Tradelink Announces 2011 Interim Results

Date:2011-08-25liming  Text Size:

(Hong Kong, 23 August 2011) – Tradelink Electronic Commerce Limited (“Tradelink” or “the Group”) (SEHK Stock Code: 0536) today announced its unaudited interim results for the six months ended 30 June 2011.

In the first half of 2011, the Group’s turnover declined 4.5%, to HK$101.5 million, mainly due to intense competition and a shrinkage in the Government Electronic Trading services (“GETS”) market. However, the Group’s operating profit and distributable profit increased to HK$34.4 million and HK$28.7 million respectively, a 7.2% and 10.4% increase when compared with the same period last year, as a result of a 12.3% improvement in operating margin to 33.9%. Basic earnings per share was Hong Kong cents 3.76. The Board resolved to declare an interim dividend of Hong Kong cents 2.8 per share, a 12% increase over 2010.

In response to the intense competition and the declining market, the Group has been working actively on developing new services to improve its service offering and to open up new revenue streams for the Group. In May 2011, it launched a new convenient, one-stop service for customers to acquire cargo insurance. It expects to launch at least one more new service in the second half of 2011. In addition, its Supply Chain Management (“SCM”) applications have now been fully integrated with the Digital Trade and Transportation Network (“DTTN”) functionalities, enabling the Group to offer better solutions to customers. Furthermore, leveraging on its experience and domain knowledge in the field, the Group is in the process of generalizing previously customized SCM solutions into standard application suites for deployment on its new end user solution platform which will be rolled out later this year.

During the first half of this year, Digi-Sign Certification Services Limited (“Digi-Sign”) continued to make good progress. In March, Digi-Sign delivered its digital certification services to enable the service provider operating a major Automatic Teller Machines (“ATM”) network in Hong Kong and Macau to deploy their chip-based ATM cards. It also entered into an agreement with a major bank in Hong Kong to provide security token services to meet its e-banking needs. Service rollout is anticipated for the final quarter of this year. In addition, it is currently working with a consortium of banks to develop a common authentication scheme to support their e-banking needs and which will be extended at a later stage to their credit cards users.

To re-inforce and facilitate DTTN’s expansion into the China market, the Group has revised its China strategy to focus on investing in strategic partners whose businesses have strong synergy with Tradelink. The Group has plans to invest a total of RMB 9.4 million in two such partners in the second half of 2011.

“Despite signs of a slowdown in both our main export markets and in China, I am hopeful that the commencement of our e-banking security and other new services in the second half of 2011 will make up for most of the expected decline in our GETS market. I therefore remain confident of Tradelink’s performance for the rest of the year.” said Mr. Michael Wu, CEO of Tradelink.

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