Business Review
The Group continued to specialize in the provision of implementation and upgrading of self-service automatic teller
machine ("ATM") systems, banking and other related equipment, application hardware and software, technical support
and consultancy services to commercial banks and Postal Bureaus in the People's Republic of China (the "PRC" or "China") during the year ended 31 March 2010.
The Group's revenue amounted to approximately HK$28.0 million for the year ended 31 March 2010, representing a
drop of approximately 35.9 per cent., compared with approximately HK$43.6 million recorded for the financial year
ended 31 March 2009. The decrease in revenue was mainly attributed to the continued slow down in the PRC economy
as a result of the global financial crisis as well as the fierce competition among suppliers of ATM systems in China.
As a result, the Group's gross profit margin was approximately 27.5 per cent. in the financial year ended 31 March 2010
(2009: approximately 38.7 per cent.).
The Group recorded a loss attributable to equity holders amounting to approximately HK$28.6 million for the year
ended 31 March 2010 (2009: loss attributable to equity holders of approximately HK$3.2 million), mainly as a result
of the recognition of the one-off expenses arising from the possible acquisition of the entire issued share capital of
China-Rus Energy Investment Limited and impairment loss on the initial deposit paid in such possible acquisition. The
Company decided to terminate such possible acquisition and rescinded the acquisition agreement with effect from 28
May 2010. Please refer to the Management Discussion and Analysis section for details.
Basic loss per share was approximately HK5.49 cents for the year ended 31 March 2010, compared with the basic loss
per share of approximately HK0.70 cents for the year ended 31 March 2009.
In respect of marketing and sales of self-service ATM systems, banking and other equipment as well as the provision
of system maintenance and enhancement services to financial institutions, the Group maintained its position with
new contracts clinched with Bank of Wenzhou, Postal Savings Bank of China, the Commercial Bank, Shanghai Pudong
Development Bank, Bank of Communications, Bank of Jiangsu, Bank of Yingkou, Rural Commercial Banks, Rural Credit
Cooperatives of China and several branches of the China State Postal Bureau during the year under review.
During the year ended 31 March 2010, the Company has successfully raised approximately HK$39.0 million and
HK$10.0 million from the market through placement of new shares and unlisted warrants of the Company respectively.
The funds raised have enhanced the capital base of the Company and provided strong resource for the Group to
expand its core businesses and to explore new business opportunities in the future.
BUSINESS PROSPECTS
The Group is recognized as a prestigious and experienced professional ATM software, hardware and services company
in the ATM sector, and is an authorized value-added reseller of self-service ATM systems of NCR (Beijing) Financial
Equipment System Co., Ltd and related applications software for commercial banks in China.
The Group will fully commit itself to being one of the leading ATM Total Solution Providers in the banking sector in
the PRC and offering a full range of banking and financial system solutions for the banking and financial sectors, and
persist to put efforts on enhancing closer customer relationships, broadening business relationship and exploring new
business opportunities in corporate outsourcing technical service sector.
Leveraging on our prudent and experienced management and our strong and determined workforce, the Group,
by keeping on boosting its marketing effort in the PRC to bring in new customers, will strive to maintain and
expand its operations further, thus expanding our market share while at the same time bringing greater return to our
shareholders.
DIVIDEND
The board of directors of the Company does not recommend the payment of a dividend for the financial year ended
31 March 2010 (2009: Nil).
APPRECIATION
We treasure the harmonious relationship with our staff and would like to take this opportunity to express our gratitude
to the management and staff of the Group for their dedicated performance which is instrumental to the future
development of the Group. We would also like to take this opportunity to thank our shareholders, suppliers and
customers for their continuous support to the Group.
