 million was mainly動所用現金流量淨額約為人民幣 40.3 百萬元，主attributable to cash used in (i) placement of pledged bank deposits of要是由於 (i) 存入抵押銀行存款約人民幣 28.6 百萬approximately RMB28.6 million and (ii) purchase of a debt investment元及 (ii) 購買債務投資約人民幣 13.0 百萬元，部分of approximately RMB13.0 million, was partially offset by 幣 0.8 百萬元所received from debt investment of approximately RMB0.8 million.抵銷。The net cash flows used in financing activities for the year 年度，融資活31 December 2019

Mr. Wong Tsu Wai, Derek (with his former name of Wong Tat Wai, Derek) (Appointed on 1 August 2019) Independent Non-executive Directors Mr. Wong Chun Sek, Edmund Mr. Lu, Brian Yong Chen Mr. Huang Liangkuai AUDIT COMMITTEE Mr. Wong Chun Sek, Edmund (Chairman) Mr. Lu, Brian Yong Chen Mr. Huang Liangkuai COMPENSATION AND BENEFITS COMMITTEE