(UVEL.L) Univision Engineering Ltd Buy/Sell

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

Univision Engineering Limited +852 2389 3256

Stephen Koo, Chairman Chun Hung Wong,CEO
Allenby Capital Limited +44 (0) 203 328 5656

Imran Ahmad/Nick Athanas

This information is provided by RNS The company news service from the London Stock Exchange

MSCTJMITMBJMBTM

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

"Our performance has been affected as a result of the global economic downturn which has hindered progress in our larger projects. We are unable to access funds easily for our projects and thus still remain cautious on further expansion and getting involved in potential projects

The Group remains confident it will maintain a competitive advantage in the second half of the year in its core CCTV and surveillance business which still experiences strong demand, and achieve growth through the Electrical and Mechanical ("E&M") business."

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

UniVision Engineering Limited +852 2389 3256

Stephen Sin Mo KOO, Executive Chairman Chun Hung WONG, Chief Executive Officer Danny Kwok Fai YIP, Finance Director

Allenby Capital Limited +44 (0) 203 328 5656

Imran Ahmad/Nick Athanas

Chairman's Statement

I am pleased to report on the results of the Group for the six months ended 30 September 2009.

Financial Review

During the period revenue decreased by 31% to HK$44m (H1 2008: HK$64m).

The business has been affected by the continuing adverse economic condition of the global economy and from market fluctuations. Operating profit during the period decreased by 39% to HK$6.8m (H1 2008: HK$11.2m), whilst profit attributable to the equity holders of the parent decreased by 26% to HK$2.8m (H1 2008: HK$3.8m) mainly due to the decrease in turnover generated for the six month period.

Basic and fully diluted earnings per share decreased to HK$0.007 (H1 2008: HK$0.010).

The Group is currently involved in a small number of significant projects which require high levels of capital expenditure, which was the main reason for the re- financing of the Zhongshan Project, as announced on 10 December 2009. We remain confident that these projects will come to fruition in the second half of this year. Though the finance costs for the period have caused some burden to the profit during the period, we are cautiously optimistic of a good trading performance for the year as a whole.

During the period under review, the relative strengthening in the HK$ against sterling has led to an 18.8% appreciation in the GBP reporting amount in the consolidated income statement and an 11.5% appreciation in the consolidated balance sheet. All figures in GBP in the financial statements need to be adjusted for comparative purposes. The financial data is also presented in HK$ to show a fair comparison with the comparative figures in 2008 that were unaffected by exchange rate fluctuations.

Business Review

Markets

The Board of UniVision are of the view that IP Video still plays the role of the transitional technology from analogue to digital in the CCTV industry. An increasing number of users are leveraging IP video to improve business and operational efficiency and effectiveness. For example, IMS Research predicted in 2008 that over the next three years, the market for megapixel cameras will grow at a compound growth rate in excess of 100%. IMS Research also stated recently that the growth rate for global IP video surveillance equipment is likely to exceed 15% per annum while in contrast the global market for analogue video surveillance equipment is expected to fall in the coming years. The Group is working with different solutions, including video compression technology, digital encoder and decoders with a built-in video analysis algorithm, as well as video management platforms.

The Board is confident that the network video market will have strong growth potential in the coming years and considers that the Company is well placed to reap the benefits of this growth.

The property linked E&M business in the People's Republic of China ("PRC") is still our primary target for growth. We have a successful shopping mall project in Zhongshan which we expect to be completed and ready for sales in approximately four months. However, the timetable for completion will heavily depend on the funding available for the project. As announced on 10 December 2009 a sale and re-purchase agreement has been entered into by the property developer and re-purchaser to provide short-term financing to assist in the completion of the Zhongshan project.

Technologies, Solutions and Products

The Board believes that the Group will be among the pioneers in providing the most effective solutions for businesses involved in airport, rail and traffic surveillance industry as technological advances will bring the development of more sophisticated, intelligent and integrated systems.

The embedded DVR, which is sold under the UniVision brand, has been used in several projects in Hong Kong. The newly developed Video Amplifier with an on-screen display function has also been used in one of our projects. We are working on video analysis algorithms as well as video management platform which we expect to launch in the coming financial year.

Acquisitions and Investments

The Group currently has no acquisitions or investments in the pipeline. However, we are always assessing possible opportunities with a view to making further strategic investments in the markets which we operate in.

Prospects

While we are focusing on various maintenance projects and the market for our hybrid IP system, we will also be assessing and developing new technologies and solutions to cope with future opportunities.

The E&M business in the PRC is still one of our growth target markets. We have a shopping mall project in Zhongshan, the PRC, which is in the final stage of completion. Also, another resort project in Huangshan in the PRC has been started.

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

23 December 2009

Consolidated Income Statement (Unaudited) For the six months ended 30 September 2009
For the six months ended 30 September

HK$000 HK$000 *'000 *'000
Revenue 44,408 64,473 3,628 4,276
Cost of sales (26,589) (41,205) (2,172) (2,733)
Gross profit 17,819 23,268 1,456 1,543
Other income 145 1,459 12 97
Selling and distribution (577) (564) (47) (37)

expenses
Administrative expenses (10,585) (12,947) (865) (859)
Profit from operations 6,802 11,216 556 744
Finance costs (3,852) (5,850) (315) (388)
Profit before income tax 2,950 5,366 241 356
Income tax expense (484) (1,491) (39) (99)
Profit for the period 2,466 3,875 202 257

Profit attributable to:
Equity holders of the parent 2,807 3,802 230 252
Minority interest (341) 73 (28) 5
2,466 3,875 202 257

Earnings per ordinary share HK$ HK$ Pence Pence
Basic 0.007 0.010 0.060 0.066
Diluted N/A N/A N/A N/A

Consolidated Balance Sheet (Unaudited) As at 30 September 2009

As at 30 September

HK$000 HK$000 *'000 *'000

Non-current assets
Plant and equipment 3,141 5,167 254 369
Goodwill 10,125 14,284 693 1,021
Total non-current assets 13,266 19,451 947 1,390

Current assets
Inventories 10,857 17,620 877 1,259

Amounts due from construction contract customers

152,959 143,106 12,355 10,224
Trade receivables 24,614 24,275 1,988 1,734

Deposits, prepayments and other receivables
32,552 30,469 2,630 2,177
Tax recoverable 273 257 22 18
Cash and cash equivalents 5,601 6,274 452 448
Total current assets 226,856 222,001 18,324 15,860
Total assets 240,122 241,452 19,271 17,250

Consolidated Balance Sheet (Unaudited) (Continued) As at 30 September 2009

As at 30 September

HK$000 HK$000 *'000 *'000

Current liabilities Amounts due to construction contract
customers 11,095 15,417 896 1,101
Bank loans 11,764 32,097 951 2,293
Loan from a related company 46,800 39,000 3,780 2,786
Trade and other payables 49,038 28,800 3,960 2,057
Tax payable 13,976 9,327 1,129 667
Obligation under finance lease 47 47 4 4
Total current liabilities 132,720 124,688 10,720 8,908

Non-current liabilities
Obligation under finance lease 83 130 7 9
Total liabilities 132,803 124,818 10,727 8,917

Capital and reserves
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
Retained earnings 43,562 52,013 2,845 3,422
Exchange reserve 2,223 3,062 1,322 554
105,007 114,297 8,357 8,166
Minority interest 2,312 2,337 187 167
Total shareholders' equity 107,319 116,634 8,544 8,333
Total liabilities and equity 240,122 241,452 19,271 17,250

Consolidated Statement of Changes in Equity (Unaudited) For the six months ended 30 September 2009
Special capital Special capital
Share Share Retained reserve reserve Exchange Sub-total Minority Total equity
capital premium earnings "A" "B" reserve interest
*'000 *'000 *'000 *'000 *'000 *'000 *'000 *'000 *'000

Balance at 1 April 2008 1,698 2,193 3,170 156 143 (223) 7,137 154 7,291

Net profit for the six months - - 252 - - - 252 5 257

ended 30 September 2008
Effect of translation - - - - - 777 777 8 785

Balance at 30 September 2008 1,698 2,193 3,422 156 143 554 8,166 167 8,333

Net loss for the six months - - (807) - - - (807) 24 (783)

ended 31 March 2009
Effect of translation - - - - - 1,619 1,619 41 1,660

Balance at 31 March 2009 1,698 2,193 2,615 156 143 2,173 8,978 232 9,210

Net profit for the six months - - 230 - - - 230 (28) 202

ended 30 September 2009
Effect of translation - - - - - (851) (851) (17) (868)

Balance at 30 September 2009 1,698 2,193 2,845 156 143 1,322 8,357 187 8,544

Consolidated Statement of Changes in Equity (Unaudited) For the six months ended 30 September 2009
Special capital Special capital
Share Share Retained reserve reserve Exchange Sub-total Minority Total equity
capital premium earnings "A" "B" reserve interest
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000

Balance at 1 April 2008 23,980 31,054 48,211 2,117 2,071 2,634 110,067 2,401 112,468

Net profit for the six months - - 3,802 - - - 3,802 73 3,875

ended 30 September 2008
Effect of translation - - - - - 428 428 (137) 291

Balance at 30 September 2008 23,980 31,054 52,013 2,117 2,071 3,062 114,297 2,337 116,634

Net loss for the six months - - (11,258) - - - (11,258) 327 (10,931)

ended 31 March 2009
Effect of translation - - - - - (1,446) (1,446) (99) (1,545)

Balance at 31 March 2009 23,980 31,054 40,755 2,117 2,071 1,616 101,593 2,565 104,158

Net profit for the six months - - 2,807 - - - 2,807 (341) 2,466

ended 30 September 2009
Effect of translation - - - - - 607 607 88 695

Balance at 30 September 2009 23,980 31,054 43,562 2,117 2,071 2,223 105,007 2,312 107,319

Consolidated Cash Flow Statement (Unaudited)
For the six months ended 30 September

CASH FLOW FROM OPERATING HK$000 HK$000 £'000 £'000

Profit before income tax 2,950 5,366 241 356

Adjustments for:
Depreciation 390 644 32 43
Loss on disposal of plant and - 7 - 1

equipment
Interest income (2) (61) (1) (4)
Interest expenses 3,852* 5,808 316 385
Operating cash generated before working capital changes 7,190 11,764 588 781
Decrease/(increase) in 736 (2,520) 59 (180)

inventories
(Increase)/decrease in trade (4,066) 2,453 (328) 175

receivables
Increase in amounts due from construction contract customers (1,761) (13,827) (142) (988)
Decrease in deposits, prepayments and other receivables 297 3,073 24 219
(Increase)/decrease in tax (175) 257 (14) 18

recoverable
(Decrease)/increase in amounts (4,233) 2,550 (342) 182

due to construction contract customers
Increase/(decrease) in trade 3,885 (12,181) 314 (870)
and other payables 3,312 1,611 267 115

Increase in tax payable

Net cash generated from/(used 5,185 (6,820) 426 (548)

in) operations
Income tax paid -* (10)* -* (1)
Net cash generated from/(used 5,185 (6,830) 426 (549)

in) operating activities Consolidated Cash Flow Statement (Unaudited) (Continued) For the six months ended 30 September 2009
For the six months ended 30 September

HK$000 HK$000 £'000 £'000

Purchase of plant and (1) (494) - (35)

equipment
Proceeds from disposal of 10 - 1 -

plant and equipment
Interest received 2 61 - 4
Decrease/(increase) in pledged 4,324* (4,045)* 349 (289)

bank deposits
Net cash generated from/(used 4,335 (4,478) 350 (320)

in) investing activities

Interest paid (337) (603) (31) (40)
(Repayment of)/proceeds from (2,731) 10,879 (220) 777

interest-bearing borrowings
Capital element of finance (24) (24) (2) (2)

lease rentals paid
Interest element of finance (5) (5) (1) (1)

lease rentals paid
Net cash (used in)/generated from financing activities (3,097) 10,247 (254) 734
NET INCREASE/(DECREASE) IN 6,423 (1,061) 522 (135)

CASH AND CASH EQUIVALENTS AT BEGINNING OF (1,128) 6,802 (102) 438

CASH AND CASH EQUIVALENTS AT 5,601 6,274 452 448

GBP Rate :14.51
Notes to the Interim financial statements for the six months ended 30 September 2009
1. Basis of preparation

The unaudited interim financial statements for the six months ended 30 September 2009 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 2009. The interim financial statements, together with the comparative information contained in this report for the six months ended 30 September 2008, does not constitute the statutory accounts of the Company.

2. Earnings per share

The calculation of basic earnings per ordinary share is based on the profit attributable to equity holders of the Group for the six months ended 30 September 2009 of HK$2.8m (H1 2008: HK$3.8m), and the weighted average of 383,677,323 (H1 2008: 383,677,323) ordinary shares in issue during the period.

There were no potential dilutive instruments at either financial period end.

3. Post balance sheet event

During the month of November 2009 the Group's wholly owned subsidiary, Leader Smart Engineering (Shanghai) Limited ("Leader Smart") entered into a sale and re-purchase agreement as the guarantor between Zhongshan Fu Li Wa Property Development Limited (the "Property Developer") and Zhongshan Jun Yue Property Development Limited (the "Re-Purchaser"), (the "Agreement"). The Agreement is for the Re-Purchaser to acquire five construction contracts for the ownership of certain parts of the premises within the Zhongshan Project, for a total consideration of RMB 40 million (GBP 3.6 million). The Board of UniVision expects that these funds will allow the Property Developer to bring the Zhongshan Project to completion in an expected timeframe of four months.

Leader Smart has been the main contractor responsible for interior design and installation for the Zhongshan Project. It is carrying out construction contracts on the Zhongshan Project worth GBP 11.4 million. The Board of Univision expect these contracts will be settled either in cash from the proceeds of the sale of the shopping mall once completed or through the provision of interest on property rights from the Property Developer on completion of the Zhongshan Project.

The Re-Purchaser is a third party finance provider and is purchasing the construction contracts for the ownership of certain portions of the premises within the Zhongshan Project. The Agreement is repayable 5 months from the delivery of the contracts. The first contract, signed on 30 November 2009, is valued at RMB 29.5 million (GBP 2.6 million).

4. Interim report

Copies of the interim report will be available for inspection at the registered office of the Company, 8/F Lever Tech Centre, 69-71 King Yip Street, Kwan Tong, Hong Kong and available on the Company's website (www.uvel.com).

This information is provided by RNS The company news service from the London Stock Exchange

IR BXLFLKLBEFBQ

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

UniVision Engineering Limited +852 2389 3256 Stephen Koo, Chairman Chun Hung Wong, CEO

Allenby Capital Limited
Imran Ahmad/Nick Athanas +44 (0) 203 328 5656

This information is provided by RNS The company news service from the London Stock Exchange

MSCGGMMZGGVGLZM