Univision Regulatory News (UVEL)

UniVision Engineering Limited

("UniVision" or the "Group")

Interim Results

For the Six Months Ended 30 September 2014

UniVision, the Hong Kong based Group whose principal activities are the supply, design, installation and maintenance of closed circuit television and surveillance systems, and the sale of security related products, is pleased to announce its unaudited interim results for the six months ended 30 September 2014.

Highlights:

· Profit attributable to the equity holders of HK$3m (H1 2013: HK$3.3m);

· Revenue decreased by 22% to HK$41m (H1 2013 HK$52m).

Mr. Stephen Sin Mo KOO, Executive Chairman, added:

"Our CCTV business has a high market recognition which provides a competitive advantage. We are pleased to have been successful in winning the MTRC maintenance contract for the 2015-2017 period. Local government infrastructure projects and the extension of MTR railway lines will support growth of the Group's income in future years though the revenue decreased in this period."

For further information visit www.uvel.com or contact:

UniVision Engineering Limited Tel: +852 2389 3256

Stephen Koo, Executive Chairman www.uvel.com

Chun Pan Wong, Chief Executive Officer

Danny Kwok Fai Yip, Finance Director

Nicholas Lyth, Non-Executive Director Tel: +44 (0) 7769 906686

ZAI Corporate Finance Limited

(Nominated Adviser and Broker) Tel: +44 (0)20 7060 2220

Richard Morrison www.zaicf.com

Chairman's Statement

Introduction

As announced on 2 December 2014, the Company proposed to demerge its Electrical and Mechanical ("E&M") and property division (the "Proposed Demerger") through an "in-specie" distribution of shares to UniVision's shareholders. The Board believes that the Proposed Demerger is in the best interests of the Company and Univision's shareholders. It will allow Univision to focus on its core Security and Surveillance business whilst the Leader Smart Group focuses on properties which are not related to Univision's core security and surveillance systems business. In fact, the two segments operate independently of each other and have different growth rates, business strategies and risk profiles. The procedure of Proposed Demerger is being carried out. Should all regulatory and tax clearances be obtained further details of the management, strategy and off-market dealing facilities in Leader Smart shares will be announced to the market. The Board will explore the possible trading platform for the listing of Leader Smart after the proposed distribution of shares.

The Company is still waiting for the judgment from the Guangzhou Arbitration Commission and will update the market about the Arbitration Process relating to Zhongshan Shopping Mall.

The core CCTV business continues to produce stable revenues and cash flows to the Group in facing of keen market competition. Our Gross Margin percentage has improved to 32% (H1 2013: 27%) though turnover decreased by 22% in the six month period. The Board expects that the business will improve following the announcement of several major proposed infrastructure projects in the coming years.

The Directors remain confident of the future of Univision and are optimistic about the Group's prospects.

Recognising the patience and confidence in Univision by its investors, the Company has paid a final dividend to the shareholders for the last two financial years.

Financial Review

In the six month period revenues for the Group decreased by 22% to HK$41m (H1 2013: HK$52m). The decrease of HK$11m in the revenue was mainly due to a significant drop in revenue in the Group's Taiwan construction business, which was caused by the decrease in job orders and delay of projects. These were caused by the reduction of expenditure budget by a local major customer. Further, last year's comparable figures included construction contract income of HK$7m from the Kai Tak Cruise Terminal project in Hong Kong. These factors led to revenue from the construction contracts division, including the E&M business, falling by 45%.

The maintenance business in Hong Kong is stable and continues to provide a steady profit margin. The Group's major customers are public organisations and sizeable private enterprises. As announced on 18 December 2014, the Group was awarded a new maintenance contract with MTR Corporation Limited for three years commencing on 1 January 2015. It demonstrates the ability of the Group to successfully win high profile projects against keen market competition. The main maintenance contract and its sub-contracts will provide regular cash flow for the Group's operations. The Board anticipates demand for Security and Surveillance Systems from local government infrastructure projects and the commercial sector will increase in coming years. On the other hand, the Group's Taiwan maintenance business has improved and recorded a growth of HK$4.1m which partly offsets the significant fall in revenue in its construction business.

Group gross profit margin improved to 32% (2013: 27%). Gross profit margin in the Hong Kong construction business improved from 23% to 34%, compensating for a lower gross profit margin of 18% in Taiwan's construction business for the period due to increased cost for changing parts for systems.

Profit before interest and tax during the period at HK$2.6m (H1 2013: HK$3.6m), whilst the Group recorded a profit attributable to the equity holders of HK$3m (H1 2013: HK$3.3m).

The Taiwan subsidiary declared a dividend of TWD2.8m (HK$0.73m) during the period. The dividend has been paid to the holding company in December 2014 after deducting the withholding tax.

During the period under review, the relative weak in HK$ against GBP has led to 8.3% depreciation in the GBP reporting amount in the Consolidated Statement of Comprehensive Income. All figures in GBP in the Statement need to be adjusted for comparative purposes. The financial data is also presented in HK$ to provide a comparison with the comparative figures in 2013 that were unaffected by exchange rate fluctuations.

Business Review

Market

High Definition CCTV System technology is maturing and more solutions are available in the market. In the coming year Univision will commit resources to accessing and developing new technologies and solutions to cope with the future opportunities in this area.

The increase in concern over security and safety, and also the demand for high-quality images to replace the older surveillance systems are two contributing factors for the growth of the CCTV market.

New Contract

The Company was awarded two maintenance contracts from MTR Corporation Limited for CCTV and Public Address Systems in Hong Kong. The period of contracts are over three years commencing from 1 January 2015 to 31 December 2017. Along with these two maintenance contracts, more derived jobs are expected to follow.

Prospects

As the Company has stable income from the maintenance sector of our Security & Surveillance business and the subsequent completion of some major infrastructure projects and extension of railway lines, the Board are optimistic on the business growth in the coming years.

The Proposed Demerger will allow the management of Univision to have a more defined business focus on their core Security and Surveillance Systems business and enhance their responsiveness to market changes.

On behalf of the Board, I would like to thank our customers, suppliers and shareholders for their continued support of UniVision. I would also like to acknowledge the hard work of the management and all the staff for their contribution and dedication to the Group.

MR. STEPHEN SIN MO KOO

EXECUTIVE CHAIRMAN

19 December 2014

UniVision Engineering Limited

Consolidated Statements of Comprehensive Income (Unaudited)

For the six months ended 30 September 2014

For the six months ended 30 September

2014

2013

2014

2013

HK$000

HK$000

￡'000

￡'000

Revenue

40,811

52,103

3,148

4,353

Cost of sales

(27,907)

(38,066)

(2,152)

(3,180)

Gross profit

12,904

14,037

996

1,173

Other income

20

64

1

5

Other gains and (loss)

12

(585)

1

(49)

Selling and distribution expenses

(816)

(793)

(63)

(66)

Administrative expenses

(9,517)

(9,132)

(734)

(763)

Finance costs

(154)

(164)

(12)

(14)

Profit before income tax

2,449

3,427

189

286

Income tax expense

(0)

(0)

(0)

(0)

Profit for the period

2,449

3,427

189

286

Other comprehensive income / (loss):

Exchange differences arising on translation of foreign operations

1,215

1,692

367

(462)

Total comprehensive income / (loss) for the period

3,664

5,119

556

(176)

Profit/ (loss) attributable to:

Equity holders of the company

3,029

3,332

233

278

Non-controlling interests

(580)

95

(44)

8

2,449

3,427

189

286

Total comprehensive income / (loss) attributable to:

Equity holders of the company

4,235

4,978

594

(169)

Non-controlling interests

(571)

141

(38)

(7)

3,664

5,119

556

(176)

Profit /(loss) per share

HK Cents

HK Cents

Pence

Pence

Basic

0.7895

0.8683

0.0609

0.0726

Diluted

N/A

N/A

N/A

N/A

Consolidated Statement of Financial Position (Unaudited)

As at 30 September 2014

As at 30 September

2014

2013

2014

2013

HK$000

HK$000

￡'000

￡'000

ASSETS

Non-current assets

Plant and equipment

469

890

37

71

Goodwill

399

399

26

26

Amount due from customers for contract-in-progress

17,285

17,115

1,371

1,364

Total non-current assets

18,153

18,404

1,434

1,461

Current assets

Inventories

13,092

14,678

1,039

1,169

Trade receivables

15,126

12,922

1,200

1,131

Amount due from customers for contract-in-progress

168,239

166,918

13,347

13,307

Deposits, prepayments and other receivables

17,483

14,697

1,388

1,174

Cash and bank balances

4,168

6,093

330

485

Total current assets

218,108

215,308

17,304

17,166

Total assets

236,261

233,712

18,738

18,627

LIABILITIES AND EQUITY

Current liabilities

Trade and other payables

53,125

58,037

4,215

4,627

Amounts due to customers for contract-in-progress

8,068

4,568

640

364

Current tax liability

15,706

16,019

1,246

1,277

Interest-bearing borrowings

9,394

6,824

745

545

Loan from the former shareholder

-

30,800

-

2,455

Financial guarantee liabilities

3,950

3,963

313

316

Obligation under finance lease

88

88

7

7

Total current liabilities

90,331

120,299

7,166

9,591

Non-current liabilities

Obligation under finance lease

52

140

4

11

Total liabilities

90,383

120,439

7,170

9,602

Equity

Share capital

23,980

23,980

1,698

1,698

Share premium

31,054

31,054

2,193

2,193

Special capital reserve

4,188

4,188

299

299

Statutory surplus reserve

93

93

8

8

Retained earnings

69,835

36,527

5,069

2,378

Translation reserve

13,344

13,948

2,033

2,171

142,494

109,790

11,300

8,747

Non-controlling interest

3,384

3,483

268

278

Total equity

145,878

113,273

11,568

9,025

Total liabilities and equity

236,261

233,712

18,738

18,627

Special capital

Special capital

Statutory

Non-

controlling

Share capital

Share premium

Retained earnings

reserve "A"

reserve

"B"

Translation reserve

Surplus reserve

Sub-total

interest

Total equity

￡'000

￡'000

￡'000

￡'000

￡'000

￡'000

￡'000

￡'000

￡'000

￡'000

Balance at 1 April 2013

1,698

2,193

2,349

156

143

2,620

8

9,167

285

8,684

Profit for the year

-

-

2,820

-

-

-

-

2,820

84

184

Exchange difference arising on translation of foreign operations

(949)

(949)

(35)

Total comprehensive income

-

-

2,820

-

-

(949)

-

1,871

49

616

Dividend paid

(242)

(242)

768

Balance at 31 March 2014

1,698

2,193

4,927

156

143

1,671

8

10,796

334

9,452

Profit for the six months ended 30 September 2014

-

233

-

-

-

-

233

(44)

286

Exchange difference arising on translation of foreign operations

-

-

-

-

362

362

5

(464)

Total comprehensive income

233

362

594

(39)

(178)

Dividend declared

(91)

(91)

-

(249)

Dividend distributed to non-controlling interest by a subsidiary

(27)

Balance at 30 September 2014

1,698

2,193

5,069

156

143

2,033

8

11,300

268

9,025

Special capital

Special capital

Statutory

Non-

controlling

Share capital

Share premium

Retained earnings

reserve "A"

reserve

"B"

Translation reserve

Surplus reserve

Sub-total

interest

Total equity

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

Balance at 1 April 2013

23,980

31,054

36,188

2,117

2,071

12,303

93

107,805

3,342

108,033

Profit for the year

-

-

34,800

-

-

-

-

34,800

1,038

2,261

Exchange difference arising on translation of foreign operations

-

-

-

-

-

(166)

-

(166)

(76)

-

Total comprehensive income

-

-

34,800

-

-

(166)

-

(166)

962

1,253

Dividend paid

(2,992)

-

-

(2,992)

-

3,114

Balance at 31 March 2014

23,980

31,054

67,996

2,117

2,071

12,137

93

139,447

4,304

111,147

Profit for the six months ended 30 September 2014

-

-

3,029

-

-

-

-

3,029

(582)

3,427

Exchange difference arising on translation of foreign operations

-

-

-

-

-

1,207

-

1,207

9

1,692

Total comprehensive income

3,029

1,207

4,236

(573)

5,119

Dividend declared

(1,190)

(1,190)

(2,993)

Dividend distributed to non-controlling interest by a subsidiary

(347)

Balance at 30 September 2014

23,980

31,054

69,835

2,117

2,071

13,344

93

142,493

3,384

113,273

Consolidated Statement of Cash Flows (Unaudited)

For the six months ended 30 September 2014

 GBP Rate :14.51