UniVision Engineering Limited ( UniVision or the Company or the "Group ) Interim Results For the Six Months Ended 30 September 2018

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1 7 December 2018 The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain. ( UniVision or the Company or the "Group ) Interim Results For the Six Months Ended 30 September 2018 UniVision (AIM: UVEL), 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 Highlights: Profit attributable to the equity holders increased 391% to HK$10.6m (H1 2017: HK$2.1m); Revenue increased by 187% to HK$66.8m for continuing operations (H1 2017: HK$23.2m); Positive cash generated from operations HK$6m (H1 2017: -HK$6.4m). For further information visit or contact: Tel: Stephen Koo, Chairman Chun Pan Wong, Chief Executive Officer Danny Kwok Fai Yip, Finance Director Nicholas Lyth, Non-Executive Director Ivor Shrago, Non-Executive Director Tel: +44 (0) Tel: +44 (0) SPARK Advisory Partners Limited (Nominated Adviser) Mark Brady / Neil Baldwin Tel: +44 (0) SI Capital Limited (Broker) Nick Emerson Tel: +44 (0)

2 CHAIRMAN S STATEMENT INTRODUCTION The Company has achieved a substantial growth both revenue and profit in the current reporting period. It had been predicted by the Board and had been highlighted in the year end trading update in Apr 2018, final results announcement and trading update in September THE MAJOR CONTRACT WITH MTRC This transformational contract was awarded to UniVision in May Over the six and half year life of the contract, the total value is 38.9m based on the master contract and currently announced add on contracts. The master contract provides for the replacement works of the Closed-Circuit Television (CCTV) systems for numerous railway lines of MTRC in Hong Kong. Under the contract, the Company will replace the existing analogue CCTV system installed in the stations along the specified lines with a unified IP-based CCTV system. The contract has entered to the installation stage in the current financial period. This has led to sharply growth in revenue in the financial period. The Company expects regular billing on works completed and certified on a monthly basis throughout the remaining period of contract. The Company is the main contractor for the Project. The Company is required to provide a performance bond equivalent to 3% of the contract sum, i.e. HK$11.7m. The Company has a HK$30m surety bond facility guaranteed by a leading insurance company. The unutilised facility is HK$18.3m which can be utilised for other potential projects. The facility has been renewed in early November 2018 under the same terms as that of HSBC, the Group s major banker, has increased the trade facility to $13m of which including an overdraft limit of HK$4m after the annual review in late July The invoice discounting/factoring facility remains unchanged at HK$45m. These facilities provide additional working capital for the Company s operations and also ensure that the Major Contract can operate smoothly. FINANCIAL REVIEW The profit attributable to the equity holders of the Company is 1m (2017: 213K). The improvement in results performance in the period is mainly attributable to:- i) 264% growth in the income from construction contracts; ii) Improved gross profit margin of 6% from maintenance contracts. In the six month period under review, revenues for the Group increased by 187% to HK$66.8m (H1 2017: HK$23.2m). The sharply growth of construction revenue was mainly due to significant income HK$43m (H1 2017: $2.5m) was generated from the MTRC Replacement of CCTV Systems (the Project). Revenues for the Group s maintenance business increased by 18% to HK$7.25m (H1 2017: HK$6.1m). The three years maintenance contract with MTRC has been renewed for another three years commencing from 1 January, 2018 to 31 December The Group provides maintenance services to MTRC s network of CCTV systems and public address systems on seven railway lines in Hong Kong. With one more railway line, the scope is larger than the prior one. The contract revenue for this contract increased 18% to HK$3.9m which represented over 50% in the segment for the period. Gross profit margin in the maintenance business improved from 41% to 47%. It was improved mainly due to the initial purchase cost for installation of equipment during the first

3 three years' contract period. The gross margin of the Group's construction business was reduced by 5% to 24% (2017: 29%) for the period. Administration expenses for the period were increased by HK$1.5m to HK$6.2m (H1 2017: HK$4.7m). This was caused by the increased personnel expenses (salaries, directors emoluments, bonus, provident fund contribution and recruitment fee), rental expenses, repairs and maintenance expenses and electricity charges. To manage the execution of the Major Contract, the Company has recruited more professional and technical staff. The number of staff has increased to 65 as at 30 September 2018 (H1 2017: 54). Also, one more unit at the same building was rented for office use from January The Company now has two units for offices, one warehouse, one demo room and one workshop. Finance costs was increased to HK226K (2017: HK$0) since the Company commenced to use the HBSC banking facility from 1 st quarter of year The interest was charged at the bank s Hong Kong Dollars Best Lending Rate. The profit attributable to the equity holders of the Company is HK$10.6m (2017: 2.1m). Profit before interest and income tax from operations during the period at HK$10.8m (H1 2017: HK$2.1m). During the period under review, the relative weak of the HK$ against GBP has led to 3.7% depreciation in the GBP reporting amount in the Consolidated Statement of Comprehensive Income. Also, a relative strengthening of HK$ at the period-end has led to a 7.6% appreciation in the GBP reporting amount in the Consolidated Statement of Financial Position. It also the reason for the significant gain of 509K on exchange differences arising on the translation (H1 2017: loss 446K). All figures in GBP in the Financial Statements therefore needed to be adjusted for comparative purposes. The financial data is also presented in HK$ to provide a comparison with the comparative figures in 2017 that were unaffected by exchange rate fluctuations. BUSINESS REVIEW Markets The increasing demand for wireless network infrastructure is the key growth driver for this market. The demand to replace analogue systems with Internet protocol based systems is also expected to boost the market. The Board believes that winning the Major Contract from MTRC should allow UniVision to market its brand to purchasers of similar systems outside Hong Kong. The Company intends to explore other market segments, such as rolling stock business on railways, to strengthen business growth in the Group. Business Under the Major Contract, the Company performs as network service provider in the application of CCTV systems. The Board considers the viability for the Company entering the new business as a provider of network service and information technology in the application in other fields. The Company keeps moving forward in CCTV segment and gradually to safe city concept by introducing video based analytics to big data AI processing. At the same time, the Company still keeps an eye on overseas projects of similar size. Customers MTR Corporation is the Company s largest customer in this financial period, particularly after awarded of the Major Contract.

4 To avoid the concentration of customers, the Company has diversified the base of customers particularly to the private and domestic sectors. As a result of the significant amount in the Major Contract, the Company has been temporarily suspended from tendering for additional government contracts by the Hong Kong Government Works Branch under the management of Electrical and Mechanical Services Department ( EMSD ) for six months from 27 July 2018 until the shortfall has rectified. The effect of this temporarily suspension is insignificant to the Group s business given the capacity of current workload. Nevertheless, the Group has submitted the updated financial documents for lifting the suspension. Acquisitions and Investments The Group continues to assess possible opportunities of new investments with a view to making a further strategic move. PROSPECTS The high demand for its network and high definition security and surveillance system provides the Group with an excellent opportunity for future growth in these markets. Our existing business, coupled with the Major Contract, provides a solid base which the Group can develop over the next few years. With referring to the resources and capacity, the Company continues to tender for new contracts within its optimum value. Finally, on behalf of the Board, I would like to thank our customers, suppliers, sub-contractors, bankers and shareholders for their continued support of UniVision. I would also like to express my gratitude to the management team and all staff for their continued support, contribution and dedication to the Group. MR. STEPHEN SIN MO KOO EXECUTIVE CHAIRMAN 7 December 2018

5 Statements of Comprehensive Income (Unaudited) For the six months ended 30 September 2018 For the six months ended 30 September HK$'000 HK$'000 '000 '000 Revenue 66,798 23,224 6,373 2,298 Cost of sales (49,081) (15,914) (4,683) (1,575) Gross profit 17,717 7,310 1, Other income Other loss (56) 0 (5) 0 Selling and distribution expenses (651) (659) (62) (65) Administrative expenses (6,196) (4,700) (591) (465) Finance costs (226) 0 (22) 0 Profit before income tax 10,609 2,157 1, Income tax Profit for the period 10,609 2,157 1, Other comprehensive income/(loss): Exchange differences arising on translation of foreign operations (446) Total comprehensive income/(loss) for the period 10,609 2,157 1,521 (233) Profit attributable to: Equity shareholders of the Company 10,609 2,157 1, ,609 2,157 1, Total comprehensive income / (loss) attributable Equity shareholders of the Company 10,609 2,157 1,521 (233) 10,609 2,157 1,521 (233) Earnings per share - Basic and Diluted HK Cents HK Cents Pence Pence Basic Diluted N/A N/A N/A N/A

6 Statements of Financial Position (Unaudited) As at 30 September 2018 For the six months ended 30 September ASSETS Non-current assets HK$'000 HK$'000 '000 '000 Plant and equipment 1, Amount due from related companies 33,983 35,037 3,330 3,350 Total non-current assets 35,479 35,733 3,476 3,416 Current assets Inventories 8,382 10, ,021 Trade receivables 12,538 7,264 1, Amount due from customers for contracts-in-progress 26,600 17,925 2,607 1,714 Deposits, prepayments and other receivables 21,759 16,217 2,132 1,550 Cash and bank balances 10,953 4,744 1, Total current assets 80,232 56,830 7,862 5,433 Total assets 115,711 92,563 11,338 8,849 LIABILITIES AND EQUITY Current liabilities Trade and other payables 27,277 14,058 2,672 1,344 Amounts due to customers for contracts-in-progress 13,281 17,788 1,301 1,700 Total current liabilities 40,558 31,846 3,973 3,044 Non-current liability Amount due to a related company 1,200 1, Total liabilities 41,758 33,046 4,091 3,159 Equity Share capital 55,034 55,034 3,891 3,891 Special capital reserve 4,188 4, Retained earnings 14, , Translation reserve 0 0 1,560 1,384 Total equity 73,953 59,517 7,247 5,690 Total liabilities and equity 115,711 92,563 11,338 8,849

7 Statements of Changes in Equity (Unaudited) in '000 Share Retained Special capital Special capital Translation Total capital earnings Reserve "A" Reserve "B" reserve equity '000 '000 '000 '000 '000 '000 Balance at 1 Apr , ,830 6,078 Profit for the year Other comprehensive income Exchange difference arising on translation of foreign operations (779) (779) Total comprehensive income (779) (44) Dividend paid 0 (151) (151) Balance at 31 Mar , ,051 5,883 Profit for the six months ended 30 Sep , ,012 Other comprehensive income Exchange difference arising on translation of foreign operations Total comprehensive income 0 1, ,521 Dividend declared 0 (157) (157) Balance at 30 Sep ,891 1, ,560 7,247

8 Statements of Changes in Equity (Un-audited) in HK$'000 Share capital Retained earnings Special capital Reserve "A" Special capital Reserve "B" Total equity HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Balance at 1 April ,034 (289) 2,117 2,071 58,933 Profit for the year 0 7, ,634 Total comprehensive income 0 7, ,634 Dividend paid 0 (1,573) 0 0 (1,573) Balance at 31 Mar ,034 5,772 2,117 2,071 64,994 Profit for the six months ended 30 Sep , ,609 Total comprehensive income 0 10, ,609 Dividend declared 0 (1,650) 0 0 (1,650) Balance at 30 Sep ,034 14,731 2,117 2,071 73,953

9 Statements of Cash Flows (Un-audited) For the six months ended 30 September 2018 For the six months ended 30 September HK$'000 HK$'000 '000 '000 CASH FLOW FROM OPERATING ACTIVITIES Profit before income tax for the period 10,609 2,157 1, Adjustments for: Depreciation of plant and equipment Interest income (19) (18) (2) (2) Finance costs paid Gain on disposal of plant and equipment 0 (15) 0 (1) 11,064 2,269 1, Changes in operating assets and liabilities: Decrease / (Increase) inventories 2,342 (15) 223 (1) Increase in trade receivables (6,336) (2,171) (604) (215) Increase in amounts due from customers for contracts-in-progress (893) (3,529) (85) (349) Increase in deposits, prepayments and other receivables (1,361) (2,593) (130) (257) (Decrease) /Increase in amounts due to customers for contracts-in-progress (2,508) 514 (239) 51 Increase / (Decrease) in trade and other payables 3,738 (929) 357 (92) Cash generated from / (used in) operations 6,046 (6,454) 577 (639) Income tax paid Net cash generated from / (used in) operating activities 6,046 (6,454) 577 (639) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of plant and equipment (1,149) (355) (110) (35) Interest received Decrease in pledged deposits Proceeds from disposal of plant and equipment Net cash used in investing activities (660) (322) (63) (31) CASH FLOWS FROM FINANCING ACTIVITIES Finance costs paid (226) 0 (22) 0 Net cash used in financing activities (226) 0 (22) 0

10 For the six months ended 30 September HK$'000 HK$'000 '000 '000 NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 5,160 (6,776) 492 (670) EFFECT OF CHANGE IN EXCHANGES RATES (64) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,793 11, ,188 CASH AND CASH EQUIVALENTS AT END OF PERIOD 10,953 4,744 1,

11 Notes to the Interim financial statements for the six months ended 30 September Basis of preparation The unaudited interim financial statements for the six months ended 30 September 2018 have been prepared in accordance with International Financial Reporting Standards ( IFRSs ) using the policies consistent with those applied to the annual financial statements for the year ended 31 March The interim financial statements, together with the comparative information contained in this report for the six months ended 30 September 2017, does not constitute the statutory accounts of the Company. 2. Profit per share The calculation of basic profit per ordinary share is based on the profit attributable to equity holders of the Group for the six months ended 30 September 2018 of HK$10.6m (H1 2017: HK$2.1m), and the weighted average of 383,677,323 (H1 2017: 383,677,323) ordinary shares in issue during the period. There were no potential dilutive instruments at either financial period end. 3. Interim report Copies of the interim report will be available for inspection at the registered office of the Company, Unit 01A, 2/F., Sunbeam Centre, 27 Shing Yip Street, Kwun Tong, Hong Kong and available on the Company's website ( in accordance with Rule 26 of the AIM Rules for Companies.