OTC Bulletin Board

S & P Company Insight for TITANIUM GROUP LTD
 
 Profile

 
Business Summary: Titanium Group Limited and its subsidiaries focus on the development of biometric technology, and installation and implementation of facial based biometric identification and security projects for law enforcement, mass transportation, and other government and private sector customers.
 
Address
  15/F, Kennedy Town Commercial Tower
  23 Belchers Street, Kennedy Town
  Hong Kong   Phone: 852-3427-3177
  Website: http://www.titanium-tech.com
Auditor
  Zhong Yi (Hong Kong) C.P.A. Co. Ltd.
  Hong Kong   China
Transfer Agent
  Computershare Trust Co., Inc.
Employees:  45
ShareHolders:  38
Founded:  2001
 
  
 
 Background

 
Titanium Group Limited and its subsidiaries focus on the development of biometric technology, and installation and implementation of facial based biometric identification and security projects for law enforcement, mass transportation, and other government and private sector customers. Its products include ProAccess FaceOK, which enables the users to sign-on to their computers through face recognition; ProAccess FaceGuard, a biometric physical access control system for physical access controls to areas, such as office premises, data centers, and server rooms; and ProAccess FaceAttend, which is face recognition- based time attendance recorder. The company also offers ProFacer iDVR, a digital video recorder with face image detection and capture for use at airports, banks, casinos, public buildings, subways, factories, and schools; ProFacer iWatchGuard that adds automatic full time face recognition, matching, and active warning alerts to any new or existing surveillance system; ProFacer iMugShot, a surveillance solution for law enforcement units; and ProFacer iDControl that utilizes facial recognition technology in the airline industry for national security. In addition, it provides professional and technical support services, including the design, development, and integration services of biometric identification and security solutions to customers using the products, as well as information security consulting, remote monitoring system consulting, security integration/development consulting, and security audit consulting services. Further, the company distributes various third party software products. Titanium Group markets its products through distributors in Hong Kong, the People's Republic of China, Macau, Japan, Europe, and the United States. The company was founded in 2001 and is based in Hong Kong.
History:  INCORPORATED in British Virgin Islands May 17, 2004; and on June 22, 2005, acquired all of the issued share capital of Titanium Technology Ltd. (incorporated in Hong Kong Feb. 14, 2001). The company issued 47,000,000 shares in the acquisition.
 
Subsidiaries:
Titanium Technology (Shenzhen) Co., Ltd.
Titanium Technology Ltd.
 
Backlog
YearCurrencyAmount
2006b1Hong Kong Dollars14,820(thousand)
2005b2Hong Kong Dollars7,800(thousand)
2004b3Hong Kong Dollars2,500(thousand)
 
Capital Expenditures, thousand. Hong Kong Dollars
  Year  Amount
  2006  2,875
  2005  784
  2004  122
 
Research and Development Expenditures, thousand. Hong Kong Dollars
  Year  Amount
  2006  750
  2005  190
  2004  0
 
b1Reported as of Mar. 31.
b2Reported as of Dec. 31.
b3Reported as of Dec. 31.
  
 
 Management

 

Management
OfficersPosition
 Kit Chong  NgChairman & Chief Financial Officer
 Wai Hung  TangActing Chief Executive Officer

Directors
 Kit Chong  Ng
 Wai Hung  Tang
 Siu Shan  Wong
 
  
 
 Annual Report

 
Annual Report
 
Income Statement
  2007200720062005
REVENUEUS$HK$HK$
Projects
Products$1,443,607$11,260,136$15,074,036
Services634,2044,946,7904,303,315
*2,077,81116,206,92619,377,351
Maintenance
Services65,248508,937288,620
Total revenue2,143,05916,715,86319,665,971
COST OF REVENUE
Projects
Cost of products sold890,7566,947,89410,145,559
Cost of services458,8603,579,1102,387,795
*1,349,61610,527,00412,533,354
Maintenance
Cost of services7,05155,00067,378
Total cost of sales1,356,66710,582,00412,600,732
GROSS PROFIT786,3926,133,8597,065,239
OPERATING EXPENSES:
Selling, general and administrative1,391,92610,857,0217,962,186
Research and development--750,000
Stock-based compensation118,939927,7242,188,409
Total operating expenses1,510,86511,784,74510,900,595
(LOSS) INCOME FROM OPERATIONS(724,473)(5,650,886)(3,835,356)
OTHER INCOME (EXPENSE):
Government grant income3,08524,066-
Other income---
Interest income7,20256,17922,537
Interest expense(91,952)(717,223)(77,000)
Amortization cost on discount of convertible debenture(47,300)(368,940)-
Total other (expense) income(128,965)(1,005,918)(54,463)
See accompanying notes to consolidated financial statements.
*US$HK$HK$
(LOSS) INCOME BEFORE INCOME TAXES AND MINORITY INTEREST $(853,438)$(6,656,804)$(3,889,819)
Income tax benefit (expense)47,501370,507493,666
(LOSS) INCOME BEFORE MINORITY INTEREST(805,937)(6,286,297)(3,396,153)
Minority interest(3,408)(26,583)67,159
NET (LOSS) INCOME $(809,345)$(6,312,880)$(3,328,994)
Net (loss) income per share
Basic and diluted(0.02)(0.13)(0.07)
Weighted average number of shares outstanding
Basic and diluted50,053,65250,053,65250,000,000
NET (LOSS) INCOME(809,345)(6,312,880)(3,328,994)
Other comprehensive (loss) income:
- Foreign currency translation (loss) gain(892)(6,960)10,130
COMPREHENSIVE (LOSS) INCOME $(810,237)$(6,319,840)$(3,318,864)
Operating Income As Calculated
Depr. and Amort.
Fixed Charges Coverage:
Available for Fixed Charges
Gross Fixed Charges
Fixed Charges Times Earnings
Fixed Charges Coverages and Preferred Dividends Times Earnings
Capital Expenditures
Research & Development Expenditures
 
Balance Sheet
  200720072006
ASSETSUS$HK$HK$
Current assets:
Cash and cash equivalents$149,786$1,168,331$1,164,528
Restricted cash51,282400,000-
Accounts receivable, net1,501,51611,711,8284,728,648
Inventories190,3801,484,96271,156
Deposits and other receivables50,277392,159342,347
Deferred tax assets87,633683,534300,401
Income tax recoverable--118,442
Total current assets2,030,87415,840,8146,725,522
Plant and equipment
Cost976,5677,617,2193,941,296
Less: accumulated depreciation(282,493)(2,203,449)(996,232)
*694,0745,413,7702,945,064
Intangible assets, net476,6923,718,1942,642,055
TOTAL ASSETS$3,201,640$24,972,778$12,312,641
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank overdraft$154,949$1,208,606$1,712,024
Short-term bank loan3,37826,347-
Accounts payable and accrued liabilities1,210,0509,438,3883,302,651
Deferred revenue9,85576,867291,084
Income tax payable1,61912,626-
Total current liabilities1,379,85110,762,8345,305,759
Long-term liabilities:
Debenture payable1,306,88210,193,679-
Warrants liability190,4181,485,261-
Total long-term liabilities1,497,30011,678,940-
Total liabilities2,877,15122,441,7745,305,759
Minority interest in net loss of consolidated subsidiaries9,69075,583(67,159)
Stockholders' equity:
Common stock, US$0.01 (HK$0.078) par value, 100,000,000 shares authorized,
50,912,677 and 50,000,000 shares issued and outstanding509,1273,971,1893,900,000
Additional paid-in capital808,3646,305,2374,675,206
Accumulated deficit(1,002,524)(7,819,691)(1,506,811)
Accumulated other comprehensive (loss) income(168)(1,314)5,646
Total stockholders' equity314,7992,455,4217,074,041
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$3,201,640$24,972,778$12,312,641
Net Working Capital
Equity per Share
Depr. and Amort. Reserve
Preferred Shares Issued
Common Shares Issued
Treasury Shares - Preferred
Treasury Shares - Common
 
  
 
 Interim Report

 
Interim Report   
 
Data Not Available
 
 
 
 
  
 
 Pro Forma Report

 
Pro Forma Report   
 
Data Not Available
 
 
 
 
  
 
 Quarterly Report

 
Quarterly Report Information   
 
Quarterly Revenue, US$
YearQuarterRevenue
  2008   1500,000
  2008   2360,000
  2008   3360,000
  2007   3430,000
  2007   41,000,000
  2007   Full Year 2,140,000
  2006   Full Year 2,520,000
  2005   Full Year 13,300,000
 
 
Quarterly Net Income, US$
YearQuarterRevenue
  2008   1(200,000)
  2008   2(170,000)
  2008   310,000
  2007   3(290,000)
  2007   4(130,000)
  2007   Full Year (810,000)
  2006   Full Year (3,329,000)
  2005   Full Year 795,000
  2004   Full Year 260,000
  2003   Full Year 10,000
 
 
Quarterly EPS, US$
YearQuarterRevenue
  2008   1Nil
  2008   2Nil
  2008   3Nil
  2007   3(.01)
  2007   4Nil
  2007   Full Year (.02)
  2006   Full Year (.01)
  2005   Full Year .02
 
  
 
 Stock Data

 
 
Capitalization as of 09/30/2008:
 
 Authorized SharesOutstanding Shares
Common $0.01 par100,000,00051,644,399
 
LONG TERM DEBT: Hong Kong Dollar 11,197,766.
 
Common $0.01 par
 
Stockholders:  02/28/2008, 38.
PRINCIPAL STOCKHOLDERS: February 29, 2008, Golden Mass Technologies Ltd. (controlled by Johnny Ng) owned 73.7% of the Common.
 
Transfer Agent:  Computershare Trust Co., Inc.   Golden , CO
 
OTC Bulletin Board( Primary): TTNUF
 
ExchangeYearHighLow
OTC Bulletin Board20080.09000.0100
OTC Bulletin Board20070.50000.0800
OTC Bulletin Board20060.75000.3600
 
DIVIDENDS: Common $0.01 par: None.