News Release – August 27, 2015

(Hong Kong, 27th August 2015) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEx stock code: 771), a trustworthy and professional information technology (“IT”) partner in the region, announced its interim results for the six months ended 30th June 2015 (the “Review Period”). During the Review Period, total revenue of the Group amounted to HK$769.6 million, representing a 10.9% increase from the corresponding period last year, primarily driven by the increase in product sales.

Profit attributable to the Group’s equity holders was HK$8.1 million (2014 Interim: HK$34.1 million), mainly attributable to the one-off gain on the deemed disposals of the Group’s partial interests in an associate company, i-Sprint Innovations Pte Ltd, at HK$5.3 million for the Review Period, compared to HK$44.7 million of the corresponding period last year¹.

Upon the implementation of various measures relating to human resources integration, effectiveness of operational efficiency and ongoing marketing promotion, the Group has achieved a positive momentum with an increase in revenue and a fall in overall operating costs, resulting in a net profit surge of the Group’s core IT business reaching 89.3% compared to the corresponding period last year. Overall gross profit margin was up 0.4% to 8.5%. Basic earnings per share for the Review Period were 2.60 HK cents (2014 Interim: 10.94 HK cents) while diluted earnings per share for the Review Period were 2.58 HK cents (2014 Interim: 10.94 HK cents).

The Group maintained a healthy financial position during the Review Period. The Group’s net cash stood at approximately HK$155.1 million with a working capital ratio of 1.73:1. Orders newly secured by the Group amounted to approximately HK$727.5 million for the Review Period. As at 30th June 2015, the order book balance was approximately HK$775.3 million and the Group’s outstanding borrowings amounted to HK$30.0 million.

Mr. Simon Leung, Chief Executive Officer of Automated Systems Holdings Limited said, “During the period under review, I am pleased to see the progressive results from our endeavours to refine and implement new strategies especially focusing on five key solutions and services pillars, namely, Infrastructure, Security, Data Intelligence, Mobile and Cloud. In January 2015, the Group blazed a trail in establishing an Automated Center of Excellence (“ACoE”), providing a unique platform for our partners and customers to see, touch and feel the integrated solutions we offer. ACoE has received positive feedbacks from customers and strong support from global IT partners in collaboratively developing integrated IT solutions.”

As compared with the corresponding period last year, product sales increased by 20.6% to HK$454.1 million while service revenue slightly decreased by 0.7% to HK$315.4 million, contributing 59.0% (2014 Interim: 54.2%) and 41.0% (2014 Interim: 45.8%) to total revenue respectively. In the Review Period, commercial and public sector sales contributed 41.7% and 58.3% to total revenue respectively, compared to 40.7 % and 59.3% for the corresponding period last year.

With more than 40 years of experience in systems integration, the Group responded to demand in the mobile market and successfully obtained projects for deploying large-scale Wi-Fi solutions for educational institutions and security enhancement. In addition, the Group was able to ride on the trend of big data and analytics by winning numerous projects across various industries. During the Review Period, the Group entered into high-value and long-term managed services contracts of a strong recurrent nature with organizations in the financial services, entertainment, engineering and maintenance sectors for the provision of help desk & deskside support services, onsite support services and data center operation support.

Against the backdrop of a complicated budget bill’s approval process of the Hong Kong Government in the period under review, the Group is pleased to record a steady growth in the government sector.

According to the International Data Corporation (IDC), it is anticipated that Asia-Pacific (excluding Japan) region will remain a most reliable engine for IT spending growth with multinational companies and Asian enterprises alike continuing to relentlessly look to Asia for future opportunities. In view of this, the Group will continue to invest proactively in enhancing service offerings to better position ASL in capitalising on the significant growth opportunities, such as big data, security and managed services, we see in the marketplace. In the beginning of the second half of 2015, the Group continued its success in garnering a multi-million dollar data analytics contract from an international airline. In July 2015, the Group was awarded a Standing Offer Agreement for Quality Professional Services 3 (SOA-QPS3) relating to Review of Government Information Technology Security Related Regulations, Policies and Guidelines for the Office of the Government Chief Information Officer.

According to Frost & Sullivan, an independent market researcher and consultant, the managed security services market in Asia Pacific (“APAC”) is predicted to record the fastest growth globally, with a compound annual growth rate of 16.2%, and increase to US$3.83 billion in 2018. Most customers in APAC prefer managed security services providers with local security operations centers due to the requirements of data sovereignty and other security compliance regulations imposed by governments.

In anticipation of a strong demand for managed security services, ASL has established an advanced Security Operation Center Plus (“SOC+”) in July 2015. The SOC+ is the eighth key area of the ACoE and is dedicated to provide security services to clients. Supported by more than 100 certified security professionals and more than 800 technical professionals with multi-vendor hands-on experience, SOC+ can provide onsite security incident response services across different platforms, which is unique in the Hong Kong marketplace. The establishment of SOC+ represents an ongoing commitment to improve ASL’s security services and solutions.

Apart from the managed security services market, the Group will continue to closely look for business opportunities in the other markets. Hong Kong Monetary Authority is now working with local banking sector for a brand new electronic payment services of which expecting rollout by the end of 2015. The Group’s competence was demonstrated by providing relevant applications to two prominent financial institutions in Hong Kong. The Group expects a similar demand to continue and is committed to actively capture the market.

Mr. Leung concluded, “Looking forward, we believe our proactive investment approach in core competences will increase the Group’s agility to cater for market demand. Coupled with our strong competence in providing IT solutions and services, the Group remains confident that our current strategies will foster its position as a trustworthy and professional IT partner and strengthen our foundation for long term sustainable growth in the future.”

¹ Details of the deemed disposals in the Review Period and the corresponding period last year were disclosed in the Group’s announcements dated 28th January 2014, 4th February 2014, 12th February 2014 and 31st March 2015.

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News Release – August 12, 2015

(Hong Kong, 12 August 2015) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEx stock code: 771), a trustworthy and professional IT partner in the region, has launched the Security Operation Center Plus (“SOC+”) to offer enhanced managed security services to clients in the region.

According to Frost & Sullivan, an IT research firm, the global Managed Security Service (MSS) market will reach US$12.78 billion by 2018. The Asia Pacific (APAC) market is expected to account for 26.2% of Global Sales in 2015 and record the fastest growth globally, with a CAGR of 16.2%, and reach US$3.83 billion in 2018. Most customers in APAC prefer Managed Security Service Providers that have local security operations centers (SOCs) due to the requirements of data sovereignty and other security compliance regulations released by governments¹.

The SOC+ represents a significant investment by ASL to continue to expand into growth market in security. The top notch SOC+ is well equipped with the next generation of cybersecurity monitoring and protection technologies that are operated by a team of qualified professionals around the clock to ensure protection to customers. Meanwhile, to ensure a highly secure operation and protection of our customer information, the SOC+ itself has featured multi-layer security controls including strong physical and logical authentication and authorization, stringent security policies, high availability infrastructure design and sophisticated business continuity and disaster recovery planning provision, etc.

Mr. Simon Leung, Chief Executive Officer of ASL said, “With the increasing challenges of the cybersecurity threat, ASL has established an advanced Security Operation Center Plus (SOC+) to meet the strong demand for our managed security services. This center is the eighth zone within the Automated Center of Excellence (ACoE) which was opened earlier this year and is dedicated to serve clients. Its establishment represents our continual commitment in improving our security services and solutions. With the opening of SOC+, ASL has created a unique platform for customers to see, touch and feel our solutions offerings.”

Located in Hong Kong headquarters, SOC+ offers comprehensive security monitoring and defense services, including Security Log Monitoring and Alerting, Network and System Monitoring and Maintenance, Breach and Advanced Threat Detection, Managed Distributed Denial of Service (DDoS) Protection Services and Managed Firewall Services.

Currently, SOC+ analyses more than a hundred million of security events each day for clients across various industries, including financial services, telecommunications, property, pharmaceutical industry and Hong Kong government departments, etc.

Supported by over 100 certified security professionals and more than 800 technical professionals with information security, incident handling, risk management and multi-vendor solution hands-on experience, allowing the Group to provide onsite security incident response services across different platforms which is unique in Hong Kong marketplace. In addition, the service delivery of SOC+ meets international standards, ISO 27001:2013 and ISO 9001, giving our customers an assurance of quality services.

“The SOC+ complements our security solution and the other 4 tightly integrated services we offer, including infrastructure, data intelligence, mobile and cloud which we receive robust demand. With our 40 plus years of multi-vendor experience, we are confident to support organizations to build a highly secure IT environment to achieve compliance and IT goals. As one of the leading security services providers in the region, we will continue to provide agile and trustworthy managed security services to safeguard our customers from known and emerging threats.” Mr. Leung concluded.

¹ Source: Frost & Sullivan “Global Managed Security Services Market – Threat Detection and Remediation to Emerge as a Key Market Engine Over the Forecast Period”; MAD3-74 March 2015

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News Release – March 20, 2015

(Hong Kong, 20 March 2015) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEx stock code: 771), a trustworthy and professional IT partner in the region, announced its annual results for the year ended 31 December 2014.

For the year ended 31 December 2014, profit attributable to equity holders of the Group was approximately HK$28.5 million, representing an increase of 64.7% compared to last year. Basic earnings per share for the review year was HK9.15 cents, increased by 64.9% as compared to last year (2013: HK5.55 cents). Such increases were primarily due to the one-off gain of HK$44.7 million on deemed disposal of the Group’s partial interests in a subsidiary, i-Sprint Innovations Pte Ltd (“i-Sprint”) who is a regional leader in Identity, Credential and Access Management (ICAM) solution services, and the Group’s continuous efforts in enhancing the operational efficiency during the year¹. Following the completion of investment from a strategic investor, i-Sprint ceases to be a subsidiary of the Group yet the Group remains i-Sprint’s single largest shareholder. The Board of Directors recommended the payment of a final dividend of HK2.5 cents per share for the year ended 31 December 2014.

During the year under review, there was a combination of factors, including increasingly acute competition of Information Technology (IT) market and de-consolidation of i-Sprint’s financial results from the accounts of the Group since 12 February 2014, following the deemed disposal of the Group’s partial interests in i-Sprint². Thus, revenue and gross profit margin were HK$1,433.9 million (2013: HK$1,613.0 million) and 8.0% (2013: 9.3%) respectively.

The Group maintained a healthy balance sheet during the period under review. As at 31 December 2014, the Group’s net cash stood at approximately HK$130.4 million with a working capital ratio of 1.68:1. For the year ended 31 December 2014, orders newly secured by the Group amounted to approximately HK$1,537.6 million. As at 31 December 2014, the order book balance was approximately HK$783.3 million. The above comparative amounts excluded orders, cash and cash equivalents and short-term borrowings of disposal group classified as held for sale.

Mr. Simon Leung, Chief Executive Officer of Automated Systems Holdings Limited said, “Despite the fact that the business environment remained challenging in 2014, we continued receiving significant IT solutions and services orders from public and commercial sectors, exemplifying a proud past of 40 plus years of strong foundation which cultivates a diverse pool of IT expertise that meets customer’s needs.”

For the year ended 31 December 2014, product sales and service revenue were HK$805.6 million (2013: HK$890.5 million) and HK$628.3 million (2013: HK$722.5 million), contributing 56.2% (2013: 55.2%) and 43.8% (2013: 44.8%) to total revenue respectively.

The Group, during the year, continued to secure numerous sizable government or quasi-government projects. It is worth noting that ASL has been awarded a long-term managed service tender for providing a 5 years personal computer support services to a statutory body who has been a long-standing customer of the Group. The awarded tender is synchronized with the Group’s direction with service provisions in compliance with international standards while expanding services business.

In the aspect of solution business, the Group is pleased with the joint success achieved by working closely with i-Sprint, an associate of the Group, in securing increasingly significant deals from security intensive financial institutions and major customers in Asia. The joint success also expanded to the education sector by garnering security deals with two renowned universities.

Leveraging its strong domain expertise, the Group successfully obtained a number of industry-specific solutions orders with the application of multi-vendor technologies, including the provision of business intelligence solutions and services for one of the world’s leading independent aircraft engineering and maintenance groups, a large-scale revamp of a point-of-sales system for an international clothing company and the implementation of a core IT network for a new building of a non-profit-making private hospital in Hong Kong.

Mr. Leung continued, “To strengthen our market position as a trustworthy and professional IT partner, the Group focused its efforts on refining and implementing new strategies in the second half of 2014. We have defined our IT solutions and services to 5 strategic focus areas of Infrastructure, Security, Data Intelligence, Mobile and Cloud (“5 Focused Solutions and Services”). Infrastructure is positioned as the foundation for the Group’s business, while Security is identified as the intersecting pillar and core focus among them.”

The convergence of cloud computing, social and mobile technologies together with the challenges in managing and safeguarding big data create great potential markets for security business. According to a recent study of International Data Corporation (IDC), the overall Asia/Pacific (excluding Japan) IT security market would increase at a Compound Annual Growth Rate (CAGR) of 11.4% to US$6.2 billion in 2017. Going forward to 2015, the Group will focus on developing its security business which will be one of its strategic growth areas.

Winning together with i-Sprint not only signified the Group’s investment in i-Sprint is successful, but also its expansion strategy is on the right track. In the early 2015, the Group has already been in close discussion with its partners and customers in using application software (Apps) embedded with i-Sprint’s products and received positive feedback. The Group will continue to leverage intellectual property and the proven records of i-Sprint, and its 40 plus years of solid foundation to provide world-class security solutions. In addition, the Group will invest to enhance its security business operation.

To further strengthen the leading position in regional IT and security markets, the Group made a strategic investment by officially launching a leading-edge IT solutions center, Automated Center of Excellence (“ACoE”) at its Hong Kong headquarters on 9 January 2015. Covering approximately 10,000 square feet with 7 main areas, ACoE is designed with multi-vendor interoperability for partners and customers to experience the aforesaid 5 Focused Solutions and Services. It can also be served as a comprehensive business center, offering a professional business environment for meetings, products and solutions demonstrations, proof-of-concept, trainings, workshops and seminars using the latest technologies. The Group believes that the ACoE is a unique platform to provide an impressive and informative experience to partners and customers by offering an opportunity to see, touch and feel the integrated solutions ASL offers.

In addition, ASL foresees that the growth momentum in industries such as retail, healthcare and aviation will continue and the demand for products and solutions from them will remain strong in foreseeable future. Hence, the Group will continue to customise industry-specific solutions for partners and customers by using 5 Focused Solutions and Services.

IT is a service-oriented business and greatly relies on high quality personnel. As such, the Group keeps building an open and dynamic environment that will enhance teamwork and communication as well as to equip and drive its employees to innovate in order to provide the best service to its regional customers.

“Looking ahead, we will continue to work closely with our huge network of world-leading partners, streamline our operation process as well as create greater synergies with our ultimate holding company, Beijing Teamsun Technology Co., Ltd. With the refined strategic focuses, invested facilities and enhanced talent pool, we believe that the stage is ready for us to move up the value chain and to seek new growth opportunities,” Mr. Leung concluded.

¹ Details of the deemed disposal are disclosed in the Group’s announcements dated 28 January 2014, 4 February 2014 and 12 February 2014.

² Details of other income are disclosed in the Group’s announcement dated 19 March 2015

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News Release – January 9, 2015

(Hong Kong, 9 January 2015) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEx stock code: 771), a leading IT services provider in the region, has announced the opening of the Automated Center of Excellence (ACoE), a leading-edge IT solutions center with multi-vendor interoperability in the industry.

Commanding an investment of more than HK$20 million in the coming 3 years and covering approximately 10,000 square feet, ACoE is designed for partners and customers to experience the company’s five focused solutions and services areas covering infrastructure, data intelligence, mobile and cloud computing solutions with security as the intersecting pillar. As ASL is one of the leading IT services and solutions providers in the region, ACoE is supported by various global IT vendors, covering the latest technologies in different IT areas.

ACoE comprises seven main areas: a Solution Theme Park, a Solution Theater, a PowerHouse, a Time Gallery, an Inno-Corridor, a Play House and a ΛDeli. With ACoE, customers and partners can experience and better understand the comprehensive services that ASL can provide along with its extensive industry expertise. It can serve as a comprehensive business center offering a professional business environment for meetings, products & solutions demonstrations, proof-of-concept demonstrations, training, workshops and seminars using the latest technologies.

Based on the solid foundation and renowned reputation of ASL built over the past 40 years and more, ASL has provided IT solutions to more than 3,000 customers in both the commercial and public sectors. To maintain its industry-leading position, 80% of its employees are technical experts and also have substantial industry experience on heterogeneous platform enabling the Group to cater to the needs from customers across a wide range of business sectors and various technologies.

Mr. Simon Leung, Chief Executive Officer of ASL said, “ACoE provides a comprehensive mix and tailor-made solutions that satisfy our diversified customer base, along with helping the Group to capture the rising demand in infrastructure, security, data intelligence, mobile and cloud computing, and by business and industry sectors as well as broadening our customer base. We believe that ACoE is a unique platform to provide an impressive and informative experience to everyone by offering an opportunity to see, feel and touch the solutions we offer. The state-of-the-art technology and flexibility featured at ACoE can also further enhance the Group’s position in the industry.”

The convergence of cloud computing, social and mobile technologies together with the challenges in managing and safeguarding big data presents great market potential in security. IDC anticipates that the overall Asia/Pacific (excluding Japan) IT security market will increase at a CAGR of 11.4% to US$6.2 billion in 2017ⁱ.

“As a leading Asia IT services and solutions provider, we will continue to provide best-of-breed IT solutions together with one-stop professional IT services through collaboration with world-leading partners. As the major shareholder of i-Sprint, a regional leader in Identity, Credential and Access Management (ICAM) Solutions, ASL will leverage the intellectual property and the proven records of i-Sprint and our 40 plus years of solid foundation to provide world-class security solutions. We believe the opening of ACoE will fuel new growth drivers for ASL while further enhancing the Group’s industry-leadership position and creating greater value for our shareholders in the near future,” Mr. Leung concluded.

ⁱ IDC: Asia/Pacific (Excluding Japan) IT Security 2013–2017 Analysis and Forecast Aug 2013, Doc # AP2670327V

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News Release – August 25, 2014

(Hong Kong, 25 August 2014) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEx stock code: 771), a leading IT services provider in the region, announced its interim results for the six months ended 30 June 2014 (the “Review Period”). During the Review Period, the business environment remained challenging, together with conservative customer sentiment and increasingly fierce competition resulted in a record of revenue at HK$694.2 million (same period in 2013: HK$808.4 million).

Gross profit margin for the first six months was 8.1% (same period in 2013: 9.3%). During the Review Period, the profit attributable to the Company’s equity holders was HK$34.1 million (same period in 2013: HK$9.7 million), higher by 252.9% compared to the corresponding period last year. Such increase was mainly attributable to a one-off gain on the deemed disposal of partial interests in a subsidiary, i-Sprint Innovations Pte Ltd (“i-Sprint”) during the Review Period¹ . The aforesaid one-off gain was partially offset by the substantial investments in business development made by i-Sprint which has become the Group’s associate company after the disposal, and the decrease in the gross profit margin of the core information technology (“IT”) business of the Group. Basic earnings per share for the Review Period were HK 10.94 cents, up 252.9% compared with the corresponding period last year.

The Group maintained a healthy balance sheet during the Review Period. The Group’s net cash stood at approximately HK$127.5 million with a working capital ratio of 1.74:1. For the six months ended 30 June 2014, orders newly secured by the Group amounted to approximately HK$807.6 million. As of 30 June 2014, the order book balance was approximately HK$902.6 million, an increase of HK$88.5 million compared with the corresponding period last year. The Group’s outstanding borrowings amounted to HK$22.0 million as at 30 June 2014.

Mr. Simon Leung, Chief Executive Officer of Automated Systems Holdings Limited said, “In the Review Period, the Group continued to win infrastructure, solutions and high-value service contracts from prominent players in different industry sectors, which demonstrated the Group’s leading position remains strong in the markets.”

During the Review Period, the product sales and service revenue were HK$376.5 million and HK$317.7 million (same period in 2013: HK$436.0 million and HK$372.4 million). Product sales and service revenue contributed 54.2% and 45.8% of the total revenue respectively, compared to 53.9% and 46.1% with the corresponding period last year. In the Review Period, commercial and public sector sales contributed 40.7% and 59.3% to revenue respectively, compared to 42.9% and 57.1% for the corresponding period last year.

In the public sector, the Group won a significant tender from a statutory body for the provision of personal computer support and related services. This contract lasts for 63 months and covers approximately 20,000 devices, spanning across the customer’s headquarters and several hundred offices in Hong Kong. Winning this tender demonstrates the Group’s strong experience in long-term and sizable managed services, including helpdesk and hardware maintenance support, one of the Group’s business focuses.

In the commercial sector, the Group responded to the customers’ demand for various IT solutions and high value-added services for cost control and higher operational efficiency. Significant wins included the supply of a document management solution for an entertainment company and the provision of relocation services of IT equipment for a financial institution.

During the Review Period, the Group continued to benefit from regional opportunities arising from growing security concerns. In addition to securing deals with financial institutions in Hong Kong, the Group continued to garner deals through i-Sprint, a regional leader in Identity, Credential and Access Management (ICAM) solution services for global financial institutions and enterprises. Orders included the provision of i-Sprint’s AccessMatrix^TM security solutions to its first second-tier bank in Thailand and also to a Singapore bank with service deployment across its offices located in three countries in Asia Pacific.

To strengthen the Group’s capability to provide an integral security mix, the Company brought in Great Ally Investments Limited (a strategic investor under Peregrine Greater China Capital Appreciation Fund, L.P.) to subscribe new shares of i-Sprint with a consideration at US$9,850,000. Upon completion, the Group has become a major shareholder of i-Sprint. Through complementing each other’s strengths, the Group expects to create greater synergy with i-Sprint.

Since the Hong Kong economy still plays a major role in the future development of the Group, the Group will keep a close eye on the anticipated business opportunities arising from fast-growing industries, such as the aviation industry. Meanwhile, the Group will hone its strategy to accommodate in particular the Hong Kong government’s IT initiatives, for example, the adoption of open source applications by government departments, electronic information management, web accessibility and the government’s human resources management services.

Apart from continuous effort to boost the infrastructure and managed services business, the Group will continue its strategy to develop various kinds of advanced IT solutions, for example, business intelligence and enterprise content management solutions. The Group will seek close collaboration with world-leading partners to develop best-of-breed solutions that are based on the Group’s respective industry-leading solutions in hardware, software and one-stop professional services.

Among IT solutions, the Group will focus on developing security solutions to address the trends of sophisticated threats, expanding regulatory compliance requirements, data protection, mobility and cloud computing. The Group will not only partner with i-Sprint but also work closely with other providers of global security solutions. By doing so, the Group expects to offer more comprehensive solutions and secure a leading position in the IT and security markets in the region. In addition, the Group will invest in facilities, technologies and talent to provide the best service for the regional customers.

Mr. Leung concluded, “As a leading Asia IT services and solution provider, we are committed to become the most trustworthy and professional IT partner for our customers. Our services and solutions enable our customers to achieve the strongest market competitiveness and excellence in service. We will continue to optimise the Group’s human capital efficiency, refine and streamline the operation process, improve services and create greater synergies with Beijing Teamsun Technology Co., Ltd., our parent company, to improve the Group’s core IT business and expand the Group’s market coverage.”

¹ Details of the deemed disposal are disclosed in the Group’s announcements dated 28th January 2014 and 12th February 2014

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News Release – August 1, 2014

Hong Kong, 1 August 2014 — Automated Systems Holdings Limited (‘ASL’ or ‘the Company’) (SEHK stock code: 771), a leading IT services provider in the region, today announced that its associate company, i-Sprint Innovations Pte Ltd (‘i-Sprint’), has established a new Center of Excellence in Zhuhai, expanding its business in mainland China. The new center enables i-Sprint to address the need for IT security solutions from clients in Asia Pacific.

According to Gartner’s¹ forecast on strategic technology trends in 2014, the Internet of Things (IoT) is among the top 10 technology trends in China with expectation to generate over US$300 billion in revenue from related IoT product and service suppliers by 2020. This trend is rapidly becoming a key driver behind the development of “smart cities” in China. While Chinese companies have started to migrate their applications and services online, to mobile and the cloud, information security concerns have also increased, resulting in them seeking effective solutions for a safe information society.

As a regional leader in Identity, Credential and Access Management (ICAM) Solution services for global financial institutions and enterprises, i-Sprint, an associate company of ASL, has been cited in Gartner’s reports for the last eight years and kept ranking up. i-Sprint is seizing market opportunities brought by the wide adoption of “cloud computing” and the “smart cities” program in mainland China to deliver the security services and products companies are demanding. ASL has been providing support to i-Sprint to develop the Zhuhai Center of Excellence (at a cost of multi-millions RMB). Located at the Zhuhai Southern Software Park with a total area of around 2,000 square meters, the Center of Excellence has the capacity to house around 200 engineers. With the Center of Excellence in place, i-Sprint will focus on research and development of Identity Protection, Cloud Protection, Mobile Protection and Data Protection. Furthermore, the Center of Excellence will benefit from the mainland’s upcoming Network Security Law and Network Security Review system initiated by the newly founded Network Security and Information Committee, which underlines the Chinese Government’s support for locally developed security solutions. i-Sprint will ride on such opportunity to provide its leading security solutions and services to customers in the region.

In recent years, the Company and i-Sprint have been actively collaborating to bring enterprise-class security solutions to leading multinational companies in the region, specifically for financial clients that have stringent requirements for their network environments. These clients include Bank of China and Cathy United Bank. Currently, i-Sprint provides security solutions to more than 100 banks, government organizations and large corporations around the world to protect their valuable assets which amount to a total asset value of more than US$ 10 trillion. In Mainland China, i-Sprint serves large enterprises, including Bank of China Insurance, Bank of Lanzhou, China Unicom and Beijing Network TV, reinforcing the Company’s leading position in providing reliable and quality security solutions with for its clients in the region.

Simon Leung, the newly appointed Chief Executive Officer of Automated Systems Holdings Limited said, “Investing in i-Sprint has proven to be an important and successful initiative for ASL in last few years. We are pleased to see i-Sprint’s value has quadrupled since we bought it in 2011. The market has also gradually recognized our investment value. As the largest shareholder of i-Sprint, the Company not only supports the opening of Center of Excellence, but we also seek close collaboration with i-Sprint to develop the best-of-breed solutions based on our respective industry leading solutions in hardware, software, one-stop professional services and security solutions technology. By doing so, the Company and i-Sprint would secure a better position in the information technology market in the region. Meanwhile, the Company will continue to partner with global security solutions providers to provide best services to our customers and gain higher revenue growth.”

“Following the recent expansion of our Beijing and Hong Kong offices, the establishment of the new Center of Excellence marks as a milestone in i-Sprint’s development in China. As a leading provider of Identity, Credential and Access Management Solution provider in the region, we hope the new Center of Excellence can help enterprises to grow their businesses without concerns over information security in the “cloud era”. Through close cooperation with ASL, we can provide best-in-class security and enterprise IT solutions by complementing with each other strength, to help foster our leadership in China and Asia Pacific,” said Albert Ching, Chief Executive Officer of i-Sprint.

On 1st August 2014, following the opening of the Center of Excellence and office in Zhuhai, i-Sprint will host an industry conference named “2014 Authentication Technology and information Security Summit”. During the summit, i-Sprint will showcase its self-developed and patented product – YESsafe mobile App. Also, i-Sprint will announce the collaboration with Zhuhai Southern Software Park, who will use i-Sprint’s intelligent and industry-recognized solutions such as the Gate Control Management and Octopus Services management. Meanwhile, participants can also experience the industry-leading identity authorization App for event registration. The Summit will showcase i-Sprint competitiveness in Asia Pacific and further demonstrate ASL’s successful investments in the company. It is believed through its strong alliance, ASL and i-Sprint will further strengthen its competitiveness in China and safeguard customers from any security threats.

“Looking forward, ASL will continue to explore other business opportunities and enhance the Company’s portfolio in Asia Pacific. It is believed through the leading position of i-Sprint in security market and the synergy between both companies, the Company will further accelerate its expansion in China and Asia Pacific, achieving a higher market share and greater business opportunities,” concluded Mr. Leung.

¹ Gartner press releases: Gartner Identifies China’s Top 10 Strategic Technology Trends in 2014 (http://www.gartner.com/newsroom/id/2764217)

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News Release – July 23, 2014

(Hong Kong, 23 July 2014) – Automated Systems Holdings Limited (‘ASL’ or ‘the Group’) (SEHK stock code: 771), a leading IT services provider in the region, today announced that it has named Mr. Leung Tat Kwong Simon as Chief Executive Officer (‘CEO’) effective July 23, 2014. Currently, Mr. Leung is the Chairman of i-Sprint Innovations Pte Ltd (“i-Sprint”) and serves as a Director of the Board of Teamsun responsible for new business ventures, mergers and acquisitions and capital investment activities. He is also a Director and Co-Founder of AsiaSoft Company Limited (“AsiaSoft”). In his role as CEO, he will focus on strengthening ASL’s current position as a leader in IT services and solutions in Asia Pacific, in addition to his current roles and responsibilities.

Mr. Hu Liankui, Chairman of the Board of Automated Systems Holdings Limited said, “The Board is impressed by Mr. Leung’s extensive background in strategic planning, business growth, M&A, financial and operation management. The acquisition of i-Sprint, which was wholly orchestrated by Mr. Leung, has proven to be a successful capital investment of ASL. The recent transaction completed for shares subscription by strategic investor, Great Ally Investments Limited, a wholly-owned subsidiary of the Peregrine Greater China Capital Appreciation Fund, L.P., was another significant milestone for i-Sprint. We believe that Mr. Leung’s leadership will enable Automated to continue its direction to achieve its mission and vision.”

Mr. Leung joined the Group in 2009 as Executive Director and was subsequently appointed as the Chairman of i-Sprint after its acquisition by ASL since 2011. i-Sprint, an associate company of ASL, is a Singapore-based and premier Identity, Credential and Access Management Solution provider for global financial institutions and high security sensitive environments. The value of i-Sprint has greatly accelerated after the acquisition under Mr. Leung’s leadership and execution of a rapid growth plan.

With over 30 years of experience in the high-tech industry, Mr. Leung has proven track record in holding positions in business development, financial and operation management at multinationals such as Wang Pacific Limited, Unisys China Limited, Philip Morris Asia Inc. and Exxon Chemical Asia Pacific Ltd. Mr. Leung spent 17 years with Sun Microsystems Inc. where he held several senior positions, last being Managing Director (Greater China) and a Corporate Director of Sun Microsystems Inc.

Mr. Leung has also been recently appointed as an adjunct professor of Beijing Institute of Technology, Zhuhai.

Mr. Leung holds a Bachelor of Science Degree in Business Computer Method and a Master’s Degree in Business Administration from the California State University, Long Beach, the United States of America.

“I am honored to have been appointed into this role, and excited about the possibilities that lie ahead for the company. I look forward to working closely with the members of the Board and the professional executive team in leading the company and embarking on our next growth phase across Asia Pacific.” said Simon Leung, newly appointed Chief Executive Officer of Automated Systems Holdings Limited.

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News Release – March 28, 2014

(Hong Kong, 28 March 2014) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEx stock code: 771), a leading IT services provider in the region, announced its annual results for the year ended 31 December 2013. During the period under review, the Group’s revenue amounted to HK$1,613.0 million (2012: HK$1,673.3 million).

Gross profit margin and profit after income tax for the full year of 2013 were 9.3% and HK$17.3 million (2012: 12.1% and HK$41.2 million). Basic earnings per share for the review year were HK5.55 cents (2012: HK13.23 cents). The Group incurred an unexpectedly high delivery costs associated with a sizable business contract during the year under review. In addition, the increasingly prudent customer spending in information technology (IT) and intensified market competition also led to a drop in new orders secured in the first half of 2013. The new orders, however, picked up in the second half of the year. Upon the implementation of various measures relating to resources integration, cost reduction and enhancement of operating efficiency, the Group has achieved an initial positive momentum which resulted in a fall in overall operating costs. The Group believes that there are still rooms to improve the operational efficiency. With the Group’s diversified business development, the Group expects such strategy will help alleviate the possible impact of the above-mentioned contract and the overall operating environment on the business performance.

The Group maintained a healthy balance sheet during the period under review. As at 31 December 2013, the Group’s net cash stood at approximately HK$114.7 million with a working capital ratio of 1.73:1. For the year ended 31 December 2013, orders newly secured by the Group amounted to approximately HK$1,686.9 million. As at 31 December 2013, the order book balance was approximately HK$840.3 million, an increase of HK$10.5 million compared with the corresponding period last year.

Mr. Henry Hui, Chief Executive Officer of Automated Systems Holdings Limited said, “Despite the challenging environment in 2013, the Group continued to provide a wide spectrum of business solutions and IT services for both public and commercial sectors with its solid foundation, accumulated operation and technical experience over the past forty years as well as our unrelenting efforts to seize business opportunities.”

For the year ended 31 December 2013, product sales and service revenue were HK$890.5 million and HK$722.5 million. Product sales and service revenue contributed 55.2% and 44.8% to total revenue respectively, compared to 54.1% and 45.9% with the corresponding period last year. Commercial and public sector sales contributed 47.0% and 53.0% to revenue respectively during the period under review, compared to 46.6% and 53.4% for the corresponding period in 2012.

The Group, during the year, continued to gain trust and support from public sector and stood out at the top IT services provider in terms of the aggregate contract value in providing quality professional services among other industry peers. The Group continued to garner and provide implementation of numerous orders for the government to accommodate different government IT initiatives such as web accessibility, electronic information management and the government human resources management services.

In the commercial sector, the Group grasped opportunities arising from IT infrastructure, solutions and services to meet different market demands. The major orders recorded during the year included provisioning business intelligence solutions to theme parks, revamping storage system for a pan-Asian retail brand, and upgrading enterprise content management for a renowned local bank. The Group also expanded its business in the aviation sector by extending its customer base and securing sizeable contracts.

For the business activities outside Hong Kong, the buoyant gambling industry in Macau stimulated the demand for computing facilities and IT solutions. Of note was a sizeable order received from an integrated gaming resort in Cotai for the provision of core network infrastructure. Across the Taiwan Strait, the Group continued to take advantage of the cross-territories opportunities by supplying IT infrastructure to a Shenzhen subsidiary of one of the world’s largest electronic contract manufacturers in Taiwan.

The Group has always been actively looking for inorganic growth opportunities. In February 2014, the Group successfully completed the subscription by bringing a strategic investor, Great Ally Investments Limited (the “Strategic Investor”) (a subsidiary of Peregrine Greater China Capital Appreciation Fund, L.P.), to subscribe for 118,973,914 new shares of i-Sprint Innovations Pte Ltd (“i-Sprint”) (representing 41.67% of the enlarged issued share capital of i-Sprint) at a consideration of US$9,850,000 (equivalent to approximately HK$76,833,000). Following the subscription, i-Sprint ceased to be a subsidiary of the Group, yet the Group remains as the largest single shareholder of i-Sprint by holding 48.22% of i-Sprint’s issued share capital. This strategic investment allows the Group to record an unaudited one-off investment gain. The Group believes that we will benefit from the subscription in different aspects. For instance, the Strategic Investor possesses abundant experience and professional knowledge in investment and will bring expertise in planning for the initial public offering of i-Sprint’s shares in the near future, thus enabling us to materialise the investment in i-Sprint at the earliest opportunity. In addition, the future collaboration between the Strategic Investor and ASL will bring synergies to the Group.

Apart from looking for inorganic growth opportunities, the Group will continue developing its IT solutions business, value-added services, as well as expanding its regional business. Capitalising on the Group’s multi-vendor expertise and strong track records, the Group will in particular concentrate on the businesses of maintenance, networking, security infrastructure, help desk outsourcing and managed services. Meanwhile, the Group will further hone its business model in response to market trends and actively capture any regional opportunities arising from the prevailing IT trends to facilitate the sustainable development of the Group.

Regarding the cross-territories business, the Group will continue to leverage the presence in China and service delivery capability of its ultimate holding company, Beijing Teamsun Technology Co., Ltd., to enhance the service quality and satisfy the diverse business needs of customers.

Mr. Hui said, “In response to the challenging business environment over the previous year and in the year ahead, we have undertaken a series of measures, including enhancing our operational model, strengthening major account sales strategy while maintaining stringent cost control policies. In addition, the Group will strive for the development of potential business, including business in Macau and the above-mentioned business areas. We believe that those measures are able to accelerate product time-to-market, enhance business agility and flexibility and raise our service quality.”

“We will also endeavour to attract and retain more talents which are vital for the Group as an IT services provider. These appropriate measures are expected to facilitate the Group to be more responsive to the market changes, improve our operating margins and accelerate our business growth in the long run,” Mr. Hui concluded.

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News Release – February 13, 2014

(Hong Kong, 13 February 2014) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEx stock code: 771), a leading IT services provider in the region, has announced that its subsidiary i-Sprint Innovations Pte Limited (“i-Sprint”) has reached a subscription agreement and completed the transaction on 12 February 2014 with Great Ally Investments Limited (“Great Ally” or “Investor”), a wholly-owned subsidiary of Peregrine Greater China Capital Appreciation Fund, L.P. managed by Bull Capital Partners Ltd. According to the agreement, i-Sprint has agreed to issue and allot 118,973,914 new shares to Great Ally, representing 41.67% of the enlarged issued share capital of i-Sprint, following the completion for a consideration of US$9,850,000 (equivalent to approximately HK$76,833,073). Upon completion, the Group records an unaudited one-off investment gain of approximately S$6,550,000 (equivalent to approximately HK$40,000,000) ^*. Its shareholding in i-Sprint is 48.22% while i-Sprint ceases to be a subsidiary of the Group yet the Group remains i-Sprint’s single largest shareholder.

The proceeds raised from the subscription will be used for funding the working capital of i-Sprint, expanding i-Sprint’s customer base and development of new projects, funding new projects relating to mobile network security sector and potential acquisitions of technologies and complementary business or target entities. There will be future cooperation between ASL and the investor which will bring synergies to the Group.

In addition to raising additional capital for future business development and thereby enhancing the value of i-Sprint, the introduction of a strategic investor will strengthen i-Sprint’s shareholder base while enhancing its reputation. i-Sprint can also benefit from the investor’s innovative market insights, abundant experience in different industries and solid network when considering and expanding into new business opportunities. The Group believes that Great Ally will bring expertise in the planning for the initial public offering of i-Sprint in the future, which will enable the Group to materialize its investment in i-Sprint at the earliest opportunity.

* Based on the net assets value of the i-Sprint Group as at 31st March 2013. The actual gain to be recorded by the Company will be assessed after the Completion and is subject to audit.

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News Release – August 26, 2013

(Hong Kong, 26 August 2013) – Automated Systems Holdings Limited (“ASL” or “the Group”) (HKEx stock code: 771), a leading IT services provider in the region, announced its interim results for the six months ended 30 June 2013 (the “Review Period”).

During the Review Period, the revenue of the Group was HK$808.4 million (same period in 2012: HK$891.0 million). Gross profit margin and profit after income tax for the Review Period were 9.3% and HK$9.7 million (same period in 2012: 12.2% and HK$21.9 million). The decrease in profit after income tax was mainly due to increasingly prudent IT spending, rising operating costs and keener market competition which resulted in the reduction of gross profit. Basic earnings per share for the Review Period were HK 3.10 cents (same period in 2012: HK 7.05 cents).

The Group maintained a healthy balance sheet during the Review Period. As at 30 June 2013, the Group’s outstanding loans amounted to HK$21.3 million and net cash stood at approximately HK$85.6 million with a working capital ratio of 1.71:1. For the six months ended 30 June 2013, orders newly secured by the Group amounted to approximately HK$839.0 million. As of 30 June 2013, the order book balance was approximately HK$814.1 million.

Mr. Henry Hui, Chief Executive Officer of Automated Systems Holdings Limited said, “Although the Group’s performance for the first half of 2013 was affected by a multitude of factors, the Group continued to win various sizable orders, including infrastructure, solution and services projects from both the public and private sectors. The orders demonstrated that the Group’s leading position in the market remains strong. Moreover, benefitting from the rising regional IT demands related to cloud computing, data center and security, the Group kept on yielding encouraging results.”

For the Review Period, the product sales and service revenue were HK$436.0 million and HK$372.4 million, down 16.8% and up 1.4% respectively as compared with the corresponding period last year. Product sales and service revenue contributed 53.9% and 46.1% of the total revenue respectively, compared to 58.8% and 41.2% with the corresponding period last year. Private and public sector sales contributed 42.9% and 57.1% to revenue respectively, compared with 46.4% and 53.6% for the corresponding period last year.

In the public sector, the Group continued to secure numerous sizeable government or quasi- government projects, particularly on the development of Service-Oriented Architecture application, consultancy service on identity management, web accessibility as well as IT security risk assessment and security audit, for provision of quality public services and efficiency enhancement. It is worth noting that the Group stood out as the IT services provider who obtained the highest total contract value among numerous industry peers to provide quality professional services. This achievement signifies the Group’s competence in providing all-round professional services and superb technical expertise in implementing large government projects, as well as the continual trust and confidence from Hong Kong government.

In the private sector, the Group focused on managed services business, niche solutions and infrastructure businesses. With extensive domain knowledge, proven methodologies and track records, the Group reaped satisfactory results in managed services. During the Review Period, the Group won two significant managed services orders for the provision of network security upgrade for a Hong Kong’s telecommunications operator and the revamp of core network for a wholly-owned subsidiary of a leading banking group in Hong Kong respectively. In addition, the Group successfully extended its deskside managed services into banking industry by providing such services to one of the oldest banks in mainland China in support of its 50 branches and offices in Hong Kong.

The Group continued to capitalise on regional opportunities. In March 2013, the Group’s subsidiary in Thailand won a multi-million dollar project for the provision of infrastructure solutions to around 250 branches in 25 provinces of a renowned bank in Thailand on a multi-year basis. Benefitting from the rising regional IT demands related to cloud computing, data center and security, the Group continued to harvest satisfactory results. Such orders included the setup of private cloud infrastructure for a securities firm of a Japanese-based global financial institution in Hong Kong; completion of a container-based data center in Tianjin for one of the world’s largest electronics contract manufacturers; as well as the provision of security solution of our wholly owned subsidiary, i-Sprint Innovation Pte Ltd, to a securities company in Thailand which is under an Asia’s famous securities and investment broker.

During the Review Period, the Group and its parent company Beijing Teamsun Technology Co., Ltd. (“Teamsun”) continued to create greater synergy. The Group secured a significant Hong Kong-mainland China project from a mainland security solutions supplier. The Group is responsible for providing IT infrastructure facilities for a renowned transportation operator in Hong Kong for its launch of a massive transportation system which will connect Hong Kong and mainland China with system completion in 2015. This project not only demonstrates satisfactory progress of the Group’s cross-territories businesses, but also amplifies its strong domain knowledge in transportation industry.

Looking ahead, one of the Group’s strategies will be its concentrated and continual efforts to grow the solutions and services businesses, develop self-owned Intellectual Property (IP)-based products, as well as provide customers with high value-added services.

The Group will focus on private cloud computing, security operation center (SOC), managed services and data center in view of their rising demand across the region. With regard to private cloud computing, ASL will further expand this business by investing more resources. For example, using IP developed from existing projects and replicating it for other customers, forging strategic partnership with product suppliers to integrate self-owned and Teamsun’s products with market-ready products to offer common services.

Regarding managed services, the Group will vamp it up further so as to enhance its value chain for higher returns. By offering high value-added data center services such as business continuity service, maintenance support, system and network monitoring services as well as security managed service; the Group can use IT to help customers advance their business development. In addition, the Group will closely monitor regional opportunities in data center business and increase investment when timing is appropriate.

Leveraging the Group’s experience and network of subsidiaries in the Asia Pacific region, together with Hong Kong as a center of excellence, the Group will continue its stated strategy to further strengthen the businesses in areas outside Hong Kong, such as mainland China, Macau, Taiwan, Thailand, Singapore and Malaysia. In July 2013, ASL won a project from the largest independent local bank in Hong Kong to provide infrastructure for its disaster recovery sites in Shanghai and Shenzhen.

Apart from focusing on traditional systems integration business, the Group will continue to actively explore business opportunities regarding niche solutions, and is currently formulating new business model to further tap into more regional opportunities. In Macau, the Group will closely monitor opportunities brought by the flourishing gaming and hospitality industry as more hotels and gaming tables are expected to be built in future. In view of the Group’s significant market share of Baccarat Score Board system in Macau and track record of such system in other countries including USA, Vietnam, Australia and Singapore, together with the Group’s 80% market share of playing card management system in Macau, ASL is confident that more and more casinos and hotels will opt for its gaming solutions as well as other IT services.

The implementation of aforementioned strategies is complemented by quality services. Automated Systems (HK) Limited, the wholly owned subsidiary of the Group, has already earned certifications, including ISO 9001, ISO 20000 and ISO 27001, with extensive coverage of service delivery, software development and internal processes.  In March 2013, the sales operation division of this subsidiary earned ISO 9001 certification in the aspect of internal process management, which signifies our services are upgraded to a more comprehensive international standard. With its quality services, the Group was awarded the Hong Kong ICT Awards for its work on a project for Maxim’s Caterers Limited in early 2013. We trust that such international certifications can enable the Group to provide more innovative and award-winning projects to satisfy the diverse needs of our customers.

Mr. Hui concluded, “We are re-aligning our business strategy to respond to market challenges by harnessing our solid foundations and core strengths built over 40 years. The Group will continue to optimise its human capital efficiency, reduce cost, improve services, as well as create greater synergies with Teamsun in a order to expand the Group’s market coverage. We believe that we are responding rapidly to market changes and is implementing appropriate transformation so as to strengthen the Group’s core competencies for long-term growth and enhance our competitive edge in the market.”

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